JP Accounts Solution

Happy new year to all of you have a great year ahead 🎉🎉❤️

GST 2.0 promised cheaper goods. But why do prices still feel the same?

Linking back to my previous post where I highlighted why GST benefits may not immediately reach customers.

𝐓𝐡𝐞 𝐑𝐞𝐚𝐥𝐢𝐭𝐲 𝐂𝐡𝐞𝐜𝐤:
Everyone assumed: Lower tax = Lower prices.
But businesses don't operate on Excel sheets.

𝐑𝐞𝐚𝐥 𝐄𝐱𝐚𝐦𝐩𝐥𝐞 𝐟𝐫𝐨𝐦 𝐭𝐡𝐞 𝐦𝐚𝐫𝐤𝐞𝐭:

Sunfeast Marie at DMart:
- Before GST 2.0: ₹119 (Base ₹100.85 + 18% GST)
- After GST 2.0: ₹115 (Base ₹109.53 + 5% GST)
- Expected price: ~₹105
- Actual price: ₹115

𝐖𝐡𝐚𝐭 𝐡𝐚𝐩𝐩𝐞𝐧𝐞𝐝 𝐭𝐨 𝐭𝐡𝐞 ₹10 𝐝𝐢𝐟𝐟𝐞𝐫𝐞𝐧𝐜𝐞?

Recent data backs this up:
- Only 1 in 10 consumers got full benefit on food & medicines
- 3 in 10 saw benefits on appliances
- 7 in 10 got full benefit on vehicles (where competition is fierce)

𝐖𝐡𝐲 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬𝐞𝐬 𝐩𝐨𝐜𝐤𝐞𝐭 𝐭𝐡𝐞 𝐝𝐢𝐟𝐟𝐞𝐫𝐞𝐧𝐜𝐞:

This isn't greed—it's economics. Companies price based on:
✓ What customers are willing to pay.
✓ Market competition levels.
✓ Demand elasticity.

𝐁𝐮𝐭 𝐡𝐞𝐫𝐞'𝐬 𝐭𝐡𝐞 𝐛𝐢𝐠𝐠𝐞𝐫 𝐩𝐢𝐜𝐭𝐮𝐫𝐞:

Short term: Yes, businesses capture some tax savings
Long term: This creates a powerful multiplier effect:
- More money stays in private economy.
- Higher production incentives.
- Increased competition over time.
- Eventually, lower prices through market forces.

𝐄𝐜𝐨𝐧𝐨𝐦𝐢𝐜 𝐞𝐯𝐢𝐝𝐞𝐧𝐜𝐞:
A 1% indirect tax reduction boosts consumption by 0.6% across sectors. GST cuts on durables already show 12% surge in e-commerce sales.

𝐓𝐡𝐞 𝐭𝐚𝐤𝐞𝐚𝐰𝐚𝐲:
Don't expect instant price drops when taxes fall. The real benefit shows up as stronger economic growth—and eventually, genuinely lower prices through competition.

𝐏.𝐒. 𝐇𝐚𝐯𝐞 𝐲𝐨𝐮 𝐧𝐨𝐭𝐢𝐜𝐞𝐝 𝐭𝐡𝐞 𝐩𝐫𝐢𝐜𝐞 𝐜𝐡𝐚𝐧𝐠𝐞𝐬 𝐢𝐧 𝐲𝐨𝐮𝐫 𝐫𝐞𝐠𝐮𝐥𝐚𝐫 𝐬𝐡𝐨𝐩𝐩𝐢𝐧𝐠?

From humble beginnings to 5 years of achievements – thank you for being part of our journey!

Let's celebrate the festival in the true sense by spreading joy and lighting up the world of others. Have a happy, safe and blessed Diwali!!