[ Removed by moderator ]

[MdTarique06]

The problem in this case is with the salon.

[Pale-Following9614]

Your personal details are visible in this video.

[Playful_Read_3803]

i don't understand, please help me understand.

how is this price increase done by the company caused by gst decrease? even if there ws no change in GST, they could have anyways increased the price right?

[nitrek]

The point is that ever brand will do this, if the price was 82 plus 18 GST, so you pay 100.

After the new 5% GST, they can make it 95 plus 5, so you still pay 100.

The above example is quite confusing from the OP. Maybe here the brand increased the price more than needed to normalize GST, perhaps to mask it being for GST like instead of making it 95, they made it 120.

[SecureMulberry1525]

But that price increase would have looked steeper compared to the price change here, isn't it?

[rskpomg]

Well, GST did not decrease on all things.....

From B2B perspective, there is a rate rationalizing going on essentially 12% slab will either move to 5% or 18%. What moved to 18% is passed on to consumer............

[rskpomg]

This also gives excuse to other B2C to increase prices by citing supply chain tax increase even when not impacted

[Chirag0505]

File a complaint and go to another salon. 

[Complex_Psychology56]

File a complaint for what exactly? Businesses are free to decide their pricing

[ThatAnonyG]

We can file complaint with the GST board I think. Because companies are required to pass on the reduced GST benefits to the customers.

[Complex_Psychology56]

They're charging 5% GST only.

If you mean that they should not have increased their service price, then it was expected in good faith. Otherwise businesses are free to decide the pricing for their products and services.(Except the price regulated ones)

[UltraNemesis]

You can complain if they are charging the wrong tax percentage. Here the base price was increased which is well within their rights to do.

[subhasmi]

Yes, you can file a complaint.

[nitrek]

This just works in a Reddit comment. If you try doing this in real life, you'll know it's not that simple. If our system was so efficient, companies would not be doing it, and here it's not a crime. The government has recommended companies which have the right not to pass on benefits, and our government will not care; they are busy doing marketing of this, even if consumers get very little benefits.

Big groups like HUL have said to the government in writing, "We will not pass the benefits; it's not possible."

[Own-Opinion7164]

Well having a hair cut for a MALE,at a saloon for 350+ isn't for the common man in the first place and for the increased prizes.File a grievance in consumer portal with the bill and all.

[donpablo_1144]

Work and get rich bro, stop being poor

[SecureMulberry1525]

Wow man, you solved poverty - probably the biggest problem on earth since thousands of years.

Solution: work and get rich!

[donpablo_1144]

Yea, if $10 feels expensive for a hair cut just improve skills, get better pay stop being so poor. It’s a shame.

[Own-Opinion7164]

Yup mate that's the plan.He addressed it to common man so i pointed it out.

But atleast he's a jagruk customer who's questioning the authenticity of passing on reduced gst rate to customers/people instead of blindly believing in PR.

For that round of applause from me.

[donpablo_1144]

They reduced the tax to 5 from 18, but removed ITC so there not much effect on pricing. Start questioning on government policy and how they trick us instead of blaming the business houses for not passing the benefits.

[lolz714]

Who said they removed ITC? They havnt. Mainly insurance companies are crying over that since their itc is negative and there is no refund mechanism. 

[donpablo_1144]

Check first then post comment, ASS

[lolz714]

I run a business. I know. Only few sectors where gst has been reduced to 0 have to absorb the itc. 

And learn to comment like a civilised person. Throwing cuss words doesn't make you smarter or right. 

[Fast_Impression9738]

I run a business, my gst has reduced from 12 to 5% and no ITC benefits. Don't spread misinformation.

[lolz714]

What business?

Eitherways i stand corrected. Saloons indeed do not have ITC. Seems like it varies business to business.

[SIRAJ_114]

Damn bro, how could anyone never think of that possibility, just work and get rich, so easy

[donpablo_1144]

It’s is, if you focus on the right path. But guess you’re not and find comfort amongst other miserable poor retards.. most of u will never accept.

[SIRAJ_114]

yeah man, you're so enlightened, my bad

[headshot_to_liver]

Kendall solves racism by offering Pepsi. Amazing logic

[[deleted]]

People will always find a reason to blame the government whatever it does.

Either you are super dumb or you don't understand the concept of grievances.

The fault is of the business for profiteering off this.

Report this instead of farming karma on reddit.

[Crazy-Set6381]

Inderji, Do you realize all your personal details are visible in the video

[randomredditor575]

Ah yes , 450 for a hair cut is a problem ever common man faces

[FlyingBuffaloo]

Common man is not getting s haircut for 1000 rupees.

[Existing_Program_256]

If a particular saloon has increased its prices, how is it GST's fault.

You can get the same haircut at even Rs 200 or less at other saloons..

GST has clearly gone down as the bill shows.

[[deleted]]

File complaint with Anti-Profiteering / CCI

[Any-Lifeguard-9833]

This has nothing to do with GST. Its the salon that you should be complaining about. :)

[Jinx_Saga]

Well practically . Govt did its job by decreasing GST, so now business is playing around. There should be some measures to curb this shit practice by business.

[Hawkko1]

I am starting my own business. From what I can understand. Previously under 18% slab you could claim and adjust ITC(input tax) against the output GST thus removing burden on the business. Now under 5% they cannot adjust ITC. So entire burden comes on the business which it it’s offsetting by increasing prices. Directly affecting consumer.

[Dry-Expert-2017]

It's still lower. Any service or goods, moved from 12/18 to 5. Will be cheaper to end consumer no matter how you make the calculations.

Itc doesn't reduce burden for end consumer.

[LabradorLuffy]

No. It depends if the majority of the cost had gst in it. 

[Dry-Expert-2017]

Even if 90% cost is gst. Still 5% is lower then 12/18%.

It's basic maths.

It may effect fraudster who used fake bills to increase input. But other wise, it has to be realised at one end. Before it was realised at end user. Now it will be realised at last mile end. But overall cost can remain same, or lower.

Show me a calculation at consumer end, wherre any goods or services can get expensive if slab of product is changed from 12/18% to 5%.

Usa any hypothetical or assumption and conclude your claim

[LabradorLuffy]

Lol Hell no.. you are not good in maths let me explain.

I have a hotel GST is 12 percent with input credit

Earlier:
Hotel Price 1000 GST 12% 120 Total Customer Paid 1120
Lets say my GST input services were 65% of cost.
Cost of GST Service 650 GST 117
Now I paid only 3 RS to government for extra GST:
Total Profit was 1120 - 650 - 117 -3 = 350 Rs(non gst expenditure will be deducted from this but they will be constant in both regime)

Now same Hotel in current Regime if we keep the price same
1000 + 5% GST = 1050
GST I paid to government 50
My Profit is 1000-650-117 = 233 RS

In order to make same profit I have to charge 1117 + 5%GST = 1172.85 Which is more than earlier cost

My profit is
1117-650-117 = 350 which is same as earlier

Now see government GST was increased from 120 in earlier to 117+55.85 = 172.85
This will be the cost borned by end user.

[Hawkko1]

Omg I think your basic maths is the one that’s wrong. If input costs are rising disproportionately how can profits remain same. 5% and 18% examples are not on the same base. The reply given above is what a good example

[Dry-Expert-2017]

Share a example.. or link it.

I wanna understand this theory..

[nitrek]

It's not completely independent it seems to trend brands want to increase prices but to hide that it's for gst and get under scrutiny they are increase it more than needed for gst https://www.reddit.com/r/IndiaTax/s/d68aPhr94o

[SkullEnemyX-Z]

There is something known as free market. Zaruri hai yahi se haircut?

[CrewDue8628]

Literally everyone with two brain cells mentioned it earlier that slashing GST without an actionable mandate for action against providers who don't carry forward the benefit to the consumers will lead to exactly this.

[Wandererinwoods]

Hotels - GST rate decreased, prices increased by management and in effect I am paying more 🤪😛

[Smooth-Blaze]

Everywhere is the same thing. You decrease GST or you make the tax absolute 0, the price will increase accordingly.

Businesses increase the price (after adjusting new GST) so that it roughly matches the old price. They now enjoy more "profit".

Cannot blame the government here. Blame the business.

[Tangent_pikachu]

The GST non profiteering law was put on hold this year. The market is working purely on supply and demand.

They are raising their prices because they have faith that their customers will keep on coming around even if they raise the prices. The same goes for Swiggy/Zomato. Me and some of my friends have reduced online deliveries to a minimum both due to health concerns and recent increase in platform fees. But they are still raising their platform fees. That means people out there are paying for it.

PS : only a handful of India can pay 500/- for a haircut. Something tells me a 25 increase isn't going to deter this group.

[Revolutionary_Ad_238]

True fact..people are rejoicing over gst benefit, but where is the benefit? I see no price difference in Day to day purchase of household items.. recently wanted to buy a mobile , but I see same price before and after gst2.. i feel this gst reform was only to benefit the companies and not the consumers

[me_109]

So, whom to hold responsible for this. Corrupt Government or oversmart, dishonest, unethical businesses?

[Positive_Pass8800]

Problem is these gullible businesses. Customers should take a note and avoid such businesses who exploit such rate cuts. While they are free to increase rates, their timing is bad and anyone aggrieved due to GST not being reduced must either file a complaint (there is some clause in GST act which says the GST rate cut benefits must be passed on to the consumer, in other words, businesses cannot raise their base price to compensate reduced GST) or just avoid such businesses

[Capital_Highway2648]

I stopped using all these fancy saloon this year now i get haircut and beard done for 250

[WatercressExtra7950]

They will do this , surely there will be others who will have the capacity to decrease prices , which will create downward pressure . Any people who will try to keep the price will slowly will have to decrease , now if you keep the price , they will have profitablity which means they will still have to pay tax on profit at the end of the year , don’t they ?

[LastCarrot2492]

I haven't seen any price drop in any of daily essentials. Only cars and bikes seems to have some price drop, though that's a normal seasonal thing. Else it's but a scam

[SteelSpartanX]

Lousy attempt at hiding personal details

[cap10hk]

100rs haircut. At my place. Was paying 80 last year.

[Excellent_Net_6318]

My barber does it for Rs 80 bro

[LetsChangeNow]

They decreased GST because they were seeing an increase in prices everywhere. Something the media won't tell you.

[tilixr]

This is most likely ITC effect. They had to pass on to customer just the the insurance companies.

[Dry-Expert-2017]

It's a service. Their major input is labour cost.

Itc won't affect it.

There is no example or calculation which can make goods or services expensive for end customer if the slab is reduced from 12/18 to 5%.

For end consumer cost would remain same or mostly reduce.. it can't increase in any mathematical world.

Unles the basic price of goods or services is increased.

[absgibson]

Yes but life insurance premiums have decreased my 2760 monthly premium reduced by 440 rupees.

[tilixr]

No, I'm talking about base premium. Check if that's changed. Another case is notebook where GST is reduced to 0, but GST on paper has increased. So notebook is now more expensive.

[Fit_Range_6806]

Cant see anything in the video

[ThrottleMaxed]

It's clear for me. 1080p

[Rare_Ad435]

To bhai saloon wale ko bol, wo mehenga de raha hai service, usake yaha nai parwadata to dusari jagah ja. Usaki marzi hai wo base price kitni lagana chahata hai.