Trap Purchases under GST Ver 2.0

GST Ver 2.0 has brought down the rate of taxes from 18% and 12% to 5% for most of the FMCG goods. It can be termed as an economic reform more than just a tax reform. What matters the most post reduction, is the level at which the benefits from the reduced taxes are actually passed on to the end user customer. Trap purchases are legislatively recognised in terms of Section 67(12) of the Act to enable a temporary transaction to understand if the benefits of a rate cuts have really been passed. J the App by JustIDT examines the contours of the Trap Purchases.