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The government is actively monitoring whether the recent GST rate cuts for FMCG products are reflected in e-commerce pricing. Field authorities have been asked to track price changes on essential items following consumer complaints. The GST simplification has reduced rates to 5 and 18 per cent, potentially lowering costs for most daily-use goods. Companies have confirmed that some are passing on the tax benefits. Authorities are awaiting detailed reports on 54 commonly purchased products, including food items, personal care products, electronics, diagnostic kits, and construction materials.
The Central Government is keeping a close watch on whether the recent Goods and Services Tax (GST) rate reduction for fast-moving consumer goods (FMCG) is being reflected in the prices on e-commerce platforms, government sources revealed earlier this week. Following complaints that price cuts on essential daily items were not being adequately passed on to consumers, field authorities have been tasked with monitoring changes across online marketplaces. Advertisement
A government source mentioned that authorities are tracking price adjustments and that the first report from field formations is expected soon. Officials emphasized that they do not want to react hastily to isolated complaints.
From September 22, GST rates have been simplified into a two-tier structure of 5 per cent and 18 per cent, replacing the previous 5, 12, 18, and 28 per cent slabs. This revision is expected to lower prices for nearly all daily-use products. While the anti-profiteering mechanism has not been activated specifically for these complaints, the government has been observing pricing patterns. Several companies have voluntarily confirmed that they are passing on the tax benefits by reducing product prices.
Earlier, the Finance Ministry had directed Central GST field officers to provide monthly reports on the price movements of 54 commonly used items. This list includes products such as butter, shampoo, toothpaste, tomato ketchup, jams, ice cream, air conditioners, televisions, diagnostic kits, glucometers, bandages, thermometers, erasers, crayons, and cement. Comparative brand-wise MRP details are to be submitted to the Central Board of Indirect Taxes and Customs (CBIC) shortly.
Source PTI
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