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The government is examining whether e-commerce platforms are properly reflecting the revised GST rates in their pricing of everyday items. Consumer complaints have highlighted that many products have not seen price reductions consistent with the new tax slabs. Some platforms have been informally cautioned by officials, while explanations citing technical issues have also been received. The GST system now has two slabs, 5 per cent and 18 per cent, replacing four earlier rates. Authorities have directed GST field officers to provide monthly brand-wise reports on the prices of 54 commonly used items, including FMCG goods and household essentials.
The government has increased oversight of e-commerce platforms to ensure that reductions in Goods and Services Tax (GST) rates are reflected in the prices of daily-use goods. Items under watch range from shampoo and toothpaste to pulses and packaged foods. The move follows concerns that benefits from the GST rate changes may not be reaching consumers as intended. Advertisement
Officials have received complaints pointing to limited or inconsistent price cuts for essential goods on certain online platforms. In some cases, e-commerce operators have been informally cautioned. When questioned, some platforms attributed discrepancies between pre- and post-GST prices to technical problems in updating their systems. Authorities have stressed that pricing will continue to be closely monitored.
The new GST structure, effective from the third week of September, has consolidated the earlier slabs of 5 per cent, 12 per cent, 18 per cent, and 28 per cent into just two rates of 5 per cent and 18 per cent. The change is expected to reduce the cost of nearly 99 per cent of items used daily, making it one of the most extensive rate simplifications since GST was introduced in 2017.
While the formal anti-profiteering framework has not been opened to new complaints, monitoring is active. Several companies have publicly stated that they are already cutting prices in line with the lower tax rates, though authorities are verifying if these reductions are being applied consistently across platforms.
The Finance Ministry had earlier instructed Central GST field officers to prepare monthly reports on the movement of prices. Officers are required to track 54 categories of commonly used goods and compare Maximum Retail Prices (MRP) before and after the tax cuts. These categories include a wide range of products such as butter, tomato ketchup, jams, ice cream, shampoo, toothpaste, air conditioners, televisions, cement, crayons, erasers, and medical supplies like diagnostic kits, glucometers, thermometers, and bandages.
According to officials, some sectors have already shown price adjustments. However, in cases where retailers hold older inventory purchased before the rate change, the reduction may not appear immediately. Smaller or unregistered retailers have also indicated that price revisions take time due to cost pressures. Larger businesses, on the other hand, have generally been quicker to adopt new pricing. The festive season ahead is expected to be an important test of whether consumers feel the benefit of the revised structure.
The Central Board of Indirect Taxes and Customs (CBIC) is set to receive the first set of brand-wise reports from field officers. These inputs will help the government assess whether further action or corrective measures are needed. For now, authorities are relying on regular monitoring rather than sudden interventions to allow companies time to adjust while ensuring consumer benefits are not withheld.
Source PTI
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