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The Finance Ministry has instructed Central GST field officers to keep track of price changes in 54 everyday items after new GST rates come into effect later this month. These include daily essentials and household goods such as butter, toothpaste, shampoo, tomato ketchup, ice cream, toys, cement, ACs, TVs, bandages, diagnostic kits, and crayons. Officers must prepare a brand-wise comparison of Maximum Retail Prices (MRPs) and send the first report to the Central Board of Indirect Taxes and Customs (CBIC) by the end of the month, with follow-up reports to be submitted monthly for six months.
The Finance Ministry has asked Central GST field officers to regularly monitor and report price changes in 54 commonly used items once the revised GST rates are implemented later this month. These items cover a wide range of daily essentials, packaged foods, personal care products, and household goods, including butter, shampoo, toothpaste, tomato ketchup, jams, ice cream, toys, erasers, crayons, cement, air conditioners, televisions, bandages, thermometers, diagnostic kits, and glucometers. Advertisement
In a letter sent to Principal Chief Commissioners of CGST zones, the ministry said that the first detailed report comparing Maximum Retail Prices (MRPs) before and after the revised rates should be prepared brand-wise. This report is to be submitted to the Central Board of Indirect Taxes and Customs (CBIC) by the end of the month. For the following six months, officers will need to file monthly reports with CBIC by the 20th of every month, showing changes in MRPs after the rate reduction.
This instruction follows the decision taken by the GST Council in its recent meeting, where the Council agreed to reduce GST rates on 375 items. At the same time, the Council also decided to simplify the tax structure by moving from four tax slabs of 5 %, 12 %, 18 %, and 28 % to only two main slabs of 5 % and 18 %. The revised structure and new rates will take effect from September 22.
According to officials, while most items will now fall under the lower two-slab structure, some goods classified as luxury or "sin" products may continue to attract higher rates. The finance ministry's focus on these 54 selected items is aimed at ensuring that the tax reduction directly translates into lower prices for consumers and that businesses pass on the benefit instead of retaining higher margins.
Source PTI
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