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The central government is closely tracking whether online retailers are passing on the benefits of the recent Goods and Services Tax (GST) rate cut to consumers, according to official sources. This comes amid concerns that some e-commerce platforms may not be reflecting commensurate price reductions on essential consumer goods.
Although the formal anti-profiteering mechanism has not been activated for this round of GST changes, sources say field officers across the country have been instructed to monitor retail prices. The first detailed report is expected by September 30.
"We're taking a measured approach. Field formations are monitoring pricing trends, and their findings will inform our next steps," a senior government official said, adding that a hasty response to complaints is being avoided for now.
The latest GST restructuring, effective from September 22, simplified the tax system by merging the previous 5%, 12%, 18%, and 28% slabs into just two rates — 5% and 18%. The change is expected to reduce the prices of around 99% of daily-use items, including food and personal care products.
To ensure compliance, the finance ministry has asked Central GST field offices to track the maximum retail price (MRP) of 54 commonly used items — such as butter, shampoo, toothpaste, ice cream, air conditioners, TVs, and medical supplies like thermometers and glucometers. The brand-wise pricing data is to be submitted to the Central Board of Indirect Taxes and Customs (CBIC) at the end of the month.
Despite the absence of a formal crackdown, many companies have proactively adjusted their pricing to reflect the reduced tax burden. Government sources note that several brands have voluntarily slashed prices in line with the new GST rates.
The government is expected to assess the data from field officers before deciding whether further regulatory intervention is needed.
(Source: PTI)
