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After having issued a directive to its field officers to monitor the price changes for 54 product categories under GST 2.0, the Centre is keeping a close watch on the benefits being passed on to the consumers as the sweeping tax rate cuts became effective from September 22, government sources said Tuesday. The government has also asked consumers to raise complaints on the National Consumer Helpline about the GST benefits not getting passed on to them.
While the consumers have raised complaints on social media about prices of several items, especially in the fast-moving consumer goods (FMCG) space, not reflecting the cut in GST rates on e-commerce platforms, the government does not want to give a “knee-jerk” reaction and will wait for the field officers to submit their report, they said. “We are monitoring the price changes. Field formations are monitoring, and we will get the first report from them by September 30. We do not want a knee-jerk reaction to such complaints,” the source said.
In a FAQ issued late Tuesday, the government said consumers can raise queries or complaints about not receiving benefits of GST rate changes on the National Consumer Helpline (NCH) via toll free number 1915 or Whatsapp at 8800001915. “Complaints/queries can also be registered on the Integrated Grievance Redressal Mechanism (INGRAM) portal,” it said.
Under the next-generation reforms for the Goods and Services Tax (GST), multiple slabs – 5 per cent, 12 per cent, 18 per cent and 28 per cent – were replaced with a broad two-slab structure – a merit rate of 5 per cent and a standard rate of 18 per cent – in addition to a special demerit rate of 40 per cent for sin and demerit goods such as pan masala, tobacco and cigarettes. This has resulted in significant tax rate cuts for several common-use items and aspirational goods such as white goods.
On September 9, the Revenue Department had sent a letter to principal chief commissioners and chief commissioners of central GST zones, first reported by The Indian Express, asking them to compile commodity-wise price data on 54 product categories pre- and post-September 22 including for fast-moving consumer goods, food and educational items, and drugs and medicines, as well as cement and white goods. The field offices have been asked to treat the price compilation exercise “on priority”, asking them to submit the price change reports to the Central Board of Indirect Taxes and Customs (CBIC) by the 20th of every month for the next six months. The first report has to be submitted by September 30.
Field officers have already started compiling the price data, an official said, adding that most items have seen a price reduction but some items are yet to see a commensurate reduction in prices because of the existing unsold stock. “Many retailers have started to offer price cuts but there are several retailers that have unsold stock from before September 22. And understandably, they will not offer discounts immediately on the stock procured by them before September 22 as they would not want to incur loss on such items by selling them at a discount to the consumers. So they will take some time to make the transition,” an official told The Indian Express.
At present, there is no legal anti-profiteering provision under GST. At the time of the rollout of the indirect tax regime in July 2017, an anti-profiteering provision was incorporated in the Central GST (CGST) Act through Section 171(2). A National Anti-profiteering Authority (NAA) was then set up in November 2017 to check unfair profiteering activities by registered suppliers and ensure that commensurate benefits of reduction in GST rates on goods and services and of the input tax credit are passed on to consumers by way of reduction in prices. Initially, it was set up for two years till 2019, but was later provided an extension. All GST anti-profiteering complaints were then dealt with by the Competition Commission of India (CCI) from December 1, 2022. In a notification dated October 1, 2024, the government then empowered the Principal bench of GSTAT (GST Appellate Tribunal) as the authority for anti-profiteering cases and notified April 1, 2025, as the sunset date for the anti-profiteering clause in the GST law.
After the 56th GST Council meeting, held on September 3, Revenue Secretary Arvind Shrivastava had said that only around 704 cases were registered with the NAA since inception of the anti-profiteering body that is no more in existence. “Sixty per cent of the cases were initiated within the first 3-4 years of the implementation and the total profiteering amount that was alleged was around Rs 4,362 crore in 704 cases. The industry has by and large passed on the benefits of rate cuts to the consumers. At that time too, the industry made public statements and committed and you would have seen and heard that a lot of industries have already come out and have committed that they will be transmitting these benefits too,” he had said.
Shrivastava had also said that administratively, both at the state level as well as the CBIC level, there will be engagement with the industry to ensure that the benefits to the consumer will be transmitted to the consumers. “And we do expect that since it is to the benefit of the businesses too, it is going to happen eventually,” he had said.
