'Don't want knee-jerk reaction': Centre monitors e-commerce on GST rate cuts; consumers flag unreflected price changes

The Government is actively monitoring whether e-commerce platforms are passing on GST rate cut benefits on FMCG and daily essential items to consumers, officials said Tuesday.

Following complaints that some online platforms have not fully reflected the reduced GST rates in their pricing, authorities have instructed field formations to track price changes closely.



"We are monitoring the price changes. Field formations are monitoring, and we will get the first report from them by September 30," a PTI source said. "We do not want a knee-jerk reaction to such complaints,” it added.

Effective Monday, the GST structure was simplified from four slabs—5%, 12%, 18%, and 28%—to just two rates: 5% and 18%. This reform is expected to reduce prices for nearly 99% of daily use items, including FMCG products.

While the anti-profiteering mechanism has not yet been applied to these complaints, the government has been monitoring prices, and several companies have confirmed they are passing on the GST benefits by lowering prices.

Earlier on September 9, the finance ministry directed Central GST field officers to submit monthly reports on price changes for 54 commonly used items. The first report, detailing brand-wise MRPs, will be submitted to the Central Board of Indirect Taxes and Customs (CBIC) by September 30.

The list of items under scrutiny include butter, shampoo, toothpaste, tomato ketchup, jams, ice cream, air conditioners, TVs, diagnostic kits, glucometers, bandages, thermometers, erasers, crayons, and cement, among others.

With these measures, the Centre aims to ensure GST savings are passed to consumers and maintain transparency in online pricing for essential goods.