More Stories

Informist, Tuesday, Sept. 30, 2025

 

--Sources: Govt comparing prices on e-comm platforms pre-, post-GST rate cut 
--Sources: Govt pulls up e-comm cos for price hike last week despite GST cut 
--Sources: Govt monitoring e-comm cos to ensure smooth passage of GST cuts

 

NEW DELHI – The government pulled up e-commerce companies for raising prices of some items in the last one week after the rationalised goods and services tax rates were rolled out, sources aware of the matter said. On Sept. 22, the government rolled out the two-slab consolidated GST structure of 5% and 18%, against the earlier four-slab structure with 5%, 12%, 18%, and 28% rates.

 

The government is maintaining a strong vigil on e-commerce companies to ensure that they pass on the benefits of the GST rate cut to the consumers, sources said. The government is also comparing the price of items on e-commerce platforms pre- and post-GST rate cuts, the sources added.  

 

The move comes after a host of complaints flooded the social media about companies, including e-commerce platforms selling fast-moving consumer goods, not passing on the benefit of reduced GST rates to end customers. The government has also sought direct complaints from consumers on the Integrated Grievance Redressal Mechanism portal, as well as through WhatsApp on 8800001915.

 

In the absence of anti-profiteering mechanism to file complaints relating to profiteering, the government has been monitoring the price changes and various companies have themselves come forward and said they are passing on the tax cut benefits by reducing prices.

 

The finance ministry, on Sept. 9, asked its field officers to compile monthly data reports on changes in prices of common-use articles for six months, with the first data report to be submitted to the ministry by September end. The letter, seen by Informist, asks the field offices to treat the exercise "on priority". The data has to include the name of the commodity, brand, and maximum retail price of 54 items before and after Sept. 22. The list of 54 items include butter, shampoo, toothpaste, tomato ketchup, jams, ice cream, air conditioner, televisions, all diagnostic kit, glucometer, bandages, thermometer, erasers, crayons, cement.

 

The first report by the field formations is due Tuesday.

 

According to sources, the government wants market forces to control prices so it will refrain from taking immediate action in the form of intervention, but will not rule out the possibility of stepping in to take action if needed.

 

The risks of profiteering are not new as there have been occasions in the past when cuts in tax rates announced by the GST Council have not been passed on to consumers. Instead, companies have increased their profit margins. In November 2017, after the council reduced GST rates on restaurants to 5% from 18% and 12%, anti-profiteering investigations were initiated against some restaurants for allegedly not passing on the benefit of reduced taxes to customers.

 

On Monday, Consumer Affairs Secretary Nidhi Khare said that the consumer affairs department has received over 3,000 complaints in a week from consumers about companies not passing on the benefits of the recent cuts in GST.  End

 

Reported by Priyasmita Dutta

Edited by Ashish Shirke

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.