Govt Flags Price Hike After GST Cuts
The government is keeping a sharp eye on e-commerce platforms after receiving multiple complaints about price hikes on some everyday items—even though GST rates were cut.
Officials confirmed that queries have been sent to certain online platforms asking why prices of specific goods went up when the tax rate was actually lowered.
“Prices should not go up after a GST cut, at the very least,” a government official said.
Tracking Prices Before and After September 22
The new GST rate cuts kicked in on September 22, and since then, the government has been comparing item prices before and after that date.
Earlier this month, the Revenue Department had asked GST zones across the country to compile commodity-wise data on 54 product categories—covering everything from FMCG and medicines to cement and consumer goods. The reports are being submitted monthly to the Central Board of Indirect Taxes and Customs (CBIC).
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Consumer Complaints Pouring In
The National Consumer Helpline has already received around 3,000 complaints related to GST pricing. While most products have seen reductions, a few still reflect higher costs, partly due to unsold stock or transition issues faced by smaller retailers.
The government says it’s closely tracking these cases and wants to ensure customers actually benefit from tax reductions.
What About Anti-Profiteering Rules?
Here’s the twist: currently, there’s no active anti-profiteering law under GST. Back in 2017, the National Anti-Profiteering Authority (NAA) was set up to check unfair price practices. But after December 2022, all such cases were shifted to the Competition Commission of India (CCI).
Now, from October 1, 2024, the government has moved anti-profiteering cases to the GST Appellate Tribunal (GSTAT). The clause itself will expire on April 1, 2025.
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Bottom Line
So, while most items have become cheaper post-GST cuts, a few price hikes have caught the government’s attention. With thousands of consumer complaints already logged, the message is clear: brands and e-commerce players need to pass on tax benefits to customers—or face stricter scrutiny.
