On September 29, the government raised serious concerns that many companies, including some of the country’s biggest e-commerce platforms, have not passed on the benefits of recent Goods and Services Tax (GST) rate cuts to consumers. Consumer Affairs Secretary Nidhi Khare revealed that the department has already received more than 3,000 complaints from consumers who noticed no reduction in prices even after the GST rates were lowered. She stressed that the government is determined to ensure that consumers get the full benefit of the tax reductions announced earlier in the month.
Khare explained that the Department of Consumer Affairs is constantly monitoring price levels across a wide range of goods and services. She pointed out that the reforms in GST were introduced to lower costs for the end consumer, and the government is unwilling to let businesses dilute that benefit by keeping prices unchanged. “We are constantly monitoring the price levels, as we wish to ensure the price cut benefits are passed on to the consumers,” she said.
Big E-commerce Players Under Scrutiny
The spotlight has particularly fallen on large e-commerce players. According to sources cited by Moneycontrol, the government has formally sought responses from some of the biggest platforms operating in India. These companies have been accused of raising the prices of certain items even after the GST rate cuts came into effect from September 22.
In one striking example, an e-commerce major was found to have advertised higher prices for its products after the tax cut. When questioned, the company cited a “technical glitch” as the reason behind the inflated prices. The company eventually corrected the prices, but the incident has reinforced the government’s suspicion that not all platforms are making the transition smoothly or transparently. Officials argue that whether it is a technical error or a deliberate oversight, consumers should not be made to suffer.
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The New GST Regime and Its Objectives
The issue has assumed significance because the new GST system introduced from September 22 represents the biggest overhaul of India’s indirect tax structure to date. The earlier multi-tiered GST structure has been replaced by a simplified framework that now has just two principal slabs: 5 percent and 18 percent.
The objective behind the new system is threefold: to reduce the overall tax burden on consumers, to make compliance easier for businesses, and to create a more transparent pricing environment. By lowering rates on many items and streamlining the structure, the government had promised that consumer prices would come down in several categories.
The reform has been described as consumer-friendly, and naturally, there are heightened expectations that businesses will revise their pricing structures accordingly. The government believes that by not passing on these benefits, companies undermine the entire purpose of the tax reform and reduce its impact on household budgets.
Monitoring of Over 50 Products Across India
In order to ensure that GST benefits are reaching consumers, the government has initiated a broad-based review of prices. Officials had already stated on September 26 that more than 50 products were under close examination. Monitoring is being carried out by field formations across the country, which are gathering real-time data on price changes in various categories.
Inputs on these products are expected to be compiled and submitted by the end of the month. This will provide the government with a clearer picture of compliance levels and help identify specific companies or sectors where corrective measures are needed. Officials have underlined that this is not a one-time exercise but an ongoing process to ensure that businesses are acting responsibly.
Government Response to Price Irregularities
The Department of Consumer Affairs has taken a firm stance on the issue. It has reminded businesses that passing on the benefits of tax reductions is not optional but mandatory. Companies that fail to comply risk drawing regulatory action. Officials have emphasized that strict follow-ups will continue in the weeks ahead, and any discrepancies in pricing will be flagged immediately.
Both e-commerce players and offline retailers have been reminded of their obligations. The government has also conveyed that consumer welfare is at the heart of the GST reform, and any attempt to deny benefits to end users will be treated seriously.
Concerns Over Technical Glitches and Delayed Action
The government has acknowledged that some companies have cited technical glitches as the reason for incorrect pricing. While in a few cases prices were subsequently corrected, officials are not satisfied with these explanations. The view within the department is that during such a significant tax reform rollout, companies should have prepared robust systems to adjust their prices immediately in line with the revised GST rates.
Officials have warned that repeated lapses, even if attributed to technical issues, will not be tolerated. They argue that such lapses create confusion, inconvenience consumers, and undermine the government’s efforts to make goods more affordable.
Timeline of Developments in September
The sequence of events in September highlights how quickly the issue has escalated. The new GST rates came into force on September 22, replacing the older multi-layered structure. Within days, by September 26, reports had already emerged that the government was scrutinizing the prices of more than 50 products to verify whether companies were passing on the benefits.
By September 29, consumer affairs secretary Nidhi Khare formally confirmed that more than 3,000 complaints had been lodged by consumers. These complaints cover a wide range of products and platforms, making it clear that the problem is not isolated. Khare’s statement underscored the seriousness of the situation and the government’s resolve to take corrective action.
Conclusion
The government’s message has been unambiguous: businesses must promptly update their pricing structures to reflect the reduced GST rates. The reform intended to provide direct relief to consumers, and that objective cannot be compromised. With over 3,000 complaints already registered and the prices of more than 50 products under active review, officials are leaving no stone unturned to ensure accountability.
Nidhi Khare has reiterated that monitoring will continue until the government is fully satisfied that the benefits of the GST cuts are reaching the intended recipients—the consumers. The actions taken so far, including pulling up large e-commerce players and demanding explanations, signal the seriousness of the government’s approach.
For consumers, the developments serve as a reminder that the government is committed to ensuring that reforms translate into tangible benefits. For companies, the message is equally clear: transparency, compliance, and timely action are not just expected but required. The coming weeks will reveal how businesses respond to the government’s scrutiny, but for now, the emphasis remains firmly on protecting consumer interests and reinforcing the credibility of one of India’s most significant tax reforms.
