New Delhi: The government is keeping a close watch on e-commerce platforms to ensure that the recent Goods and Services Tax (GST) rate cuts are being reflected in the prices of essential goods. Officials are tracking whether online sellers are reducing prices in line with the revised tax structure, particularly for fast-moving consumer goods (FMCG) such as shampoo, toothpaste, pulses, and packaged food items.
Effective September 22, the GST Council streamlined the tax structure into two slabs, 5 percent and 18 percent replacing the earlier four-tier system of 5, 12, 18, and 28 percent. The revision has lowered tax rates on nearly 99 percent of daily-use products. Authorities now want to ensure that this reduction translates into lower prices for consumers rather than being absorbed by companies or platforms.
According to officials, some e-commerce operators have already been informally cautioned for not reflecting commensurate price cuts on certain products. The government is not currently using the formal anti-profiteering mechanism to handle complaints but is relying on monitoring and voluntary compliance. Several companies have reportedly assured authorities that they are passing on the tax benefits by adjusting prices downward.
The finance ministry has also asked Central GST field officers to track the prices of 54 common consumer items, ranging from butter, jam, and ice cream to household appliances and healthcare products like diagnostic kits, thermometers, and bandages. Officers have been directed to submit monthly reports with brand-wise comparisons of Maximum Retail Prices (MRPs) to the Central Board of Indirect Taxes and Customs (CBIC).
This ongoing review reflects the government’s attempt to prevent profiteering in the retail sector and ensure that consumers directly benefit from tax policy changes. The outcome of the initial reports will likely determine whether more stringent measures are introduced to enforce compliance among e-commerce operators.
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