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Key Points

The government is actively questioning major e-commerce companies about why product prices increased despite recent GST reductions. Consumer Affairs Secretary Nidhi Khare revealed they've received approximately 3,000 complaints about companies failing to pass on GST benefits to consumers. Officials are monitoring over 50 products nationwide to ensure compliance with the new tax structure. The government hopes the impact of GST cuts will become more apparent during the ongoing festival shopping season.

Key Points: Government Questions E-commerce Firms Over GST Cut Price Hikes

  • Government monitoring prices of over 50 products across the country for compliance
  • E-commerce platform blamed technical glitch for advertised price increases
  • New GST regime simplified tax structure into 5% and 18% slabs
  • Officials expect GST benefits to become visible during festival season purchases
  • Consumer Affairs Department forwarding complaints to CBIC for further action
  • Government aims to avoid creating "inspector raj" while ensuring compliance
2 min read

Govt asks e-commerce firms why prices went up despite GST cuts

Consumer Affairs Ministry investigates why prices increased despite GST reductions, with 3,000 complaints filed about companies not passing tax benefits to buyers.

"Everyday, we are receiving complaints. So far, we have received close to 3,000 consumer complaints. - Nidhi Khare, Consumer Affairs Secretary"

New Delhi, Sep 30

The government has asked some major e-commerce companies to explain why prices of certain products were raised even after the recent cuts in the goods and services tax (GST).

The new GST regime, which came into effect on September 22, simplified the previous multi-tier structure into two main slabs of 5 per cent and 18 per cent.

The overhaul aims to reduce the tax burden and bring down prices for consumers.

According to reports, one e-commerce platform had advertised higher prices following the GST rate cuts, citing a technical glitch.

The company later corrected the prices. Officials said the government is reviewing the prices of over 50 products, with field teams across the country monitoring compliance.

Consumer Affairs Secretary Nidhi Khare recently said the department received more than 3,000 complaints about companies not passing on the GST benefits to buyers.

While speaking at an event, Khare mentioned that complaints are coming in every day, and the ministry is forwarding them to the Central Board of Indirect Taxes and Customs (CBIC) for further action.

"Everyday, we are receiving complaints. So far, we have received close to 3,000 consumer complaints. We are sending them to the CBIC (Central Board of Indirect Taxes and Customs) for further action," she told reporters.

“The focus is on misleading advertisements, unfair trade practices and cases where the benefits of GST cuts are not being reflected in final prices paid by consumers,” she added.

Sanjeev Sanyal, member of the Economic Advisory Council to the Prime Minister, earlier stated that the government expects industry players to reflect GST cuts in retail prices but does not want to create an "inspector raj" to enforce it.

The government expects the impact of the rate cuts to become more visible during the ongoing festival season, when consumer purchases are typically at their peak.

- IANS

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Reader Comments

R
Rohit P
"Technical glitch" my foot! They're always ready with excuses. Good that the government is monitoring this closely. Hope they take strict action against companies that cheat customers. 🙏
A
Aditya G
While I appreciate the government's efforts, I'm concerned about creating another "inspector raj." Market competition should ideally take care of this. But yes, some regulation is needed to protect consumers.
S
Sarah B
As someone who shops online regularly, I've seen this pattern too often. Companies quickly increase prices during sales and now with GST cuts. The consumer complaints portal is a good initiative! 👍
K
Karthik V
During festival season, every rupee saved matters for middle-class families. These e-commerce giants should be more responsible. The government should impose heavy penalties on those not passing GST benefits.
M
Michael C
I think we should also consider that companies might have legitimate reasons like increased input costs or logistics expenses. Not everything is about profiteering. The government should investigate properly before taking action.

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