Govt Asks E-Commerce Firms Why Prices Went Up Despite GST Cuts

(MENAFN- IANS) New Delhi, Sep 30 (IANS) 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.

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