The GST 2.0 regime, effective September 22, cut tax slabs to 5% and 18%, aimed at lowering consumer prices. However, several e-commerce platforms raised prices instead, drawing government scrutiny. Over 3,000 complaints have been filed as officials monitor compliance and review unfair trade practices
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The new GST reforms have surely impacted the pockets of the Indian customers in a significant manner. Prices of various products have been marginally slashed, which is ultimately befitting the consumers. However, the same is not the case when it comes to online shopping. Even after implementing the new GST reforms, prices of several products across e-commerce websites have seen a significant hike.
As reported by news agency INAS, the government has now 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 that 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 of the GST2.0 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 same e-commerce platform later corrected the prices.
While addressing the issue, GST officials said that 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, one of the officials also asserted 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,” as cited by news agency IANS.
She further added, "Every day, 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," as per IANS.
While slamming misleading commercials and unfair trade practices across e-commerce and offline stores, she further emphasised that, “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,” as cited by news agency IANS.
Sanjeev Sanyal, a member of the Economic Advisory Council to the Prime Minister, had 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.
(With inputs from IANS)
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