Consumer Outcry: Thousands Complain Companies Aren’t Passing on GST Rate Cuts
The government is facing a surge of complaints—between 3,500 and 4,000—from consumers who claim businesses are not lowering prices despite the recent GST rate reductions.
The Ministry of Consumer Affairs, which received these complaints via the National Consumer Helpline, reports that roughly 400 grievances are being lodged daily. The highest volumes are coming from major states, including Uttar Pradesh, Bihar, Delhi, Madhya Pradesh, and Rajasthan.
Who is Being Accused?
The vast majority of complaints are directed at e-commerce platforms. Consumers allege that the tax reductions are not being reflected in the final prices, especially for FMCG items (like soap and toothpaste). Consumer durables (like televisions and ACs) and automobiles are the next biggest segments under scrutiny.
To handle the situation, the ministry has forwarded all complaints to the Central Board of Indirect Taxes and Customs (CBIC) for urgent investigation.
What Triggered the Complaints?
These issues follow the recent sweeping tax reforms, dubbed GST 2.0, which took effect on September 22, 2025.
The reform’s goal was to simplify the tax structure and boost demand by slashing rates on over 375 items. Key changes included:
- Abolishing the 12% and 28% slabs.
- Consolidating most goods and services into just 5% and 18% rates.
- Major items seeing cuts:
- From 18% to 5%: Items like soaps, toothpaste, and packaged foods.
- From 28% to 18%: Items like small cars, televisions, air conditioners, and two-wheelers.
The Roadblocks to Enforcement
The government acknowledges that ensuring compliance is challenging. Investigators must scrutinize complex invoices and cost structures, and the sheer number of sellers on digital platforms complicates the process.
Consumers are urged to monitor their invoices carefully and report any non-compliance. The speed and effectiveness of the CBIC’s anti-profiteering action will determine how successful the GST 2.0 reforms are in truly benefiting the average household.
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