Government Monitors E-Commerce Prices After GST Cut

• Centre monitors if online sellers are passing on GST cuts to buyers
• Field officers tracking price changes, first report due Sept 30
• New GST structure expected to lower prices of 99% of daily use items

The Indian government is keeping a close eye on e-commerce platforms to ensure that the recent GST cuts on essential items are actually benefiting consumers. With concerns rising that some online retailers may not be fully reflecting the tax cuts in product prices, authorities have stepped up monitoring.

According to sources, field officers across the country are now tracking the prices of popular fast moving consumer goods (FMCG) sold online. Their first detailed report is expected by September 30. This report will help the government check if the reduced Goods and Services Tax (GST) rates are being passed on to customers as intended.

The revamped GST system, which came into effect on September 22, merged the earlier tax slabs of 5%, 12%, 18%, and 28% into two simplified tiers: 5% and 18%. This move was aimed at reducing prices for about 99% of daily use items.

A government official noted, “We’re watching the prices closely. While we haven’t taken action yet, we want to ensure fairness without rushing to conclusions”.

Also Read: New GST Rates Unlock More Savings

Several companies have voluntarily cut prices after the tax change, but the government wants to be sure this is happening across the board. On September 9, the Finance Ministry asked GST field officers to monitor prices of 54 commonly used goods, including butter, toothpaste, shampoo, air conditioners, TVs, thermometers, and even school supplies like crayons and erasers.

These efforts are part of the Centre’s broader attempt to protect consumer rights and promote transparency in pricing, especially in the digital retail space.