Why Did E-Commerce Prices Increase Despite GST Reductions?
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Synopsis
The government is scrutinizing e-commerce firms for raising prices despite GST cuts. With over 3,000 consumer complaints received, officials are investigating compliance and misleading advertisements. Will prices adjust during the festive season?
Key Takeaways
- The government is questioning price increases by e-commerce firms despite GST cuts.
- This new GST framework aims to simplify tax structures and reduce consumer costs.
- Over 3,000 complaints have been filed regarding non-compliance with GST benefits.
- Field teams are monitoring compliance across the country.
- The impact of GST cuts is expected to be evident during the festive shopping season.
New Delhi, Sep 30 (NationPress) The government has requested explanations from several prominent e-commerce firms regarding the rise in prices for specific items, despite the recent reductions in the goods and services tax (GST).
The updated GST framework, effective from September 22, has streamlined the earlier complex multi-tier system into two primary slabs of 5 percent and 18 percent.
This reform is designed to alleviate the tax load and lower prices for consumers.
Reports indicate that one e-commerce platform had displayed inflated prices post-GST cuts, attributing this to a technical error.
The company later rectified these prices. Government officials have noted that they are currently evaluating the pricing of over 50 products, with field teams nationwide ensuring adherence to regulations.
In the meantime, Consumer Affairs Secretary Nidhi Khare recently stated that the department has received more than 3,000 complaints from consumers regarding companies failing to pass on the benefits of GST reductions.
During an event, Khare emphasized that complaints are being logged daily, and the ministry is forwarding these to the Central Board of Indirect Taxes and Customs (CBIC) for necessary action.
"We are receiving complaints every day. Thus far, we have documented close to 3,000 consumer complaints. We are sending these to the CBIC for further measures," she informed reporters.
"The focus is on misleading advertising, unfair trade practices, and situations where the advantages of GST cuts are not reflected in the final prices paid by consumers," she added.
Sanjeev Sanyal, a member of the Economic Advisory Council to the Prime Minister, previously indicated that the government anticipates that industry stakeholders will appropriately reflect GST reductions in retail prices, yet they do not wish to establish an "inspector raj" for enforcement.
The government hopes that the effects of the rate reductions will become increasingly apparent during the ongoing festival season, a time when consumer spending typically peaks.
Point of View
It is vital to recognize the government's proactive approach in addressing consumer concerns regarding price fluctuations in e-commerce. This scrutiny aims to uphold fairness and transparency in the marketplace, ensuring that the benefits of GST reductions reach consumers effectively.
NationPress
30/09/2025
Frequently Asked Questions
Why did e-commerce prices increase despite GST cuts?
Some e-commerce platforms cited technical errors for the price increases, while the government is investigating compliance with GST regulations.
What actions is the government taking?
The government is reviewing prices and has received over 3,000 complaints regarding companies not passing on GST benefits.
How many products are under review?
The government is currently monitoring the prices of over 50 products nationwide.
What is the government's expectation from businesses?
The government expects businesses to reflect the GST cuts in their retail prices without enforcing strict regulations.
When will the impact of GST cuts be more visible?
The government anticipates that the effects of the GST cuts will be more noticeable during the ongoing festival season.
