Are Milk, Electronics, and LPG Leading GST-Related Consumer Complaints at NCH?

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Are Milk, Electronics, and LPG Leading GST-Related Consumer Complaints at NCH?

Synopsis

Consumers are voicing their concerns about GST-related issues, particularly regarding milk pricing and electronics. The NCH has seen a surge in complaints, reflecting public engagement and the effectiveness of the consumer grievance system.

Key Takeaways

  • Consumers are actively participating in the grievance redressal process.
  • Milk pricing continues to be a major concern.
  • GST rates for electronics have been clarified by the CCPA.
  • LPG pricing remains unchanged despite consumer expectations.
  • Petrol pricing is not influenced by GST reforms.

New Delhi, Oct 3 (NationPress) The National Consumer Helpline (NCH) is currently receiving a notable number of grievances related to the implementation of GST 2.0 by retailers and e-commerce platforms. A significant portion of these complaints concerns milk prices, followed closely by electronics, LPG, and petrol, as reported by the government.

Many consumers have reached out to the NCH believing that the GST reform would compel milk companies to lower their prices for fresh milk.

However, consumers have expressed frustration that milk companies are still charging prices consistent with pre-reform rates, thus depriving them of the benefits associated with the reduced GST rate.

Upon investigation, the Central Consumer Protection Authority (CCPA) clarified that fresh milk is already exempt from GST. Additionally, the latest reforms have also exempted ultra-high temperature (UHT) milk.

Another major category of complaints involves electronic goods purchased via e-commerce platforms.

Consumers have raised issues regarding laptops, refrigerators, washing machines, and other household appliances bought online, claiming they are still being charged pre-reform GST rates, lacking any tax reduction benefits.

The CCPA has found that the GST rate was indeed lowered from 28% to 18% for items like TVs, monitors, dishwashers, and air conditioners as part of the reform. However, products such as laptops, refrigerators, and washing machines already had a tax rate of 18%.

A third category of complaints pertains to domestic LPG cylinders. Consumers have reported that the prices of LPG have not decreased in light of the reforms.

The CCPA has confirmed that domestic LPG continues to be taxed at a rate of 5% GST, with no changes for household consumers.

Moreover, grievances have also arisen concerning petrol prices. Numerous consumers have filed complaints claiming that petrol prices have not dropped. The CCPA has firmly stated that petrol remains outside the jurisdiction of GST.

The Ministry of Consumer Affairs noted, "Consumers’ expectations for lower petrol prices arise from a misunderstanding of the GST reforms rather than any failure by retailers or oil companies."

As part of the ongoing implementation of the Next-Generation GST Reforms 2025, the NCH has recorded a total of 3,981 GST-related complaints, consisting of 31% queries and 69% grievances.

These grievances have been escalated to the relevant brand owners and e-commerce companies for prompt resolution.

Additionally, the CCPA has initiated a thorough review of these grievances for potential class action, whenever warranted.

Out of the total complaints, 1,992 GST-related grievances have been forwarded to the Central Board of Indirect Taxes and Customs (CBIC) for suitable action, while 761 grievances have been referred in real-time to the respective convergence companies for immediate resolution.

The overarching message from the initial week of reporting GST-related grievances is that consumers are actively engaging in the grievance redressal system, showcasing both awareness and confidence in the institutional frameworks established by the Department of Consumer Affairs.

Point of View

NationPress
03/10/2025

Frequently Asked Questions

What are the main grievances reported to NCH regarding GST?
The primary complaints involve milk pricing, electronics, LPG, and petrol, with consumers alleging that prices have not adjusted following the GST reforms.
Is fresh milk subject to GST?
No, fresh milk is exempt from GST, as confirmed by the Central Consumer Protection Authority.
What changes were made to the GST rates for electronics?
The GST rate for items like TVs and ACs was reduced from 28% to 18%, while many electronic goods were already at 18%.
Why haven't LPG prices decreased?
The GST rate for domestic LPG remains at 5%, with no changes enacted following the reforms.
Are petrol prices affected by GST?
No, petrol is outside the scope of GST, and any changes in prices are not related to GST reforms.
Nation Press