Govt puts e-comm platforms on radar for GST rate cut benefit compliance

Update: 2025-09-30 18:53 GMT

New Delhi: The government has stepped up scrutiny of e-commerce platforms to ensure consumers benefit from recent Goods and Services Tax (GST) rate reductions on daily-use goods, a source said on Tuesday. The monitoring covers fast-moving consumer goods (FMCG) such as shampoo, pulses, toothpaste, and butter, with concerns raised over some operators not reflecting the tax cuts in their prices.

“The government is monitoring e-commerce operators for a smooth and genuine passage of GST cuts,” the source said, adding that the revenue department is reviewing whether reductions are reflected in the Maximum Retail Price (MRP). Some platforms reportedly cited “technical glitches” when discrepancies in pre- and post-reduction prices were highlighted.

The revised GST structure, effective September 22, has consolidated earlier rates of 5, 12, 18, and 28 per cent into two slabs of 5 and 18 per cent. As a result, nearly 99 per cent of commonly used goods should see lower prices.

Although the anti-profiteering framework is not active for consumer complaints, the government is closely monitoring compliance. On September 9, the finance ministry directed Central GST officers to file monthly reports on 54 essential items, including shampoo, toothpaste, ice cream, cement, TVs, diagnostic kits, and thermometers. The first report is due to the Central Board of Indirect Taxes and Customs (CBIC) this week.

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