Consumer Affairs Department steps up monitoring after 3,000 complaints on retailers not passing tax cuts to buyers
The central government has flagged major ecommerce platforms for failing to pass on the benefits of recent Goods and Services Tax (GST) rate cuts to consumers, following complaints that price reductions remain inadequate since the roll-out of GST 2.0 reforms as per media reports.
Consumer Affairs Secretary Nidhi Khare said the National Consumer Helpline had received more than 3,000 complaints against retailers and service providers for not transferring GST savings, with some reports suggesting that certain products were even marked up despite lower tax rates. The complaints are being forwarded to the Central Board of Indirect Taxes and Customs (CBIC) for further action.
According to media reports, several ecommerce operators were informally questioned. In one instance, a platform briefly displayed higher prices after the GST cuts, citing “technical glitches” before correcting them.
To ensure compliance, the CBIC has introduced an extensive monitoring system covering 54 commonly used items, including fast-moving consumer goods such as toothpaste and butter, consumer durables like air conditioners and televisions, as well as medical supplies, stationery, and construction materials. Field officers across India are collecting brand-wise pricing data before and after the reforms, with monthly reports due to the CBIC for the next six months.
Platforms Claim Savings Transferred
ecommerce majors Amazon and Flipkart said GST benefits have already been passed on to buyers. Amazon reported consumer savings of more than Rs 100 crore during its Great Indian Festival sale, while Flipkart said sellers had transferred over Rs 200 crore in benefits during early festive promotions, according to media reports.
Flipkart said it had introduced a simplified seller dashboard for automatic GST updates, training sessions, and a dedicated “GST Bachat Utsav” storefront to highlight tax-linked savings. Amazon has also launched mechanisms and masterclasses to help sellers transition to the new rates.
GST 2.0 Reform and Consumer Impact
The new GST framework, effective 22 September, replaced the earlier four-tier system of 5, 12, 18 and 28 per cent with two main slabs of 5 and 18 per cent, along with a 40 per cent rate for luxury and sin goods. The overhaul is expected to cut prices of nearly 99 per cent of daily-use items, simplifying taxation and lowering consumer costs.
As per media reports, unlike the previous anti-profiteering framework, which was discontinued in April 2025, the government has opted against a new inspector-led enforcement system. Sanjeev Sanyal, member of the Prime Minister’s Economic Advisory Council, said the approach relies on public pressure, market forces, and continuous monitoring rather than creating a new “inspector raj.”
