Nidhi Khare, the secretary of consumer affairs, said on September 29 that the government has received over 3,000 complaints about businesses that are not providing customers with the advantages of reduced GST rates.
According to individuals who spoke to Moneycontrol, the government has asked several major e-commerce companies to respond to price increases for a select few products even after the GST reduction went into effect.
Two primary slabs of 5 percent and 18 percent have replaced the old multi-tier structure under the new goods and services tax system, which went into effect on September 22. Reducing the tax burden and cutting costs are the main goals of the indirect tax reform.
“After GST rate decreases, a big e-commerce company announced increased pricing. They then fixed the prices, alleging a technical fault,” one of the people said.
On September 26, Moneycontrol stated that the government is reviewing the pricing of over 50 items. An official had said, “We are awaiting information by the end of the month on the pricing of over 50 goods which are being monitored by field formations throughout India.”
According to insiders, the government expressed its disapproval in recent days in interviews with a few significant e-commerce businesses.
“But we are always keeping an eye on the prices because we want to make sure that the advantages of the price reduction are transferred to the customers,” the insider said.
According to the source, many ministries are keeping an eye on pricing fluctuations across industries in an effort to stop profiteering.
Moneycontrol has requested responses from Amazon and Flipkart. After we get the replies, we will update the article.
The government anticipates that during the current festival season, when consumer spending usually reach their height, the effects of rate reduction would be more apparent.
Enforcement steps would not be considered until field reports provide enough proof, authorities said, adding that reforms of this magnitude take time to stabilize completely.
Nidhi Khare, the secretary of consumer affairs, said on September 29 that the government had received over 3,000 complaints about businesses that were not providing customers with the advantages of reduced GST.
Sanjeev Sanyal, a member of the prime minister’s economic advisory council, told Moneycontrol in an interview on September 19 that the government has indicated that the industry should pass on the benefits of the GST cut to retail prices, but it does not want to establish another “inspector raj” to enforce it.
Another official said, “We keep strict surveillance and communicate with firms since we get complaints about non-pass through of costs on a regular basis.”