Centre Tightens Scrutiny Of Online Retailers To Ensure GST Savings Reach Consumers

The government has brought e-commerce platforms under close scrutiny as it monitors prices of daily-use FMCG products from shampoo to pulses to ensure that the benefits of Goods and Services Tax rate cuts are being passed on to consumers, a source told news agency PTI on Tuesday.

Authorities are tracking whether these platforms are complying with pricing norms and not withholding consumer benefits from tax reductions.

Amid complaints that the price reductions of essential items on some platforms are not in line with GST cuts, sources said the government has informally pulled up certain operators over their pricing.

"The government is monitoring e-commerce operators for a smooth and genuine passage of GST cuts. The revenue department is monitoring whether taxes have been cut commensurately," the source said.

When confronted with discrepancies between pre- and post-GST prices, platforms reportedly cited "technical glitches."

"Government is keeping a strict vigil," the source added.

Effective Sept. 22, GST was simplified into a two-tier structure of 5% and 18%, replacing the earlier four slabs of 5, 12, 18, and 28%. This restructuring has reduced the price of 99% of daily-use items.

Although the anti-profiteering mechanism has not yet been enabled for related complaints, the government continues to monitor pricing. Several companies have also voluntarily stated that they are reducing prices to pass on the benefits of tax cuts.

Earlier, on Sept. 9, the finance ministry directed Central GST field officers to file monthly reports on price changes in 54 commonly used items. The first brand-wise comparative MRP report was due to be submitted to the Central Board of Indirect Taxes and Customs on Tuesday.

The monitored list of 54 items includes butter, shampoo, toothpaste, tomato ketchup, jams, ice cream, ACs, TVs, diagnostic kits, glucometers, bandages, thermometers, erasers, crayons, and cement, among others.

(With inputs from PTI).