GST 2.0: No Knee-Jerk Response, Monitoring First As Govt Tracks Whether Price Cuts Reach Shoppers

The government is closely monitoring whether the benefits of the GST 2.0 reforms, particularly the recent rate reductions, are being passed on to consumers, a senior official told NDTV Profit.

According to sources, field formations have been tasked with gathering inputs on 54 product categories that saw tax cuts under the new regime. These reports are expected by Sept. 28 and will form the first comprehensive assessment of how effectively companies and sellers have translated the reform into consumer savings.

Officials said the process will take time, as the impact of tax changes differs across sectors and supply chains. "We cannot have a knee-jerk reaction to fresh reforms. The ecosystem needs some time to adjust before we draw conclusions," the official said, adding that there may not be a uniform story of benefits being passed on immediately.

While large e-commerce firms have been asked to highlight GST savings explicitly on customer bills and products, the government is also tracking offline retail, FMCG players, and consumer durables manufacturers. Officials believe greater transparency in invoices and steady monitoring will create pressure on companies to pass on the gains.

The GST 2.0 reforms, touted as one of the most significant tax overhauls since the indirect tax regime was introduced, are expected to stimulate festive season demand across categories like electronics, apparel, and home appliances. How much of that benefit reaches end buyers, however, is now under government scrutiny.