'Class Action': Govt's Stern Warning If Companies Fail To Pass GST Benefits To Customers

Consumer Affairs Secretary Nidhi Khare has issued a stern warning to companies that fail to pass on the benefits of revised Goods & Service Tax (GST rates) on to the consumers, stating that they will face strict action.

Speaking exclusively to NDTV Profit, Khare said, "If we feel reduced GST hasn’t been passed on, it will be treated as an ‘unfair practice'. We will take class action against those who don't pass on GST benefits."

Khare added that the government has a built-in system to monitor compliance and ensure that violations are addressed quickly. She also vowed to listen to all kinds of consumer complaints.

Earlier in the month, the government announced a revised rate of GST, bringing down prices of most consumer daily goods, in order to boost liquidity and consumption in the country. These revised GST rates are live from Monday, Sept 22.

But due to the fast implementation, the Consumer Affairs Secretary acknowledged that many products are already in the supply chain and re-stickering them might not be possible. As such, the ministry expects sellers of these goods to voluntarily inform the customers of the revised GST rates.

“We found that a lot of products are out of manufacturing. Therefore, they are lying in big numbers in the supply chains. It will take some time for these goods to get exhausted. Looking at their problem, we have allowed these manufacturers, packers and importers they voluntarily let consumers know about revised MRP,” she said.

Khare added that sellers must ensure consumers are aware of the new prices. “Products which are being sold as of today must carry the revised MRP. Earlier, we had said they should go for stickering. Now, we are saying you can do it voluntarily. Sellers who are offering the goods have to convey the new MRPs. This can be done digitally, or by having comparative rate charts or any other innovative way," she said.