Government Receives More Than 3,000 Complaints Post GST Rate Cuts, Promises Action Against Anti-Profiteering

The National Consumer Helpline has registered more than 3,000 complaints related to pricing and taxes since September 22, the date when the Goods and Services Tax GST rate cuts had taken effect. This immediate surge in complaints signals public concern regarding whether businesses are passing on the benefit of recent tax cuts to consumers.

Nidhi Khare, Secretary of Consumer Affairs has confirmed the sharp rise, noting that the volume of complaints has doubled on a monthly basis compared to last year. The National Consumer Helpline now receives over 1 lakh complaints every month. In response to the recent post-GST surge, the government is taking swift action against instances of anti-profiteering, where businesses fail to reduce the Maximum Retail Price or the MRP after a tax reduction. This essentially is an issue that arises when the GST rate cut benefits are not passed on to consumers and solely absorbed by the retailers.

The Secretary stated that the government is actively taking action against anti-profiteering and is preparing to file a class action suit against businesses found to be engaging in such practices. To cope with the doubling volume of grievances and to expedite resolution, the Department of Consumer Affairs is focusing on technology. They are using Artificial Intelligence and chatbots to increase the speed of processing and resolving complaints received through the NCH. This technological push is essential to manage the massive public feedback, which has spiked significantly following the latest tax reforms that simplified the GST structure to two primary tiers which is 5% and 18%. Additionally, there has been a lowering of taxes on many essential and consumer electronic items.