Govt Pulls Up E-Commerce Players for Not Cutting Prices After GST Rate Reductions

The Finance Ministry and the Central Board of Indirect Taxes and Customs (CBIC) have questioned several e-commerce platforms after receiving complaints that some items became costlier even after GST rate cuts took effect on September 22, 2025. Reports confirmed that these platforms have been cautioned and that prices are being monitored closely.

GST Rate Revision

The new tax regime replaced the earlier four-slab structure of 5%, 12%, 18%, and 28% with a two-slab system of 5% and 18%. According to the reports, around 99% of daily-use items were expected to become cheaper following this change. These include FMCG goods and essential items such as packaged food, toiletries, and pulses.

Complaints from Consumers

Consumer Affairs Secretary Nidhi Khare stated on September 29, 2025, that the department had received more than 3,000 complaints related to companies not passing on the GST benefits. In addition, field officers across India are tracking the prices of 54 commonly used items, ranging from butter and ketchup to cement and medical kits, with brand-wise reports due to CBIC by September 30, 2025.

E-Commerce Platforms’ Stand

One major platform initially listed higher prices after the GST cut, citing technical glitches, but later corrected them. Flipkart said it has introduced updates in its seller dashboard to automatically reflect new tax slabs and has created a storefront called “GST Bachat Utsav” to display products with revised prices. Amazon has not yet issued any statement.

Monitoring Across Sectors

Officials said different ministries are examining prices to ensure that tax benefits are reaching end consumers. While the anti-profiteering framework has not yet been invoked for these complaints, authorities are relying on field reports and data before taking enforcement steps.

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Conclusion

The government has made it clear that compliance with the new GST system is mandatory. Both online and offline sellers are under scrutiny so that consumers see the full impact of the tax changes in the coming months.

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