E-commerce platform operators are under the scanner of the government for increasing prices of certain items despite sweeping rate cuts under GST 2.0, which became effective on September 22. Following multiple complaints from the public regarding price hikes on certain products, the government has sent queries to a few e-commerce platforms seeking explanations for the increased prices.
“Several users raised complaints about prices of some items going up even after the GST rate cut. We have asked the e-commerce operators (about it). The extent of price cuts after GST reduction depends on them but at least the prices should not go up if the GST rate has come down for that item,” a government official said.
Monitoring Price Changes Across Product Categories
The government is closely observing price changes for commonly used items on e-commerce platforms. Officials are monitoring whether prices have been adjusted both pre- and post-September 22, the start of the GST rate cuts. Last week, a senior government official had confirmed that authorities are keeping a close watch on the benefits being passed on to consumers after the tax reduction.
Earlier, on September 9, the Revenue Department instructed principal chief commissioners and chief commissioners of central GST zones to compile commodity-wise price data across 54 product categories, including FMCG, food and educational items, drugs and medicines, cement, and white goods. Field offices were asked to treat the exercise “on priority” and submit reports to the Central Board of Indirect Taxes and Customs (CBIC) by the 20th of every month for the next six months, with the first report due on September 30.
Most items have seen price reductions, although some products have not yet been adjusted due to unsold stock. Meanwhile, the government has received close to 3,000 complaints related to GST on the National Consumer Helpline. Transition-related issues, particularly from smaller retailers, are also being noted.
Anti-Profiteering Oversight Under GST
Currently, there is no legal anti-profiteering provision under GST laws. At the rollout of the indirect tax regime in July 2017, Section 171(2) of the Central GST (CGST) Act incorporated anti-profiteering measures. The National Anti-Profiteering Authority (NAA) was set up in November 2017 to prevent unfair profiteering by registered suppliers and ensure that reductions in GST rates and input tax credits were passed to consumers. Initially established for two years until 2019, the authority was later extended.
From December 1, 2022, the Competition Commission of India (CCI) began handling GST anti-profiteering complaints. In a notification dated October 1, 2024, the government empowered the Principal Bench of GSTAT (GST Appellate Tribunal) as the authority for anti-profiteering cases, with April 1, 2025, set as the sunset date for the anti-profiteering clause in GST law.