Centre asks e-commerce firms why prices went up despite GST cuts

New Delhi: After several complaints were received from the public about a price hike for certain items, the Union government has sent out queries to a few e-commerce platforms asking about the reasoning behind the price hike.
The Union government is keeping a close watch on the price changes for common-use items on e-commerce platforms, the officials said, adding that they are monitoring whether prices of items have been reduced pre- and post-September 22.
E-commerce platform operators are under scanner of the government for hiking prices of certain items despite sweeping rate cuts under GST 2.0 reducing prices by removing two tax slabs. The overhaul aims to reduce the tax burden and bring down prices for consumers.
According to reports, one e-commerce platform had advertised higher prices following the GST rate cuts, citing a technical glitch.
The company later corrected the prices. The officials said the government is reviewing the prices of over 50 products, with field teams across the country monitoring compliance.
Consumer Affairs Secretary Nidhi Khare recently said the department received more than 3,000 complaints about companies not passing on the GST benefits to buyers. While speaking at an event, Khare mentioned that complaints are coming in every day, and the ministry is forwarding them to the Central Board of Indirect Taxes and Customs (CBIC) for further action.
“The focus is on misleading advertisements, unfair trade practices and cases where the benefits of GST cuts are not being reflected in final prices paid by consumers,” she added.
The government expects the impact of the rate cuts to become more visible during the ongoing festival season, when consumer purchases are typically at their peak.




















