GST 2.0: Centre pulls up e-commerce companies for not reducing prices, says report

The central government has sought responses from some big e-commerce companies, as a few items hosted on their platforms were being sold at high prices despite the Goods and Services Tax cuts, said a report.

The central government has eliminated the 12 per cent and 28 per cent GST slabs and moved the items under these categories into 5 per cent and 18 per cent slabs, effectively lowering taxes on a host of items. The government rationalizedthe Goods and Services Tax to boost domesticconsumption by placing more money into the hands of the masses.

The government has been monitoring whether companies have passed on the GST benefits or not. They have also asked consumers to lodge complaints against firms that are not reducing their prices despite GST cuts.

Moneycontrol reported, citing sources, that an e-commerce company had advertised higher prices after GST rate cuts were implemented. However, the company blamed a technical glitch forthe issue and corrected the prices.

The government had been monitoring the prices of 50 products, the website reported on September 26.

Over the last few days, the government spoke to these companies and expressed its displeasure.

Different ministries are monitoring price changes across sectors to curb profiteering, the source said, according to Moneycontrol.

The central government wants the companies to make the GST cut in prices visible during the festive season, as they are marked by massive consumer demand.

Earlier this month, consumer affairs secretary Nidhi Khare said the department received more than 3,000 complaints regarding companies not passing the benefits of lower GST to consumers.

Sanjeev Sanyal, a member of the economic advisory council to the prime minister, also said that the government has hinted to the industry to pass the GST benefits.