The National Consumer Helpline (NCH) has logged nearly 3,000 complaints related to GST 2.0 tax cuts, according to Consumer Affairs Secretary Nidhi Khare. Issues primarily involve retailers not passing on tax benefits and resorting to misleading discount practices. The ministry is using AI-driven monitoring tools to analyse complaints and has warned of potential class action proceedings against unfair trade practices.
Core Development
Since September 22, 2025, when reduced GST rates came into effect, complaints have surged across sectors.
The Consumer Affairs Ministry is forwarding cases to the Central Board of Indirect Taxes and Customs (CBIC) for action.
AI and chatbots are being deployed to detect dark patterns and misleading advertisements.
Authorities warned that if complaints cluster across sectors, class action cases may be pursued.
Key Drivers / Issues
Retailers allegedly inflating prices and then offering discounts to mask GST benefits.
Lack of transparent billing passing on reduced tax.
Rising consumer awareness, leading to higher complaint volumes.
Government focus on ensuring GST 2.0’s credibility as a consumer-friendly reform.
Stakeholder Impact
For consumers, vigilance ensures they receive intended tax benefits. Retailers face greater scrutiny and risk of penalties for malpractice. Regulators enhance credibility by actively addressing complaints. For businesses, transparency becomes critical to maintaining trust.
Industry & Policy Reactions
Officials emphasised that unfair practices would not be tolerated. Consumer advocates welcomed the ministry’s AI-based monitoring, noting it could set a precedent for tackling digital-era malpractices.
Challenges Ahead
Ensuring timely resolution of thousands of complaints.
Preventing misuse of the complaint mechanism.
Monitoring small retailers where enforcement may be weaker.
Strategic Outlook
The crackdown reflects a broader government push to ensure GST 2.0 delivers real consumer benefits. Stronger monitoring and enforcement will be key to preventing erosion of public trust in the reforms.
Why This Matters
The 3,000+ complaints highlight gaps in passing on GST cuts, underscoring the need for transparent billing and fair pricing. This is crucial to ensure that policy reforms translate into real consumer savings.
