The government has placed e-commerce platforms under scrutiny to ensure that the benefits of GST 2.0 rate cuts are passed on to consumers. Following complaints of inadequate price reductions on essentials like shampoo, pulses, and toothpaste, the Revenue Department and CBIC are monitoring compliance closely. Some operators have already been informally warned over discrepancies, even as authorities gather brand-wise MRP reports on 54 items.
Core Development
Effective September 22, 2025, GST was simplified into two slabs: 5% and 18%, down from four earlier rates.
Nearly 99% of daily essentials saw reduced tax rates, but consumer complaints suggest savings aren’t being fully passed on.
E-commerce platforms cited “technical glitches” when confronted with mismatched pre- and post-GST pricing.
The Finance Ministry directed CGST officers to submit monthly price reports on 54 FMCG and household goods.
Key Drivers / Issues
Rising consumer complaints about unfair pricing and misleading discounts.
Ensuring credibility of GST 2.0 reforms as consumer-friendly.
Use of AI tools and brand-wise monitoring to detect profiteering patterns.
Absence of a formal anti-profiteering mechanism, placing more weight on proactive enforcement.
Stakeholder Impact
For consumers, enforcement promises realisation of intended tax relief. E-commerce platforms and retailers face higher compliance pressure. Government authorities strengthen trust in GST reforms. For FMCG brands, transparent pricing will be crucial to sustain consumer confidence.
Industry & Policy Reactions
Officials emphasised that the government is keeping a “strict vigil” on operators to ensure genuine passage of benefits. Policy experts called this essential for reinforcing public trust in GST reforms, warning that profiteering could undermine credibility.
Challenges Ahead
Monitoring large-scale online transactions in real-time.
Preventing circumvention via inflated pre-discount pricing.
Building effective deterrents without a formal anti-profiteering tribunal.
Strategic Outlook
The crackdown signals a strong enforcement phase for GST 2.0, where compliance monitoring extends into digital commerce. Over time, stricter checks could encourage fairer pricing practices and consumer confidence in tax reforms.
Why This Matters
Ensuring that GST cuts reach consumers is vital to preserving the reform’s legitimacy. E-commerce platforms are central to this effort, making compliance critical for consumer trust and policy success.
