Govt logs 3,000 GST complaints after rate cuts; e-comm faces tighter checks

New Delhi: Roughly a week after the GST overhaul took effect on September 22, the government has recorded about 3,000 consumer complaints alleging that tax relief has not shown up in final prices. 

The Consumer Affairs Ministry states that grievances filed on the National Consumer Helpline are being analysed using artificial intelligence and chatbots to identify sectoral patterns and then forwarded to the Central Board of Indirect Taxes and Customs for action. The ministry has indicated an average resolution time of about 18 days.

Consumer Affairs Secretary Nidhi Khare said the complaints are concentrated in e-commerce, processed foods and consumer durables. She noted that several grievances relate to unchanged MRPs and misleading discounts that obscure the effect of the rate cuts. “We have so far received 3,000 consumer complaints. We are sending them to the CBIC for further action,” Khare said, urging consumers to report issues on 1915 and to retain receipts as evidence. 

She said businesses engaging in unfair practices could face penalties under the Consumer Protection Act, including notices, product recalls or reimbursements.

E-commerce operators are under particular scrutiny. Officials say some platforms have been informally warned after price inconsistencies were flagged on essential items. Several operators have attributed discrepancies to technical glitches, but the revenue department is verifying whether tax reductions have been implemented correctly in pricing systems. 

A senior government official said the administration is monitoring online marketplaces to ensure a smooth and genuine pass-through of the cuts and is tracking whether taxes have been reduced commensurately.

The GST structure has been simplified to two tiers of 5% and 18%, replacing the previous four slabs of 5%, 12%, 18% and 28%. Officials say the change is intended to lower prices on the vast majority of daily-use items. The finance ministry has instructed Central GST field officers to submit monthly brand-wise MRP reports across a basket of 54 commonly used products, including items such as tomato ketchup, jams, ice cream, televisions, air conditioners, diagnostic kits, glucometers, bandages, thermometers, erasers, crayons and cement. The first set of reports is due this week and will inform follow-up inspections where needed.

While the anti-profiteering mechanism has not been activated for these complaints, the ministry says some companies have voluntarily reduced prices in line with the new rates. Staffing on the National Consumer Helpline has been augmented, and teams have received GST-specific training to handle the influx.

For brands and sellers, the immediate task is to align MRPs, invoices and checkout prices with the revised slabs across both physical retail and e-commerce. 

Marketplaces are expected to ensure that product pages, carts and final payable amounts reflect the new rates and that promotional messaging does not mask the effect of the cuts. 

With the festive cycle beginning, regulators will watch complaint trends and the field reports closely to assess whether GST benefits are reaching households as intended.