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Government Inquires E-Commerce Firms About Price Increases After GST Cuts

sabal singh bhatibysabal singh bhati
October 1, 2025
Government Inquires E-Commerce Firms About Price Increases After GST Cuts

New Delhi: Following numerous public complaints regarding price increases for specific items, the Union government has issued inquiries to several e-commerce platforms to understand the reasons for these hikes. Officials from the Union government are closely monitoring price fluctuations for commonly used items on e-commerce sites, particularly assessing whether prices have decreased before and after September 22. E-commerce platform operators are under scrutiny for raising prices on certain products despite significant rate reductions under GST 2.0, which eliminated two tax slabs to ease the tax burden and lower consumer prices. Reports indicate that one e-commerce platform had listed higher prices after the GST reductions, attributing this to a technical error, which was subsequently rectified.

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Officials noted that the government is evaluating the prices of over 50 products, with field teams nationwide ensuring compliance. Consumer Affairs Secretary Nidhi Khare recently stated that the department has received more than 3,000 complaints regarding companies not passing on the GST benefits to consumers. During an event, Khare mentioned that complaints are received daily, and the ministry is forwarding them to the Central Board of Indirect Taxes and Customs (CBIC) for necessary action. “The focus is on misleading advertisements, unfair trade practices, and instances where the benefits of GST cuts are not reflected in the final prices paid by consumers,” she added.

The government anticipates that the effects of the rate cuts will become more apparent during the ongoing festival season, when consumer spending is typically at its peak.

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