GST slabs cut to 5% and 18% across India:Despite price cuts, consumers pay old rates for shampoo, cement, stationery and daily items

The government has revised GST slabs from four to two rates – 5% and 18%, making essential items like soap, shampoo, air conditioners, and cars cheaper. Despite official instructions that old stock should also be sold at revised rates, a Divya Bhaskar investigation across Ahmedabad, Vadodara, Surat, and Rajkot reveals most traders are yet to pass on the price reduction to customers. Reality check across four cities Divya Bhaskar reporters Anirudhsinh Makwana (Ahmedabad), Rohit Chavda and Dhaval Chaudhary (Vadodara), Swetasingh (Surat), and Kulin Parekh and Keval Dave (Rajkot) conducted reality checks and sting operations to examine the impact of GST reduction on retail prices. In Surat’s Udhana area, shampoo priced at Rs 82 and hair oil at similar rates remained at old prices. Shopkeepers stated that they were selling old stock purchased under 18% GST, and new rates would apply only when fresh stock arrives. Similar observations were made for stationery items like pencils in Ahmedabad and Rajkot, even though GST on pencils has been reduced from 12% to 0%. Old stock and price manipulation Merchants in Vadodara and Ahmedabad said old stock would be sold at previous rates due to prior purchase costs. Cement dealers in Rajkot quoted prices as per old GST, promising reductions only when new stock arrived in 3–4 days. Some shopkeepers even claimed that while weights of items increased, prices remained unchanged. A Rajkot stationery store revealed pencil prices did not change despite the reduction in GST. Similarly, cement prices quoted by hardware merchants remained unaffected as companies have not revised rates post-GST reduction. Partial implementation seen in medical and grocery stores In a sting operation at Rajkot’s medical store near Chaudhary High School, Dove shampoo prices reduced from Rs 102 to Rs 88, and Navratna oil from Rs 20 to Rs 18, reflecting the 13% benefit. At Kumar General Store on Yagnik Road, a toothbrush price dropped from Rs 25 to Rs 20, ghee from Rs 320 to Rs 300, talcum powder from Rs 125 to Rs 115, and Maggi packets from Rs 15 to Rs 14. However, other stores, including Balaji Provision Store on Raiya Road, admitted no price reduction on drinking water bottles and other items despite GST changes. Some traders even suggested the reduction was temporary due to upcoming elections. Government clarifications for shopkeepers According to the Chartered Accountants Association, Surat, shopkeepers cannot sell old stock at old prices because they can claim GST credits or refunds. Finance officials clarified that the rate on the day of sale applies, and traders must adjust old stock in GST returns without charging extra. Certain items, like wheat, rice, pulses, milk, curd, eggs, salt, natural honey, and packaged drinking water, remain exempt from GST reduction. Petrol, diesel, gold, silver, smartphones, and laptops also maintain existing rates. Consumer complaints and legal remedies The government has instructed that traders must pass on reduced GST benefits to customers. If shopkeepers fail to comply, complaints can be filed, with guilty traders facing fines or imprisonment. Consumer Protection and Action Committee President Mukesh Parikh stated that while the reduction is welcome, most retailers are not passing the 13% price cut to consumers. In some cases, merchants sell old stock at MRP without giving bills, creating confusion and dissatisfaction. Impact of GST reduction on prices The GST revision will make daily essentials, electronics, vehicles, and insurance cheaper: Example: A Rs 100 bottle of hair oil earlier priced at Rs 118 under 18% GST now costs Rs 105 under 5% GST, saving Rs 13 for consumers. Despite these measures, real-time implementation remains inconsistent, and customers are yet to fully enjoy the benefits of reduced GST rates.