Govt to take action on shopkeepers refusing GST price cuts:Tax department to conduct surprise inspections after roll-out of new rates on Sept 22

The Central Government had announced a reduction in GST rates from September 22, 2025. In such a case, whether the prices have decreased or not will be strictly monitored. Field officers from the Central and State GST departments will conduct sudden inspections in the market. Government officials will purchase those items for which a price reduction has been announced. If it is found that prices have not been reduced according to the tax cut, the tax credit available to shopkeepers may be blocked. Goods that will become cheaper A list will be made in every city for monitoring; investigations will be made accordingly
According to the notice sent by the Central GST department, a list of 54 items whose prices have been reduced has been made. Items have been placed categorically. For example, all types of dry fruits are kept together. Similarly, all types of stationery items are kept in one place. The idea is that similar items will be found in one place. All kitchen utensils, toiletries, and household items are kept in one place. Officials have been given a list of these 54 products. They have been asked to find out the current prices of all items by visiting the market. After 22nd, they have to record the reduced prices in another table. This list will be made in every city and town. Where prices have not been reduced, the department will take appropriate action against those shopkeepers. The government is rapidly refunding taxes to companies
Former Chairman of the Central Board of Indirect Taxes and Customs (CBIC), Vivek Johri, stated that the government has clearly said that it trusts companies that these would pass on the benefits of reduced GST to the common man. For this, the government is rapidly refunding taxes to companies in a very short time. However, the government is also monitoring at its level. It has sent a list of 54 items to all Principal Chief Commissioners of CGST. They have been asked to monitor the rates in the market. If it is found in two to three weeks that the benefit of the GST cut has not reached the common man, either through customer complaints or their own assessment, orders for special audits of companies may be issued. 78% of people said – It is the responsibility of brands to ensure the common man benefits from tax cuts
There was a significant gap in how much the benefit of GST rate cuts had reached consumers, last time. Whereas, a recent survey by LocalCircles clearly shows that only 2 out of 10 consumers saw a reduction in prices in 2018-19, while half of the people felt that manufacturers, distributors, or retailers kept the benefit for themselves. Interestingly, 8 out of 10 consumers want brands to create a solid system so that shopkeepers charge lower prices. Question 1: After GST reduction in 2018-19, who played biggest role in not passing benefit to consumers? (18,897 people gave their opinion) Question 2: Should brands themselves create a monitoring system to ensure that retailers pass on rate cut benefits to customers? The challenge is also because there is no anti-profiteering authority. Under the Consumer Protection Act 2019, not passing on the benefit is not categorized as ‘unfair trade practice’, so it depends on the brands themselves to see if the benefit is passed on or not.