Government scrutinising e-commerce platforms for not complying with GST rate cuts
The revised GST norms came into effect from September 22
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Bet_Noire
E-commerce platforms are under the government’s scanner for not passing on benefits of reduced GST rates to consumers. This comes after the government received complaints from consumers that prices were not reduced of certain items on the e-commerce platforms commensurate to the GST cuts. Authorities said they are closely monitoring the prices on the online platforms to ensure they comply with the norms and not withholding the intended consumer benefits from tax reductions.
The revised GST norms came into effect from September 22 post which all the top e-commerce marketplaces are running festive sales. A wide range of products have seen revision of GST prices.
Sources said the government has also pulled up some platforms after complaints were received that prices of some items were hiked despite lower GST rates. These were later corrected after being attributed to technical glitches.
“We are closely monitoring e-commerce platforms to ensure price benefits of GST cuts are passed on to consumers,” sources said.
3,000 complaints
On Monday, Consumer Affairs Secretary Nidhi Khare revealed that the National Consumer Helpline have received over 3000 complaints related to GST. She added that some of the complaints have been forwarded to the Central Board of Indirect Taxes and Customs (CBIC).
Responding to the development, Flipkart told businessline: “Flipkart has taken several communication and tech enhancement measures to ensure that the GST reductions are passed on to customers, by sensitising seller partners and providing a simplified seller dashboard with automatic backend updates of the new GST slabs, thereby making it easier for them to adopt the changes. Additionally, the company has undertaken training sessions and webinars to bring clarity to the sellers and to address seller queries. We have also been promoting the price benefits through a dedicated storefront initiative called “GST Bachat Utsav,” which highlights tax-linked savings for customers.”
A spokesperson for Amazon India said, “Sellers remain responsible for ensuring the correct GST rates and Product Tax Codes (PTCs) are applied to their products, and Amazon has proactively supported them with tools and guidance to review and maintain accuracy across their listings. Wherever possible, Amazon has automatically updated GST rates and PTCs on sellers’ listings for select product categories…… While sellers on Amazon.in continue to have complete control over product pricing, we have enabled them to conveniently pass on benefits of GST reductions to customers in applicable categories. In the first few days of the Amazon Great Indian Festival, we have enabled sellers to pass on savings over ₹100 crore in GST benefits to customers.”
Earlier, on September 9, the Finance Ministry had directed Central GST field officers to submit monthly price monitoring reports for 54 commonly used products. The list includes items such as butter, shampoo, toothpaste, tomato ketchup, jams, ice cream and air conditioners, the report added.
Published on September 30, 2025
