Consumer groups have worried about the benefits of tax cuts reaching thewm after the rollout of GST 2.0 on September 22nd. Surveys suggest that nearly 75% of consumers doubt the benefits of GST rate cuts will actually lower retail prices. 

To address mounting concerns, the Ministry of Finance has directed the Central Board of Indirect Taxes and Customs (CBIC) to monitor the prices of common household goods and prevent profiteering.

Anti-Profiteering Concerns and Consumer Expectations

While there are some examples of high-value goods like cars becoming cheaper after GST rate rationalisation, industry experts have noted that profiteering risks remain high on lower value goods, as companies may keep maximum retail price (MRP) unchanged despite lower tax burdens. Already, there are many complaints from consumers surfacing on social media.

Price Monitoring

According to official communications by the Finance Ministry, CBIC will deploy field formations to compile price data for around

• 54 everyday items such as biscuits, chocolates, soaps, shampoos, ghee, and
• Consumer durables like refrigerators and washing machines.

Tax officials have been instructed to prioritise the following:

1. Recording the printed MRP of these items on product batches issued before and after September 22nd, 2025, when the new GST rates took effect.
2. Submitting the data monthly for six months, with the first report due on September 30.
3. Monitoring e-commerce platforms, where algorithmic pricing can be used to mask the impact of GST cuts. 

The Consumer Affairs ministry has asked citizens not getting the benefits of rate cuts to

• call the National Consumer Helpline number 1915 or
• file a complaint via WhatsApp on 8800001915

Challenges in Implementation

Under the earlier GST law, Section 171 empowered authorities to act against those found guilty of profiteering. However, this anti-profiteering provision lapsed on April 1, 2025. As a result, while the government will still monitor and publicise price data, it cannot penalise violators without new GST compliance mechanisms. Instead, public reporting of price data is a way to put moral pressure on companies to pass on benefits.

However, tracking prices across India’s diverse markets is time-consuming. Retailers are not willing to bear losses as many of them have old inventory purchased at the old tax rates. For companies too, relabeling MRPs on packaged goods involves logistical delays. Advocacy groups have argued that profiteering will thus continue unchecked.

The Road Ahead

While GST reform aims to simplify taxation and reduce costs, its success will depend on implementation. The Finance Ministry’s monitoring exercise is a step towards ensuring accountability, but stronger enforcement provisions may be needed.

Consumers are watching closely to see whether their household budgets will actually benefit from GST rate reductions. The first price monitoring report, due on 30th September, will therefore be a critical test of whether GST in India is truly delivering on its promise of fairness and affordability.

Keywords: GST 2.0, GST reform, profiteering, Finance Ministry, CBIC, price data, maximum retail price (MRP), anti-profiteering provision, GST compliance, GST in India