Consumer Affairs Department flags over 3,000 complaints on GST cut not passed to buyers

The Department of Consumer Affairs has flagged mounting grievances against companies for not passing on the benefits of GST rate cuts to consumers, with more than 3,487 complaints and enquiries registered so far.

“Out of these, nearly 68% are complaints, while the rest are enquiries. About 1,700 complaints have already been sent to the Central Board of Indirect Taxes and Customs (CBIC),” Nidhi Khare, Secretary, Department of Consumer Affairs, told Business Today.

Khare added that e-commerce platforms, consumer durables, and processed food products are among the top sectors attracting complaints following the rollout of the new GST rate cuts. Consumers have flagged cases of incorrect GST rates being charged and non-implementation of notified tax cuts.

Some complaints relate to discounts on e-commerce platforms that do not fully reflect the reduced GST, and some indicate products have been marked up, raising concerns of profiteering.

To streamline redressal, the ministry has created a dedicated GST grievance category on the National Consumer Helpline (NCH). The ministry is closely tracking pending cases and has warned that it may initiate class action under unfair trade practices if businesses continue to deny GST cut benefits to consumers.