Central Govt Ensuring GST Rate Cuts Are Passed On To Consumers: Finance Ministry Tells Lok Sabha

The Ministry of Finance has informed the Lok Sabha that, where several GST rates were rationalised, the Central Government has put in place a coordinated tax-administration mechanism to ensure that businesses actually pass on the GST rate-cut benefits to consumers. CBIC Monitoring Prices After GST Rate Cuts The Finance Ministry stated that the CBIC has been monitoring prices of key GST-covered goods, including packaged foods and pharmaceuticals, comparing prices pre- and post-22 September 2025, when the revised rates took effect. According to the Government, data received so far indicates that “benefits have duly been passed on to end-consumers” after the GST rate reduction. The CBIC has also held meetings with major trade bodies and industry groups to emphasise tax-compliance obligations arising from the rate cuts. Mandatory Revision of MRP for Drugs & Devices Under GST In line with the GST reductions, the NPPA issued Office Memoranda on 12.09.2025 and 13.09.2025 directing all manufacturers and marketers to revise the Maximum Retail Price (MRP) of all drugs, formulations and medical devices to reflect the lowered GST incidence. The Department of Consumer Affairs also permitted affixing of revised-price stickers on unsold pre-rate-cut inventory, subject to preservation of original declarations. Anti-Profiteering Style Oversight Through Consumer Helplines To detect cases where businesses may not be passing on GST reductions, the Government highlighted a GST specific FAQ has been uploaded on the CBIC website guiding consumers on how to report non-pass-through of tax benefits; Consumers can lodge complaints on the National Consumer Helpline (NCH) or INGRAM portal. The reply confirms that appropriate action is being taken on complaints backed by documentary evidence. Awareness Measures By Tax Authorities Publicity campaigns through print media, social media and FAQs have been launched to educate taxpayers and consumers about the GST rate rationalisation and the obligation to pass on the reduced tax incidence. Click Here To Read/Download Reply

Central Govt Ensuring GST Rate Cuts Are Passed On To Consumers: Finance Ministry Tells Lok Sabha

Rajnandini Dutta

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