The Central Board of Indirect Taxes and Customs (CBIC) has issued a directive to all Principal Chief Commissioners and Chief Commissioners of Central Tax, instructing them to compile monthly reports on commodity price changes before and after the implementation of the upcoming GST rate rationalization effective September 22, 2025.
According to the Office Memorandum (F. No. -190349/43/2025-TRU) issued by the Tax Research Unit (TRU), the GST Council recently approved rationalization of GST rates across several commodities. The move is part of the government's broader effort to make GST more consumer-friendly and address concerns of inflation.
Key Highlights of the Directive
Commodities Covered: Everyday items like condensed milk, butter, ghee, dried fruits, chocolates, biscuits, ice cream, toiletries, shampoos, medicines, diagnostic kits, bicycles, cement, solar equipment, and household appliances.
Data Collection: Field formations and trade associations are required to submit commodity-wise Maximum Retail Price (MRP) comparisons for goods before and after the rate change.
Timeline:
- First report due by September 30, 2025.
- Subsequent monthly reports to be submitted by the 20th of every month until March 2026.
Objective: To ensure transparency in price transmission of GST benefits and monitor if businesses are passing on tax relief to consumers.
The directive emphasizes that this exercise must be treated on priority, reflecting the government's focus on consumer welfare and effective tax administration.
The GST Council's rationalization, scheduled for rollout on September 22, 2025, is expected to impact prices of essential as well as luxury goods. CBIC's monitoring mechanism aims to prevent discrepancies and ensure fair market practices.
Official copy of the notification has been attached
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