From shampoos and biscuits to medicines and cement, the Union Ministry of Finance has decided to closely monitor prices of 54 essential items following the latest round of GST rate reductions effective September 22, 2025.
The Revenue Department has directed field officers to compile monthly reports on commodity-wise price changes, comparing pre- and post-GST rate rationalisation data. The initiative is aimed at ensuring that the benefits of tax cuts are passed on to end consumers, amid concerns that industries may not fully transmit the reductions.
What Will Be Monitored?
The government's list includes a wide range of fast-moving consumer goods (FMCG), food, medicines, educational supplies, white goods, and cement. Some of the key items are:
- Food items: Condensed milk, butter, cheese, ghee, UHT milk (now nil GST), dry fruits, chocolates, biscuits, cookies, cornflakes, ketchup, jams, ice cream, cakes, and packaged drinking water bottles. GST on these has been slashed to 5% from 12-18%.
- Personal care: Toilet soaps, shampoo, hair oil, toothpaste, toothbrushes, talcum powder, shaving creams, and lotions now taxed at 5% instead of 12-18%.
- Educational supplies: Notebooks, exercise books, pencils, crayons, sharpeners, erasers and mathematical boxes.
- White goods & common-use items: TVs, ACs, dishwashers (GST reduced to 18% from 28%), tableware, kitchenware, toys, umbrellas, bandages, gauze, feeding bottles, thermometers and glucometers.
- Cement & medicines: Critical for both the construction and healthcare sectors.
Monitoring Mechanism
Field offices have been asked to treat the price-tracking exercise as a priority and submit the first report by September 30, 2025. Thereafter, reports must be sent to the Central Board of Indirect Taxes and Customs (CBIC) by the 20th of every month for the next six months.
The data will cover brand-wise commodity details, MRP before and after September 22 and insights from trade associations.
Why This Matters
This move follows the 56th GST Council meeting, which streamlined the tax structure into a broad two-slab system of 5% and 18%. While the government expects industries to pass on the benefit, it wants a data-driven check to reassure consumers.
Revenue Secretary Arvind Shrivastava recently highlighted that since GST's rollout in July 2017, around 704 profiteering cases worth Rs 4,362 crore were registered. However, most were in the first few years, and industry largely complied with passing on tax benefits.
With the anti-profiteering clause in GST law set to sunset from April 1, 2025, the government is relying more on administrative monitoring and industry engagement rather than penal provisions.
Shrivastava expressed confidence: "We do expect that since it is to the benefit of the businesses too, the transmission of benefits to consumers will happen eventually."
Consumer Impact
If implemented effectively, this monitoring could mean cheaper household essentials, personal care products, medicines, and packaged foods for millions of consumers. For industries, it is also an opportunity to strengthen consumer trust and compliance credibility under the simplified GST regime.
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