Officials from the Ministry of Finance have started field inspections at retail outlets and markets across the country, in a move to ensure that businesses pass on the benefits of the recent GST rate cuts to consumers. Ministry teams have reportedly been purchasing goods over the past few days to verify whether the revised rates are reflected in the final prices.
"Officials from the ministry are keeping a check on the market and buying products to see which businesses have passed on the rate cuts," said a senior official from the Ministry of Finance.
The inspections come in the wake of GST 2.0, which became effective from September 22. The GST Council had announced the new two-rate structure on September 3, giving businesses a two-week window to update maximum retail prices (MRPs) and ensure that cost benefits reach consumers. Businesses unable to immediately update MRP labels were instructed to implement the revised prices at the point of sale.
Despite the deadline, several retailers, particularly in the pharma and textile sectors, are facing challenges in passing on the reduced GST rates due to existing stock purchased at older rates. Many smaller retailers, especially those not registered under the GST system, are also adjusting gradually. The Ministry of Finance confirmed that as wholesalers and distributors begin selling products at the revised tax rates, retailers will eventually be able to pass the benefits on to consumers.
Officials further noted that the government is actively monitoring potential challenges that businesses may encounter under the new GST regime and exploring measures to address issues related to the inverted duty structure and dual-rate implementation.
The field inspections highlight the government's focus on ensuring transparency in GST 2.0, protecting consumer interests and encouraging compliance across sectors.
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