E-commerce marketplaces are under the government's scanner for allegedly failing to pass on the benefits of recent GST rate cuts to consumers. The move follows a spate of consumer complaints that prices of several items on top online platforms were not reduced in line with the revised tax rates.
Festive Sales Under Scrutiny
The revised GST norms, which came into effect from September 22, 2025, coincided with the launch of festive sales across leading platforms such as Amazon and Flipkart. While many categories saw lower tax rates, complaints poured in that some items continued to be sold at higher prices or even witnessed hikes, despite the GST reductions.
Authorities said that monthly price monitoring reports have been mandated for 54 common products including butter, toothpaste, shampoo, tomato ketchup, jams, ice cream, and air conditioners. "We are closely monitoring e-commerce platforms to ensure price benefits of GST cuts are passed on to consumers," a government source said.
Over 3,000 Complaints Received
Consumer Affairs Secretary Nidhi Khare confirmed that the National Consumer Helpline has logged over 3,000 GST-related complaints since the changes took effect. Some cases have already been forwarded to the Central Board of Indirect Taxes and Customs (CBIC) for further investigation.
Platforms Respond
E-commerce giants have responded, highlighting measures taken to ensure compliance.
A Flipkart spokesperson said:
"Flipkart has sensitised seller partners, provided simplified dashboards with automatic GST updates, and launched a dedicated storefront, GST Bachat Utsav, to highlight tax-linked savings. We have also conducted webinars and training sessions for sellers."
Meanwhile, Amazon India said:
"While sellers are responsible for applying correct GST rates, Amazon has proactively supported them with tools and automatic updates in select categories. During the Amazon Great Indian Festival, sellers have already passed on savings worth over Rs 100 crore in GST benefits to customers."
Government's Next Steps
Officials indicated that price monitoring will continue throughout the festive season to ensure anti-profiteering compliance. Platforms found violating the norms may face further scrutiny under the Consumer Protection and GST framework.
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