Quick Summary
Nearly a month after the government's latest GST rate cuts came into effect, consumers may still find several packaged goods being sold at old prices, especially in smaller retail outlets across India. While major FMCG companies have promptly revised their prices and publicised full pass-through of
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Small and unorganised retailers, many of whom are not registered under GST, are still selling existing stock at pre-cut Maximum Retail Prices (MRPs). They need to exhaust their old inventory before revising prices.
Officials and the Confederation of All India Traders (CAIT) expect the full pass-through of benefits to consumers by December, once existing stocks with old prices are sold.
The government cannot take legal action against unregistered retail stores as they are not part of the GST system. Only businesses above a certain turnover threshold are mandated to register.
The CBIC and state GST authorities are monitoring price movements. The Confederation of All India Traders (CAIT) is also running an awareness campaign to educate traders about revising their retail prices.
India has approximately 73 million unincorporated enterprises, with only 15 million registered under GST, highlighting the large scale of informality in the retail economy.
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