The government has sought responses from some big e-commerce players for raising prices of a few items even after GST cuts came into effect. The new goods and services tax regime, which is aimed at lowering prices and reduce the tax burden kicked in on September 22. Reportedly, prices of more than 50 products are under review by the government. The government has also spoken to some major e-commerce companies in recent days, making its displeasure known.
"An e-commerce major advertised higher prices post GST rate cuts…citing a technical glitch but the prices were corrected later," a sources told Money Control. "We await inputs by the end of the month on prices of over 50 items which are being monitored by field formations across India," an official had said.
"However, we are constantly monitoring the price levels, as we wish to ensure the price cut benefits are passed on to the consumers," the source further added.
The source explained that different ministries are monitoring price changes across sectors to curb profiteering.
The government expects the impact of rate cuts to be more visible during the ongoing festival season, when consumer purchases typically peak. Reforms of this scale take time to fully stabilise, and enforcement measures will only be considered once sufficient evidence from field reports is available, officials said.
