After the GST reduction, the Central Board of Indirect Taxes & Customs ( CBIC ) is ready to track the price. The Finance Ministry, while answering to the questions before the Lok Sabha, mentioned that the board is working with the trade bodies, etc, to ensure the benefits are passed to the final consumers.
The government, after the 56th GST council meeting, executed rate rationalisation in date 3 September 2025, has initiated a multi-layered system to ensure that companies do not retain the gains that emerge from lower tax rates.
CBIC, after the GST rate cut from 22 September 2025, has started tracking the costs of key commodities, particularly packaged food items and medicines, to check any mismatch between lowered GST rates and final retail prices, according to the Finance Ministry, in response to the questions raised by MP Anto Antony.
Based on the data obtained, CBIC notified that companies have passed on the tax reduction benefits to consumers. It was answered that the Chairman of CBIC held meetings with major trade associations and representatives of distinct ministries. Such industry bodies were asked to ensure that their members lessen the costs appropriately and transfer the GST rate reduction benefits to customers.
An advisory has been issued by the Department of Consumer Affairs on 18 September 2025 to prevent confusion for the goods manufactured before the rate reduction. Manufacturers and importers were allowed to place an additional changed MRP sticker on unsold products lying in stock, as long as the original printed price remained visible.
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Also, the Finance Ministry has executed the awareness campaigns through newspapers, social media, and FAQs on the CBIC website.
As per the ministry, the precise measure is being taken on complaints registered on the National Consumer Helpline when supported by documentary evidence. Therefore, the businesses need to ensure that the benefits are passed before the consumers.
