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India’s festival season tax relief has delivered a surge in demand, but it has also triggered a spike in consumer complaints, with e-commerce platforms and processed foods topping the grievance list.
Since the new GST regime took effect on September 22, the National Consumer Helpline (NCH) has received over 3,000 complaints, according to Consumer Affairs Secretary Nidhi Khare. While many were general queries on GST applicability, a significant number flagged that retail prices remain unchanged despite tax cuts.
“Some complaints concern prices remaining the same, meaning the reduced GST benefits are not being passed on to consumers,” Khare told CNBC-TV18.
E-commerce has emerged as the single largest source of grievances, followed closely by processed foods and consumer durables. Officials said the concern is twofold: price discrepancies on platforms and packaged goods not reflecting new MRPs.
The Consumer Affairs Department has beefed up NCH capacity with additional manpower and GST-specific training. Complaints alleging profiteering have been escalated to the Central Board of Indirect Taxes and Customs (CBIC), while others are being tracked internally.
Khare urged consumers to cross-check MRPs and invoices, and report mismatches by calling 1915. Companies, she stressed, are legally obliged to pass on tax benefits.
“Firms failing to comply could face action under the Consumer Protection Act, including notices, product recalls, or reimbursements,” she warned.
Even as complaints mount, GST cuts are lifting demand in big-ticket categories. Carmakers such as Maruti Suzuki and Hyundai reported a spike in enquiries and bookings after tax reductions made vehicles more affordable.