E-commerce, processed foods top sectors for GST-related consumer complaints: Consumer Affairs Secretary Nidhi Khare

E-commerce platforms and processed food products are among the top sectors attracting consumer complaints following the rollout of the new GST rate cuts, Consumer Affairs Secretary Nidhi Khare told CNBC-TV18.

Since the new GST regime came into effect on September 22, the National Consumer Helpline has received over 3,000 complaints, ranging from general inquiries about applicable GST to grievances about prices remaining unchanged despite the tax cuts.

“Some complaints concern prices remaining the same, meaning the reduced GST benefits are not being passed on to consumers,” Khare said.

The Consumer Affairs Department has strengthened the National Consumer Helpline, adding manpower and providing intensive training to staff on GST-related issues.

“We are also working on the back end to ensure readiness for class action initiations,” Khare added. Complaints related to alleged profiteering have already been escalated to the Central Board of Indirect Taxes and Customs (CBIC), while other grievances are being monitored directly by the department.

Khare highlighted that e-commerce remains the sector with the highest number of complaints, followed closely by processed foods and consumer durables. She urged consumers to be vigilant, advising them to check the MRP printed on packs and ensure invoices reflect the correct GST.

“If they notice any discrepancies, they should save the receipt and register their complaints with the National Consumer Helpline, 1915,” she said.

While companies are expected to pass on the full benefits of the GST reductions, Khare warned that those who fail to comply could face action under the Consumer Protection Act, including notices, product recalls, or reimbursement to consumers.

The new GST cuts have already boosted demand for some products. Car-makers like Maruti and Hyundai reported a surge in enquiries and bookings. However, consumer vigilance remains critical as the government continues to monitor implementation across all sectors.

Below is the verbatim transcript of the interview.

Q: What's been the progress with the implementation of the GST rate cuts, GST 2.0, since the 22nd of September?

Khare: First of all, it was important to understand that the reduction in GST should benefit consumers fully, and therefore, we held several rounds of discussion with industry associations, manufacturers, and state governments. We tried to make them aware that they need to get their systems adapted to the new GST. We also told them that if they continue charging the original, higher GST, they may face consequences. Therefore, it would be in their interest to inform consumers of the reduction in GST, and to the extent possible, use comparative charts showing what the article was priced at before 22nd September, its price afterward, and the GST now payable. We tried to ensure that industry associations also joined proactively in making sure that the full benefits of the reduced GST are passed on to consumers.

Q: What is the extent of complaints that you've received so far?

Khare: We have received more than 3,000 complaints. Some of them are inquiries, where people want to know the GST applicable on a particular commodity and such other things. But some complaints concern prices remaining the same, meaning the reduced GST benefits are not being passed on to consumers.

Some complaints relate to discounts on e-commerce platforms that do not fully reflect the reduced GST, and some indicate products have been marked up. Some of these complaints belong to CBIC, and we have directed them there for resolution. Others we are monitoring ourselves, and we are also taking them up for class action under unfair trade practices.

Q: Where are most of the complaints coming from? Which states?

Khare: There are different sectors where complaints are very common. E-commerce is one. Then there are some important brands with mass followings. Those brands also need to proactively engage with consumer complaints. We are escalating these complaints for their resolution.

Q: If we were to ask you about the top two or three sectors with the highest number of complaints, what would those be?

Khare: As I said, e-commerce is one. The second is processed food, which also has many complaints, and then some consumer durables.

Q: If we were to ask you what the Consumer Affairs Department is doing to monitor the implementation of the GST reform across the country, and how you are increasing capacity to deal with complaints?

Khare: First, we strengthened the National Consumer Helpline, 1915, by adding more manpower, because we understood that after September 22, there would be a deluge of inquiries and complaints. We also gave intensive training on GST issues and familiarised staff with the FAQs released by the Ministry. As I said, we are also working on the back end to ensure readiness for class action initiations.

Q: Could you detail what action businesses could face if they do not pass on GST benefits to consumers?

Khare: They could face action under the Consumer Protection Act as an unfair trade practice. Notices can be issued, they can be asked to discontinue practices, recall products, and reimburse consumers the amount due.

Q: You are working in close coordination with the Ministry of Finance. Could you give us a sense of how inter-ministerial groups are monitoring GST implementation on a day-to-day basis?

Khare: All concerned ministries have been engaged virtually on a day-to-day basis, providing inputs from different sectors. For example, there may be concerns regarding pharmaceuticals and medicines. We are keeping in touch with all concerned ministries.

Q: What kind of expectation does the government have regarding the quantum of benefits passed on to consumers as a result of these GST reductions during Navratri?

Khare: While the Department of Consumer Affairs does not have that data, I think the Ministry of Revenue would be better positioned to assess it.

Q: What kind of questions should customers be asking, especially on e-commerce platforms or in retail outlets, to protect themselves, and what should they look out for in terms of pricing?

Khare: Consumers should be aware of the MRP printed on the pack, as it includes GST. They should check what GST is charged and ensure the invoice reflects it. If they notice any discrepancies, they should save the receipt and register their complaints with the National Consumer Helpline, 1915.

Q: Out of the 3,000 complaints received so far, have certain complaints already been resolved or addressed through penalising or other action?

Khare: When a consumer registers a complaint, it is immediately escalated to the concerned brand owner, manufacturer, or e-commerce platform, and they are given time to respond. E-commerce platforms respond very quickly, so we get a resolution usually within a week to ten days. On average, it takes about 18 days to resolve complaints. So far, complaints related to profiteering have been sent to CBIC, and those where GST has been incorrectly charged and consumers are seeking full benefits have been sent to the concerned brand owners.Read about our editorial guidelines and ethics policy