Central Government to Monitor Prices of Certain Items After GST Reform
The revised GST rates under GST 2.0 will be applicable from September 22, 2025. With this reform, the officials from the Central Board of Indirect Taxes and Customs (CBIC) will be watching the movement of the price of 54 commonly used goods for the next six months so that the benefits of lower GST are passed on to the consumers.
The GST Council had recently announced the two-slab GST system, removing the slab rates of 12% and 28%. It also reduced the rates on around 400 goods and 375 services to provide relief to the common man. While the compensation cess has been removed, tobacco-related products and luxurious goods would be taxed at 40%.
The govt is keeping an eye on companies and industry bodies to make sure that the prices of goods and services are reduced after the GST Reforms. The board has directed the officers to collect monthly price data from local offices and industry groups. They will compare prices before September 22 with those after the GST cut. The CBIC has asked the officers to submit the first report on this by September 30.
The Commerce and Industry Minister, Piyush Goyal, while speaking at the annual meeting of the Automotive Components Manufacturers Association, appreciated the huge tax reduction, saying that this will be the biggest reform that the country has ever seen since independence.
He urged the companies to pass on the benefits of GST reforms after the council had put all auto parts in the 18% slab, which were earlier 28%.
Many companies are cutting their prices on their own, and this time, there is no worry about the government taking action under anti-profiteering rules.
