Nearly 4,000 GST complaints filed in first week of reforms, says govt

The Consumer Affairs Ministry said the National Consumer Helpline received 3,981 GST-related complaints in the first week of reforms, mainly on milk pricing and electronics

The national consumer helpline (NCH) has received over 2,700 complaints since the rollout of goods and services tax (GST) reforms on September 22, with a large chunk related to pricing of milk products and electronics goods.

 

In total, the helpline has received 3,981 GST-related calls as on Thursday. Of these, 69 per cent were grievances and 31 per cent queries, the Ministry of Consumer Affairs, Food & Public Distribution said.

 

“The Department of Consumer Affairs, Government of India, is keeping a close watch on these dockets for their early resolution /clarification. The grievances have been escalated to the concerned brand owners/e-commerce entities for quick action. Further, CCPA has initiated a detailed review of these grievances for initiating class action, wherever necessary,” the Ministry said.

 

According to the ministry, a large portion of complaints were related to milk pricing, with consumers alleging that companies had not reduced retail rates after the GST changes. The Central Consumer Protection Authority (CCPA) clarified that fresh milk was already exempt from GST and that the recent reforms have extended this exemption to UHT milk as well.

 

Another set of complaints pertained to electronic goods purchased online, particularly laptops, refrigerators and washing machines. CCPA’s analysis revealed that the GST rate was reduced from 28 per cent to 18 per cent on TVs, monitors, dishwashing machines, ACs as part of GST reforms. Goods such as laptops, refrigerator, washing machine etc. are already at 18 per cent.

 

Consumers also raised grievances regarding LPG cylinders and petrol. The ministry clarified that domestic LPG continues to attract 5 per cent GST with no rate change, while petrol remains outside the GST framework.

 

Of the total grievances, 1,992 have been forwarded to the Central Board of Indirect Taxes and Customs (CBIC) and 761 to convergence companies for resolution. The CCPA said it was monitoring these cases for early action and will proceed against companies found to be overcharging or failing to pass on tax benefits.

 

The ministry added that consultations with industry associations such as FICCI, ASSOCHAM, CII, RAI and CAIT have been held to ensure compliance, alongside discussions with voluntary consumer organisations and state legal metrology departments.

 

“Wherever companies are found to have deliberately misled consumers by charging higher GST, or by not passing on the benefits of tax reductions in sectors where reforms do apply, strict action will be initiated under the provisions of the Consumer Protection Act 2019 and other applicable laws,” the Ministry added.