gst-rejig-cbic-to-closely-watch-prices-of-54-commonly-used-items

After the GST Council’s big Goods and Services Tax (GST) reforms announcement last week, and the tax cuts set to come into effect on September 22, officials from the Central Board of Indirect Taxes and Customs (CBIC) said they will keep an eye on the prices of at least 54 items of everyday use for the next six months to ensure that the GST rate cut benefits are being passed on to customers. 

The CBIC, in its latest advisory, asked its field officers and industry bodies to compile monthly records that compare prices of items before September 22, 2025, and after the said date, when new prices are levied. The first such report is to be furnished to the body before September 30, it added.

With the GST Council slashing down two tax slabs to bring down the total number of tax categories to two – the 5 per cent and 18 per cent tax brackets – products including cheese, paneer, milk, butter, cornflakes, soaps, toothpastes, medicines, contact lenses, and ACs are set to become cheaper, which the CBIC will keep tabs on.

 

Also Read: CBIC to take up complaints against non-reduction in prices

On Friday, while addressing the annual meeting of the automotive components manufacturers association, the commerce and industry minister, Piyush Goyal, urged companies to pass on the benefits after the GST Council rejig comes into force next week.

"This massive reduction in indirect taxes... is going to be the biggest reform that the country has seen since independence," he said.

The rate cuts in almost 375 items have been hailed by the citizens and industry. Similarly, a compensation cess is to be done away with for all items other than tobacco products, with only 13 items now remaining in the 40 per cent ‘luxury’ slab for sin and luxury goods.

While the government has been nudging companies and industry bodies to ensure that the prices are lowered in line with the reduction in rates, companies have started separately announcing price reductions, although there is no fear of the governments using anti-profiteering provisions this time.