New Delhi, 18 Oct

Finance Minister Nirmala Sitharaman on Saturday stated that the benefits of GST reforms are being passed on to consumers in the form of reduced prices.

Addressing a press conference on GST Bachat Utsav, she said the government has been monitoring price cuts in 54 items across the country since the lower GST rates came into effect on 22 September.

"GST rate reduction has increased purchases. The consumption drive will continue," Sitharaman said.

"We are convinced that on every such item, benefits are being passed on by companies," she added.

In case of some items, businesses have passed on to consumers higher than the weighted-average GST rate cut benefits.

Sitharaman said the Department of Consumer Affairs has received 3,169 complaints related to non-reduction in prices commensurate with the GST cut. Of this, 3,075 complaints have been forwarded to nodal officers in the Central Board of Indirect Taxes and Customs (CBIC). A total of 94 complaints have been resolved by the department.

The department will enable a functionality on the grievance reporting portal so that the complaints can be forwarded to the chief commissioners of the respective zones from where complaints have come in, the minister said.

New lower GST rates kicked in from 22 September, resulting in a slashing of prices of as many as 375 items ranging from toothpaste and shampoo to cars and television sets.

Tax rates of 5, 12, 18, and 28 per cent have been clubbed into two rates of 5 per cent and 18 per cent, resulting in a reduced price of 99 per cent of daily use items.