Centre orders price monitoring of 54 items after GST cut
What's the story
The Central Board of Indirect Taxes and Customs (CBIC) has ordered a monitoring of the prices of 54 common consumer goods. The move comes in the wake of recent cuts in Goods and Services Tax (GST) rates. The items under surveillance include butter, cheese, cornflakes, toilet soap, toothpaste, contact lenses, stationery items as well as appliances like air conditioners and TVs.
Monitoring process
Monthly price changes to be tracked
The CBIC has directed its officials to monitor monthly price changes from both field offices and industry associations. The prices of these goods will be tracked before and after the implementation of new GST rates on September 22, 2025. The first compliance report is due by September 30, with the monitoring period extending over six months.
Tax reform
Overhaul by GST Council
The CBIC's directive comes after a major overhaul by the GST Council, which scrapped the 12% and 28% tax slabs. Nearly 400 goods and services have seen revised rates, with 375 getting cheaper. Only 13 items, mostly sin and luxury goods such as tobacco, remain in the 40% slab. Commerce and Industry Minister Piyush Goyal called this massive reduction in indirect taxes "the biggest reform that the country has seen since independence."
Corporate impact
Retail price cuts expected
The removal of the compensation cess for all but tobacco products is expected to lead companies to announce retail price cuts across categories. Although the government has urged industries to comply with these changes, it is unlikely to invoke anti-profiteering provisions this time around, easing corporate concerns. The move is expected to bring relief ahead of the festive season, with analysts calling it a "Diwali gift for consumers."