The Central Board of Indirect Taxes and Customs (CBIC) has written to field formations to track prices of over 50 items over the next six months and monitor their price trends for a smooth transition of the rate cuts under the Goods and Services Tax.
In all, the CBIC has listed 54 items for this purpose which include everyday staples like butter, cheese, ghee, shampoo, toilet soap bar, face powder, crayons; medical and health related items such as contact and spectacle lenses, drugs and medicines and diagnostic kits, as well as electronics such as air-conditioners, dishwashers and television sets as well as cement.
“…you are requested to kindly compile commodity-wise price data from the field formations and trade associations under your jurisdiction, prior to the rate change and after its implementation (that is pre and post 22nd September, 2025) for the next six months,” the CBIC said in an internal missive, adding that the first such report should be sent by September 30. Subsequent monthly reports have to be sent to the Board by the 20th of every month.
The move comes following the GST rate rationalistion by the GST Council on September 3 where it cut rates of over 450 items by rationalising the tax slabs into two main slabs of 5% and 18% along with a higher rate of 40%. Several daily use and essential items were brought into lower slabs of 5% and 18% in a bid to make them more affordable and boost consumption. The rate changes are applicable from September 22.
While an anti-profiteering authority has not been set up, CBIC Chairman Sanjay Kumar Agarwal had said that the Board would monitor prices to ensure that the benefit of the rate cuts are passed to consumers by companies. Several companies have already announced price cuts while others are working out strategies for repricing over concerns of the inverted duty structure.
Abhishek Jain, Indirect Tax Head and Partner, noted that the CBIC directive aligns with the broader narrative of the government, which has consistently emphasized the need for industry to ensure that the benefit of GST rate reductions is passed on to consumers. “With expectations of close monitoring by the authorities, businesses would be well-advised to proactively revisit their pricing and implement robust mechanisms, to ensure that the benefits of the rate revisions are appropriately and transparently passed on,” he said.