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E-commerce firms under scrutiny for raising prices instead of passing GST cuts

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New Delhi: The government is keeping a close watch on e-commerce platforms and has pulled up some firms for raising prices of some packaged items after the rollout of the two-slab Goods and Services Tax ( GST) structure, an official said Monday.

"There were complaints about some ecommerce platforms not passing on the GST cuts, "the official said, adding that authorities are keeping a close tab on whether companies had passed on tax cut benefits to consumers or not and were informally taking it up with them.

One of the e-commerce platforms cited 'technical glitches' when discrepancies in pricing pre- and post-GST reduction were pointed out.


"The government is keeping a strict vigil," the official added.


Consumer affairs secretary Nidhi Khare Monday said the government's National Consumer Helpline ( NCH) has received close to 3,000 complaints related to GST since the implementation of reduced taxes.

Khare said the ministry is analysing the complaints for use of dark patterns or use of such discounts which are misleading or using misleading advertisements and constitute unfair trade practices where benefits of reduced GST has not been passed on to the consumers.

"If there are too many complaints from different sectors, they will be qualified for a class action. We are keeping a watch on this. We will surely take notice of anything where consumers are getting cheated with misleading discounts," she added.

India rolled out a two-tier GST with 5% and 18% rates from September 22 instead of four rates.
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