Parliament Question: Monitoring of GST Reduction Benefits by CBIC

**Executive Summary** This document is the official response to Lok Sabha Unstarred Question No. 1360 regarding the monitoring of GST reduction benefits by the Central Board of Indirect Taxes and Customs (CBIC). The response confirms that CBIC is monitoring the pass-on of GST rate reduction benefits to end consumers, specifically for important commodities including packaged food items and medicines after September 22nd, 2025, and outlines measures taken to ensure compliance. **Key Points / Main Content** * **GST Rate Rationalization:** * The 56th GST Council meeting on 03.09.2025 rationalized GST rates. * CBIC is monitoring the prices of key commodities, pre- and post- September 22nd, 2025, to ensure benefits are passed to consumers. Inputs received suggest these benefits are being passed on. * **Trade Association Engagement:** * CBIC Chairman held meetings with trade associations and line ministries to address implementation challenges and emphasize the importance of passing on GST benefits. * Trade bodies and associations were instructed to ensure their members pass on the full benefit of rate cuts to consumers, effective September 22nd, 2025. * Public awareness campaigns were conducted through print and social media to inform about GST rate rationalization. * **Pharmaceutical Pricing:** * The National Pharmaceutical Pricing Authority (NPPA) clarified that manufacturers/marketing companies must revise the Maximum Retail Price (MRP) of drugs/formulations, including medical devices. * The Department of Consumer Affairs issued an advisory on September 18th, 2025, for manufacturers/packers/importers to voluntarily affix additional revised price stickers on unsold packages manufactured before September 22nd, 2025, provided the original price is visible. * Frequently Asked Questions (FAQs) regarding the same were uploaded on the CBIC website. * **Consumer Grievance Redressal:** * FAQs were prepared and uploaded on the CBIC website to guide consumers to call the National Consumer Helpline (NCH) or register complaints on the Integrated Grievance Redressal Mechanism (INGRAM) portal. * A Nodal Officer for CBIC was nominated to coordinate responses to issues raised on the National Consumer Helpline. * Appropriate action is being taken on complaints registered on the National Consumer Helpline when supported by documentary evidence. **Impact Analysis** **Stakeholder:** General Public (End Consumers) * **Impact:** They are to receive the benefits of reduced GST rates on essential commodities, including packaged food items and medicines, after September 22nd, 2025. They are also provided with avenues to report non-compliance through the National Consumer Helpline and the INGRAM portal. * **Action Required:** To monitor prices and report discrepancies or lack of benefit from GST rate reductions via the NCH or INGRAM. **Stakeholder:** Manufacturers/Marketing Companies (Specifically in the Pharmaceutical Sector) * **Impact:** Required to revise MRP of drugs/formulations, including medical devices, and affix additional revised price stickers on unsold packages manufactured before September 22nd, 2025. * **Action Required:** Revise MRP and affix stickers as per the advisory by the Department of Consumer Affairs. **Stakeholder:** Trade Bodies and Associations * **Impact:** Responsible for ensuring their members pass on the full benefits of GST rate reductions to consumers, effective September 22nd, 2025. * **Action Required:** Communicate and enforce the requirement for members to pass on the GST rate reduction benefits to consumers.

Key Entities Referenced