Milk, electronics, LPG lead GST-related consumer grievances on NCH

NEW DELHI — As the National Consumer Helpline (NCH) receives complaints around the GST 2.0 implementation by retailers and e-commerce platforms, a major share of grievances pertain to milk pricing, followed by electronics goods, LPG and petrol, according to the government.

A large number of consumers approached NCH with the belief that following the GST reform, milk companies were required to reduce the prices of fresh milk.

Consumers complained that milk companies were continuing to charge pre-reform prices, thereby denying them the benefit of the reduced GST rate.

However, after examining the issue, the Central Consumer Protection Authority (CCPA) has found that fresh milk is already exempt from GST. The recent GST rate reforms has exempted ultra-high temperature (UHT) milk too.

Another substantial category of complaints related to electronic goods purchased through e-commerce websites.

Consumers raised grievances that laptops, refrigerators, washing machines, and other consumer durables purchased online were still being charged at pre-reform GST rates, and that no benefit of tax reduction was being passed on to them.

CCPA’s analysis revealed that GST rate was reduced from 28 per cent to 18 per cent on TVs, monitor, dishwashing machines, ACs as part of GST reforms. Goods such as laptops, refrigerator, washing machine etc are already at 18 per cent.

A third cluster of grievances concerned domestic LPG cylinders. Consumers reported that the prices of LPG had not decreased following the reforms.

CCPA has clarified that domestic LPG has continued at the rate of 5 per cent GST with no change in the applicable GST rate on LPG for household domestic consumers.

A further set of grievances emerged in relation to petrol prices. Many consumers lodged complaints alleging that petrol prices had not fallen. CCPA has categorically clarified that petrol is outside the purview of GST.

“Consumers’ expectation of lower petrol prices reflects a misunderstanding of the scope of GST reforms, rather than any non-compliance by retailers or oil companies,” according to the Ministry of Consumer Affairs.

In view of the implementation of the Next-Generation GST Reforms 2025, the NCH has so far received 3,981 GST-related dockets, comprising 31 per cent queries and 69 per cent grievances.

The grievances have been escalated to the concerned brand owners and e-commerce entities for quick action.

Further, CCPA has initiated detailed review of these grievances for initiating class action, wherever necessary.

Out of the total, 1,992 GST-related grievances have been forwarded to the Central Board of Indirect Taxes and Customs (CBIC) for appropriate action, while 761 grievances have been referred in real-time to the concerned convergence companies for resolution.

The broader message that emerges from this first week of GST-related grievance reporting is that consumers are actively and enthusiastically participating in the grievance redressal system, which reflects both awareness and trust and trust in the institutional mechanisms created by the Department of Consumer Affairs