🏷️ Know Your Prices After GST: Your Right to Fair Prices

From 22nd September, the revised GST rates will come into effect, bringing lower taxes on several daily essentials and consumer goods. While this is great news, there’s an important question every consumer should ask: “Will companies actually pass on this benefit to us?” The answer lies in understanding your rights and how to check prices after the GST rate cut.

📜 Why Businesses Must Pass on the GST Benefit

Under Section 171 of the CGST Act, companies are legally required to pass on any benefit of a GST rate reduction to consumers. This means prices must be reduced to reflect the lower tax rate, businesses cannot keep the difference as extra profit, and failure to comply can lead to penalties by the National Anti-Profiteering Authority (NAA).💡 Example: In 2018, Hindustan Unilever (HUL) was fined ₹383 crore for not passing GST benefits on products like soaps and shampoos.

🛒 How to Check if the Benefit Reached You

Step	What You Should Do	Why It Matters
1. Check MRP Labels	Compare old MRP vs new MRP on products like rice, wheat, soaps, etc.	Companies must update packaging immediately after rate changes.
2. Review Your Invoice	Look at the GST column on your bill – it should reflect the new reduced rate.	Confirms the tax cut is applied at billing.
3. Track Brand Announcements	Check official press releases or notices in stores.	Transparency builds trust.

⚖️ Your Rights to Claim Overcharging

If you notice that prices haven’t dropped despite a GST reduction:

1. Collect Proof: Keep your bill, take photos of old and new MRPs, and note down dates.

2. File a Complaint: Visit the CBIC portal or approach the Anti-Profiteering Wing.

3. Follow Up: Track the status of your complaint online.💡 Tip: Even small overcharges matter – when multiplied across thousands of consumers, they result in huge illegal profits for companies.

🏭 Why Companies Sometimes Delay Passing Benefits

While the law is clear, here’s why companies don’t always act immediately:

• Rising Input Costs: They may adjust internally, citing increased raw material or fuel prices.

• Old Inventory: Stock purchased at higher tax rates takes time to clear before new MRPs are printed.

• System Updates: Smaller businesses often need extra time to update billing software and price lists.

• Strategic Decisions: Some brands partially pass on benefits to boost margins.

🧾 Real-Life Example

When GST on soaps dropped from 28% to 18%, brands like ITC and HUL announced immediate price cuts. However, investigations later revealed that some companies kept MRPs unchanged, leading to heavy fines and refunds ordered by the NAA.

✅ Quick Consumer Checklist

• Always check GST rates on your bill.

• Compare MRPs before and after the rate cut.

• Ask retailers to update billing systems.

• Report violations – your complaint can create change.

🌟 Conclusion

The GST rate cut is meant to ease the burden on households and boost consumption, but the benefit truly matters only when it reaches YOU. Stay alert, check your prices, and demand fair treatment. By exercising your rights, you help build a transparent and consumer-friendly economy.