From September 22, the government has implemented a major GST reduction, covering nearly 99% of household items.
This means daily essentials such as shampoo, pulses, butter, and toothpaste will now cost less.
Along with this, GST has also been cut on electronics, vehicles, and construction materials, making these high-value items more affordable.
The main goal is to ensure that the benefits of these cuts directly reach consumers and improve their purchasing power.
Strict monitoring and transparency rules
After the GST reduction, the government noticed that some e-commerce companies were not passing on the full benefit to buyers.
To tackle this, the Finance Ministry has asked Central GST officials to submit monthly reports on brand-wise prices of 54 important items.
E-commerce platforms have also been warned to maintain price transparency and avoid unfair profiteering. This step will protect consumers and ensure fair competition in the market.
Impact on e-commerce and the market
This strong government monitoring will pressure e-commerce companies to keep prices low, which may reduce their profit margins.
As a result, their financial performance and the stock market could face uncertainty and volatility.
However, for consumers, this move is positive — they will be able to buy essential and luxury goods at fair and affordable prices.
Boost to economic growth
The GST cut is expected to increase domestic consumption, thereby boosting the economy.
It will strengthen the purchasing power of the middle class and bring relief to small and medium businesses.
This reform is also likely to create more jobs and improve the country’s overall economic condition.
Prime Minister Narendra Modi welcomed the decision, calling it a big gift for the nation during the auspicious festival of Navratri.
