GST 2.0

Key Highlights:

• The Central Board of Indirect Taxes and Customs (CBIC) is monitoring price changes of various goods after GST rate cuts effective September 22, 2025.
• GST rates on food items, white goods, and other common-use items have been reduced to 5% or 18%.
• Field officers will compile monthly price change data and submit reports to the CBIC by the 20th of each month.
• The monitoring includes food, personal care, educational items, white goods, and construction materials.

Detailed Insights:

• The price monitoring exercise follows the GST Council's decision to move towards a two-slab structure of 5% and 18%.
• This wide-scale rate rejig is the first since the initial rollout of GST in July 2017.
• The National Anti-profiteering Authority (NAA) was previously established to ensure that the benefits of GST rate reductions are passed on to consumers.
• The Competition Commission of India (CCI) now handles all GST anti-profiteering complaints since December 1, 2022.
• The government aims to ensure businesses pass on the benefits of reduced GST rates to consumers through lower prices.
• The data collected will include the commodity name, brand, and maximum retail price (MRP) before and after September 22, 2025.

Key Concepts Involved:

• GST: An indirect tax levied on the supply of goods and services.
• CBIC: The nodal national agency responsible for administering Customs, GST, and other indirect taxes.
• Anti-profiteering: Measures to ensure businesses pass on the benefit of tax reductions to consumers.