Nearly 4000 GST Complaints in First Week of Reforms

Nearly 4,000 GST Complaints in First Week of Reforms: What Consumers and Businesses Should Know

The government's much-anticipated GST reforms (effective 22 September 2025) were introduced to simplify taxation and reduce consumer costs. But in just one week, the National Consumer Helpline (NCH) recorded nearly 4,000 complaints-highlighting confusion, pricing disputes, and compliance issues.

At Trakintax, we help businesses and consumers decode these changes. Here’s a simplified breakdown of the situation.

Key Highlights of Complaints

Total GST-related cases filed: 3,981

1. Grievances: 69%
2. Queries: 31%

Top complaint categories:

1. Milk & dairy products
2. Electronics (laptops, TVs, refrigerators, washing machines)
3. LPG and petrol pricing

Where Consumers Are Facing Issues

1. Milk Prices

1. Many complaints allege no reduction in pouch milk prices despite GST reforms.
2. Clarification: Fresh milk was always tax-free. Reforms only extended 0% GST to UHT (long-life) milk.

2. Electronics and Appliances

1. Complaints centered around e-commerce purchases.
2. GST changes:
3. TVs, monitors, ACs, dishwashers → Tax cut from 28% to 18%
4. Laptops, refrigerators, washing machines → Already taxed at 18% (no new reduction)

Product	Old GST Rate	New GST Rate
TVs, Monitors, Dishwashers, ACs	28%	18%
Laptops, Refrigerators, Washing Machines	18%	18%

3. LPG and Petrol

1. Domestic LPG: Still at 5% GST, no change.
2. Petrol: Remains outside GST framework.

Government Response

1. 1,992 cases sent to CBIC for review.
2. 761 cases forwarded to e-commerce/companies.
3. Central Consumer Protection Authority (CCPA) reviewing cases for possible class action.
4. Consultations with FICCI, ASSOCHAM, CII, RAI, CAIT and consumer groups to ensure compliance.

Strict action promised under the Consumer Protection Act 2019 for:

1. Overcharging
2. Not passing on GST benefits
3. Misleading GST billing

Why So Many Complaints So Fast?

1. Lack of clarity: Consumers expected price cuts in areas where GST was already nil.
2. Retailer delays: Businesses not updating invoices and pricing immediately.
3. Misinformation: Mixed media reports about “all milk” or “all electronics” getting cheaper.

How Trakintax Helps

At Trakintax, we make GST reforms easy to understand and implement:

1. Consumer Clarity: We explain which goods really get GST cuts (e.g., UHT milk, not pouch milk).
2. Business Support: Help companies update invoices, MRP labels, and GST returns correctly.
3. Complaint Guidance:If a retailer or e-commerce site wrongly charges GST, we guide on filing a complaint.
4. Tax Compliance: We assist with filing accurate GST returns and avoiding penalties.

Takeaway for Consumers and Businesses

1. Not all goods got a tax cut-check GST categories carefully.
2. Consumers: Always demand proper bills and cross-check GST applied.
3. Businesses: Update invoices, pass on benefits, and avoid anti-profiteering penalties.

GST reforms are designed to lower costs and boost transparency, but confusion is natural in early weeks. With expert help from Trakintax, both consumers and businesses can navigate these reforms confidently.

Mobile: 9358072247

Gmail: trakintax@gmail.com