The Union finance ministry is keeping a close watch on the passing on of the price cuts by the businesses to the end consumer, as lower GST rates came into force with effect from September 22, said government sources pointing out that strict action will be taken against the violators.

The move comes in the context of complaints being received on the on the toll free number issued by the government.

“GST is a major reform. While it is expected that it will take some time before the benefits get translated on ground, the government is doing a strict monitoring of the situation. In some cases, stocks with the small retailers may carry old price tag. But the government is monitoring the situation very closely,” said a government source close to the development.

“Genuine cases may be ignored but if the prices are not being passed on without any genuine reasons, strict action will be taken against the violators,” the source pointed out. It may be noted that thousands of complaints have been received from consumers on the helpline regarding price benefits not being passed on to them.

The Union Ministry of Finance on Tuesday said consumers can raise complaints regarding the new GST prices not being passed on through the national consumer helpeline.

The ministry said in frequently asked question that if benefits of the GST rate changes are not being received, queries/complaints can be raised. “Please call National Consumer Helpline (NCH) via toll free number 1915 or Whatsapp at 8800001915. Complaints/queries can also be registered on the Integrated Grievance Redressal Mechanism (INGRAM) portal,” said the ministry in the FAQ.

New GST rates have been implemented across the country with effect from September 22. Price reduction has happened on about 400 products across categories.

A host of items, including household items and common use goods, four wheelers, two wheelers have become cheaper as the two rate GST structure came into force on Monday. GST reform package was announced on September 3 by Finance Minister Nirmala Sitharaman, with a simplified two-slab structure (5% and 18%) and an additional 40% tax slab for sin goods. GST on small cars and two wheelers less than 350 CC has been reduced to 18% from 28%.

GST on common use items, hair oil, toilet soap bars, shampoos, toothbrushes, toothpaste, bicycles, tableware, kitchenware, other household articles have come down to 5%, from either 12% or 18%. Nil tax will be applicable on Ultra-High Temperature (UHT) milk, prepackaged and labelled chena or paneer; all Indian breads (Chapati or roti, paratha, parotta, etc). Food items such as packaged namkeens, bhujia, sauces, pasta, instant noodles, chocolates, coffee, preserved meat, cornflakes, butter, ghee will now have GST of 5%, compared with 12% or 18% earlier.