Consumers at Receiving End as GST Reduction Benefits Are Not Passed On

Silent Price Changes Hit Daily Shoppers

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GST reduction benefits not passed on to consumers

A quiet change is spreading across kirana stores in cities and villages alike. Most shoppers do not notice it at first. Yet, over time, it hurts household budgets.

A ground report from markets in Kanpur, Lucknow, and eastern Uttar Pradesh shows a clear pattern. Small consumer packs are shrinking. However, prices remain the same.

Smaller Packs, Same Price

Products once sold at ₹5 and ₹10 are now replaced with packs marked ₹4.5 and ₹9. These include biscuits and other daily-use items.

However, shopkeepers continue to charge ₹5 and ₹10. Since most buyers do not check the printed MRP, the extra amount goes unnoticed.

As a result, consumers pay more without realising it.

How Price Rounding Affects Consumers

In small-value purchases, price rounding is common. Yet, this rounding benefits the seller, not the buyer.

The difference per pack looks minor. Still, it adds up over weeks and months. This impact is stronger for families that depend on small packs for daily needs.

Therefore, the burden quietly shifts to the consumer.

GST Reduction Benefits Fail to Reach Buyers

This trend raises serious concerns, especially after the GST reduction on packaged food items. The tax cut aimed to improve affordability.

However, the GST reduction benefits are not reaching consumers fully. Instead, shoppers get lower quantity at the same price.

This situation reflects silent inflation, where value drops but prices stay unchanged.

Rural and Semi-Urban Markets Most Affected

The issue is more visible in rural and semi-urban areas. Awareness of MRP rules is low in these regions.

Enforcement also remains weak. Although selling above the printed MRP is illegal, the practice continues in many markets.

Over time, this can damage consumer trust and weaken confidence in tax reforms.

Why Strong Action Is Needed

Policymakers stress transparency and fair pricing. Yet, such market practices create distortions.

Unless authorities step in, GST reduction benefits may continue to dilute at the retail level. At the same time, consumers will keep paying more for less.