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GST Reforms 2025: Govt Clears Confusion Over Milk, LPG, Electronics & Petrol Prices After 3,981 Complaints
Since the rollout of GST Reforms 2025, thousands of consumers have expressed confusion over pricing in various sectors. The Department of Consumer Affairs has now stepped in, clearing up misunderstandings and ensuring that GST benefits are passed on fairly to consumers.
New Delhi, 2 October 2025: The launch of Next-Generation GST Reforms 2025 on 22nd September has seen a massive influx of consumer feedback - with 3,981 GST-related complaints lodged through the National Consumer Helpline (NCH). A significant number of these complaints were related to confusion surrounding milk, LPG, electronics, and petrol prices after the reforms.
In response, the Department of Consumer Affairs and Central Consumer Protection Authority (CCPA) have clarified key issues and reassured consumers about the implementation of tax changes.
Key Issues Addressed by the Government:
1. Milk Pricing: No GST on Fresh or UHT Milk
Consumers were under the impression that after the GST reforms, milk prices would decrease. However:
- Fresh milk is already GST-exempt.
- UHT milk (Ultra-High Temperature milk) was also exempted from GST under the recent changes.
Thus, the price reduction many hoped for was not possible because milk was never taxed to begin with.
2. Electronics: GST Already Adjusted for Gadgets
A common grievance revolved around electronics, with many consumers wondering why items like laptops, refrigerators, and washing machines weren’t reflecting the expected price cuts.
- Reality check: These products were already taxed at 18% GST before the reforms, so there’s no further reduction needed.
- The real tax reductions applied to TVs, monitors, ACs, and dishwashers, which saw a drop in GST from 28% to 18%.
CCPA is actively following up with manufacturers and online retailers to ensure these adjustments are being passed on.
3. Domestic LPG: GST Rate Unchanged
- Another cluster of complaints centered around LPG cylinders. Consumers wanted to know why there wasn’t a drop in prices after the reforms.
- Government clarification: Domestic LPG continues to be taxed at 5% GST. There has been no change in the GST rate.
LPG pricing is impacted by several factors such as global crude oil prices, government subsidies, and distribution logistics, beyond just the GST.
4. Petrol: Outside the Scope of GST
Many consumers also complained about petrol prices not dropping after GST reforms. However, the government clarified:
- Petrol is not covered under GST.
- Price fluctuations depend on central and state taxes, international crude oil prices, and market factors, rather than GST.
What the Government is Doing About It:
- 1,992 GST-related grievances have been forwarded to the Central Board of Indirect Taxes and Customs (CBIC) for appropriate action.
- 761 complaints have been referred in real-time to e-commerce platforms and brands for quick resolution.
- The CCPA is closely monitoring each case, and any deliberate violations of consumer rights (like overcharging) will result in strict penalties under the Consumer Protection Act, 2019.
Industry Consultations and Collaboration:
Between 11th-24th September 2025, the Department of Consumer Affairs hosted consultations with several major industry bodies, including:
- FICCI, ASSOCHAM, CII, RAI, CAIT
- Voluntary Consumer Organizations (VCOs)
- State Legal Metrology Departments
These discussions aimed to ensure that businesses pass on the benefits of reduced GST to consumers, especially in terms of MRP (Maximum Retail Price) on packaged goods.
How to Report Your GST Grievances:
Consumers are encouraged to report any issues related to GST pricing or other goods/services via the National Consumer Helpline (NCH), which operates through:
- Toll-Free Number: 1915
- Website: consumerhelpline.gov.in
- Mobile Apps: NCH App, UMANG
- WhatsApp & SMS
The NCH is available in 17 languages, making it easier for all consumers to file complaints.
Govt’s Commitment to Consumer Protection:
Under the leadership of Secretary Nidhi Khare, the Department of Consumer Affairs is committed to ensuring that GST benefits are passed on to consumers. The government has made it clear:
"We will take strict action against businesses that mislead consumers by charging higher GST rates or not adjusting prices to reflect the benefits of reforms."
Key Takeaways:
The GST Reforms 2025 are designed to simplify and rationalize tax rates. While confusion and misunderstandings are inevitable during such large-scale reforms, the CCPA and the National Consumer Helpline are dedicated to protecting consumers and ensuring that businesses comply with the new regulations.
If you’ve faced price discrepancies or GST-related issues, don’t hesitate to report it. The government is actively addressing complaints to ensure that every consumer gets the benefits they are entitled to.
(source-pib)
Pralhad Joshi wrote on his X,
The Department of Consumer Affairs, through the National Consumer Helpline, has addressed 3,981 GST-related queries & complaints.
— Pralhad Joshi (@JoshiPralhad) October 2, 2025
The CCPA is closely monitoring grievances—ensuring transparency, protecting consumers from misinformation and guaranteeing that the benefits of GST… pic.twitter.com/G1IAotyS1D
#GSTReforms2025#ConsumerAwareness#ConsumerRights
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