Know how you can find out if retailers stealing GST discount

Department for Promotion of Industry and Internal Trade (DPIIT) directs Retailers Association of India to treat GST cut as GST discount

• The Union commerce ministry directed physical retail chains to prominently show discounts arising from the upcoming GST rate rationalization, effective 22nd September.
• In a directive to the Retailers Association of India, the Department for Promotion of Industry and Internal Trade (DPIIT) stated that retailers need to reflect the GST cut as a “GST discount” on receipts and bills, with greater visibility for high-impact products.
• “The ministry has urged retailers to use posters, flyers, and advertisements — across print, television, digital, and their own store networks — to convey the benefit to buyers,” the directive stated.
• The DPIIT further suggested the retailers to monitor and highlight sales data during the festive season to showcase the impact of the tax change.
• Officials are of the belief that this move will encourage more footfalls and the benefit of lower taxes will be transparently passed on to the consumers.
• The GST rebuild will see the four-tier structure streamlined into two slabs – 5% for essential and commonly used goods and 18% for the rest – taking the place of the 12% and 28% categories.
• Nearly 400 products like shampoo, soap, and groceries to cars, tractors and air conditioners, will be cheaper and more affordable.

How will the new GST structure impact us?

• Staple food items like bread, milk, and paneer will be exempted from taxes under the new system which is aimed at boosting consumption and easing inflation pressures.
• The modifications are expected to provide a strong push to retail demand during the Navratri to Diwali festive cycle.
• “Despite prevailing headwinds, store managers indicated a demand uptick in July-August 2025, supported by a successful end of season sale, which eventually flattened. They anticipate a strong recovery starting late September 2025 to December 2025, driven by GST cuts, festivals and weddings,” stated Motilal Oswal in a report on the retail sector trends.

Editor’s Note

• With the new GST structure to roll out circa 22nd September, it will be interesting to see how the festive season pans out for the ordinary people. Along with the directive to the Retailers Association of India by the Department for Promotion of Industry and Internal Trade (DPIIT) stating that retailers need to reflect the GST cut as “GST discount” will provide more clarity to consumers.