New Delhi: Consumer Affairs Secretary Nidhi Khare on Monday warned companies that they will face strict action if they fail to pass on the benefits of reduced Goods and Services Tax (GST) rates to consumers.

In an interview with NDTV Profit, Khare said firms not reflecting the revised GST rates in their prices would be considered guilty of “unfair practices.” She added that the government is fully equipped to monitor compliance.

“If we feel that the reduced GST has not been passed on, it will be treated as an unfair practice. We will take class action against companies that fail to pass on GST benefits,” Khare said, adding that consumer complaints will also be addressed promptly.

The warning comes as the new GST structure came into effect on Monday, reducing taxes on around 370 items, including essential goods and life-saving medicines. Finance Minister Nirmala Sitharaman had earlier said the reform aims to inject nearly Rs 2 lakh crore into the economy by boosting household spending power.

Everyday food items such as UHT milk, paneer, chapatis, parathas, butter, biscuits, namkeen, ketchup, and juices have become cheaper under the revised structure. Toiletries including soaps, shampoos, and hair oil, as well as stationery items like notebooks and pencils, now attract no GST.

Essential drugs for cancer and rare diseases have been fully exempted, while the GST rate on diagnostic kits and glucometers has been reduced to 5 per cent. Cement for housing has also seen a significant cut, dropping from 28 per cent to 18 per cent. Services such as salons, gyms, and yoga classes now fall under lower GST brackets.

However, items such as tobacco, pan masala, and aerated beverages remain in the highest tax category at 40 per cent. Large SUVs and MPVs have also been moved into the same bracket to offset revenue losses.

Officials said the reduction in prices of essentials, medicines, and household goods is expected to boost consumption and support economic growth in the coming months.

IANS