The government is considering using the Legal Metrology Act, 2009, to crack down on businesses that may not be fully passing on the benefits of the Goods and Services Tax (GST) rate cuts to consumers. Government sources told Moneycontrol that instances have been noticed where companies appear to be adjusting the base price of goods in a way that reduces the impact of the GST reduction.

While the Central Board of Indirect Taxes and Customs (CBIC) can verify whether the correct GST rate is applied, the challenge arises when companies tweak the base price of goods. A government source explained, “It is not a GST enforcement issue but falls under the Legal Metrology Act. GST covers only the tax component, not the product value. As long as the correct GST rate is applied, businesses are compli

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