Delhi High Court on GST:-The court imposed a fine of Rs 5 lakh on the company;Said GST is reduced then prices should be reduced, enlarging the packet is cheating the customer

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Delhi High Court On GST:-  Regarding GST reform, the Delhi High Court stated that if rates are reduced, the benefits should be reflected in price reductions to consumers. It is wrong for companies to simply increase package sizes or run promotional schemes while keeping prices the same.

The court also termed this action as fraud against the consumer. The Delhi High Court bench issued this order on September 23rd. It also imposed a fine of ₹5.5 lakh on the company.

Enlarging the package is cheating the customer.

The bench of Justices Pratibha M. Singh and Shail Jain stated that the purpose of reducing GST is to make goods and services cheaper. If prices remain the same and the quantity of the product is increased, without the customer’s consent, then this constitutes fraud. This practice defeats the very purpose of GST reduction and cannot be permitted. The court termed this as a restriction on consumer choice. The bench stated that not reducing prices cannot be justified on the grounds that the quantity has been increased or that there was a plan to justify the price increase.

The company was fined Rs 5.5 lakh.

The court was hearing a petition filed by the company. The company had challenged a 2018 order by NAPA (National Anti-Profiteering Authority). NAPA found that despite the reduction in GST on a product from 28% to 18%, the company had not passed on the benefit to consumers. Instead, it increased the price per unit by Rs 14.11 and increased the package size to 100ml. The court issued its order, upholding NAPA’s decision and ordering the company to deposit Rs 550,186 into the Consumer Welfare Fund along with 18% interest.

Major changes in GST from September 22nd

Although this case dates back to 2017, its significance increases in light of the recent GST reforms implemented by the GST Council. Effective September 22nd, 2025, the 12% and 28% slabs have been abolished. Now, only two slabs of 5% and 18% remain. Whereas luxury items like alcohol and alcohol will be taxed at 40%.