New Delhi, Sept. 22 -- As the biggest reform in India's goods and services taxes rolls out today, the Centre will be monitoring whether companies actually pass on the tax cuts or keep the gains to themselves.

The government will keep a "discreet oversight" on how the tax cuts unfold, but avoid any intrusive use of administrative machinery, two persons privy to official discussions said. However, it will not hesitate to put in place a formal mechanism if corporate profiteering manifests.

The Centre is optimistic that businesses will honour their public commitments to reduce prices, but the option of a formal enforcement mechanism has not been ruled out if consumers fail to see the relief, the people cited above said on the condition of a...