FMCG firms prep to pass on GST tax cut from today, advise consumer awareness

Mumbai: In Navratri, nine -day festival and new beginnings, September 22, will indicate a reset on home budgets, because consumption tax rate deductions – from butter and paneer to hair oil and toothpaste – more affordable – more affordable.

At the beginning of this month, the government began to rationalize the goods and service tax (GST) rates in the country. As of September 22, the old 12% and 28% will be combined to 5% and 18% and NIL/Exempted. A new 40% plate has been added for luxury and ‘sin’ goods such as tobacco, dessert ventilated beverages and high -level cars.

Although the transition to new tax signs will last for a few weeks for new price tags to reach the store shelves, companies said that the benefit to consumers will start immediately and will align the festive cheers with lower bills.

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Companies are carrying out large -scale campaigns to spread awareness about new, low prices. However, since they still move to reviewed rates, consumers may find some products in the old GST rates, but they may ask retailers to demand revised prices starting on Monday.

India’s largest milk cooperative Amul has reviewed prices throughout more than 700 products, which offers full benefit to its customers since September 22. In the list, butter, GHEE, UHT milk, ice cream, cheese, panel, chocolates, oven products, frozen dairy products and potato snacks, intensified milk, peanut spread, malt -based drinks and so on.

“The new production has begun with new prices, but consumers will begin to benefit from new prices tomorrow (22 September). The size of our country, the market share we have among the inventories and categories in the market, the revised MRP shares will take some time to reach the market.” Mint.

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Depending on the product and Gram, the amul reduced prices La200. He has already conveyed changes in trade partners, including distributors, amul halls and retailers in India.

Mehta said that Amul used QR codes in stores with media campaigns to inform consumers about new prices. “Trade teams, distributors, everyone has been aligned with this change. The new production has already begun, but the delivery time may vary between the products. 90% of the transition will be completed within the next 15 days to one month.”

In the Sarita Vihar region of Delhi, Vikas Arara, owner of the Vikas Morning Store, said that billing from some large companies was temporarily stopped. “All new billing will be tomorrow. We expect reviewed prices. Companies in contact with the new price list.” He said.

ITC LTD announced that it will transfer the advantages of GST ratio rationalization to consumers, including price cuts in food categories.

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“We also provide information to all our trade partners about the subsequent changes to all our trade partners. Physical products carrying both old and new MRPs may be present in the market.” He said. “Consumers should refer to the updated MRP before making any purchasing.

The government’s decision to renew the GST will lead to lower tax rates in a number of daily use items. Hair oil, shampoo, toothpaste, toilet soap bars, toothbrushes and shaving cream will now attract 5% GST less than 18%. Similarly, the tax rate on butter, ghee, cheese, milk exhibitions, pre -packaged namkeens, bhujia and mixtures will drop from 12% to 5%.

The transition phase to the new ratio structure was challenging for most packaged consumer goods companies interested in thousands of stock retention units. Industrial organs called more simple rules to facilitate the transition to the reviewed rate.

In a notification on September 18, the Ministry of Consumer Affairs alleviated the compliance burden for companies and allowed the use of priced price stickers on goods to be used “voluntary” and waived the need to publish revised prices in two newspapers.

Dabur, the packaged property company, received consumers in local and national newspapers to inform lower prices. For example, the company said that the price of hair oil down the price. La235 La207 for a bottle of 450 ml; A 200 -gram package Dabur Red Toothpaste will sell from RS155 to RS135, while a 1 -liter real fruit juice package will now oppose the RS130 for the RS122. These prices will enter into force on September 22nd.

At the weekend, large e-commerce platforms hosted sales that offer ghst-related advantages in various goods. Currently, the online fashion retailer Myntra, who currently sells the festive season, used the slogan “GST Benefit” to promote lower prices in certain products.

Meanwhile, All India Consumer Products Distributors Federation (AICPDF) said that all existing stocks on the market are compatible with the review tax structure.

“Retailers already offer lower rates among product categories and enable consumers to benefit from the interruption of GST 2.0. In the last 10 days, the current stocks in the market are compatible with the tax structure of the QPS (quantity per store) schemes offered by FMCG companies,” he said.

Dhayryashil Patil, the National President of the Distributors organ of FMCG companies, made sure that the full benefit of GST will be transferred to time stocks with new MRP access retail shelves in the coming days without compromise.