1. GST impact: Good news for consumers, FMCG companies to extend tax benefits, slash prices

GST impact: Good news for consumers, FMCG companies to extend tax benefits, slash prices

GST impact: FMCG companies are revising prices of their products after the implementation of GST and are extending the tax benefits to the consumers under the new tax regime.

By: | New Delhi | Updated: July 3, 2017 9:28 PM
gst impact, gst prices, gst launch, tax implemention, gst implementation, gst rates of food items, fmcg gst rates FMCG companies are revising prices of their products after the implementation of GST and are extending the tax benefits to the consumers under the new tax regime.(PTI)

GST impact: FMCG companies are revising prices of their products after the implementation of GST and are extending the tax benefits to the consumers under the new tax regime. The companies such as Patanjali, ITC, HUL and Marico are either slashing the prices of goods or increasing the grammage of the product on dispatches made from July 1 onwards. “The company is committed to pass on the benefits of reduction in effective tax rate to its consumers wherever applicable and has firmed up the price reductions,” Marico CFO Vivek Karve told PTI. He further added: The new prices will hit the market eventually”. “Effective steps are being taken to pass on the benefits to the consumer, wherever such benefits accrue due to the recently announced GST rates, an ITC spokesperson said.

Yesterday, HUL had reduced prices of some of its detergents and soaps, extending the tax benefits to consumers under the GST regime. The company had slashed the price of its detergent soap Rin bar of 250 gm to Rs 15 from Rs 18 and increased weight (grammage) of its Surf Excel bar costing Rs 10 to 105 gm from 95 gm at the same price. Companies are extending the benefits either in the form of price reduction or increasing the weight of the existing packet in the same price brackets.

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“We are passing on the entire tax benefits to the consumers. This would be in both ways – by slashing the price and increasing the grammage,” said a spokesperson of Haridwar based Patanjali. The GST council has put daily usage goods as bathing soap, hair oil, detergent powder, soap, tissue papers and napkins under 18 per cent tax slab.

  1. C
    Ca Dayaniwas Sharma
    Jul 5, 2017 at 9:18 am
    GST benifits are getting transferred to Indian customers. Great start India. Cheers
    Reply
    1. A
      Abasaheb patange
      Jul 4, 2017 at 9:32 pm
      GST IS VERY LUCKY FOR INDIA BECAUSE ONE TAX ONE INDIA. BUILD A BIG INDIA
      Reply
      1. A
        Abasaheb patange
        Jul 4, 2017 at 9:35 pm
        GST IS VERY GOOD
        Reply
      2. V
        V.K. Juneja
        Jul 4, 2017 at 5:53 pm
        Thanks to the companies who have passed the tax benefits to the consumers thanks to the new tax regime GST. Most of the articles will become cheaper. Thanks once again
        Reply
        1. R
          Rajveer Singh
          Jul 4, 2017 at 5:46 pm
          Only those those FMGC companies are considering ....... to slash the price whose products are being discarded by consumers.
          Reply
          1. N
            Nishant
            Jul 4, 2017 at 8:02 pm
            100percent write
            Reply

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