Daily-use household items now become cheaper after the reduction of tax rates in 23rd GST Council Meeting. In the last meeting of GST Council, the tax rates have been reduced by the GST council nearly on 200 items.
Various FMCG companies such as ITC, Dabur, HUL, and Marico, have reduced the prices of their several products to pass on benefits of GST rate reduction to end consumers.
The GST Council Meeting which was held on 10th November, nearly on 178 items of tax rates were reduced from 28 percent to 18 percent. The new GST tax rates were implemented from 15th November.
ITC spokesperson said to PTI, “ITC has modified the price of its relevant products keeping in mind the applicable rates under the recent GST notification,” a company spokesperson told PTI.
Likewise, HUL spokesperson said: “We have reduced the price for Bru Gold coffee from Rs 145 to Rs 111 on a 50 gm pack. Any further price changes will be communicated in due course.” The spokesperson further added that HUL is committed to passing on the benefits of GST reduction to consumers.
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Similarly, Vivek Karve, CFO of Marico said that the changes in MRP have been made by the company across products categories including hair cream, hair gels, body care and deodorants and many more.
“While the new production shifts to new reduced MRP immediately, we are passing on the benefits on existing stocks either through stickering the products with reduced MRP or by providing additional discounts to our trade channel partners”, said Karve. He further added that the Dabur has communicated to all its partners to pass on benefits of tax reduction to end consumers.
Lalit Malik, CFO of Dabur said that “As per the GST Act, we have instructed all our trade and business partners to charge the customers at the existing stores according to the GST rates.”.
The previous day, Dabur India said that it has reduced the maximum retail price (MRP) of current stock across products including skin care, shampoos, home care and skin care by 9 percent. The company further said that it has revised the new MRP for the new production with immediate effect and these new products will come by next month.
