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FMCG major Dabur on Tuesday said it has cut prices of existing stocks across categories such as shampoos, skin and home care by 9 per cent following reduction in GST rates.
Yesterday, Central Board of Excise and Customs Chairperson Vanaja Sarna wrote to FMCG companies asking them to immediately revise MRP on all products in line with the latest reduction in GST rates.
The company has also revised the MRP (maximum retail price) of fresh production with immediate effect, which will hit the shelves by next month.
The average price reduction across categories, covering shampoo, home and skin care, range between 8 per cent and 10 per cent, Dabur said in a statement.
"The company is passing on the benefits on existing stocks by providing primary discount of 9 per cent to its trade partners," Dabur India Chief Financial Officer Lalit Malik said.
He further said Dabur had last week communicated to all business and trade associates to start charging the revised lower GST rates, wherever applicable, on all existing stocks.
The Goods and Services Tax (GST) rate was reduced on 178 items, including detergents, shampoos and beauty products, from 28 per cent to 18 per cent from November 15.
In her letter to all the major Fast-Moving Consumer Goods (FMCG) companies, Sarna pointed out the need to immediately revise the MRP on all the products for which the tax reductions have been announced by the GST Council, according a statement by the finance ministry.
GST rates on a number of items have also been reduced from 18 per cent to 12 per cent and from 12 per cent to 5 per cent.
Items on which tax rate has been cut from 28 per cent to 18 per cent include chewing gum, chocolates, coffee, custard powder, marble and granite, dental hygiene products, polishes and creams, sanitary ware, leather clothing, artificial fur, wigs, cookers, stoves, after-shave, deodorant, detergent and washing power, razors and blades, cutlery, storage water heater, batteries, goggles, wrist watches and mattress.
Tax rate on condensed milk, refined sugar, pasta curry paste, diabetic food, medical grade oxygen, printing ink, hand bags, hats, spectacles frame and bamboo/cane furniture has been cut from 18 per cent to 12 per cent.