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GST impact: FMCG firms to extend tax benefits to customers, slash prices

Patanjali, ITC, HUL, Marico have either slashed prices or increased grammage of products

Press Trust of India  |  New Delhi 

FMCG

companies are revising prices of their products after the implementation of and are extending the benefits to the consumers under the new regime.

The companies such as Patanjali, ITC, and 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 rate to its consumers wherever applicable and has firmed up the price reductions," 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 rates," an spokesperson said.

Yesterday, had reduced prices of some of its detergents and soaps, extending the benefits to consumers under the 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 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.

"We are passing on the entire 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 council has put daily usage goods as bathing soap, hair oil, detergent powder, soap, tissue papers and napkins under 18 per cent slab.

First Published: Tue, July 04 2017. 01:46 IST
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