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Consumers to pay less for common items under GST: Paswan

Press Trust of India  |  New Delhi 

Consumers stand to gain from the rates announced for daily consumption items which will also help keeping a check on prices, Consumer Affairs Minister Ram Vilas Paswan said today.

FMCG firms Dabur and welcomed the rates on commonly used consumer items stating it would be beneficial but said more clarity is needed to understand overall impact.

"The move will benefit consumers at large as they will pay less. Free movement of goods will ensure easy availability and keep prices under check," Paswan told PTI.

On the first day of a two-day meeting of the Council, headed by Union Minister Arun Jaitley, it has been decided that commonly used products like hair oil, soaps and toothpaste will be charged with a single national sales or of 18 per cent.

These items at present attract 22-24 per cent incidence through a combination of central and state levies.

"The announcement of 18 per cent for soaps, toothpaste and hair is along expected lines and is certainly welcome. It will have a positive impact on our business," Ltd CEO Sunil Duggal said.

He, however, said this covered only about 20 per cent of the company's business and "we are still awaiting clarity on categories like health supplements, shampoos, packaged juices (among others)."

Expressing similar views, CEO (Finance, Strategy and Business Development) said: "It appears that the rate will benefit us and industry but we need to understand GST (rates) in entirety to comment on the subject."

Edible industry body Solvent Extractors Association Executive Director B V Mehta said as far as the sector is concerned there is no change in

"It is a no gain no loss situation for us although we had asked the Minister to classify edible in zero tax category," he said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, May 18 2017. 22:02 IST