GST regime: Emami hair oil gets cheaper as company passes on tax benefits

Kolkata-based FMCG firm Emami today said it has reduced prices of its hair oil to pass on the GST benefit to consumers.

Under the new GST regime, common use products like hair oil, soaps and toothpaste have been kept under tax slab of 18 per cent against 22-24 per cent tax incidence through a combination of central and state government levies earlier.

"As a result of reduction in the tax rate of hair oil post GST, we have decided to pass on the benefits to our consumers and have dropped the price of Emami 7 Oils in One across SKUs for production done under GST regime," an Emami Ltd spokesperson said.

Under the new pricing, 50 ml of the brand will now be priced at Rs 30 as against Rs 32 earlier, 100 ml at Rs 55 compared to Rs 60 and the 200 ml bottle will now cost Rs 105 against Rs 115.

Another FMCG major Hindustan Unilever also reduced prices of select products on which the tax incidence have come down post GST implementations.

HULL had last week announced slashing of 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.

Besides, it is also offering 33 per cent extra in Dove bathing bar.

"HUL has already communicated that it shall pass on the net benefits from tax rates as per fair principles," a company spokesperson had said.

Under the GST regime, tax credit system is reducing the absolute margins available to modern trade retailer and they are asking to retain at VAT level.