FMCG retailers bag big discounts ahead of GST rate shift on September 22

Major fast-moving consumer goods (FMCG) companies are offering retailers quantity purchase schemes, providing a 4-20 per cent discount on a range of products, ahead of the implementation of new goods and services tax (GST) rates from September 22.

 

These discounts are valid until September 21, as firms seek to manage stock and adjust to the revised tax structure.

 

Hindustan Unilever (HUL), Procter & Gamble India (P&G India), Dabur India, L’Oreal India, and Himalaya Wellness are focusing on products where GST rates are falling from 18 per cent to 5 per cent, and 12 per cent to 5 per cent. Key items include shampoos, toothpaste, soaps, and more.

 

ITC is also offering discounts to retailers, according to a person in the know.

 

HUL is running a scheme called ‘Retailer Bonanza’ until September 20, providing an additional 4 per cent discount on soap brands such as Lux, Lifebuoy, Dove, Hamam, Liril, and Pears, and 7 per cent on Moti soaps — applicable for stock keeping units (SKUs) priced above ₹15. HUL is offering 10-20 per cent discounts on shampoos, and 7-11 per cent on hair oils.

 

In skincare, HUL is giving an 11 per cent discount on Ponds and Lakme products (for SKUs over ₹10), and 8 per cent on Pepsodent and Close Up (SKUs over ₹20). Discounts of 5 per cent on health food drinks and 7 per cent on beverages apply to higher-priced SKUs.  

 

“At HUL, our priority is to deliver superior value and accessibility to consumers. In line with this, we remain committed to supporting our channel partners and the broader trade ecosystem, especially during transitions such as the implementation of GST changes. Equally for consumers, we will pass on the benefits of GST rate changes across a wide range of products from September 22, 2025, onwards,” a company spokesperson said in an email.

 

Dabur India has provided around 10 per cent higher incentives to retailers until September 21 for Dabur Red Toothpaste and Meswak, which will attract the reduced 5 per cent GST rate.

 

P&G India, the maker of Ariel detergent and Whisper sanitary napkins, introduced a “Never Before GST Special Offer”, valid until September 21, offering a 10 per cent additional discount on products shifting from the 18 per cent to 5 per cent GST slab. These include Head & Shoulders, Pantene, Oral-B, Gillette, and Old Spice brands.

 

The company is also offering a 5 per cent discount to retailers on products moving from the 12 per cent to 5 per cent slab, including Pampers and Vicks.

 

Personal care major L’Oréal India has informed trade partners that GST on shampoos and face powders will fall from 18 per cent to 5 per cent from September 22, while invoices issued until September 21 will reflect the current rates. The company is working on a revised MRP list for the affected products. “From September 22, 2025 onwards, invoices for these specific items will reflect the newly revised, lower GST rates,” L’Oréal stated in a circular, adding that products bought before the change but sold after will continue to be eligible for full input tax credit (ITC).

 

“We welcome the government’s GST rationalisation as a timely and impactful move, especially as we approach the festival season. This reform is set to significantly ease beauty consumption and stimulate consumer demand across categories. At L’Oréal India, we are fully committed to passing on these benefits to consumers,” said Aseem Kaushik, managing director at L’Oréal India.

 

At the same time, Himalaya Wellness has informed trade partners that a wide range of its products will now fall under the 5 per cent GST slab. Items such as baby diaper rash cream, baby diapers, and prickly heat baby powder are shifting from the 12 per cent slab, while baby powder, baby hair oil, baby shampoo, and bar soap are moving from 18 per cent to 5 per cent.

 

“However, the GST credit you have taken on your inventory bought at earlier rates is still fully available (to you). Therefore, there will be no financial loss or implications (to you),” the company stated in a circular, urging partners to “maintain normal procurement and distribution activities in the transition period.”

 

Email queries sent to P&G India, Dabur India, and Himalaya Wellness remained unanswered until the press time. 

On offer

 

• FMCG majors offer 4-20% discount on a range of products
• These discounts are valid until September 21
• Offers on products where GST rates have fallen to 5% from either 12% or 18%
• Key items include shampoos, hair oil, toothpaste, and soaps