Mixed bag for FMCG

Mass-market home, personal care and food products stand to gain

Fast moving consumer goods companies have begun asssessing the impact of the rate structure declared on Thursday under the Goods & Services Tax (GST). Finance Minister Arun Jaitley, who heads the GST Council, said a four-tier structure of 5%, 12%, 18% and 28% would be in place as part of the new tax regime that will kick in next year.

While mass-market home, personal care and food products are expected to fall in the 5%  bracket, premium products are expected to fall in the 28 per cent bracket, which could come as dampener for companies, who've been premiumising their portfolios.