GST rate rejig awakens the ghost of 2017 transition for FMCG players

Firms warn of teething troubles, seek time to rework SKUs and labels

Companies may be celebrating the long-term gains from the goods and services tax (GST) cut on a wide range of fast-moving consumer goods (FMCG) from toothpaste and shampoos to namkeens, but the industry is also gripped by memories of the chaos that followed GST’s rollout in 2017. Back then, stocks in the supply chain carried old price tags, triggering a near wipeout of sales for almost a month. 

Late Wednesday night, the government announced GST reductions across food and non-food categories in an attempt to encourage consumer spending. 

Executives insist the tax savings will be passed on to