Companies producing fast-moving consumer goods (FMCG) like ITC, Dabur, HUL and Marico, on Tuesday said they cut prices of various products to pass on the benefits of the GST rate reduction to end-consumers.
The companies said they would extend the price reduction to other categories, which have also seen tax rate cuts. The development comes a day after the government asked the firms to pass on lower GST rates to consumers.
The Goods and Services Tax (GST) rate was reduced for 178 items, including detergents, shampoos and beauty products, from 28 per cent to 18 per cent from 15 November.
"ITC has modified the price of its relevant products keeping in mind the applicable rates under the recent GST notification," a company spokesperson told PTI.
Similarly, an HUL spokesperson said, "We have reduced the price for Bru Gold coffee from Rs 145 to Rs 111 on a 50 gm pack. Any further price changes will be communicated in due course."
Earlier in the day, Dabur India said it had cut prices of existing stocks across categories such as shampoos, skin care and home care by 9 per cent. The company said it had also revised the MRP of fresh production with immediate effect which will hit the shelves by next month.
Yesterday, CBEC Chairperson Vanaja Sarna in a letter to all major FMCG companies had pointed out the need to immediately revise the MRP on all the products for which the GST Council has announced the tax reductions.
GST rates on some items have also been reduced from 18 per cent to 12 per cent and from 12 per cent to 5 per cent.
Items on which tax rate has been cut from 28 per cent to 18 per cent include chewing gum, chocolates, coffee, custard powder, dental hygiene products, creams, after-shave, deodorant, detergent and washing powder, razors and blades, cutlery, batteries, goggles, wrist watches and mattress.
The tax rate on condensed milk, refined sugar, pasta curry paste, diabetic food, and bamboo/cane furniture has been cut from 18 per cent to 12 per cent. (PTI)
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