19
Sunday
August 2018
9:25 AM IST
News Headlines
Home   | Main News   | Kerala  | National   | International  | Business   | Sports   | Entertainment   | Columns   | Offbeat   | About Deepika 
Business News
FMCG firms slash prices post GST reduction
 
New Delhi, Nov 21 (PTI) FMCG companies, including ITC, Dabur, HUL and Marico, today said they have cut prices of various products to pass on the benefits of GST rate reduction to end-consumers.

The companies said they will 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 on 178 items, including detergents, shampoos and beauty products, from 28 per cent to 18 per cent from November 15.


"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 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."

HUL remains committed to passing on the benefits of GST reduction to the consumers, the spokesperson added.

Likewise, Marico CFO Vivek Karve said the company has effected MRP reductions on products across categories such as deodorants, hair gels, hair creams, body care etc.

"While the new production shifts to new reduced MRP immediately, we are passing on the benefits on existing stocks either through stickering the products with reduced MRP or by providing additional discounts to our trade channel partners," he said.

Karve further said the company has also sent out communication to its partners to pass on the benefit of reduced taxes to the consumers.

Earlier in the day, Dabur India said it has 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.

When contacted, a Patanjali spokesperson said: "We welcome this step and the benefits must be transferred to the customers. We are evaluating over the quantum of decrease."

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 tax reductions have been announced by the GST Council.

GST rates on a number of 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 power, razors and blades, cutlery, batteries, goggles, wrist watches and mattress.

Tax rate on condensed mil, refined sugar, pasta curry paste, diabetic food, and bamboo/cane furniture has been cut from 18 per cent to 12 per cent.


US dollar ends sharply higher against rupee
Erdogan says Turkey 'won't lose economic war' after lira crash
Nifty scales another peak of 11,470, up 20 points
Govt should consider framing dedicated policy for BPO sector: Par panel
SBI launches unified payment terminal- MOPAD
IKEA to open first India outlet at Hyderabad tomorrow
Govt withdraws FRDI bill in Parliament following backlash
Jet Airways releases salaries to employees, decides against pay cut
TRAI gives nod for sale of 5G spectrum
Maruti Suzuki India posts marginal decline in July sales at 1,64,369 units
RBI rate hike to avoid drifting away from inflation mandate, says Patel
India Post Payments Bank to start operations with 650 branches in August
Twitter kills 143,000 apps, charts new rules for developers
Walmart looks to double wholesale presence in?India, open 20 stores over next three years
Third party insurance for two, four-wheeler be made mandatory: Supreme Court
Samsung, Xiaomi corner 60 pc share of India's smartphone mkt in Q2: Canalys
Indo-Pacific must be free, open and and inclusive region: Swaraj
Govt working on another verison of UDAN, says Sinha
Talks on between India, Singapore for cruise tourism: Gadkari
Govt doubles import duty on over 50 textile products
KERALA NEWS
Kerala flood: Papa CJ expressed his willingness to perform at fund-raiser programmes
 Stand up Comedian Papa CJ on Thursday tweeted his willingness to perform at any fund-raiser programs  
Declare Kerala floods a national disaster: Rahul Gandhi asks PM
PM announces an interim relief of Rs 500 Cr
PM's aerial survey called off
INTERNATIONAL NEWS
Imran Khan Elected New Pakistan PM, Seen In Tears After Vote
 (Islamabad, Aug 17, 2018):Pakistani lawmakers have endorsed Imran Khan as their next prime mi
'He's innocent': US threatens more sanctions on Turkey if pastor not freed
Toll soars to 48 in Kabul education centre blast
Bridge collapses in Italy during heavy storm, crushing cars
NATIONAL NEWS
Swami Agnivesh assaulted on way to pay homage to Atal Bihari Vajpayee in New Delhi
 (New Delhi, Aug 17, 2018):Social activist Swami Agnivesh was assaulted on Deen Dayal Upadhyay
Water level of Mullaperiyar to be reduced to 139 feet, orders SC
Lead Us, DMK Leaders Tell Stalin, Day After Brother Alagiri's Message
No income generated from YI-National Herald transaction: Sonia Gandhi to HC
Untitled Page
Rashtra Deepika LTD
Copyright @ 2017 , Rashtra Deepika Ltd.