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  Business   Economy  21 Nov 2017  FMCG companies told to pass on GST benefits

FMCG companies told to pass on GST benefits

THE ASIAN AGE.
Published : Nov 21, 2017, 1:15 am IST
Updated : Nov 21, 2017, 1:15 am IST

A large number of items have also witnessed a reduction in GST rates from 18 per cent to 12 per cent, 12 per cent to 5 per cent and so on.

Few large retail outlets have already started advertising the downward revised prices of FMCG items.
 Few large retail outlets have already started advertising the downward revised prices of FMCG items.

New Delhi: The Centre on Monday appealed to Fast-Moving Consumer Goods (FMCG) companies to pass on the benefit of reduction in Goods and Services (GST) to consumers by cutting prices of their products.

The Central Board of Excise and Customs (CBEC), chairperson Vanaja Sarna has written letter to all the major FMCG companies "pointing out the need to immediately revise the MRP on all the products in which the reduction of GST has been announced by the council.”  

She has also requested all to give wide publicity to the revised MRP of products.

Finance ministry, in a statement, said that the benefit of reduction in the GST rate has to be passed on by the suppliers to the consumers by way of commensurate reduction in prices. The reduction in GST rates is also expected to encourage domestic demand and investment, it said.

The GST Council in its 23rd meeting held on  November 10 at Guwahati had recommended the reduction of the GST rate from 28 per cent to 18 per cent on goods falling under 178 headings, leaving now only 50 items under the GST slab rate of 28 per cent.

“A large number of items have also witnessed a reduction in GST rates from 18 per cent to 12 per cent, 12 per cent to 5 per cent and so on. All these changes are effective from the midnight of 14th November, 2017,” said finance ministry.

The tax was slashed by the GST Council on products like  chocolates, condensed milk,  pasta, chewing gum, washing powder, shaving cream, blade, shampoo, deodorant, cosmetics, toothpaste,  watches and nutritional drinks among many others.

Few large retail outlets have started advertising the downward revised prices of FMCG items like shampoo, detergent and beauty products on account of reduction in GST.

Tags: goods and services (gst), fmcg, fast moving consumer goods