To remain compliant with the GST rate cuts that the government is time and again reminding companies' across sectors to stick to, some of the companies primarily in the consumer goods space shall now be providing a bigger pack with more content for a lesser amount.
And officials say the practice is in line with the ruling and should be viewed as enough compliance with the anti-profiteering laws. As from a customer perspective this means, costs reduction.
Some of the companies resorting to such a practice include Mondelez, owner of big brands such as Bournvita, Oreo cookies and Cadbury chocolates.
In the last GST Council meet, the rates had been slashed for some 200 items to the 18% slab rate and with this a sharp reduction in price shall be eminent for the end consumers. For companies, the rationalosation would mean growth in volume terms which has been previously recognized by tile major, Kajaria Tiles.
Another FMCG major HUL shall also follow the suit with a bigger size packing that shall now be available on shelves at a lower costs.
For the end consumer, the benefit shall be close to in the range of 7-10%.