GST, a reform in the Indian taxation which subsumed a number of indirect taxes and levies has, been cutting down on household budget. As several of the FMCG products are now available for a price which is less in comparison to the pre-GST times.
The rate cuts are visible across categories including biscuits, savoury snacks and toiletry items which have been implemented by nearly all the FMCG majors including ITC, Hindustan Unilever. And with it prices in the retail outlets as well as online stores have slashed by 3-8%.
As per the GST rate schedule, almost over 80% of the items have been kept in the GST slab rate of 18% or below.
More of the price cuts shall be imminent once the traders of FMCG goods are able to sell off their old stock.
Biscuit and other confectionery items have seen a price fall of 10-20%. In the category of food items, breakfast whole grain meals including Muesli which was earlier priced heavily have also seen a price fall post the implementation of GST.
Also toiletry items, skin cleansers and hair care products have also seen a price fall with a GST slab rate of 18% as against the earlier rate in the bracket of 22-24%.
So, the implementation of GST across the length and breadth of industry from logistics to warehousing shall reduce the overall cost for the industry as well as consumers. Once more clarity is known with respect to input tax credit, goods under the category will become all the cheaper.