Most of the grocery, household and personal care products, prices of Goods and Services Tax (GST) will remain as long as 6-8 weeks after the implementation, because the companies will try to increase their operational cost from new taxes. Many products, including cookies, toothpaste, soap and hair oil, fall within 18% GST. While 22 per cent of these taxes have to be paid now. At the same time, detergent, shampoo and skin care products will have a 28% tax on GST, which is more than ever.
The benefits of less GST to the consumers. However, with some things we are waiting for the picture to be cleaned, such as what tax rebate on production in certain areas, what will be in the new tax system. It will also affect the cost of our products. Also said that no plans have been made to increase the prices on which the tax is increasing in GST.
Retailers and Distributors say that products of HUL, Marico, Dabur, Callgate, Procter & Gamble and Britannia will continue to meet at the same price till August. A distributor of HUL said on condition of anonymity: “The weight or price of the new stock has hardly changed. These products will be sent to the market in the coming weeks. At the same time, HUL does not comment on the changes in the prices of its products under the policy.
Before the GST is implemented, many companies and retailers have stopped supply or are planning to keep very little stock in the last days of the month. However, in order to achieve the goal of sales in the quarter usually, companies increase the supply of products at the end of June. There is also a provision to stop profiteering in GST law. Under this, companies will have to pay the benefit of low tax to the customers. However, companies say that they must first see the impact of input tax credit on raw materials.
Group product manager of Parle Products, said, That cannot change the price points of Rs. 5 and Rs. 10. We will have only one way to lose weight, but it will be based on GST on the final product. It takes two to three months to understand the effect of new tax on our cost. We have to see how the impact of tax credits on input. ‘Many FMCG companies are in Plant Excise Free Zone. They are waiting for the picture to be cleaned with GST on the goods being made here.
Between a week-long conflict on margins between large consumer companies and organized retailers, the Future Group has said that it will offer GST Muhurat shopping scheme from midnight to July 1. It will reduce the prices in different categories by 2-22%. We will offer an additional bonus or cashback to the customers. We have got the stock at a lower price than FMCG companies, which will be given to the customers. ” At the same time, Coca-Cola had said on Tuesday that it will increase the prices of arated baggage and cut the packaged drink water brand Karnala. However, he has not yet decided on new prices.