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- FMCG firms slash prices post GST reduction
From releasing ads informing consumers about revised prices to deploying software to closely monitor billing and invoicing at retail stores, consumer goods companies are trying to ensure that their products reflect the reduced rate of tax at the shop level. Goods and services tax rates on as many as 178 products, including chocolates, cosmetics, detergents and air-fresheners, were reduced earlier this month. Under the GST law, companies must pass on the gain from the lowered tax to consumers, but stocks lying in the market still carry previous price tags.
The government has made it clear that it was the responsibility of the companies to ensure that their entire retail chain followed the directives on pricing. If a trader is not selling an item at the revised MRP, then the company will have to respond to the National Anti-Profiteering Authority on it.
