GST cuts effects

GST cuts effects: Get More at same price

GST cuts effects on the consumer shopping for your daily usable products

NEW DELHI: next time when you go for shopping for your daily usable products, you may GST cuts effects larger pack sizes in the same price rate as per some consumer goods companies plans to increase the weight of their basic daily usable products to pass on gains from GST rates revision.

Higher Authorities already have written to these companies to provide the benefits of rate revisions to end user. The government ensured that end users profit from the sharp reduction in GST rates approx  200 products.

A spokesperson for our sources, the maker of Oreo cookies, Cadbury, Bournvita,  said, “To pass on the benefits to our consumers, we are either reducing prices where the coinage is not an issue or increasing grammage, which means giving more product to the consumer at the same price. This is important for a large number of our products at price points like Re 1, Rs 2, Rs 5 and Rs 10 — which are critical for consumer convenience and value.”

Similarly, Hindustan Unilever, the maker of daily usable products including Domex, Rin, and Dove, has increased the grams on Rin Powder Rs-10 pack from 125gm to 140gm. “This has also been advertised to ensure consumers are aware of the change,” said an HUL spokesperson. in the process, approx 600 of HUL’s stock keeping units (SKUs) are being affected by the rate revision in (MRP) maximum retail price, or changes in weight. ”

As we pass on GST rate reductions, the benefits to consumers across categories will be between the range of 7% and 10%,” the spokesperson said. “We are confident that the transition of a sizeable part of our portfolio to reduced MRPs/increased grammage will be completed in the next few weeks.”

Pratik Jain, partner and leader indirect tax at consulting firm PwC, said, “From a consumer standpoint, increase in weight also results in an effective reduction of price, hence it should be viewed as sufficient compliance of anti-profiteering laws.”

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