By Admin 
GST Reform: The Modi government recently made many important changes under the GST reforms. Its purpose is to make the things used in the daily life of the common man more economical. Under this reforms, the GST Council has cut tax rates on many things and approved only 5 percent and 18 percent tax rates. The new rates will be applicable from September 22. This will make many everyday items cheap like biscuits, soaps and toothpastes.
However, according to a report by Moneycontrol.com, FMCG companies have said that the prices of certain products will not be reduced. These include packets of 5 rupees biscuits, 10 rupees soap or 20 rupees toothpaste, whose price will not change. FMCG companies have asked tax officials that even after the GST rate cut, the prices of popular low -cost products like biscuits, 10 rupees soap or 20 rupees toothpaste pack will not be reduced.
Why will the price not be reduced?
Industry executive says that Indian buyers are well aware of these standard prices and have become accustomed to them. They will be confused by Rs 9 or 18 instead of Rs 10 or 20. This can also spoil their habit of shopping. People usually buy packs of 5, 10 or 20 rupees without thinking. A sudden change in prices can cause uncertainty or reduce cells.
How will you get benefit again?
Instead of lowering prices, companies will increase the amount of products in the pack, while the price will be kept the same. That is, more biscuits will be found in the packet of biscuits of 20 rupees, quantity will also be increased in the package of chips. In this way, the benefit of GST will be given to customers. This will ensure that customers get the benefit of GST rate at the old price. Industry experts also believe that this method is correct given the challenges of consumer behavior patterns and changes in the prices of goods coming in the market on a large scale.
Instead of lowering prices, companies will increase the amount of products in the pack, while the price will be kept the same. That is, more biscuits will be found in the packet of biscuits of 20 rupees, quantity will also be increased in the package of chips. In this way, the benefit of GST will be given to the customers, Rishabh Jain, CFO of Bikaji Foods, told Moneycontrol, “We will increase the weight of our small ‘Impulse Packs’ so that consumers can get more value at the same price.”
Similarly, Dabur’s CEO Mohit Malhotra said, “The companies will definitely bring the benefit of tax deduction to the customers. They said that the demand for everyday products will increase due to reduced tax.”
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