By Admin 
GST 2.0 effect on FMCG Products: After the GST reform, the prices of many things have declined. However, there was confusion regarding packaging and prices of FMCG companies. The government has now clarified this situation. FMCG companies can increase the weight of the product instead of reducing the price of the product to benefit the customers under the new GST.
After the government makes this clear, companies can start working on increasing the weight of their products. For example, if an item is being sold by a company for Rs 2, its price will reduce under the new GST. The price of the product would have been Rs 1.77. In such a situation, it was a problem for the company that how should they take such amount from the customers. It was also not clarified by the government as to how to deal with this situation. But now companies are preparing to increase the weight of their products to sell by November 15.
Companies are preparing
According to the information, the company is going to prepare new packs for its products in the coming few days. These products will be available at the same prices as before but their weight will increase between 6 percent to 12 percent. Companies can apply the formula to increase weight on products with packets ranging from Rs 2 to Rs 20. At the same time, it is expected that the prices of high priced products will be reduced.
Experts say that companies focus too much on products of this price. Therefore, instead of reducing the prices of these products, they are working on increasing the quantity or weight of the products. The company is changing the pack size of biscuits, shampoo and other items. It is taking some time. The prices of all these products will remain the same but the weight will increase between 6 to 12 percent.
Prices reduced after GST 2.0
After GST reform, prices of many everyday items have decreased. For example, Parle’s Parle-G biscuit which used to cost Rs 5 is now available for Rs 4.45. At the same time, Bisleri’s 500 ml water bottle is being sold for Rs 9 instead of Rs 10.
However, many retailers are still selling goods at the old prices. They say that they do not have change, so they are taking money from customers at the previous rate. Sometimes toffees and sometimes other small items are given in exchange of retail money. At the same time, some shopkeepers are selling goods at new rates using UPI.
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