By Admin 
GST Rate Cut: Consumption companies (FMCG) have made it clear to tax authorities that they will not cut the price on popular low -cost products. These include products like biscuits of 5 rupees, 10 rupees soap and toothpaste of 20 rupees. While the tax rate has been cut on them, after which their prices should have been low.
FMCG companies not ready to reduce prices
Companies argue that consumers are accustomed to buy these goods at fixed price. If their prices are reduced to Rs 9 or Rs 18, then there will be confusion among consumers and inconvenience in transactions.
Instead, companies have suggested to the Central Board of Indirect Taxes and Customs (CBIC) that they will keep the price as the price, but will increase the quantity in the packet. That is, if a customer will buy a biscuit of 20 rupees, then he will get more quantity than before.
According to the report, executives of many big FMCG companies said that by giving more quantity at the same price, the benefit of GST reduced to consumers will reach without any problem.
Companies ready to give advantage forward?
Rishabh Jain, CFO of Bikaji Foods, confirmed that the company would increase the weight of small packets so that the consumer can get more value. At the same time, Dabur CEO Mohit Malhotra said that his company will also definitely give the benefit of GST deduction to consumers. He further said that the demand for every product is likely to increase with low tax.
However, the Finance Ministry officials say that they are keeping a close watch on the whole matter. The report further states that the release of guidelines is also being considered by the Ministry so that it can be true to the people and not that such companies keep profits in their pockets.
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