Godrej Consumer cuts product prices up to 10% after GST reduction
New Delhi: Fast moving consumer goods (FMCG) major Godrej Consumer Products Ltd on Wednesday said it has lowered prices of its various products in the range of 7-10% to pass on benefits of the recent goods and services tax (GST) rate reduction.
On Tuesday, ITC, Dabur, HUL and Marico, had cut prices of various products following reduction in GST rates effective 15 November. “We are committed to passing on the benefits of the reduced rates to our consumers and have initiated a 7-10% price reduction on our products across hair colours, air fresheners, liquid detergents and deodorant categories,” Godrej Consumer Products Ltd (GCPL) business head-India and SAARC Sunil Kataria said.
The move comes days after the government asked the firms to immediately revise the maximum retail price (MRP) on the products to pass on lower GST rates to consumers. GCPL said the reductions will be effective immediately and would also be applicable on its existing stocks.
“We are working very closely with our distributors and channel partners to monitor that the reduced MRPs are being passed on to the consumers,” Kataria said. He further said: “Our intent is to offer maximum support to retailers and wholesalers so that the switch to the new pricing is seamless and quick”.
GST rate was reduced on 178 items, including detergents, shampoos and beauty products, from 28% to 18% from 15 November. GST rates on a number of items have also been reduced from 18% to 12% and from 12% to 5%.