NEW DELHI: A day after the government asked FMCG firms to update the MRPs of their products to reflect the recently revised GST rates, ITC, Dabur, HUL and Marico said on Tuesday that they have cut prices of various products to pass on the benefits of reduced GST to end-consumers.
These consumer goods majors added that they would extend the price cut to other categories, too, which have seen tax rate cuts.
The Goods and Services Tax (GST) rate was reduced on 178 items, including detergents, shampoos and beauty products, from 28 per cent to 18 per cent from November 15.
While ITC said it has modified the price of its relevant products keeping in mind the applicable rates under the recent GST notification, an HUL spokesperson said the company has reduced price for Bru Gold coffee from Rs 145 to Rs 111 on a 50 gm pack.
Marico CFO Vivek Karve said the company has effected MRP reductions on products across categories such as deodorants, hair gels, hair creams, body care etc. “While the new production shifts to new reduced MRP immediately, we are passing on the benefits on existing stocks either through stickering the products with reduced MRP or by providing additional discounts to our trade channel partners,” he said. Karve added that the company has also sent out communication to its partners to pass on the benefit of reduced taxes to the consumers.
Meanwhile, Dabur India said it has cut prices of existing stocks across categories by 9 per cent. The company said it had also revised the MRP of fresh production with immediate effect which will hit the shelves by next month.