GST Overhaul: FMCG Industry Awaits Clear Guidelines
FMCG companies are seeking government guidance on managing inventories carrying older MRP as a new GST regime is set to introduce lower duties. The transition period might cause short-term disruptions. Companies are evaluating their strategies to accommodate the pricing change while awaiting implementation guidelines from relevant authorities.
- Country:
- India
The FMCG sector is in a state of flux as companies face challenges in adapting to a new GST regime set to commence on September 22. The industry is keenly awaiting government guidelines to navigate through the transition, which involves dealing with existing inventories marked with old MRPs.
Industry leaders like Emami's Harsha Vardhan Agarwal and Godrej Consumer's Sudhir Sitapati stress the need for strategic planning to manage this shift, as disruptions are expected. They highlight the complex nature of rolling out new MRPs and ensuring that price reductions reach consumers efficiently.
Meanwhile, companies like V-Mart and Blue Star express their readiness by planning discounts and administrative changes to align with the new tax slabs. The revamped GST structure, featuring lower tax slabs of 5% and 18%, is part of government efforts to stimulate consumer spending during this period of transition.
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