GST rate change impact: Good news for consumers! Prices of many daily use items set to fall soon
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The good news pertaining to price fall in a number of daily use items is set to arrive as FMCG firms are getting ready to reduce prices of many items and that too very soon. Reportedly, daily use items such as shampoo, chocolates, nutrition drinks and condensed milk are set to fall up to 15 per cent. According to a report in Economic Times, Hindustan Unilever, Dabur, Amul, GlaxoSmithKline, Procter & Gamble, Nestle and Perfetti Van Melle have decided to reduce prices or are planning to do so. The big development comes days after Finance Minister Arun Jaitley, after the GST Council meeting last Friday, confirmed that as many as 178 items of daily use were shifted from the top tax bracket of 28 per cent to 18 per cent.
In the biggest GST rejig so far, t ax rates on over 200 items, ranging from chewing gum to chocolates, to beauty products, wigs and wrist watches, were slashed on Friday to provide relief to consumers and businesses. The Council met in Assamâs Guwahati.
After the GST Council meeting, consumer product makers, including HUL and Patanjali, had hailed the GST Councilâs decision to lower tax rates on commonly used items and said the benefits will be passed on to customers.
âThis is a welcome step and would benefit the masses. Soap, detergent, toothpaste and shampoo etc are such articles which are used by people at large scale by all the sections of society, whether poor or rich,â Patanjali Ayurveda CEO and MD had said.
List of items which were under 28% but now fall under 18%
Items such as chewing gum, chocolates, coffee, custard powder, marble and granite, dental hygiene products, polishes and creams, sanitary ware, leather clothing, artificial fur and wigs have been k ept under the 18 per cent slab. Similarly, cookers, stoves, after-shave, deodorant, detergent and washing power, razors and blades, cutlery, storage water heater, batteries, goggles, wrist watches and mattress will also attract 18 per cent tax rate against 28 per cent earlier.
The GST, implemented from July 1, has five tax slabs of 0 per cent, 5 per cent, 12 per cent, 18 per cent and 28 per cent.Source: Google News