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During the transition period, stocks with both old and new price tags will remain visible. | Photo Credit: GOVARTHAN M
As the government’s next-generation Goods and Services Tax (GST 2.0) takes effect on Monday, consumer goods makers are rolling out price cuts, system upgrades and mass communication campaigns to ensure a smooth transition. From ITC to Parle and Bisleri, companies say they are expecting boost in consumption as they are ready to pass on the benefits of tax rationalisation to shoppers.
During the transition period, stocks with both old and new price tags will remain visible. Distributors said almost all existing stocks in the market have been aligned with the revised tax structure through special trade discounts and QPS schemes offered by FMCG companies.
In transition phase
Hemant Malik, Executive Director, ITC Ltd, said, “We have already announced that we will pass on the benefits of rate rationalisation to consumers including price cuts across our food categories effective from September 22. We are also informing all our trade partners about the ensuing changes. During the transition period, physical products bearing both the old and new MRPs may be available in the market. Consumers should refer to the updated MRP before making any purchase. We expect that the timely and holistic GST reforms by the Government would boost consumption of key food products.”
Companies are using a multi-channel approach to communicate new prices to traders and consumers, including circulars and advertisements. “Over the past few days, we have been gearing up for the next generation GST regime by aligning internal systems with new tax codes and revising product price structures…Once we exhaust old packaging material instead of new and old MRPs, stocks packaged in new material will be hitting the market with only the new MRPs,” said Mayank Shah, Vice-President, Parle Products.
Beverage makers, too, are revising prices. Angelo George, CEO, Bisleri International, said, “We have revised our prices in line with the GST reduction across our portfolio… newly priced stocks will reach the market starting Monday.”
Dual stocks
Manoj Mishra, Partner, Grant Thornton Bharat, said that given the sheer scale of SKUs and nationwide distribution, “companies will have to manage dual stock situations, display revised MRPs, and ensure compliance with GST invoicing and consumer protection norms.”
The All India Consumer Products Distributors Federation (AICPDF) stated over the last 10 days, almost all existing stocks in the market have been aligned with the revised tax structure through — special trade discounts and QPS schemes offered by FMCG companies.
Industry observers such as Navin Khemka of WPP Media South Asia and Sunil Nayyar of Sony India expect the reforms to spur consumption not only in mass-market goods but also in premium segment.
”We expect the premium segment of LED TVs above 55 inches to see strong traction. This will mean many new buyers come to the brand’s fold as they upgrade to larger screen sizes and opt for better technology products,” Nayyar said.
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Published on September 21, 2025 16:45