GST rates: FMCG Cos to pass benefits to the consumers

FMCG (fast moving consumer goods )market is expected to reach from the current level of US$ 49 billion to US$ 103.7 bn by 2020, according to ASSOCHAM and report.

The rural FMCG market in India is expected to grow at a CAGR of 14.6%.

FMCG Companies such as Nestle, Dabur, ITC and Amul will reduce prices post GST announcement.Recently, Nestle, Godrej Consumer Products announced price cuts across their brands.

In the 23rd GST Council meeting, as many as 178 items of daily use were moved from the higher tax bracket of 28% to 18%, while a uniform 5% tax was prescribed for all restaurants, both air-conditioned and non-AC.

FMCG sector was the worst hit on account of GST.

Yash Ved
Yash Ved is a Senior Correspondent at NewsBarons and comes with a decade of experience across leading online and offline publications. A keen observer of the stock index movement, Yash also likes covering Real Estate and the BFSI sector. A financial management and Journalism student, Yash believes learning as a continuous journey and enjoys following the IT and the Pharmaceutical industry and has penned many articles on the subjects.