Himadri Buch Moneycontrol News
Gurugram-based consumer companies Nestle India and GlaxoSmithKline Consumer Healthcare have cut the price on certain products to pass on the benefit of reduced goods and services tax (GST) rates to its customers.
GSK Consumer has cut the price of malted food drink Horlicks by nearly 5 percent for a 500-gm jar, while the price of 500-gm Boost has been cut by 4 percent, traders told Moneycontrol.
On the other hand, Nestle India, too, reduced prices on three of its products—Maggi, chocolates and coffee.
The price of the 25-gm pack of Nescafe coffee witnessed the biggest reduction in price by little over 12 percent to Rs 70, while the price of the 50-gm pack of Sunrise coffee was pared by 11 percent to Rs 80, traders told Moneycontrol.
Fast-moving consumer goods company Nestle India has also cut prices of 840-gm 'Family Pack' of Maggi noodles by 5 percent to Rs 128. The company has further cut the price for its 75-gm pack of 'Maggi Atta noodles' and 71-gm pack of 'Maggi Hot Heads' by 5 percent to Rs 19 each.
According to traders, Nestle has cut the prices of its 202-gm pack of 'Munch' and 128-gm pack of 'Kit Kat' chocolate by 10 percent to Rs 90 each.
Recently, GST rates on a slew of consumer items was reduced to 18 percent from 28 percent with effect from November 15.
After GST Council announced a reduction in GST rates, Central Board of Excise and Customs Chairman Vanaja N Sarna wrote to about 100 fast-moving consumer goods companies asking them to ensure that reduction in GST rates is passed on to customers.
On November 10, the goods and services tax on as many as 178 items were reduced from the highest tax bracket of 28 percent to 18 percent tax slab.
Consumer goods such as shampoos, hair cream, hair dyes, detergents were among the goods moved to the 18 percent tax slab from 28 percent slab.
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