As the government's next-generation GST 2.0 comes into effect from Monday, major FMCG and consumer goods companies are rolling out price cuts, system upgrades and mass communication campaigns to ensure a smooth transition.
Leading brands including ITC, Parle and Bisleri have confirmed that they will pass on the benefits of tax rationalisation to consumers. Industry players believe that the reforms will boost consumption during the festive season.
Transition Phase and Dual Pricing
During the transition period, consumers may notice products carrying both old and new MRPs. To manage this, FMCG companies have introduced special trade discounts and QPS schemes, ensuring that existing stocks in the market are aligned with the revised tax structure.
An ITC Executive Director 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 September 22. During the transition, both old and new MRPs may be visible, but consumers should always check the updated MRP before making purchases."
Parle Products' Vice-President highlighted that the company has upgraded its internal systems and revised product price structures. "Once old packaging material is exhausted, only the new MRPs will be printed and circulated in the market," he stated.
Beverage and Electronics Sectors Join the Transition
Bisleri International's CEO confirmed that beverage prices have been revised across the portfolio, with newly priced stocks set to reach markets starting this week.
Meanwhile, industry experts believe that GST 2.0 will positively impact not just mass-market goods but also the premium consumer segment. Executives from WPP Media South Asia and Sony India expect categories like large-screen LED TVs (55 inches and above) to see increased traction, as buyers upgrade to higher-end products.
Industry and Trade Response
The All India Consumer Products Distributors Federation (AICPDF) said that within the last 10 days, almost all existing stocks in the market have been realigned with the new tax structure, thanks to aggressive trade discounts and schemes from manufacturers.
A tax expert noted, "Given the vast number of SKUs and nationwide distribution, companies will need to carefully manage dual stock situations, display revised MRPs and ensure compliance with GST invoicing and consumer protection norms."
With GST 2.0 setting in, both companies and consumers are gearing up for a new phase of efficiency, savings, and market growth, with festive season demand expected to accelerate the benefits of the reforms.
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