Quick Summary
While automobile companies have largely passed on the benefits of the recent GST rate cut to consumers, categories like packaged foods and medicines have seen slower pass-through, according to a LocalCircles survey. Retailers' reluctance to reduce prices without compensation from brands or manufacturers is cited as a key reason. The survey, conducted with over 74,000 consumers across 341 districts, found that in the first week of implementation (September 22-28), only 10% of consumers in packag
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FAQ :
The automobile sector has shown the highest compliance in passing on GST benefits to consumers, with around 70% receiving full benefits initially.
In the first week, only about 10% of consumers in packaged foods and medicines received the full benefit of the GST rate cut, with around 70% seeing no price reduction.
Retailers' reluctance to reduce prices without compensation from brands or manufacturers is a key reason for the slower pass-through of GST benefits in these categories.
The GST rate cut, implemented from September 22nd, significantly boosted sales during the Navratri festival, with major brands reporting substantial growth compared to the previous year.
The survey suggests a need for closer government oversight and proactive engagement with FMCG and medicine brands to ensure retailers pass GST reductions directly to consumers.
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