Prices Slashed Across Categories
Fast moving consumer goods companies are preparing for the launch of GST 2.0 by cutting prices across a wide range of products. Mother Dairy announced reductions on milkshakes, butter, ghee, jams, cheese, frozen items, ice creams, pickles, coconut water and tomato puree. These items have moved from the 12 percent tax bracket to 5 percent, while UHT milk and paneer have been exempted from GST altogether. Depending on the product, the price drop will range from Rs 2 to Rs 30.
Mother Dairy’s managing director Manish Bandlish said that the company is passing on the full benefit of lower tax to consumers, calling the GST reform a progressive step that would help boost demand.
Rivals Prepare to Follow
Mother Dairy’s move is expected to trigger similar announcements from competitors like Amul, whose parent GCMMF has already confirmed that revised pricing will be communicated to consumers ahead of the new tax system’s rollout. Advertisements are planned to ensure clarity for buyers.
Other FMCG majors have also announced their revised pricing. Hindustan Unilever, Procter & Gamble, and L’Oreal will cut prices by 5 to 15 percent starting September 22. These changes will mostly apply to larger pack sizes across categories such as shampoos, soaps, oral care, nutrition, coffee, soups, face powders and grooming products.
Transition Challenges
While the new rates will be effective from September 22, companies have acknowledged that the transition may bring temporary confusion. L’Oreal India said invoices will reflect the new MRPs from the effective date, but some physical products may continue to display old prices until relabeling is complete. HUL and P&G have also informed trade partners that stocks with reduced MRPs are being distributed, though older inventory is still in circulation.
To help retailers clear out older stock before the deadline, FMCG companies are offering discounts of 5 to 20 percent. However, experts note that not all inventory is likely to be liquidated by the time GST 2.0 is fully rolled out. Consumers may see both old and new price tags in stores during the transition, but companies have assured that the reduced MRPs will apply from September 22.
Why It Matters
The direct transfer of benefits to consumers is a central goal of GST 2.0. By reducing prices across essential food and personal care items, FMCG majors are hoping to stimulate demand and improve consumption. With companies like Mother Dairy, HUL, P&G and L’Oreal moving quickly, the impact will be felt across households nationwide.
The Bottom Line
From milkshakes to shampoos, everyday essentials are set to become cheaper as GST 2.0 takes effect. FMCG companies have pledged to pass on the entire tax benefit to consumers, making September 22 an important milestone for shoppers and the industry alike.
Follow YouFinance on Instagram and Facebook for clear and engaging updates that simplify taxes, markets and consumer trends.
