Overview

• India’s simplified GST structure of 5%, 18% and a 40% demerit band takes effect on September 22.
• FMCG companies say popular impulse packs at Rs 5, Rs 10 and Rs 20 will keep their sticker prices, with grammage increased to pass on tax savings.
• Executives argue odd MRPs could disrupt buying habits, noting a Rs 20 pack taxed earlier at 18% would drop to about Rs 18 under 5% GST.
• Hindustan Unilever has announced reductions on select products such as Dove shampoo, Lifebuoy soap, Horlicks and Kissan Jam effective September 22.
• The Finance Ministry is monitoring implementation and is considering guidance to ensure benefits reach consumers.