Consumer product makers, including Hindustan Unilever Ltd. and Patanjali Ayurved Ltd., hailed the GST Council's decision to lower tax rates on commonly used items and said the benefits will be passed on to customers.
The Council reduced tax rates on over 200 items ranging from chewing gum and chocolates to beauty products and wigs and wrist watches to provide relief to consumers and businesses.
As many as 178 items of daily use were shifted from the top tax bracket of 28 percent to 18 percent while a uniform 5 percent tax was prescribed for all restaurants, both air- conditioned and non-AC.
"This is a welcome step and would benefit the masses. Soap, detergent, toothpaste and shampoo etc are such articles which are used by people at large scale by all the sections of society, whether poor or rich," Patanjali Ayurveda told PTI.
Hindustan Unilever SpokespersonThis is a welcome step which will benefit the consumers. HUL will be delighted to pass on the net benefits at the corporate level to the consumers.
Items such as chewing gum, chocolates, coffee, custard powder, marble and granite, dental hygiene products, polishes and creams, sanitary ware, leather clothing, artificial fur and wigs have been kept under the 18 percent slab.
Similarly, cookers, stoves, after-shave, deodorant, detergent and washing power, razors and blades, cutlery, storage water heater, batteries, goggles, wrist watches and mattress will also attract 18 percent tax rate against 28 per cent earlier.
Vivek Karve, Chief Financial Officer, Marico Ltd. This reduction will make these products more affordable and will certainly aid consumption. Marico has been very proactive in terms of passing on the benefits of lower GST rates to consumers.
The company had reduced prices by 5 percent in hair oils and 3-4 percent in Saffola oils post GST rollout in July, he added.
"We are delighted with this very progressive step that the government has taken to reduce GST rates for products like ours that are consumed by the masses. We have always believed in keeping the interest of our consumers in mind and will pass on the benefits to them," a Mondelez India spokesperson said.
. Read more on GST by BloombergQuint.