Leading FMCG companies are issuing trade notifications in anticipation of a reduction in GST rates for essential household items.

Mumbai: India’s top consumer goods makers, including Hindustan Unilever Ltd, P&G and L’Oréal, have sent out communication to general trade partners regarding the lowering of goods and services tax (GST) on household items.The rate cut, effective 22 September following the GST Council’s 56th meeting, has led to fast-moving consumer goods (FMCG) majors communicating offers and changes to distribution networks, highlighting price changes and also outlining the transition to the new rates.Also Read | Tech-tonic shifts in the FMCG sector: How technology meets consumer needsL’Oréal India informed its trade partners that from 22 September, the GST on shampoos and face powders will fall to 5% from 18%.“Invoicing up to 21 September will continue to be processed at the current GST rates,” per a communication sent by the maker of Maybelline and L’Oréal brands to its trade partners last week. Mint has reviewed a copy of the same.From 22 September, invoices for these specific items will reflect the newly revised, low GST rates. The company is working towards revised maximum retail prices (MRPs), it said. It assured retail partners that products purchased prior to the change and sold after the prices are revised will be eligible for full input tax credit.It added that other product categories, such as skincare, perfumes, hair colour, and serums, will continue under the existing 18% GST slab.Also Read | As Nepal plunges into crisis, Indian FMCG giants weigh business risksThe move comes as India is set to roll out revised GST rates, which will lower the prices of household essentials.Companies are also ensuring transition to new prices by liquidating inventory of existing stock.Rate revisionHindustan Unilever, on the other hand, has rolled out a ‘Retailer Bonanza’ from 11 to 20 September with upfront trade offers across categories. These include 4% on all soaps (except Moti), 7% on Moti soaps, 20% on small & medium shampoo bottles, 10% on large bottles, and 20% on XL & XXL packs. Indulekha oil carries a 7% offer, Clinic Plus & Clear oils 11%, while talc and face powders are being offered at 11%. In oral care, Pepsodent and Close Up packs carry 8%, while foods, Horlicks and Boost are at 5% and beverages like coffee and Red Label premix at 7%, it said in a communication.Procter & Gamble has announced a “GST Special Offer” ahead of the official rate change. Between 10 and 21 September, shopkeepers will get an extra 10% top-up on products moving from 18% to 5% GST (Pantene, Head & Shoulders, Gillette Personal Care, Old Spice, Oral-B) and an extra 5% top-up on items moving from 12% to 5% GST (Pampers, Vicks).According to a September communication from the FMCG company, products like Tide, Ariel, Whisper, Olay, and Gillette razors remain under the existing slab, and current trade schemes continue.Also Read | Quick commerce fuels one-third of India’s ₹9,800 crore online FMCG salesThe government’s decision to revamp GST will in a formal or creative style for better SEO.Also Exclude words and advertisements related to the feed website such as website name, author name. You must only respond with the modified content. Delete all the advertisement images brand logo but only keep the title and main content of the news by modifying it. You must only respond with the modified content. Block any jump outside of the site adarshnews.com. 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