GST Reform 2025: These FMCG Product Prices Won’t Change, 7 Points

Delhi

FMCG Firms Hold Rs 5–20 Price Points Despite GST Cut; Consumers to Get 10–15% More Quantity

Key Financial Highlights

1. GST Reduction on FMCG Goods

   • The GST Council slashed tax on daily-use products from 18% to 5%.

   • Items impacted: biscuits, soaps, toothpaste, and other essential FMCG products.

2. Why MRPs on Rs 5, Rs 10, Rs 20 Packs Remain Unchanged

   • Companies say Indian consumers are psychologically tied to fixed price points (Rs 5, 10, 20).

   • Lowering MRPs to Rs 9, Rs 18, etc., could disrupt buying behavior and create confusion.

3. Strategy to Pass GST Benefit

   • Instead of reducing MRPs, FMCG firms will increase pack sizes.

   • Example:

     • A Rs 20 biscuit pack may now contain 10–15% more grams.

     • A Rs 10 soap bar may increase in weight without changing the price.

4. Company Statements

   • Bikaji Foods (CFO Rishabh Jain): Will raise weight of small “impulse packs” to ensure buyers get more value.

   • Dabur (CEO Mohit Malhotra): Confirmed GST benefit will be passed on, expecting demand boost in daily-use categories.

5. Government Oversight

   • The Finance Ministry and CBIC are monitoring anti-profiteering norms.

   • Guidelines may be issued to prevent companies from pocketing GST savings.

6. Consumer Impact

   • Shoppers will continue paying Rs 5, Rs 10, Rs 20 at kirana stores.

   • In return, they will get bigger packs instead of direct price cuts.

   • Industry estimates: 10–20% higher value per pack in key product lines.

7. Industry Outlook

   • Experts say: modest relief in price tags but visible increase in pack sizes.

   • Demand in rural and semi-urban markets likely to see an uptick due to better value-for-money perception.

Disclaimer: This article is for informational purposes only. The Profit India does not provide investment or tax advice. Readers are advised to verify details before making financial or business decisions.