FMCG businesses await GST implementation guidelines, tax cut to create short-term disruption

New -delhi, September 8 (PTI) FMCG enterprises, which sit on a pile of shares with printed MRP under the current GST regime, awaits government’s implementation guidelines to handle their stock at their warehouses and shelves of retail stores. Industry players expect the shift to a new GST regime with reduced duties on FMCG products to increase consumption. However, this will cause a “short -term disruption” due to existing shares under the current tax regime. The industry expects the government to allow them to sell existing stock with the old MRP with discounts, even after September 22, when the new GST regime with a lower service comes into effect. “At the moment, everyone is evaluating,” Emami -Vise chairman and managing director Harssha Vardhan Agarwal told Pti. Besides, “We are also trying to get verification from the government on the matter. It is clear that we also try how quickly we can handle the changes to the MRP best,” he added. Asked about the question of some FMCG businesses looking for more time from the government to handle the downward price changes, Agarwal, who is also president of the FICCI of trade, said it would depend on product-to-production and stock level. “Challenges may differ from company to company,” he said, adding that “at this time evaluates the current scenario and the challenges to come up with a mitigation plan”. GodreJ Managing Director and CEO, Sudhir Sitapati, said on Monday that consumers will start getting FMCG products at lower prices only by the early or middle of the next month, as goods take time to reach markets with the new MRPs. Sitapati, reducing the tariff to 5 percent as a few short-term interruptions’ for the FMCG industry, said that while the industry works on an MRP regime, traders and companies put high MRP shares. Simply giving up money to trade does not guarantee that it reaches consumers directly. It will take some time for new MRPS flow to the market flow, “he added. The new structure of the tax on goods and services (GST) will come into effect on September 22. However, Sitapati has pointed out that it may take a longer time to implement it.” September can therefore be cut somewhat, with pipeline changes and adjustments. Guidelines. “The industry bodies are already in conversation with the government. Depending on what guidelines are given, we will have to move immediately or give some time,” he said. On the existing shares, Shah said that different businesses would have different challenges, such as food products, which have a shorter shelf life than the personal care items, but the velocity is different for each business. September out. Last week, the mighty GST council decided to reduce tax on most structure of goods and service taxes (GST), which will come into effect on September 22 of 5 years. 28 percent.