Many large companies to move Appellate Authority against GST demand notices
In recent days, an increasing number of GST notices have been sent to many companies mainly on account of alleged discrepancy in input tax credit (ITC).
FMCG major Dabur India on Tuesday said it has cut prices of existing stocks across categories such as shampoos, skin care and home care by 9 per cent as an act of passing on the benefits of the recent reduction in GST rates to the consumer.
The FMCG major made the announcement a day after the Central Board of Excise and Customs (CBEC) Chairperson wrote to the Fast Moving Consumer Goods (FMCG) companies asking them to follow the revised maximum retail price (MRP) rate list as per the recent tax reduction by the GST Council last week.
Dabur India in a statement said it had last weekend conveyed the price revision to all its trade and business associates and directed them to pass on the benefits to the end consumer with immediate effect.
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“The company is passing on the benefits on existing stocks by providing primary discount of 9 per cent to its trade partners. In accordance with the GST laws, we had last week communicated to all our business and trade associates directing them to start charging the revised lower GST rates, wherever applicable, on all existing stocks,” said Lalit Malik, Chief Financial Officer of Dabur India.
“We have also directed them to pass on the GST benefit to the end consumer,” said Malik.
The company said it had also revised downwards the MRPs of fresh production with immediate effect and these stocks would hit the shelves by next month.
According to the company, the average price reduction across categories, covering shampoo, home care and skin care, range between 8-10 per cent.
“The revision in GST rates is a welcome move and we feel it will help boost consumer and business sentiments,” Malik added.
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