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
Consumer product makers, including HUL and Patanjali, today 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 today 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.
He further said this would help people purchase their goods for the daily requirement at a lesser price.
"It 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," a Hindustan Unilever spokesperson said.
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.
"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," Marico Ltd CFO Vivek Karve said.
The company had reduced 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.
Mondelez India makes chocolates under brand name Dairy Milk, among others.
