September 7, 2025

Mumbai|New Delhi: With the September 22 GST revamp deadline rushing closer, India’s top consumer goods companies are asking for a breather! They say handling old stock and packaging printed under the old tax rules is a big headache. They want the government to push the start date back by at least 30 days, or more if needed, so they can clear current inventory nicely without chaos. Mayank Shah, vice president at Parle Products, India’s biggest food company, explained the issue: "The challenge will be to manage existing stocks and packaging materials already printed which are in the pipeline." Alongside that, companies are scratching their heads about how to pass price cuts to customers. Can they do it by increasing the product’s weight - also known as ‘grammage’ - especially for small packs? That’s a big question! Distributors are also in the dark about how FMCG firms will manage the stock still sitting in warehouses and shops priced under the old GST system, which is soon to be replaced. This could lead to a messy situation with two sets of pricing rules running at the same time. Adding spice to the story, companies stock up heavily before the festive season, packing warehouses with extra items, especially special gift packs. This builds pressure to get the tax and pricing changes just right. One top multinational home and personal care company senior said, "We have written to the government urging them to either retain prices of popular packs with increased grammage and use packing material which is already printed although benefits will be passed via discounts." They also called for clearer definitions in tax codes, noting confusion where one code covers many different products — like soaps including both bathing and detergent bars, or talcum powder also covering deodorants. Back in 2017, some firms faced tax trouble for not passing GST benefits to customers quickly enough. Now, with new tax cuts on the horizon, Ahmed Abdel Wahab, general manager at Mars Wrigley India, promised a swift response: "With these tax reductions, we will respond quickly to support retailers nationwide." Big names like Hindustan Unilever, Procter & Gamble, and L’Oreal traditionally passed tax benefits by increasing product quantity rather than cutting prices. Keeping favorite price tags like ₹10 or ₹20 unchanged, they offered more for the same money—a clever trick to please shoppers. But with the new GST changes, companies want clear rules and more time to ensure customers get these benefits smoothly. Will the government listen and give this masaledar request a green signal? The clock is ticking, and all eyes are on the decision!

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Tags: Gst revamp, Consumer goods, Tax changes, Inventory challenges, Price cuts, Fmcg,