Companies will firmly benefit the customers of GST reduction, as this will promote congestion. Dabur India CEO Mohit Malhotra said this to Moneycontrol on 11 September. Dabur India is one of the big FMCG companies in the country. Malhotra, who came to participate in the program of Industry Chamber CII, said in a conversation with Moneycontrol that we are confident that as soon as new rates of GST are applicable, the prices of things will be reduced.
Prices will decrease when GST’s new rates are implemented
He said, “In CII, we are discussing this issue according to different sectors … We are sure that prices will decrease as soon as the new rates are implemented.” The proposal of GST Reforms will be approved in the GST Council meeting held in Delhi earlier this month. The GST Council has changed the framework of GST after 8 years after GST was implemented. Now there will be only two slabs instead of four. The change in GST rates will come into effect from September 22.
The GST Council has made the GST framework easier. Slabs of only 5 percent and 18 percent have been kept. Slabs with 12 per cent and 28 per cent have been abolished. A special has become a 40 % slab which will apply to luxury and sin products like tobacco, cigarettes etc. The special thing is that most of the daily used things have now come in the slab of 5 percent.
Classification issue was also resolved
On the issue of classification, Malhotra said that it has been resolved. He said that GST rates were different for earlier branded and non-branded products. There was also a difference in rates in terms of separate varieties. Now all these things are over. Last year, there was a lot of discussion about GST rates on popcorn. The GST Council had set different rates for different varieties of popcorn. Salt and spices get 5 % GST on popcorn. Now 5 % GST will be applicable to the popcorn found, if it is sold or sold after labeling. The first loose had 5 per cent GST and 12 per cent GST on labled products.
Expected to solve after the problem of inverted duty structure
The CEO of Dabur said that the problem of inverted duty structure has not yet been solved completely. He said that the industry will have to pay 18 percent GST on services. However, the end-product will cost 5 % GST. He said that we do not get input tax credit on services. Warehousing cost and media costs are examples of this. However, it is expected that further solutions to these issues will also be found.