In line with other fast-moving consumer goods (FMCG) players, Nestle India on Sunday said it will make price revisions in accordance with the recent goods and services tax (GST) rate cut.
Last week, GST Council reduced tax rates on over 200 items. As many as 178 items of daily use were shifted from the top tax bracket of 28% to 18% while a uniform 5% tax was prescribed for all restaurants, both air- conditioned and non-AC.
Nestle is looking into the details of GST rate changes made across categories and will make price revisions.
It also reduced prices on three of its products—Maggi, chocolates and coffee as follows:
25-gm pack of Nescafe coffee witnessed the biggest reduction by little over 12% to Rs 70
50-gm pack of Sunrise coffee was pared by 11% to Rs 80
840-gm ‘Family Pack’ of Maggi noodles by 5% to Rs 128
75-gm pack of ‘Maggi Atta noodles’
202-gm pack of ‘Munch’ and 128-gm pack of ‘Kit Kat’ chocolate by 10% to Rs 90 each
Central Board of Excise and Customs Chairman Vanaja N Sarna wrote to about 100 FMCG companies asking them to ensure that reduction in GST rates is passed on to customers. This move ensured that consumers are not looted. Also the fact that Nestle took the initiative to actually pass on the benefit helps them build a goodwill in the market.