GST which came with the concept of one nation one tax was implemented on 1st April 2017 had an impact on consumers as well as the prices of few services and products were increased by this. But now the GST council has reduced the tax rate on over 200 items to provide relief to consumers and businesses.
Reduction in tax rate will affect the buying behaviour of the customer, as the customer always look for the option which is low in price and best in quality and the companies like Nestle are looking to grab the opportunity before everyone by reducing the rates of their products before others as the difference of few days in launching the new price can shift the customers towards the company.
Along with other FMCG companies, Nestle India said that it will revise its prices in accordance with recent Good and Service Tax rate cut.
The tax rate is reduced from the top bracket of 28% to 18% while a uniform 5% tax was prescribed for all restaurants, for air-conditioned and non-AC.
Nestle India said that it will provide the benefits of the GST rate changes to the customer.
Nestle took the initiative to attract the people by announcing the reduction in rates and is looking into the details of GST rate changes made across the categories to set the new prices.