Did You Know: What GST brings in store

Did You Know: We all scream ice cream, as the price of ice cream is set to condense
PackMan brings good news for ice cream enthusiasts — ice cream manufacturers are reducing the price of their products following the reduction of the Goods and Services Tax (GST) on ice cream from 18% to 5%. PackMan can confirm that Amul has slashed its ice cream price, ranging from its one-litre vanilla ice cream tub to its 55-millilitre strawberry and vanilla ice cream cups. In addition, Mother Dairy has reduced its ice cream price, with some products seeing a reduction of INR 30. PackMan thinks now is the perfect time to grab yourself a sweet treat.

Did You Know: GST slabs act as a double-edged sword, with consumers celebrating and the supply chain adjusting
While the reduction of GST slabs on mass consumer goods, including shampoo, toothpaste, and food items, is consumer-friendly, PackMan wonders what’s happening behind the scenes. Well, manufacturers, retailers, distributors, and the entire supply chain are experiencing a squeeze in the margins. 

PackMan hears complexities are arising backstage. With the 12% and 18% GST slab, players in the supply chain could claim input tax credit (ITC); now, there is a pinch. The GST slabs of rentals, advertising, and logistics remain the same, offering no relief to players. Our in-house gyaani warns players in hotel accommodation, wellness, and specific transport services to buckle up, as the ITC is blocked in their case.

Did You Know: It is voluntary to use the revised price stickers on consumer goods until the stock is exhausted or until 31 March 2026
PackMan notes that there is some relief as the ministry of consumer affairs issues provisions allowing for the voluntary use of revised price stickers on consumer goods. Price stickers, wrappers, and packaging on unsold goods manufactured before 22 September, consisting of old maximum retail price (MRP), can be used until 31 March 2026 or until the stocks are exhausted — whichever happens first. Following this, manufacturers and firms must communicate the revised price through price stickers, wrappers, and packaging. 

Did You Know: You can ‘add to cart’ apparel and footwear a little guilt-free as prices drop
PackMan says it is true, the price of apparel and footwear witnesses lower GST slabs; it is indeed time to go shopping. The tax on apparel priced between the range of INR 1000 to INR 2500 will be reduced to 5% from its previous 12%. Accessories priced above INR 2500 are increased from 12% to 18%. PackMan notes another complexity arising — one concerning time. As the festive season approaches, retailers face a complex situation, with retailers being sandwiched between the GST reset and steep festive discounts.

Did You Know: New inventory with revised price stickers reaches store shelves
PackMan has observed that lower-cost consumer goods have reached store shelves. The GST slabs for butter, cheese, and other salty snacks have reduced from 12% to 5%, while biscuits, coffee, ice-cream, hair oil, shampoo, and soaps are experiencing GST reduction from 18% to 5%. Stores are stocking lower-cost goods to avoid last-minute hassles, and FMCG firms are anticipating the new GST slabs to revive sales. With this, it is time for PackMan to go snack shopping.