Fast Moving Consumer Goods (FMCG) and consumer durable companies are apprehensive about the impact of GST and its implementation upon the upcoming festive season. The companies want to avoid any adverse effect on the critical third quarter sales. Sunil Duggal, Chief Executive, Dabur, hopes to streamline all GST issues preferably by late August to lessen the impact of GST.
This year the festive season would have an early onset beginning in the last week of September. The prices of consumer durables such as TVs, washing machines, ACs will increase as they have been bracketed under 28% slab rate. Presently, the above-mentioned consumer durables attract a tax incidence of 23-24 per cent.
Moreover, firms are contemplating to introduce the price hike by implementing it in two phases so as to soften the impact on consumers.