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GST: Retailers’ Fear Dispelled by FMCG Firms

FMCG Firms allay retailers' fears

Retailers fear that they may struggle to sell the old stock lying with them post GST implementation from July 1 onwards. They are returning the goods to the manufacturers in their inventory in a bid to lower their stocks and incur zero loss. FMCG giants such as Hindustan Unilever Ltd (HUL), Godrej Consumer Products Ltd (GCPL) and Dabur India Ltd are sending out communiques and reaching out to distributors and major retailers to dispel their apprehensions.

HUL wrote to its trade partners assuring them that any difference in tax incidence would be reimbursed by them upon fulfillment of necessary documentation. Though, it is expected that there will be short term pains post GST roll-out due to lower inventory and companies will take a hit on the pending stocks with the distributors.

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