GST Lapses: Lens on Slow Moving FMCG Benefits

Some lapses have emerged in passing the GST benefits to consumers in FMCG products, leading to companies and distributors blaming each other for the issues with select packs on certain channels even as the government plans action against erring firms and distributor partners. While some companies said the lapses and delays are at the distributors’ end, distributors have alleged that some companies have selectively increased base prices of certain packs. “Distributors can pass only what shows in the system from the company’s end,” the chief of a large distributor entity told ET on the condition of anonymity. “A few large brands have increased base prices of some of their packs, which is not translating to lower prices,” the person alleged. The lapses are particularly being called out in packs of 20 and below, industry and trade executives said. Read more