Consumer product manufacturers are mulling over varied strategies to keep their foothold in the market post GST

India Infoline News Service | Mumbai | April 10, 2017 08:43 IST

Indian markets and India Inc., is all geared up for the mega debut of GST on July 1. The consumer products manufacturing companies are spending more time in their board rooms to lay a robust strategy for staying afloat in the post-GST era. Experts believe that GST is the biggest change in the tax fabric of the country since independence, and this will change the business climate of the country within the coming few months.

Indian markets and India Inc. is all geared up for the mega debut of GST on July 1. The consumer products manufacturing companies are spending more time in their board rooms to lay a robust strategy for staying afloat in the post-GST era. Experts believe that GST is the biggest change in the tax fabric of the country since independence, and this will change the business climate of the country within the coming few months. 
As a part of their future strategy, HUL Hindustan Unilever and Proctor and Gamble (P&G) are playing it safe to shield themselves from the impact of the GST. HUL has already given a push to their production by anticipating a steep tax cut after GST, and on the other hand, the P&G has spiked their prices to keep the options open for a price roll back by protecting their operating margins, once GST forays into the market, informed an industry insider. 
Experts are expecting that the retail goods might witness a tax rise of 18% and 28% under GST. While the management of HUL believes that tax will come down from 23%, and P&G thinks that tax will soar after the GST roll out, says an analyst. The experts are also expecting a massive de-stocking move due to non-clarity on GST rates. 

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