India’s leading consumer goods companies, including Hindustan Unilever Ltd, Procter & Gamble, and L’Oréal, have issued notifications to their trade partners regarding the upcoming reduction in Goods and Services Tax (GST) on a range of household essentials.
L’Oréal India has informed its distribution network that starting 22 September, the GST on shampoos and face powders will be reduced from 18 percent to 5 percent. According to the company’s communication, invoices raised until 21 September will continue to reflect the existing GST rates. From 22 September onward, bills for these products will apply the new lower rate. The company has also confirmed that revised maximum retail prices are being worked out. Retailers have been assured that stock purchased before the change and sold afterward will be eligible for full input tax credit.
The GST revision is expected to bring down the cost of several household items, with companies simultaneously working to clear existing inventories and prepare for the transition to new pricing.
Hindustan Unilever has launched a promotional campaign titled ‘Retailer Bonanza’ running from 11 to 20 September. The offers span across multiple product categories, including a 4 percent discount on all soaps except Moti, a 7 percent discount on Moti soaps, 20 percent on small and medium shampoo bottles, 10 percent on large shampoo packs, and 20 percent on XL and XXL sizes. Indulekha hair oil is being offered with a 7 percent trade margin, while Clinic Plus and Clear oils have an 11 percent margin. Talc and face powders are carrying 11 percent, oral care brands such as Pepsodent and Close Up packs are at 8 percent, food brands Horlicks and Boost are offered at 5 percent, and beverages including coffee and Red Label premix have been listed at 7 percent.
The adjustments reflect efforts by major FMCG firms to align with the new tax structure while ensuring a smooth transition for trade partners and consumers alike.