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  Business   Companies  02 Jul 2017  HUL cuts prices of select products post GST

HUL cuts prices of select products post GST

PTI
Published : Jul 2, 2017, 4:49 pm IST
Updated : Jul 2, 2017, 4:49 pm IST

The company has slashed the price of its detergent soap Rin bar of 250 gm to Rs 15 from Rs 18.

GST council has put daily usage goods as bathing soap, hair oil, detergent powder, soap, tissue papers and napkins under 18 per cent tax slab.
 GST council has put daily usage goods as bathing soap, hair oil, detergent powder, soap, tissue papers and napkins under 18 per cent tax slab.

New Delhi: FMCG major HUL has reduced the prices of some of its detergents and soaps, extending the tax benefits the company has got under the GST regime to consumers.

The company has slashed the price of its detergent soap Rin bar of 250 gm to Rs 15 from Rs 18 and increased weight (grammage) of its Surf Excel bar costing Rs 10 to 105 gm from 95 gm at the same price. Besides, it is also offering 33 per cent extra in Dove bathing bar.

 

"HUL has already communicated that it shall pass on the net benefits from tax rates as per fair principles," a company spokesperson told PTI.

"We have already announced changes with effect from today for the despatches made from July 1 onwards," the spokesperson added.

The company has brands such as Wheel, Rin, Surf Excel, Comfort, Sunlight, vim, Domex in the home care segment while in personal care it has brands such as Lux, Liril, Hamam, Sunsilk, Rexona, Lifebuoy, Dove, Pears etc.

The company said any "further changes will be communicated in due course" on other products. However, HUL did not comment over the issue of hike in margins on its products demanded by modern retail outlets.

 

"As a matter of policy, we do not comment on mutual terms of trade with our distributors and other business associates," the spokesperson said. Under the GST regime, tax credit system is reducing the absolute margins available to modern trade retailer and they are asking to retain at VAT level.

The GST council has put daily usage goods as bathing soap, hair oil, detergent powder, soap, tissue papers and napkins under 18 per cent tax slab.  

Tags: hindustan unilever ltd, price cut, fmcg products, gst, gst council, goods and service tax
Location: India, Delhi, New Delhi