Will GST 2.0 Bring New Packages with Lower MRPs and Higher Weights by December?
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Synopsis
Discover how GST 2.0 reforms are set to transform the FMCG landscape in India. New packages with reduced MRPs and increased weights are expected by December. Join us as we explore the implications of these changes for consumers and businesses alike.
Key Takeaways
- New packages with lower MRPs and higher weights are coming by December.
- Initial focus on larger and higher-priced packages.
- Smaller packages will follow, impacting 60-70% of the market.
- GST reforms effective from September 22 aim to reduce tax burdens.
- Enhanced purchasing power and ease of business expected for consumers.
Mumbai, Oct 13 (NationPress) In light of the recent GST 2.0 reforms, new product packages featuring reduced maximum retail prices (MRPs) and increased weights are set to hit the shelves by December, as shared by Parle, a prominent player in India's fast-moving consumer goods (FMCG) sector.
During the 'Ignite Conclave' hosted by NDTV Profit, Vice President Mayank Shah highlighted the challenges FMCG companies face in adjusting pricing in response to the GST changes.
The tax reductions have led to confusion over package sizes, weights, and pricing structures. This matter has been extensively discussed, with the average time for FMCG companies to revise their product packaging taking between one and a half to two months, he noted.
On the timeline for these new packages, Shah indicated that the initial phase will focus on reducing the MRPs for larger and higher-priced packages.
Eventually, smaller packages that typically have lower MRPs—constituting about 60-70% of the market—will undergo revisions. Consumers can expect these changes to become evident by late November or early December.
Shah illustrated the revised pricing, stating that a Rs 5 packet might now be priced at Rs 4.5, while a Rs 10 packet could drop to Rs 9.
The new GST reforms, effective from September 22, have significantly lowered taxes across various sectors, from daily necessities to automobiles.
Earlier this month, NK Singh, the Chairman of the 15th Finance Commission and a noted economist, remarked that the GST reforms have brought substantial relief to the average citizen. They have not only enhanced purchasing power but also improved the business landscape.
"The effects of the GST reforms are starting to emerge. They have bolstered purchasing power and eased the financial burden on the common citizen. Furthermore, they have greatly enhanced the business and investment climate, fostering easier operations for businesses," Singh commented.
He went on to mention, "The nation holds an expansive market that remains largely untapped, presenting significant opportunities for both private investment and public-private partnerships."
Point of View
It is crucial to remain informed about how these reforms will affect both consumers and businesses. The adjustments in pricing and packaging will play a significant role in the market dynamics, and staying aware will ensure that we make the most of these changes.
NationPress
14/10/2025
Frequently Asked Questions
What is GST 2.0?
GST 2.0 refers to the recent reforms in the Goods and Services Tax system in India, aimed at simplifying tax structures and reducing rates on various products.
When will the new packages be available?
The new packages with lower MRPs and higher weights are expected to be available by December.
How do these changes affect consumers?
Consumers can expect lower prices on popular products, making everyday shopping more affordable.
Who is Parle?
Parle is one of India's leading fast-moving consumer goods companies, known for its extensive range of products.
What impact do the GST reforms have on businesses?
The GST reforms are designed to enhance the ease of doing business and improve the overall investment climate in the country.
