Kolkata, Sep 4 (PTI) Companies operating in the fast moving consumer goods (FMCG) segment have hailed the government's move to cut GST on several items which would spur consumption demand in the economy.

The structural reforms will undoubtedly benefit MSMEs and farmers who form the backbone of the economy, Chairman and Managing Director of ITC Limited Sanjiv Puri said.

"I would like to compliment the finance minister for ushering in a transformative, bold and comprehensive next-generation GST architecture. The GST rate rationalisation across various sectors will bring relief to the consumers through enhanced affordability and will spur consumption, drive investment and growth in the economy, leading to employment generation," Puri said.

Vice-chairman and MD of Emami Limited, Harsha Varshan Agarwal, said the proactive step to reduce GST is a “game-changing” move that will significantly boost consumption in rural India.

“GST rate cuts, coupled with income tax relaxation, lower repo rates and a good monsoon will create a powerful ecosystem to drive growth,” Agarwal said.

"For Emami, the priority is to pass on the GST benefits to the consumers as soon as possible so that greater value is created for them. This move has the potential to boost consumption across segments in the country," he said.

CFO of Godrej Consumer Products Limited (GCPL) Aasif Malbari said, "We welcome the government initiative of lowering taxes to boost consumption." This is a positive trigger for demand creation, he said.

“GCPL has soap brands in its portfolio. We are fully committed to ensuring that the GST rate reduction benefits are passed on to the consumers," Malbari said.

Co-founder and Chairman of Joy Personal Care, Sunil Agarwal, said the government's decision to reduce GST on daily essential items from 18 per cent to five per cent is a commendable step that will benefit consumers and energize the FMCG industry.

“Rural India has been driving FMCG growth for six consecutive quarters, and this move will further strengthen rural demand, even as urban consumption continues to recover. The GST rate cut on several FMCG items will give the industry the much-needed boost," he said.

MD of Mother Dairy, Manish Bandlish, said, "We commend the decision to cut GST rates on a wide range of dairy products including paneer, cheese, ghee, butter, UHT milk, milk-based beverages and ice creams. This progressive step will boost accessibility of value-added dairy products. We remain committed to ensuring that the advantages of the GST reforms are effectively passed on to our consumers." PTI dc NN

GST rate reduction on FMCG essentials to spur consumption and improve affordability as industry pledges to pass benefits. Reduction of GST rates on various FMCG items, notably daily essentials and multiple dairy products, is framed as improving affordability and stimulating consumption, with expected benefits for MSMEs and agricultural producers. Leading FMCG companies have stated their intention to pass on the tax savings to consumers to boost demand, particularly in rural markets, and view the measure as supporting broader economic growth and employment.