FMCG Companies Announce Price Cuts on Essential Goods after GST Reduction
New Delhi, September 21 – Leading fast-moving consumer goods (FMCG) companies have announced a reduction in prices of several daily-use items following the recent cut in Goods and Services Tax (GST) rates. Starting Monday, essential products such as soaps, detergents, coffee, diapers, biscuits, ghee, and edible oils will become cheaper. The move is expected to boost consumption and sales during the upcoming festive season, which begins with Navratri.
Companies have acted swiftly to pass on the benefits of GST 2.0 to consumers without delay. From September 22, revised maximum retail price (MRP) lists will take effect for products such as soaps, shampoos, baby diapers, toothpaste, razors, and after-shave lotions. The intent is to ensure that consumers receive the direct benefit of the GST rate reduction.
Procter & Gamble, Emami, and Hindustan Unilever Limited (HUL) are among the major companies that have released new price lists. Information about these changes has been shared with distributors and consumers through company websites. Procter & Gamble has reduced prices of products under its popular brands including Vicks, Head & Shoulders, Pantene, Pampers, Gillette, Old Spice, and Oral-B. In particular, prices of childcare products have been lowered, with the GST on diapers reduced from 12 percent to 5 percent and on baby wipes from 18 percent to 5 percent, effective September 22, 2025. The company has also announced reductions on Gillette and Old Spice products.
Emami has lowered prices of Boroplus antiseptic cream, Navratna Ayurvedic oil, and Zandu balm, while HUL has reduced prices of products across categories, including Dove shampoo, Horlicks, Kissan jam, Bru coffee, Lux soap, and Lifebuoy soap.
As per agency report, these price revisions follow the decision of the GST Council earlier this month to rationalize the tax structure. The four-tier system has been replaced by two slabs of 5 percent and 18 percent, while luxury goods will now attract a special rate of 40 percent. Excluding cigarettes, tobacco, and related items, the new GST rates will come into effect from September 22.
The revised prices are expected to provide relief to consumers and encourage higher demand during the festive season.
