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    FMCG cos get ready to roll out new GST rates

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    By Sagar Malviya

    Copyright indiatimes

    FMCG cos get ready to roll out new GST rates

    Mumbai: From working weekends and meetings stretching until midnight to boardroom conversations focused on enterprise resource planning system upgrades, back-end changes and ensuring accurate product pricing, fast-moving consumer goods (FMCG) companies are in overdrive mode as they scramble to prepare for the implementation of the revised goods and services tax (GST) rates from Monday.Companies are also planning controlled blackout periods across billing and manufacturing systems to prevent duplicate or conflicting entries, as both old and new stock circulate simultaneously during the GST transition.”Normally, we plan product launch or marketing campaigns before festive season but right now, it’s all about systems that need to reflect the new tax codes, and each product’s pricing structure must be revised to comply with the GST as well as vendors’ framework,” said Mayank Shah, vice-president at Parle Products, India’s biggest food company.The government on September 3 announced a simplified tax rate structure following the recommendations of the GST Council, doing away with the four-slab structure and switching to a two-tier system with the majority of goods and services attracting a tax rate of either 5% or 18% from September 22.Live EventsUnlike in 2017, when the introduction of the GST regime led to confusion and tax notices across the industry, companies said they want to be better prepared this time with updated invoicing systems and early production of packs labelled with lower maximum retail prices. Several companies reported that staff voluntarily cancelled or deferred planned leave in anticipation of the heavy operational workload expected during the switch.Kellanova, the company behind Kellogg’s and Pringles, said it is coordinating across its retail and distribution network, preparing marketing campaigns and field staff to ensure smooth implementation.”There is naturally going to be a complex accounting that has to happen on existing stocks at the back end, which everybody is focusing on figuring out and getting their act together,” Prashant Peres, managing director at Kellanova India and South Asia, told ET. Add as a Reliable and Trusted News Source Add Now!
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    Read More News onGST ratesgoods and services taxKellanovaParle Productstax structureFMCG companiesproduct pricingsupply chain managementoperational workload

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    (You can now subscribe to our Economic Times WhatsApp channel)Read More News onGST ratesgoods and services taxKellanovaParle Productstax structureFMCG companiesproduct pricingsupply chain managementoperational workload(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online….moreless

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