Hailing the Centre’s Goods and Services Tax (GST) reforms, ready-to-eat foods major, ITC Limited, is ensuring rate cuts on its food items like ghee, flavoured milk and biscuits are passed on to consumers.
Highlighting the government’s far-sightedness, the company’s Executive Director, Hemant Malik, said the rate cuts will reflect in nutritional food products becoming more affordable and accessible to the common people.
"The far-sighted GST reforms provide a shot in the arm for ITC foods' overall strategy framework. This will help nutrition reach people by making the products more affordable," he said.
Also Read: GST rejig may escape fiscal burden: Crisil
The GST Council announced on September 3 that the indirect tax structure will have a two-tier tax system comprising the 5 per cent and 18 per cent slabs. The revision, to be effective from September 22, will reduce the prices of a large number of products and services.
ITC said that in the transition period right after the rate cut implementation date, products with new and old MRPs may be available in the market, but Malik said the company’s key strategy will be to develop nutrition-rich value-added products and make them affordable to consumers.
The company, which announced its ensuing price cuts across a diverse portfolio of FMCG products, including food, recorded an FMCG revenue of around ₹22,000 crore during the last financial year 2024-25.
"The holistic GST reforms by the government would boost consumption of key food products before the festive season,” Malik said.
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