New Delhi, Sep 5: The fast-moving consumer goods (FMCG) sector is poised for a structural reset following the rollout of GST 2.0, which simplifies the existing four-tier tax system into two main slabs\u20145% and 18%\u2014with a 40% rate for sin and luxury goods, according to a report by Axis Securities on Friday.<\/p>\n\n\n\n
\u201cFor FMCG companies, the reform is expected to unlock volume growth, strengthen rural penetration, and enhance profitability, reshaping the sector\u2019s growth trajectory in the years ahead,\u201d the report said.<\/p>\n\n\n\n
The new GST slabs, effective September 22, have been timed strategically ahead of the festive season to boost affordability and drive consumption.<\/p>\n\n\n\n
Staples such as milk, paneer, and Indian breads will now attract nil GST, down from 5%. Packaged foods including namkeen, bhujia, noodles, biscuits, pastries, chocolates, juices, and personal care products like toothpaste, shampoos, soaps, and hair oil will now attract only 5% GST, compared with the earlier 12\u201318% slab.<\/p>\n\n\n\n
\u201cThis is expected to lift consumption across both rural and urban markets, benefiting companies such as Britannia, Nestle, Colgate, HUL, Dabur, as well as players like Bikaji, Marico, and Emami,\u201d the report added.<\/p>\n\n\n\n
Beyond rate reductions, GST 2.0 aims to streamline compliance, reduce litigation, and improve ease of doing business, creating a more transparent and predictable tax environment.<\/p>\n\n\n\n
The report described GST 2.0 as a landmark pro-consumption reform, with its festive-season timing likely to boost consumer sentiment and encourage discretionary spending. While the government may face short-term fiscal trade-offs, the reform is expected to deliver long-term benefits through higher consumption, smoother compliance, and capacity expansion, making it a structural positive for India\u2019s economic growth.<\/p>\n","protected":false},"excerpt":{"rendered":"
New Delhi, Sep 5: The fast-moving consumer goods (FMCG) sector is poised for a structural reset following the rollout of GST 2.0, which simplifies the existing four-tier tax system into two main slabs\u20145% and 18%\u2014with a 40% rate for sin and luxury goods, according to a report by Axis Securities on Friday. \u201cFor FMCG companies, […]<\/p>\n","protected":false},"author":1,"featured_media":25444,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[15,1],"tags":[],"class_list":["post-25437","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-national","category-politics"],"yoast_head":"\n