ENA Economy 2025-09-04 18:15:45 <p><span style="font-size:14px"><strong>New Delhi, Sep 4 (KNN)</strong> The Fast-Moving Consumer Goods (FMCG) sector is set to benefit after the Goods and Services Tax (GST) Council approved lowering the tax rate on several essential items to 5%. </span></p> <p><span style="font-size:14px">The change, effective from September 22, 2025, is expected to reduce prices and encourage consumption, especially among rural and semi-urban households.</span></p> <p><span style="font-size:14px">Items such as soaps, toothbrushes, hair oil, namkeen, instant noodles, chocolates, and instant coffee will now attract a 5% GST. Additionally, bread, paneer, and ultra-high temperature (UHT) processed milk have been exempted from GST, making them more affordable for consumers. </span></p> <p><span style="font-size:14px">Finance Minister Nirmala Sitharaman highlighted that the move is aimed at enhancing accessibility to essential goods and providing relief to households.</span></p> <p><span style="font-size:14px">Industry leaders have welcomed the decision. Devendra Shah, Chairman of Parag Milk Foods, said that the lower tax burden would make dairy products more accessible, potentially boosting consumption and benefiting farmers with more stable incomes. </span></p> <p><span style="font-size:14px">Rishabh Jain, CFO of Bikaji Foods International, mentioned that the company is assessing the impact of these reforms on input and output taxes and plans to adjust prices accordingly.</span></p> <p><span style="font-size:14px">The All India Consumer Products Distributors Federation (AICPDF), representing over 450,000 distributors and 13 million kirana retailers, praised the GST rationalisation. The federation expects the change to lower prices, improve affordability, and increase consumption, benefiting households nationwide. </span></p> <p><span style="font-size:14px">They also thanked the finance minister for addressing sector concerns and supporting smoother inventory management for traders.</span></p> <p><span style="font-size:14px">Overall, the GST revision is expected to drive growth in the FMCG sector by 2 3 percentage points, strengthening the supply chain from manufacturers to retailers and enhancing overall market efficiency.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 43396 https://knnindia.co.in/news/newsdetails/economy/fmcg-sector-gains-as-daily-essentials-move-to-5-gst-slab 2025-09-04 18:15:45 knnindia.co.in