Under GST, which got implemented from June 30 midnight, there will be no tax on fresh milk
FMCG giant, Nestle India said that it will pass on benefits of reduced tax rate under GST on various products such as milk powder to consumers once the new tax regime kicks in.
There has been considerable reduction in GST rate on milk powders and consequently the price of Nestle Everyday Dairy whitener is expected to undergo commensurate reduction, the company said in a statement.
Under GST, which got implemented from June 30 midnight, there will be no tax on fresh milk.
The company stated, "In categories where there are reductions in taxes, appropriate price reductions would be put into effect for stocks manufactured from July."
Nestle India further said there would be a transition time before new price stocks are available in the market.
Suresh Narayanan, Chairman & MD, Nestle India, said, "We believe that over time, this (GST) will unleash economies of scale and economies of efficiencies that can be quite significant."
He said, "The company is passing on the benefits of lower taxes, wherever applicable, to its consumers."