Key points
- GST 2.0 with new rate cuts took effect from September 22, but most retail prices remain unchanged due to old inventory pricing.
- Retailers say they cannot pass on benefits on pre-reform stock without incurring losses; price updates likely in 8–10 days.
- Government has directed businesses to pass on tax-cut benefits, but ground-level compliance is still lagging.
- Items like noodles, pasta, toffees, candy, soaps, shampoos, hair oil, biscuits, some foods, ghee, and butter are still billed at old rates in many shops.
New Delhi: GST 2.0 took effect on the first day of Navratri after the Prime Minister Narendra Modi’s September 21 address, promising relief on several daily-use categories. On the ground, however, consumers reported that MRP and billing at neighborhood stores and kirana outlets remained largely unchanged on September 22. Retail invoices and shelf pricing for noodles, pasta, confectionery, soaps, shampoos, hair oils, biscuits, packaged foods, and medicines continued at old rates, leading to confusion about the actual date of relief.
Why the benefit is delayed
Small retailers and distributors say they are holding pre-GST 2.0 inventory purchased at higher tax incidence, and immediate markdowns would mean straight losses. Many expect wholesalers and brands to issue revised price lists, credit notes, or replacement stickers before passing on benefits. As a result, consumers may see gradual price corrections over the next 8–10 days as fresh batches arrive and billing systems update.
Shopkeepers still billing at old GST for FMCG
Despite the government’s cut from 12% to 5% on various packaged foods and confectionery, shopkeepers in multiple sectors continue to charge at the old slabs, citing unresolved stock and billing alignments. This gap is most visible in quick-moving FMCG such as noodles, pasta, sugar syrups, toffees, and candy where per-unit margins are thin and inventory churn is ongoing. Retailers say they will pass on benefits once suppliers formalize revised tax invoices and MRP changes.
Dairy fats: ghee and butter still pricey
Even where ghee and butter fall under lower tax incidence on paper, many local markets are still selling at pre-change prices. Dairy distributors typically operate on weekly dispatch cycles and are awaiting updated rate cards and relabeled packs. Price relief is likely to reflect first in organized retail and then trickle to neighborhood stores as replenishments come through.
Government’s directive vs. ground reality
Authorities have asked retailers and brands to pass on rate-cut benefits from September 22, but execution depends on the supply chain’s ability to re-invoice, relabel, and clear old stock. Without anti-profiteering enforcement or immediate MRP adjustments from brands, many small shops are reluctant to sell below their landed cost. Consumers may see clearer benefits once new consignments with revised MRPs enter shelves and billing software is updated.
What consumers can expect next
- Look for revised MRPs: Benefits will be most visible on new stock with updated labels or shelf tags.
- Organized retail first: Large-format stores typically update billing systems faster; price drops may appear earlier there.
- Invoices matter: If billing still reflects old slabs, ask if new stock is expected soon and whether updated pricing will be applied.
- Staggered rollout: Expect phased corrections over 1–2 weeks as distributors flush old inventory and replenish with GST 2.0-compliant pricing.
