Consumers to Get Full Benefit of GST Rate Cuts as ITC Updates FMCG Prices

After the central government-led GST council decided to revamp the economy’s current tax structure, the fast-moving consumer goods (FMCG) giant ITC Ltd announced on September 18, 2025, that it has decided to pass on the full benefit to its customers across the firm’s portfolio.

ITC Bringing Required Relief to Consumers

ITC executive director B. Sumant stated that the changes have been revolutionary for businesses and consumers alike, facilitating compliance and fostering expansion. He went on to say that the rationalisation of the GST rate in a number of sectors will undoubtedly benefit consumers by increasing affordability, stimulating consumption, and bolstering investments, growth, and jobs.

The full advantages of the GST rationalisation will be transferred to all relevant products at ITC. According to the corporation, its FMCG companies reach about 7 million retail locations throughout India and cover a broad range of categories and goods. In contrast to its previous multi-slab structure, the national government’s GST Council suggested that India have two GST tax slabs, one at 5% and another at 18%, during its 56th meeting on September 3, 2025. On September 22, 2025, the revised GST structure is scheduled to go into force.

Like ITC, Maruti SuZuki Also Announced Price Cuts

As a result of the GST council’s rate rationalisation decision, automakers such as Maruti Suzuki announced their own price reductions. The sub-four-metre car market, which makes up a major amount of the company’s portfolio, is currently being capitalised on by India’s largest automaker.

Maruti Suzuki passenger cars will be up to INR 1.29 lakh less expensive starting on September 22, 2025, the day the revised GST structure goes into effect, according to earlier reports from a number of media outlets.

Following the GST rate reductions in the Indian economy, additional automakers, including Mahindra & Mahindra, Tata Motors, TVS Motor Co., Yamaha, Honda Automobiles, and Hero MotoCorp., have announced price reductions on the ex-showroom prices of their vehicles.

It is anticipated that these price cuts will increase consumer spending and maybe increase demand for these commonplace items. Additionally, the action shows that the FMCG industry is committed to transferring the advantages of tax cuts to final customers.

Customers are anticipated to embrace the price cuts for these well-known FMCG brands, which could result in higher sales volume in the upcoming months. These price reductions may further encourage consumer spending in the FMCG industry as the festive season draws near.