Consumer durable firms, soft drink makers cry foul over GST rates

While staples and FMCG items are relieved, discretionary goods set to become costlier

The initial cheer over lower tax rates for some mass-consumption consumer goods proved to be short-lived. The detailed goods and services tax (GST) rate of 1,211 items that came late on Thursday night was like the sting in the tail, with major consumer goods firms expressing concerns that the introduction of the new tax regime would lead to price increase of most discretionary items. That includes durables, mobile handsets, aerated drinks and sanitaryware, among others. 

While the rates for most fast moving consumer goods items were in line with expectations, discretionary spending might be hit in a market that already