 "The Nestle logo is pictured on the company headquarters entrance building in Vevey, Switzerland")
FMCG major Nestle India on Friday said 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 a 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 will be implemented from midnight tonight, there will be no tax on fresh milk.
"In categories where there are reductions in taxes, appropriate price reductions would be put into effect for stocks manufactured from July," it said.
Nestle India further said there would be a transition time before new price stocks are available in the market.
"We believe that over time, this (GST) will unleash economies of scale and economies of efficiencies that can be quite significant," Nestle India Chairman & Managing Director Suresh Narayanan said.
He said the company is passing on the benefits of lower taxes, wherever applicable, to its consumers.
Nestle India also said in preparation for GST rollout, it has engaged and trained over 3,500 suppliers, over 1,600 distributors covering the entire direct value chain of the company, with awareness programmes across India.
