The current rationalisation of GST rates will improve ITC’s food department as its dietary items will end up being more inexpensive, a business authorities stated on Saturday.
ITC Limited Executive Director Hemant Malik stated the business will hand down the advantages by effecting cost cuts throughout its items.
“The far-sighted GST reforms provide a shot in the arm for ITC foods’ overall strategy framework. This will help nutrition reach people by making the products more affordable,” he stated.
The Goods and Services Tax (GST) Council just recently chose to rationalize the tax rates and have a two-rate structure of 5 percent and 18 percent. The modification, to be reliable from September 22, will lower the rates of a great deal of services and products.
Considering that the cost cuts will work from September 22, the business stated that throughout the shift duration, items with brand-new and old MRPs might be readily available in the market, Malik stated.
The business has actually currently revealed its taking place cost cuts throughout its varied portfolio of FMCG items, consisting of food.
FMCG earnings of ITC touched around Rs 22,000 crore throughout the last fiscal year 2024-25.
Malik stated a crucial focus of the method structure is to establish nutrition-rich value-added items and make them inexpensive to customers.
He stated, “The holistic GST reforms by the government would boost consumption of key food products before the festive season.”
The business’s item portfolio in the food department consists of biscuits, ghee and flavoured milk, to name a few.
