FMCG distributors seek clarity, compensation on GST rate change
FMCG companies are awaiting government guidelines to manage existing inventory with printed MRP under the current GST regime as they transition to a new system with reduced duties. While the shift is expected to boost consumption, short-term disruptions are anticipated due to existing stocks.
FMCG distributors have sought clarity from consumer goods companies on how to deal with existing stocks at warehouses and retail stores if those were not cleared before September 22 when the revised GST rates would become effective. They also sought compensation for any losses they might incur.
"Unless companies provide a clear mechanism for price adjustment, credit notes or compensation, distributors will suffer financial losses during billing.
