Yet, we feel that a 16-18% tax bracket would be positive for our industry,” he said. Godrej Consumer Products managing director Vivek Gambhir said the company is awaiting clarity on applicable GST and is yet to ascertain their impact on categories. “If the GST rate for FMCG is above 22%-23%, it could be inflationary and may further delay the recovery of the sector.Alternatively, a rate of around 18% would spur growth. Consumers would consequently benefit from the lower tax rates and we could witness an uptick in demand,” he said. The existing excise duty on soft drinks is 18%.For the consumer durable industry, the current effective tax rate including VAT and excise is around 22-24%, varying from state to state.

Source: Economic Times October 19, 2016 18:56 UTC