GST rate rationalisation to boost ITC food division

Kolkata, Sep 20 (PTI) The recent rationalisation of GST rates will boost ITC's food division as its nutritional products will become more affordable, a company official said on Saturday.

ITC Limited Executive Director Hemant Malik said the company will pass on the benefits by effecting price cuts across its products.

"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 said.

The Goods and Services Tax (GST) Council recently decided to rationalise the tax rates and have a two-rate structure of 5 per cent and 18 per cent. The revision, to be effective from September 22, will reduce the prices of a large number of products and services.

Since the price cuts will be effective from September 22, the company said that during the transition period, products with new and old MRPs may be available in the market, Malik said.

The company has already announced its ensuing price cuts across its diverse portfolio of FMCG products, including food.

FMCG revenue of ITC touched around Rs 22,000 crore during the last financial year 2024-25.

Malik said a key focus of the strategy framework is to develop nutrition-rich value-added products and make them affordable to consumers.

He said, "The holistic GST reforms by the government would boost consumption of key food products before the festive season." The company's product portfolio in the food division includes biscuits, ghee and flavoured milk, among others. PTI DC BDC