To pass on the benefits to the consumers due to the new GST regime, Oral care leader, Colgate India have dropped the prices on toothpastes and toothbrushes by 8-9%. With this move from Colgate India, it is expected that other companies will also reduce their prices. Post-GST, the tax rate on toothpastes has come down from around 24% to 18%.
According to the Colgate spokesperson these new prices will be applicable from July 1 and the implementation of GST will greatly enhance there ease of doing business in the country.
Colgate Strong Teeth (100 gm) which was earlier priced at ₹52 will now be available at ₹46. Similarly, Colgate SlimSoft Toothbrush’s price has been dropped from ₹65 to ₹60.
According to Edelweiss Research report companies with high proportion of wholesale trade will be impacted more as channel checks indicate that quite a few wholesalers have still not registered under GST. Therefore in the case of Colgate which has a higher dependence on the wholesale channel, it is expected that its volume will be decline by around 7-8%.