consumer goods
GSAT rates in the country have come into effect from 22 September 2025. Meanwhile, many household items have become much cheaper after coming in the 5 percent slab. But on the other hand, the prices of some have also increased. Especially the items used in bulk products. Consumer goods manufacturing companies are continuously refraining from increasing prices despite the increase in the prices of raw materials of many types of goods. Because they fear that if they increase prices after the recent GST cut, the government may start investigating whether companies are making excessive profits.
According to the ET report, senior officials of big companies in industries like soap, biscuits, detergent, automobile and consumer electronics said that they are planning to talk to the government and GST department through industry organizations to get clear information about the rules regarding price increase. Auto companies, which usually increase prices in January, are now facing higher expenses on imported parts due to the rupee’s depreciation. But this time they can postpone the decision to increase the prices, if till then they do not get any clear answer from the government.
Prices of these things will not increase
Maruti Suzuki and Hyundai Motor are still considering their decision. Consumer electronics major LG is avoiding increasing the prices of TVs and air-conditioners so as not to burden customers too much, even though global memory chip prices have increased by 60% and due to new AC energy rules from January, it is necessary to increase the prices by 6-9%.
According to the sales head of a big biscuit company, it is believed that the government is currently emphasizing on increasing people’s purchases, hence the companies will not want to increase the prices till March 2026. A senior official of a big auto company said that the companies have removed the discounts given during the festival season, but even on popular models, despite the strong demand, they have not increased the price of the vehicle.
against inflationary pressure
Usually, companies announce price increase from January to clear the old stock of December. But this time the problem is in supply. There is a waiting period going on for popular models. Demand remains strong even after festivals.
In an ET report, Wipro Consumer Care said that it will bear the increased costs for the time being as reducing prices due to GST cut will increase sales and this will reduce the impact of increased costs on margins. Wipro Consumer Care and Lighting Chief Executive Vineet Aggarwal said that we are not planning to increase prices at least till the end of January. But it will also depend on what our competing companies do.