As the biggest GST price reset is on the anvil, CNBC-TV18 stepped out on September 19 to do a ground reality check on how prepared retailers, chemists, distributors and auto dealers are for this sweeping GST rate cut that is to take effect from September 22.
From kirana shelves and pharmacy counters to auto showrooms, businesses are racing to update systems, relabel goods and align distribution networks — but with varying levels of readiness.
With just days left for one of the most significant tax cuts in recent years, consumers are expecting lower prices across categories ranging from daily medicines and essential groceries to big-ticket items like cars. The government has made it clear that it expects retailers to reflect the revised rates immediately in shopping bills, but preparations on the ground show the transition will not be seamless.
Chemists relabelling challenge
At pharmacies, the key hurdle lies in relabeling medicine packs and updating billing software. “We’ve got the revised lists from distributors, but updating software and relabeling medicine strips is tricky. Customers expect lower bills immediately, so the transition needs to be quick and clear,” said, owner of Healthcare Pharmacy in Delhi.
To speed up the process, the All India Organisation of Chemists and Druggists (AIOCD) has asked pharmaceutical companies to issue QR-code-based price lists. This will allow retailers to quickly verify revised prices without waiting for relabeled stock. However, smaller chemist shops and kirana stores have been directed to sell goods at the lower prices even if old MRPs remain on labels — a move that could create confusion at billing counters in the initial days.
FMCG distributors waiting for fresh stock
For fast-moving consumer goods, distributors are updating warehouses and supply chains, but say full benefits will take time to reflect on shelves. “Companies have started informing us about new MRPs. Fresh stock will carry revised prices, but older goods already on shelves can’t be relabeled overnight. It will take some time for consumers to see the full impact,” said Pushpendra Pratap, owner of Aaradhya Enterprises, an FMCG distribution firm.
Industry executives say the changeover will play out over weeks, with fresh batches of products bearing revised MRPs gradually replacing old stock.
Car dealers easier transition, but inventory pain
In the auto sector, the adjustment is proving smoother. Carmakers have already announced revised price lists, and dealers are preparing to issue invoices under the new tax regime.
“Any car invoiced after the 22nd will automatically reflect the revised GST. Customers are already asking how much they can save if they wait a couple of days,” an industry expert said.
However, dealers point out that with the removal of the compensation cess, there is still no clarity on how to adjust tax credits on cars already in inventory — a gap that could impact margins.
Consumers set to gain
Despite the teething troubles, analysts say consumers will start seeing immediate price relief, particularly in high-volume categories like medicines, packaged foods, and automobiles. The scale of the GST rate cut makes it one of the most visible resets in recent years.
As businesses race to update systems, clear old stock, and relabel products, the real test will begin on September 22 — when Indian consumers will look for their first taste of lower bills at cash counters.
