Mumbai, Sept. 8 -- Distributors of fast-moving consumer goods have written to large FMCG companies, asking them to issue clear written guidelines and establish compensation mechanisms (such as credit notes, price protections, or inventory adjustment plans) before the new Goods and Services Tax (GST) rates kick in on 22 September.

A letter issued by the All India Consumer Products Distributors Federation (AICPDF) read, "Distributors are currently holding significant stock purchased at the pre-reform GST rates. Unless companies provide a clear mechanism for price adjustment, credit notes or compensation, distributors will suffer financial losses during billing at revised rates post-22nd September. This uncertainty is creating hesitation in...