New Delhi, Sept. 12 -- In India's switch to a lighter GST regime 10 days hence, two transitional aims of the Centre are amply clear. Sweeping tax cuts must translate into lower prices, as the goal of this reset hinges on this, and people at large should see it happen. Pricing transitions, though, can be tricky.

Take the case of packaged products whose packages must bear maximum retail prices (MRPs) and distribution networks are already loaded with inventory that shows old prices. In the fast moving consumer goods (FMCG) sector, a common strategy of using easily grasped 'price points' for low-priced items-say, Rs.10 or Rs.20-means that companies must enlarge their packs to pass on GST relief.

This reversal of 'shrinkflation' will take ti...