Keeping detergents and cosmetics under 18 per cent tax rate with zero savings on these daily-use items for households under the government's sweeping GST restructuring move is surprising, say industry players and analysts.

The GST Council last week decided to reduce taxes on most of the common-use goods as part of the government's measure to boost consumer spending. 

The new structure of GST, which comes into effect on September 22, will have two slabs of 5% and 18% instead of the current four slabs of 5, 12, 18 and 28%.

Fast-moving consumer goods (FMCG) products such as hair oil, soap, face powders, shampoos, toothbrushes, and toothpaste have come under the lower slab of 5 per cent from 18 per cent.

However along with detergents and cosmetics, duty on several items such as hair dye and household insecticides has not been reduced.

FMCG companies say they are ready to pass on the benefits of the duty cuts to consumers, even though they will have to face challenges on the existing stock at retail stores.

Industry players as well as experts have also expressed concern over the GST Council's decision not to reduce the duty on essential items such as detergents, which are available in bar, powder and liquid format.