Mumbai, Sept. 29 -- Hindustan Unilever (HUL) on Friday said the latest Goods and Services Tax (GST) reforms are a positive step to drive consumption, with around 40% of its portfolio now benefiting from a reduced GST rate of 5% against the earlier 12-18%. The categories include soaps, toothpaste, shampoo, hair oil, talcum powder, lifestyle nutrition and foods.

The company said it has passed on the benefits to consumers through lower prices effective September 22. The GST reform is expected to drive long-term demand across key categories.

However, HUL flagged a short-term disruption in sales during September as distributors and retailers delayed orders to clear old inventory and consumers postponed purchases in anticipation of lower pric...