The Goods and Services Tax (GST) is the most
significant alteration to India's tax system. Products and
services are subject to a variety of taxes, such as the excise
tax, service tax, central sales tax, luxury tax, lottery tax,
amusement tax, octroi, state surcharge, and other levies.
The GST replaced a wide variety of indirect taxes formerly
levied on consumer goods and services. Nine months have
passed since GST was implemented on July 1, 2017, and
both the federal government's revenue and the "cascading
impact" of taxes have increased. GST has earned the label
of "transparent taxation system" in the realm of indirect
taxes. It's possible that GST still has certain current
limitations, despite the fact that its future utility will
increase. The structure of GST and its effects on the Fast
Moving Consumer Goods (FMCG) industry in India will
be the primary topics of this study. The fast-moving
consumer goods (FMCG) industry did somewhat better
after GST was implemented since it eliminated the
multiple-tax structure.
In terms of contribution to GDP, the FMCG industry
in India ranks fourth globally. From $30 billion in 2011,
the FMCG industry in India is projected to reach $74
billion by the end of 2018. The industry has grown mostly
due to increased public knowledge, improved accessibility,
and general shifts in consumer preferences and practices.
If the GST Bill passes, it will have a big effect. Because
of favorable tax legislation, firms are building distribution
centers in several states. From the FMCG sector's
standpoint, the GST will be more effective if enterprises
share credits instead of keeping them. Modern FMCG
network design is built on stock transfers and depot sales.
Since the GST replaces indirect taxes traditionally
imposed by the federal and state governments of India, it
would affect the whole nation. FMCG has a large public
impact. The FMCG business must carefully weigh the
advantages and downsides of GST.
So, the study looks at what effects GST might have on
the FMCG sector. It also talks about the pros and cons of
putting GST into place for the FMCG sector. The study
also looks at how well GST works in the FMCG sector in
countries that have already put it in place.
