Janavi Manisekar, Sudharsan P.V., B. Com., LL. B. (Hons.), School of Law, Sastra Deemed University, Thanjavur
ABSTRACT
Fast-Moving Consumer Goods (FMCG) business is a vital part of the global economy. The primary objective of this research is to look into the various effects of the Goods and Services Tax (GST) on Fast-Moving Consumer Goods (FMCG) which was established as a comprehensive indirect tax policy with the purpose of simplifying the taxation structure and uniting the Indian market. Following the advent of GST, the FMCG sector, which was characterised by strong competition and low-profit margins, saw substantial adjustments. The rationalisation of taxes was one of the key implications of GST on the FMCG sector. Cascading taxes were eliminated, and a consistent tax system was implemented, which streamlined the supply chain and reduced the overall tax load on enterprises. However, difficulties developed during the early stages of deployment as businesses struggled to adjust to the new system. The research also investigates the influence of GST on customer behaviour in the FMCG sector. The elimination of several tax points reduces the cost of production and delivery, potentially benefiting consumers. Short-term disruptions occurred, however, as businesses modified pricing tactics and managed the complexities of the new tax framework. Furthermore, the study investigates the effects of GST on the logistics and distribution networks in the FMCG sector. The Goods and Services Tax Network (GSTN) enabled smoother transactions and increased transparency; however, logistical issues arose throughout the transition phase. This abstract presents an in-depth review of the research on the GST's influence on the FMCG sector, illuminating the intricacies and dynamics that emerged following implementation.
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