GST & FMCG Industry Impact
The goods and services tax (GST) will be a game that will reform the reform of the Indian economy by developing a common Indian market and reducing the tax mix of the costs of goods and services. GST is a consumption-based tax levied on the sale, production and consumption of goods and services at the national level. Many taxes and VAT / sales tax, entertainment tax, onto- and import tax, sales tax, premium tax and lottery tax GST, including the central consumption tax, service tax, central tax and tax, are included. The fast moving consumer goods sector (FMCG) in India accounts for more than 50% of the food and beverage industry and covers 30% in the personal and home care sector, particularly in rural and urban areas (Subramanian, 2015). Under the proposed GST regime, particularly in sectors such as the FMCG, a simpler tax system is expected. Currently, the maximum tax costs of the sector amount to approximately 27% (or 12.5% excise duty, 12% to 15% VAT). According to the GST scheme, the level of import neutrality will vary from 16% to 19%, suggesting that it delivers significant benefits for the sector.