Main Article Content
Abstract
GST (Good and Service Tax) is considered as the most important financial reform ever in the history of our country. GST with the concept of one nation, one market, one tax replaced the multiple tax structure prevailed in different states and union territories. Fast Moving Consumer Goods is the fourth largest sector in the Indian economy. It is a sector which touches every aspect of human life. Even 50% rural spending is for FMCG. So it is something which is consumed by all sections of the society and a larger portion of their income is spent on these goods. GST is beneficial to the FMCG sector retailers and consumers due to the reduced tax rate on FMCG. The average tax on FMCG under GST ranges from 18% to 20% which is much lower than the VAT system of 24% to 25%.The study focuses on the impact of GST on FMCG from the perspective of both consumers and retailers. The study also deals with the pros and cons of the GST system which will be beneficial in restructuring this system and also helps the common man to have clarification regarding the same.