A Study on Impact of GST on FMCG Companies in India

Abstract

The topic is all about the GST and Taxation is the inherent power of the state to impose and demand contribution upon persons, properties, or right for the purpose of generating revenue for public purposes. Taxes are enforced proportional contribution from persons to property levied by the law- making body of the state by virtue of its sovereignty for the support of the government and all public needs. All government require payment of money taxes from people. Government use revenues to pay soldiers and police to build dams and roads, to operate schools and hospitals, to provide food to the poor and medical care facilities etc and also hundreds of other purposes without taxes to fund its activities, government could not exist. So, taxation is the most important source of revenues for modern government typically according to 90% or more of their income. The fast-moving consumer goods are our important contributors to both direct and indirect tax. When we look into the GDP contribution, FMCG is an important player. Goods and Service Tax which subsumed most of the indirect taxes in the country would have a significant impact on the fast-moving consumer goods sector.