Research Gateway

Abstract

Goods and Services Tax (GST) will be a game changing reform for Indian economy by developing a common Indian market and reducing the cascading effect of tax on the cost of goods and services. The GST creates one nation one tax to replace a slew of complex ones that differ from state to state. The present structure of Indirect tax is very complex in India. There are so many type of taxes that are levied the Central and State Government on Goods & Services have been subsumed under GST. It has its own impact on FMCG sector too. Since the price of majority FMCG product has been reduced. Certainly demand for the product has been increased . At the same time, because of same rates in all states and allowing of Inter – state input credit i.e (traders can avail credit of tax paid in other states also which was not available earlier .), Supply will also be increased as more and more trader will come to the market . Ass most of our population resides in India. Rural sales & marketing will surely be impacted by GST in positive note.