Literature review

In their July-September 2019 study, Elizabeth Joseph and Dr. Joseph George delved into the impact of the Goods and Services Tax (GST) on the Fast-Moving Consumer Goods (FMCG) sector, focusing on both retailers and consumers. The research revealed a lack of awareness among retailers and customers regarding the new tax regime, posing challenges during the initial adaptation phase. Government support facilitated the transition, mitigating challenges like initial expenditure and paperwork. The study, employing statistical tools and a questionnaire survey, explored the e?ectiveness of GST over the Value Added Tax (VAT) system, with a majority of retailers favoring GST. The comprehensive analysis aimed to understand GST's role in the FMCG sector, examine challenges faced by retailers, and assess the benefits for both retailers and consumers, ultimately contributing valuable insights to the discourse on GST's impact on the FMCG sector.

The study conducted by Amrit Das delves into the ramifications of the Goods and Services Tax (GST) on the Fast Moving Consumer Goods (FMCG) sector, focusing on alterations in taxation, pricing strategies, logistic costs, supply-chain management, and transitional credits. It acknowledges both positive and negative consequences on the FMCG industry, underlining the significance of comparative analysis between the previous tax system and GST to assess changes in tax rates for di?erent consumer goods. The research emphasizes variables such as tax rates, FMCG product pricing, logistic expenses, supply-chain operations, transitional credit utilization, and the overarching impact on the FMCG sector. It sets out to scrutinize the implications of GST implementation in India, discussing its merits and demerits while exploring its efficacy in other countries where it's been introduced. The study's focal point revolves around the analysis of GST's in?uence on the FMCG sector in India, incorporating data pertaining to the industry's contribution to GDP, growth forecasts, and the nuances of pre and post-GST tax rates, as well as dissecting the impact of GST rates on various FMCG products.

CMA Satish Dhokare's paper undertakes a quantitative investigation into the ramifications of Goods and Services Tax (GST) on India's Fast-Moving Consumer Goods (FMCG) sector. The study, while not explicitly detailing the tools or methodologies employed, delves into variables such as tax structures, logistics costs, supply-chain management, consumption patterns, and financial aspects of FMCG companies. The objectives encompass gaining a comprehensive understanding of GST, analyzing its impacts on the FMCG sector, and scrutinizing both positive and negative consequences. The paper draws on data derived from journals and articles, employing a quantitative research approach without specifying particular sources or datasets.

Dr. P. Jayalakshmi's 2018 study investigates the repercussions of Goods and Services Tax (GST) on consumer goods retailers in Visakhapatnam, employing analytical and descriptive methods. The research emphasizes that small retailers bear a more substantial impact compared to larger counterparts. Utilizing a structured questionnaire, primary data is collected to analyze constraints faced by retailers during the GST initiation and assess the in?uence of new taxation rates on consumer goods prices. Statistical techniques such as mean and ANOVA are applied to scrutinize variables like sales trends, turnover, retailer opinions, and constraints. The study concludes with findings indicating a 5-10% price hike in consumer goods post- GST, with a prevalent belief among retailers in an 8-12% increase.

The literature review conducted by Dr. Manisha Shinde in 2017 delves into the anticipated positive e?ects of GST on the Indian economy, emphasizing its potential to reduce economic distortions and foster the development of a unified national market. This comprehensive study assesses the impact of GST across diverse sectors including consumer goods, equity investments, infrastructure, and small-scale enterprises. It highlights the challenges of GST implementation in India, addressing issues like understanding provisions, ambiguous clauses, and the requisite expertise among sta?. Employing a literature review methodology, the study draws upon secondary data from various sources such as books, journals, and government reports to analyze the multifaceted impact and challenges of GST. The research aims to elucidate the conceptual framework of GST in the Indian context, explore its e?ects on di?erent stakeholders, and propose strategies to mitigate adverse consequences.

Dr. P. Jayalakshmi's 2018 study investigates the impact of Goods and Services Tax (GST) on consumer goods retailers in Visakhapatnam, emphasizing the disproportionate e?ect on small retailers compared to larger counterparts. Employing analytical and descriptive methods, the research explores the intricate relationship between sales, retailer types, and geographical areas (urban, semi- urban, rural). Findings reveal a 5-10% increase in post-GST consumer goods prices, with a majority of retailers (97.5%) perceiving an 8-12% hike. Utilizing structured questionnaires and statistical techniques such as mean and ANOVA, the study delves into major constraints during GST implementation, trends in sales and turnover, and retailer opinions on price hikes, contributing valuable insights to the impact of GST on consumer goods retailers in Visakhapatnam.

The literature review highlights a paper by Aanchal Aneja, focusing on the impact of Goods and Services Tax (GST) on the Indian economy, particularly on sectors like agriculture, industry, and services. Although the tools used for the study are not explicitly mentioned, the paper draws information from government announcements, GST Council decisions, and economic analyses. It delves into the implementation process of GST, its features, and its e?ects on tax rates, ease of doing business, transparency, and overall economic growth. With a primary objective to understand the concept of GST and its implications on the Indian economy, the paper o?ers insights into the historical background of GST and its impact on specific sectors, contributing to the discourse on GST's in?uence on economic sectors.

In their April 2020 study, Ashish Chhajer, Divakar Sharma, and Aditya Patel evaluate the impact of Goods and Services Tax (GST) on India's Fast Moving Consumer Goods (FMCG) sector. Employing an exploratory and descriptive research approach, the study utilizes secondary data analysis and convenience sampling. It highlights a mixed impact on the FMCG sector, with some companies benefiting from reduced tax frequency, resulting in lower consumer prices. The GST rates on FMCG products ranging from 18% to 20% are scrutinized, emphasizing the sector's substantial contribution to both direct and indirect taxes in India. The research examines various factors such as tax structure, input tax credit, logistics costs, and consumer spending ability. The study contributes to the understanding of the FMCG sector post-GST through a comprehensive review of secondary data from blogs, reports, newspapers, magazines, government websites, and existing research articles.

Dr. Namita Mishra's study, conducted on 27 November 2018, delves into the impact of Goods and Services Tax (GST) on the Indian economy. Highlighting its implementation in July 2017, replacing multiple taxes, Mishra outlines GST's varied tax rates from 0% to 28%, administered by the GST Council. Utilizing secondary data from diverse sources such as journals and newspapers, the research assesses GST's e?ects across sectors like manufacturing, telecommunications, and FMCG. Economic indicators like in?ation and FDI are examined to gauge GST's implications on revenue generation and fiscal deficit. The study aims to comprehend GST's essence, assess its short-term repercussions, and project its future impact on India's economic landscape.

Dr. Jayashree and R Kotnal's November 2017 article delves into the ramifications of Goods and Services Tax (GST) on India's fast-moving consumer goods (FMCG) sector. Employing an exploratory research technique and drawing insights from past literature found in reputable journals, reports, newspapers, and magazines, the study comprehensively explores the multifaceted impact of GST. It scrutinizes pricing, working capital, contracts with vendors and customers, ERP systems, processes, internal controls, and accounting practices within the FMCG industry. The research aims to understand GST, assess its in?uence on the FMCG sector, and examine key takeaways from the Model GST. The study relies extensively on secondary data, encompassing past literature, reports, newspapers, and magazines to contribute valuable insights into the intricate relationship between GST and the fast-moving consumer goods industry.

The literature review conducted by Mr. Arun Gautam examines the implications of GST on the FMCG sector, with a particular focus on aspects such as price reductions, alterations in tax rates, e?ects on warehousing and logistics, and the overall industry impact. While the study lacks explicit disclosure of the methodologies employed, it likely incorporates a blend of literature review, data analysis, and potentially surveys or case studies. Variables considered encompass tax rates, FMCG product pricing, shifts in logistics and warehousing strategies, and the broader economic ramifications on the FMCG sector. The study's objective is to provide a comprehensive understanding of GST operations and their e?ects, particularly on consumers, retailers, and industry logistics. Although the sources and nature of the data are not explicitly delineated, the analysis references specific FMCG products, tax rate adjustments, and alterations in logistics costs, underlining the study's empirical foundation.

Amrit Das, in a study conducted on July 1, 2017, evaluates the impact of Goods and Services Tax (GST) on India's Fast Moving Consumer Goods (FMCG) sector. Acknowledging the elimination of the multiple-tax structure, the study recognizes GST as a "transparent taxation system" for indirect taxes. Although the research outlines both positive and negative e?ects of GST on the FMCG industry, it doesn't explicitly detail the tools or methodologies used. Variables encompass changes in tax rates, logistics costs, supply-chain management, transitional credit, rate ?uctuations, and anti-profiteering concerns. The study aims to analyze GST's impact on the FMCG sector, presenting data on the industry's GDP contribution, growth, and the anticipated size of the FMCG retail market in India. Additionally, it o?ers insights into old tax rates, new GST rates, and specific products a?ected by the tax changes, contributing to a comprehensive understanding of GST's in?uence on the FMCG sector.

The study conducted by Mr. Gowtham Ramkumar and Dr. S. Chitra, published on May 10, 2021, examines the relationship between Goods and Services Tax (GST) and the purchasing power of consumers, as well as its impact on the Fast Moving Consumer Goods (FMCG) sector. Results reveal a significant and positive correlation between GST and consumer purchasing power, contrasting with an inverse relationship among various performance metrics of the FMCG sector. Utilizing quantitative methods and IBM SPSS25 software, the research analyzes data collected from both primary and secondary sources. The study aims to understand the functional dynamics between GST and FMCG consumer purchasing power, discern the e?ects of GST on the FMCG industry, and evaluate ensuing implications for stakeholders.

The literature surrounding the impact of Goods and Services Tax (GST) on India's Fast- Moving Consumer Goods (FMCG) sector underscores a mixed outcome. While some FMCG companies report reduced tax burdens, leading to price reductions, others experience varying e?ects due to changes in GST rates. Research emphasizes the significant in?uence of GST on logistics and e?ective tax rates, potentially contributing to reduced operational costs. Secondary data highlights the sector's growth trajectory, with forecasts suggesting substantial expansion, particularly in rural markets. However, challenges persist, including tax compliance issues and consumer awareness gaps, necessitating further investigation and strategic interventions for sustained sectoral development.

In the study conducted by Kaur, M, et al. in 2016, the primary focus lies in assessing the impacts of Goods and Services Tax (GST) post-implementation. The research delves into elucidating the disparities between the prevailing indirect tax system and GST, while also exploring the benefits and challenges that have emerged following the implementation of GST. This qualitative research employs an analysis framework to examine how various goods and services are taxed under the GST regime. The researchers utilize the Consumer Price Index (CPI) as a statistical estimate, constructed from periodically collected item prices. Through the CPI analysis, the researchers identify a significant impact of GST on various items, accounting for a noteworthy 20-25% variation. The conclusive findings of the study assert that GST is poised to alleviate the tax burden and actively contribute to the growth and development of the country.

In the December 2017 edition of the International Journal of Research in Finance and Marketing, Dr. Mohan Kumar et al. delve into the intricate discussion surrounding Goods and Services Tax (GST) and its potential implications on the Fast-Moving Consumer Goods (FMCG) industry in India. The paper meticulously analyzes the impact specifically within the FMCG sector, a vital component comprising over 50% of the broader food and beverage industry, with an additional 30% attributed to personal and household care products. Currently, industry players face a peak tax cost of approximately 27%, encompassing an excise duty of 12.5% and VAT ranging from 12-15% under the GST regime. The research suggests a proposed revenue- neutral rate within the range of 16-19%, signaling a potential shift in the tax landscape for the FMCG industry under the GST framework.

In the December 2017 edition of the International Journal of Research in Business Studies, R. Hiremani Naik et al. explore the prospective impact of the Goods and Services Tax (GST) on the Fast-Moving Consumer Goods (FMCG) sector in India. Positioned as the fourth-largest sector in the Indian economy, the FMCG segments hold substantial significance. The sector is poised to undergo a notable transformation with the implementation of the GST bill, prompting companies to strategically establish warehouses across states for a more tax-efficient system. Given the direct impact on the general public, it becomes crucial to scrutinize the potential positive and negative ramifications of the GST implementation on the FMCG sector.

The study aims to shed light on the anticipated shifts and implications within the FMCG industry arising from the introduction of the GST. 

This study explores how India's GST impacted various aspects of 10 FMCG companies. Using financial data and stock prices, researchers analyzed the impact on sales, profit, purchases, taxes, and stock prices before and after GST. They employed SPSS software to determine the significance of these changes. The research aims to understand the overall impact of GST on the Indian FMCG industry, whether positive or negative.

This research examines the impact of GST on FMCG consumers in India. The study finds both positive and negative e?ects, including reduced costs, efficient supply chain management, and increased consumption on the positive side, and short-term debts, changing tax rates, and anti-profiteering issues on the negative side.

Researchers collected data from 100 FMCG consumers and employed descriptive and inferential statistics for analysis.

This document by Alankit Group discusses the impact of the Goods and Services Tax (GST) on the Fast-Moving Consumer Goods (FMCG) sector in India. It covers various aspects including tax rates, logistics, distribution costs, and the impact on di?erent FMCG products. The document also highlights the benefits of GST for some products. Overall, it aims to inform readers about the impact of GST on the FMCG sector in India.

India's 2017 Goods and Services Tax (GST) impacted the Fast-Moving Consumer Goods (FMCG) sector. While the average tax is expected to be 18-20%, specific products like detergents saw tax increases, while essentials like soaps received reductions. GST is also anticipated to decrease logistics costs by eliminating multiple sales depots, potentially benefiting FMCG companies. However, further analysis is needed regarding other factors like warehousing and claiming tax credits, along with exploring experiences of other countries with similar reforms and potential challenges associated with GST implementation. This highlights the complex impact of GST on the Indian FMCG sector, requiring further examination of its long-term e?ects.

This study explores how India's GST impacted wholesalers and retailers in Lucknow's FMCG sector (pharma and groceries). Surveying 80 individuals, it found challenges like complaint resolution systems, high IT costs, and supply chain restructuring.

Despite these, 69% expressed optimism for economic growth post-GST, with no significant di?erence in perception between pharma and grocery sectors. The study used SPSS software to analyze data.

This document discusses the impact of India's GST on the FMCG sector. GST aims to simplify taxes, especially for FMCG companies, by merging various indirect taxes. The current peak tax rate (around 27%) is expected to fall under GST (5-28% range). This could benefit FMCG companies by impacting pricing, working capital, contracts, and supply chains. Essentially, GST could a?ect every aspect of their business, potentially prompting them to optimize their supply chains. The research relies on secondary data from journals, websites, and media reports.

In 2009, the Empowered Committee of Finance Ministers took a crucial step by introducing their first discussion paper on Goods and Services Tax (GST) in India. This paper aimed to analyze the structure of GST, scrutinizing for any potential loopholes in its implementation. Building on this, Vasanthagopal, in a 2011 article titled "GST in India, A Big Leap in the Indirect Taxation System," explored the far-reaching impact of GST on various sectors of the economy. The article emphasized GST as a significant catalyst for economic change in India, representing a substantial leap forward.

During the same period, the Constitution 115 Amendment Bill of 2011 introduced transformative changes. Shifting the focus to international implications, Bird's 2012 article summarized the impact of GST on Canada, specifically under the GST/HST framework, creating an integrated sales tax in a federal country.

Hiremani Naik et al. delve into the nuanced discussion surrounding the prospective impact of the Goods and Services Tax (GST) on the Fast-Moving Consumer Goods (FMCG) sector in India. Positioned as the fourth-largest sector in the Indian economy, the FMCG segments hold significant economic importance. The impending implementation of the GST bill is anticipated to bring about a substantial transformation within the sector. Companies, in preparation for this change, are strategically establishing warehouses across states, aiming to create a more tax- efficient system.

Given that the FMCG sector has a direct impact on the larger public, it becomes imperative to thoroughly study the potential positive and negative implications arising from the implementation of GST. This research seeks to shed light on the anticipated shifts within the FMCG industry, analysing how the introduction of GST might shape the landscape of this crucial sector. As companies navigate tax efficiency through warehousing strategies, this study aims to contribute valuable insights into the broader economic implications and challenges associated with the GST implementation on the FMCG sector in India.

Gaps

1. Small Retailer Focus Hypothesis: Small retailers in the FMCG sector face unique challenges during GST implementation that are directly linked to their scale and operational intricacies.
2. Consumer Perspectives Hypothesis: Consumer awareness of price changes, consumption patterns, and overall satisfaction with the new GST regime significantly di?er based on demographic factors and individual purchasing behaviours.
3. Methodological Transparency Hypothesis: Ensuring consistent methodological transparency across studies positively correlates with the perceived quality and reliability of research findings in the context of GST implementation.

A correlation coefficient of 0.19 between the price of FMCG (Fast Moving Consumer Goods) products and their e?ect on the FMCG sector suggests a weak positive correlation. This means that there is a slight tendency for changes in the price of FMCG products to be associated with some level of impact on the FMCG sector, but the relationship is not very strong.

Interpreting this correlation, it could imply that when the price of FMCG products increases or decreases slightly, there may be a modest e?ect on the FMCG sector as a whole. However, many other factors likely in?uence the performance of the FMCG sector, such as consumer preferences, economic conditions, marketing strategies, and competition. Therefore, while price changes may have some in?uence, they are just one of many factors a?ecting the sector.

To gain a more comprehensive understanding of the relationship between the price of FMCG products and their e?ect on the FMCG sector, further analysis, such as regression analysis or examining other variables, would be necessary. Additionally, it's important to consider the context and specifics of the FMCG market being studied, as correlations can vary depending on various factors.

A correlation coefficient of 0.05 between the availability of FMCG products and their e?ect on the FMCG sector suggests a very weak positive correlation, or possibly almost no correlation at all. This means that there is little to no discernible relationship between the availability of FMCG products and their impact on the FMCG sector as a whole.

Interpreting this correlation, it implies that ?uctuations in the availability of FMCG products are not significantly associated with changes in the performance or behavior of the FMCG sector. This could suggest that factors other than mere availability, such as consumer demand, marketing strategies, pricing, and competition, play a more substantial role in shaping the dynamics of the FMCG sector.

However, it's essential to recognize that correlation does not imply causation. While there may be a weak correlation between availability and the sector's performance, it doesn't necessarily mean that one directly causes the other. Further analysis and consideration of other variables would be necessary to better understand the complex dynamics at play within the FMCG sector.

A correlation coefficient of 0.25 between difficulties in accessing FMCG products and their e?ect on the FMCG sector suggests a weak positive correlation. This means that there is a slight tendency for challenges in accessing FMCG products to be associated with some level of impact on the FMCG sector, but the relationship is not very strong.

Interpreting this correlation, it could imply that when there are difficulties in accessing FMCG products, such as supply chain disruptions, logistical issues, or regulatory hurdles, there may be a modest e?ect on the FMCG sector as a whole. However, it's important to note that many other factors can also in?uence the performance of the FMCG sector, including consumer behavior, economic conditions, competition, and marketing strategies.

While difficulties in accessing FMCG products may have some in?uence on the sector, they are just one of many factors at play. Further analysis, including considering additional variables and potential causal relationships, would be necessary to gain a more comprehensive understanding of the dynamics between challenges in access and the overall performance of the FMCG sector.

A correlation coefficient of 0.25 between difficulties in accessing FMCG products and their e?ect on the FMCG sector suggests a weak positive correlation. This means that there is a slight tendency for challenges in accessing FMCG products to be associated with some level of impact on the FMCG sector, but the relationship is not very strong.

Interpreting this correlation, it could imply that when there are difficulties in accessing FMCG products, such as supply chain disruptions, logistical issues, or regulatory hurdles, there may be a modest e?ect on the FMCG sector as a whole. However, it's important to note that many other factors can also in?uence the performance of the FMCG sector, including consumer behavior, economic conditions, competition, and marketing strategies.

While difficulties in accessing FMCG products may have some in?uence on the sector, they are just one of many factors at play. Further analysis, including considering additional variables and potential causal relationships, would be necessary to gain a more comprehensive understanding of the dynamics between challenges in access and the overall performance of the FMCG sector.