How fast GST is moving the Indian FMCG sector: Empirical Study

GIS Business ◽  
2020 ◽  
Vol 15 (1) ◽  
pp. 339-349
Author(s):  
Mr. Arun Gautam ◽  
Dr. Gaurav Lodha ◽  
Dr. Rohit Bansal ◽  
Dr.) M.L. Vadera
Keyword(s):  
Central Government ◽  
National Level ◽  
State Governments ◽  
Tax Reforms ◽  
Tax System ◽  
Excise Duty ◽  
Goods And Services ◽  
Beverage Industry ◽  
Food And Beverage ◽  
The Impact

GST is one of the most critical tax reforms in India which has been long awaiting decision. It is a comprehensive tax system that will subsume all indirect taxes of State and Central Governments and whole economy into seamless nation in national market. GST will be a game changing reform for Indian economy by developing a common Indian market and reducing the combined effect of tax on the cost of goods and services. GST is a consumption based tax imposed on sale, manufacturing and consumption on goods & services at national level. Several taxes such as central excise duty, service tax, central surcharge and cess etc. imposed by Central Government and VAT / sales tax, entertainment tax, octroi & entry tax, purchase tax, luxury tax, taxes on lottery etc. levied by State Governments have been subsumed under GST. The FMCG sector of India composes more than 50 % of the food and beverage industry and another 30 % from personal and household care. Under the proposed GST system, it is expected that it would result in a simpler tax system, especially for industries like FMCG. Under this system, a single product would be taxed at the same rate in every corner of the country meaning that an cooler will be taxed the same in Madhya Pradesh as well as Kerala thus we also refer GST as ONE NATION ONE TAX. This paper will help to present that, what is the impact of GST after its implementation; analyze the influence of GST on FMCG sector.

scholarly journals Recent impact of gst in india

2017 ◽  
Vol 7 (2) ◽  
pp. 288-293
Author(s):  
Gomathi N
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Central Government ◽  
National Level ◽  
Tax Structure ◽  
Tax Reforms ◽  
Tax System ◽  
Goods And Services ◽  
National Market ◽  
Indirect Taxes

GST also known as the Goods and Services Tax is defined as the giant indirect taxstructures designed to support and enhance the economic growth of a country. In today‘sscenario to pay various taxes i.e. direct and indirect taxes, which are felt as burden on us anddue to these taxes the corruption is increasing. So, to overcome from all these taxation systemthe Central Government has decided to make one tax system i.e. Goods and Services Tax(GST). GST is one of the most critical tax reforms in India which has been long awaitingdecision. It is a comprehensive tax system that will subsume all indirect taxes of State andcentral Governments and whole economy into seamless nation in national market. It isexpected to remove the burden of existing indirect tax system and play an important role ingrowth of India. GST includes all Indirect Taxes which will help in growth of economy andproves to be more beneficial than the existing tax system. GST will also help to accelerate theoverall Gross Domestic Product (GDP) of the country. The Goods and Services Tax (GST) isa vast concept that simplifies the giant tax structure by supporting and enhancing theeconomic growth of a country. GST is a comprehensive tax levy on manufacturing, sale andconsumption of goods and services at a national level

scholarly journals Goods and Services Tax (GST): A Revolutionary Step towards Economic Unification

2019 ◽  
Vol 8 (S1) ◽  
pp. 67-70
Author(s):  
M. P. Akhil
Keyword(s):  
National Level ◽  
Differential Treatment ◽  
Tax Credit ◽  
Tax System ◽  
Excise Duty ◽  
Goods And Services ◽  
National Market ◽  
Indirect Taxes ◽  
Service Sectors

GST is a comprehensive tax system that subsumed all indirect taxes of states and central governments and unified economy into a seamless national market .Under the erstwhile indirect tax regime, there were a number of taxes. Prof. Kelkar Committee has proposed a uniform Goods and Services Tax (GST) to do away with the issues and problems of VAT. Based on Kelkar Committee recommendations, the Govt of India has brought a Bill in 2011 through the Constitution (115th Amendment) (GST) Bill, 2011. However the bill was not passed due to dissolution of 15th Lok Sabha. Again, Constitution (122nd Amendment) (GST) Bill, 2014 was presented in the Lok Sabha and this Bill has been passed in the Lok Sabha as well as Rajyasabha. Goods and service tax is a new story of VAT which gives a widespread setoff for input tax credit and subsuming many indirect taxes from state and national level. The Government’s GST regime seeks to replace excise duty, import duties, VAT and service tax regulations, along with other Cess and surcharges, with three separate legislations namely CGST, SGST and IGST. GST would be applicable to all transactions of goods and service, and it to be paid to the accounts of the Centre and the States separately. The biggest advantage of GST is economic unification of India. It has potential to end the longstanding distortions arising out of the differential treatment of the manufacturing and service sectors. It is an issue if people are still unaware or confuse with the tax system of GST and become worst when people ignore and boycott not to pay the tax.

scholarly journals Inter-governmental Fiscal Transfers in the Presence of Revenue Uncertainty: The Case of Goods and Services Tax (GST) in India

2020 ◽  
Vol 5 (1) ◽  
pp. 74-102
Author(s):  
Sacchidananda Mukherjee
Keyword(s):  
Fiscal Policy ◽  
Value Added ◽  
State Governments ◽  
Consumption Tax ◽  
Tax System ◽  
Goods And Services ◽  
Fiscal Transfers ◽  
Fiscal Management ◽  
Revenue Collection ◽  
The Impact

A comprehensive multistage Value Added Tax (VAT) system, namely Goods and Services Tax (GST), is introduced in India since 1 July 2017. GST encompasses various taxes from Union and State indirect tax bases, and it is a dual VAT system with concurrent taxation power to Union and State governments. It was envisaged that removal of cascading of taxes and enshrining destination based consumption tax system under GST will encourage investment and improve ease-of-doing business in India. Though it is not right time to comment on success or failure of Indian GST system unless the tax system stabilises, so far revenue mobilisation from GST is not encouraging. The shortfall in GST collection has been acknowledged in the ‘Medium Term Fiscal Policy cum Fiscal Policy Strategy Statement’ of the Union Budget 2019–2020. The genesis of revenue shortfall may be design and structural in nature and/or compliance and tax administration related. However, the uncertainty surrounding GST revenue collection is an issue which needs an in-depth assessment for fiscal management of Union and State governments. The impact of revenue uncertainty will not be restricted to Union finances alone; it will spill over to state finances through inter-governmental fiscal transfers. Therefore, depending on seriousness of the uncertainties associated with GST revenue collection, devising an inter-governmental fiscal transfer framework may be a challenging task for the Fifteenth Finance Commission. Given the information available in the public domain, this article attempts to explore possible causes of revenue shortfall and assess possible impacts of revenue shortfall on Union and State finances.

scholarly journals Tax System in India-Evolution and Present Structure

2015 ◽  
Vol 2 (1) ◽  
Author(s):  
Ms. Neha Nainwal
Keyword(s):  
Tax Evasion ◽  
Structural Changes ◽  
Tax Structure ◽  
Tax Reforms ◽  
Public Authorities ◽  
Tax System ◽  
Direct Taxation ◽  
Excise Duty ◽  
Goods And Services ◽  
Indirect Taxes

<bold>Main findings of the book</bold> The Indian tax system has undergone major structural changes since Independence in 1947. It has become comprehensive and complicated over the years. It has successfully mobilised resources to finance developmental, welfare and administrative activities of public authorities. Besides being the main source of revenue, both for the Central and State Governments, it is an effective instrument to realise various socio-economic objectives of national policies. However, the tax system has been relying heavily on indirect taxes and suffering extensively from fiscal malady called tax evasion. Restructuring of the tax system has constituted a major component of fiscal reforms initiated since 1991. The main focus of the tax reforms has been on simplification and rationalization of both direct and indirect taxes with the objective of augmenting revenues and removing anomalies in the tax structure. Tax reforms in recent years have brought the tax system much closer to international tax practices. Tax reforms are a part of the package to liberalise and globalise the Indian economy. The post-1991 period has witnessed a sharp decline in the rates of income tax, excise duty and customs tariff. The theory that high rates of duty lead to higher revenue collection has been discarded in favour of lower rates with fewer exemptions and concessions. The strategy in respect of direct taxation is to minimise distortions in tax structure by expanding the tax base and moderating tax rates on the one hand and improving the efficiency of tax administration and increasing the deterrence level on the other, so as to encourage voluntary compliance. The strategy in respect of indirect taxes is to move towards a fully integrated goods and services tax (GST).

scholarly journals Impact of Goods and Service Tax (GST) on Business and Tax Reforms in India

2017 ◽  
Vol 4 (1) ◽  
pp. 15-22
Author(s):  
Lavisha Verma
Keyword(s):  
Tax Reform ◽  
Research Paper ◽  
State Governments ◽  
Tax Reforms ◽  
Tax System ◽  
Dual Structure ◽  
High Compliance ◽  
Goods And Services ◽  
Finance Minister ◽  
Indirect Taxes

Goods and Services Tax (GST) comes under Indirect Tax regime covers whole of  India replaced  various indirect taxes levied by the Central and state governments. The GST is governed by GST Council and its Chairman is Union Finance Minister of India “GST is not a tax reform in true sense, but it is a major business reform which will change the way business activities are carried in the country. The dual structure of GST is the fundamental character of our country and therefore a single GST across the country is not possible in true sense under GST ,the taxpayer will be ease the burden  of taxpayers to deal with multiple indirect taxes as under present Indirect system but GST will cost high compliance burden on the taxpayers requiring a registration in every state from where taxable activities are carried out  but it would definitely reduced cumbersome documentation and save time. This research Paper discuss about the biggest step taken in indirect tax system that is GST and challenges in implementation. The paper aims to show that GST is a merely a Business reform, not a uniform tax system.

scholarly journals The concept of goods and service tax (GST) and its impact on indian economy

2017 ◽  
Vol 7 (2) ◽  
pp. 362-367
Author(s):  
Shanthini B.N ◽  
Leeladevi C
Keyword(s):  
Tax Evasion ◽  
Service Sector ◽  
Central Government ◽  
National Level ◽  
Tax Rates ◽  
Tax Reforms ◽  
Fiscal Health ◽  
Tax Rate ◽  
Indian Economy ◽  
Goods And Services

Goods and Services Tax (GST) is a comprehensive tax levy on manufacture, sale andconsumption of goods and services at national level. Goods and Services Tax integrates Stateeconomies and boost overall growth. Currently, companies and businesses pay lot of indirecttaxes such as VAT, service tax, sales tax, entertainment tax, octroi and luxury tax. On GSTimplementation all these taxes cease to exist. There is only one tax, that too at the nationallevel, monitored by the central government. GST is levied at the final point of consumptionand not at the manufacturing stage. Previously, separate tax rates are applied to goods andservices. Under GST, there is only one tax rate for both goods and services. The goods andservices Tax is an improvement towards a comprehensive indirect tax reforms in the country.Integration of goods and services taxation would give India a world class tax system andimprove tax collections. It would end distortions of differential treatments of manufacturingand service sector. GST is expected to create a business friendly environment and henceinflation rates would come down overtime as a uniform tax rate is applied. It will alsoimprove government's fiscal health as the tax collection system would become moretransparent, making tax evasion difficult. This paper is a study of the concept of goods andservice tax and its impact on Indian economy. It also aims to know the advantages andchallenges of GST in Indian scenario

scholarly journals Impact Assessment of Goods and Services Tax (GST) on Shopkeepers

2020 ◽  
pp. 1-9
Author(s):  
Shatakshi Semwal ◽  
Ella Rani ◽  
Vandana Verma
Keyword(s):  
Economic Growth ◽  
Impact Assessment ◽  
Central Government ◽  
State Governments ◽  
Goods And Services ◽  
Doing Business ◽  
Complicated Process ◽  
Ease Of Doing Business ◽  
Taxation System ◽  
The Impact

India has got a well-structured and simplified taxation system, where authoritative segregation has been done among the Central government, state governments and local bodies. But with the implementation of GST, the harmonization of tax rules, regulations, rates, processes and procedures across the states was expected to improve the ease of doing business in India. The removal of cascading of taxes and transaction costs associated with inter-state transactions was also expected to encourage investment and therefore, the economic growth of country. With the objective of the impact assessment of Goods and Services Tax on shopkeepers the present study was carried out. The study was conducted in Hisar city of Haryana state where the findings highlighted that shopkeepers had highly increased tax burden and legal compliances, followed by increase in workers hiring capacity and no impact on ease of doing business, no loss and transparency in business. Further, results also showed that there was decrease in profit as they have to pay taxes more than 6 times in a year. With the implementation of GST, shopkeepers were having constraint in filing GST as now is getting a complicated process and due to changing GST rates they were facing high competition amongst the market.

scholarly journals Goods and Service Tax (GST): A Sweet Pill for Indian Economy

2018 ◽  
Vol 12 (01) ◽  
Author(s):  
Shantanu Saurabh ◽  
Veenita Singh
Keyword(s):  
Vital Role ◽  
Sales Tax ◽  
State Governments ◽  
Tax System ◽  
Indian Economy ◽  
Excise Duty ◽  
Goods And Services ◽  
National Market ◽  
Indirect Taxes ◽  
Central Level

It is a comprehensive tax system that will subsume all indirect taxes of states and central governments and unified economy into a seamless national market. It is expected to iron out wrinkles of existing indirect tax system and play a vital role in growth of India. It will not be an additional tax; it will include central excise duty, service tax additional duties of customers at the central level, VAT, central sales tax, entertainment tax, octroi, state surcharge, luxury tax, lottery tax and other surcharge on supply of goods and services. GST is the only indirect tax that directly affects all the sections and sectors of our economy. India is a federal democratic, therefore the GST will be implemented parallel by the Central and State governments as CGST and SGST respectively. The purpose of GST is to replace all indirect taxes with single comprehensive tax, bringing it all under single umbrella, to eliminating tax on tax. It is expected to iron out wrinkles of existing indirect tax system to improve the productivity in the country as well as will be benefited to the consumers and play a vital role in growth of Indian economy.

scholarly journals Inter-Governmental Fiscal Transfers in the Presence of Revenue Uncertainty: The Case of Goods and Services Tax (GST) in India

2019 ◽  
Author(s):  
Sacchidananda Mukherjee
Keyword(s):  
Fiscal Policy ◽  
Value Added ◽  
State Governments ◽  
Consumption Tax ◽  
Tax System ◽  
Goods And Services ◽  
Fiscal Transfers ◽  
Fiscal Management ◽  
Revenue Collection ◽  
The Impact

A comprehensive multistage Value Added Tax (VAT) system, viz., Goods and Services Tax (GST), is introduced in India since 1 July 2017. GST encompasses various taxes from Union and State indirect tax bases and it is a dual VAT system with concurrent taxation power to Union and State governments. It was envisaged that removal cascading of taxes and enshrining destination based consumption tax system under GST will encourage investment and improve ease-of-doing business in India. Though it is not right time to comment on success or failure of Indian GST system unless the tax system stabilizes, so far revenue mobilization from GST is not encouraging. The shortfall in GST collection has been acknowledged in the ‘Medium Term Fiscal Policy cum Fiscal Policy Strategy Statement’ of the Union Budget 2019-20. The genesis of revenue shortfall may be design and structural in nature and/or compliance and tax administration related. However, the uncertainty surrounding GST revenue collection is an issue which needs an in-depth assessment for fiscal management of Union and State governments. The impact of revenue uncertainty will not be restricted to Union finances alone; it will spill over to state finances through inter-governmental fiscal transfers. Therefore, depending on seriousness of the uncertainties associated with GST revenue collection, devising an inter-governmental fiscal transfer framework may be a challenging task for the Fifteenth Finance Commission. Given the information available in the public domain, this paper attempts to explore possible causes of revenue shortfall and assess possible impacts of revenue shortfall on Union and State finances.

scholarly journals Inter-Governmental Fiscal Transfers in the Presence of Revenue Uncertainty: The Case of Goods and Services Tax (GST) in India

2019 ◽  
Author(s):  
Sacchidananda Mukherjee
Keyword(s):  
Fiscal Policy ◽  
Value Added ◽  
State Governments ◽  
Consumption Tax ◽  
Tax System ◽  
Goods And Services ◽  
Fiscal Transfers ◽  
Fiscal Management ◽  
Revenue Collection ◽  
The Impact

A comprehensive multistage Value Added Tax (VAT) system, viz., Goods and Services Tax (GST), is introduced in India since 1 July 2017. GST encompasses various taxes from Union and State indirect tax bases and it is a dual VAT system with concurrent taxation power to Union and State governments. It was envisaged that removal cascading of taxes and enshrining destination based consumption tax system under GST will encourage investment and improve ease-of-doing business in India. Though it is not right time to comment on success or failure of Indian GST system unless the tax system stabilizes, so far revenue mobilization from GST is not encouraging. The shortfall in GST collection has been acknowledged in the ‘Medium Term Fiscal Policy cum Fiscal Policy Strategy Statement’ of the Union Budget 2019-20. The genesis of revenue shortfall may be design and structural in nature and/or compliance and tax administration related. However, the uncertainty surrounding GST revenue collection is an issue which needs an in-depth assessment for fiscal management of Union and State governments. The impact of revenue uncertainty will not be restricted to Union finances alone; it will spill over to state finances through inter-governmental fiscal transfers. Therefore, depending on seriousness of the uncertainties associated with GST revenue collection, devising an inter-governmental fiscal transfer framework may be a challenging task for the Fifteenth Finance Commission. Given the information available in the public domain, this paper attempts to explore possible causes of revenue shortfall and assess possible impacts of revenue shortfall on Union and State finances.

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