The Impact of Goods and Services Tax (GST) on Fast Moving Consumer Goods (FMCG) Consumers with respect of Personal care Products

Abstract

Goods and Service Tax (GST) is an indirect tax which is levied on the purchases of goods and services. The tax is levied at each level of production and distribution process until goods delivered to final consumers. Therefore, GST helps to detect tax evasion easily. Despite of benefits, certain drawbacks are occurred due to the introduction of GST. Hence, this study has investigated the impact of tax reforms with reference to GST (Goods and Services Tax) on FMCG consumers. Primary data was considered for this study. For collecting the data questionnaire was framed and distributed among 400 respondents. The data analysis reviled that 60% of the respondents strongly agreed that after implementation of GST affects the spending behavior and 59% of the respondents strongly agreed that GST has a negative impact on the price of personal care product. Hence, this study provides the information about the impact of Goods and Services Tax (GST) on fast moving consumer goods with respect to personal care products targeting lower income people and lower-middle-income people.