Impact of GST on Indian FMCG sector

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IMPACT OF GOODS AND SALES TAX (GST) ON
FAST- MOVING CONSUMER GOODS(FMCG)
Project report submitted in partial fulfillment of the requirements of B.Com(Hons.) for the
Paper BCH-6.4 DSE Group B(f), titled “Business Research Methods and Project Work”
BY- SIYA BHOLA
BCH/17/216
MATA SUNDRI COLLEGE FOR WOMEN,
UNIVERSITY OF DELHI, DELHI

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DECLARATION
I, SIYA BHOLA, student of BCOM HONOURS, 2017-2020 , of, Mata Sundri College for Women,
Delhi University, Mata Sundri Lane –02 declare that the project report on “IMPACT OF GST ON
FMCG GOODS PROJECT” submitted in partial fulfilment of Degree of Bachelor of commerce
with Honors (B.com honors), is the original work conducted by me.
The information and data given in the report is authentic to the best of my knowledge. This
report is not being submitted to any other Degree, Diploma and Fellowship.

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ACKNOWLEDGEMENT
I would like to express our gratitude to our Professor, Dr. Harleen Kaur for providing us with the
wonderful opportunity to do this research on the topic “Impact of GST on FMCG”. This has
helped us learn a lot and we are really thankful to her. I would also like to extend my gratitude
to Principal ma’am - Prof. (Dr) Harpreet Kaur for providing with all the facility that was required.
I would like to thank my family and friends who have helped me conduct this research. Also,
special thanks to the entire Faculty of Mata Sundri College for lending us any help when we
asked for it and providing us with the material to complete this project

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Contents (Index)
ABSTRACT (EXECUTIVE SUMMARY)
CHAPTER 1 – INTRODUCTION
1 INTRODUCTION
1.1BENEFITS OF GST ON THE INDIAN ECONOMY
1.2 IMPACT OF GST ON THE INDIAN ECONOMY
1.3 MAJOR SECTORS IN FMCG
1.4 NEED FOR STUDY
1.5 IMPACT OF GST ON FMCG
1.6 OBEJECTIVES OF STUDY
1.7 IMPORTANCE OF STUDY
CHAPTER 2 – LITERATURE REVIEW
CHAPTER 3 –RESEARCH METHODLOGY
3.1 PROCESS OF RESEARCH METHODLOGY
3.2 RESEARCH DESIGN
3.3 SCOPE OF PROJECT
3.4 TYPE OF RESEARCH
3.5 METHOD OF DATA COLLECTION
3.6 QUESTIONNAIRE DESIGN
3.7STATISTICAL TOOLS
3.8 SAMPLE
3.9 DATA ANALYSIS METHOD

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CHAPTER 4 – DATA ANALYSIS
4.1.1 HYPOTHESIS 1
4.1.2 HYPOTHESIS 2
4.1.3 HYPOTHESIS 3
4.1.4 HYPOTHESIS 4
4.1.5 HYPOTHESIS 5
4.2 ANALYSIS OF THE DATA
CHAPTER 5 – CONCLUSION AND LIMITATIONS
5.1 CONCLUSION
5.2 LIMITATIONS OF STUDY
APPENDIX
• QUESTIONNAIRE
• REFRENCES

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List of tables
TABLE 1: Observed Value of Hypothesis 1
TABLE 2: Expected Value of Hypothesis 1

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Abstract (executive summary)
With the advent of Goods and Service tax (GST) in India proposed from July 1st 2017, the
biggest and most impactful change in Indian indirect taxation happened. The GST will replace
the existing indirect taxes on consumption and will be applied on both goods and services.
For goods, it will be levied destination based, whereas for services, it will be levied
consumption based.
Although it, may prove to be advantageous in the long run, it is possible that it may affect the
business and stability. The aim of the project is to understand what Fast moving consumer
goods (FMCG) Retailers and Wholesalers think about GST and its effect on the business.
Secondary as well as primary research was conducted to find out what retailers think about GST
and aspects related to that. Growing awareness, easier access, and changing lifestyles have
been the key growth drivers for the sector
56 Retailers and Wholesalers were selected at random from across Delhi and were interviewed
using a questionnaire having different type of multiple-choice questions. All responses were
collected and analyzed. A study on the hypothesis was conducted so that a clearer picture could
be obtained.

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1.Introduction
1.The Goods and Service Tax (GST) is considered to be one of the great reformations
implemented in India. It is a comprehensive, multi-stage, destination-based tax that will be
levied on every value addition. Introduction of GST is an important restructuring in indirect
taxation in India. It is an indirect tax, throughout India, to replace several other taxes levied by
the central and state Governments. It will consolidate all state economies under one roof. The
basic idea is to create a single, cooperative and undivided Indian market to make the country
stronger and powerful. In the light of above development, it is very important to analyze the
provisions of the draft law in detail and assess its impact on various sectors. GST will have a far
– reaching impact on business avenues and compelling organizations to realign their
bottlenecks. India is one of the largest producers for a number Fast Moving Consumer Goods
which offers a large and growing market. The impact of GST on the Indian fast-moving
consumer goods is going to be manifold. Due to the implementation of GST there is a
transparency and the tax liability will be moving to the consumers only for the quantity that
they had consumed for.
Under GST various indirect taxes would be subsumed and hence it is going to result in a simpler
tax regime especially for Industries like FMCG.
1.1 Benefits of GST on the Indian economy
• Removal of bundled indirect taxes such as VAT, CST, Service tax, CAD, SAD, and Excise.
• Less tax compliance and a simplified tax policy compared to current tax structure.
• Removal of cascading effect of taxes i.e. removes tax on tax.

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• Reduction of manufacturing costs due to lower burden of taxes on the manufacturing
sector. Hence prices of consumer goods will be likely to come down.
• Lower the burden on the common man i.e. public will have to shed less money to buy
the same products that were costly earlier.
• Increased demand and consumption of goods.
• Increased demand will lead to increase supply. Hence, this will ultimately lead to rise in
the production of goods.
• Control of black money circulation as the system normally followed by traders and
shopkeepers will be put to a mandatory check.
• Boost to the Indian economy in the long run.
1.2 Effects of GST on Indian economy
• Reduces tax burden on producers and fosters growth through more production. The
earlier tax structure pumped with myriad tax clauses, prevented manufacturers from
producing to their optimum capacity and retards growth. GST took care of this problem
by providing tax credit to the manufacturers.
• Different tax barriers, such as check posts and toll plazas, lead to wastage of
unpreserved items being transported. This penalty transforms into major costs due to
higher needs of buffer stock and warehousing costs. A single taxation system will
eliminate this roadblock.
• There is more transparency in the system as the customers will know exactly how much
taxes they are being charged and on what base.
• GST added to the government revenues by extending the tax base.
• GST provides credit for the taxes paid by producers in the goods or services chain. This is
expected to encourage producers to buy raw material from different registered dealers
and is hoped to bring in more vendors and suppliers under the purview of taxation.

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• GST removes the custom duties applicable on exports. The nation’s competitiveness in
foreign markets increased on account of lower costs of transaction
1.3 Major segments in the FMCG sector are:
30% household sector (Fabric wash, household cleaners)
30% Personal care (Oral care, Haircare, Skincare, cosmetics, Hygiene and paper products)
50% Food and Beverages (Health beverages, Bakery, snacks, chocolates, ice cream, processed
fruits and vegetable and dairy products etc)
GST is going to have a significant impact on the FMCG sector. Simpler tax regime under GST is
going to benefit the FMCG company. It is also going to impact on the pricing strategies, sales,
cost, tax compliances of FMCG companies
1.4 Need for study
Fast Moving Consumer Goods (FMCG) goods are popularly named as consumer-packaged
goods. Items in this category include all consumables (other than groceries/pulses) people buy
at regular intervals. FMCG is also one of the fastest growing sectors among all the sectors in the
Indian economy. FMCG segment is the fourth largest in the Indian economy. For most segments
within the FMCG spare, GST brings good tidings on the back of lower tax incidence when
compared to the total tax paid pre – GST.
In this sector GST would have an impact on the pricing, working capital, contracts with vendors
and customers etc. The sale of retailers, wholesalers and the monthly budget of common
people regarding fast moving consumer goods (FMCG) should have an impact of GST.
Moreover, the concept of GST awareness among common man is an important matter to be
analyzed.
FMCG goods have faced an increased rate of tax after GST certain big players like Nestle ,HUL
and P&G have been impacted by GST.

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1.5 Impact of GST on FMCG
• Reduction in logistics costs: The FMCG sector will also benefit from GST by saving a
considerable amount of expenses on logistics. Distribution costs for the FMCG sector
currently amount to 2-7 percent of the total cost, but are expected to drop to 1.5
percent after implementation of GST software. Due to the smoother supply chain
management in regards to paying tax, claiming input credit, and removing CST under the
GST regime, there will be a cost reduction in terms of transportation and storage of
goods. The reduction in taxes and distribution costs should enable companies to lower
prices on consumer goods.

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• Increase in effective tax rates: Aerated beverages have been placed in the highest tax
slab of 28 percent and will now attract an additional tax of 12 percent. Beverage
companies have said the effective tax rate of 40 percent on sweetened aerated water
and flavored water under GST is against the stated policy of maintaining parity with the
existing weighted average tax, which is significantly below 40 percent.
1.6 Objectives of the study:
1. To understand the concept of GST.
2. To obtain a comprehensive overview of consumer’s, wholesaler’s and retailer’s
awareness and perceptions of GST.
3. To study about FMCG
4. To find out the impact of GST on sales of retailers and wholesalers.
5. To analyze the impact of changes in the tax rates of fast-moving consumer goods on
consumers. Is it positive or negative.
6. To analyze the issues in filing GST
1.7 Importance of this study
In an ocean of volatile industries, the FMCG industry represents an island of stability during
times of economic uncertainty. Among the various industries that characterize the modern
global economy, the Fast-Moving Consumer Goods Industry is amongst the most resilient to
economic shocks. Unlike other industries, the FMCG sector is not prone to mass layoffs or
substantial dips in profit when the economy slows down. This is due to the nature of the goods
themselves.

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For a developing country like India a sector like FMCG which does not get affected by economic
stability is to be focused on. So, it is important to analyze the impact of a big tax reform in the
country with respect to the 4th largest sector of the Indian economy.

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2. Literature Review
Empowered committee of finance ministers (2009), introduced their first discussion paper on
GST in India which analyses the structure and loopholes if any in GST. Vasanthagopal (2011) in
the article GST in India, A big leap in the indirect taxation system discussed the impact of GST
on various sectors of the economy. The article further stated that GST is a big leap and a new
impetus to India's economic change. The constitution 115 amendment bill, 2011. Bird (2012)
summarizes in the article the GST/HST- creating an integrated sales tax in a federal country the
impact of GST will be on Canada. Garg (2014) in the article named basic concepts and features
of goods and services tax in India analyses the impact and GST on Indian tax scenario and
concluded that it will strengthen out free market economy.
Under the study, Kaur. M, et.al (2016), mainly focuses on what are the impacts of GST after its
implementation, the difference between the present indirect taxes and GST and also benefits
and challenges of GST after its implementation. Research being a qualitative research analysis
on how various goods and services are being taxed under GST. Researches use the consumer
price index which is a statistical estimate constructed using the prices of items collected
periodically. With the help of CPI researcher analysis, the significant impact of GST on various
items which comes unto 20-25%. Researchers conclude stating that GST would reduce the tax
burden and also play inactive role in the growth and development of our country.
AurobindaPanda (KNT school of Law), Atul Patel (KIIT school of law), “THE IMPACT OF
GST (goods and service tax) ON THE INDIAN TAX SCENE (2010) AT SSRN”The research paper
analyses how GST would impact on Indian tax scenario. The authors have
given a brief history of Indian taxation and its structure. Background of GST outside India as
well as in India is also discussed. Authors concluded that GST would be beneficial for the
industry and the consumers. It would lead to an increase in revenue for the government.

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In the study Monika Sehrawat, et.al (December 2015) focuses on GST IN INDIA, A KEY TAX
REFORM for international journal of research- This research presents an overview of GST
concept. It explains the features and its live line of implementation in India. The paper also
highlights the advantages and disadvantages of GST in India. The author concludes that GST
fulfils the requirement of the simplified, user-friendly and transparent tax system. The author
also states that with the coming of GST, it will lead to higher more employment opportunities
and flourish GDP by 1-15 %.
Dr Mohan Kumar, et.al (December 2017) talks about GST AND ITS PROBABLE IMPACT ON THE
FMCG INDUSTRY IN INDIA , for the international journal of research in finance and
marketing.This paper analyzes the impact of the FMCG industry. The fast-moving consumer
goods (FMCG) sector of India compromises more than 50% of the food and beverage industry.
And another 30% from personal and household care. Presently the peak tax cost for industry
players amount to approximately 27% i.e. (excise duty of 12.5% and VAT ranging from 12-15%)
under the GST regime, its proposed that the revenue neutral rate would be in the range of 16-
19%.
R Hiremani Naik et.al (December 2017) discuss ON PERSPECTIVE IMPACT OF GST ON
FMCG SECTOR IN INDIA” , for international journal of research in Business studies.
The fast-moving consumer goods (FMCG) segments arethe fourth largest sector in the Indian
economy. The sector is likely to see a significant impact once the goods and service tax(GST)
bill is passed as the companies set warehouses across the states in a bid to have a more tax
efficient system.FMCG is one such sector directly having its impact on the large public. It is very
important to study the possible positive and negative impact of GST implementation on the
FMCG sector.

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3. Methodology
Research is a logical and systematic search for new and useful information on a particular topic.
Research methodology is a systematic way to solve a problem. It is a science of studying how
research is to be carried out. Essentially, the procedures by which researchers go about their
work of describing, explaining and predicting phenomenon are called research methodology.
3.1 Process of research methodology -
• Research design
• Population
• Instruments
• Questionnaire design
• Data collection
• Data analysis
3.2 Research design
The design in this research is a descriptive design to examine the impact of GST on
Indianeconomy as a whole and specifically on FMCG sector. Descriptive research aims
toaccurately and systematically describe a population, situation or phenomenon. A
descriptiveresearch design can be using a wide variety of quantitative and qualitative methods
to investigate one or more variables. The data was collected from various retailers and
wholesalers of different regions in Delhi by making a structured questionnaire. The data was
filled by the respondents through offline google form. The data also includes various tables s to
aid the reader in understanding the data distribution and hence provide a better and simplified
extraction on impact of GST on Indian economy and FMCG sector.
3.3 Scope of the project-

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The project covers possible impact of GST on FMCG sector. It also explains the perspective
positives and negatives of GST implementation to FMCG sector. The project highlights various
problems faced by retailers and wholesalers while filing GST. They are also asked about the
effect of GST on the prices of raw materials and products. A questionnaire of 18 questions was
used to gauge the awareness of GST amongst retailers and wholesalers of FMCG. The interview
was for 15-20 minutes. Conclusion has been drawn after analysis of combines process.
3.4 Type of research-
The project is descriptive in nature as it describes the various attributes of GST and its impact
on Indian economy in general and on FMCG specifically.
3.5 Method of data collection-
Primary data collected through sample survey from retailers and wholesalers of FMCG shops.
So, for this purpose I have most popular tool of primary data collection through direct
communication. The tool I have used is a structured questionnaire.
3.6 Questionnaire design
In this research, the questionnaire was designed in closed- ended questions format. All the
questions were multiple choice questions. They are easy to understand and the respondents
didn’t need much time on reading the questions again and again. The questions were straight
forward and quick to respond. Closed- ended questions come in a variety of forms and they are
usually categorized based on the need to have specific options for the respondents, so that
they can select them without any hesitation. When the data was obtained and compared,

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these closed ended questions provided better insight. Closed – ended questions collect data
that can be used to draw generalized conclusions based on statistical analysis.
3.7Statistical tools-
• MS Excel: pictorial and graphical representation of data
• MS Word: preparation of project and other reports
3.8 Sample-
While deciding about the sample of research, it is required from the research's point to pay
attention to these under mentioned points
1. Sample units-a decision has to be taken concerning a sampling unit before selecting a
sample, sampling unit may be a geographical area, so in this research sampling unit is
New Delhi
2. Source of data- data required for the study was collected through primary sources
(market survey)
3. Sampling size- This refers to the number of items to be selected from the universe to
constitute a sample. This is a major problem for the researcher. The size of sample
should neither be excessively large or small, it should be optimum. This size of
population must be kept in view for this also limits the sample size. Sample size in this
project. Sample size in this project is 56.
3.9 Data Analysis Method
Method of data analysis are primarily determined by the hypothesis to be tested or research
questions to be answered. According to our project data is analyzed through hypothesis testing.
We have used Chi-Square test to determine whether there is a significant relationship between

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two categorical variables.
4. DATA ANALYSIS
4.1.1 HYPOTHESIS 1
H0= Wholesalers and retailers who file GST on their own do not have problem while filing GST.
TABLE 1
observed value
Sum of FACE
PROBLEMS WHILE
FILING
FILE GST ON THEIR
OWN
FACE PROBLEMS
WHILE FILING
1 2 Grand Total
1 3 6 9
2 64 32 96
Grand Total 67 38 105
TABLE 2
expected value
1 2 Grand Total
1 5.742857143 3.257142857 9
2 61.25714286 34.74285714 96
CHI-SQUARE/ P VALUE-0.047
SIGNIFICANCE VALUE-0.05
CRITICAL VALUE- 3.96
DEGREE OF FREEDOM – 1

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INTERPRETATION-
A chi –square test of independence showed that there is no significant association between
difficulty faced by a retailer or wholesaler in filing gst and if they file gst on their own or not.
X2(1, n=56) =0.047, P=0.05.
Thus, we reject the null hypothesis, therefore increase in total cost of construction does
increases the price for the end buyer
4.1.2 HYPOTHESIS 2 -
H0= The increase in the prices of raw materials of FMCG has no effect on the price of goods.
TABLE 3 -
observed value
Sum of "FMCG
EMPENSIVE BECAUSE
OF GST"
"THE PRICES OF RAW
MATERIAL HAVE
INCREASED AFTER
GST"
"FMCG EMPENSIVE
BECAUSE OF GST"
1 2 Grand Total
1 21 12 33
2 18 10 28
3 27 3 30
TABLE 4-
expected value
1 2 Grand Total
1 23.93406593 9.065934066 33
2 20.30769231 7.692307692 28
3 21.75824176 8.241758242 30

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DEGREE OF FREEDOM – 2
INTERPRETATION-
A chi-square test of independence showed that there is no significant association between price
of raw material and the price of goods.
X2
(2, n=56) =0.05, P=0.05
Thus, we reject the null hypotheseis,therefore the increase in the price of the raw material of
FMCG has an effect on the price of goods.
4.1.3 HYPOTHESIS 3-
H0= If the government provides relief to FMCG there will be no impact on purchasing power of
the consumer
TABLE 5 -
OBSERVED VALUE
Sum of HAS
PURCHASING POWER
AFFECTED
SHOULD FMCG
RECEIVE BENEFITS IN
GST
HAS PURCHASING
POWER AFFECTED
1 2 Grand Total
1 7 13 20
2 4 50 54
3 6 6
5 10 30 40

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TABLE 6 -
EXPECTED VALUE
Sum of HAS
PURCHASING POWER
AFFECTED
1 2 Grand Total
1 3.5 16.5 20
2 9.45 44.55 54
3 1.05 4.95 6
5 7 33 40
DEGREE OF FREEDOM –3
INTREPRETATION-
A chi-square test of independence showed that there is no significant association between GST
relief on FMCG and the purchasing power of the consumer.
X2
(3, n=56) =0.05, P=0.02
Thus, we reject the null hypotheseis,therefore if GST relief on FMCG is provided then the
purchasing power of the consumer will be affected.

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4.1.4 HYPOTHESIS 4-
H0= Purchasing power of the consumer has no effect on the credit period.
TABLE 7 -
OBSERVED VALUE
Sum of HAS
PURCHASING POWER
AFFECTED
HAS THE CRDIT
PERIOD AFFECTED
HAS PURCHASING
POWER AFFECTED
1 2 Grand Total
1 2 18 20
2 14 40 54
3 12 12
5 30 30
TABLE 8 -
EXPECTED VALUE
1 2 Grand Total
1 2.75862069 17.24137931 20
2 7.448275862 46.55172414 54
3 1.655172414 10.34482759 12
5 4.137931034 25.86206897 30

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INTREPRETATION-
A chi-square test of independence showed that there is no significant association between
purchasing power of a consumer and the credit period
X2(3, n=56) =0.05, P=0.0491
Thus, we reject the null hypotheseis,therefore credit period is affected by the purchasing power
of the consumer.
4.1.5 HYPOTHESIS 5-
H0= Retailers and wholesalers have seen a decrease in sales and price because of GST
TABLE 9 -
observed value
Sum of "FMCG
EMPENSIVE BECAUSE
OF GST"
HAVE THE SALES
FFECTED
"FMCG EMPENSIVE
BECAUSE OF GST"
1 2 Grand Total
1 28 5 33
2 24 4 28
3 18 12 30

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TABLE 10 -
expected value
1 2 Grand Total
1 25.38461538 7.615384615 33
2 21.53846154 6.461538462 28
3 23.07692308 6.923076923 30
INTREPRETATION-
A chi-square test of independence showed that there is no significant association between
effect on sales and price of FMCG due to GST
X2
(2, n=56) =0.05, P=0.027
Thus, we reject the null hypotheseis,therefore GST has affected the sales and prices of FMCG

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4.2 Analysis of the data
1. Your gender?
INTERPRETATION
For the above Pie- chart 46 people out of 57 (80% approx.) were males which means that most
of the wholesalers and retailers in the FMCG sector are Males whereas 11 are Females.
2. Are you a wholesaler or retailer of FMCG?

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INTERPRETATION
For the above Pie- chart the number of wholesalers (30) and retailers (27) is almost equal.
3. Your age group?
INTERPRETATION
In the above pie- chart the age group of most retailers and wholesalers is between 26 years –
50 years where as 18 people above 50 years and 19 people between 10 years and 25 years.
4. How many employees do you have?
INTERPRETATION

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In the above pie-chart the greatest number of employees (33) that a wholesaler and retailer has
is between 5 and 15 employees whereas least number of employees (11) are more than 15
employees and 13 have less than 5 employees
5. What percentage of your goods get expired?
INTERPRETATION
For 45 sellers 0%-5% of the goods get expired on the other hand for 8 sellers 6%-16% of the
goods get expired and the only 4 sellers the percentage of goods expired is more than 17%
6. Do you have a GST number?
INTERPRETATION
In the above pie-chart 54 people have a GST number whereas 3 people do not have a GST
number this shows the awareness of people.

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7. Is GST a good step by the government?
INTERPRETAION
Most of the people believe that GST is a good step by the government (40). Whereas 17 people
believe that it is not a good step that the government took.
8. Has GST affected your business?
INTERPRETATION
According to the above pie-chart 46 people believe that their business has been affected due to
GST and 11 believe that it hasn’t.

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9. Have you received GST refund?
INTERPRETATION
As in the above pie-chart 49 people have never received a GST refund and 8 people have
received a GST refund.
10. Is GST a way for the government to earn more taxes?
INTERPRETATION
According to the above pie-chart most of the people (30) are neutral and don’t have an opinion
on it whereas 12 people agree that it is a way to make more taxes 10 people strongly agree 2
people disagree and 3 people strongly disagree

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5. Conclusion
GST will bring in transparent and corruption-free tax administration, removing the current
shortcomings in indirect tax structure. GST is business-friendly as well as consumer-friendly.
GST in India is poised to drastically improve the positions of each of these stakeholders. We
need a change in the taxation system which is better than earlier taxation. This need for change
leads us to ‘need for GST’.
GST will allow India to better negotiate its terms in the international trade forums aimed at
increasing the taxpayer base by bringing SMEs and the unorganized sector under its
compliance. This will make the Indian market more stable than before and Indian companies
can compete with foreign companies.
GST is a recent policy introduced. GST aims at simpler tax regime and transparency in all
transaction. FMCG sector which is an important player in the market sector has been impacted
by GST to some extent. This research concludes that GST has an impact on various aspects of
FMCG companies. Since it has only been three years from when the GST law came into force,
the extent or degree of such impact cannot be completely fathomed. It would require more
time evaluate whether GST would prove to be beneficial to FMCG retailers and wholesalers.
After questioning 56 retailers and wholesalers about GST we can conclude that their businesses
have been affected due to GST.
According to our analysis we have concluded that retailers and wholesalers who file GST on
their own face problems while filing GST. It is a new way of filing tax so traditional business
have issues while filing GST.

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The increase in prices of raw material of FMCG has effect on the price of goods therefore the
price of raw material has a direct relation on the sales and the hiked price ultimately is paid by
the consumers We also found out that if the government provides relief on FMCG the
purchasing power of the Consumer will be affected as the prices will fall down the purchasing
power will go up.
The purchasing power also has relationship with the credit period. GST is followed by many top
economies in the world and hopefully it will bear fruit to the Indian economy as well.

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6. Limitations
1. Sample size: The sample size was not fully diverse as it comprised mostly of family members
and some builders.
2. Expert Review: This research paper has no expert review and recommendation
3. Lack of factual data: There is no factual data available regarding the study, analysis or
conclusion. This data completely relies on the sample.
4. Geographical limitation: This data was collected only from people of Delhi. If the data were
calculated from people outside Delhi the analysis and conclusion could be different.
5. Time Constrains: The time for the research paper was limited. Sample size could have
increased with increased duration of time.

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References
Dash. A (2017) “Positive and Negative impact of GST on Indian Economy”, International
Journal of Management and Applied Science, ISSN: 2394-7926 Volume-3, Issue-5, pp160-
162.
Dang priya jha, et al., (2004) An empirical view of the different types of consumer
promotions in india, working paper, indian institute of management, Ahmedabad. [3]
Jayashree R., R Kotnal.,(2017) influence of „GST‟ on the fast moving consumer goods ,
International Journal of advanced Research and Development, Volume 2; Issue 6 pp12-15
Chavan, R. (2017). A study on impact of goods and service tax on Indian industries with
reference to FMCG sector.
http://www.gstcouncil.gov.in/
https://cleartax.in/s/gst-consumer-fmcg
https://sinewave.co.in/blog/how-gst-has-impacted-the-fmcg.aspx
https://www.ibef.org/industry/fmcg.aspx
https://kb.icai.org/pdfs/PDFFile5b432d754ab853.80651823.pdf
https://cleartax.in/s/gst-rates

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Questionnaire
Name:
Q1. Your gender
A. Male B. Female. C. Other
Q2. Age group
A. 10-25 B.26-50 C. Above 50
Q3. Are you a wholesaler or retailer or FMCG?
A. Wholesaler B. Retailer
Q4. How many employees do you have?

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A. 0-5 B. 5-15. C. More than 15
Q5. What percentage of your goods get expired?
A. 0%-5%. B. 6%-16%. C. More than 17%
Q6. Do you have a GST number?
A. Yes B. No
Q7. Is GST a good step taken by the government?
A. Yes B. No
Q8. Has GST effected your business?
A. Yes. B. No

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Q9. Do you file GST yourself?
A. Yes B. No
Q10. Do you face problems while filing GST?
A. Yes. B. No
Q11. Has the consumption of FMCG affected due to GST?
A. Yes. B. No
Q12. Have you ever received GST refund?
A. Yes. B. No
Q13. How has your experience been with GST?
A. Good. B. Fair. Poor
Q14. Do you think that GST has made FMCG expensive?
A. Strongly agree
B. Agree

39
C. Neutral
D. Disagree
E. Strongly disagree
Q15. Should FMCG be given relief under GST as they are daily use ?
A. Strongly agree
B. Agree
C. Neutral
D. Disagree
Q16. Is GST a way for government to take more taxes?
A. Strongly agree
B. Agree
C. Neutral
D. Disagree

40
Q17. Has the purchasing power of consumers reduced?
A. Strongly agree
B. Agree
C. Neutral
D. Disagree
Q18. Have the prices of raw materials increased?
A. Yes. B. No
Q19. After GST has the credit period increased for FMCG ?
A. Yes. B. No

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