An Impact of Goods and Services Tax With Reference to Fmcg Sectors of India

This research paper investigates the impact of the Goods and Services Tax (GST) on the Fast-Moving Consumer Goods (FMCG) sector in India, highlighting its implications for financial performance across key metrics: liquidity, profitability, efficiency, and financial leverage. Implemented on July 1, 2017, GST aimed to unify India's indirect tax structure, yet its effects on the FMCG sector have been mixed. This study analyzes seven leading FMCG companies, utilizing a decade-long dataset to compare financial performance before and after GST implementation. Findings reveal that while companies like Hindustan Unilever and Nestl? maintained strong liquidity, profitability faced significant pressures due to increased compliance costs and pricing adjustments. The research identifies a need for tailored strategies to navigate the evolving regulatory landscape, emphasizing the importance of adaptability and efficient financial management in overcoming the challenges posed by GST. Furthermore, it highlights gaps in existing literature and suggests areas for future research to better understand GST's long-term effects on the FMCG sector.