Report based on the study of the effects of the Goods and Services Tax levied on Fast Moving Consumer Goods in 2017 in India.

1. Research Report
Economics
Research Question - To what extent has the implementation of GST (Goods
and Services Tax) affected the retail FMCG sector in Gurgaon, India?
Word Count – 3995
Ujjwal Yadav

2. 2
Table of Contents
Introduction............................................................................................................................ 3
Research Question ................................................................................................................. 3
Methodology ......................................................................................................................... 4
Goods and Services Tax (GST) and the Retail FMCG Sector .............................................. 5
Price Elasticity of Demand and the Retail FMCG Sector ..................................................... 9
Data Collection ...................................................................................................................... 11
Data Analysis......................................................................................................................... 13
Taxation and the effect on Consumers and Retailers ............................................................ 17
Conclusion ............................................................................................................................ 18
Bibliography ......................................................................................................................... 23
Appendix ............................................................................................................................... 25

3. 3
Introduction
GST (Goods and Services Tax) is an indirect tax imposed by the Indian Government. The tax
was introduced on 1st
July 2017 as a replacement for other multiple cascading taxes imposed
by central and state governments. The origin of GST was in 2000 when the then Prime Minister
Atal Bihari Vajpayee gave the responsibility of creating a model for the same to the Finance
Minister, Asim Dasgupta. After many committees being formed to study its impacts and it
being finally passed in the Lok Sabha, GST came into being. GST was introduced in the form
of various tax rate slabs of 0%, 5%, 12%, 18% and 28%. Different slabs are applicable for
different types of goods and services.
Thousands of retail outlets and millions of customers is what makes Gurgaon a place ideal to
study the impact of GST on the producers, retailers and the consumers. The FMCG sector is
one of the many sectors that have been greatly impacted by GST. Studying the impact of GST
on FMCG would help in finding out how the common man has been affected by its
implementation as FMCGs are goods which are bought by people regularly. The FMCG sector
is the fourth largest sector in the Indian economy with a total market size in excess of USD
29.4 billion in 2016.1
Its growth rate is also the highest as compared to the other sectors in the
economy. The size of the sector and its role in the future growth of the Indian economy make
it worthy of the investigation of the impact that GST might have on the manufacturers, retailers
and the consumers of FMCG goods.
Research Question –
To what extent has the implementation of GST (Goods and Services Tax) affected the retail
FMCG sector in Gurgaon, India?
1
“Brand India.” IBEF : India Brand Equity Foundation, www.ibef.org/industry/fmcg-presentation.

4. 4
Methodology
The effect of GST on FMCGs has been a mixed one, the taxes for some goods have increased
and for others they have decreased. I have carried out primary and secondary research on the
impact of the tax on various goods and services. I have taken goods from each of the FMCG
categories. Butter and cottage cheese from the Food category, toothpastes and hair oil from
Personal Care and Detergents from Home and Fabric Care. Goods from the Others category
such as alcohol and cigarettes could not be taken as they have been exempted from GST for
now and are still under the old taxation system.
The research has been carried out in Gurgaon, India as it is on of the largest contributors of
GDP in the national capital region which is a result of rapid and continuous development in
the last few years. I have collected primary data from customers. A survey was conducted in
four different regions of Gurgaon to see the impact of GST on the incomes of consumers and
whether or not it brought out a change in their spending patterns. Research in relation to the
proportion of income spent on FMCGs before and after the implementation of GST was also
done. Collecting data from different parts of Gurgaon helped in getting a balanced and reliable
response as regions that sold to various income groups could be targeted which directly affects
the PED (price elasticity of demand) of the FMCG goods. The concepts of PED and Taxation
were used to answer the research question

5. 5
Goods and Services Tax (GST) and the Retail FMCG Sector
The goods and services tax was passed in the parliament on 29th
March 2017 and has been in
effect from 1st
July 2017.2
GST is an indirect tax that is levied on every value addition, for
every phase of production and distribution where value is added, GST is levied. The producer
first buys raw materials then the goods are manufactured after which they are sold to a
wholesaler who further sells it to the retailers and the good finally reaches the consumer.
GST is levied on each of these stages. One of the main characteristics of GST is that it is
destination based. For example, if a good is manufactured in Delhi and sold to the consumer in
Maharashtra, as GST is levied at the point of consumption (in this case Maharashtra), the entire
tax revenue will go to Maharashtra and not Delhi.
The long journey of GST began in the year 2000 and a committee was shaped to draft the GST
Law. After 17 years of evolution and changes, the GST Bill was finally passed in the Lok and
the Rajya Sabha. GST consists of three taxes: CGST, SGST and IGST. CGST and SGST are
taxes that are collected by the central and state government respectively on a sale that takes
place within the state, the division of tax revenue between the center and the state is 50-50.
IGST, on the other hand, is a tax collected by the central government on an inter-state sale, the
central government then shares the tax revenue with the state where the good reaches the final
consumer, the percentage shared is solely the decision of the central government.
The FMCG sector is the fourth largest sector in the Indian Economy, it has a compound annual
growth rate of 20.6% and is expected to reach US$ 103.7 billion by 2020.3
The tax rates on
2
ClearTax. “GST – What Is GST in India? Goods & Services Tax Law Explained.” What Is GST in
India? Goods & Services Tax Bill Explained, cleartax.in/s/gst-law-goods-and-services-tax
3
Industry Experts. “Post-GST Impact on FMCG Sector.” Post-GST Impact on FMCG Sector, 21
Sept. 2017, www1.avalara.com/in/en/blog/2017/09/post-gst-impact-fmcg-sector.html.

6. 6
products after the GST was imposed have changed leading to some goods being better off while
the others being worse off. Table 1 shows the different products with the tax rates before and
after GST was imposed.
Table 1 – Previous and current tax rates on FMCGs3
Product Old Taxation System GST Companies
Shampoo 24-25% 28%
HUL, P&G, Dabur,
Himalaya, Patanjali
Skincare 24-25% 28%
HUL, Dabur,
Himalaya, Patanjali
Toothpastes, Soaps,
Hair Oil
22-24% 18%
Colgate-Palmolive,
HUL, P&G
Butter, Cheese 4-5% 12%
Amul, Nestle,
Mother Dairy
Detergents 23% 28%
HUL, P&G, Jyothy
Laboratories
Sanitary Napkins 10-11% 18%
P&G Hygiene and
Health Care
Hair Dyes 23-28% 28%
Godrej Consumer
Products
Ayurvedic
Medicine
7-10% 12% Dabur, Emami
The goods in the FMCG sector are mainly divided into four categories:
Table 2 – The composition of the FMCG sector3
Category Share of the Sector (in percentage)
Food 43
Personal Care 22
Home and Fabric Care 12
Others 23
The government has set tax rates for FMCGs irrespective of which category they belong to.
The taxation is based on the nature of the product’s consumption, whether it is a need or a

7. 7
luxury. Which in a way means that goods with higher PEDs have been taxed more than the
goods with lower ones. Products such as milk, eggs, curd and fresh vegetables (also necessities)
have been given an exemption from the tax.4
On the other hand, luxurious products such as dry
fruits have been heavily taxed. Aerated drinks have also been placed in the highest tax slab of
28%.
Research on how GST affects the prices and quantities of FMCGs was done by taking a sample
of goods from three FMCG categories, the goods were taken keeping in mind how frequently
the are bought by consumers. Products like butter and cottage cheese are bought almost on a
daily basis and toothpaste, hair oil and detergent bars on a monthly basis. The table below
shows the change in the prices or quantities of the chosen sample of goods after GST was
imposed:
Table 3 – Changes in price and quantities of FMCGs5
Product Change in Price or Quantity
Butter Price unchanged
Cottage Cheese Price reduced by 5%
Toothpaste Price reduced by 8-9%
Hair Oil Price unchanged
Detergents (Rin Bar) Price reduced from Rs.18 to Rs.15
Detergents (Surf Excel Bar) Quantity increased from 95g to 105g
4
ClearTax. “GST – What Is GST in India? Goods & Services Tax Law Explained.” What Is GST in
India? Goods & Services Tax Bill Explained, cleartax.in/s/gst-law-goods-and-services-tax
5 Sally, Madhvi. “GST Impact: Dairy Companies See No Revenue Change; Say Consumer Will Be
the King.” The Economic Times, ET Bureau, 2 July 2017,
economictimes.indiatimes.com/industry/cons-products/food/gst-impact-dairy-companies-see-no-
revenue-change-say-consumer-will-be-the-king/articleshow/59416212.cms.

8. 8
According to reports and statements from high ranked officials, Amul has reduced the prices
of cottage cheese by 5% and the price of butter is unchanged due to marginal changes.6
Colgate-Palmolive has reduced the prices of toothpaste by 8-9% to pass on the benefits of the
GST to the customers.7
Although the tax on hair oil has been reduced from 28 to 18%, there is
no change in the price because the companies like Dabur, Marico, BJCOR and Emami that
make hair oil operate in exempted zones where they do not pay an excise tax, only VAT
because of which the effects are balanced out and there is no change in prices.8
HUL has also
reduced the prices and increased quantities of its detergents in an attempt to pass in the benefits
to the consumers. The price of the Rin Bar has been reduced from Rs.18 to Rs.15 and the
quantity of the Rs.10 Surf Excel Bar has been increased from 95g to 105g.9
One of the biggest reasons due to which it is possible that the prices of FMCGs have fallen is
the reduction in logistic costs. The distribution costs for firms in the FMCG sector used to
amount to approximately 2-7% of the total cost however this cost has dropped down to 1.5%
after the GST software has come into use. 10
The GST software has allowed smoother
6 Sally, Madhvi. “GST Impact: Dairy Companies See No Revenue Change; Say Consumer Will Be
the King.” The Economic Times, ET Bureau, 2 July 2017,
economictimes.indiatimes.com/industry/cons-products/food/gst-impact-dairy-companies-see-no-
revenue-change-say-consumer-will-be-the-king/articleshow/59416212.cms.
7 PTI. “Colgate-Palmolive Cuts Prices of Toothpaste by 9%.” The Economic Times, 8 July 2017,
economictimes.indiatimes.com/industry/cons-products/fmcg/colgate-palmolive-cuts-prices-of-
toothpaste-toothbrush-by-9-per-cent/articleshow/59503978.cms.
8 WebTeam, ZeeBiz. “FMCG Smiles: Colgate Biggest Beneficiary of GST; Patanjali, Dabur May Cut
Rates, Others Neutral.” Zee Business, ZeeBiz, 19 May 2017, www.zeebiz.com/companies/news-
fmcg-smiles-colgate-biggest-beneficiary-of-gst-patanjali-dabur-may-cut-rates-others-neutral-16399.
9
India, Press Trust of. “GST Impact: HUL Slashes Prices of Detergents, Soaps; Extends Tax
Benefits.” Business Standard, Business-Standard, 2 July 2017, www.business-
standard.com/article/economy-policy/gst-impact-hul-slashes-prices-of-detergents-soaps-extends-tax-
benefits-117070200372_1.html.
10
Industry Experts. “Post-GST Impact on FMCG Sector.” Post-GST Impact on FMCG Sector, 21
Sept. 2017, www1.avalara.com/in/en/blog/2017/09/post-gst-impact-fmcg-sector.html.

9. 9
management in the supply chain in view of the removal of CST under the GST regime, paying
taxes, claiming input credit. This has resulted in reduced transportation and storage costs and
thus, the prices.
Till this point in the investigation, from the secondary research conducted, it was evident that
the prices of most of the FMCGs were reducing due to the tax being reduced by the government
and the fall in the costs of logistics. This hinted at the point that the FMCG sector as a whole,
had inelastic demand as the prices of most of the goods were reduced. To further verify this
claim, a survey was conducted to understand the nature of the FMCG sector. The data for
FMCGs as a whole was collected because in each of the product categories there are thousands
of products and have varied consumption patterns and not all of them will have inelastic
demand, some goods may have inelastic while others may have elastic demand.
Price Elasticity of Demand and the Retail FMCG Sector
FMCGs consist of products such as processed food, detergents, shampoo, skincare, butter,
cottage cheese, milk, cheese etc. These are essential products of mass consumption and are
consumed on a daily basis, thus making them a need for the consumers. As these products are
needs, the demand for them is inelastic.
Price Elasticity of Demand is the degree of responsiveness of the demand for a good or a
service with a change in its price. If the demand for a product is inelastic, the percentage change
in its quantity demanded is lower than the percentage change in its price.
PED = 1, Unitary Elasticity
PED < 1, Inelastic Demand
PED > 1, Elastic Demand

10. 10
Figure 1 – Demand and Supply Diagram for FMCGs with PED < 1
Figure 1 shows that the demand function for FMCGs (D) is inelastic. If the GST imposed on
an FMCG is more than the rate it was previously taxed at, the costs for the producer would
increase leading to a decrease in supply, a leftward shift of the supply curve for S1 to S2. This
would lead to the price increasing from P1 to P2 and the quantity demanded reducing from Q2
to Q1. If the GST imposed is less than what the good was previously taxed at, the costs of the
producer would reduce and the supply curve would shift rightward (increase in supply) from
S1 to S3. The price would fall from P1 to P3 and the quantity demanded would increase from
Q2 to Q3. In both these cases, the percentage change in the price of FMCGs is more than the
percentage change in the quantity demanded.11
11
Tragakes, Ellie. Economics for the IB Diploma. Cambridge University Press, 2012.

11. 11
Data Collection and Analysis
The Market –
The Gurgaon retail market is a mix of the organized, the unorganized and the e-commerce
segment, as shown in the chart below:
Chart 1 – Composition of the Gurgaon market12
The segment, which is enlisted with the government is called an organized sector. In this
division, individuals get guaranteed work, and the business terms are settled and customary.
An unorganized sector is one which is not registered with the government and has no fixed
terms of employment.13
The e-commerce segment is related to the online sale and purchase of
goods and services by producers and consumers. Although the unorganized sector takes up a
huge portion of the market (91%), the proportions of the retail sectors in various areas are
mostly dependent on the social class and the economical condition of the people living there.
For further investigation, four different localities in Gurgaon were taken to compare the number
12
India, Congress, Wazir Advisors. “The Indian Retail Medley.” The Indian Retail Medley,
Confederation of India Industry, 2015, pp. 1–28. wazir.in/pdf/Indian%20Retail%20Medley-
%20Wazir%20CII%20Theme%20paper%20-%20May%202015.pdf.
13
S, Surbhi. “Difference Between Organised and Unorganised Sector (with Comparison Chart).” Key
Differences, 1 July 2017, keydifferences.com/difference-between-organised-and-unorganised-
sector.html.
91%
8%
1%
Unorganized Organized E-Commerce

12. 12
of retailers in their organized and unorganized sectors to find out the people living there
belonged to which socio-economic group which would allow for a diverse sample for data
collection.
1. Sohna Road, Sector – 48, Gurgaon
2. Golf Course Road, Sector – 54, Gurgaon
3. Palam Vihar, Sector – 23, Gurgaon
4. Huda Colony, Sector – 4, Gurgaon
*The list of the retailers and the segment they belong to have been mentioned in the Appendix.
Chart 2 shows the number of organized and unorganized sector retailers in the four localities:
Chart 2 – Retailers in the four chosen localities
Looking at the data it can be said that Sohna Road and Palam Vihar have a fairly balanced
number of organized and unorganized sector retailers which means that the people living in
these areas are fairly strong economically as big organized sector retailers are usually located
in places where socially and financially strong people live. The existence of unorganized sector
retailers signals that the people living here prefer to buy goods from both, the big retailers and
the small kirana stores.
0 1 2 3 4 5 6
Huda Colony, Sector – 4, Gurgaon
Palam Vihar, Sector – 23, Gurgaon
Golf Course Roa, Sector - 54, Gurgaon
Sohna Road, Sector – 48, Gurgaon
Unorganized Sector Firms Organized Sector Firms

13. 13
Golf Course Road mainly has stores which are a part of the organized sector implying that the
people living in that locality are really strong socio-economic groups as these are the people
who do not prefer to go to small unorganized sector retailers for shopping. On the other hand,
Palam Vihar has retailers mostly from the unorganized sector which means that the people
living in this area are on weaker financially as compared to the other groups.
Conducting the survey in such locations allows for a diverse sample with consumers from
various income groups and different consumer spending patterns, thus making the data
collected more reliable.
Survey –
The survey was conducted with a sample size of 100 people with 25 people from each of the 4
localities. The aim of this survey was to find out the nature of the FMCG market as a whole,
whether it is elastic or inelastic. To achieve this goal, the questions in the survey were focused
on consumer spending patterns.
The following questions were asked in the survey:
1. What is your annual income? (in rupees)
2. How frequently did you buy FMCGs in a week before GST was imposed?
3. How frequently do you buy FMCGs in a week now?
4. What was the percentage of your monthly income that you spent on FMCGs before
GST?
5. What is the percentage of monthly income spent on FMCGs after GST?
*The questions along with their answer choices have been mentioned in the Appendix.

14. 14
Data Analysis –
Graph A – Annual income of consumers
Graph A shows the annual income of the consumers, the people with incomes more than
Rs.10,00,000 will mainly be the ones who live on Golf Course Road and do most of their
shopping from organized sector retail outlets. People with incomes between Rs.5,00,000 and
Rs.10,00,000 are likely to be people living on Sohna Road and Palam Vihar. Income group of
lower than Rs.5,00,000 is most likely the people living in Huda Colony. The main purpose
behind including this question in the survey was to justify the fact that there may be people
who spend a very high proportion of their income on FMCGs although they do not take up too
large a part of the income of the average consumer. The main reason for this is their income
and not the amount they spend on FMCGs. For example, a person living on the Golf course
road may spend Rs.30,000 in a month on FMCGs and a person living in the Huda Colony
spends the same amount as well. However, as their incomes are different, the proportion of
their incomes that they spend on FMCGs will differ.

15. 15
Graph B – How frequently FMCGs were bought before GST was imposed
Graph C – How frequently FMCGs are bought now (after GST imposition)
Graph B and C show how frequently consumers bought FMCGs in a week before and after
GST was imposed. It is evident that the changes in the frequencies are minimal and not enough
to state that the consumption patterns have changed due to the imposition of GST because
changes of such degrees can be due to a number of factors other than GST.

16. 16
Graph D – Percentage of income spent on FMCGs before GST was imposed
Graph E – Percentage of income spent on FMCGs after GST was imposed
According to Graph D, almost 90% of the people spend less than 20% of their income on
FMCGs which is a fairly less as compared to the expenditure on other consumer goods. Only
the remaining 10% spend 21-50% of their income on FMGs. In Graph E as well, the percentage
of income spent on FMCGs is lower than 20% for around 88% of the people who took part in
the survey. The other 12% spend between 20 to 50%. As proven by the data, the change in the
percentage of income spent is to the bare minimum thus implying that the change in the prices

17. 17
of FMCGs is hardly noticeable, it is even possible that the prices of most commodities have
reduced but it is because of some products which have become more expensive, the percentage
of income spent has increased for some people. As mentioned previously, some people spend
a much higher percentage of their incomes on FMCGs as compared to others which is mainly
because they belong to a different income group.
Overall, after extensive research and a theoretical analysis, it can be said that FMCGs have an
inelastic demand (PED < 1). The reason for that is the consumption of these items which did
not decrease by a great margin before and after GST was imposed, implying that they are a
need and not a luxury. Secondly, these items, in most cases, take up a very low percentage
of the consumer’s income and thus, even if their prices rise, consumers are willing to pay for
it. It might be argued why consumers cannot switch to substitutes, the problem being that in a
highly competitive market like Gurgaon’s the companies are already using competitive pricing
and so the price difference, if there is any, is minimal. Another important factor is that if there
is a price increase due to GST, it will be there for its substitutes too as they are both the same
type of goods and according to the way the GST is modelled, come in the same tax slab.
Taxation and the Effect on Consumers and Retailers
As mentioned previously, the taxes for FMCGs with inelastic demand have been reduced under
GST as compared to the old taxation system. The GST in a way is the consumer’s tax, the
government has tried to reduce taxes on goods and services whose consumption is essential.
These are goods and services which are consumed by people of all income groups so it is
important to make them more affordable.

18. 18
When a good or a service is taxed, a part of the tax is borne by the producer and the other by
the consumer. The burden of the tax is known as tax incidence.14
The factor that influences the
incidence of the tax is the price elasticity of the good or the service. Whether the good is price
elastic or inelastic determines on whom more of the tax burden is going to be, the consumer or
the producer.
Inelastic Demand
For goods with inelastic demand, the burden of the tax is more on the consumers because even
if the price of FMCGs increases, the percentage decrease in the quantity demanded will not be
as much as the percentage increase in the price. As the taxes on FMCGs with inelastic demand
has been reduced as compared to the old taxation system, the concept of taxation can be used
to determine whether the consumers benefit from the reduced taxes.
Figure 2 and 3 show the benefit of reduced taxes on the consumers:
Figure 2 – Incidence of taxation for FMCGs Figure 2 – Incidence of taxation for FMCGs
before GST after GST
14 Tragakes, Ellie. Economics for the IB Diploma. Cambridge University Press, 2012.

19. 19
The shaded region is the tax revenue collected by the government. Figure 1 shows the supply
shifting upward when the old taxation system was being used and Figure 2 shows the supply
curve shifting downward from S2 to S3 after GST was imposed as the taxes were reduced.
The shaded region is the tax revenue collected by the government which is fairly lower after
GST. Thus the customers and producers have to pay less tax and the equilibrium price of
FMCGs decreases from 𝑃𝑐 to 𝑃𝑐1 and the equilibrium quantity increases from Qt to Qt1
which benefits the customers as they now have to pay lower prices for the same good or they
get a higher quantity for the same price.
Reduced prices increase the demand for FMCGs thus leading to an increase in the sales
(increased revenue) and the profitability of retailers.
Elastic Demand
When the demand is elastic, the burden of the tax is more on the producer because if the price
increases due to taxation, the consumers would reduce their spending on these goods. To
prevent that, the producers take most of the burden as shown in Figure 4:
Figure 4 – Incidence of taxation for FMCGs

20. 20
S1 is the supply in the old taxation system and moves up to S1 after GST is imposed because
the government has increased taxes on goods with elastic demand to make up for the revenue
lost due to reduced taxes on inelastic goods.
Even though the taxes are increased, the burden on the consumers will not be as much due to
elastic demand and so the FMCGs which have elastic demand will still be affordable for
consumers.
The increase in the prices might lead to reduced sales and revenues for the retailers as the
goods have elastic demand. Retailers may also lose if the price at which the product is sold to
them by the producer is increased but the MRP (Maximum Retail Price) is the same. This
would mean that the profitability of the retailers decreases because the profit they earn off of
each unit sold decreases.
Conclusion
The market for FMCGs in Gurgaon is a competitive one, there are a lot of organized and
unorganized sector retailers. Through research it could be concluded that although 91% of the
sector is unorganized, these number vary from region to region depending on the social and
economical status of the people living there.
From the secondary data that has been collected it can be inferred that the government wants
to make goods of daily consumption, goods which are necessities, cheaper so that every
income group can afford them. Tax rates for luxuries on the other hand, have been increased.
In a way, the more is the price elasticity of a good or a service, the more is the tax on it.

21. 21
According to the results of the survey, FMCGs are in general, goods with inelastic demand as
they take up a very low proportion of the consumer’s income and are a need. The substitutes
for these goods are also taxed equally so the consumers cannot switch to them either. The
concept of taxation was explored to find out who benefits from reduced tax rates and what is
the incidence of taxation when the tax rates are increased.
In the exploration it was discovered that for goods with inelastic demand, the burden of the
tax has decreased due to reduced tax rates and the customers benefit from lower prices.
Lower prices lead to an increase in the quantity demanded and thus the retailers benefit from
increased sales and profits. For FMCGs with elastic demand on the other hand, the burden is
mainly on the producer thus the government has raised taxes on these to make up for the lost
revenue in inelastic FMCGs. However, these goods are still affordable because the increase
in price is not too much because of the elastic demand.
Overall, the effect of GST on the consumers of FMCGs has been a positive one as they are
getting most of the products at lower prices due to the reduced taxes and the reduced logistic
costs of producers resulting from the new GST software release. The retailers are also
benefitting from the reduced prices which result in increased sales and revenues. However,
under certain circumstances it is possible for retailers to lose from the sale of FMCGs with
elastic demand but such circumstances are the least probable.
There were some limitations in the research due to which the reliability of the results was
affected. The first was the sample size of the survey and the number of locations chosen. If a
bigger sample was chosen, the data would be more accurate and reliable. The second is the
lack of data in relation to the reduction in costs of production of FMCGs due to the decrease

22. 22
in logistic costs. If data specific to product types was available, a clearer conclusion on the
reduction of product prices could be drawn.

23. 23
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presentation.
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What Is GST in India? Goods & Services Tax Bill Explained, cleartax.in/s/gst-law-
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sector.html.
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wazir.in/pdf/Indian%20Retail%20Medley-
%20Wazir%20CII%20Theme%20paper%20-%20May%202015.pdf.
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Chart).” Key Differences, 1 July 2017, keydifferences.com/difference-between-
organised-and-unorganised-sector.html.
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 Sally, Madhvi. “GST Impact: Dairy Companies See No Revenue Change; Say
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economictimes.indiatimes.com/industry/cons-products/food/gst-impact-dairy-
companies-see-no-revenue-change-say-consumer-will-be-the-
king/articleshow/59416212.cms.
 PTI. “Colgate-Palmolive Cuts Prices of Toothpaste by 9%.” The Economic Times, 8
July 2017, economictimes.indiatimes.com/industry/cons-products/fmcg/colgate-

24. 24
palmolive-cuts-prices-of-toothpaste-toothbrush-by-9-per-
cent/articleshow/59503978.cms.
 WebTeam, ZeeBiz. “FMCG Smiles: Colgate Biggest Beneficiary of GST; Patanjali,
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www.zeebiz.com/companies/news-fmcg-smiles-colgate-biggest-beneficiary-of-gst-
patanjali-dabur-may-cut-rates-others-neutral-16399.
 India, Press Trust of. “GST Impact: HUL Slashes Prices of Detergents, Soaps;
Extends Tax Benefits.” Business Standard, Business-Standard, 2 July 2017,
www.businessstandard.com/article/economy-policy/gst-impact-hul-slashes-prices-of-
detergents-soaps-extends-tax-benefits-117070200372_1.html.

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Appendix
Retail Stores in each Area
1. Sohna Road, Gurgaon, Sector – 48
 Retail stores in the organized sector-
o Big Bazaar
o Easy Day
o More
o NEEDS
 Retail store in the unorganized sector –
o RK Daily Needs
o Apna Departmental Store
o Khurana General Store
o Yadav General Store
2. Golf Course Road, Gurgaon, Sector – 54
 Retail stores in the organized sector-
o Reliance Fresh
o Vita Dairy
o Modern Bazaar
o Le Marche
o Big Bazaar
 Retail store in the unorganized sector –
o Lohiya’s Mart
3. Palam Vihar, Gurgaon, Sector – 23
 Retail stores in the organized sector-
o Reliance Fresh

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o Easy Day
o Spencer’s Supermarket
o Mother Dairy
 Retail store in the unorganized sector –
o Daily Needs
o VM Retail
o Vandana General Store
o Discount Store
4. Huda Colony, Sector – 4, Gurgaon
 Retail stores in the unorganized sector-
o Punjab Dairy
o Sage General Store
o Gobind Departmental Store
o Hans General Store
Survey Questions
1. What is your annual income? (in rupees)
 Less than 50,000
 50,001 – 1,00,000
 1,00,001 – 5,00,000
 5,00,001 – 10,00,000
 More than 10,00,000
2. How frequently did you buy FMCGs in a week before GST was imposed?
 Everyday

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 Alternate Days
 Once or twice
3. How frequently do you buy FMCGs in a week now?
 Everyday
 Alternate Days
 Once or twice
4. What was the percentage of your monthly income that you spent on FMCGs before
GST?
 Less than 5%
 6-10%
 11-20%
 21-40%
 41-50%
5. What is the percentage of monthly income spent on FMCGs after GST?
 Less than 5%
 6-10%
 11-20%
 21-40%
 41-50%