GST Composition Scheme: A catalyst for growth in Delhi NCR’s FMCG Industry

DOI: https://doie.org/10.0302/APER.2025787822

Authors:

Ms. Deepika , Dr. (CS) Vinit Sikka

Keywords:

Goods & Service Tax, GST Composition Scheme, FMCG Sector, National Capital Region, Impact of Composition Scheme

Abstract:

India implemented the Goods and Services Tax (GST) Composition Scheme to make tax compliance easier for small firms. This study evaluates the efficacy of GST Composition Scheme in the Delhi National Capital Region (NCR) in relation to fast-moving consumer goods (FMCG) industry. Implementing and evaluating the effects of this tax scheme on the FMCG industry, which is one of the main drivers of the Indian economy.

This study utilizes both qualitative and quantitative research approaches to investigate the advantages and difficulties that FMCG companies encounter while implementing the GST Composition Scheme. It examines how the strategy will affect the competitiveness, costs associated with compliance, and general business operations of FMCG companies in Delhi NCR. The study also looks into the scheme's impressions and experiences from FMCG entrepreneurs and industry insiders.

The results indicate that although the GST Composition Scheme has some benefits, including lessened compliance burdens and easier tax computations, there are significant drawbacks, like non availability of input tax credit and narrow eligibility requirements. Furthermore, the scheme's efficacy varies based on elements including the size of the business organization, the type of operations, and compliance capabilities. 

The analysis ends with suggestions for legislators on how to enhance the GST Composition Scheme's efficacy in Delhi NCR's FMCG industry. The purpose of these proposals is to improve the scheme's ability to support the expansion and competitiveness of FMCG companies in the area while also addressing the issues that have been highlighted.
 

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