Impacts of GST on Food Industry in Tiruchirappalli City

Abstract

here are two sorts of taxes now being paid in India: a straight tax and a meandering tax. Income Tax, Wealth Tax, and Corporate Tax are all examples of direct taxes paid by the taxpayer to the government. As opposed to an income tax, an indirect tax is levied on the value of products and services. The food industry in India is the fastest growing and is subject to the GST tax regime. As a result of the changes made to the framework for tax collection, the food sector is suffering. The implementation of the Goods and Services Tax (GST) has caused considerable consternation in the food manufacturing and distribution industries. Several commodity tax methods, previously used by retailers to gain money, were combined under the notion of goods and services tax. The taxpayer's burden will be reduced because of this reorganisation. The tax system will be transformed into a single entity throughout all states under the GST, and the tax structure will also be standardised. There were several high-cost levies imposed on the food industry under a prior tax-collecting regime. Value-added tax, service tax, and added service taxes were formerly added to food restaurant bills, however, under the GST, all these additional and unnecessary costs have been eliminated. The article aims to examine the impact of GST on food pricing and consumption demand among food consumers in Tiruchirappalli city.