A RESEARCH PROJECT REPORT ON

IMPACT OF THE GOODS AND SERVICES TAX

ON HOUSEHOLD AND REAL ESTATE

Bachelor of Business Administration

(Batch: 2016-2019)

Supervised by: Submitted by:

Swati Oberoi Srishti Sharma

Assistant Professor 10815901716

Semester 3(B)

Morning Shift

RUKMINI DEVI INSTITUTE OF ADVANCED STUDIES

(Affiliated to Guru Gobind Singh Indraprastha University)
2A & 2B, Madhuban Chowk, Outer Ring Road, Phase-1, Delhi-110085

An ISO 9001:2008 Certified Institute

 Table of Contents
Certificate from
Guide…………………………………………………………………………………………..……… i

Student
Declaration………………………………………………………………………………………...…ii

Acknowledgement……………………………………………………..……………………….……iii

Executive Summary …………………………………………………….…………………….….…iv

List of Tables …………………………………………………………………………………….….vi

List of Graphs ………………………………………………………………………………………vii

CHAPTER- 1: PLAN OF THE STUDY

1.1 What is gst………………………………………………………….…………….2

1.2 History of gst……………………………………………………………..……....4
1.3 Advantages of GST ……………………………………………………………...4
1.4 Benefits ………………………………………………………………………….6
1.5 Salient features of GST…………………………………………………………..9

CHAPTER- 2: COMPANY/ INDUSTRY PROFILE

2.1 Household sector……………………………………………………………….13

2.2 Industry (real estate) sector…………………………………………………….16

CHAPTER- 3: RESEARCH METHODOLOGY

3.1 Research Methodology ………………………………………………………………....20

3.2 Research Objectives …………………………………………………………………...20

3.3 Sources of Data ………………………………………………………………………..20

3.4 Sample Size ……………………………………………………………………………21

3.5 Limitations …………………………………………………………………………….22

CHAPTER- 4: DATA ANALYSIS AND INTERPRETATION

4.1 Analysis and Interpretation ………………………………………….….24

CHAPTER- 5: FINDINGS &SUGGESTIONS

5.1 Findings…………………………………………………………………45

5.2 Suggestions ……………………………………………………………..46

CHAPTER- 6: CONCLUSION

6.1 Conclusion ………………………………………………………………49

BIBLIOGRAPHY

Bibliography …………………………………………………………………51
 ANNEXURES

Annexure 1………………………………………………………………..…53
LIST OF FIGURES
4.1 Percentage of Responses Received for Question 1 25

4.2 Percentage of Responses Received for Question 2 27

4.3 Percentage of Responses Received for Question 3 28

4.4 Percentage of Responses Received for Question 4 30

4.5 Percentage of Responses Received for Question 5 32

4.6 Percentage of Responses Received for Question 6 34

4.7 Percentage of Responses Received for Question 7 36

4.8 Percentage of Responses Received for Question 8 38

4.9 Percentage of Responses Received for Question 9 40

4.10 Percentage of Responses Received for Question 10 42

 LIST OF TABLES
4.1 Frequency of Responses Received for Question 1 25

4.2 Frequency of Responses Received for Question 2 27

4.3 Frequency of Responses Received for Question 3 28

4.4 Frequency of Responses Received for Question 4 30

4.5 Frequency of Responses Received for Question 5 32

4.6 Frequency of Responses Received for Question 6 34

4.7 Frequency of Responses Received for Question 7 36

4.8 Frequency of Responses Received for Question 8 38

4.9 Frequency of Responses Received for Question 9 40

4.10 Frequency of Responses Received for Question 10 42

 CERTIFICATE FROM FACULTY MENTOR

This is to certify that the summer training project titled “IMPACT OF THE GOODS AND
SERVICES TAX ON HOUSEHOLD AND REAL ESTATE” is an academic work done by
“SRISHTI SHARMA” submitted in the partial fulfillment of the requirement for the award of the
degree of “Bachelors in Business Administration” from “Rukmini Devi Institute of Advanced
Studies, New Delhi” under my guidance and direction. To the best of my knowledge and belief
the data and information presented by her in the project has not been submitted earlier elsewhere.

Swati Oberoi

Assistant Professor

RUKMINI DEVI INSTITUTE OF ADVANCED STUDIES

 STUDENT’S DECLARATION

This to certify that I have completed the project titled “IMPACT OF THE GOODS AND
SERVICES TAX ON HOUSEHOLD AND REAL ESTATE” under the guidance of “SWATI
OBEROI” in the partial fulfillment of the requirement for the award of the degree of “Bachelors
in Business Administration” from “Rukmini Devi Institute of Advanced Studies, New Delhi.”
This is an original work and I have not submitted it earlier elsewhere.

SRISHTI SHARMA

ENROLLMENT NO.: 10815901716

 AKNOWLEDGEMENT

I have taken efforts in this project. However, it would not have been possible without the kind
support and help of my fellow group members. I would like to extend my sincere thanks to all of
them for their hard work and team effort.

I highly appreciate the faculty member, SWATI OBEROI for her guidance and constant
supervision as well as for providing necessary information regarding the research project.

I would also like to express my gratitude towards my parents for their kind co-operation and
encouragement which helped me in the completion of this project.

A special thanks to all those people who spared their valuable time for filling our questionnaires.

Lastly, our course coordinator, DR. SMITA MISHRA needs a special mention for her support
and motivation.

SRISHTI SHARMA

ENROLLMENT NO.: 10815901716

BBA Semester 3 (B)

(Morning Shift)
 CHAPTER 1
PLAN OF STUDY
1.1 What is GST?
Goods & Services Tax Law in India is a comprehensive, multi-
stage, destination-based tax that will be levied on every value
addition.
In simple words, GST is an indirect tax levied on the supply of goods and
services. GST Law has replaced many indirect tax laws that previously
existed in India.
So, before Goods and Service Tax, the pattern of tax levy was as
follows:

Under the GST regime, tax will be levied at every point of sale.
Now let us try to understand “GST is a comprehensive, multi-
stage, destination-based tax that will be levied on every value
addition.”
Multi-stage
There are multiple change-of-hands an item goes through along its
supply chain : from manufacture to final sale to consumer.
Let us consider the following case:

 Purchase of raw materials

 Production or manufacture
 Warehousing of finished goods
 Sale of the product to the retailer
 Sale To the end consumer

Goods and Services Tax will be levied on each of these stages, which
makes it a multi-stage tax.
Destination-Based
The tax would accrue to the taxing authority which has
jurisdiction over the place of consumption which is also termed
as place of supply.
 1.2 History of GST in India

1.3 Advantages of GST

a. Removing cascading tax effect

b. higher threshold for registration

c. consumption scheme for small businesses

d. online simpler procedure under GST

e. lesser compliances

f. defined treatment for e- commerce

g. increased efficiency in logistics

h. regulating the unorganized sector

4. What are the components of GST?

There are 3 applicable taxes under GST: CGST, SGST & IGST.

 CGST: Collected by the Central Government on an intra-

state sale (Eg: Within Karnataka)
 SGST: Collected by the State Government on an intra-state
sale (Eg: Within Karnataka)
 IGST: Collected by the Central Government for inter-state
sale (Eg: Karnataka to Tamil Nadu)

In most cases, the tax structure under the new regime will be as
follows:

Transaction New Old Regime

Regime

Sale within CGST + VAT + Central Revenue will be shared

Excise/Service equally between the
the State SGST tax Centre and the State

Sale to IGST Central Sales There will only be one

another Tax + type of tax (central) in
State Excise/Service case of inter-state sales.
Tax The Center will then
share the IGST revenue
based on the destination
of goods.

1.4 Benefits
Goods and Services Tax is a win win situation for the entire
country. It brings benefits to all the stakeholders of industry,
government and the consumer. It will lower the cost of goods
and services give a boost to the economy and make the
products and services globally competitive. Gst aims to make
india a common market with common tax rates and procedures
and remove the economic barriers thus paving the pay for an
integrated economy at the national level. By subsuming most
of the central and state taxes into a single tax and by allowing a
set-off of prior – stage taxes for the transactions across the
entire value chain, it would mitigate the ill effects of cascading
improve competitiveness and improve liquidity of the business.
Gst is a destination based tax. It follows a multi-stage collection
mechanism. In this, tax is collected at every stage and the credit
of tax payed at the previous stage is available as a set off at the
next stage of transaction. This shifts the tax incidence closer to
the consumer and benefits the industry through better cash
flows and better working capital management
Goods and Services Tax is largely technology driven. It will
reduce the human interface to a great extent and this would
lead to speedy decisions
Goods and Services Tax will give a major boost to the “make in
India” initiative of the government of India by making goods
and services produced in India competitive in the national as
well as international market. Also all imported goods will be
charged to the integrated tax (IGST) which is equivalent to the
Central GST + State GST. This will bring equality with taxations
on local products.
Under the GST regime, exports will be zero-rated in entirely
unlike the present system where refund of some taxes may not
take place due to fragmented nature of in directed taxes
between the centre and the states. This will boost Indian
exports in the international market thus improving the balance
of payments position. Exporters with clean track record will be
rewarded by getting immediate refund of 90% of their claims
arising on accounts of exports, with in 7 days.
GST is expected to bring buoyancy to the government revenue
by widening the tax base and improving the tax compliance.
GST is likely to improve India’s ranking in the ease of doing
business index and is estimated to increase the GDP growth by
1.5 to 2%
Gst will bring more transparency to indirect tax laws. Since the
whole supply chain will be taxed at every stage with credit of
taxes paid at the previous stages being available for set off at
the next stage of supply, the economics and tax value of
supplies will be easily distinguishable. This will help the
industries to take credit and the govt. to verify correctness of
taxes paid and the consumer to know the exact amount of
taxes paid.

The taxpayers will not be required to maintain records and

show compliance with a myriad of indirect tax laws of the
central govt. and the state govt. like central excessive, service
tax, vat, central sales tax, octroi, entry tax, luxury tax,
entertainment tax, etc. They would only need to maintain
records and show compliance in respect of central goods and
service tax act and state goods and service tax act for all intra-
state supplies and with integrated goods and service tax for all
inter-state supplies.
1.5 Salient features of GST
The salient features of GST are:

The gst would be applicable on the supply of goods or services as

against the present concept of tax on the manufacture or sale of goods
or provision of services. It would be a destination based consumption
tax. This means that tax would accrue to the state or the union territory
where the consumption takes place. It would be a dual gst with the
centre and states simultaneously levying tax on a common tax base.
The gst to be levied by the centre on intra- state supply of goods or
services would be called the central tax (cgst) and that to be levie by
the states including union territories with legislature/ union territories
without legislature would be called the state tax (sgst) / union territory
tax (utgst) respectively.

The gst would apply to all goods other than alcoholic liquor for human
consumption and five petroleum products, viz. petroleum, crude,
motor spirit, high speed disel, natural gas and aviation turbine fuel. It
would apply to all services barring a few specified. The gst would
replace the following taxes currently levied and collected by the centre:

a. Central excessive duty

b. Duties of excessive (medicinal and toilet preparations)
c. Additional duties of excise (goods and special importance)
d. Additional duties of excise (textiles and textiles products)
e. Additional duties of customs (commonly known as CVD)
f. Special additional duty of customs (SAD)
g. Service tax
 h. Central surcharges and cesses so far as they relate to supply of
goods and services

State taxes that would be subsumed under the gst are :

a. State VAT
b. Central Sales Tax
c. Luxury Tax
d. Entry Tax
e. Entertainment and Amusement Tax
f. Tax on advertisements
g. Purchase Tax
h. Taxes on lotteries, betting and gambling
i. State Surcharges and Cesses so far as they relate to supply of
goods and services

The list of exempted goods and services would be common for the
centre and the states.

Threshold exemption: Taxpayers with an aggregate turnover in a

financial year up to Rs.20 lakhs would be exempt from tax. Aggregate
turnover shall be computed on all India basis. For eleven special
category state, like those in the north east and the hilly state, the
exemption threshold shall be Rs.10 lakhs or taxpayers eligible for
threshold exemption will have the option of paying tax with input tax
credit (ITC) benefits. Taxpayers making interstate supplies or paying tax
on reverse charge basis shall not be eligible for threshold exemption.

Consumption Levy: Small taxpayers with an aggregate turnover in

financial year up to Rs.50 lakhs shall be eligible for composition levy .
Under the scheme, taxpayers shall pay tax as a percentage of his
turnover during the year without the benefits of ITC. The rate tax CGST
and SGST each shall not exceed –

a. 2.5% in case of restaurants etc.

b. 1% of the turnover in a state in case of manufacturer.
c. 0.5% of the turnover in state in case of other supplies.
 Chapter-2
Company/Industry Profile
The Goods and Services Tax (GST) is beyond doubt the most
revolutionary tax-related reform to be seen in India in several decades,
since it will eliminate the conflicting and cascading taxation structures
which have confounded several industries over the past few decades. It
will most certainly have a profound effect on India's economic
prospects.

A single indirect tax which covers all goods and services will, in the long
run, increase tax collection by making it easier for retailers and several
other businesses to comply and also moderate overall taxation levels.
That said, it should be remembered that the favorable effects of this
new taxation regime will become evident only within 2-3 years of its
implementation

There are many sectors that are affected after the implementation of
GST but this project only focuses on the two main sectors that are the
household and the industry (real estate).

2.1 Household sector

The GST has an impact on your household budget. Remember, there
are some key components pertaining to your household budget that
are impacted but the good news for household budgets is that the
government has tried to keep food products in the range of 0-5% GST
while common use toiletries have been kept around the average rate of
18%. This will ensure the household budget is not negatively impacted.
Whereas, there are some services like telecom services that will
become more expensive, but the overall impact on your household
budget is unlikely to be very substantial. That is, of course, assuming
that your monthly budget does not allocate too much spending on
high-end products each month. Such products, under the GST, attract
the peak rate of tax and you see these prices going up. Of course, if you
are buying textiles under Rs.1000/- you get the benefit of concessional
rates of GST.

2.1.1 Life style expenses could go up due to GST

Within your household budget, there are likely to be some obvious
gainers and some obvious losers. For example, the GST for most of the
popular food items is in the range of 0-5%. That will continue to keep
food inflation low, as is visible in the last few months. Outside of the
GST, the good monsoon is likely to keep food prices tepid during the
year. Food budgets are unlikely to go up; in fact it is more likely that it
may actually go down.

Your life style bills are likely to go up. For example, be it air travel or
train travel; travelling by premium classes means you pay higher rate of
GST compared to economy classes. Your mobile bill and monthly DTH
bills will get costlier as the rate of GST will take the service tax from
15% to 18%. However, most telecom companies have been pampering
customers with freebies and additional discounts hence the overall
impact may not be really palpable.

2.1.2 Telecom, DTH expense depends on consumer

knowledge
Many of us tend to believe that GST is all about the rates alone. In
reality it is also about the seamless input tax credits that they get. So
while your telecom company or your DTH provider will charge you 18%
GST instead of 15% service tax, remember also tell them that they need
to pass back the benefits of input tax credits to the end customer. From
your household budget point of view, your service provider will always
be happy to provide you that extra bit if you appear to be more
knowledgeable.
Secondly, there is an important anti-profiteering clause that has been
inserted by the GST Council. Under this clause, any cut in tax rate by the
GST Council will have to be directly passed on to the end customer.
Failure to pass on will actually invite penal action for the service
provider. As a consumer with a household budget, these are two things
you need to be perfectly aware of to protect your interest and in the
process your household budget too.

2.1.3 Investment, insurance costs have faced a

boost.
Your household budget is not just about expenses but also about
savings. You need to address this issue in two ways. Firstly, you need to
understand that your service costs in terms of insurance, equity
transactions, MF costs have gone up. Hence you need to understand to
what extent the savings from your household expense budget can
compensate for that.

Secondly, you need to tweak your budget to make it more sensible in

the post-GST scenario. Why pay more for a premium product and also
pay a higher GST when you can get similar value in a lower priced
product with much lower GST. Textiles are a classic example. Toiletries
could be another case in point. You need to tweak your household
budget smartly to make it more meaningful in the post-GST scenario.
2.2 The Industrial Sector

Though the goods and services tax (GST) tax structure has been
announced, there is still a lot of conjecture about which tax rate will be
applicable to the real estate and construction industry.

The taxes in the real estate sector increased upto to 12%. However,
the GST rate is not the only important factor. The abatement rules as
applicable under the service tax regime and the input tax credit facility
for developers will determine if the effective tax incidence on real
estate is lower or higher under GST.

Effectively, the composition scheme allowing for abatement against

cost of land to the extent of 75% of the house cost for residential units
priced under INR 1 crores and less than 2000 sq. ft. makes the effective
rate at 3.75%. In other cases, the abatement goes down to 70%, making
the effective rate at 4%. This will go a long way in determining whether
GST is tax neutral or tax adverse for real estate.

The Government has offered some clarity on the abatement rules for
under-construction houses and input tax credit benefits for developers.

2.2.1 Impact on Residential Real Estate:

If we look at the residential property sector, sales are not just impacted
by tax rates but also by sentiment, and also on account of the trust
deficit which the Real Estate Regulation & Development Act - or RERA -
now seeks to address. That said if costs do go higher under GST, the
lower prevailing current home loan rates could assuage the impact to
some extent.

Buyers and investors as well as developers are understandably worried

that the final ticket size of homes will increase even if the Government
levies GST at 12%, when compared to the existing service tax rates.
Developers are still awaiting further clarity on this, but they know that
it is in the interest of their business to keep ticket sizes range-bound.
Evolving market dynamics have already brought about a change in the
manner in which developers work. Staying customer-centric and
delivery-focused to create a differentiated identity will be the most
logical and likely method for them to adopt.

2.2.2 Impact on Rental Housing

Other doubts pertain to the rental housing market, which would
naturally be impacted if the Government were to tax residential leases
under GST. The common apprehension is that if this were to happen,
the rental housing segment may see a huge slump over the medium-
term, since residential leases are currently not taxed at all.

Here, it is pertinent to note that residential leasing is an inherent

demand which will not evaporate merely by higher taxes. Certainly, we
may be looking at rental stagnation or marginal decline as the market
readjusts to the new dynamics which GST will infuse. However, rental
housing demand is sticky and end-user-driven in nature, so we are
definitely not looking at a major slump in this segment because of GST
even if it does tax residential leases.

That said, rental yields in major cities could certainly moderate if GST is
levied on rental housing. In India, rental yields in housing are quite
modest at around 2-4% on an average. Rents may either hold steady or
decline marginally due to increase in housing stock. However, it is also
true that most investors in the residential sector do not invest for rental
yields but rather for the capital value appreciation, so reduced rental
yields would not independently impact sentiment.

2.2.3 Impact on Affordable Housing

Affordable housing is currently exempt from service tax. It is likely that
the government may come out with a clarification regarding the
applicability or continuing exemption under the GST.
CHAPTER – 3
RESEARCH
METHODOLOGY
3.1 RESEARCH METHODOLOGY
Methodology is the systematic, theoretical analysis of the methods
applied to a field of study. It comprises the theoretical analysis of the
body of methods and principles associated with the branch of
knowledge.

The process used to collect information and data for the purpose of
making business decisions. The methodology may include publications,
research, interviews, surveys, and other research techniques, and could
include both present and historical information.

3.2 RESEARCH OBJECTIVES

Understand the Impact of GST on real estate and household.

3.3 SOURCES OF DATA

There are two types of sources of data i.e. Primary and Secondary

Sources of
Data

Primary Secondary
Primary Sources of Data:

Primary sources are the first hand evidence left behind by observers all
the time of events. Primary sources originate in the time period that
historians are studying. They vary a great deal. They may include
personal memoirs, government documents, oral histories,
questionnaires, self observation, etc. In primary sources of data, we
have administered questionnaires and few information has been
collected through observation.

Secondary Sources of Data:

Secondary sources of data refer to data that was collected by someone

other than the user. Common sources of this include censuses,
information collected by government officials, data collected for other
research work, etc. In secondary sources of data, we have taken data
from books, internet, published articles, and journals.

3.4 SAMPLE SIZE

A sample of 77 people has been taken into consideration in which most
of the surveys were completed by the young youth.
This is to study and analyze the current situation where people are
aware of the impact, implementation of GST.

3.5 LIMITATIONS
There are mainly two limitations of the project report i.e.

1. TIME CONSTRAINTS: The allocated time was too less to cover a

vast population.

2. BUDGET CONSTRAINTS: Money & related resources were scarce.

DATA LIMITATION: We could not collect extensive data as we had

intended to
 Chapter-4
Data Analysis And
Interpretation
Queston 1:- Are you aware about GST?

Options Frequency

Yes 76

No 1

Table 4.1 Frequency of Responses Received for Question 1

Fig 4.1 Percentage of Responses Received for Question 1

INTERPRETATION

ACCORDING TO OUR ANALYSIS

YES 76

NO 1

MEAN = ΣX/N

= 76+1/2
 =78/2

=39

MEDIAN = (N/2) TH TERM

= (78/2) TH TERM

= 39 TH TERM

= YES

MODE = Since YES comes more than NO

YES is the modal value

Question 2:- Are you aware about the implication of GST in India?

Options Frequency

Yes 68

No 10

Table 4.2 Frequency of Responses Received for Question 2

Fig 4.2 Percentage of Responses Received for
INTERPRETATION

ACCORDING TO OUR ANALYSIS

YES 68

NO 10

MEAN = ΣX/N

= 68+10/2

= 78/2

= 39
MEDIAN = (N/2) TH TERM

= (78/2) TH TERM

= 39 TH TERM

= yes

MODE = Since YES comes more than NO and MAYBE

YES is the modal value

Question 3:- According to you which sector is adversely effected by

GST?
Options Frequency

Household 35

Real estate 38

Table 4.3 Frequency of Responses Received for Question 3

Fig 4.3 Percentage of Responses Received for Question 3

 INTERPRETATION

ACCORDING TO OUR ANALYSIS

Household 35

Real estate 38

Option 3 1

MEAN = ΣX/N

= 35+38+1/3

= 74/3

= 24.66

MEDIAN = (N/2) TH TERM

= (74/2) TH TERM

= 37 TH TERM

= real estate

MODE = Since real estate comes more than household an option 3

real estate is the modal value

Question 4:-Do you think the implication of GST is beneficial?

Options Frequency

Yes 26

No 17

May be 34

Table 4.4 Frequency of Responses Received for Question 4

Fig 4.4 Percentage of Responses Received for Question 4

INTERPRETATION

ACCORDING TO OUR ANALYSIS

YES 26

NO 17

MAYBE 34

MEAN = ΣX/N

= 26+17+34/3

= 77/3

= 25.66

MEDIAN = (N+1/2) TH TERM

= (77+1/2) TH TERM

= 39 TH TERM

= may be

MODE = Since may be comes more than yes and no

May be is the modal value

Question 5:-According to you the gap between the rich and the poor
has ________ ?
Options Frequency

Increase 55

Decrease 21

Table 4.5 Frequency of Responses Received for Question 5

Fig 4.5 Percentage of Responses Received for Question 5

INTERPRETATION

ACCORDING TO OUR ANALYSIS

Increase 55

Decrease 21

MEAN = ΣX/N

= 55+21/2

= 76/2

= 38

MEDIAN = (N/2) TH TERM

= (76/2) TH TERM

= 38 TH TERM

= increase

MODE = Since increase comes more than decrease

increase is the modal value

Question 6:-Has GST impacted on your spending behavior on

household items?
Options Frequency

Yes 34

No 22

Maybe 20
Table 4.6 Frequency of Responses Received for Question 6

Fig 4.6 Percentage of Responses Received for Question 6

INTERPRETATION

ACCORDING TO OUR ANALYSIS

YES 34

NO 22

MAYBE 20

MEAN = ΣX/N
 = 34+22+20/3

= 76/3

= 25.3

MEDIAN = (N/2) TH TERM

= (76/2) TH TERM

= 38 TH TERM

= yes

MODE = Since yes comes more than no and MAYBE

yes is the modal value

Question 7:-Do you think the state governments should offer a

subsidy on items, if there is an unreasonable spike in their prices?

Options Frequency

Yes 54

No 10

May be 12

Table 4.7 Frequency of Responses Received for Question 7

 Fig
4.7
Perce
ntage
of
Respo
nses
Recei
ved for Question 7

INTERPRETATION

ACCORDING TO OUR ANALYSIS

YES 54
NO 10

MAYBE 12

MEAN = ΣX/N

= 54+10+12/3

= 76/3

= 25.33

MEDIAN = (N/2) TH TERM

= (76/2) TH TERM

= 38 TH TERM

= yes

MODE = Since YES comes more than NO and MAYBE

YES is the modal value

Question 8:- Has the home loans become expensive subsequent to

the kicking in of GST?
Options Frequency

Yes 45

No 28

Table 4.8 Frequency of Responses Received for Question 8

Fig 4.8 Percentage of Responses Received for Question 8

INTERPRETATION

ACCORDING TO OUR ANALYSIS

YES 45

NO 28

MEAN = ΣX/N

= 45+28/2

= 73/2

= 36. 5
MEDIAN = (N+1/2) TH TERM

= (73+1/2) TH TERM

= 37 TH TERM

= yes

MODE = Since YES comes more than NO

YES is the modal value

Question 9:- The tax system is all about balance between minimizing
compliance costs and maximizing revenue.
Options Frequency

Strongly disagree 8

Disagree 12

Neutral 29

Agree 18

Strongly agree 6

Table 4.9 Frequency of Responses Received for Question 9

Fig4.9 Percentage of Responses Received for Question 9

INTERPRETATION

ACCORDING TO OUR ANALYSIS

STRONGLY DISAGREE 8

DISAGREE 12

NEUTRAL 29

AGREE 18

STRONGLY AGREE 6

MEAN = ΣX/N

= 8+12+29+18+6/5

= 73/5
 = 14.6

MEDIAN = (N+1/2) TH TERM

= (73+1/2) TH TERM

= 37TH TERM

= neutral

MODE = Since neutral more than strongly disagre, disagree, agree and strongly
agre

NEUTRAL is the modal value

Question 10:-Current taxation system for goods and service in our

state made in the tax design and administration the systems at both
central and state levels remain complex.
Options Frequency

Strongly disagree 8

Disagree 8

Neutral 30

Agree 24

Strongly agree 4

Table 4.10 Frequency of Responses Received for Question 10

Fig 4.10 Percentage of Responses Received for Question 10

INTERPRETATION

ACCORDING TO OUR ANALYSIS

STRONGLY AGREE 8

AGREE 8

NUTERAL 30

DISAGREE 24

SRONGLY DISAGREE 4

MEAN = ΣX/N

= 8+8+30+24+4

= 74/5
 =14.8

MEDIAN = (N/2) TH TERM

= (74/2) TH TERM

= 37 TH TERM

= AGREE

ACCORDING TO OUR ANALYSIS

STRONGLY AGREE 13

AGREE 37

NUTERAL 30

DISAGREE 4

SRONGLY DISAGREE 6

MEAN = ΣX/N

= 13+37+30+4+6/3

= 90/3

= 30

MEDIAN = (N/2) TH TERM

= (90/2) TH TERM

= 45 TH TERM

=neutral

MODE = Since NEUTRAL comes more than STRONGLY AGREE, AGREE

, DISAGREE and STRONGLY DISAGREE.

MODE = Since AGREE comes more than STRONGLY AGREE,

NUTERAL, DISAGREE and STRONGLY DISAGREE.

 Chapter-5
Findings And
Suggestions
5.1 Findings
From the survey conducted among the people residing in Delhi we have found the following:

1. Around 98.7% of the people are aware about the Goods and Services Tax, whereas
there are still 1.3% of people who are unaware of it.
2. Around 88.2% of the people are aware of the implementation of the Goods and
Services Tax in India, whereas 11.8% of people are still not aware about it’s
implementation.
3. Around 52.1% people believe that the real estate (industry) sector is adversely
affected by the Goods and Services Tax, where as 47.9% of people believe that the
household sector is adversely affected by the Goods and Services Tax.
4. There are around 32.9% of people who think that the implementation of the Goods
and Services Tax is beneficial, whereas there are 22.4% of people who think that
implementation of the Goods and Services Tax is not beneficial. Also there are
44.7% of people who r not sure whether the implementation of the Goods and
Services Tax is beneficial or not.
5. After the implementation of the Goods and Services Tax 72.4% of people believe
that the gap between the rich and the poor has increased, whereas there are 27.6%
of people who think that the Goods and Services Tax has decreased the gap
between the rich and the poor.
6. There are 44.7% of people who believe that the Goods and Services Tax has
impacted on their spending behavior on household items.
7. There are 28.9% of people who believe that the Goods and Services Tax has not
impacted on their spending behavior on household items
8. There are 26.3% of people who do not know whether the Goods and Services Tax
has impacted on their spending behavior on household item or not.
9. Around 71.1% of people think that the state governments should offer a subsidy on
items, if there is an unreasonable spike in their prices.
10. Around 13.2% of people think that the state governments should not offer a
subsidy on items, if there is an unreasonable spike in their prices.
11. Around 15.8% of people are not sure whether the state governments should offer a
subsidy or not on items, if there is an unreasonable spike in their prices.
12. Around 61.6% of people believe that the home loans have become expensive
subsequent to the kicking in of GST.
13. Around 38.4% of people believe that the home loans have not become expensive
subsequent to the kicking in of GST.
 14. Around 11% of people strongly disagree that the tax system is all about balance
between minimizing compliance costs and maximizing revenue.
15. Around 16.4% people disagree the tax system is all about balance between
minimizing compliance costs and maximizing revenue.
16. Around 39.7% of people are neutral that the tax system is all about balance
between minimizing compliance costs and maximizing revenue.
17. Around 24.7% of people agree that the tax system is all about balance between
minimizing compliance costs and maximizing revenue.
18. Around 8.2% of people strongly agree that the tax system is all about balance
between minimizing compliance costs and maximizing revenue.
19. Around 10.8% of people strongly disagree that the Current taxation system for
goods and service in our state made in the tax design and administration the
systems at both central and state levels remain complex.
20. Around 10.8% of people disagree that the Current taxation system for goods and
service in our state made in the tax design and administration the systems at both
central and state levels remain complex.
21. Around 40.5% of people are neutral that the Current taxation system for goods and
service in our state made in the tax design and administration the systems at both
central and state levels remain complex.
22. Around 32.4% of people agree that the Current taxation system for goods and
service in our state made in the tax design and administration the systems at both
central and state levels remain complex.

Around 5.4% of people strongly agree that the Current taxation system for goods and
service in our state made in the tax design and administration the systems at both
central and state levels remain complex.

5.2 Suggestions
 Multiple state wise registrations will be a major hurdle for service providers who operate in
multiple states or all India basis.
 Procedures proposed for registration and returns are complex, cumbersome and regressive.
Provision of classification, valuation supply etc also go against the principle of ease of doing
business.
 Department should not have power to refuse registration which will adversely affect the
business men. Grant of registration must be made obligatory as is at present.
 Multiple registrations of same person in different states should be done away with. The
concept of centralized registration should be provided for. Further, it should be mandated to
provide in return, the details of all locations from which supply of goods / services is made by
him.
 Threshold limit for registration should be common for entire country. Presently it is proposed
Rs. 4 lakh for North East and Rs. 9 lakh for others. Alternatively, there should be a sunset clause
for this, (say 2 years).
 Definition of aggregate turnover is suitably amended so as to exclude the value of exempt and
non-taxable supplies from aggregate turnover to make it meaningful and objective. Otherwise
the purpose of exemption / threshold will be defeated.
 Definition of supply should be ‘comprehensive’ and not inclusive. It is defined as ‘supply
includes’ rather than supply means….’ This will add to litigation. The supply of capital goods
(whether to own depot or to the customer) be kept outside the purview of GST , and only the
leasing / renting / transfer of right to use the asset be subject to tax.
 Inter-state activities should exclude activities of same person. These activities are unnecessary
under the GST law, unworkable and will be tantamount to creating inter-state fiscal frontiers,
impeding free flow of goods and / services within the common market of India.
 The definition of manufacturer should be delinked from Central Excise Act and an elaborate
definition of the term ‘manufacture’ be provided to avoid litigation and interpretational issues.
 Threshold exemption limit should be kept at least at Rs. 25 lakh for services and Rs. 2 crore for
goods as anybody with lower limit can always voluntarily get registered. Also, small and
medium entities may find it difficult to maintain electronic records and wish to avoid
unnecessary inspections / litigations from the tax Department.
 Composition Scheme is meant for small taxable persons like neighborhood stores who does not
keep record of their turnover and does not issue invoices. No facility is given to them in case
they are expected to keep their turnover record. Also, the rate of tax should be percentage of
their taxable supplies (inputs), the record of which exists in electronic ledger. Linking of rates
with total turnover will distort the total scheme.
 Composition threshold should be not below Rs. one crore. Disallowing composition benefit to
the persons who affect any interstate supply of goods and / or services shall work against the
interest of small assesses as there might be a possibility that in aggregate turnover of Rs. 50
lakhs only a small amount constitute inter-state supply of goods or services which will deny him
of the benefit of composition scheme.
 Valuation rules are too cumbersome so as to even prescribe valuation of services without
consideration.
 Transaction value of goods and services should factor the ‘discounts’. There should be no tax on
free supplies.
 In GST system, it is expected that the figures submitted for GST returns will be validated with
figures submitted to Income tax. Given the fact that the sale and provision of services is one of
the factors for charging of tax, the taxable figures in GST will be far different than figures in
accounts or in income tax. A system needs to be built so that the figures in other data base
could be used for validation of figures in GST.
 The concept of granting input tax credits based on the matching concept of uploading data and
filing of valid returns by the supplier of such taxable person will most certainly lead to
innumerable amount of litigations on account of a few unscrupulous dealers.
 Input tax credit should not be denied to real estate sector and allowed to works contracts only.
Guidelines for valuation of land should be made clear and transparent. Also, non-subsuming of
stamp duty in GST should be reconsidered.
 Reversal of input tax credit used for goods and / or services used for personal or private
consumption should be allowed.
 Concept of TCS to be done away with as it proves to be detrimental to small suppliers and leads
to blockage of funds in TCS.
 Rate of interest on delay in payment of refunds by the Government should be kept at par with
the provisions relating to interest payable on delay in payment of taxes by the tax payer.
 Requirement of double payment of taxes be eliminated. Further, the refund / adjustment
procedure for such cases be made fast-tracked, simple and quick.
 Government should not hurry implementation of GST from April, 2017. There is lot of ground
work to be done. The most important is awareness, education, training and trial runs. 1 st April
2017 is not that sacrosanct but introduction of a perfect law at the right time is more
important. Country can wait for a strong and robust GST law for some more time.
Chapter-6
Conclusion
This Research Project shows the impact of the Goods and Services Tax on household and the
real estate sector, it also shows what the people think or believe by the implementation of the
Goods and Services Tax. Although the true impact of the goods and Services Tax will be shown
after 2-3 years of it’s implementation.

As we started doing survey, it came to our notice that around 98.7% of the people are aware
about the Goods and Services Tax, whereas there are still 1.3% of people who are unaware of it
from which round 88.2% of the people are aware of the implementation of the Goods and
Services Tax in India, whereas 11.8% of people are still not aware about it’s implementation

Frequency of 38 people i.e. 52.1% of population believes that the real estate (industry) sector is
adversely affected by the Goods and Services Tax, where as the frequency of 35 people i.e.
47.9% of people believe that the household sector is adversely affected by the Goods and
Services Tax.

Then there were few people who believed that the implementation of the Goods and Services
Tax is not beneficial.

Also, 72.4% of people believes that the gap between the rich and the poor has increased after the
implementation of the Goods and Services Tax.

There are 44.7% of people who feel that the Goods and Services Tax has impacted on their
spending behavior on household items.

Most of the people think that the state governments should offer a subsidy on items, if there is an
unreasonable spike in their prices.

61.6% of people believe that the home loans became expensive subsequent to the kicking in of
Goods and Services Tax.

39.7% of the people were neutral to the statement that the tax system is all about balance
between minimizing compliance costs and maximizing revenue.

40.5% of people were again neutral to the statement that the current taxation system for goods
and service in our state made in the tax design and administration the systems at both central and
state levels remain complex.

Hence it is concluded that people are getting aware day by day of the Goods and Services Tax,
also that most of the people feel that the real estate sector is more adversely effected by the
Goods and Services Tax than the household sector and that majority of people believe that the
Goods and Services Tax is beneficial.
BIBLOGRAPHY
1. www.cbec.gov.in
2. www.google.com
3. http://economictimes.indiatimes.com
ANNEXURE
 Name: ______
Email address: ________
Age: _________
Gender:_______

1. Are you aware about GST?

 Yes
 No
2. Are you aware about the implementation of GST?
 Yes
 No
3. According to you which sector is adversely affected by GST?
 Household
 Real Estate
4. Do you think the implementation of GST is beneficial?
 Yes
 No
 maybe
5. According to you the gap between the rich and the poor has
________?
 Increased
 Decreased
6. Has GST impacted on your spending behavior on household
items?
 Yes
 No
  Maybe
7. Do you think the state governments should offer a subsidy on
items, if there is an unreasonable spike in their prices?
 Yes
 No
 Maybe
8. Has the home loans become expensive subsequent to the kicking
in of GST?
 Yes
 No
9. The tax system is all about balance between minimizing
compliance costs and maximizing revenue.
 Strongly disagree
 Disagree
 Neutral
 Agree
 Strongly agree
10. Current taxation system for goods and service in our state
made in the tax design and administration the systems at both
central and state levels remain complex.
 Strongly disagree
 Disagree
 Neutral
 Agree
 Strongly agree