A

PROJECT REPORT

ON

“IMPACTOF GST ON RETAIL SECTOR”

CHOUDHARY & ASSOCIATES
A Summer Internship Project(SIP) done in
“FINANCE”

Submitted in partial fulfillment of the requirement for the award of degree of

Master of Management Studies (MMS) under the university of Mumbai

Submitted by

NAME OF THE CANDIDATE: SWAPNALI JAGTAP

ROLL NO: 20
BATCH: 2018-2020

Under the guidance of

PROF. ALKA DHINGRA

Bharati Vidyapeeth’s
Institute of Management Studies & Research
Navi Mumbai

1
 ACKNOWLEDGEMENT

I want to prettify this report with regard to Asset villa financial advisor and BVIMSR
for giving me these prestigious opportunities. I would like to present my appreciation to
each and everyone who helped me during the summer project with their gracious presence.

I am extremely grateful to my industry guide M/s. JyotiKengarand college guide

Prof. Alka Dhingrafor their courteous consistent assist in my project report with their
sea of knowledge and vast experience. They were very assisting in their field for guidance and
help with their instinctive solution.

At last I would like to appreciate my parents, teachers, friends and all elders for their
continuous support.

Signature of the student

SWAPNALI JAGTAP
2
 (ii)
PLEASE PASTE HERE THE CERTIFICATE FROM THE COMPANY

3
 (iii)
<PLEASE PASTE THE CERTIFICATE FROM THE INSTITUTE on letter head as follows >

CERTIFICATE

This is to certify that the Summer Internship Project (SIP) titled “ Impact of GST on retail
sector” is successfully done by Ms.Swapnali Jagtap, BATCH: 2018-2020, a student of
Bharati Vidyapeeth’s Institute of Management Studies and Research, submitted in partial
fulfillment of Master of Management Studies under the University of Mumbai from 2nd
May to 30thJune 2019 at Choudhary & associates , koperkhairane.

Date :___________

_____________________ _________________
Prof._____________ Dr. Anjali Kalse
Project Guide I /c Director
BVIMSR BVIMSR

4
 (iv)
EXECUTIVE SUMMARY
As GST is being implemented in India, it becomes necessary for the
organizations to understand the benefits and thrive hard to execute their
businesses with various price-tax equations which has undergone severe
changes both positively and negatively. Having this background in mind,
the following are list of sectors which have undergone gains and loss after
implementation of GST.
Data is collected from the financial statement of dmart to know the impact
of GST on the retail sector. It is found that the revenue of the retail sector
with a dmart as a sample for an analysis has gone down post GST the
decrement of growth percent in revenue including inflation, other constants
and variable. The data shows that in the year 2017 the growth of dmart was
34.01% which slides to 26.83% in succeeding year later it recover to
27.87% including inflation and other variable and constants.
So it is concluded that the Indian retail sector with dmart as a sample as
mention in the below report as a negative impact of GST at the beginning
but it’s currently recovering from the same.

5
 (v)
TABLE OF CONTENTS
<font size 14, underline, center alignment>
PARTICULARS <Times New Roman,14,> PAGE NO:
Acknowledgement (i)
Certificates (ii)
Executive Summary (iv)
Table of Contents (v)
Chapter 1: Introduction of the Project Page Number
1.1: Concept & Significance & Need of the Study 1
1.2: Objective of the Study 2
1.3: Scope of the study
1.4 : Introduction to the topic
(Meaning, Advantages Types, Process, if applicable etc)
1.5 : ….
1.6: Literature Review( If the project is research based)
(Past studies undertaken and published,Gap,Background of the study & project
definition.Theory ,Method of solution)
1.7: Regulatory or Legal aspects related to the topic ( as applicable)
6
Chapter 2: Introduction to ____Industry
2.1: Overview of _______Industry
2.2: (Major players in the industry, Competitor Analysis, Market Share, Current scenario)
2.3: (FutureTrends.. )
Chapter3: Introduction to the Company
3.1:(Organization profile- vision, mission, organizational structure,
products/services, departments etc.)

3.2:(Description of the HR/Marketing /Finance /Operation processes:Should include

block diagrams, models for showing the processes, major operations,compositions,
process conditions & regulatory aspects etc.Mention assumptions, if any & management
technologies used for regulation purpose.)

3.3: (Products,Plants,Capacity,Turnover,Market share etc,SWOT Analysis)

Chapter 4: Research Methodology

4.1: Research Design
4.2: Sources of Data
4.3: Data Collection ToolsandTechniques
4.4: Sample Design

Chapter 5: Data Analysis and Interpretation

(Tables, graphs, statistical techniques etc.)

Chapter 6 : Conclusion &Suggestions

6.1: Findings
6.2 : Suggestions
6.3 : Limitations
6.4 : Conclusion

Chapter 7 : Learning Experience from the project

Annexure
(Questionnaire, specimen copies of forms, other exhibits etc.)

Bibliography

7
(books, journal articles, internet etc. referred for the project work).

Contents

................................................................................................................................ 1
PROJECT REPORT ....................................................................................................................... 1
ON ................................................................................................................................................... 1
“ IMPACT OF GST ON RETAIL SECTOR ” ................................................................. 1
A Summer Internship Project(SIP) done in ............................................................................. 1
ACKNOWLEDGEMENT .............................................................................................................. 2
EXECUTIVE SUMMARY ............................................................................................................ 5
Introduction of the project ............................................................................................................ 11
1.2 OBJECTIVE ....................................................................................................................... 10
INTRODUCTION TO THE TOPIC ..........................................Error! Bookmark not defined.
LITERATURE REVIEW ......................................................................................................... 24
REGULATORY OR LEGAL ASPECTS RELATED TO THE TOPIC .................................. 25
CHAPTER 4 RESEARCH METHDOLOGY ............................................................................. 29
4.1: Research design ................................................................................................................. 30
4.2: Sources of data ................................................................................................................... 30
4.3: Data Collection Tools and Techniques .............................................................................. 30
4.4: Sample design .................................................................................................................... 30
SUGGESTIONS ....................................................................................................................... 34
CONCLUSION ............................................................................................................................. 42

8
9
 1.2 OBJECTIVE

1) To understand the implementation of GST business practices

2) To understand the challenges faced by the retailers on GST
3) To evaluate the impact of GST on Retail Shops.
4) To evaluate case study of dmart by comparing financial statement
5) To analyse various benefits of implementation of GST in India

10
 INTRODUCTION OF THE PROJECT

Concept Of Goods and Service Tax (GST)

The reference of GST was first made in the Indian Budget in 2006-07 by the
Finance Minister Mr. P. Chidambaram as a single centralized Indirect tax. The
GST constitution ( 122nd ) Amendment Bill 2014 was introduced on December
19, 2014 and passed on May 06, 2015 in the loksabha and yet to be passed in the
Rajya Sabha.
The bill seeks to amend the constitution to introduce Goods and Services tax vide
proposed new article 246 A. This article gives power to Legislature of every state
and parliament to make laws with respect to goods and services tax where the
supplies of goods or of service take place . Recently, Union Minister Mr. Arun
Jaitley said that GST could be implemented as early as January 1, 2016.
Note: The word bill may be interpreted as the constitution (122nd ) Amendment
Bill 2014.

TYPES OF CATEGORIES UNDER GST RATE

The GST tax is levied based on Revenue Neutral Rate . For the purpose
of imposing GST tax in India, the goods and services are categorized in
to four.
These are four categories of goods and services are follows :
Exempted Categories under GST in India :
The GST and council and other GST authorities notifies list of exempted
goods. Such goods are not fallen under payment of GST tax. The
authorities may modify or amend the list time to time by adding deleting
any item if required by notification to public.
Essential Goods and Services for GST in India :
Essential Category of goods and services are charged very lower GST
rate. Essential goods and services are the goods and services for
necessary items under basic importance.
Standard Goods and services for GST in India :
A major share of GST tax payers falls under this category of Standard
Goods and Service. A Standard rate is charged against the goods and
services under this category.
Special Goods and Services for GST tax Levy :

11
Under special category of goods and services, GST rates would be high.
Precious metals including luxury items of goods and services fall under
special goods and services for GST rate implementations.
GST rates in India at a glance :
Exempted categories : 0
Commonly used Goods and Services : 5%
Standard Goods and Services fall under 1st Slab : 12%
Standard Goods and Services fall under 2nd Slab : 18%
Special category of Goods and Services including Luxury Goods : 28%

12
 TYPES OF GST

Intra-State Movement: -
An intra-State supply if the goods remain within the same State.
A supply of Services shall be -
(a) An inter-State supply if the service provider and the service recipient
arelocated in different States.
(b) An intra-State supply if the service provider and the service recipient
arelocated in the same State.

Inter- State Movement: -

An inter-State supply if the supply involves the movement of goods
from
one State to another.

UTGST
Explanation: Where the movement of goods commences and terminates
in thesame State it shall not be deemed to be a movement of goods from

13
one Stateto another by reason merely of the fact that in the course of
such movement thegoods pass through the territory of any other State.
CGST: -
CGST means Central Goods and Service Tax. CGST is a part of goods
andservice tax. It is covered under Central Goods and Service Tax Act
2016. Taxescollected under Central Goods and Service tax will be the
revenue for centralGovernment. Present Central taxes like Central excise
duty, Additional Exciseduty, Special Excise Duty, Central Sales Tax,
Service Tax etc. will be
subsumed under Central Goods and Service Tax.

SGST: -
SGST means State Goods and Service Tax. It is covered under State
Goodsand service Tax Act 2016. A collection of SGST will be the
revenue for StateGovernment. After the introduction of SGST all the
state taxes like Value AddedTax, Entertainment Tax, Luxury Tax, Entry
Tax etc. will be merged underSGST. For example, if goods are sold or
services are provided within the Statethen SGST will be levied on such
transaction.

IGST: -
IGST means Integrated Goods and Service Tax. IGST falls under
IntegratedGoods and Service Tax Act 2016. Revenue collected from
IGST will be dividedbetween Central Government and State
Government as per the rates specifiedby the government. IGST will be
charged on transfer of goods and servicesfrom one state to another state.
Import of Goods and Services will also bedeemed to be covered under
Inter-state transactions so IGST will be levied onsuch transactions. For
example, if Goods or services are transferred from
Rajasthan to Maharashtra then the transaction will attract IGST.

UTGST: -
The full form of UTGST is Union Territory Goods and Service Tax.
UTGST is apart of Goods and Service Tax in India. GST under supply
of goods and
14
services takes place in Union Territories like Andaman and Nicobar
Islands,Chandigarh, Dadra and Nagar Haveli, Daman and Diu, Delhi
(National
Capital Territory of Delhi), Lakshadweep, Puducherry etc. is accounted
under UTGST. A separate Act is being implemented for Union Territory
statesto impose and administer GST in India in the name of UTGST Act.
UnderUTGST Act, the details of GST rates payable against the
movement of goodsand services in Union territories are explained.The
UTGST bill is presented in respective states government to implement
asUTGST Act.The above information is about the meaning of UTGST
under GST in India, themechanism of UTGST under GST system in
India and union territory statesfalls under UTGST.

15
 PROCESS

GST PORTAL

The government’s portal (ref fig.2) for GST compliance is finally live
and open
for business registrations. The GST portal is hosted at
https://www.gst.gov.in/
and so far, only registrations are enabled on it. Existing taxpayers or new
businesses can apply to register and submit the required documents. All
the
existing registered taxpayers will be granted provisional registration
initially and
would be required to submit additional documents within 6 months.
16
Figure (2)

GSTIN

For any dealer registered under state VAT law, a unique TIN number is
issued
by the respective state tax authorities. Similarly, a service provider is
assigned
a service tax registration number by the Central Board of Excise and
Custom
(CBEC). Going forward, in the new GST regime, all these taxpayers will
get
consolidated into one single platform for compliance and administration
purposes and will be assigned registration under a single authority. The
government has set up GSTN–a special purpose vehicle to provide the
IT infrastructure necessary to support GST digitally. It is expected that 8
million taxpayers will be migrated from various platforms into GST. All
of these businesses will be assigned a unique Goods and Services Tax
Identification Number (GSTIN). But most are yet not aware of the new
registration process and the identification number.
Proposed GST Identification Number (GSTIN)
A complete break-up of the proposed GST Identification Number. Each
taxpayer will be allotted a state-wise PAN-based 15-digit Goods and
Services
Taxpayer Identification Number (GSTIN).
▪ The first two digits of this number will represent the state code as per
Indian Census 2011
▪ The next ten digits will be the PAN number of the taxpayer
▪ The thirteenth digit will be assigned based on the number of
registration within a state
▪ The fourteenth digit will be Z by default
▪ The last digit will be for check code
A format of proposed GSTIN has been shown in the image below.

GST Registration

17
Every business carrying out a taxable supply of goods or services under
GST regime and whose turnover exceeds the threshold limit of Rs. 20
lakh/ 10 Lakh as applicable will be required to register as a normal
taxable person. This process is of registration is referred as GST
registration.

Importance of GST Registration

GST registration is critical because it will enable you to avail various
benefits
that are available under the GST regime. One such benefit is to avail
seamless
input tax credit. Multiple taxes are being clubbed under GST and thus
the
cascading of taxes that is prevailing currently will no longer be the case.
Also,
timely registration will help you avoid any kind of interface with tax
authorities.

Casual Registration
A person who occasionally supplies goods and/or services in a territory
where GST is applicable but he does not have a fixed place of business.
Such a person will be treated as a casual taxable person as per GST.
Example: A person who has a place of business in Bangalore supplies
taxable consulting services in Pune where he has no place of business
would be treated as a casual taxable person in Pune.

Composition Dealer
This is an option available to small businesses and taxpayers having a
turnover less than Rs. 75 lakhs. They can opt for Composition scheme
where they will tax at a nominal rate of 1% or 2.50% (for
manufacturers) CGST and SGST each (rates will be notified later). They
will be required to maintain much less detailed records and file only 1
quarterly return instead of three monthly returns.
However, they cannot issue taxable invoices, i.e., collect tax from
customers,
18
but are required to pay the tax out of their own pocket. They cannot also
claim
any input tax credit. Composition levy is available to only small
businesses. It
is not available to interstate sellers, e-commerce traders, and operators.

Applicability

GST will apply when turnover of the business exceeds Rs 20 lakhs

(Limit is Rs
10 lakhs for the North-Eastern States). [Earlier the limit was Rs 10lakhs
and Rs
5lakhs for NE states.]

Migration to GST

All existing Central Excise and Service Tax assessees and VAT dealers
will be migrated to GST. To migrate to GST, assesses would be
provided a Provisional ID and Password by CBEC/State Commercial
Tax Departments.
Provisional IDs would be issued to only those assessees who have a
valid PAN associated with their registration. An assessee may not be
provided a Provisional ID in the following cases:
1. The PAN associated with the registration is not valid
2. The PAN is registered with a State Tax authority and Provisional ID
has
been supplied by the said State Tax authority.
3. There are multiple CE/ST registrations on the same PAN in a State. In
this case, only 1 Provisional ID would be issued for the 1st registration
in the alphabetical order provided any of the above 2 conditions are not
met. The assessees need to use this Provisional ID and Password to login
to the GST Common Portal https://www.gst.gov.in where they would be
required to fill and submit the Form 20 along with necessary supporting
documents.
Penalties for Not Registering Under GST
19
An offender not paying tax or making short payments has to
pay a penalty of 10% of the tax amount due subject to a
minimum of Rs. 10,000. The penalty will be high at 100% of the
tax amount when the offender has evaded i.e., where there is a
deliberate fraud. However, for other genuine errors, the
penalty is 10% of the tax due.
Multiple Registrations Under GST
A person with multiple business verticals in a state may obtain a
separate registration for each business vertical. PAN is mandatory to
apply for GST registration (except for a non-resident person who can get
GST registration on the basis of other documents).
A registration which has been rejected under CGST Act/SGST Act shall
also stand rejected for the purpose of SGST/CGST act.
RETAIL IN INDIA
The retail industry is the fastest growing industry in India also in
the world. The retail industry growth rate was 23% in 2017 in
comparison to 2016.
A research says retail industry in India expected to see a growth of
1100 trillion US $ by 2020.
In the year 1990, the retail industry captured 23% of the total
market and after 2000 it captured 43%. And with this growth rate,
Indian retail industry is marching towards becoming the largest
retail sector in the world.
Retail Under GST
GST brings both some positive & negative impact on the retail
sector. GST is a unified tax implemented by Govt. of India to
make the taxation process simpler also to empower ease of doing
business and give rise to more creative entrepreneurs.
Before GST retailers have to pay VAT, CST, Excise duty and
other charges but after GST came into effect they have to only one
tax despite the fact that tax percentage increased to a higher rate.
To encourage retailers Govt approves 100% FDI.

20
IMPACT OF GST IN RETAIL SECTOR

Reduced taxes – In the current tax structure, most of the retail products are subject to 30 %
indirect taxes on average. This includes excise duty, VAT, CST, service tax on warehousing,
consulting and rent, Octroi and entry tax. The main impact of GST on retailers will be a
significant reduction of the tax burden on the retailers..

Increased working capital requirement:

Inter-state stock transfer of gpoods from one branch to another is presently lible to tax same
would be liable to gst. This would increase the working capital requirement of ther retailers.

Promotion schemes- retailers currently offer various marketing schemes such as “buy one
get free”, free sample, etc., to customer. At present, the products given free of cost are not liable
to sales tax. However, in the GST regime, supply of goods by one person to another without
consideration could also be liable for taxation. This would lead to increased cost promotion and
alos pose a challenge as regards the valuation to be adopted for calculating GST on such goods.

Critical issues in trade incentive and discounts:

Trade incentives and discounts that arte allowed after the supply of goods has been affected
become part of transaction value on which tax paid by the supplier of goods. The incentives such
as year end sale discount, festival sales, turnover discount etc. are normally given after supply
and cannot be linked to specific invoices will now become part of transaction value and tax has
to be paid.

21
 BENEFITS OF GST IN RETAIL SECTOR

Below five factors will significantly change the dynamics of the retail sector in India:

1. Higher threshold limit- during the VAT threshold limit was between 5-15 lakh and in
GST its 20 lakh.
2. Easy return filing- in this new tax, structure retailers are paying low taxes in comparison
with VAT. Tax reduction is the main positive impact or says good news GST gifted to
retailers.
3. Low tax rate- return filing is a process to claim the taxes paid by business to the govt at
the time of purchase. Return filing process became more transparent & easy also GST
provides a quick refund.
4. Hasslefree goods transport - GST council made E-Way bill compulsory for interstate &
intrastate goods transport. Govt. implemented e-way bill operation to make transportation
seamless & easy by abolishing check post verification. E-way bill empowers retailers to
do more business and manage inventory easily.
5. Revise Business strategy- Unlike VAT in GST promotional goods & services are tax
liable. Retailers has to figure out new strategies to achieve their business goal by
complying with GST rules.
6. Faster growth -GST introduces composition scheme to give the rating to a business as
per its accordance with GST rules & regulations. Good rating will attract more business.
And E-Way bill also creates room for more business.
7. Tax on gifts and promotional items – As per the model GST law, any supply without
any consideration will attract tax. It is a common practice in Indian retail sector to offer
free products for promotion or one plus one free offers. In the current taxation system;
these free products, samples and gifts were tax-free. Once GST is implemented, such
gifts will also be considered for tax and the retailers would have to rethink their
promotional strategy.
8. Better Opportunities & Growth of Retail Market – Upon implementation of GST,
analysts predict unification of markets. Thus, biggest of the impacts of GST will be in the
widening of potential markets for the retailers. Retailers would be ready to explore
markets across diminished boundaries leading to better growth of the retail market.The
impact of GST on retail sector will be very positive from both taxation and operations
point of view. Retail industries will have to re-assess their current supply chain strategy
and re-model their network. Supply chain network design will be a critical activity for the
retail industries as it offers the opportunity of cost saving in tune of 1 % – 1.15 % of
sales.

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 NEED OF THE STUDY

This study will help us to examine the impact of GST after its implementation, it will show the
gap between present indirect taxes and GST, & also the study will show benefits and challenges
which GST may face after implementation.

23
 LITERATURE REVIEW

According to Tan and Chin-Fat :Malaysian understanding regarding GST was still
low. Based on study conducted by Djawadi and Fahr (2013) pointed out that knowledge
about Tax is important to increase the thrust of authorities and also the citizens.

(Saira et al, 2010) :Based on the history of the implementation by the other countries
aroundthe world, most of the countries received a positive impact in terms of their
revenue, despitethe success of GST implementation the Malaysian citizens still feel
uncertain with the GST,(Saira et al, 2010). The findings from the study showed that the
majority of Malaysians notconvinced with the GST system

Dr. R. Vasanthagopal (2011) :Conducted a study on , “ GST in India : A big leap in

theIndirect Taxation System” and concluded that switching to seamless GST from
currentcomplicated indirect tax system in India will be positive step in becoming Indian
economy .Success of GST will lead to its acceptance by more than 130 countries in world
and a newpreferred form of Indirect Tax System in Asia also

NishithaGuptha (2014): In her study stated that implementation of GST in the Indian
framework will lead to commercial benefits which were untouched by the VAT system
and would essentially lead to economic development.

Djawadi and Fahr( 2013) : This study is pointed out that knowledge about tax is
important to increase the thrust of authorities and citizens.The researcher used structure
equation modelling to examine the relationships between tax awareness and tax
knowledge and researcher found that tax knowledge has positive relationship with tax
awareness . Hence, taxpayers will be more aware about tax system when they have
knowledge and understanding towards the tax system.

Times of India (26 July, 2017) : page no 1&17 it is stated that Sweet makers are
confused with fixing the tax for their products as the ingredients used in the sweets are
taxed separately as raw material and as finished goods the products its taxing is different
ex. Plain burfi is 5% taxed but chocolate burfi is fixed with 28%. Plain burfi mixed with
other dry fruits is of 12%. This taxing system makes the Sweet makers to get confused on
how much GST to be fixed for which product.

Times of India dated ( 27 July , 2017) : stated that the GST implication across different
places for the same product has wider differences which the consumers are unaware,
resulting them in surprise. Ex A Rasamalai sold in counter at a shop is taxed with 5% but
if it is served in the hotel it is taxed with 18% this has resulted in difference of consumers
shopping to purchase the similar products.

24
Vineet Chauhan (2017) :Conduct a study on “ Measuring Awareness about
implementation of GST.” A study survey of small business unit of Rajasthan State in
India. The study seeks to evaluate the awareness of the business owners about GST
difficulties they face to encase of the current awareness about it. 148 small business
owners were analyses in order to identify the awareness about GST from Rajasthan state
and the kind and extent of relief provided and the implementation of the provision under
GST Law.

25
 REGULATORY OR LEGAL ASPECTS RELATED TO THE TOPIC

1. E-commerce as per GST

As per Section 43B(d) of the Model GST Law, e-commerce retail platform is an
electronic network via which receipt of a supply of goods and services and fund and/or
data transmission takes place. The consumers find the products or services using the
internet to make a buying decision without physically visiting the brick and mortar store.

A person, who is supplying services or goods with his account, is not considere d as an e-
commerce operator. On the contrary, a person, who is providing knowledge and
infrastructure for the supply of goods and service for other businesses, is an operator.
For an instance, Flipkart is an operator when it is allowing the use of its plat form for the
other businessmen to cater products. In the same way, Flipkart is not an operator when it
is selling its own products.

2. Tax Collection at Source (TCS)

As per the GST rules, Section 43C(1) depicts that the operator of e-commerce can
collect or deduct a particular amount from the payable amount to the supplier in
accordance to the supplies done through the e-commerce platform. This is called TCS.

3. Registration and threshold exemption

As per Section 19R/W, Schedule-III of Model GST Law, irrespective of the evaluation
of the supply chain, an e-commerce operator or a retailer needs to register the business.
All the retail business is liable to GST registration.

There will be no relaxation regarding threshold exemption. As mentioned earlier,

irrespective of the supply chain valuation, the supplier needs to register his business
based on the same section of the law.

4. Tax replaced by GST

The implementation of GST has witnessed the replacement of various tax regimes. The
list of such taxes is mentioned below.

 Central Excise Duty

 Value Added Tax
 Service Tax
 Countervailing and Special Countervailing Duty
 Entertainment

26
 Entry
 Luxury
 Purchase
 Lottery
 Advertisement
 Octroi

27
 Company name
Choudhary & associates

Established in 2007, Choudhary & Associates near Kopar Khairane, Mumbai, is an

acknowledged consultant for financial planning. This consultancy provides a full spectrum of
financial and accounting services, investment consultancy, project evaluation and services
related to all types of business and corporate agreements. Their speciality lies in providing
end-to-end support to start-ups as well as in shop act consultancy.

MISSION
Our mission is to attain utmost client’s satisfaction by delivering the highest
quality and value in Taxation and Accounting with genuine commitments and
with a team of well qualified staff.

Services offered at Choudhary & Associates

Choudhary & Associates near Kopar Khairane offers a wide range of services which
are tailored to our clients' needs. Their spectrum of services cover accountancy,
internal audit, management audit, direct taxes, indirect taxes, business setup and
BPO/KPO setup. Specialising in providing end-to-end support to start-ups, the
services cover company formation, LLP formation, shop act registration, IEC code,
MVAT/ CST registration and excise registration

ORGANISATIONAL STRUCTURE
The organizational flows in a hierarchical structure as follows

FOUNDER: B R Choudhary
 Functional managers:
Marketing
Finance
Operations
 Employees

28
CHAPTER 4 RESEARCH METHDOLOGY

29
 4.1: Research design
This analysis is based on descriptive type research.

4.2: Sources of data

Secondary source of data is used in the preparation of this report.

4.3: Data Collection Tools and Techniques

Data collection tools used in this report are
Websites (NSE, BSE, MCX)
Newspapers
Journals and books
Android apps

4.4: Sample design

Cluster sampling technique is used in this report.

Chapter 5 DATA INTERPRETATION

Date 19-Mar 18-Mar 17-Mar 16-Mar 15-Mar

30
 12 mths 12 mths 12 mths 12 mths 12 mths

INCOME

Revenue From Operations [Gross] 21,827.98 16,446.54 12,717.71 9,150.53 6,870.15

Less: Excise/Sevice Tax/Other Levies 1,946.43 1,471.89 859.3 593.22 450.99

Revenue From Operations [Net] 19,881.55 14,974.65 11,858.42 8,557.30 6,419.16

Other Operating Revenues 34.7 34.24 22.7 17.87 14.36

Total Operating Revenues 19,916.25 15,008.89 11,881.12 8,575.18 6,433.52

Other Income 51.41 72.65 31.29 20.05 20.87
19967.6 15081.5 11912.4
Total Revenue 6 4 1 8595.23 6454.39
EXPENSES

Purchase Of Stock-In Trade 17,409.12 12,862.76 10,368.95 7,444.17 5,666.12

Operating And Direct Expenses 0 0 0 0 227.97

Changes In Inventories Of FG,WIP And Stock-In

Trade -429.18 -213.88 -272.96 -130.28 -165.94

Employee Benefit Expenses 335.03 276.56 189.47 146.22 131.23

Finance Costs 47.15 59.42 121.8 91.23 71.97

Depreciation AndAmortisation Expenses 198.8 154.65 126.02 97.1 80.6

Other Expenses 959.1 746.14 632 458.44 120.95
18520.0 13885.6 11165.2
Total Expenses 2 5 9 8106.87 6132.9
19-Mar 18-Mar 17-Mar 16-Mar 15-Mar

12 mths 12 mths 12 mths 12 mths 12 mths

Profit/Loss Before Exceptional, ExtraOrdinary

Items And Tax 1447.64 1195.89 747.11 488.35 321.49
Profit/Loss Before Tax 1447.64 1195.89 747.11 488.35 321.49

31
Tax Expenses-Continued Operations
Current Tax 501.21 417.17 251.24 160.82 105.57
Deferred Tax 17.77 -5.45 11.65 9.49 4.53
Tax For Earlier Years -7.69 -0.49 1.58 0.13 0
Total Tax Expenses 511.29 411.23 264.47 170.44 110.1
Profit/Loss After Tax And Before
ExtraOrdinary Items 936.35 784.66 482.64 317.91 211.39
Prior Period Items 0 0 0 0 -0.72
Profit/Loss From Continuing Operations 936.35 784.66 482.64 317.91 210.67
Profit/Loss For The Period 936.35 784.66 482.64 317.91 210.67

19-Mar 18-Mar 17-Mar 16-Mar 15-Mar

12 mths 12 mths 12 mths 12 mths 12 mths

OTHER ADDITIONAL INFORMATION

EARNINGS PER SHARE

Basic EPS (Rs.) 15 12.57 8.56 5.66 3.85
Diluted EPS (Rs.) 14.79 12.41 8.55 5.66 3.85

Ggrowth % 32.72% 29.32% 38.98% 33.19%

1702.58 797.657 454.781 403.964
inflation growth 2 2 316.671 3 8
inflation rate 7.80% 4.85% 2.49% 4.97% 5.88%

growth in revenue deducting inflation 27.87% 26.83% 34.01% 27.31%

After the implementation of GST the sales revenue of dmart falls rapidly from
34.01% to 26.83% including inflation because of the change in the tax model of
VAT to GST Where as the growth of revenue after deducting inflation increase
from 26.83% to 27.87%.An another reason for decrease in revenue is the
psychology of the customers. Also governments bend towards digital india which
32
in return give a slight relief towards e-retail sector in GST. This is the main reason
the public shift towards
more convenient electronic market with low GST in this market & with subsidies
provided by government and relief in tax to them.
Post GST the growth was increased but not as high as before GST. It in a recovery
stage post GST. Which is an increase of 1% i.e. 27.87% from 26.83%, from year
18 to year 19.

33
Date 19-Mar 18-Mar 17-Mar 16-Mar 15-Mar

12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS

Equity Share Capital 624.08 624.08 624.08 561.54 561.54

Total Share Capital 624.08 624.08 624.08 561.54 561.54

Reserves and Surplus 4970.4 4018.63 3212.98 950.32 631.37

Total Reserves and Surplus 4970.4 4018.63 3212.98 950.32 631.37

Total Shareholders Funds 5594.48 4642.71 3837.06 1511.86 1192.91
NON-CURRENT LIABILITIES
Long Term Borrowings 125.67 246 980.92 908.47 713.78

Deferred Tax Liabilities [Net] 64.07 46.3 51.75 40.09 30.65

Other Long Term Liabilities 0.78 0.78 1.38 18.06 17.97

Total Non-Current Liabilities 190.52 293.07 1034.05 966.62 762.39

CURRENT LIABILITIES
Short Term Borrowings 299.15 7.25 122.66 113.49 26.94

Trade Payables 458.28 315.88 266.76 200.47 133.54

Other Current Liabilities 442.47 341.7 533.46 283.71 214.46
Short Term Provisions 12.67 11.85 8.16 5.38 17.56
Total Current Liabilities 1212.57 676.68 931.04 603.05 392.5
Total Capital And Liabilities 6997.57 5612.47 5802.15 3081.53 2347.8
ASSETS

NON-CURRENT ASSETS
Tangible Assets 4205.86 3233.65 2515.18 2061.27 1505.67
Intangible Assets 10.27 6.2 6.35 4.18 3.99

Capital Work-In-Progress 376.55 147.05 152.89 81.69 91.59

Other Assets 18.1 16.33 27.37 13.65 0
Fixed Assets 4610.78 3403.23 2701.8 2160.78 1601.26
Non-Current Investments 212 129.5 36.62 16 16.66

34
Long Term Loans And Advances 0 0 0 0 87.35
Other Non-Current Assets 145.74 133.33 95.63 114.82 0.21
Total Non-Current Assets 4968.52 3666.07 2834.04 2291.6 1705.48
CURRENT ASSETS
Current Investments 0 51.7 0 0 0
Inventories 1576.22 1147.04 933.16 660.2 529.92
Trade Receivables 75.52 33.36 21 8.38 7.07
Cash And Cash Equivalents 213.55 556.46 1881.31 32.59 35.86
Short Term Loans And Advances 0 0 0 0.93 66.92

OtherCurrentAssets 163.76 157.84 132.64 87.84 2.56

Total Current Assets 2029.05 1946.4 2968.11 789.94 642.33

Total Assets 6997.57 5612.47 5802.15 3081.53 2347.8
OTHER ADDITIONAL INFORMATION

CONTINGENT LIABILITIES, COMMITMENTS

Contingent Liabilities 1583.58 1115.79 719.83 492.89 386.04

CIF VALUE OF IMPORTS

Trade/Other Goods 0 0 0 0 136.07

Capital Goods 0 0 0 0 0.97

EXPENDITURE IN FOREIGN EXCHANGE

Expenditure In Foreign Currency 650.29 401.06 279.93 192.14 1.31

REMITTANCES IN FOREIGN CURRENCIES FOR DIVIDENDS

Dividend Remittance In Foreign Currency - - - - -

EARNINGS IN FOREIGN EXCHANGE

FOB Value Of Goods - - - - -
Other Earnings 5.98 - - - -
BONUS DETAILS
Bonus Equity Share Capital - - - - -

NON-CURRENT INVESTMENTS
Non-Current Investments Quoted Market Value - - - - -
Non-Current Investments Unquoted Book Value - 129.5 36.62 16 16.66

CURRENT INVESTMENTS

35
Current Investments Quoted Market Value - - - - -
Current Investments Unquoted Book Value - 51.7 - - -

Revenue From Operations [Gross]

25,000.00

20,000.00

15,000.00

10,000.00 Revenue From

Operations [Gross]
5,000.00

0.00

Total Tax Expenses

600
500
400
300
Total Tax Expenses
200
100
0
15-Mar 16-Mar 17-Mar 18-Mar 19-Mar

As seen from the above chart the expense curve of the total tax is exponential and constant till
the introduction of GST, post GST the curve tends to straighten and it’s turn to straight line with
slope one so there is an increase in the tax curve and it is constant post GST as the curve is
constant the situation tends to be normalised.

36
 Fixed Assets
5000

4000

3000
Fixed Assets
2000

1000

0
15-Mar 16-Mar 17-Mar 18-Mar 19-Mar

The increase in exponential curve bends upward of the fixed assets this conclude that firm tends
to more conservative in terms of fixed asset.

Total Current Assets

3500
3000
2500
2000
1500 Total Current Assets
1000
500
0
15-Mar 16-Mar 17-Mar 18-Mar 19-Mar

The total current assets is a straight line with certain slope till the introduction of GST. Post GST
the line bends downward with a negative slope, after the impact of GST was neutralized the
slope was back to normal as in 2015.

37
 Profit Before Exceptional,
ExtraOrdinary Items And Tax
1600
1400
1200
1000 Profit/Loss Before
800 Exceptional,
600 ExtraOrdinary Items
And Tax
400
200
0
15-Mar 16-Mar 17-Mar 18-Mar 19-Mar

Profit of dmart before tax has increased even after the introduction of GST.

Date 19-Mar 18-Mar 17-Mar 16-Mar 15-Mar

21,827.98 16,446.54 12,717.71 9,150.53 6,870.15
Revenue 71.63% 29.32% 100.00% 33.19% 100.00%

511.29 411.23 264.47 170.44 110.1

Total Tax Expenses 93.33% 55.49% 100.00% 54.80% 100.00%

4610.78 3403.23 2701.8 2160.78 1601.26

Fixed Assets 70.66% 25.96% 100.00% 34.94% 100.00%

2029.05 1946.4 2968.11 789.94 642.33

Total Current
Assets -31.64% -34.42% 100.00% 22.98% 100.00%

Profit/Loss Before
Exceptional,
ExtraOrdinary 1447.64 1195.89 747.11 488.35 321.49
Items And Tax 93.77% 60.07% 100.00% 51.90% 100.00%

38
 Findings

 It’s observed that after GST the sales revenue of retail sector slide down.
 It is found that The growth post GST are not upto the mark.
 It’s observed that GST is replaced by VAT, but still the psychology effects
the sales.
 It’s found that the current assets of dmart goes gown but stabilize in the
upcoming year.
 It’s observed post GST tax expense of the company increased drastically.

39
 LIMITATIONS

 time restriction was only 60 days of project work in the organisation

 the study is limited only for one retail sector unit that is Dmart
 Data accuracy is compromised as the sample size is very small.
 The finding & suggestions cannot be generalised.
 The information, which was needed, could not be made public by the
consultancy.
 The data fluctuation is highly volatile.

40
 SUGGESTIONS

 The retailers suggested that there should be a smooth, transparent and simple transition
provisions which is easily understandable.
 Since the public are very clear about GST, any disputes on GST introduction should be
protectively addressed by way of speedy redress.
 The psychology of consumer must be transfer with the help of various marketing and
advertising strategies.
 Create awareness about GST among employees who have direct contact with the
customer.

41
 CONCLUSION

It can be concluded from the study that there is a transition of current

taxation system into unified taxation system across the nation. Its effect has
been felt by every Indian as it is reflected in the retail business throughout
different states of India. The paper briefs about the benefits of GST and the
various aspects involved in implementing the GST in supply chain i.e.,
Manufacturer to consumer. It is a testing time for the Indian business
systems as there are huge positive and negative impacts on particular
businesses and consumers as well. Due to the effect of GST there is
likely possibility that Indian economy will boost by approximately 2-percent
as there is easy movements of products from state to state without hassle
unlike previous taxation system i.e., Non-GST .
So in brief it is concluded that the Indian retail sector with dmart as a
sample as mention in the below report as a negative impact of GST at the
beginning but it’s currently recovering from the same.

42
43
 BIBLIOGRAPHY
<Times New Roman,14, underline, center alignment>

Books:
1
<Times New Roman,14>

1. Me Cabe and Smith; Unit Operation in Chemical Engineering; 4th Edition, pp-812-814.
<Times New Roman,12>

Journals:
<Times New Roman,14>

1. Ariponnammal,S and Natarajan,S. (1994) ‘Transport Phenomena of SM SEL-X’ Pramana-

Journal of Physics, Vol.42, No.1, pp 421-425.
<Times New Roman,12>

2. Barnard,R.W. and Kellogg,C. (1980) ‘Application of Convolution Operators’,Michigan Mach-

Vol.27,pp 81-82
Money control
Businesss article
Magziens
Research paper on gst
Book

2
NOTE :
Above mentioned format of report is a generalised format. It is subject to few changes as
per the demand of project topic and as per the Project guide’s suggestion and discretion.

The report shall be printed and bound (preferably black book with golden embossing) with
not less than 60 A4 size pages. The student shall prepare at least TWO copies of the
report: one copy for submission to the Institute and one copy for the student.
More copies may be prepared ifthe company/organization or the guide or both ask for one
copy each.

The project shall be done individually

02122008
Service provide to client
Gain profit from business