A Study on impact of GST on Retailers in Chennai city

A second review report

(Submitted by B, Vijayalakshmi, Roll No: 1619MBA0091, Reg. No: 68616100087)

1 NEED FOR THE STUDY

Retail sector is one of the key pillars for Indian economy and it accounts for around 10 per
cent of GDP and around 8 per cent of the employment. India is the world’s fifth-largest
global destination in the retail space. While GST implementation was happened just few
months ago, it will be helpful to study the impact of GST on Indian Retailers and Retail
Industry. GST will usher in wide changes in various industries and sectors and Retail
industry is not an exception. In the previous tax scenario, retailers are entitled to about 30%
indirect taxes such as VAT, CST, excise duty, service tax on warehousing, Octroi and
many more. From the various articles and discussion about GST, GST experts says, that the
impact of GST on retail sector is positive from both taxation and operations point of view
GST will depose total indirect taxes, upsurge supply chain efficiency and facilitate
seamless input tax credit. The end price for consumers will also reduce because of GST. 

Having known that Indian retail market is divided into “Organised Retail Market” which is
valued at $60 billion which is only 9 per cent of the total sector and “Unorganised Retail
Market constitutes the rest 91 per cent of the sector. Organised retailing, in India, refers to
trading activities undertaken by licensed retailers, that is, those who are registered for sales
tax, income tax, etc. Unorganised retailing, on the other hand, refers to the traditional
formats of low-cost retailing, for example, the local corner shop, owner manned general
stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc. The
unorganised retail shops source their products from a chain of middlemen who mark up the
product as it moves from farmer or producer to the consumer. Finally, most transactions at
unorganised retail shops are done with cash, with all sales being final.

Hence it is must to understand the concept of Goods and Services Tax since our tax
structure has been transformed. And as described earlier Retail is one of the most important
sector to which every person or individual is dependent on. And It is one of the important
sector of our country. Therefore it is needed to study the impact of new tax structure called
GST in retail Industry. Being more precise, In this project let us learn about the impact of
GST on small retailers.
 2.1 PRIMARY OBJECTIVE

To study the impact of GST on small retailers in Chennai.

2.2 SECONDARY OBJECTIVES

• To find the variation in operating funds.

• To evaluate the financial position of the retailers during the pre-GST and post-
GST period.
• To examine the impact of GST on sales volume.
• To evaluate the retailer’s mark-up and margin.
• To suggest various changes in price to satisfy the customer.

3 METHODOLOGY

Data requirement is fulfilled by collecting data using questionnaire. The questions are
framed in way to obtain the responses in order to achieve the objectives i.e. to study the
impact of GST on retailers. The sampling framework is restricted to small retailers.
Tools to be used:
 Hypothesis Testing
 Preparing thesis

4 DATA COLLECTED.

A comprehensive account of the primary data collected using the questionnaire

is coded and captured in Excel sheet. Collected data has been grouped and captured in
excel sheet.

5. DATA ANALYSIS
 6 WORK TO BE DONE

 Determine the Hypothesis.

 To prepare the report.

REFERENCES

[1] 1 Monika Sehrawat, and Upasana Dhanda, “GST IN INDIA: A KEY TAX REFORM”
International Journal of Research – Granthaalayah, Vol. 3, No. 12(2015): 133-141.
[2] Nitin Kumar, 2017, GOODS AND SERVICES TAX IN INDIA: A WAY FORWARD, Volume 3,
No 6 (2014)
[3] Ankit Jain, Siddhartha Havelia, May 2017, GOODS & SERVICE TAX - Impact
analysis on various sectors.
[4] Pramod Banthia, partner and Feneel Shah, associate director (indirect tax), PwC
India, GST impact on retail sector-Buy one, get one free schemes set to get taxed
[5] Girish Garg, IJSRM volume 2 issue 2 feb 2014 [www.ijsrm.in], Basic Concepts and
Features of Good and Service Tax In India.
[6] Dani S (2016) A Research Paper on an Impact of Goods and Service Tax (GST) on
Indian Economy. Bus Eco J 7: 264. doi: 10.4172/2151-6219.1000264
[7] Panda, Aurobinda and Patel, Atul, The Impact of GST (Goods and Services Tax) on
the Indian Tax Scene (July 10, 2010). Available at
SSRN: https://ssrn.com/abstract=1868621 or http://dx.doi.org/10.2139/ssrn.1868621
[8] Raj, Ravishu, Goods and Services Tax in India (April 4, 2017). Available at
SSRN: https://ssrn.com/abstract=2946241 or http://dx.doi.org/10.2139/ssrn.2946241
[9] Dr.Balwinder Bedi, Mr. Kavish Sharma, May 2017, MOVING TO GOODS AND SERVICE
TAX IN INDIA: IMPACT ON INDIA’S GROWTH, Volume- 4, Issue-3, www.ijermt.org
[10] SANJOY ROY, January - June 2016, Transition to Goods and Services Tax (GST)
Regime: Rationale and Impasse, The NEHU Journal, Vol XIV, No. 1, January - June 2016,
pp. 51-67

(SIGNATURE OF STUDENT) (SIGNATURE OF GUIDE)