GOSSNER COLLEGE, RANCHI

A Project Report on
“ A Study on Recent Trend in banking and
Insurance Industries”
In partial fulfillment of bachelor of Commerce Program
Under Ranchi University, Ranchi
Under the supervision and guidance of
Dr. NASIR AHMED
Department of Commerce
Gossner College Ranchi

Submitted by:
Name: - PRAVEEN KINDO
Class-B.com Semester: VI
Session 2019-2022 Class Roll No-105
Exam Roll No-19BC8170564
 CERTIFICATE
This is to certify that the project report entitled ““A STUDY ON THE IMPACT OF GOODS AND

SERVICE TAX ON INDIAN INDUSTRIES”” has been submitted Praveen Kindo a student of

B.Com Semester VI. Session 2019-2022 bearing Exam Roll-19BC8170564of Gossner

College, Ranchi.

This Project has been Submitted in partial fulfillment of the requirement for the award of

degree of B.COM, under Ranchi University Ranchi.

This Work has been done by him in appreciable and I Wish him all success in this life.

Guided By:- External Examiner

DR. Nasir Ahmed
Gossner College, Ranchi
 DECELARATION

Praveen Kindo do here by declare that at the project entitled

““A STUDY ON THE IMPACT OF GOODS AND SERVICE TAX ON INDIAN INDUSTRIES””

Is Submitted to Gossner College, Ranchi in partial fulfillment of the requirement for the award of the degree of

Bachelor of Commerce under Ranchi Unievrsity, Ranchi. Is an authentic work done by me.

This content of the project does not form a basis for the award of any previous degree or diploma in full or part

to the best of my knowledge.

Signature of Candidate

Name- Praveen Kindo

Class- B.com Semester –VI

Class Roll- 105

Exam Roll No -19BC8170564

Session -2019-2022
 ACKNOWLDGEMENT
The successful completion of this project is solely due to the guidance and encouragement received
from the people around us. I specially thanks my project guide Dr. Nasir Ahmed for extending her
support and rendering constant help whenever needed, her helpful criticism and support inspired us to
present the project in present form.
“A STUDY ON THE IMPACT OF GOODS AND SERVICE TAX ON INDIAN INDUSTRIES”

We also exctended our gratitude to our institute GOSSNER COLLEGE, RANCHI for this
encouragement and crowned our efforts with success. This report would have been impossible but for
the support and guidance that we received from various people at different stages of project.

We expess our deep gratitude to all.

THANK YOU

Praveen Kindo
 INDEX

SR. NO TOPIC PAGE NO

1 7
INTRODUCTION OF GST
Why GST ? 8
.1
Definition of GST
.2 9
Objectives of GST 11
.3

Structure of GST 12
.4

Historical background of GST 14

.6

GST rate in OECD countries 17

.7

2 Problem identification 18

3 Research methodology 19

4 Scope of study 20

20
.1 Feature of GST

20
.2 Significance of GST

GST rates in India 24

.5

5 Literature review 26
6 Recent update on GST 42
 7 Impact of GST on various sectors 45

8 Analysis and presentation of data 67

9 Example of GST 73

10 Advantages of GST 76

75
Limitations of GST

11 Conclusion and suggestions 82

12 Appendix 83

13 Bibliography 84
 1. INTRODUCTION OF GST

The introduction of Goods and Services Tax (GST) would be a very significant step in the field
of indirect tax reforms in India. By amalgamating a large number of Central and State taxes into a
single tax, it would mitigate cascading or double taxation in a major way and pave the way for a
common national market. From the consumer point of view, the biggest advantage would be in
terms of a reduction in the overall tax burden on goods, which is currently estimated to be around.

25% to 30%.

Introduction of the Value Added Tax (VAT) at the Central and the State level has been considered to
be a major step – an important step forward – in the globe of indirect tax reforms in India. If the VAT is a
major improvement over the pre-existing Central excise duty at the national level and the sales tax system
at the State level, then the Goods and Services Tax (GST) will indeed be an additional important
perfection – the next logical step – towards a widespread indirect tax reforms in the country. Initially, it
was conceptualized that there would be a national level goods and services tax, however, with the release
of First

Discussion Paper by the Empowered Committee of the State Finance Ministers on 10.11.2009, it has
been made clear that there would be a ―Dual GST‖ in India, taxation power – both by the Centre and the
State to levy the taxes on the Goods and Services. Almost 150 countries have introduced GST in some
form. While countries such as Singapore and New Zealand tax virtually everything at a single rate,
Indonesia has five positive rates, a zero rate and over 30 categories of exemptions. In China, GST applies
only to goods and the provision of repairs, replacement and processing services.

Under the GST scheme, no distinction is made between goods and services for levying of tax. GST is a
multi-tier tax where ultimate burden of tax fall on the consumer of goods/ services. It is called as value
added tax because at every stage, tax is being paid on the value addition.
 Under the GST scheme, a person who was liable to pay tax on his output, whether for provision of
service or sale of goods, is entitled to get input tax credit (ITC) on the tax paid on its inputs.

Introduction of GST would also make Indian products competitive in the domestic and international
markets. Studies show that this would have a boosting impact on economic growth. Last but not the least,
this tax, because of its transparent and self-policing character, would be easier to administer.

WHYGST?

The current indirect tax system with multiplicity of taxes (Central Levy:-excise duty, Service Tax,
Various Cess and State Levies:- VAT, Entry Tax, Octroi, Luxury Tax, Entertainment taxes, Purchase Tax
etc.) - at different rates - at multiple points ( at the time of manufacture, trade, rendering services etc.).
This has led to several inefficiencies and limitation. One of the major limitations is the cascading effect of
tax. Under the current regime, Excise charged by the manufacturer on billing to a Dealer, the credit of
input cannot be claimed by a dealer, and thus forming part of cost to dealer which leads to cascading of
tax.

Under GST the credit utilization will be available across the supply chain till it reaches the end
consumer. Secondly, tax on tax is eliminated. Example:- Under the current tax regime, VAT is charged on
the assessable value plus on Excise duty.

Fig.1
1. Simpler tax structure:

As multiple taxes on a goods or service are eliminated and a single tax comes into place, the tax structure
is expected to be much simpler and easier to understand and administer.
2. Eliminates cascading effect of taxes:
One of the key feature of GST is seamless availability of Input credit set-off mechanism.
This helps in eliminating the cascading effect and benefit is passed on to consumer.
3. Increased Revenue:
A simpler tax structure can bring about greater compliance, thus increasing the number
of tax payers and in turn tax revenues for the Government.

4. Technology Driven System:

GST compliance is going to be transaction based and with cross matching concept, where,
outward supply and inward supply will be matched to determine the net tax liability for a given dealer.
Millions of dealers and Billions of transaction need to be processed and
„Technology‟ will play a pivotal role in the successful implementation and administration of compliance

DEFINITION OFGST:

―GST is a tax on goods and services with value addition at each stage having comprehensive and
continuous chain of set of benefits from the producer‟s / service provider‟s point up to the retailers level
where only the final consumer should bear the tax.‖

OBJECTIVES OFGST:

One of the main objectives of GST would be to eliminate the cascading impact of taxes on production
and distribution cost of goods and services. The exclusion of cascading effects i.e. tax on tax will
significantly improve the competitiveness of original goods and services which leads to beneficial impact
to the GDP growth.

Some of the other objective of GST are given below :

 One Country – One Tax

Ensuring that the cascading effect of tax on tax will be eliminated.
Improving the competitiveness of the original goods and services, thereby improving the GDP
rate too.
Ensuring the availability of input credit across the value chain. Reducing the complications in tax
administration and compliance.
Making a unified law Involving all the tax bases, laws and administration procedures across the country.
Decreasing the unhealthy competition among the states due to taxes and revenues. Reducing the tax slab
rates to avoid further clarification issues.
Consumption based tax instead of Manufacturing Uniform GST Registration, payment and Input tax
Credit
To eliminate the cascading effect of Indirect taxes on single transaction Subsume all indirect taxes at
Centre and State Level under
Reduce tax evasion and corruption Increase productivity
Increase Compliance
Reducing Economics distortions

STRUCTURE OFGST:

GST is a dual concept tax system. Under this system, tax is administered, collected and shared by
both Centre and states based on the nature of transaction (Within State or interstate).The tax components
of GST are:

Fig.2
TAXES SUBSUMED UNDERGST:

Fig. 3
Historical background of GST

GST was first recommended by Kelkar Task Force on implementation of Fiscal Reforms and Budget
Management Act 2004 but the First Discussion Paper on Goods and Services Tax in India was presented
by the Empowered Committee of State Finance Ministers dtd.10th Nov.10th, 2009

In 2011, the Constitution (115th Amendment) Bill, 2011 was introduced in Parliament to enable the
levy of GST. However, the Bill lapsed with the dissolution of the 15th Lok Sabha.

Subsequently, in December 2014, the Constitution (122nd Amendment) Bill, 2014 was introduced in
Lok Sabha. The Bill was passed by Lok Sabha in May 2015 and referred to a Select Committee of Rajya
Sabha for examination.

GST is a path breaking indirect tax reform which will create a common national market by dismantling
inter- State trade barriers. GST has subsumed multiple indirect taxes like excise duty, service tax, VAT,
CST, luxury tax, entertainment tax, entry tax, etc.

France was the first country to implement GST in the year 1954. Within 62 years of its advent, about
160 countries across the world have adopted GST because this tax has the capacity to raise revenue in the
most transparent and neutral manner.

A) NEWZEALAND

The New Zealand GST, enacted in 1988, was designed as a comprehensive tax base including many
difficult-to-tax goods and services. The New Zealand GST become an international benchmark for
indirect tax design, for instance, the Institute of Fiscal Studies of United Kingdom, considered the New
Zealand GST model as the benchmark for evaluation of the European VAT Directives .

In New Zealand, GST governed by GST Act, 1985 is applicable on most indigenous goods and
services, most imported goods, and certain specified imported services at a rate of 15%. Goods includes
all types of personal and real property except actionable claims, money and products transmitted by a non-
resident to a resident by means of wire, cable, radio etc. and by other such technical systems. Services
covers everything other than goods or money.
B) AUSTRALIA

Implementation of New Tax System package in Australia including New Tax System (Goods and
Services Tax) Act, 1999 is considered as a landmark change to the Australian tax system. The new GST
replaced the federal wholesale sales tax and some state and territory taxes with a single tax rate of 10%
tax on supply of most goods and services with some exceptions.

The basic rule of GST in Australia is destination-based consumption tax with limited tax base
exclusions. Certain supplies such as certain food products, most medical and health services, drugs,
medical aids and appliances, most education courses, child care, exports, religious services, international
transport etc. are known as GST-free12 on which GST not payable (other counties refer to these as zero-
rated).

Certain supplies such as financial supplies, residential rent, residential premises, precious metals,
school tuck shops and canteens and fund raising events conducted by charities etc. are known as input-
taxed supplies13 (other countries refer to these as exempt) and no GST is applicable on such supplies.

C) EUROPEAN UNION(UN)

European Economic Community adopted VAT throughout Europe, replacing cascading multi- stage
turnover tax, owing to the ease with which it handled cross-border transactions and facilitated
development of a common market.

Council Directive 2006/112/EC adopted in 2007 („VAT Directives‟) codifies the provisions
implementing the common system of VAT and Council Regulation (EU) No 282/2011(VAT
Implementing Regulation) lays down binding implementing measures to ensure uniform application of the
VAT Directive. The VAT Directive sets the framework for the VAT structure in the EU, but it gives
national governments freedom to set the number and level of rates they choose and transport provisions of
VAT Directives into national legislation, subject to below basic rules:

Supply of all goods and services in the course of business by a taxable person within EU is subject to
VAT at a standard rate not lower than 15%3, unless specifically exempt. EU member states can opt to
apply one or two reduced rates not less than 5%4 for supplies of goods or services, such as foodstuff,
water supplies, pharmaceutical, books, admission to cultural/amusement/sporting services social services,
medical services and equipment‘s, agricultural input sets., listed in Annex III of the VAT Directive.
Member states may continue to charge any lower rates, including zero
rates, which were in place on 1 January 1991, though they cannot introduce any new rate under 5%.

Activities and supplies in public interest, such as medical care, services linked to welfare and social
security work by public entities or charitable organizations, certain education and cultural services;
specific financial and insurance services; certain supplies of land and buildings; export of goods, intra-EU
supplies etc.5 are exempt from VAT.

D) CANADA

In Canada, GST is applicable on supply of most goods and services including real property and
intangible personal property and is governed by Excise Tax Act. Canada has a federal government (like in
India) and a federal GST was introduced in 1991 replacing the existing federal sales tax imposed on
manufacturers and certain licensed wholesalers at a general rate of 13.5%. However, all provinces
continued with the provincial retail sales tax („PST‟) thereby having two levels of levy.

The harmonized sales tax (HST) is imposed in provinces that have harmonized their provincial sales
tax with the GST (New Brunswick, Nova Scotia, Newfoundland and Labrador, Ontario, Prince Edward
Island) and is a combination of a federal component and a provincial component (i.e., 5 % to 8 %)
applicable generally on same base of property and services as the GST. In the remaining provinces, GST
is imposed on taxable goods and services along with provincial sales tax or a retail sales tax. The three
territories‘ (Northwest Territories, Nunavut and Yukon and Province of Alberta charge GST at the rate of
5%.

Most goods and services supplied in or imported into Canada are taxable supplies and are subject to
GST at the rate of 5% or HST in the range of 13% to 15%.
1.7 GST RATES IN OECDCOUNTRIES:

EUROPEAN CANADA NEW AUSTRALI

ZEALAND A
UNION (UN)

Average standard rate Levy of Peak rate of tax is Peak rate

among other EU member GST/HST ranges 15% of tax
states is about 21% with from13%to 15% being10%
Hungary having the in case of
highest standard rate of provinces which
VAT @ 27% and Have
Luxembourg having The harmonized PST
lowest standard rate with federal GST.
of17%.Reduced rates are Other provinces
in the applies GST at
range of 2.1% to 18%. the rate of 5%
along with PS on
certain goods and
services

Table - 1
 2. PROBLEM IDENTIFICATION:

 To enquire the impact of GST after its implementation.

 To find out difference between present indirect taxes and GST.

 To identify benefits and challenges of GST afterimplementation

 To know the benefits of introduction of Goods and ServiceTax

 To identify the challenges/hurdles to be overcome by way of implementation of Goods and

Services Tax.
3. RESEARCHMETHODOLOGY:

This study is intended to identify the impact of GST on Indian economy.

The study is descriptive in nature, based on simple random method. The primary data was collected from
the respondents (Traders, General public and Experts) about the perception of the present GST system and
their expectations in the forth coming GST.

The Secondary data was collected through reputed Journals, Newspapers, Books, Websites. This study
brings out suggestions and inferences drawn from the analysis of both primary and secondary data.

Primary Data Collection

The necessary primary data having dealt under various chapters of data analysis which have been
collected through survey method (questionnaire) from General public Businessmen: Here refers to
„Traders‟. It includes wholesalers, retailers and these traders deal in consumer goods, essential
goods and other goods.

General Public: This includes public of different sections of society.

On 7th October 2016 Government of India (GOI) passed Process and Flowchart of GST. Now, The
first step for each sector is to register under Central Goods and Service Tax Act (CGST) and State Goods
and Service Tax Act (SGST). If a person is bound to be registered for GST he shall register himself under
SGST Act of his respective state where he perform his business work he shall also register under CGST
Act. The Registration of GST is received within 30 days.
 4. SCOPE OF THESTUDY

The study was conducted to analyze the effectiveness of implementing GST. It covered the opinions of
the professionals, traders and the general public, consumers. It brought to light the beneficial impacts of
GST
.This study emphasizes the reason for transition from VAT to GST. This study was conducted With
help of different sections of society for example students, housewife , employees , self- employed , etc.

Features of GST:
a) Change of taxation from production to consumption: This will lead to reduce in revenue of
production states. Central government promised to cover this revenue reduction.

b) Elimination of Cascading of taxes: as all taxes will be covered within GST, there will be no
Cascading of taxes. There will be a reduction in end consumption cost.

c) Interlocking of taxation all along the supply chain: This will enhance tax compliance.
There will be a reduction in corruption with tax inspectorsetc.

d) Single indirect tax window: Almost all indirect taxes are subsumed exempting few like
custom duty etc. Until now five rates have been proposed. Zero rate for essential commodities, 5% for
cosmetics of daily use like soaps, shampoos, 12%, standard 18% and 28%for singlegoods

Significance:

GST is the most important tax revenue for State , as exempted good are coming under taxable goods. It
is expected to bring down the incidence of harassment and corruption that trade and industry encounter.
This study consist of various sections of society.

Through this study we had check averness among the people regarding GST.

This study help us to check to individual impact , economical impact , aggregate impact of indian
economy

a) High GDP: GDP is more comprehensively covered in consumption based taxation regime and
thus leads to high GDP growth.

b) High Tax to GDP ratio: as tax compliance increases, tax to GDP ratio increases.

c) Ease of Doing Business: complexity of taxation regime reduces and this helps in easing
business practices.
 d) Common economic market: There will be no transport delays at state borders. This will
contribute to efficiency of businesses.

e) Low inflation: due to elimination of Cascading of taxes.

The process of registration for GST is different from other registrations in different
ways such as:-

1. Permission from CGST and SGST Act for registration is required.

2. If one authority rejects the process for registration there will be automatic rejection by the
other authority.

3. There shall be no rejection of application without giving a solid reason to the applicant.

4. Application shall be considered to be granted under CGST/SGST Act if the application for
registration has been granted under SGST Act/CGST Act.

5. The non-residential and casual taxable person would also require registration fromGST.

Fig 3. Flow chart of registration process of GST

Process of monthly returns filing by Registered Taxable Person:

Every registered taxable person, other than a person opting for composition scheme, Input Service
Distributor (ISD), non-resident taxable person or person required to deduct or collect tax at source, is
required to furnish details of outward and inward supplies of goods/ services, input tax credit availed, tax
payable, tax paid etc. on a monthly basis.

The following are the steps for furnishing the said details:

STEP 1:

The taxpayer (supplier) will have to furnish details of outward supplies made during the month in
Form GSTR-1 electronically through the common portal by 10th day of the subsequent month.

Eg: The details of outward supplies made during October, 2017 shall be reported in Form GSTR- 1
which has to be furnished before 10 November,2017.

STEP 2:

The details of outward supplies furnished by the supplier in Form GSTR-1 shall be auto- populated
and made available electronically to the recipient of supplies in PART A of Form GSTR- 2A through the
GST common portal after the due date of filing of Form GSTR-1.

STEP 3:

The recipient can make the corrections required i.e., addition, modification and deletion in Form
GSTR-2A and submit the final inward details in Form GSTR-2 by 15th day of the subsequent month.

Eg: If the supplier has shown the value of outward supply and tax thereon as INR 1000 and INR 100
respectively for the month of October, 2017 and the actual value of supply and tax thereon as per tax
invoice during that month is INR 1500 and INR 150 respectively, the recipient can modify the said entry
to claim the credit to the extent of INR 150 by 15 November, 2016.
STEP 4:

The corrections done by the recipient shall be made available to the supplier in Form GSTR-1A. The
supplier has to either accept or reject the corrections by 17th day of the subsequent month. Form GSTR-
1 furnished by the supplier will be amended to the extent of correction accepted by the supplier.
Eg: The supplier can accept the corrections made by the recipient in Form GSTR-2 for the month of
October, 2017 i.e., increase in the value of supply and tax thereon by 17 November, 2017 and on doing so,
supplier‟s original Form GSTR-1 shall amendedaccordingly.

STEP 5:

Form GSTR-3 containing details of outward and inward supplies will be auto-populated and will be
made available for submission along with the payment. Form GSTR-3 has to be submitted electronically
by 20th day of subsequent month.

Eg: The details of inward and outward supplies made during the month of October, 2017 shall be
reported in Form GSTR-3 which has to be furnished before 20 November, 2017.
Casual taxable person would have to file Form GSTR-1, Form GSTR-2 and Form GSTR-3 for the
period for which registration has been obtained.

Return Frequency Due date

FORM GSTR-1 Monthly 10th day of succeeding

month

FORM GSTR-2A Monthly Auto-populated after

filing of Form GSTR-1

FORM GSTR-2 Monthly 15th day of the succeeding

month
 FORM GSTR-1A Monthly Auto-populated after
filing of Form
GSTR-2

To be approved by
supplier by 17th day of
succeeding month
FORM GSTR-3 B Monthly 20th day of
succeeding month

Fig.4

GST RATES IN INDIA:

Table 2 shows that the percentage of taxes before and after implementation of GST, like on package
products we pay 4-5% taxes but after the implementation of GST it would be total 18%, which shows that
all package products would turn costly which will affect common man. After package products we see
that on readymade garments we also pay 4-5% of taxes but after GST it will be 18% so our readymade
garments would also be costly like this jewellery, mobile, credit cards etc. would also turn costly but cars,
home appliance etc. would be cheaper.

Here we can conclude that after BEFORE AFTER GST

implementation of GST common man will suffer GST
because he would not be able to satisfy his wants
completely but there would be no
impact on rich people. GOODS
Package Products 4-5% 18%

Readymade Garments 4-5% 18%

Jewellery 3% 18%

Mobile & Credit card 15% 18%

Cars 30-40 18%

%
Home appliance 12.5% & 18%
14.5%
(Excise &
VAT )

Table 2: Tax before and after implementation of GST

Table 3 reveals the impact of GST after implementation, it can be understood clearly from the table
which shows the rate of goods increasing and decreasing after implementation of GST this table also
shows some goods on which there is no implementation of GST. The first row shows the goods whose
rate will decrease after GST and second row shows increase in rates of goods after GST.
 Thus these were some of the items which are affected after the implementation of Goods and Services
Tax.

Decrease No GST Increase

Television Bread White and Mobile phone

whole Meal
Refrigerator Cooking oil Computer
Air Mutton Eye – pad &
Conditioner tablet
Home theater Diesel Digital photo
system printing
Hair dryer Petrol Transportation of
goods
Electric fan & toaster Rice Drinking water

Gas cooker Fresh vegetable Magazines

double burner
Electric iron Fresh fish Fish ball
Cotton bath Powdered milk Canned sardine &
towel tuna
Toothbrush Public transport Lipstick
Dettol, antiseptic Motor oil Motor cycle 110cc

Chairs Engine oil Watches

Table 3 Expected price movement for items upon implementation of GST

5. LITERATUREREVIEW:

According to agoo Mawuli ―Goods and Service Tax-An Appraisal‖ and found that GST is not
good for low income countries and does not provide broad based growth to poor countries. If still these
countries want to implement GST then the rate of GST should be less than 10% for growth.

Research papers on GST :

1.

PUBLISHER IJISSH
PAPER TITLE A STUDY ON IMPACT OF GST AFTER ITS
IMPLEMENTATION
PUBLISHED NOV 2016
ON
CONCLUSION The GST System is basically structured to simplify current
Indirect Tax system in India. A well designed GST is an
attractive method to get rid of deformation of the existing
process of multiple taxation also government has promised that
GST will reduce the compliance burden at present there will be
no distinction between imported and Indian goods & they
would be taxed at the same rate. Many Indirect Taxes like
Sales Tax, VAT etc., will be finished because there will be one
tax system i.e.
GST, that will reduce compliance present burden.
GST will face many
challenges after its implementation and will result to give
many benefits. In overall through this study we conclude that
GST play a dynamic role in the growth and development of our
country.

2.
PUBLISHER IJSRM
PAPER TITLE Basic Concepts and Features of Good and Service Tax In India
ISSN 2321-3418
PUBLISHED Feb 2014
ON
CONCLUSION GST is leviable on all supply of goods and provision of
services as well combination thereof. All sectors of economy
whether the industry, business including Govt. departments and
service sector shall have to bear impact of GST. All sections of
economy viz., big, medium, small scale units, intermediaries,
importers, exporters, traders, professionals and consumers shall
be directly affected by GST. One of the biggest taxation reforms in
India
– the Goods and Service Tax (GST) -- is all set to
integrate State economies and boost overall growth. GST will
create a single, unified Indian market to make
the economy stronger.
Experts say that GST is likely to improve tax collections and Boost
 3.

PUBLISHE IJRG
R
PAPER GST IN INDIA: A KEY TAX REFORM
TITLE
ISSN 2394-3629(P)
PUBLISHE DEC 2015
D
ON
CONCLUSI Due to dissilient environment of Indian economy, it is demand of
ON time to implement GST. Consumption and productions of goods and
services is undoubtedly increasing and because of multiplicity of taxes
in current tax regime administration complexities and compliance cost is
also accelerating.
Thus, a simplify, user -friendly and transparent tax system is required
which
can be fulfilled by implementation of GST. Its implementation stands
for a coherent tax system which will colligate most of current indirect
taxes and in long term it will lead to higher output, more employment
opportunities and flourish GDP by 1- 1.5%. It can also be used as an
effective tool for fiscal policy management if implemented successfully
due to nation-wide same tax rate.
It execution will also results in lower cost of doing business that will
make the domestic products more competitive in local and international
market. No doubt that GST will give India a world class tax system by
grabbing different treatment to manufacturing and service sector. But all
this will be subject to its rational design and timely implementation.
There are various challenges in
way of GST implementation as discussed above in paper. They need
more analytical research to resolve the battling interest of various stake
holders and accomplish the commitment for a
cardinal reform of tax structure in India.

Some other books and articles on Impact of GST:

4. BOOK : GST Law andpractice

 AUTHOR: S. S. Gupta

YEAR OF PUBLICATION: 2017

CONCLUSION : Impact of gst on business are vary as per organization structure .it's up to the
organization to determine the impact of various factor on their finance and re-arrange the business in
order to ensure that the adverse impact is minimized.

5. BOOK : GST in INDIA - A Comprehensive Guide Book by Clear Tax

AUTHOR :-

YEAR OF PUBLICATION : 2017

CONCLUSION : This ebook will help me understand the basics of GST, important terminologies
and concepts, and how this might affect business in the long run.

Articles on Impact of GST:

Article 1 - FM Jaitly Hints at Further Rejig of GST Linking GST Changes To Gujarat Polls 'Juvenile
Politics', Says Arun Jaitley. Also rejecting the Congress's one-tax demand, Arun Jaitley said while there
is scope for further rationalization, it could be decided only by the revenues that flow in. Also stated that
next round team will focus on 5% and 12% slaps ,which have about 250 items each.
Article – 1
 Article 2 - five star hotel revenue come down over 20% . Luxury hotel owner in leisure destination
and chains are anticipating a drop in occupancies this winter vacation . Reason being the 28% GST slab
on rooms with tariffs of ₹7500 and above .Tariffs in peak season go up by us much as 65% for some
luxury chains .Hotel chains like Oberoi Group , ITC Hotel , We lcomHotels , GRT Hotel and resorts are
expecting a dip due to the levy . Booking down as the highest GST slab of 28% on rooms with tariff of ₹
7500 and above keeps tourist away , say hoteliers.

Article - 2
Article 3 - Bond yield nears 7% as alarm bells ring on crude, GST fears .

Indian government bond yields flirted with a 7 per cent yield for the first time since September 2016 as
the fears of higher oil price crimping growth and the government likely slipping on fiscal deficit due to
lower revenues after the GST rate cuts made investors nervous.

The benchmark bond yield closed at 6.97 per cent, a level not seen since May 4 this year. It has
climbed 11 basis points since the beginning of the month while it is a surge of about 54 basis points
compared to July levels.

Article – 3
Article 4 - Sensex, Nifty take huge tumble; crude price, GST revamp in focus.

Stocks fell sharply on Monday as investors worried over the extent of slippage in the country‟s fiscal
deficit for the year due to additional costs from rising crude and a possible dip in revenues from a revamp
of the five-month old goods and services tax (GST).

The Nifty fell 96.80 points, or 0.94%, to close below a key technical mark at 10,224.95. The BSE
Sensex tumbled 281 points.

Article - 4
 Article 5 - India to overtake Japan to become third largest economy by 2028: Report

HIGHLIGHTS:-

India has already overtaken Brazil and Russia to emerge as the second largest BRIC economy after
China:
Bank of America Merrill Lynch report

'Falling dependency ratios, financial maturity and increasing incomes and affordability are the three
key drivers for the country to stand among the large emerging economies'.

India is likely to achieve strong growth over the next decade and will overtake Japan in nominal GDP
by 2028, to emerge as the world's third largest economy, says a foreign brokerage report.

The country has already overtaken Brazil and Russia to emerge as the second largest BRIC economy
after China and is well on track to cross France and Britain to emerge as the second largest BRIC
economy after China and is well on track to cross France and Britain to emerge as the world's fifth largest
economy after Germany by 2019.

Article – 5
 Article 6 - poor execution has earned GST bad name . Goods and services tax (GST) a good tax that
has acquired a Bad name due to poor implementation , formar finance minister Yashwant Sinha on 14th
November said it was pushed into action without much thought .

Article – 6
Article 7- Eating out may become cheaper from 15th November 2017.

Ordering the extra starter or dessert at restaurant may not leave a large dent in our wallet from today
, as central government had announce it would reduce the GST from 12% and 18% to 5% .

Article – 7
Article – 8

India adopts a national Goods and Services Tax

… sort of

Article – 8

Authors: Mandar Oak and Peter Mayer, University of Adelaide

The distance between India‘s mega-cities Kolkata and Mumbai is about the same as from Brisbane to
Adelaide in Australia — roughly 2000 kilometers. Goods shipped by road from Brisbane usually
reach Adelaide in three days. A few years ago, The Economist reported that goods covering that
distance in India can take eight days.

The reason for the difference was not cows on the roads, potholes or even communist insurgents. It
was taxation.

When a truck travelled from Kolkata to Mumbai, it faced multiple long queues upon passing every
state border, waiting to pay the entry tax imposed on the value of the goods on board by each state
and waiting again to have it reimbursed upon leaving. On passing through numerous cities, the truck
would also have to pay another form of entry tax —
the octroi.

In its destination state of Maharashtra, the truck would have been stopped and inspected 12 times
before it reached Mumbai, averaging 11 kilometers per hour and spending approximately 32 hours
waiting in queues.

On 1 July 2017, India introduced a Goods and Services Tax (GST) with the objective of replacing the
dense thicket of national, state and local taxes on consumption with a single tax. If it is successful, it
may have created what some term a ‗single national market‘ in India for the first time.

It took nearly 16 years from conception to implementation to get to the GST regime that was
unveiled in July 2017. Discussions about it were first flagged in 2000, during the Bharatiya Janata
Party-led National Democratic Alliance government under then prime minister Atal Bihari Vajpayee.

The original deadline of 1 April 2010 for implementation was missed by seven years, mainly because
of the failure to get states on board to enact a constitutional amendment. Under India‘s federal
structure, moving from state taxes to a consolidated GST meant that the national government needed
the power to tax the sale of goods — a states‘ list item. Such an amendment required (in addition to a
special majority in the federal parliament) assent from at least 50 per cent of the states.

The constitutional amendment bill that was recently passed makes some important concessions to the
states. In particular, it protects the states for up to five years against revenue loss that may occur due
to the new tax regime.

Implementing a GST in India — a country with millions of very poor citizens and a legacy of
multiple consumption taxes — has produced a tax of great complexity. Goods and services are taxed
in various ways, ranging from a tax of 5 per cent on snack foods to 48 per cent on large cars. This is
in stark contrast to the GST in New Zealand and Australia, which taxes all goods and services at a
single rate, with a few exceptions.

The implementation of the GST will be governed by the GST Council, which has the power to
change or revise the tax rates applicable to different goods and to create exclusions. The Council has
met once since the roll out and has already revised rates on certain commodities.
Three major items of consumption are currently outside the GST‘s scope — petroleum products,
alcohol and real estate. Taxes on petroleum raise about one third of Indian states‘ revenues, while
those on alcohol bring in another 25 per cent. The states are unwilling to give up such significant
income sources to the national government.

For the hundreds of thousands of small shop owners in India who have kept traditional hand- written
ledgers in their mother tongue, the new GST is something of a nightmare. They are now required to
file their GST reports online, so in addition to suddenly having to become computer-literate, they
face the challenge of navigating the tax portal in English. The burden on service providers who
operate in multiple states is also greatly increased by the new GST, since they have to file separate
reports for each state.

And in a society where tax-avoidance is something of a national sport, there are reports of small
traders finding ways to dodge the new tax. For example, if a pair of shoes costs less than Rs 500
(US$8), they are taxed at 5 per cent, while more expensive shoes are taxed at 18 per cent. Some
stores are selling shoes individually to bring the cost below Rs 500.

To bring a reform as complex as the GST into being within Indian federalism, the government had to
overcome formidable obstacles. Difficulties and anomalies have inevitably exposed it to criticism.
6. RECENT UPDATE ONGST:

GST Council keeps only 50 items out of 227 in highest slab; 177 items to become cheaper By Zee
Media Bureau | Last Updated: Friday, November 10, 2017 03:49 PM IST

The all-powerful GST Council pruned the list of items attracting the top 28 percent tax rate to just 50
from 227 previously.
New Delhi: The GST Council on Friday decided to cut tax rate on a wide range of daily-use items -
from chewing gums to detergents -- to 18 percent while keeping only 50 items, mostly demerit, sin and
luxury goods in top 28 percent bracket, Bihar Deputy Chief Minister Sushil Kumar Modi said.
The all-powerful Council pruned the list of items attracting the top 28 percent tax rate to just 50 from
227 previously. In effect, the Council, in its 23rd meet today, cut rates on 177 goods.
"There were 227 items in the 28 percent slab. The fitment committee had recommended that it should
be pruned to 62 items. But the GST Council has further pruned 12 more items," Sushil Modi told reporters
on the sidelines of the ongoing Council meeting.
He said all types of chewing gum, chocolates, preparation for facial make-up, shaving and after- shave
items, shampoo deodorants, washing powder detergent and granite and marble will attract lower 18
percent tax rate.
"There was unanimity that in 28 percent category there should be only sin and demerit goods. So, today
the GST Council took a historic decision, that in the 28 percent slab there will be only
50 items and the remaining items have been brought down to 18 percent," hesaid.
Paints and cement have been retained in the 28 percent tax bracket, he said. "Luxury goods like
washing machines and air conditioners have been retained at 28 percent."
The decision taken by the GST Council will have a revenue implication of Rs 20,000 crore annually.
The Govt. had earlier suggested slashing tax rate to 1 percent for manufacturers and restaurants
opting for the scheme from 2 percent and 5 percent, respectively.
It was in favor of doing away with the tax rate distinction between AC and non-AC restaurants, those
which are not covered under the composition scheme and tax them at a flat 12percent.
Currently, non-AC restaurants are taxed at 18 percent.
It also suggested that eating out at hotels that have room tariff of more than Rs 7,500 should attract a
uniform 18 percent rate instead of any separate category for 5-star hotel, which currently falls under the
28 percent bracket.
Article 9:

The biggest package of tax concessions after took effect .

Over 200 common /daily use items as well as product predominantly made by small medium
Enterprise (SMEs) shifted to lower tax bracket from 15th November 2017.

From 28% to 18% GST brackets - 178 items of wide of common use product use in every household
ect .

From 18% to 12% GST brackets - 13 items including condensed milk , refined sugar , diabetic food ,
hand bags , medical origen , ect.

From 18% to 5% - puff rice chikki, flour of potatoes , chutney powder , sulphur recovered and fly ash .

From 5% to Nill - six items including ghar meal , hop cone certain dried vegetable , un work coconut
shell and fish .

Eating out food in restaurant and ordering it much more affordable.

Food service or takeaway in all stand - alone restaurant, including restaurant in hotel premises
having room tariff of less than ₹ 7500 per unit day, Attract 5% GST without ITC.

Relief in compliance: process made easier and simpler.

All tax payers to file simple return in form GSTR-3B with payment up to 20th of succeeding month
for a period till March , 2018 .

All tax payers needs to submit GSTR-1 only till March , 2018 without required filling of GSTS-2 &
GSTR-3
.

Time limit for filling GSTR-2 & GSTR-3 would be notified later on. Benefits to service providers :-

All service providers having aggregate turnover below ₹20 lakhs weather supplying service intra
- state , inter -state or through e- commerce operator , exempted from obtaining GST registration.
Article 9
 MESSAGE FROM HIS HOLINESS

DR. SRI SRI SRI SHIVAKUMARA SWAMIJI

It gives me immense pleasure to write a Message for the proceedings of the National Conference,
―Introducing GST and Its Impact on Indian Economy‖, organized by Tumkur University, Tumakuru.

I take this opportunity to congratulate the Tumkur University for organizing academic events which
throw light on contemporary socio-economic problems. The present theme of the conference is one such
attempt which makes all of us to think critically about our economy and tax paying system. Besides, I am
pleased to see the educational service this University has been providing to Tumkuru region. I wish the
University all the best in its future endeavours.

Further, the organizers of the conference and the editorial team have brought out the proceedings of the
conference in an academically befitting way. The papers handpicked for publication here, I am sure,
illuminate our understanding of the Goods and Services Tax Bill. The deliberations of the Conference will
definitely serve as guiding principles for the policy makes, and the delegates and research scholars will
gain critical knowledge in the domain of tax and commerce studies, I believe.

I wish the Conference all the best.

Sree Siddagangamath
7. Impact of GST on VariousSectors:

Fast moving consumer goodssector:

The Indian FMCG sector is the fastest growing sector in the economy. FMCG sector is the major
contributor in both direct and indirect taxes in the economy. Implementation of Goods and services tax will
majorly influence Indian economy. The current rate of taxation in FMCG sector is around 22 to 25% and
after GST rate is expected to be much lower which will result in reduction of prices of consumer goods.

Traders:

The impact of tax on the wholesaler or retailer would be limited to the value addition. The tax paid at
earlier stages (except SGST of other states) would be available as set off for payment of GST on supplies.
Therefore traders would prefer to buy/ receive supplies with invoice. The tax payable as a percentage of the
supply value would be small whereby the compliance would be more cost effective than evasion. Cost of
products and services would reduce due to the cascading effect of tax being reduced. Traders in GST regime
can concentrate on growth into large entities instead of remaining small and fragmented.

Manufacturers:

The manufacturing sector in India is not only plagued with concerns ranging from decline in exports and
infrastructure spending but also with the burden of complying with a complex indirect taxation system.
Multiple indirect tax legislations have led to significant compliance and administrative costs, classification
and valuation disputes and generally impaired the ease of doing business in this sector.

The implementation of GST will significantly improve the competitiveness and performance
of India's manufacturing sector.

For most industrial products, GST rates have been slated at 18%. Today a manufacturer pays about 28-
30% as taxes, so this means an average saving of around10%.
GST will affect the manufacturing sector in the following ways:
State Incentives & Area based incentives
Presently, companies have set up their manufacturing units with significant investment outlays based on
incentives offered by states under their respective investment promotion policies.
However, under the GST regime, such flexibility given to the states is likely to be curtailed to achieve the
intended effect of uniformity.

Further, GST will only be credited to the state where the supplies are consumed, as opposed to the present
situation where the producer state is credited with central sales tax on inter- state sales. This would lead to a
loss of revenue for the producer states and therefore such states may not be in a financial position to continue
offering such incentives.

In addition to above, manufacturing units enjoy exemption of taxes based on their location in specified
backward areas, capital investment etc. There is no clarity under the GST on the treatment of such area based
exemptions resulting in loss of unutilized portion of such incentives.
Increased working capital
Impact on working capital may be significant for the manufacturing sector. Currently, stock transfers are
not subject to tax. However, under the GST regime, stock transfers are deemed to be supplies and are subject
to GST. Though GST paid at this stage would be available as credit, realization of this GST would only occur
when the final supply is concluded. This would likely result in cash flow blockages and therefore companies
would have to rethink their supply chain management strategies to minimize this impact on their cashflows.

Free supplies & Discounts

Under the present indirect tax regime, free supply of goods is not subject to VAT. GST law stipulates that
specific transactions without consideration would also be treated as supplies. Accordingly, free samples may
be subject to GST, leading to increase in overall costs.

Since GST law stipulates that post supply discounts are to be excluded from the transaction value,
provided such discounts are known at or before the time of supply of goods and are linked to the invoices for
such supply. Thus, companies may also need to analyze existing post supply discounts/incentive schemes
where the quantum of discount is not known at the supply stage.
Supply chain restructuring
Currently, the supply and distribution models are structured to optimize indirect tax impact arising at
various levels of value addition. Transition to GST will result in such decisions being taken to optimize
business efficiency (as opposed to indirect tax efficiency). Currently, firms spend a high 5-8% as product
distribution and warehousing cost. GST would lead to lower transportation and distribution costs.

With the advent of GST, it is hoped that such warehousing and logistics decision would be based on
economic efficiency such as costs and locational advantages vis-a-vis key customers.

Also with overall reduction of cascading effect of taxes, especially on the post-manufacture stage of the
supply chain, manufacturing sector stands to benefit significantly and have a positive effect on the cost of
manufactured products in the hands of consumers. However, concerns remain on specific issues such as the
additional 1% origin tax, increased cash flow issues on account of GST payable on stock transfers and
increased costs owing to exclusion of petroleum fuels from the ambit of GST.

Yet the lower taxes, simplified tax structure, seamless tax credit facility and technology driven easy tax
compliance system offered by GST provide an ideal platform to increase manufacturing‘s share of GDP
from the current 17.4% to 25% by 2025.
There would be a saving in taxes absorbed at various stages of manufactures thereby reducing the cost of
goods sold. This would make them more competitive both in domestic and international markets. The
exports would be cheaper as taxes paid at earlier stages could be refunded. The difference between large
manufactures and small would reduce. The indignity of harassments and bribe for honest manufacturers
would substantially reduce over a period of time.
E-commerce

Currently, the federal indirect tax structure with different tax regimes in various states has led to confusion
and uncertainty on the tax treatment of online marketplaces and aggregators. GST will help remove the
ambiguity that currently exists in this sector and insulate such operators from ad hoc laws and arbitrary levies
imposed by state governments. However, it may result in higher compliance challenges for the e- commerce
sector

Compliance costs

Under the new regime, every electronic commerce operator would need to collect tax at source and
deposit applicable GST when payments are to be made to the supplier.

In the current regime, e-commerce players are treated only as service providers and are therefore required
to comply with only one central service tax legislation. Under GST, with the burden of TCS @ 1%, such
electronic commerce operators will also be required to undertake additional compliances in states where the
supplier is located.

However, it has been kept at 1%, which is the lowest. Thus, E-commerce consumers are likely to remain
unaffected once GST sets even as players like Flipkart and Amazon prepare to deduct 1% of the payment it
makes to sellers under the new tax regime. This will not significantly increase the onus and compliance
burden on electronic commerce operators.

Stock transfers to be taxed

Under the GST Law, specified transactions without consideration would also be treated as supplies. Intra-
state and inter-state stock transfers, between branches or warehouses of a single e- commerce entity, would
be deemed to be supplies, subject to GST. Though the tax paid would be available as credit to the entity, this
may result in cash flow blockages.
 Credit available only when tax is paid
Credit can only be claimed on taxes which have been paid to the credit of the government. However, removal
of cascading effect and consolidation of taxes could bring in significant benefits such as unrestrictive cross
utilization of credits of service tax paid on input services like
warehousing, logistics, commission of marketplace. The GST will therefore facilitate seamless credit across
supply chains, with tax set offs available across the production value chain, both for goods and services,
therefore bringing down the overall cost of supplies. This cost benefit would be ultimately passed on to the
customers or help in increasing the books of the companies.

Real Estate

Indian real estate sector is estimated to account for about 5% of India's gross domestic product and is
considered the second-largest employer in the country.

Real estate sector is already subject to multiple taxation, the implementation of GST is theoretically
expected to help the consumers and builders.

The GST regime will be a game changer for real estate sector and the 12% GST on construction projects
meant for sale to buyers will boost the sector.

Ambit of GST under real estate is likely to result in more transparency, which will significantly reduce tax
evasion through more efficient transaction-tracking methods and improved enforcement and compliance.
Since GST may be levied on a single value, the current issue of levying tax on tax (VAT on central excise
duty) is likely to be removed.

Transfer of (completed) properties may continue to be outside the purview of GST and be liable only to
applicable stamp duties. However, on procurement of materials for civil construction, GST will be
applicable.
 At present, developers pay various non- creditable taxes on supplies like excise duty,customs duty, CST,
entry tax etc. on the procurement side, and the buyers pay service tax and VAT on purchase of residential
units when booked prior to their completion. GST will replace these multiple taxes with a single tax and all
the developers will get the input credit on the material they are using in construction, thus ensuring a smooth
flow of credits through the chain which in turn will reduce costs for all players.

Also, the present tax laws provides an abatement of 75% on service tax to be paid for property valuing
less than one crore, whereas properties valuing more than one crore allows only 70% of abatement resulting
in a pay out of service tax at the rate of 4.50%. In addition to above, applicability of VAT & stamp duty is
also there. However, abatements will be removed and stamp duty will continue under GST, increasing the
overall tax liability.

Affordable housing will continue to be exempted from service tax underGST.

The heavily taxed real estate sector welcomes a single stable 12% GST rate, inclusive of the value of land
and with full input tax credits. Thus, the actual tax incidence under GST will be lower than the existing
multiple indirect taxes on the sector. Also, the GST rate for work contracts will also be offset by input credits
thereby providing a seamless and simplified tax policy.

The implementation of GST will broadly benefit real estate sector by ensuring a uniform tax structure and
improve tax compliance by developers. It looks at bringing in greater transparency for the sector and may
minimize unscrupulous transactions. GST will have a cascading effect for the home buyers, as developers
with more margins in their hands will be able to restructure the cost of the products in favour of consumers
thereby reducing the property prices.

Banking
 Banks have always been a huge pillar of the Indian economy and taxpayers are literally banking on them
for financial needs.

In India, most of the banking and financial services are exposed to service tax, at the rate of 15%. Under
the new tax regime, GST rate for financial services transactions, such as banking, mutual funds, insurance
and stock broking has been increased to 18% from 15% earlier. Thus, financial services transactions to
become marginally costlier.

GST applies to all services wherein there is a supply of services for consideration. So, in banking
transactions such as credit card payments, fund transfer, ATM transactions, processing fees on loans etc.,
where the banks are levying charges, increased tax rates would apply. This would have a slight inflationary
impact.

Also, Interest on loans, trading in securities, foreign currency and retail services will also fall within the
ambit of GST. Thus, it appears that imposing GST on banking and financial services will make the financial
services costly.

However, interest on fixed deposits, bank account deposits etc. which do not attract a charge will remain
so even under the new regime.

Since GST is a destination-based tax, it might be a challenge to determine the destination of certain
services (at present, services are taxed at the place of rendering the service). This may lead to a difficulty in
determining state GST, central GST or inter-state GST on B2B and B2C transactions.

Automobiles

Buyers of passenger vehicles in the premium segment will be key beneficiaries of GST, which will reduce
the effective duty on such models. Prices of small cars will more or less remain the same as their will only be
a minor hike in the duty under the GST.
 Cars will be taxed at the top rate of 28% plus a cess in the range of 1% to 15%. Small cars will be charged
1% cess on top of 28% tax, mid- sized cars will attract 3% cess and luxury cars 15% cess on top of the
peakrate.

A current levy of Indirect taxes on cars varies from 30% to 45%. The rates of GST are as per the
expectations of the industry and almost all segments of the industry have benefitted by way of a reduced
overall tax burden in varying degree.

Moreover, elimination of cascading effect and offset of input tax credit at every stage ofvalue chain will
reduce the cost. By and large, the impact of GST may be positive for car segment of automobile sector. There
will be several key beneficiaries of GST including some really giant companies.

Industry experts opine that GST will lead to the dropping of on road price of vehicles by 8%. Lower
prices can be construed as indirect stimulus to boost volumes. Key beneficiaries would be Maruti Suzuki,
M&M and Eicher Motors.

However, demand for commercial vehicles may be hit in the medium term. GST will subsume local taxes,
reduce time at check-posts and ease logistics hurdles. With fleet productivity increasing, operators may not
feel the need to expand mid-term.

Further, GST will also enable the auto dealers to get input tax credit for the GST paid by them at the time
of acquiring the vehicles from the OEMs. Similar benefit will accrue to them on the spare
part/servicebusinesses.

A reduced overall tax burden will pave the way for stimulating demand and strengthening the automotive
market in the country.
Agriculture

The implementation of GST would boost the economic growth by the means of wider tax base,
compliance in tax payment and by pushing balance of trade on favorable side.

One of the most radical decisions taken at the GST council meet was to fix the applicable GST rate at zero
per cent for most of the primary farm produce.

The central government currently taxes neither production/sale of farm produce nor agricultural incomes.
Under GST also, there will be no VAT and the cesses too are supposed to be subsumed within the zero per
cent GST. Thus, there will be no impact of GST on the farming community.

However, the rates on fruit and vegetable juices, jam, sauces, purees, mixes, concentrates and a host of
processed foods have been set at 12 to18%.

Taking into consideration food consumed by the poor, food grain and milk have been exempted from
taxes. Cereals will be taxed at 5%. Under the new GST law, dairy farming, poultry farming and stock
breeding are kept out of the definition of agriculture. Therefore, these will be taxable under GST.

The main impact of GST in agriculture would bring is the inflation with currently 4% VAT being
increased to 8% on many food items including cereals and grains as the exemption under VAT is limited to
unprocessed food. The most affected from the inflation would be the consumers living below poverty line.

Also, the incidence of taxation on agro processing industry would also help in reducing the cost of heavy
machinery required for producing agricultural commodities.

Implementation of GST is essential to improve the transparency, reliability, timeline of supply chain
mechanism. Since most of the agricultural commodities are perishable in nature. An improved supply chain
mechanism due to GST would reduce the time taken for inter-state
transportation and would ensure reduction in wastage and cost for the farmers/ retailers.

GST system seeks to replace multiple taxes and tariffs and has set free the decisions on warehousing and
distribution from tax considerations. Under GST, the logistics and transportation will be more cost and time
efficient, thereby curtailing the wastage of precious food as well.

Moreover, with the ease of availing tax credit under GST regime, it is expected to boost inter- state trade
leading to achieving the objectives of National Agricultural Market. Both CGST and SGST will be levied on
import of goods and services into the country. Exports, however, will be zero-rated, meaning exporters of
goods and services need not pay GST on their exports.

About its implications on agricultural sector, it could be concluded that though the overall tax burden on
consumers will be less in new tax regime, but certainly it would have inflationary pressure on the food
articles especially processed one which may lead to restoring the consumption towards fresh farm products.

The implementation of GST is going to benefit a lot, the farmers/ distributors in the long run as there will
be a single unified national agriculture market which will help them to sell their produce for the best
available prices.

Pharmaceuticals

The Indian pharmaceutical industry is the principal supplier of generic drugs all over the world, with 80%
of all AIDS drugs produced in India. The UN has provided licenses to six Indian pharmaceutical labs to make
generic anti-AIDS medicine for all the developing nations. Indian pharmaceutical companies manufacture
20% of all generic drugs used around the world.
 GST in India is likely to have a far-reaching impact on several aspects of business including pricing of
products and services, supply chain, IT systems, accounting, tax compliance framework & re-skilling of
talent.

The pharmaceutical industry was hoping the GST rate on life-saving drugs would be zero, even as it has
been capped at 5% and that of all other formulations at 12%. The rates in the GST regime are slightly higher
than what prevail now.

In the GST regime, essential drugs that treat malaria, HIV-AIDS, tuberculosis, and diabetes fall in the 5%
bracket. Almost all other drugs are in the 12% net.

Nicotine polacrilex gum is the only pharmaceutical product to be charged at the rate of 18%. Cipla, the
brand which produces nicotine gums, will probably be impacted from the rate fixed at 18%. More than the
tax rate, the bigger worry for the companies is the disruption the new tax regime will bring.

Medicines to be get costlier as active pharmaceutical ingredient, or raw materials, will be taxed at 18%.

Distributors and stockiest are upset at the loss they might have to incur with the increase in the effective
tax rate. The effective tax rate on formulations, now 9%, has been increased to 12% and trader margins have
been built into the tax rate.

Under the current tax laws on pharmaceutical products, in many states VAT is on maximum retail price,
which is on a single point. Due to this, the distribution channel does not pay VAT. Thus, for them paying tax
under GST coupled with three returns a month is a humongous task.

Earlier, ayurvedic drugs or medicines were charged an average VAT of 4% and excise of 1.5% due to the
excise free manufacturing zone benefit. Under GST, ayurvedic medicines could get costlier as they would be
taxed at the rate of 12%.

No clarification has been provided by the government on the issue of manufacturers operating in excise-
free manufacturing zones paying more tax under GST. Most of these manufacturers are competitive in the
pharmaceutical industry is due to the excise benefit as they are situated in remote places.

The Pharma industry also GST specifically provides for refund of accumulated credit resulting out of
increased rate for inputs vis-a- vis reduced rate of output. This is positive news for the
 Pharma industry, which has been struggling with a high amount of blocked credit in the current regime. Also,
special provisions for duty-free movement of goods under job work model, which is prevalent in the
pharmaceutical industry and fundamental to its operations, have been provided in the new regime.

GST law also provides seamless transition of entire credit balance as on the cut over date under the
present indirect tax laws.

Also, continuity of the area-based indirect tax benefits under the GST regime is critical as this may also
indirectly impact the cost of medicines and ultimate price to be paid by the patients.

Since GST on inter-state sale of goods would be creditable, there is an opportunity to remodel current
supply chain structure to ensure lower logistics cost and bring in significant operational efficiency which
should have a positive impact on the profitability of the companies.

The sector is hopeful of making refund process fast and simple, this coupled with savings in warehousing
and logistics cost may anticipate a positive impact.

A lot of the times, medicines are provided without bills in India. GST would curb such practices as
providing medicine without the bill would not be beneficial for anyone in the distribution chain.

The government needs to still provide clarification on the inclusion of the current benefit for the
manufacturers under excise for operating from the excise free manufacturing zones. The pharmaceutical
industry is also asking for more information on the implementation of GST on the MRP of pharmaceutical
products.

FMCG & Retail

GST would have significant impact on the way businesses operate and one of the sectors
which would be significantly impacted by GST is the retail sector. Its impact on FMCG firms will depend on
their product mix, given that the tax rates have gone up for some products and have fallen for others.

The tax fitments announced by the GST council has evoked a mixed response from the FMCG sector,
with some viewing it as positive, while many others have expressed disappointment.

Beverage companies, for instance, said the effective tax rate of 40% on sweetened aerated water and
flavored water under GST was against the stated policy of maintaining parity with the existing weighted
average tax, which is significantly below 40%. Aerated beverages have been placed in the highest tax slab of
28% and in addition will attract a cess of12%.

Apart from driving supply chain efficiencies, bringing untaxed players into the tax net, a large section of
the industry still operates in the unorganized segment, thus GST will level the playing field for the larger,
established players in the industry.

However, the GST rate structure shows that not all FMCG companies stand to benefit from the new
regime.

The rates for various FMCG segments have mostly been along expected lines. Items of mass consumption
like toothpaste, soaps, hair oil etc. have been put under the 18% tax slab, significantly lower than the 22-24%
tax rate they have been paying. This is in accordance with the government‘s stance of keeping tax rates low
for mass consumption products. In fact, the GST rate schedule indicates that nearly 81% of all items are in
the 18% tax bracket or below. The remaining 19% fall in the 28% tax slab.
 The FMCG companies, whose tax incidence has come down under the GST regime, are likely to pass it
on to the consumers in the form of lower prices. Lower prices could potentially support volume growth for
certain products, particularly in the rural segment. It is believed that it could result in a faster consumption
shift from unbranded to branded products, spurring volume growth for FMCG companies. Simultaneously, it
will also bring operational efficiency with rationalization of supply chain by removing bottlenecks. Analysts
also point out that tax exemption provided to several critical products required for food processing like
jaggery, cereals and milk would benefit this industry.

However, surprisingly some of the widely consumed products have been placed under the highest tax slab
of 28% which is slightly higher than the rate levied earlier. Higher tax rate in paints, baby food, detergents
and shampoo is a real dampener since these are daily-use, mass consumption items. Manufacturers will have
to pass on the higher tax incidence to consumers in the form of higher prices of these goods.

Most of the items belonging to the premium category have been put under the highest tax slab of 28%.
These include health supplements, skin care, aerated drinks, and liquid soap, among other goods. But this is
not going to have a particularly negative impact on manufacturers as they had been paying similar taxes
earlier.

For most other FMCG majors, the GST rate structure is likely to be neutral or marginally positive, as their
broad portfolios would see a mixed impact. In case of HUL, for instance, tax incidence has reduced for soap,
toothpaste and tea, but increased for detergent, shampoo and skin care. For Godrej consumer products, lower
tax incidence on soaps and insecticides is a positive, but higher tax rate for hair dye is a negative.
In addition to the above, following are to be considered:
Increased availability of input tax credit
However, the GST charged on the aforementioned transactions would be creditable. This would eliminate
the cascading effect of taxes and could lead to reduction in effective tax cost for various products.

But, a higher rate of GST on certain products could offset the benefit of increased credit availability
mentioned above and lead to higher tax cost.

Promotion schemes
Retailers currently offer various marketing schemes such as ―Buy one get one free‖, free samples,
etc. to customers. 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 of promotion and also pose a challenge as regards the valuation to be adopted
for calculating GST on such goods.

Further, FMCG companies could generate substantial savings in logistics and distribution costs as the
need for multiple sales depots will be eliminated. Currently, FMCG companies pay nearly 24-25% including
excise duty, VAT and entry tax and a lower rate of 18% will yield significant reduction in taxes. Also,
warehouse rationalization and reduction of overall tax rates is expected to generate saving.

Thus, several of the rapidly moving consumer goods companies such as HUL, ITC, P&G will benefit
immensely by this tax structure of a GST rate equaling to 18%. Also, much relies on the exemptions which
are being retained along with the excise benefits. Benefits aren‘t expected to be huge and will happen slowly
as per several of the analysts.

At present, the CVD on import of goods, excise duty on goods manufactured in India, CST on inter-state
procurement of goods and service tax on input services, are a cost to the retailers.
Energy

The energy sector is a key driver for economic growth but remains plagued by policy and regulatory
bottlenecks. Lack of pass through of indirect taxes contributes to the inefficiencies that have crept into this
sector. Unfortunately, this legacy issue is set to continue under the new GST regime, with generation and
sale of electricity being kept outside the purview of GST but capital goods and services used in the energy
sector being brought within the GST net.

New GST rate slabs for coal and capital goods are expected to bring cheer to the power sector. Coal,
the key raw material for about 60% of the power produced in the country, has been placed under the 5%
slab, while capital goods and intermediate industries will be under the 18% slab.

Thus, the 5% rate for coal, down from 11.7% in the current tax regime is a major breather as it would
help reduce the final tariff which would be passed on to the consumers.

At the same time, capital goods falling in the 18% tax slab would also help the power project
developers to reduce their cost and hence the capacity charge will reduce.

Currently, tax concessions and exemptions, both at the central and state level are available on specified
goods and services which are used in the energy sector. However, with the GST regime generally set to
trim such exemptions and concessions, the effect on the energy sector may be significant.

Increased cost of energy projects

While goods and services required for setting up energy projects will be subject to GST, they will not
be creditable for the generating entity leading to a cascading of indirect taxes. Also, there is no clarity on
whether the various concessions/ exemptions available for setting up energy projects will continue under
the GST regime.

Moreover, removal of concessional rate for inter-state procurement for EPC contracts would not allow
the project owners to structure their procurements as inter-state sales to reduce tax costs.
 In the absence of such tax exemptions and concessions, there is a possibility of a significant increase in
project costs.

Impact on renewable energy

With a view to encourage clean energy, multiple tax concessions and exemptions have been extended
to the renewable energy sector. As a result, green energy is generally available at reduced tariff rates.
However, there is no clarity on whether such benefits would be extended under the GST regime. It is
necessary that the government continues to offer tax breaks to the renewable energy sector, for it to
remain a competitive option to conventional fuel based energy.

Therefore, a lower tax rate of 5% on renewable energy equipment would not result in any increase in
the renewable energy costs and the cost of energy projects in India. This would remove GST incidence at
the terminal stage, and also enable suppliers to obtain tax refunds of their own input costs.

Further, energy is a core sector in any economy since power is a key requirement for every commercial
activity. Any tax distortion faced by this sector on account of electricity being outside the ambit of GST,
will have a cascading effect on the rest of the economy, negating some of the very benefits sought to be
brought about by the introduction of GST. Accordingly, it is felt that the Government has missed an
opportunity by not integrating generation and distribution of electricity with other supplies which interact
with it, under the umbrella of GST.

Therefore, the viability of the energy sector, under the current GST regime, would depend upon the
exemptions and concessionary tax which may be put in place to counter the impact of different tax
regimes on the input and output side. Exemptions in renewable will need to be grandfathered for this sub-
sector to remain viable.
Telecom

From the conventional belief of being a communication service provider to providing multiple streams
of value added services, the telecommunication (telecom) sector has become one of India‘s core economic
drivers.

Presently, the telecom industry faces several shortcomings such as cascading effect of taxes, issues
with the classification of services, etc. that hamper the growth of this sector.

One of the major concerns for telecom service providers is the denial of cenvat credit on telecom
towers. However, under the GST regime, telecom would be allowed to avail such input tax credit for
utilization against output GST liability.

In order to achieve the desired goal of expanding the telecom business and accomplishing socio-
economic development, it is essential that the cost of the telecom service provider goes down, which will
result in lower tariff rates and broader consumer base. Considering an overall objective, the proposed GST
framework seems to have addressed the concerns of the telecom sector.

The seamless flow of credit under the GST regime will help reduce the overall cost and eventually the
benefit can be passed on to the end-user by lowering tariff rates. There would be pertinent increase in free
cash flow which can be used in business development opportunities.

All service related sectors are expected to be negatively-effected as the service tax rate is 15%
currently and GST rate on telecom has been fixed at 18%. Even a moderate rise in tax could hit demand
and profits. Given the data volumes are slowing and with the launch of Reliance Jio, the times ahead for
telecom companies are going to be tough and this will be reflected in their stock prices as well.

Also, most telecoms have obtained centralized service tax registration certificate and undertake
centralized compliances. However, under the GST Law, separate registration would be required in each
state from where the services are rendered leading to increased compliance requirements as compared to
the current regime.Telecoms would still need to advocate with the Government for
 unresolved issues under GST such as double taxation on account of free supplies to service provider,
absence of provision for transition of input tax credit, lack of clarity on telecom‘s eligibility to claim
credit relating to passive infrastructure etc.

The telecom sector is vibrant, price-sensitive and has a high growth potential. Strong policy support
from the government under GST is crucial for overall development.

Transportation Industry:

GST on transport sector will result in more efficient cross state transportation. It will bring down the
logistics cost, reduced times for transportation. Currently all the 29 states of India collect taxes at
different rates on goods that move across the state borders that‟s why the tax on transportation is collected
multiple times. This will make long delays at different interstate checkpoints for reviewing by state
authorities who checks for the application of relevant taxes and other levies. This causes the delays for an
average of 6 to 7 hours. GST would replace around 15 state and federal taxes and tariffs for a single tax at
the point of sale of goods.

Textiles Industry:

It is expected that the tax rate in GST would be higher in textile industry as per the current tax rate.
Cotton and wool fibre which are currently exempted from tax would come under tax in GST but the
textile industry may be beneficial from GST as manufacturing costs ,may be reduced due to subsume of
various taxes like octroi, entry tax, luxury tax etc. There will be few drawbacks also but GST will support
the industry in long run.
8. ANALYSIS AND PRESENTATION OF DATA:

Following questions are responded while doing survey and their responses are as follows :

1. Do you now /aware about GST?

A) Yes B)No

Response :-all 16 respondent stated that they are aware about GST .

2. Dose you affected by GST?

A)Yes B)No

Response:- 11 respondent stated yes and 5 are no.

3. What you think , life get simpler due to GST? A)Yes B)No

Response :-10 respondent stated that yes and 5 are no and 1 was not sure .

4. Impact of GST on yourlife? A)Bad B)Good

 C) Better D)Best

Response :- 4 sated bad impact , 6 good impact ,4 better , & 2 are not sure about that .

100%

Graph A

5. What you think , to follow GST is difficult task ?

A) Stronglyagree

B) Agree

C) Dis-agree
D) StronglyDis-agree

Response :- 2 go with Strongly agree , 8 are agree , 5 are dis agree and 1 was not sure.

6. What you think GST has more positive effect than negative?

A) Stronglyagree

B) Agree

C) Disagree

D) StronglyDisagree

Response :- 2 respondent stated strongly Agree , 8 are agree , 5 are dis agree , no one go with Strongly
Disagree and 1 was not sure.

Graph B
7. Impact of GST on GDP I.e. Gross Domestic Project .

A) Bad

B) Good

C) Better

D) Best

Response :- 2 go with bad , 10 with good , 1 with better , 0 with best and 3 was not sure

8) What will see affect of GST on export and import?

A) Bad

B) Good

C) Better

D) Best

Response :- 3 respondent stated bad , 9 stated good , 1 better , 1 best and 2 ware not sure .

Graph C
9. What you think about process to file return of GST?

A) Easy

B) Veryeasy

C) Difficult

D) Mostdifficult

Response :- 4 respondent go with easy , 3 go with very easy , 3 go with difficult , 7 go with most
difficult.

Graph D
10. What you think about impact of GST on indian economy?

A) Positive

B) Negative

C) Notsure

Response :- 9 respondent stated that positive and 5 State that negative and 2 were not sure.

Graph E
11. Give rating to GST out of 5 star.

A) 1Star

B) 2Star

C) 3Star

D) 4star

E) 5Star

Response :- 1 respondent given 1 star , 4 respondent given 2 star , 5 respondent given 3 star , 5
respondent given 4 star and only 1 respondent given 5 star .

Graph F
9. EXAMPLE OFGST:

EXAMPLE 1.
Let us examine this with an example of car as a product with overall rate of tax being considered same
under existing and under GST regime – to illustrate elimination of tax on tax.

Previous Tax Structure:

Example of Car: Existing

Cost of Manufactures 4,00,000
Excise + Infrastructure cess @ 10 40,000
%
Dealer Cost 440000
Margin @ 10 % 44,000
Sale Price for delear 4,84,000
VAT 12% 58,080
Price to customer 5,42,080

Table. A
Here, the Dealer Cost is Rs.4,40,000/-, including excise duty and infrastructure cess of Rs.40,000/-.
The law does not permit excise duty and cess paid on purchases to be set off against the dealer‟s liability,
adding to the overall cost. Rs. 40,000 is included while determining the sale price (10% margin is added),
and taxed once again when the sale is affected. This results in tax cascading down to the end customer,
and an increase in the cost of the car.

GST Tax Structure:

Example of Car: GST

Cost of Manufactures 4,00,000
Margin @ 10 % 44,000
Sale Price for delear 4,44,000
CGST@11% 48,400
SGST@11% 48,400
Price to customer 5,36,800
Tax liability :
Saving to Consumer 5,280

Table. B
 In the example, the taxes paid by dealer (CGST + SGST) to manufacturer is not added to cost. This is
because GST allows the dealer to set off the tax liability of CGST+SGST. This is one of the fundamental
features of GST, which allows seamless credit from manufacturer to dealer, and eliminates the cascading
effect.

EXAMPLE 2. Let us examine TAX structure with an example of Mobile phone as a product with
overall rate of tax being considered same under existing and under GST regime – to illustrate elimination
of tax on tax.

Particulars Without GST With GST

(RS) (RS)
Manufacture to
Wholesaler
Cost of Production 5000.00 5000.00

Add: Profit Margin 2 2000.00 2000.00

Manufacturer 7000.00 7000.00

Price
Add: Excise Duty @ 840.00 -
12%
Total Value(a) 7840.00 7000.00
Add: VAT @ 12.5% 980.00 -

Add: CGST @ 12% - 840.00

Add: SGST @ - 840.00

12%
Invoice Value 8820.00 8680.00
Wholesaler to Retailer

COG to Wholesaler(a) 7840.00 7000.00

Add: Profit 784.00 700.00

Margin@10%
Total Value(b) 8624.00 7700.00
Add: VAT @ 12.5% 1078.00 -

Add: CGST @ 12% - 924.00

Add: SGST @ 12% - 924.00

 Invoice Value 9702.00 9548.00
Retailer to Consumer:

COG to Retailer 8,624.00 7700.00

(b)
Add: Profit Margin 862.40 770.00

Total Value(c) 9486.40 8470.00

Add: VAT @ 12.5% 1185.80 -

Add: CGST @ 12% - 1016.40

Add: SGST @ 12% - 1016.40

Total Price to the Final 10,672.20 10,502.80

consumer
Cost saving to - 169.40
consumer
% Cost Saving - 1.59%

Notes:

(i) Input tax credit available to wholesaler is Rs.980 and Rs.1,680 in case of without GST and with
GST respectively.

(ii) Likewise Input tax credit available to Retailer is Rs.1,078 and Rs.1,848 in case of without GST
and with GST respectively.

(iii) In case, VAT rate is also considered to be 12%, the saving to consumer would be1.15%
10. ADVANTAGE OF GST:

Benefits of GST:

(A) Make in India

(i) Will help to create a unified common national market for India, giving a boost to Foreign
investment and ―Make in India ―campaign;

(ii) Will prevent cascading of taxes as Input Tax Credit will be available across goods and
services at every stage of supply.

(iii) Harmonization of laws, procedures and rates of tax.

(iv) It will boost export and manufacturing activity, generate more employment and thus increase
GDP with gainful employment leading to substantive economic growth.

(v) Ultimately it will help in poverty eradication by generating more employment and more
financial resources.

(vi) More efficient neutralization of taxes especially for exports thereby making our products more
competitive in the international market and give boost to Indian Exports.

(vii) Improve the overall investment climate in the country which will naturally benefit the
development in thistles.

(i) Uniform SGST and IGST rates will reduce the incentive for evasion by eliminating rate
arbitrage between neighboring States and that between intra and inter-state sales.
(ii) Average tax burden on companies is likely to come down which is expected to reduce prices
and lower prices mean more consumption, which in turn means more production thereby helping in the
growth of the industries . This will create India as a ‖ Manufacturing hub‖.
(B) Ease of Doing Business

(i) Simpler tax regime with fewer exemptions.

(ii) Reductions in the multiplicity of taxes that are at present governing our indirect tax system
leading to simplification and uniformity.

(iii) Reduction in compliance costs - No multiple record keeping for a variety of taxes - so lesser
investment of resources and manpower in maintaining records.

(iv) Simplified and automated procedures for various processes such as registration, returns,
refunds, tax payments, etc.;.

(v) All interaction to be through the common GSTN portal- so less public interface between the
taxpayer and the tax administration.

(vi) Will improve environment of compliance as all returns to be filed online, input credits to be
verified online, encouraging more paper trail of transactions.

(vii) Common procedures for registration of taxpayers, refund of taxes, uniform formats of tax
return, common tax base, common system of classification of goods and services will lend greater
certainty to taxation system.

(viii) Timelines to be provided for important activities like obtaining registration, refunds, etc.

(ix) Electronic matching of input tax credits all-across India thus making the process more
transparent and accountable.

(C) Benefit to Consumers:

(i) Final price of goods is expected to be lower due to seamless flow of input tax credit between
the manufacturer, retailer and service supplier.

(ii) It is expected that a relatively large segment of small retailers will be either exempted from
tax or will suffer very low tax rates under a compounding scheme- purchases from such entities will cost
less for the consumers.
 (iii) Average tax burden on companies is likely to come down which is expected to reduce prices and
lower prices mean more consumption.

10.1 LIMITATIONS OF GST:

(i) The inherent weakness of primary source of data applies to this research studyonly.

(ii) The inadequate knowledge of the respondents about GST policies, procedures and methods
likely to affect the response of general public.
(iii) The samples and the data collection are based on the willingness and reactions of the
respondents.
(iv) The process of administration of GST. is an ongoing process and the inference and conclusions
based on collected information may not reflect the future.

(v) GST in India would impact negatively on the real estate market. It would add up to 8 percent to
the cost of new homes and reduce demand by about 12percent.

(vi) The aviation industry would be affected. Service taxes on airfares without GST six to nine
percent. With GST, this rate will surpass fifteen percent and effectively double the tax rate.

(vii) The GST Act has given the control of businesses to Central and State Governments with
businessmen binding by-laws. This has given rise to complexity for many businessmen across the nation.

(viii) As per GST, the seller requires registering in all the states that it does business in and it has
increased the complexity for the seller. The government should have created a provision for centralized
registration of State GST as this would have helped many sellers during the rollout.

(ix) The government has chosen a mid-year launch for GST and this will lead to problems in taxation
and reporting during the end of the financial year. Ideally, the government should have launched GST at
end of financial year as this would have avoided a lot of confusion during taxation and reporting.

GST has also had an impact on discount and reward programs as well. The product is being taxed on the

rates pre-discount whereas the products were earlier taxed at post discount prices. Most of the
companies
have also suspended reward programs for temporary basis because of complexities of GST.
11. CONCLUSION ANDSUGGESTIONS

As per my observation and study on GST shows that impact of GST on Indian economy has more
positive than negative .As per producer point of view , because of GST Indian product became more
comparative in the market which help to face competition and earn more profit .as per customer point of
view , GST reduced over all tax burden on goods which is currently estimate 25% to 30% which help them
to access goods at lower price.

Since GST is new in India so initially public facing certain issue to understand new law. Business man
and service provider news to appoint experts for smoothing business activity which will ultimately increase
cost. Business need to bring new software or update software as per new system.

Slowly and gradually all these issues are resolve and have more scope in future for growth .Gst will
grow up Indian economy, as per HSBS expected increase in GDP up to 0.80% and NCAER expect increase
in GDP up to 0.9% - 1.7%.

As people facing problem at initial stage stage understand new law and their provisions & technology.
So my suggestion there issues are, there should be various seminars and lecture need to conduct for general
awareness . Government introduce various technique and technology for registration and updation purpose
but while doing survey some some people stated that registration sites and software not working properly.
Hence government should look in to there points also so that implementation and application of GST go
smoothly in India.

"ONE NATION ONE TAX" Will provide benefits to me , to my family , to my city , to my state ,

to my nation and economy as hole .

 Appendix

Amalgamating : combine or unite to form one organization or structure

GST : goods and services tax
IJISSH : International Journal of Innovative Studies in Sociology and Humanities
IJSRM : International Journal of scientific research and management
IJRT : International Journal of Research InTechnology
OCED : The Organization for Economic Co-operation and Development
OCTROI, ENRTY TAX : These tax are applicable in Maharashtra and Gujarat and the
charges fluctuate as per the Government regulations. We tried, but were unable to confirm
the exact amount.
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