A project on

“IMPACT OF G.S.T. ON COMMON MAN”

A project submitted to
University of Mumbai for partial completion of the degree of
Bachelor’s in commerce (Accounting and Finance)
Under the faculty of commerce

By
GANGESH DUBEY
Under the guidance of
PROF. ANISH KALWANI
VEDANTA COLLEGE
(Vithalwadi Station Road,

Vithalwadi West, 421003)

March 2023
1
 A project on
“IMPACT OF G.S.T. ON COMMON MAN”
A project submitted to
University of Mumbai for partial completion of the degree of
Bachelor’s in commerce (Accounting and Finance)
Under the faculty of commerce

By
GANGESH DUBEY
Under the guidance of
PROF. ANISH KALWANI
VEDANTA COLLEGE
(Vithalwadi Station Road,

Vithalwadi West, 421003)

March 2023

2
3
 Certificate
This is to certify that Ms/Mr
_____________________________________has worked and duly
completed her/his Project Work for the degree of Bachelor in
Commerce (Banking and Insurance) under the Faculty of
Commerce in the subject of
________________________________________ and her/his
project is entitled,
“_____________________________________________________

Title of the Project _________” under my supervision.

I further certify that the entire work has been done by the learner
under my guidance and that no part of it has been submitted
previously for any Degree or Diploma of any University.
It is her/ his own work and facts reported by her/his personal
findings and investigations.

Seal of the
College

Name and Signature of Guiding Teacher

4
Date of submission:

Declaration by learner
I the undersigned Miss / Mr.
______________________________________Name of the
learner
declare that the work embodied in this project work titled
“________
_____________________________________________________
_______________”, Title of the Project forms my own
contribution to the research work carried out under the guidance of
________________________________ is a result of my own
research work and has Name of the guiding teacher not been
previously submitted to any other University for any other Degree/
Diploma to this or any other University.
Wherever reference has been made to previous works of others, it
has been clearly indicated as such and included in the bibliography.
I, hereby further declare that all information of this document has
been obtained and presented in accordance with academic rules
and ethical conduct.
Name and Signature of the learner

Certified by

5
Name and signature of the Guiding Teacher

INDEX
CHAPTER PARTICULARS PAGE
NO.
1 INTRODUCTION

2 REVIEW OF LITERATURE

3 RESEARCH AND
METHODOLOGY
4 DATA ANALYSIS &
INTERPRETATION
5 CONCLUSION

6 REFERENCE

6
INTRODUCTION

Socialism, democracy, and the republic are all characteristics of India.

Central and state governments are both a part of India's federal system.
In addition to helping the nation fulfill its growing development needs,
both governments share the primary tasks. Only taxation is used as the
primary source of funding. In reality, the tax is regarded as the
government's most significant source of income because it helps
promote economic growth and achieve socioeconomic goals.

A single comprehensive tax on all commodities and services consumed

in an economy is known as the "goods and services tax." Every stage of
the production-distribution chain is subject to GST, with any applicable
set-offs for the tax remitted at earlier stages. In essence, it is a final
consumption tax. GST is a tax on goods and services that is applicable at
each point of supply or provision, and in which the seller or service
provider may claim the input credit of tax he or she paid at the time of
the supply of goods or provision of services.

GST is a tax on goods and services that is applicable at every point of

supply or service provision, and in which the seller or service provider
may claim the input credit of tax he or she paid at the time of the supply
of goods or provision of services.

7
Every new law is introduced with the fundamental aim of correcting the
shortcomings of the existing law and streamlining the aspects of
enforcement and procedure. Concerning indirect taxes in India, there
was a double levy on the part of the Union and the Government of the
State. There were multiple registrations and other compliance under
various indirect tax laws. The GST was introduced to correct the defects
in existing indirect tax laws. It is fair to consider this unprecedented
action by the government when India switched to the GST on July 1,
2017. The GST has affected the majority of people who pay indirect
taxation. There has been a paradigm shift in the structure and how
indirect taxation works in India. The new system of GST has subsumed
most of the Central and State level indirect taxes. The new system of
GST has subsumed most of the Central and State level indirect taxes.

It has replaced multiple indirect taxes such as excise duty, service

tax, value-added tax, octroi, entry tax, and luxury tax. This indirect
taxation system has gone through multiple amendments since arriving
at the current juncture. However, it must be noted that GST does not
replace customs duty, which is still mandatory for imported goods
and services. Every kind of product and service attracts a different
tax rate under GST. For example, luxury or sin goods are classified to
attract a higher interest rate, whereas necessities have been included
in lower and nil rate slab rates.

8
ORIGIN

A German economist first proposed the Goods and Services Tax, also
known as the Value Added Tax (VAT) or Harmonized Sales Tax (HST),
in the 18th century. He envisioned a sales tax on items that
were collected on the final price charged to the consumer and did not
alter the cost of production or distribution. The quantity of transactions
is unimportant, and the tax is a set proportion of the total cost. In 1954,
France eventually enacted the tax.

By simply taxing the value added at each stage of production, value-

added taxes avoid the cascading effect of sales tax. Value-added taxes
are increasingly preferred over conventional sales taxes around the
world. Value-added taxes are generally applicable to all commercial
operations comprising the manufacture, sale, and provision of goods and
services. In every commercial transaction, the value added to items is
assessed and collected as VAT. According to this idea, taxes are paid to
the government based on each transaction's gross margin.

From an Indian perspective, it has been more than ten years since the
Kelkar task committee first suggested the GST in 2004. From its
inception in 2004 to its enactment and implementation in 2017, the GST

9
in India has experienced many ups and downs. The political
entanglements have obstructed the introduction of the GST.

TYPES OF GST

 With some exclusions, all transactions involving the supply of

goods and services for consideration are subject to the
destination-based GST tax.
 In India, there are three types of GST: Union Territory Goods
and Service Tax (UTGST), State Goods and Service Tax
(SGST), and Central Goods and Service Tax (CGST) which is
imposed and collected by the Central Government. On intra-
State supplies of taxable goods and/or services, Union Territories
without State Legislatures (UTGST)-levy and collect. (IGST) -
Integrated Goods and Service Tax is applied to interstate
supplies of taxable goods and/or services. All interstate supplies
are subject to IGST, which is a tax levied by the center and
roughly equal parts CGST, SGST, and UTGST.
10
 SALIENT FEATURES OF GST

1. Unlike the current idea of a tax on the manufacture, sale, or provision

of goods or services, the GST would be applicable to the supply of
goods or services. It would be a consumption tax with a destination
component.

2. It would be a dual GST, levied concurrently by the federal

government and each state on a single tax base. State GST refers to the
tax that will be imposed by the states and will be charged by the federal
government on interstate transfers of goods and services (SGST).

3. All items, excluding alcoholic beverages for human use and five
petroleum products (crude petroleum, gasoline, high diesel, natural gas,
and aircraft turbine fuel), would be subject to the GST.

4. GST would apply to tobacco and tobacco goods. The center also
performs its duties in relation to these goods.

5. The following taxes are replaced by the GST:

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(a) Central Excise Duty

(b) Exercise Duties (Medicinal and Toilet Preparations)

(c) Extra Exercise Duties (goods of Special Importance)

(d) Extra Excise taxes (Textiles and Textile Products)

(e) Extra Customs Taxes (e) (Commonly known as CVD)

(f) Special Extra Customs Duty (SAD)

(g) Service tax

6. The GST would include the state taxes listed below:

(a) State Value Added Tax (VAT),

(b) Central Sales Tax (CST),

(c)Luxury Tax (LT),

(d) Entrance Tax (ET) Instead of Octroi

(e) Entertainment (not levied by the local bodies)

(f) Advertising taxes

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(g) Purchase taxes

(h) Lottery, betting, and gambling taxes(I) In terms of the provision of

products and supplies, State Cesses and Surcharges.

7. On the exchange of goods and services between States, the Center

will levy and collect an Integrated GST (GST).

8. Taxpayers may claim a refund for taxes paid on inputs (input tax
credit). use the same for output tax payment. However, no input tax
credit for CGS shall be applied to the payment of SGST, and the
opposite is also true. It would be possible to pay IGST, CGST, and
SGST in that sequence using credit from IGST.

9. Exports are considered zero-rated supplies. No tax is due on items

exported, however, exporters may credit input tax related to the supply.

10. Input Tax Credit use in the previous way of setting off has been
restored under GST Regulations 88A as of Notification No. 16/2019,
dated March 29, 2019.

Rule 88A: Input Tax Credit Order of Usage

The integrated tax input tax credit must be used first to pay the
integrated tax, and any balance, if any, may then be applied in any order

13
to the payment of the central tax, the State tax, or the Union territory
tax, as applicable:

If the input tax credit for central tax, state tax, or union territory tax is
used to pay integrated tax or central tax, that is. State tax or Union
territory tax, as applicable, only upon the complete utilization of the
input tax credit provided on account of integrated tax.

In the statement above, "in any order" refers to the IGST input tax
credit's capacity to be offset against any head of tax duty (CGST,
UTGST, or STGST) in any order after being adjusted for IGST output
liability.

The second condition states that any input tax credit available due to
integrated tax must first be used in its entirety. Following that, only
credit available due to federal, state, or union territory taxes may be
used.

11. Accounts would be settled on a regular basis between the Center and
the State to ensure that the originating State transferred the credit of
SGST used for payment of IGST to the Centre and that the Center
transferred the IGST utilized for payment of SGST to the destination
State. Additionally, the Center would transfer the SGST share of the
IGST collected on B2C shipments to the destination State.

14
12. The availability of the Input Tax Credit (ITC) for taxes paid on any
supplies of products, services, or both that are utilized intended to be
used in the process of conducting business will provide it a broad base..

13. Several classes of people file returns electronically at various

deadlines. There are numerous tax payment options available to the
taxpayer, including internet banking, debit/credit cards, and Real Time
Gross Settlement (RTGS) NEFT transactions (RTGS).

14. When the entire value of supplies provided under a contract exceeds
2.50.000 rupees, certain parties, such as government agencies, local
governments, and departments, are required to withhold tax at the rate of
1% from the payment paid to the provider. The TDS provision has not
yet been notified.

15. Refund of tax must be requested within two years of the relevant
date by the taxpayer or by any other person who has suffered the
incidence of tax.

16. Electronic commerce operators are required to deduct "tax at source"

from payments made to suppliers who provide products or services
through their portals, at a rate that does not exceed 2% of the net value
of taxable supplies. TCS has not yet been notified of the provision.

17. Mechanism of self-assessment for registered persons' tax liabilities.

15
18. Registered persons will be the subject of an audit to ensure that the
Act's requirements are being followed.

19.In normal circumstances, the statute of limitations for initiating a

claim for short payment, non-payment of tax, or an incorrect refund is
three (3) years from the due date of filing the annual return or from the
date of the incorrect refund.

20. The statute of limitations for filing a claim for a short payment, non-
payment of tax, or erroneous refund, as well as the decision of that claim
in cases of fraud, suppression, or wilful misstatement, is five (5) years
from the due date of filing the annual return or from the date of the
erroneous refund.

21. Tax arrears may be collected in a number of ways, including by

seizing and selling the products, real estate, and other possessions of the
noncompliant taxpayer.

22. The Central Government will establish the Goods and Services Tax
Appellate Tribunal to hear appeals against decisions made by the
Appellate Authority or the Revisional Authority. States would adopt the
Tribunal-related provisions in their own SGST Acts.

23. The proposed legislation includes provisions for sanctions for

violations of its provisions.
16
NEED AND IMPORTANCE OF GST

1. The GST law is uniform throughout India, in contrast to former

indirect taxes like the VAT.

2. The "Made in India" campaign is bents from GST.

3. GST uses a continuous, connected chain to claim credit for earlier

Tax payments.

4. The GST assists in reducing tax evasion at all points along the supply
chain, from the manufacturer to the retailer.

5. The tax system is transparent and lays out the tax flow in a
straightforward manner.

6. GST increased State and Federal Government revenue.

7. If GST is resolved, Indian economic growth would pick up speed.

8. GST is based on the concept of value added.

9. The following are a few examples of things that make the need for
GST clear:

17
1. The tax structure will be simple: Now, customers are required to pay a
massive number of taxes. With the introduction of GST, there will only
be one tax to understand and pay. Accounting will become less
complicated for businesses, which will be less paperwork and time and
money savings.

2.Tax revenue will rise: A straightforward tax system will include more
people in the tax net, which will result in more tax revenues for the
government.

3. Competitive pricing: The GST will replace all other indirect taxes,
effectively lowering the amount of tax that consumers must pay.

4. Exports will be boosted: If the Indian market has competitive pricing,

more and more international businesses will try to enter it, which will
increase the number of exporters and help the Indian market.

5. The cascading effect of numerous taxes levied on sales, production,

and purchases would no longer exist thanks to the GST. Products reach
consumers at a far higher rate than they do during production, hence the
introduction of GST will result in a reduction in the tax burden by
creating a single tax.

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IMPACT OF GST ON THE COMMON MAN

The bulk of people in India is from the lower and middle classes, where
they either work in the service sector or rely on agriculture for their
living. "Roti, Kapda, and Makaan" are these groups of people's main
problems. Hence, the most crucial query is how the GST's introduction
will affect them. Clearly, the new Goods and Service Tax (GST) regime
raises many issues in the minds of the average person. Is there anything
new for them, or is it just the same material packaged differently? Will it
result in higher prices for them for products and services? Are there any
tax relief measures under the new tax laws?

When the costs of their necessities change, that is when an economy

actually has an effect on the common person or the general public. For
them, a healthy economy is one in which prices for frequently purchased
products and services decline. The public, on the other hand, becomes
dissatisfied with the changes made by the government when inflation is
higher. Consequently, it is crucial for public contentment to exist prior to
the implementation of any government program because, without it, the
policy will not be as successful as intended.

According to reports, the Goods and Service Tax (GST) is India's largest
tax reform. It aims to increase compliance, boost government revenue,
simplify the tax system by combining taxes at the central and local
levels, and create a level playing field for all producers, wholesalers,
19
service providers, and traders. The GST council has decided on the rates
for all the key goods and services categories under the various tax slabs
after much consideration, and it is anticipated to fill the gaps in the
current system and strengthen the Indian economy. the Indian
government will change five significant laws that affect the daily lives
of most Indians. The pricing changes affect LPG cylinders, new ATM
cash withdrawal fees, deposits and withdrawals at India Post Payments
Bank (IPPB), cash transactions, and ICICI bank services.

Following the implementation of GST, there is a single tax provision

throughout the supply chain where each person is able to utilize the tax
benefits of all the taxes that he has already paid, ultimately resulting in
lower pricing. Also, he learned the exact value of his items as well as the
amount of tax he had paid on them. As GST has stronger tax
administration capabilities, it is impossible to manipulate taxes.

When the costs of their necessities change, the general public feels the
effects of an economy. The economy is excellent for the general public
when prices for the daily goods and services that are consumed are
cheap; however, if the inflation rate is higher, the general public
becomes dissatisfied with the changes made by the government.

20
GST implementation has had an impact on customers in both positive
and negative ways. First and foremost, GST's beneficial effects is that,
in contrast to VAT, it has virtually eliminated the cascading effect of tax.
As a result, the end consumer was not burdened by the accumulation of
taxes under the GST because there was no tax on tax. Because the tax
was only assessed on the value added at every stage, it ultimately
decreased corporate expenses. Second, a uniform tax rate is set across
the nation under the GST. As a result, the cost of goods and services will
be the same across India. Finally, the GST has lowered the cost of a
variety of necessities since the majority of them are now tax-free or fall
under a lower tax bracket.

The implementation of GST has also had some detrimental

repercussions. First, the GST's implementation has raised the cost of
eating out, which is one of its negative effects. Second, the sellers began
to implement anti-profiteering procedures, preventing the consumers
from receiving the true benefits of the GST. So, the GST's benefits are
not being distributed to consumers. That is, when compared to the
previous tax system, the benefits of a reduced GST rate on a good or
service are not actually passed on to the consumer; instead, the seller
raises his profit margin to make up for the lower GST rate, which causes
the prices of goods to stay the same or occasionally even increase. In
addition, after the imposition of GST, the MRP of the commodities
remained unchanged. Consumers started paying more tax as soon as
21
GST went into effect. This was due to the fact that taxes were already
included in the MRP or maximum retail price. The MRP for stock items
was not altered when GST was implemented. In reality, it is impossible
to change the MRP of each shop's inventory. As a result, the GST was
calculated using the MRP's existing tax rate. Some goods saw a sharp
spike in price. As MRP is not changed, this trend is still present. In
actuality, the cost of commodities has only gone up, and inflation would
be blamed if the issue were raised. Not a single product had its MRP
decreased due to the introduction of the GST. Consumers were used as a
scapegoat to protect corporations.

22
Impact of GST on various sector

1. Household Sector
Food items are subject to a GST tax rate of 0–5%, hence this has
no immediate effect on food costs. With a higher GST rate of 3%
and no advantage from input tax credits, cosmetic services like
salon and beauty services are known to get more expensive. Due
to the Goods and Services Tax (GST) regime's implementation,
the price of everyday household items has increased because the
user, who is also the end user, cannot pass on the tax burden
further. 

2.Automobile Sector

Car Industry: With the addition of GST, some car prices saw a
sizable rate reduction, while others saw an increase in price. The
cost of several car models was updated by numerous firms. With
an additional cess ranging from 1% to 15%, the purchase of a car
will now incur a 28% GST rate. Less than 1,500 cc diesel engine
vehicles will be subject to a 3% cess. Tiny gasoline engines
under 1200 cc will be subject to a 1% cess. Large automobiles
and SUVs with a length of above 4 metres will be subject to a
28% GST as well as a 15% cess. A 12% GST will be applied to
electric vehicles, and a cess won't be charged. Vehicles utilized

23
 as ambulances, three-wheelers, and other similar vehicles are
exempt from cess.

3.Footwear and apparel: Since the implementation of GST, the cost

of footwear and apparel has fallen. Today, there will be a 5% GST
fee applied to all clothing and manufactured goods priced below Rs
1,000 per piece. Whereas items such as clothing and made-up items
that cost more than Rs. 1,000 per piece will be subject to a 12% GST
rate.

4.Taxi/Cab Services: If a consumer uses a taxi service for a ride that

costs 100 rupees, the tax will vary significantly. Formerly, the
service tax was 6%, but under the GST, it is now 5%, giving the
customer a small savings.

5.Air Travel: If a consumer purchases a domestic economy class

airfare for INR 1,000 in India, the tax rate varies in both
circumstances. Prior to the implementation of the GST, the domestic
economy class was subject to a service tax of about 6%. As a result,
there will be a small financial benefit. Speaking of the business
class, the GST tax rate was raised from 9% to 12%, resulting in a
pricey tax case for the business class.

6.Jewelry: Following the implementation of the GST, the tax rate

was raised by 1% to 3%. Due to the 3% GST on gold plus the 5%

24
 making charges that the buyer must now pay, investing in gold has
become more expensive.

7.Mobile Bills: The GST has made using a mobile phone more
expensive. Due to a 3% increase in the tax rate (from 15% to 18%),
both pre-paid and post-paid users now have to pay higher bills.

8. Restaurants: If a consumer orders a meal for INR 1000, the

restaurant charge will be significantly reduced. The VAT rate in the
previous tax system was 12.5%, and the service tax rate was 6%, for
a total of about 18.5%. While under the GST, all stand-alone
restaurants (whether AC or Non AC) were taxed at 5% without the
benefit of ITC, which resulted in a decrease in the restaurant bill's
cost.

Overview of Current Changes in GST Law

The brief overview of some important changes which have recently been
implemented in GST laws, is given below;

 On 17 September 2021, it was decided in GST council meeting

that E-commerce operator providing restaurant services will be
liable to charge, collect and pay GST on its services i.e. 1st
January 2022. According to this notification 17/2021 Issued on
18 November 2021, E-commerce operator providing restaurant
25
 services had become liable to collect and pay GST @5% on
supply of services i.e. 1st January 2022(Circular No. 167 / 23
/2021 - GST, 2021).
 As section 16 of CGST act provides the conditions and
restrictions of availing input tax credits in electronic credit
ledger. A new amendment was made via section 109 of Finance
act 2021 by issuing notification of 39/2021 to add a new clause
in section 16 of CGST act that provides the additional condition
of availing input tax credit based on GSTR-2A and GSTR-2B i.e.
ITC on invoice and debit note can be availed only when the
suppliers furnish details of such invoice and debit note in his
Outward return GSTR-1 and also communicate the same detail
to recipient. Consequently, relevance of 5% limit mentioned in
Rule 36 (4) had removed, as recipient would not be able to avail
ITC until same is not coming in his input return GSTR-2A and
GSTR-2B (Availability of Input Tax Credit (ITC) for FY 2020-
21, 2021).
 Rule 59 of CGST Rules, 2017 had amended by issuing
notification 35/2021 which provides that i.e. 1st September
2021, if any registered person failed to file his Form GSTR-3B
for preceding two months/tax period then he shall not be allowed
to file monthly/quarterly Form GSTR-1(New Functionalities

26
 Made Available for Taxpayers on GST Portal during July
September, 2021, 2021).
 Rule 10B of CGST Rules, 2017 implemented on 1st January by
notification38/2021 which had made mandatory for registered
person to undergo for Aadhaar authentication(Mandatory
Aadhaar Authentication for Registered Person, 2021)for
Following purposes:
1. Filing of application for revocation of cancellation of
registration in Form GST REG-21 under Rule 23 of CGST
Rules, 2017
2. Filing of refund application in Form RFD-01 under Rule 89 of
CGST Rules, 2017
3. Refund of IGST paid on goods exported out of India under Rule
96 of CGST Rules, 2017.
 The following amendments are made in Sec. 129 of CGST Act,
2017(Kumar, 2022)

Section 129 (1), 200% penalty is require to pay to release the goods
which are seized for violation of E-way bill provisions.

1. Section 129 (2), goods so seized shall be released on provisional

basis, upon execution of bond and payment of security or on
payment of tax, interest and penalty amount as case may be.

27
 2. Section 129 (3), time limit for issuance of notice and passing of
order is specified for 7 days
3. .Section 129 (4), No penalty shall be determined without giving
the opportunity to hear.
4. Section 116 of Finance act 2021 specified that no appeal would
be file against the order issued under section 129 (3), unless 25%
of penalty has been paid by appellant (Kumar 2022).

Changes has made for tax rates on footwear by issuing notification

21/2021-CTR and specified thatw.e.f 1st January 2022, tax rates on
footwear and textile industries will be 12% instead of 5%(Clear Tax,
2022).

 Works contract services for specified contracts provided to

government authority or government entity have been excluded

From reduced tax rates category 5% or 12% by issuing notification

15/2021-CTR. Those work contract services will be taxable at 18%
w.e.f. 1st January 2022 by issuing notification 11/2017(Clear Tax,
2022).

 The ‘Search HSN facility’ has rev…

 In terms of Notification No 19/2021-CT, dated 1st June,
2021(New Functionalities Made Available for Taxpayers on GST
Portal during July-September, 2021, 2021)., late fee for delayed
filing of returns in Form GSTR-3B from tax period June, 2021,
28
 (monthly/quarterly) onwards, has now been capped for following
class of registered persons to the amounts mentioned as below

• Registered persons whose total amount of Central Tax & State/UT

tax payable in the said return is Nil: Rs500

• Registered persons having an aggregate turnover of up to rupees

1.5 crores in the preceding financial year, other than those covered
under S. No. 1: Rs2000

• Taxpayers having an aggregate turnover of more than rupees 1.5

crores and up to rupees 5 crores in the preceding fi…

Penalties and tax rules will complicate the compliance of tax rules
for taxpayers which will ultimately negative influence the tax revenue.
Indian Government need to improve the GST’s implementation in India
and should try to make taxpayers friendly

GST rules.

29
POSITIVE IMPACT OF GST ON COMMON MAN

 A number of indirect taxes, including VAT, CST, Service Tax,

CAD, SAD, and Excise, were eliminated when the GST was
introduced as a unified tax structure.
 A tax system that is simpler than the previous tax system. But, it
was not as easy as it first appeared to be. See the disadvantages
below for additional information.
 The Goods and Services Tax, or GST, eliminates the tax-on-tax
cascading effect.
 The manufacturing costs will be lower as a result of the
manufacturing sector bearing fewer taxes. Thus, it is expected
that consumer goods prices will decrease.
 Certain things, including vehicles and FMCG, will become less
expensive as costs are decreased.
 This will lessen the strain on the average person. To purchase the
same goods that were previously expensive, you will need to
spend less money.
 Because of the reduced pricing, there will be more demand for
and consumption of items.
 Increasing supply will result from increased demand. So, this
will ultimately result in an increase in products production.

30
 Long-term work prospects will increase as a result of the
increasing production. Nevertheless, this is only possible if
buyers actually receive cheaper items.
 It will stop the spread of illicit currency. This is only possible if
the "kacha bill" system, which is typically used by traders and
shopkeepers, is checked.
 Less corruption will result from a unified tax system, which will
indirectly benefit the general public.
 Most importantly, economists anticipate that the GST will have a
good long-term effect on the Indian economy.

Yet, this is only feasible if the GST's true benefits are distributed to
the final consumers. The seller's profit margin, among other things,
influences the final price of the items. The final cost of things is not
only based on GST. To safeguard the interests of consumers, the
GST Act includes a provision against profiteering.

31
NEGATIVE IMPACT OF GST ON COMMON MAN

 The burden of compliance is on you to deposit GST and submit

returns on time. Filing a GST return is more difficult than it first
appears. To handle it, you must hire a tax expert. Yet, the
government has been making efforts to keep the filing of returns
straightforward. Yet, it will still take time for the whole process
to become more seamless.

 Service tax rate @ 15% is presently charged on the services. So,

if GST is introduced at a higher rate which is likely to be seen in
the near future, the cost of services will rise. GST shall be
charged at @18% on maximum services and shall reach up to
28% for a few services. In simple words, all the services like
telecom, banking, airline, etc. will become more expensive.
 Increased cost of services means, an add-on to your monthly
expenses.
 You will have to reschedule your budgets to bear the additional
services cost.
 Businessmen and service providers are still learning about the
new laws. This will increase reliance on tax experts and
professionals and further add to your business expenses.

32
 Being a new tax, it will take some time for people to understand
it completely. Its actual implications can be seen after a certain
period of time.
 It is easier said than done. There are always some
complications attached. It is a consumption-based tax, so in the
case of services, the place where the service is provided needs to
be determined.
 Proper invoicing and accounting need to be done to ensure better
compliance. However, Accounting GST Software being
developed in this regard by various companies.
 If the actual benefit is not passed to the consumer and the seller
increases his profit margin, the prices of goods can also see a
rising trend.
 An increase in inflation might be seen initially that may come
down gradually.
 A strict check on profiteering activities will have to be done so
that the final consumer can enjoy the real benefits of GST.
 Although, a large number of officers have been trained and a
systematic IT software developed for the successful
implementation of GST. But, it will take some time for the
people including the manufacturers, the wholesalers, the
retailers, or the final consumers to understand the whole process
and apply it correctly.
33
 Since it is a new tax, it will take some time before the public
fully comprehends it. It takes some time before its true effects
become apparent.
 It is simpler to say than to do. There are usually certain issues
that come up. It is a consumption-based tax, hence in the case of
services, the location of the service must be established. To
guarantee better compliance, proper billing and accounting
procedures must be followed. Nonetheless, a number of
businesses are creating GST Accounting Software in this area.
 The cost of things may also trend upward if the vendor improves
his profit margin without passing on any real benefits to the
consumer.
 The inflation rate may initially surge but then gradually decline.
 So that the final consumer can experience the true benefits of
GST, stringent regulation of profit-making activities would need
to be implemented.
 Nevertheless, a sizable number of officers have received training
and organized IT software has been created for the GST
successful implementation. However, it will take some time for
everyone to comprehend the entire process and use it
appropriately, including manufacturers, distributors, retailers,
and final consumers.

34
LITERATURE REVIEW

The Mauryan dynasty's rule in India is supported by Kautilya's

Arthashastra, which documents the history of indirect taxes in that
country. Agriculture-related goods were used as a means of tax
collection throughout that time. These collections were typically formed
to advance a state or achieve a certain goal. Taxes called as "Lagaan"
were also levied to cover unforeseen events like famine, food, war, etc.
Once more, over time, the structure and complexity of the tax system
have grown. During the time of British rule, raw materials were mostly
exported from India and later imported as finished goods and
consumables.

In order to have a considerable advantage through value addition, the

British authorities at the time used to oppose manufacturing any finished
items in India. The Indian market was therefore overrun by British
goods. India-made goods were considerably less expensive in
comparison to British imports. The British then considered levying
tariffs on goods produced in India. Excise duty, which was levied on
items like salt, sugar, and motor spirit at the start of the 20th century,
marks the beginning of the modern era of indirect taxation. Following
then, the excise duty base gradually increased.

The Central Excise Act was created in 1944, and until 1969, it
underwent incremental alteration year after year. The Bhoothalingam
35
Committee had suggested the implementation of general excise tax in
India at the beginning of 1960, with a levy of 10% duty on all
commodities manufactured in India. But, the government rejected the
suggestion. The Bombay Tobacco (Amendment) Act, 1938, which went
into force on March 24, 1938, was the first law to impose a charge on
tobacco sales within a very small number of urban and suburban
districts in Mumbai (then known as Bombay).

After that, more indirect taxes were introduced to the taxation system at
both the state and federal levels, and prior to the implementation of the
Goods and Services Tax, India had about 20 indirect taxes (GST).

 This essay will focus on Dr. R. Vasanthagopal's assessment of

the GST's potential benefits for the economy, housing,
employment, poverty reduction, manufacturing industry, EXIM
trade, GDP, and other development areas including agriculture
and manufacturing. Recognizing several beneficial effects of the
mentioned area, he comes to the conclusion that the GST would
be a significant improvement to the indirect taxation system and
would also give India's economic change a new impetus,
provided that the GST is neutral and rationally designed, that
competing interests of various stakeholders are balanced, and
that there is full political support for a fundamental tax reform
that includes a constitutional amendment.

36
 Dr. Barnamali Nath researched the GST concept and the
timeframe for its introduction in India on February 19, 2017, to
learn more about its advantages and potential effects on the
Indian economy. According to the conclusions he reached from
his research, the GST will lessen the cascading effect of the
current indirect taxation system, which will benefit producers
and consumers by absorbing a number of indirect taxes. He
continued by saying that the introduction of the GST would
make it simple for manufacturers, wholesalers, and retailers to
recoup input taxes in the form of tax credits. The same adoption
would also result in commercial benefits, more employment
opportunities, and ultimately economic growth that would raise
the nation's GDP.
 In her article "An Overview of the Goods and Services Tax"
from July 11, 2017, Ritu Bala discusses GST rules that have a
significant impact on the industry and offers a perceptive
viewpoint on the matter. GST has not yet gone into effect, but it
will change once it does. Also, even while answers to a number
of pressing questions affecting the business are still pending, the
benefit to the economy is indisputable.

37
 Anushuya and Narwal (2014) conducted a study on the
"Application of CGE Modals In GST" and came to the
conclusion that while both GST and CGE are well-liked globally,
GST is a strong idea in the area of indirect taxes.
 The study "Role of Goods and Services Tax in the Growth of
Indian Economy" by Chourasia et al. (2016) came to the
conclusion that GST will be beneficial for the growth of the
Indian economy generally and that it will also help to increase
the GDP of the nation by more than 2%.
 After researching "Goods and Service Tax - A Way Forward,"
Kumar (2014) came to the conclusion that various indirect tax
systems in India will be eliminated after the GST was
implemented, leaving only the GST, which is supposed to
promote fair taxation.
 According to a study by Pinki et al. (2014) titled "Goods and
Service Tax Panacea For Indirect Tax System in India," the new
NDA government in India is supportive of the implementation of
GST and believes that it will ultimately be advantageous for the
federal government, state governments, and consumers if it is
supported by a robust IT infrastructure.
 During their 2015 study "GST in India: A Major Tax Reform,"
Sehrawat and Dhanda came to the conclusion that more time is

38
 needed to implement GST because of the country's economy's
sluggish climate.
 In their study "Goods and Service Tax Reforms and
Intergovernmental Consideration in India," published in 20093,
Ehtisham Ahmed and Satya Poddar determined that the
introduction of the GST will result in a more straightforward and
transparent tax structure and boost India's economic production
and productivity. Yet, the GST's benefits heavily depend on its
thoughtful design.
 Dr. R. Vasanth Gopal (2011) 2 conducted a study titled "GST in
India: A Huge Leap in the Indirect Taxes System" and came to
the conclusion that replacing India's convoluted indirect tax
system with a smooth GST would be beneficial for the country's
developing economy. If GST is a success, more than 130
countries will adopt it as a global standard, and Asia will adopt it
as its preferred indirect tax system.
 According to Agogo Mawuli's study "Goods and Service Tax-An
Assessment," published in May 20141, the GST is bad for low-
income countries and does not promote broad-based growth in
underdeveloped nations. In order to promote growth, the GST
rate in these countries should be less than 10%. In their July
20147 study, "Goods and Service Tax- Panacea For Indirect Tax
System in India," Pinki, Supriya Kamma, and RichaVerma found

39
 that the new NDA government in India is supportive of the
implementation of GST and that, if it is supported by a robust IT
infrastructure, it will ultimately be advantageous for the central
government, state governments, and consumers.
 In their study "GST IN INDIA: A KEY TAX REFORM"
published in December 2015, Monika Sehrawat and Upasana
Dhanda came to the conclusion that GST will provide India a
top-notch tax system by giving the manufacturing and service
sectors varied treatment. But everything will depend on how well
it is planned and when it is put into action.
 In their study "Effect of GST on Indian Economy," Dr. P.
Vijayaraghavan and Mr. Muhammad Unais (April 2017) came to
the conclusion that the introduction of GST will lower the tax
burden on manufacturers and hence promote greater production.
The method will boost India's exports and the nation's overall
GNP. Avoiding the cascade effect allows producers to work at
their highest efficiency and slows expansion.
 According to the Finance Minister (2010), the GST will benefit
the federal government, the states, manufacturers, industrialists,
and the general public in addition to the country as a whole
because it will improve GDP (gross domestic product) growth
and tax collections.

40
 According to the IMF (2012), the GST design under
consideration is fairly complicated and has a dual administration
system in which a single transaction is subject to separate
taxation by the taxing authorities of the Center and the States.
 The Center would need to cooperate with 30 states, according to
Thomas Richardson (2012), a report author who wrote on this
topic. Because state tax officials lacked expertise in taxing
services, it would also be difficult administratively, according to
Richardson.
 According to Girish Vanvari (2012), the Budget lays out a clear
roadmap for the implementation of the GST and makes an honest
effort to deal with illicit money.
 In his paper, Dr. Mohd. Komlunabi & Vivek (2017) noted that
the GST is anticipated to boost production and efficiency while
transforming India into a common market. The overall reduction
in the tax burden on goods and services would be the biggest
benefit.
 In his research report, Jai Prakash (2014) noted that the GST at
the federal and state levels is anticipated to provide additional
assistance to business, commerce, agriculture, and consumers
through a more thorough and expansive application of input tax
set off and service tax set off. combining numerous taxes into
one and gradually eliminating the CST.
41
 According to Supriya Komma and Richa Verma (2014), the new
NDA administration in India is supportive of the implementation
of the GST and believes that it will be advantageous for the
federal government, state governments, and consumers in the
long term if it is supported by a robust IT infrastructure.
 In his research, Kaur, Harjinder (2018) found that the general
public is aware of, understands, and is knowledgeable about the
GST. The results show that the degree of GST awareness has not
yet improved to a suitable level.
 P. Gurusamy (2018) talked about what people actually
understand about the GST. It has been discovered that the
general public has not stated that the implementation of GST
won't have an impact on the products' present prices.
 Consumers are happy that the goods and services tax will lessen
tax evasion in the nation and boost the openness of the tax
system, according to Anshu Ahuja's (2017) research.
 According to research by R. Karthick et al. (2017), consumers
believe that the tax rates on goods used on a daily basis are high.
 According to S. Murugaiyan et al. (2017), the general public is
essentially ignorant of the GST concepts. According to Ahmad et
al. (2016), the impact of price inflation and a lack of knowledge
about the products or services that are exempt from the GST are

42
 to blame for customers' unfavourable perceptions of the
introduction of the GST.
 According to Ali, Mohammad et al. (2016), the GST system is
misunderstood and confusing by various populations, who have
unfavourable opinions of it.
 In his research, Shafie, Mohammed Zabri (2016) revealed that
customers in Batu Pahat have a moderate level of understanding
of the GST.
 Urif, Hafizan Binti (2016), this study determines employees'
attitudes toward GST in OUM, eight attitudes identified as a
supportive attitudes towards GST in OUM. While Six attitudes
identified as not supportive attitude towards GST.
 Iza, Nor et al. (2015), in this paper is to investigate that majority
of the students disagree with the methods taken to implement the
GST.
 Noormahayu (2015), In this study, a number of measurable
variables related to tax compliance, tax knowledge, and tax
morale were chosen. The relationship between taxpayers'
awareness of GST and their tax knowledge, compliance, and
morale was examined using multiple regression analysis. The
findings showed that all three independent variables had a
significant impact on public awareness of goods and services.

43
 Milandeep et al. (2016) in their research study has examined the
impact of GST and studied the gap between the indirect tax
regime in the pre and post GST era. They have expressed the
views that GST is an attractive method to overcome the
deformations of multiple taxes and will play a dynamic role in
the growth and development of the Indian economy.
 Hetal (2017) has discussed the positive as well as negative
aspects of GST and stated that GST will bring in more
competitiveness in the Indian market and develop a level playing
field between large and small enterprises.
 There are other studies (Shakir et al, 2017; Minakshi, 2016;
Sapna & Alumna, 2017) that found that GST will lead to
economic growth and development and will be beneficial to each
and every stakeholder in the economy.
 Amanuddin, Deviga et al. (2016) in their study have analyzed the
impact of GST on the Small and Medium Enterprises in Johar .
 Murugaiyan, Jeyanthi and Siddharth (2017) gave an overview
about the new GST Bill in India. The study also investigated
level of awareness in the public about GST and provided some
 suggestions based on the findings. The study was conducted on
only 40 respondents, out of which almost 80% did not have any
idea about the proposed tax rates in GST, while 60% disagreed
that GST would reduce the tax burden and only 32.5% believed
44
 that the prices of goods would reduce after implementing GST.
The study suggested that the government should increase
awareness about GST among illiterate people, women and
business people via short films.
 Dani (2016) tried to understand how the proposed GST regime
might hamper the growth and development of the country. The
study showed that the dual GST in India would lead to political
as well as economic issues. The study also highlighted that the
GST rates are also much higher than the pre GST tax rates.
Finally, the study opined that the GST structure is likely to
succeed only if the country has a strong IT structure, and India
being a budding state as far as internet connectivity is
concerned, it is unlikely to achieve much success. The study
concludes that GST will be able to simplify the existing indirect
tax regime only if there is a clear consensus over issues such as
 Threshold limit, revenue rate and inclusion of items such as
petroleum products, electricity, liquor and real estate in the GST
structure.
 Ahmad, Ismail and Halim (2016) carried out a study about the
level of awareness and confusion among taxpayers with regard
to the GST system and their perception about it in
Malaysia. The study collected primary data through
questionnaire from around 256 respondents who were civil

45
 servants in the area of Kuala Kangsar, Perak. The results showed
that the level of awareness was moderate and the majority of the
respondents had a negative perceptions about GST. The
statistical technique used was ANOVA.
 Gupta (2014) studied the concept of GST and examined the
shortcomings of the pre-GST taxation system to understand how
GST would work in India. The study further examined the
benefits of GST over the previous taxation system in India. The
study used the secondary data collected from various books,
journals, government reports, and publications, and concluded
that the implementation of the GST would lead to many
commercial benefits that could not be achieved by the VAT
system and, thus, would increase the pace of economic
development.
 Joseph and Kanakavalli (2017) conducted a study on the socio-
economic background of consumers to understand the level of
awareness about GST and its major applicable rates among
consumers. The study further provided consolidated suggestions
with regard to GST put forward by consumers. The study used
both primary and secondary data. Primary data was collected
through a survey among 50 respondents via questionnaire and
the secondary data was collected from the Internet to understand
the benefits of GST. The study concluded that 94% of the

46
 respondents were aware of GST implementation and only 40.4%
were aware of the various categories of rates applicable under
GST.
 Kour, Chaudhary, Singh and Kaur (2016) examined the impact
that GST would have after its implementation. The study showed
the gaps between the pre-GST indirect taxes and GST and
highlighted the possible challenges that GST would face after its
implementations. The study concluded that GST would reduce
the present tax burden and there would be no distinction between
imported and Indian goods as both would be taxed at the same
rate. GST would thus play a dynamic role in the growth and
development of our country.
 Dr. K. Chalapathi Rao 2018 conducted a study on Goods and
Services Impact on Indian Economy and Common Man.
The study was conducted to analyze of GST on Indian Economy
and Common Man.
 G.Jaganathan conducted a research on Impact of GST in India of
Common Man to recognize the concept of GST ,study the impact
of GST on Common Man and evalute the challenges of GST.
 In 2017 a research paper was held by Shreya Research Scholar
Department of Sociology. It was conducted to understand the
concept of GST and kind of GST implementation and to identify
the benefits of GST. The research was based on secondary data.

47
 CHAPTER

RESEARCH AND METHODOLOGY

OBJECTIVE OF STUDY

 To furnish the information of Goods and Services Tax to the

Common Man.
 To find out the benefits of GST the for Common Man.
 To Study the impact of GST on a budget of the Common Man.
 To find out what are challenges in GST for Common man.
 To study the Current scenario of impact of GST on common
man.

HYPOTHESIS

H0: There are no benefits of GST for common man

H1: There are benefits of GST for common man

H0: There is no impact of GST on common man of current

scenario
H1: There is a huge impact of GST on common man of current
scenario

48
 H0: Household budget of a common man does not get affected
due to GST
H1: Household budget of a common man gets affected due to
GST

SCOPE OF STUDY

To comprehend the GST concept and its execution, the study's scope has
been expanded. This study is based on primary sources of information
obtained from respondents directly through a questionnaire and aims to
examine the situation with regard to goods and service tax in the Thane-
Badlapur zone the inhabitants of the Thane-Badlapur region who are
aware of GST.

LIMITATION OF STUDY

The following are the study's principal limitations:

1. Due to time constraints, no primary data collection was done for

this study. 2.
2. The impact of GST on the average person was underlined in the
current research.
3. The research goes beyond time series.

49
Research Methodology

The current study is descriptive in nature and is centered on the local

populace in India's Thane – Badlapur region.

Sampling Process and Sampling Unit: The research was done in Thane -
Badlapur zone. The general populace of various age groups and
vocations was used as the study's sampling unit.

Using the random sampling technique, a sample was taken.

The sample size for the survey, a total of 120 respondents were taken
into account.

Data Gathering both primary and secondary data sources were used to
create the study. With the use of a well-structured questionnaire as a
research tool, primary data were gathered by survey.

50
DATA ANALYSIS AND INTREPRETATION

Options Responses Percentage

Strongly Agree
Agree
Neutral
Strongly Disagree
Disagree

Options Responses Percentage

Strongly Agree
Agree
Neutral
Strongly
Disagree

51
Disagree
Total

52
Options Responses Percentage
Strongly Agree 25 14.1%
Agree 47 27.2%
Neutral 6 51.1%
Strongly Disagree 13 1.1%

53
Disagree 1 6.5%
Total 92 100%

Options Responses Percentage

Strongly Agree 14 15.2%
Agree 33 35.9%
Neutral 29 31.5%
Strongly Disagree 1 1.1%
Disagree 15 16.3%
Total 92 100%

54
Options Responses Percentage
Strongly Agree 14 12%
Agree 33 39.9%
Neutral 29 25%
Strongly Disagree 1 5.4%
Disagree 15 18.5%
Optio
Total 92 100%
Stron
Agree
Neutr
Stron
Disag
Total

55
Options Responses Percentage
Strongly Agree 16 17.4%
Agree 51 55.4%
Neutral 18 19.6%
Strongly Disagree 1 1.1%
Disagree 6 6.5%
Total 92 100%
Options Responses Percentage
Strongly Agree 6 6.5%
Agree 43 46.7%
Neutral 23 25%
Strongly Disagree 4 56 4.3%
Disagree 16 17.4%
Total 92 100%
Options Responses Percentage
Strongly Agree 7 7.6%
Agree 47 51.1%
Neutral 28 30.4%
Strongly Disagree 1 1.1%
57
Disagree 9 9.8%
Total 92 100%
Options Responses Percentage
Strongly Agree 5 5.4%
Agree 37 40.2%
Neutral 35 38%
Strongly Disagree 1 1.1%
Disagree 14 15.2%
Total 92 100%

58
Options Responses Percentage
Strongly Agree 12 13%
Agree 44 47.8%
Neutral 26 28.3%
Strongly Disagree 2 2.2%
Disagree 8 8.7%
Total 92 100%

59
Options Responses Percentage
Black Money has 33 35.9%
Reduced
Corruption has 27 29.3%
Reduced
High Price Cost 27 29.3%
Non of the above 5 5.4%
Total 92 100%

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 A project on
“A STUDY ON INTRODUCTION OF AN INCUBATION CENTRE IN
AN HEI AS A TOOL OF PROMOTING ENTREPRENEURSHIP”

A project submitted to

97
University of Mumbai for partial completion of the degree of

Bachelor’s in commerce (Accounting and Finance)

Under the faculty of commerce

By

GANGESH DUBEY

Under the guidance of

PROF. ANISH KALWANI

VEDANTA COLLEGE

(Vithalwadi Station Road,

Vithalwadi West, 421003)

March 2023

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