PROJECT REPORT

(Submitted for the degree of B.Com Honours in Accounting under the University of Calcutta)

GST MODEL IN INDIA AND ITS IMPACT ON CONSUMERS

SUBMITTED BY

Name of the Candidate:- Sakshi Khandelwal

Registration No:- 145-1211-0509-20
College Roll no:-552.

Supervised by:-

Prof. Md.Shahjahan

MONTH AND YEAR OF SUBMISSION:-APRIL-2023

1
 GOENKA COLLEGE OF COMMERCE AND BUSINESS ADMINISTRATION

CERTIFICATE

I hear by certify that Mr. /Ms.

of S.K Somaiya college of arts science and commerce of B.COM has completed theallocated
project onGST Model in INDIA and its impact on consumer’s in the academic year 2022-
23, the information submitted is true and original to the best of my knowledge

PLACE :- SIGNATURE :-
DATE:- NAME:-
DESIGNATION:-

2
DECLARATION

I the undersigned Ms. SAKSHI KHANDELWAL here by, declare that the work embodied
in this project work titled “GST Model in INDIA and its impact on consumer’s” forms my
own contribution to the research work carried out under the guidance of Prof Md
Shahjahan.

Is a result of my own research work and has 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, here by further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.

Signature:-
NAME:-Sakshi Khandelwal
ADDRESS:-Girish Park,kolkata
REGN NO:-145-211-0509-20

Date:

3
 ACKNOWLEDGEMENT

On the successful completion of my project “GST Model in INDIA and its impact on
consumer’s”, I take the opportunity to express my deep sense towards all those people
without whose guidance, inspiration and timely help this project would have never seen the
light of the say.

First of all I would like to thanks “The UNIVERSITY OF CALCUTTA” for including
such kind of project in the curriculum.

I find great pleasure in expressing my deepest sense of gratitude towards my college

GOENKA COLLEGE of COMMERCE AND BUSINESS ADMINISTRATION ” .

I am also thankful to our B.COM – Coordinator “Prof. Md Shahjahan”, for her continuous
and valuable support, who made me realizes that each of us has the potential to work
independently and gave us her valuable suggestions and support whenever required and
ensured that we could do the best in the Project.
Last but not the least my parents and friends who encouraged and supported me for
completion of this project and their blessings.

4
 INDEX

SR. NO. PARTICULARS PAGE NO.

1 INTRODUCTION 06-10

2 OBJECTIVE OF THE STUDY 11-15

3 SCOPE OF THE STUDY 16

5 LITERATURE REVIEW 17

6 RESEARCH METHODOLOGY 18-21

7 ANALYSIS AND INTERPRETATION 32-51

8 FINDING , CONCLUSION AND SUGGESTIONS 52-56

9 BIBLIOGRAPHY 57

5
 INTRODUCTION

1.1 INTRODUCTION TO THE STUDY

Goods and Service Tax or GST as it is known is all set to be a game changer for the Indian Economy Taxation
system. GST evolved an all India One Nation One Tax regime. It has now been more than a decade since the
idea of national Goods and Services Tax (GST) was mooted by Kelkar Task Force in 2004. The Task Force
strongly recommended fully integrated ‘GST’ on national basis.

The Union Finance Minister Shri P. Chidambaram, while presenting the Central Budget (2006-2007),
announced for the first time a proposal to introduce a national level GST by April 1, 2010. However, GST
missed several deadlines and continued to be surrounded by clouds of uncertainty. Since now, the former
finance minister of India Arun Jaitley in his budget speech of 2015 has announced time and again that the tax
will be introduced on 1 April 2016. In India, there are different indirect taxes applied on goods and services by
central and state government. GST is intended to include all these taxes into one tax with seamless Input Tax
Credit and charged on both goods and services. Thus, excise duty, special additional duty, service tax, VAT to
name a few will get repealed and will be added into GST. For this, GST will have 3 parts CGST, SGST and
IGST. The central taxes like excise duty will be subsumed into CGST and state taxes like VAT into SGST. For
the introduction of GST in the above form, the Government needs to get the Constitution Amendment Bill
passed so that the proposed objective of subsuming all taxes and allowing states to tax subjects in Union list and
vice versa is achieved. Without these powers, it is not legally possible to move towards GST. However, the Lok
Sabha passed the Bill on 6th May 2015 and Rajya Sabha on 3rd August 2016. Subsequent to ratification of the
Bill by more than 50% of the States, Constitution (122nd Amendment) Bill, 2014 received the assent of the
President on 8thSeptember, 2016 and became Constitution (101st Amendment) Act, 2016, which paved the way
for introduction of GST in India.

In the following year, on 27th March 2017, the Central GST legislations - Central Goods and Services Tax Bill,
2017, Integrated Goods and Services Tax Bill, 2017, Union Territory Goods and Services Tax Bill, 2017 and
Goods and Services Tax (Compensation to States) Bill, 2017 were introduced in Lok Sabha. Lok Sabha passed
these bills on 29th March 2017 and with the receipt of the President’s assent on 12th April 2017, the Bills were
enacted. The enactment of the Central Acts is being followed by the enactment of the State GST laws by various
State Legislatures. Telangana, Rajasthan, Chhattisgarh, Punjab, Goa and Bihar are among the first ones to pass
their respective State GST laws.

Government is endeavouring to roll out GST by 1st July 2017, by achieving consensus on all the issues relating
thereto. It is geared to attain July 1st deadline for implementation of GST across India. 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. For successful implementation of GST, it is necessary that the Government at both centre and
state levels, agree to merge all their taxes into CGST/SGST. Further, the base for taxation for both has to be the
same. The exemptions, abatements etc. under GST need to be common for both centre and all states to avoid
litigation. Further exemptions/exclusions should be minimum to avoid break of credit chain. The law needs to
provide for single point compliances, absence of multistate audits etc. for the assesse.

6
Conceptually GST is expected to have numerous benefits like reduction in compliances in the long run since
multiple taxes will be replaced with one tax. It is expected to bring down prices and hence the inflation since it
will remove the impact of tax on tax and enable seamless credit. It is expected to generate revenue for the
country as the tax base will increase as the GST rate will be somewhere around 27% with both goods and
services covered. It is also expected to make exports from India competitive and India a preferred destination for
foreign investment since GST is a globally accepted tax. 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. Before the impending GST,
addressing issues faced by the financial service industry is important. The industry is currently facing issues
inter alia on determining nature of taxability of their incomes, input credit recovery, deciding the place of
provision of their service, issues like intermediary service income, interchange income, correspondent bank
charges income, format of the service tax returns, time limits for compliances and revision of returns, and so on.
Unless these issues are addressed the industry would face major hurdles with GST. GST is a multistate tax with
compliances expected in different states. Thus, it is imperative to address the issue of “place of supply” with
clarity before GST. Further double taxation issues like taxing intermediary services, interchange income,
correspondent bank charges etc. needs to be addressed so that India is globally competitive. Issues around
compliances need to be clarified since going forward there is an apprehension of multistate compliances and so
on. However, there is a huge hue and cry against its implementation. It would be interesting to understand why
this proposed GST regime may hamper the growth and development of the country.

7
2. Background of Goods and Service Tax outside India

Goods and Service also known as the Value Added Tax (VAT) or Harmonized Sales Tax. Following
are some successfully implemented GST models in other counties:

1. France: -
• Rate of GST 19.6%
• France was the first country to introduce GST in 1954.

Worldwide, almost 150 countries have introduced GST in one or the other form since now. Most of
the countries have a unified GST system. Brazil and Canada follow a dual system vis-à-vis India is
going to introduce. In China, GST applies only to goods and the provision of repairs, replacement and
processing services.

2. Australia: -

• Rate of GST 10%

• GST is administered by the Tax office on behalf of the Australian Government, and is
appropriated to the states and territories.

• Every company whose turnover exceeds $75,000 is liable for registration under GST
and in default 1/11th of the income and some amount is form of penalty.

• There are provisions for credit back of GST, submission of returns according to limit
decided, Maintenance of records etc. There they have to keep records for 5 years for
the purpose of GST .

3. Canada: -

• GST is imposed at 5% in Part IX of the Excise Tax Act. GST is levied on goods and
services made in Canada except items that are either "exempt" or "zero-rated".

• When, a supplier makes a zero-rated supply, he is eligible to recover any GST paid on
purchases but the supplier who makes supply of Exempt goods he is not eligible take
input tax credit on purchases for the purpose of making the exempt goods and
services.

4. New Zealand: -

• Rate of GST 12.5%.

• Exceptions are rent collected on residential rental properties, donations and financial
services.
8
1.3 Background of Goods and Service Tax in India

The Kelkar Task Force on implementation of FRBM23 Act, 2003 had pointed out that although
the indirect tax policy in India has been steadily progressive in the direction of VAT Principle
since 1986, the existing system of taxation of goods and services still suffers from many Problems.
The tax base is fragmented between Centre and States. Keeping significance of GST in view, an
announcement was made by then our Ex – Finance Minister Mr. P. Chidambaram in his four
budget speeches24.

• Budget Speech 2004-05

• Budget Speech 2005-06

• Budget Speech of 2006-07

• Similar speech given in the Budget of 2007-08

9
Need for GST

Deficiencies in the existing Value-Added Taxation

❖In the present regime, a manufacturer of excisable goods charges excise duty and value
added tax (VAT) on intra-State sale of goods. However, the VAT dealer on his
subsequent intra-State sale of goods charges VAT (as per prevalent VAT rate as
applicable in the respective state) on value comprising of (basic value + excise duty
charged by manufacturer + profit by dealer).

❖Further, in respect of tax on services, service tax is payable on taxable services

provided. W.e.f. 1 July 2012, service tax is levied on all ‘services’ other than the Negative
list of services as provided under Section 66D of the Finance Act, 1994 or else otherwise
exempted vide the Mega Exemption Notification No. 25/2012-ST dated 20 June 2012
(“the Mega Exemption Notification”).

❖Presently, from 1 June 2016, service tax is levied @ 15% [Service tax @ 14%, Swachh
Bharat Cess (SBC) @ 0.5% (w.e.f. November 15, 2015) and Krishi Kalyan Cess (KKC)
@ 0.5% (w.e.f. June 1, 2016)] on specified services provided by service providers in
India.

❖The existing indirect tax framework in India suffer from various shortcomings. Under
the existing indirect tax structure, the various indirect taxes being levied are not
necessarily mutually exclusive.

❖To illustrate, when the goods are manufactured and sold both central excise duty
(CENVAT) and State-Level VAT are levied. Though CENVAT and State-Level VAT are
essentially value added taxes, set off of one against the credit of another is not possible as
CENVAT is a central levy and State-Level VAT is a State levy. Moreover, CENVAT is
applicable only at manufacturing level and not at distribution levels. The existing sales
tax regime in India is a combination of origin based (Central Sales Tax) and destination
based multipoint system of taxation (State-Level VAT). Service tax is also a value added
tax and credit across the service tax and the central excise duty is integrated at the central
level.

10
 2. OBJECTIVE OF STUDY

The study has following objectives:

1) To recognize the concept of GST

2) To study the features of GST
3) To evaluate the advantages and challenges of GST
4) To study its effect on consumer’s .

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 retailer’s level where only the final consumer should bear the
tax.
The main objective of the project is to understand about need, requirements,
purpose, benefits and backlogs of the GST also how GST would effect the
consumer’s .

The country will benefit immensely in three ways from the GST:

First: - The GST will greatly boost the GDP. Lesser taxes leads, to lower prices of goods and
services. Lower prices lead, to increased purchasing power of the consumers. Increased purchasing
power leads to more demand of the goods and services. More demands lead to more production.
More production leads to Higher GDP. Hence, GST will boost the GDP.

Second: - The GST will facilitate ‘Make in India’ by converting the geographical landscape of the
country into a single market. Despite being one country, India is a union of 30 or more markets.
Too many taxes in the current system like the Central Sales Tax (CST) on inter-state sales of
goods; numerous intra-state taxes; and the extensive nature of countervailing duty exemptions,
favour imports over domestic production. GST would get rid of the CST and subsume most of the
other taxes. And since, it will also be applicable on imports, the major tax factor working against
‘making in India’ will disappear, greatly boosting the production and in turn exports. This will
ultimately help bridge the current account deficit.

Third: - The GST would improve tax governance in two ways. One, like the value added tax
(VAT), it is a self-collecting and self-enforcing tax. What it essentially means is that the
companies buying supplies from outside parties will insist on tax payment on goods supplied as
without this they can’t get setoffs on their own final product sales. Two, due to the dual monitoring
structure of the GST – one by the states and another by the Centre – it is difficult to evade tax.
Even if one set of tax authorities overlooks or fails to detect evasion, there is the possibility that
the other overseeing authority may not. To reap these benefits, it is important that the GST is well-
designed and the revenue-neutral rate is such that protects revenue, simplifies administration,

11
encourages compliance, avoids adding to inflationary pressures, and keeps India in the range of
countries with reasonable levels of indirect taxes.

Some other elementary benefits of GST model in INDIA

Uniform GST Registration: - The model legislation for the introduction of goods and
services tax (GST) will have a provision for registration of individuals and companies
which pay the tax. The registration will be done through a uniform PAN-linked business
identification number. The Department of Revenue in the Ministry of Finance had
recently sent a proposal to state governments for making the 10-digit permanent account
number (PAN) the starting point for registering GST payees.

Input Credit in GST: - Input Credit Mechanism is available to you when you are
covered under the GST Act. Which means if you are a manufacturer, supplier, agent,
ecommerce operator, aggregator or any of the persons mentioned here, registered under
GST, you are eligible to claim INPUT CREDIT for tax paid by you on your purchases

Growth of Revenue in States and Union: - It is expected that the introduction of GST
will increase the tax base but lowers down the tax rates and also removes the multiple
point taxation. This will lead to higher amount of revenue to both the states and the union.
Reduces transaction costs and unnecessary wastages: - If government works in an
efficient mode, it may be also possible that a single registration and a single compliance
will suffice for both SGST and CGST provided government produces effective IT
infrastructure and integration of states level with the union.

Reduces average tax burdens: - Under GST mechanism, the cost of tax that consumers
have to bear will be certain and it is expected that GST would reduce the average tax
burdens on the consumers.

12
Reduces the corruption: - It is one of the major problems that India is overwhelmed
with. We cannot expect anything substantial unless there exists a political will to root it
out. This will be a step towards corruption free Indian Revenue Services. Present CST
will be removed and need not to be paid. At present, there is no input tax credit available
for CST. There are many indirect taxes in state and central level currently, which will be
included by GST. i.e. you need to pay a single GST instead of all of them. Uniformity of
tax rates across the states Ensure better compliance due to aggregate tax rate reduces. By
reducing the tax burden, the competitiveness of Indian products in international market is
expected to increase and there by development of the nation. Prices of goods are expected
to reduce in the long run as the benefits of less tax burden would be passed on to the
consumer.

13
Simplification of Various Terms of GST

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

Inter- State Movement: - An inter-State supply if the supply involves the movement of
goods from one State to another
Explanation: Where the movement of goods commences and terminates in the same
State it shall not be deemed to be a movement of goods from one State to another by
reason merely of the fact that in the course of such movement the goods pass through the
territory of any other State.

CGST: - CGST means Central Goods and Service Tax. CGST is a part of goods and
service tax. It is covered under Central Goods and Service Tax Act 2016. Taxes collected
under Central Goods and Service tax will be the revenue for central Government. Present
Central taxes like Central excise duty, Additional Excise duty, Special Excise Duty,
Central Sales Tax, Service Tax etc. will be subsumed under Central Goods and Service
Tax.

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

14
IGST: - IGST means Integrated Goods and Service Tax. IGST falls under Integrated
Goods and Service Tax Act 2016. Revenue collected from IGST will be divided between
Central Government and State Government as per the rates specified by the government.
IGST will be charged on transfer of goods and services from one state to another state.
Import of Goods and Services will also be deemed to be covered under Inter-state
transactions so IGST will be levied on such transactions. For example, if Goods or
services are transferred from Rajasthan to Maharashtra then the transaction will attract
IGST.

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

15
3. SCOPE OF THE GST

The scope of the study limits up to the study of GST under Indirect Tax System. GST
shall cover all goods and services, except alcoholic liquor for human consumption, for the
levy of goods and services tax. In case of petroleum and petroleum products, it has been
provided that these goods shall not be subject to the levy of Goods and Services Tax till a
date notified on the recommendation of the Goods and Services Tax Council.

All goods and services are covered under GST Regime except Alcoholic liquor for
Human Consumption, Tobacco Products subject to levy of GST and Centre may also levy
excise duty GST Council yet to decide the incidence and levy of GST on following; a)
Crude Petroleum

b) High Speed Diesel (HSD)

c)Motor Spirit (Petrol)
d)Natural Gas
e) Aviation Turbine Fuel

Also how Implementation of GST would impact the consumer’s . With the Indirect Tax
like GST consumer’s would be more aware of the percentage of tax charged on the goods
they consume than earlier imposition of taxes which wouldn’t be noticed by them .

16
4. LITERATURE REVIEW

Consistent with the federal structure of the country, the GST will have two components:
one levied by the Centre (hereinafter referred to as Central GST), and the other levied by
the States (hereinafter referred to as State GST). This dual GST model would be
implemented through multiple statutes (one for CGST and SGST statute for every State).
However, the basic features of law such as chargeability, definition of taxable event and
taxable person, measure of levy including valuation provisions, basis of classification etc.
would be uniform across these statutes as far as practicable. GST is also referred as value
added tax (VAT). It is a tax government collected at the final purchase consumption.
However, according to Hooper and Smith (1997), GST is actually collected at various
stages of the production process. Accordingly, there is output tax, a GST tax charges by
the suppliers on taxable goods and services and input tax, a tax incurred by businesses on
goods and services purchases. It is noted that GST is not a cost to the sellers and would
not appear in financial statements as expenditure. Recently, the government initiative to
introduce Goods and Services Tax (GST) has been a growing topic of interest in
Malaysia. Despite the increasing popularity and success of GST implementation around
the world (Hooper & Smith, 1997), Malaysian citizens are not entirely convinced with
this new tax scheme. There are debates mainly centred on the advantages and
disadvantages derived from the new tax initiative. As per as India is concerned
AgogoMawuli (May 2014) studied, “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. Dr. R. Vasanth Gopal (2011) studied, “GST in India: A Big
Leap in the Indirect Taxation System” and concluded that switching to seamless GST
from current complicated indirect tax system in India will be a positive step in booming
Indian economy. Success of GST will lead to its acceptance by more than 130 countries
in world and a new preferred form of indirect tax system in Asia also. Ehtisham Ahmed
and Satya Poddar (2009) studied, “Goods and Service Tax Reforms and
Intergovernmental Consideration in India” and found that GST introduction will provide
simple and transparent tax system with increase in output and productivity of economy in
India. But the benefits of GST are critically dependent on rational design of GST.

17
 RESEARCH METHODOLOGY
5.

It is based on secondary data of articles and newspapers . Considering the objectives of

study descriptive type research design is adopted to have more accuracy and rigorous
analysis of research study. The accessible secondary data is intensively used for research
study.

DATA COLLECTION

Dual GST Model introduced in India

❖India has adopted a dual GST which will be imposed concurrently by the Centre and
States, i.e. Centre and States will simultaneously tax goods and services. Centre will have
the power to tax intra-State sales & States will be empowered to tax services. GST will
extend to whole of India except the State of Jammu and Kashmir.

❖GST is a destination based tax applicable on all transactions involving supply of goods
and services for a consideration subject to exceptions thereof. GST in India will comprise
of Central Goods and Service Tax (CGST) - levied and collected by Central Government,
State Goods and Service Tax (SGST) - levied and No CENVAT after manufacturing
stage Non-inclusion of several local levies in State VAT such as luxury tax, entertainment
tax, etc. Nonintegration of VAT & service tax Cascading of taxes on account of (i) levy
of Non-VAT able CST and (ii) inclusion of CENVAT in the value for imposing VAT
Double taxation of a transaction as both goods and services collected by State
Governments/Union Territories with State Legislatures and Union Territory Goods and
Service Tax (UTGST) - levied and collected by Union Territories without State
Legislatures, on intra-State supplies of taxable goods and/or services. Inter-State supplies
of taxable goods and/or services will be subject to Integrated Goods and Service Tax
(IGST). IGST will approximately be a sum total of CGST and SGST/UTGST and will be
levied by Centre on all inter-State supplies.

❖There is single legislation – CGST Act, 2017 - for levying CGST. Similarly, Union
Territories without State legislatures [Andaman and Nicobar Islands, Lakshadweep,
Dadra and Nagar Haveli, Daman and Diu and Chandigarh] will be governed by UTGST
Act, 2017 for levying UTGST. States and Union territories with their own legislatures
[Delhi and Puducherry] have to enact their own GST legislation for levying SGST.
Though there would be multiple SGST legislations, the basic features of law, such as
chargeability, definition of taxable event and taxable person, classification and valuation
of goods and services, procedure for collection and levy of tax and the like would be
uniform in all the SGST legislations, as far as feasible. This would be necessary to
preserve the essence of dual GST.

18
❖In GST regime, tax (i.e. CGST and SGST/UTGST for intra-State supplies and IGST
for inter-State supplies) shall be paid by every taxable person and in this regard
provisions have been prescribed in the law. However, for providing relief to small
businesses, a simpler method of paying taxes and accounting thereof is also prescribed,
known as Composition Scheme. Along with providing relief to small-scale business, the
law also contains provisions for granting exemption from payment of tax on specified
goods and/or services.

❖Input Tax Credit (ITC) of CGST and SGST/UTGST will be available throughout the
supply chain, but cross utilization of credit of CGST and SGST/UTGST will not be
possible, i.e. CGST credit cannot be utilized for payment of SGST/UTGST and
SGST/UTGST credit cannot be utilized for payment of CGST. However, cross utilization
will be allowed between CGST/SGST/UTGST and IGST, i.e. credit of IGST can be
utilized for the payment of CGST/SGST/UTGST and vice versa.

❖Since GST is a destination based consumption tax, revenue of SGST will ordinarily
accrue to the consuming States. The inter-State supplier in the exporting State will be
allowed to set off the available credit of IGST, CGST and SGST/UTGST (in that order)
against the IGST payable on inter-State supply made by him. The buyer in the importing
State will be allowed to avail the credit of IGST paid on inter-State purchase made by
him. Thus, unlike the existing scenario where the credit chain breaks in case of inter-State
sales on account of non-VAT able CST, under GST regime there is a seamless credit flow
in case of inter-State supplies too. The revenue of inter-State sale will not accrue to the
exporting State and the exporting State will be required to transfer to the Centre the credit
of SGST/UTGST used in payment of IGST. The Centre will transfer to the importing
State the credit of IGST used in payment of SGST/UTGST. Thus, the inter- State trade of
goods and services (IGST) would need a robust settlement mechanism amongst the States
and the Centre. A Central Agency is needed which can act as a clearing house and verify
the claims and inform the respective Governments to transfer the funds. This is possible
only with the help of a strong IT Infrastructure.

❖Resultantly, Goods and Services Network (GSTN) - a Special Purpose Vehicle – has
been set to provide a shared IT infrastructure and services to Central and State
Governments, taxpayers and other stakeholders for implementation of GST.

19
GST PORTAL

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

GSTIN
For any dealer registered under state VAT law, a unique TIN number is issued by the respective
state tax authorities. Similarly, a service provider is assigned a service tax registration number by
the Central Board of Excise and Custom (CBEC). Going forward, in the new GST regime, all
these taxpayers will get consolidated into one single platform for compliance and administration
purposes and will be assigned registration under a single authority. The government has set up
GSTN–a special purpose vehicle to provide the IT infrastructure necessary to support GST
digitally. It is expected that 8 million taxpayers will be migrated from various platforms into GST.
All of these businesses will be assigned a unique Goods and Services Tax Identification Number
(GSTIN). But most are yet not aware of the new registration process and the identification number.

Proposed GST Identification Number (GSTIN)

A complete break-up of the proposed GST Identification Number. Each taxpayer will be allotted a
state-wise PAN-based 15-digit Goods and Services Taxpayer Identification Number (GSTIN).

▪The first two digits of this number will represent the state code as per Indian Census 2011 ▪ The
next ten digits will be the PAN number of the taxpayer ▪ The thirteenth digit will be assigned
based on the number of registration within a state ▪ The fourteenth digit will be Z by default ▪ The
last digit will be for check code

A format of proposed GSTIN has been shown in the image below.

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

20
Importance of GST Registration
GST registration is critical because it will enable you to avail various benefits that are available
under the GST regime. One such benefit is to avail seamless input tax credit. Multiple taxes are
being clubbed under GST and thus the cascading of taxes that is prevailing currently will no longer
be the case. Also, timely registration will help you avoid any kind of interface with tax authorities.

Casual Registration
A person who occasionally supplies goods and/or services in a territory where GST is applicable
but he does not have a fixed place of business. Such a person will be treated as a casual taxable
person as per GST.

Example: A person who has a place of business in Bangalore supplies taxable consulting services
in Pune where he has no place of business would be treated as a casual taxable person in Pune.

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

Applicability GST
will apply when turnover of the business exceeds Rs 20 lakhs (Limit is Rs 10 lakhs for the North-
Eastern States). [Earlier the limit was Rs 10lakhs and Rs 5lakhs for NE states.]

Migration to GST
All existing Central Excise and Service Tax assessees and VAT dealers will be migrated to GST.
To migrate to GST, assessees would be provided a Provisional ID and Password by CBEC/State
Commercial Tax Departments.

Provisional IDs would be issued to only those assessees who have a valid PAN associated with
their registration. An assessee may not be provided a Provisional ID in the following cases:

1. The PAN associated with the registration is not valid

2.The PAN is registered with a State Tax authority and Provisional ID has

been supplied by the said State Tax authority.

3.There are multiple CE/ST registrations on the same PAN in a State. In

this case, only 1 Provisional ID would be issued for the 1st registration

in the alphabetical order provided any of the above 2 conditions are not met.

21
The assessees need to use this Provisional ID and Password to login to the GST Common Portal
https://www.gst.gov.in where they would be required to fill and submit the Form 20 along with
necessary supporting documents.

Penalties for Not Registering Under GST

An offender not paying tax or making short payments has to pay a penalty of 10% of the tax
amount due subject to a minimum of Rs. 10,000. The penalty will be high at 100% of the tax
amount when the offender has evaded i.e., where there is a deliberate fraud. However, for other
genuine errors, the penalty is 10% of the tax due.

Multiple Registrations Under GST

A person with multiple business verticals in a state may obtain a separate

registration for each business vertical.

PAN is mandatory to apply for GST registration (except for a non-resident

person who can get GST registration on the basis of other documents).

A registration which has been rejected under CGST Act/SGST Act shall also

stand rejected for the purpose of SGST/CGST act.

22
GST calculation

Model of GST with example:

The GST shall have two components: one levied by the Centre (referred to as
Central GST or CGST), and the other levied by the States (referred to as State
GST or SGST). Rates for Central GST and State GST would be approved
appropriately, reflecting revenue considerations and acceptability.

The CGST and the SGST would be applicable to all transactions of goods and
services made for a consideration except the exempted goods and services.

Cross utilization of ITC both in case of Inputs and capital goods between the
CGST and the SGST would not be permitted except in the case of inter-State
supply of goods and services (i.e. IGST).

The Centre and the States would have concurrent jurisdiction for the entire
value chain and for all taxpayers on the basis of thresholds for goods and
services prescribed for the States and the Centre.

23
 THE FOLLOWING COMPARISION SHOW THE BENEFIT OF GST: -

Comparison between Multiple Indirect tax laws and proposed one law

Particulars Without GST With GST

(Rs.) (Rs.)

Manufacture to Wholesaler

Cost of Production 5,000.00 5,000.00

Add: Profit Margin 2,000.00 2,000.00

Manufacturer Price 7,000.00 7,000.00

Add: Excise Duty @ 12% 840 –

Total Value(a) 7,840.00 7,000.00

Add: VAT @ 12.5% 980 –

Add: CGST @ 12% – 840

Add: SGST @ 12% – 840

Invoice Value 8,820.00 8,680.00

Wholesaler to Retailer

COG to Wholesaler(a) 7,840.00 7,000.00

Add: Profit Margin@10% 784 700

Total Value(b) 8,624.00 7,700.00

Add: VAT @ 12.5% 1,078.00 –

Add: CGST @ 12% – 924

Add: SGST @ 12% – 924

24
Invoice Value 9,702.00 9,548.00

Retailer to Consumer:

COG to Retailer (b) 8,624.00 7,700.00

Add: Profit Margin 862.4 770

Total Value(c) 9,486.40 8,470.00

Add: VAT @ 12.5% 1,185.80 –

Add: CGST @ 12% – 1,016.40

Add: SGST @ 12% – 1,016.40

Total Price to the Final consumer 10,672.20 10,502.80

Cost saving to consumer – 169.4

% Cost Saving – 1.59

Notes: - Input tax credit available to wholesaler is Rs.980 and Rs. 1,680 in case of
without GST and with GST respectively.

Likewise Input tax credit available to Retailer is Rs. 1,078 and Rs. 1,848 in case
of without GST and with GST respectively.
In case, VAT rate is also considered to be 12%, the saving to consumer would be
1.15%.

25
 Impact of GST

OVERALL GST IMPACT: -

a) Change in law and procedure: Since it is a major indirect tax reform in India, there would
be new legislations and procedures. The entire indirect tax code would be a new one.

b) Change in tax-rates: The standard rate of 12.5 % for central excise, Service tax, along with
residuary rate of VAT at 12.5-14.5% brings the overall rate to 25%-30%. But, post GST, the
general rate will be 18%; a net gain of almost 7%-12%. Most of the dealers and consumers
would experience the change in tax rates, either significantly or marginally. When the tax rates
are increased for some products it could lead to tax evasion as well.

c) GST based on HSN: The central excise tariff based classification would no longer be
applicable. It would reduce the interpretational issues in respect of class of commodities.

d) Availment of tax credit: GST would facilitate near seamless credit across the entire supply
chain and across all States under a common tax base. At present no cross credits are available
across central excise/service tax to local VAT/sales tax. Under the GST law, the input tax
credit (ITC) (set off) would be given for Central GST against CGST and the States would give
input tax credit (ITC) SGST to SGST. Crossutilization of credit between Central GST and
State GST would not be allowed.

e) Credit availment based on vendor’s invoices: The credit of excise duty paid is available
based on the excise invoice raised by manufacturer or service provider. The credit is available
under the Service Tax law when the invoice amount is paid within 3 months of the invoice
date. In respect of joint charge and reverse charge, based on receipt of payment on the basis of
payment challans of the assessee. Under State VAT law, credit is allowable on the basis of tax
invoice. Under GST the credits could be availed based on the invoices of vendors under
CGST and SGST. But the onus may shift onto the assessee to ensure that theamount of the
CGST/SGST has been deposited in the respective Government treasury by the vendor. This
provision has been added to bring in tax discipline but smaller businesses may find transaction
cost increasing due to this.

f) Avoidance of Double Taxation: Presently, several transactions suffer VAT as well as Service
Tax such as works contract or licensing of software. This could be resolved under the GST
regime by redefining what is goods and service.

g) Changes in the Accounting Software: Dealers and service providers need to modify/replace
the accounting and taxation software. Initially there could be investment costs, costs of
training in GST of people at each level starting from junior/mid to higher level managerial
staff, management group/stakeholders

h) Training: Comprehensive training would be required to the staff members of the business
community, both at senior level and also at junior level across the purchase, sales and finance
functions. VAT + CE/ ST officers would also need to understand the law well.

26
 i) Competent Professionals: There are specialized consultants for Excise Duty, Service Tax
and VAT. With the GST, only a single consultant maybe required who can handle all GST
matters. Compliance for the SME may necessitate competent tax preparers

j) Amending existing contracts: Assessees have to incorporate an extra clause in the existing
contracts to collect CGST and SGST as applicable.

ON INDIA: -

Goods and Services Tax (GST) is expected to provide the much-needed stimulant for economic
growth in India by transforming the existing basis of indirect taxation towards free flow of goods
and services within the economy and also eliminating the cascading effect of tax on tax. In view of
the important role that India is expected to play in the world economy in the years to come, the
expectation of GST being introduced is high not only within the country, but also in neighbouring
countries and in developed economies of the world.

Some of the imp impacts are: -

a) Increased FDI: The flow of Foreign Direct Investments may increase once GST is implemented as the
present complicated/ multiple tax laws are one of the reasons foreign Companies are wary of coming to
India in addition to widespread corruption.

b) Growth in overall revenue: It is estimated that India could get revenue of $15 billion per annum by
implementing the Goods and Services Tax as it would promote exports, raise employment and boost
growth. Over a period, the dilution of the principles may see that only part of this is accruing.

c) Growth in overall revenue: It is estimated that India could get revenue of $15 billion per annum by
implementing the Goods and Services Tax as it would promote exports, raise employment and boost
growth. Over a period, the dilution of the principles may see that only part of this is accruing.

d) Simplified tax laws: This reduces litigation and waste of time of the judiciary and the assessee due to
frivolous proceedings at various levels of adjudication and appellate authorities. Present law appears to
be much worse and an amalgam of the bad parts of VAT/ ST/ CE.

e) Increase in exports and employment: GST could also result in increased employment, promotion of
exports and consequently a significant boost to overall economic growth and factors of production -
land labour and capital.

27
 ON INDIAN ECONOMY: -

•Reduce tax burden on producers and foster growth through more production. This double
taxation prevents manufacturers from producing to their optimum capacity and retards growth.
GST would take care of this problem by providing tax credit to the manufacturer.

•Various tax barriers such as check posts and toll plazas lead to a lot of wastage for perishable
items being transported, a loss that translated into major costs through higher need of buffer stocks
and warehousing costs as well. A single taxation system could eliminate this roadblock for them.

•A single taxation on producers would also translate into a lower final selling price for the
consumer.

•Also, there will be more transparency in the system as the customers would know exactly how
much taxes they are being charged and on what base.

• GST would add to government revenues by widening the tax base.

•GST provides credits for the taxes paid by producers earlier in the goods/services chain. This
would encourage these producers to buy raw material from different registered dealers and would
bring in more and more vendors and suppliers under the purview of taxation.

•The proposed GST regime, which will subsume most central and state-level taxes, is expected to have a single
unified list of concessions/exemptions as against the current mammoth exemptions and concessions available
across goods and services

The introduction of Goods and Services Tax would be a very noteworthy 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 alleviate
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 reduction in the overall tax burden on goods
and services. Introduction of GST would also make Indian products competitive in the domestic and
international markets. Last but not the least, this tax, because of its transparent character, would be easier to
administer. However, once implemented, the system holds great promise in terms of sustaining growth for the
Indian economy.

28
Negative list under GST

Schedule III: -Activities or transactions which shall be treated neither as a supply of goods nor a
supply of services .

1. Services by an employee to the employer in the course of or in relation to his employment.

2. Services by any Court or Tribunal established under any law for the time being in force.

3. Functions performed by the MPs, MLAs, Members of municipality and Member of other local
authorities.

4. Duties performed by any person who holds any constitutional post.

5. Duties performed by any person as a Chairperson or a Member or a Director in a body

established by the Central Government or a State Government or local authority and who is
not deemed as an employee before the commencement of this clause.

6. Services of funeral, burial, crematorium or mortuary including transportation of the deceased

7. Sale of land and sale of building where entire consideration has been received after issuance
of completion certificate.

8. Actionable claims other than lottery, betting and gambling.

29
How GST impacts consumer goods (FMCG) industry

The new Goods and Services Tax (GST) regime will bring several benefits for the economy, and could
particularly vitalise the fast-moving consumer goods (FMCG) industry.

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— 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.

Products to be taxed at higher rate

GST beneficiaries

The rates for various FMCG segments have mostly been along expected lines. Items of mass consumption—
toothpaste, soaps, hair oil—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.

30
Products to be taxed at lower rate

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. “With the anti-profiteering clause in place, companies would be
required to pass on the benefit of tax rates to the consumer in the form of lower prices,” says Sanjay Manyal,
Analyst, ICICI Securities.

Lower prices could potentially support volume growth for certain products, particularly in the rural segment.
“We believe 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 rationalisation of
supply chain by removing bottlenecks,” says Manyal. Analysts also point out that tax exemption provided to
several critical products required for food processing—jaggery,cereals and milk— would benefit this industry.

So, which are the companies that stand to gain from a benign tax regime? The extent of impact would depend on
the product mix of the companies. Oral care major Colgate Palmolive is likely to emerge as the biggest
beneficiary. “Colgate pays an effective tax of 25-26%. The new 18% tax on toothpastes (make up 80% of the
company’s sales) is a positive, particularly as it levels the playing field against Dabur and Patanjali, who enjoy
tax benefits,” says a Motilal Oswal report. Hair and edible oil companies too will benefit. “Marginally lower
rates in hair oil with no increase in edible oil rates will benefit Marico,” says an Axis Capital report.

31
ANALYSIS AND INTERPRETATION

32
4.1 INTRODUCTION TO ANALYSIS:

In order to extract meaningful information from the data them. The analysis can be conducted by using simple
statistical tools like percentages, averages and measures of dispersion. Alternatively, the collected data may be
analysed, the data analysis is carried out. The data are first edited, coded and tabulated for analysing by using
diagrams, graphs, charts, pictures etc. Data analysis is the process of planning the data in an ordered form,
combining them with the existing information and extracting from them.

Interpretation is the process of drawing conclusions from the gathered data in the study. In this research the
researcher has analysed the data using percentages and graphs.

4.2 DATA ANALYSIS TOOLS USED:

In this research the data analysis tools used are percentages and graphs. The various attributes were analysed
separately and the importance to each was calculated on the basis of the percentage. The rank having the
maximum percentage was taken to be preferred importance to the particular attribute. After looking at each
attribute separately, all the attributes were considered together to develop a map on the most preferred rank for
all the attributes

33
 TABLE 1
AGE OF RESPONDENTS

Sr. No. Age in Years Number of respondents Percentage of Respondents

1 19-28 15 30%
2 29-38 20 40%
3 39-48 15 30%
4 49-58 0 0%
5 59-68 0 0%
6 69-78 0 0%
TOTAL 50

SOURCE: - SURVEY DATA

INFERENCE: The above table classified the respondents according to their age group. The

majority of the respondents belong to the age group 29 to 38 years with 40% and the age group 19-28 and

39-48 both with second majority of 30% each .

34
 GRAPH 1

AGE OF RESPONDENTS

20

18

16

14

12

10

0
19-28 29-38 39-48 49-58 59-68 69-78

Number of respondents Percentage of Respondents

35
 TABLE 2

DIFFERENCIATION OF THE RESPONDENTS INTO MALE AND

FEMALE

TYPE O F NUMBER OF PERCENTAGE O F

RESPONDENTS RESPONDENTS RESPONDENTS

MALE RESPONDENTS 25 50%

FEMALE RESPONDENTS 25 50%

50

SOURCE: - SURVEY DATA

INFERENCE: This table helps us to understand that there are equal number of male and female respondent with

50% each .

36
 GRAPH 2

DIFFERENCIATION OF THE RESPONDENTS INTO MALE AND

FEMALE

25

20

15

10

FEMALE RESPONDENTS
5

MALE RESPONDENTS
0
NUMBER OF RESPONDENTS PERCENTAGE OF
RESPONDENTS

MALE RESPONDENTS FEMALE RESPONDENTS

37
 TABLE 3
DIFFERENCIATION OF RESPONDENTS BASED ON THEIR
OCCUPATION

Occupation NUMBER OF RESPONDENTS PERCENTAGE OF RESPONDENTS

STUDENTS 5 10%

HOUSEWIFE 20 40%

WORKING PEOPLE 25 50%

50

SOURCE:- SURVEY DATA

INFERENCE: It could be seen that majority of consumers of are

Working people with 50% and Housewife with 40%, followed by students .

38
 GRAPH 3
DIFFERENCIATION OF RESPONDENTS BASED ON THEIR
OCCUPATION

STUDENTS
10%

WORKING PEOPLE
50%

HOUSEWIFE
40%

STUDENTS HOUSEWIFE WORKING PEOPLE

39
 TABLE 4

SOURCES FROM WERE YOU GOT

TO KNOW ABOUT GST IMPLEMENTATION FIRST

Number of Percentage of
SOURCES respondents Respondents

FRIENDS 5 10%

FAMILY 10 20%

MASS MEDIA 30 60%

OTHER SOURCES 5 10%

50

SOURCE: - SURVEY DATA

INFERENCE: The majority of people got to know about GST implementation through MASS
MEDIA with 60% , followed by FAMILY with 20% latter by FRIENDS and OTHER SOURCES with 10%
each .

40
 GRAPH 4

SOURCES FROM WERE YOU GOT

TO KNOW ABOUT GST IMPLEMENTATION FIRST

41
 TABLE 5
HAS GST IMPLEMENTATIONCAUSED PRICE HIKE

GST IMPLEMENTATION HAS CAUSED PRICE NUMBER OF PERCENTAGE OF

HIKE RESPONDENTS RESPONDENTS

AGREE 30 60%

DISAGREE 5 10%

NEUTRAL 15 30%

50

42
SOURCE: - SURVEY DATA

INFERENCE: The majority people agree to GST implementation led to price hike of the
goods with 60% , followed by neutral reaction with 30% and the last group of people with
5% disagree of the GST implementation affecting the price hike .

GRAPH 5

HAS GST IMPLEMENTATION CAUSED PRICE HIKE

43
 30

25

20

15

10
Percentage of Respondents
5
Number of respondents
0
AGREE DISAGREE NEUTRAL

Number of respondents Percentage of Respondents

TABLE 6
WHICH SYSTEM IS MORE BENEFICIAL TO PEOPLE

Number of Percentage of
SYSTEM MORE BENEFICIAL TO PEOPLE respondents Respondents

GOOD'S AND SERVICE TAX 20 40%

44
 SALES AND SERVICE TAX 30 60%

50

SOURCE: - SURVEY DATA

INFERENCE: The majority people prefer SALES AND SERVICE TAX is beneficial with 60% than

GOOD'S AND SERVICE TAX with only 40%

GRAPH 6
WHICH SYSTEM IS MORE BENEFICIAL TO PEOPLE

45
 GOOD'S AND SERVICE TAX SALES AND SERVICE TAX

30

20

60% SALES AND SERVICE TAX

40% GOOD'S AND SERVICE TAX

Number of respondents Percentage of

Respondents

TABLE 7
SERVICE ITEM AFFECTED DUE TO GST

46
 Number of Percentage of
SERVICE ITEM AFFECTED DUE TO GST respondents Respondents

TELECOM 15 30%

FIVE STAR RESTRAUNT 20 40%

AC, ALCOHOL - SERVING RESTRAUNT 15 30%

50

SOURCE: - SURVEY DATA

INFERENCE: The majority of service item affected due to GST is FIVE STAR RESTRAUNT with
40% , followed by TELECOM and AC, ALCOHOL - SERVING RESTRAUNT with 30% each .

GRAPH 7
SERVICE ITEM AFFECTED DUE TO GST

47
25 45%

40%

20
35%

30%
15
25%

20%
10
15%

10%
5

5%

0 0%
TELECOM FIVE STAR RESTRAUNT AC, ALCOHOL - SERVING
RESTRAUNT

Number of respondents Percentage of Respondents

TABLE 8

CONSUMPTION OF LIFESTYLE AND HOME ITEMS IMPACTED DUE TO GST

48
LIFESTYLE AND HOME ITEMS
IMPACTED DUE TO GST Number of respondents Percentage of Respondents
LEATHER BAG'S 10 20%
CELL PHONES 25 50%
WRISTWATCHES 15 30%
50

SOURCE: - SURVEY DATA

INFERENCE: The majority of LIFESTYLE AND HOME ITEMS affected due to GST
are CELL PHONES with 50% followed by WRISTWATCHES 30% and LEATHER BAG'S
20% .

GRAPH8

CONSUMPTION OF LIFESTYLE AND HOME ITEMS IMPACTED DUE TO GST

49
 LEATHER BAG'S
WRISTWATCHES 20%
30%

CELL PHONES
50%

LEATHER BAG'S CELL PHONES WRISTWATCHES

TABLE 9

50
 CONSUMPTION OF LIFESTYLE AND HOME ITEMS NOT IMPACTED DUE TO
GST

LIFESTYLE AND HOME ITEMS NOT IMPACTED DUE TO GST Number of respondents Percentage of Respondents
FURNITURE 20 40%
AIR CONDITIONERS 10 20%
REFRIGERATORS 15 30%
VEDIO GAMES 5 10%
50

SOURCE: - SURVEY DATA

INFERENCE: The majority of LIFESTYLE AND HOME ITEMS NOT IMPACTED DUE
TO GST are FURNITURE with 40% , then REFRIGERATORS with 30% followed by AIR CONDITIONERS
20% and VEDIO GAMES 10%

51
FINDINGS, CONCLUSION AND SUGGESTIONS

52
5.1 FINDINGS

 The majority of the respondents belong to the age group 29 to 38 years with 40% and the age group
19-28 and 39-48 both with second majority of 30% each .

 There are equal number of male and female respondent with 50% each .

 It majority of consumers of are working people with 50% and Housewife with 40%, followed by
students .

 The majority of people got to know about GST implementation through MASS MEDIA with 60% ,
followed by FAMILY with 20% latter by FRIENDS and OTHER SOURCES with 10% each .

 The majority people agree to GST implementation led to price hike of the goods with 60% , followed
by neutral reaction with 30% and the last group of people with 5% disagree of the GST implementation
affecting the price hike .

 The majority people prefer SALES AND SERVICE TAX is beneficial with 60% than GOOD'S AND
SERVICE TAX with only 40% .

 The service item affected due to GST is FIVE STAR RESTRAUNT with 40% , followed by
TELECOM and AC, ALCOHOL - SERVING RESTRAUNT with 30% each .

 The majority of LIFESTYLE AND HOME ITEMS affected due to GST are CELL PHONES with 50%
followed by WRISTWATCHES 30% and LEATHER BAG'S 20% .

 The majority of LIFESTYLE AND HOME ITEMS NOT IMPACTED DUE TO GST are
FURNITURE with 40% , then REFRIGERATORS with 30% followed by AIR CONDITIONERS20%
and VEDIO GAMES 10% .

 The majority of LIFESTYLE AND HOME ITEMS ON WHICH GST PERCENTAGE CHARGED IS
LESSER THAN THE EARLIER RATE are STEEL UTENSILS with 40% , followed by PROTEINS
AND FITNESS SUPPLEMENTS with 30% . Latter with SPORT'S GOODS 20% and BICYCLES
10% .

 The majority of CONSUMER GOODS like DRY FRUITS are reduced by 40% with PRESERVED
VEGETABLES 30% , BRANDED PANEER 20% and AGARBATTI 10% .

53
 The consumer goods not impacted due to GST are BUTTER, GHEE , CHEESE and TOOTHPASTE
with 30% each followed by CEREALS and INSTANT,AROMA COFFEEwith 20% each .

 The consumer goods on which GST percentage charged is lesser than the earlier rates are
VEGETABLES FAT'S AND OILS and MILK BEVERAGES with 40% each followed by BEET
SUGAR, CANE SUGAR with 20% .

 The purchase of other items reduced due to GST implementation are ARTIFICAL FLOWER'S with
50% followed by PLASTIC PRODUCTS 30% and lastly CHILDREN'S DRAWING BOOKS with
20% .JJ

 The purchase of other items not impacted due to GST implementation are ANIMAL OR HUMAN
VACINES with 50% , BALL PEN INK and GEOMETRIC BOXES with 20% and lastly
CALENDER'S with 10% .

54
 CONCLUSION

From the above discussion, it is clear that GST is basically an indirect tax that brings most of
the taxes imposed on most goods and services, on manufacture, sale and consumption of
goods and services, under a single domain at the national level. In the present system, taxes
are levied separately on goods and services. The GST is a consolidated tax based on a
uniform rate of tax fixed for both goods and services and it is payable at the final point of
consumption. At each stage of sale or purchase in the supply chain, this tax is collected on
valueadded goods and services, through a tax credit mechanism Introduction of the Value
Added Tax (VAT) at the Central and the State level has been considered to be a major step –
an important breakthrough – in the sphere 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 a
further significant improvement – the next logical step – towards a comprehensive indirect
tax reforms in the country.

55
 RECOMMENDATION

Some suggestions for better administrative way to handle and implement of goods and service tax act
in India are: -

• Standardization of systems and procedure

• Uniform dispute settlement procedure

• Adequate training for both tax payers and tax enforcers

• Re-organization of administrative machinery for GST implementation

•Building information technology backbone – the single most important

initiative for GST implementation

•Uniform implementation of GST should be ensured across all states (unlike

the staggered implementation of VAT) as many issues might arise in case of

transactions between states who comply with GST and states who are not

complying with GST.

56
BIBLIOGRAPHY

•Girish Garg, (2014), “Basic Concepts and Features of Good and Service Tax
in India.

•Nitin Kumar (2014), “Goods and Service Tax in India-A Way Forward”, “Global
Journal of Multidisciplinary Studies”, Vol 3, Issue6, May 2014.

• https://cleartax.in/s/gst-law-goods-and-services-tax

•http://www.thehindubusinessline.com/multimedia/archive/03166/GST_rate_sc
hedule 3166109a.pdf

57