A PROJECT REPORT ON

A STUDY OF PRE AND POST GST - CONSUMER WITH

REFERENCE TO SOUTH MUMBAI

SUBMITTED BY

AMELIA FREDY LOUIS

M.COM ACCOUNTING AND FINANCE

SEMESTER III 2020-21

UNDER THE GUIDANCE OF

VIJAY GAWDE

SUBMITTED TO

UNIVERSITY OF MUMBAI

VIDYALANKAR SCHOOL OF INFORMATION TECHNOLOGY

(AFFILIATED TO UNIVERSITY OF MUMBAI)

VIDYALANKAR MARG, WADALA (E),

MUMBAI 400 037

 VIDYALANKAR SCHOOL OF INFORMATION TECHNOLOGY
(Affiliated to Mumbai University)

Certificate
This is to certify that
Ms Amelia Fredy Louis of M.Com in Accounting and Finance, Semester
III has undertaken & completed the project work of title ‘A study of Pre
and Post GST-CONSUMER with reference to Mumbai’ during the

academic year under the guidance of Mr. Vijay Gawde submitted on

to this college in fulfillment of the curriculum of M.Com.in Accounting and
Finance, University of Mumbai.
This is a bonafide project work & the information presented is True
& original to the best of our knowledge and belief.

PROJECT COURSE EXTERNAL

PRINCIPAL GUIDE CO-
ORDINATOR EXAMINER
D E C L ARATIO N
 Vidyalankar School of Information Technology

(Affiliated to University of Mumbai)

Vidyalankar Marg, Wadala (E),

Mumbai 400 037

I Amelia Fredy Louis student of M Com Accounting and Finance,

Vidyalankar School of Information Technology, hereby declare that I
have completed the project on ‘A STUDY OF PRE AND POST GST –
CONSUMER WITH REFERENCE TO MUMBAI’ in academic
year 2020-21

The information submitted is true and original to the best of my

knowledge.

Signature of the Student

AMELIA FREDY LOUIS

 ACKNOWLEDGMENT

I hereby acknowledge all those who directly or indirectly helped me in drafting of this
project report. It would not have been possible for me to complete the task without their help and
guidance.

First of all I would like to thank the principal Dr Rohini Kelkar and the coordinator Ms
Prathma Nemane who gave me the opportunity to do this project work. They also conveyed the
important instructions from the university time to time. Secondly, I am very much obliged of my
guide Mr Vijay Gawde for giving guidance in completing the project.

They not only rendered time out of their busy schedule but also answered my queries
without any hesitation. He/ She gave me information on their system of working in their
organisation and told me how Promotional Strategies are done in their organisation.

Last but not the least; I am thankful to the University of Mumbai for offering the project in
the syllabus. I must mention my hearty gratitude towards my family, other faculties and friends
who supported me to go ahead with the project.
 INDEX

• Chapter 1: Introduction to the study 1

• Chapter 2: Research Methodology 28

• Chapter 3: Literature Review 34

• Chapter 4: Data Anaylsis 42

• Chapter 5: Conclusion and Suggestion 65

• Chapter 6: Biblography 66

• Chapter 7: Annexure 68
CHAPTER: 1
Concept and Introduction of Tax:

Taxation is the imposition of compulsory levies on individuals or entities

by the governments. Taxes are levied in almost every country of the
world, primarily to raise revenue for government expenditures, although
they serve other purposes as well. The word tax comes from the Latin
word “Taxare” or “Taxo” which means to assess, to estimate or to rate.
Taxes that we pay nowadays, are the price for a civilized society.

History of Tax (in general):

The first known system of taxation was in Ancient Egypt around 3000–
2800 BC in the First Dynasty of Egypt of the Old Kingdom of Egypt. The
earliest and most widespread form of taxation was the corvée and tithe.
The corvée was forced labour provided to the state by peasants too poor
to pay other forms of taxation (labour in ancient Egyptian is a synonym
for taxes). Records from the time document that the Pharaoh would
conduct a biennial tour of the kingdom, collecting tithes from the people.
Other records are granary receipts on limestone flakes and papyrus. Early
taxation is also described in the Bible. In the Persian Empire, a regulated
and sustainable tax system was introduced by Darius I the Great in 500
BC. Islamic rulers imposed Zakat (a tax on Muslims) and Jizya (a poll
tax on conquered non-Muslims). In India this practice began in the 11th
century. In monetary economies prior to fiat banking, a critical form of
taxation was seigniorage, the tax on the creation of money.

Taxation System:

Tax system is required to raise money to finance the government.

Government then uses this taxation money collected from its citizens to
further provide them only with facilities, amenities and overall
development like infrastructural development, health well-being
development, educational facilities, defense of the country, finance
various projects and schemes, basic facilities for all, etc. Taxes form
almost 90% or more of government’s revenue. This amount that gets
collected via taxes is kept in the public treasury to meet the above
expenditure of the government.
Essential characteristics of tax:

i. It is an enforced contribution and is a personal obligation and it is

levied by the government.
ii. It is proportionate in character, usually based on ability to pay.
iii. It is levied on person’s income and wealth like property etc. with
the jurisdiction of the state.
iv. It is levied for public purpose.
v. It is levied indirectly on goods and services which are consumed
by end consumer.

Taxation in India:

In India, this tax was introduced for the first time in 1860, by Sir James
Wilson in order to meet the losses sustained by the Government on
account of the Military Mutiny of 1857. In 1918, a new income tax was
passed and again it was replaced by another new act which was passed in
1922.This Act remained in force up to the assessment year 1961-62 with
numerous amendments.
In consultation with the Ministry of Law finally the Income Tax Act,
1961 was passed. The Income Tax Act 1961 has been brought into force
with 1 April 1962. It applies to the whole of India and Sikkim (including
Jammu and Kashmir).

Since 1962 several amendments of far-reaching nature have been made in

the Income Tax Act by the Union Budget every year.

Indian tax system can be divided into two parts namely Direct tax and
Indirect tax.

Direct taxes are directly paid to the government by the tax payer. The
direct taxes in India are governed by Central Board of Direct taxes
(CBDT). Some of the direct taxes made obligatory by Government of
India are:
• Income Tax.
• Capital Gains Tax.
 • Securities Transaction Tax (STT).
• Fringe Benefit Tax or Perquisite Tax.
• Corporate Tax.

Indirect taxes as the name suggests, is not directly levied on the

taxpayers. This tax is often levied on goods and services. In India, Central
Board of Indirect Taxes and Customs governs the indirect taxes. Indirect
taxes got its major tax reform in the year 2017 with the introduction of
GST (Goods and Service Tax). The GST council is the key decision-
making body that will take all important decisions regarding the
GST. The GST Council dictates tax rate, tax exemption, the due date of
forms, tax laws, and tax deadlines, keeping in mind special rates and
provisions for some states. The predominant responsibility of the GST
Council is to ensure to have one uniform tax rate for goods and services
across the nation. The Following is a chart showing all indirect taxes
before and after GST.

ERSTWHILE INDIRECT TAX STRUCTURE IN INDIA:

Central Taxes:
• Custom Duty - import/export of goods.
• Additional Duty of Customs - on import of goods - in lieu of excise
duty.
• Special Addional Duty - on import of goods - in lieu of VAT.
• Central Excise - manufacturing of goods.
• Service Tax - Proviision of services.
• Central Sales Tax (CST) - inter-state sale of goods.
State/Local Taxes:
• VAT - sale of goods within a state.
• Entry Tax/ Octroi movement of goods into local territories .
 ERSTWHILE INDIRECT TAX SCENARIO IN INDIA:

Outside India
Import of Goods Overseas Service Provider

Within India Service Tax

Customs
Duty Recipient pay under
Reverse charge

Goods Input
Supplier Trader/
Manufacturer/ Supplier
Service Provider
Excise Duty + VAT/CST Service Tax

Sale of goods to the consumer Provision of Services

Service
CST V Service
A
T
Inter-State
Inter-State

Intra-State Intra-State
GST STRUCTURE IN INDIA:

Indirect Taxes included in GST

Erstwhile Indirect Tax Structure GST Structure

CVD/SA Service Tax CGST

D

Addional
Excise duty SGST
CST
GST

Luxury
Excise Tax
Duty IGST
Entry VAT
Tax/Octroi/
LBT

The red boxes indicate the Central taxes and the purple boxes indicate the state taxes.
GST SCENARIO:
Import of goods Overseas Service
Outside India providerOver

Within India Custom GST

Duty
Recipient pay under
reverse charge

Goods Input
Trader/
Manufacturer/ Supplier
Supplier Service Provider
GST GST

Sale to consumers

GST
GST

Inter-State Intra-State
Background of GST outside India as compared to India in its
proposed phase:
India
Particulars (proposed) Canada UK

Federal GST
Name of &
GST in the Goods and Harmonized
country Service Tax Sales Tax VAT

0% (for food
staples), 5%, GST 5% 20% Reduced
12%, 18% and and HST rates- 5%,
Standard 28%(+cess for varies from exempt, zero
Rate luxury items) 0% to 15% rated

Canadian $
30,000
(Approx.
Threshold 20 lakhs (10 Rs. 15.6
exemption lakhs for NE lakhs in £73,000 (Approx.
limit states) INR) Rs. 61.32 lakhs)

Accrual
basis: The Accrual Basis:
Accrual basis: date of issue Invoice OR
Issue of of invoice Payment OR
invoice OR OR the date Supply- earliest
Receipt of of receipt of Cash basis (T/O
Liability payment - payment - up to 1.35mn):
arises on earlier earlier Payment

Monthly,
quarterly or Usually
Returns annually quarterly. Small
and Monthly and 1 based on business option-
Payments annual return turnover annual
 Reverse
Apply on charge
goods (new) as applies to
well as importation
Reverse services of services
charge (currently and
Mechanism under Service intangible
(RCM) tax) properties. Applicable

Real estate,
Manufacture Financial
of exempted Services,
goods or Rent Medical,
Provision of (Residence), Education,
exempted Charities, Finance,
Exempt services (to be Health, Insurance, Postal
services notified) Education services

India
Particulars (proposed) Singapore Malaysia

Name of
GST in the Goods and Goods and Goods and
country Service Tax Service Tax Service Tax

0% (for food 7%
staples), 5%, Reduced
12%, 18% and rates- Zero
Standard 28%(+cess for rated,
Rate luxury items) exempt 6%
Singapore $
1 million
(Approx.
Rs. 4.8
Threshold 20 lakhs (10 crore MYR 500,000
exemption lakhs for NE (Approx. Rs.
limit states) 75 lakhs)
 Accrual
Basis: Issue
of invoice
OR Receipt
of payment
OR Supply Accrual Basis:
Accrual basis: - earliest Delivery of
Issue of Cash goods OR
invoice OR basis:(T/O Issue of
Receipt of up to invoice OR
Liability payment - SGD$1mn): Receipt of
arises on earlier Payment payment

Usually
quarterly
Business
Returns option- Large
and Monthly and 1 Monthly organizations-
Payments annual return returns Monthly
Apply on
goods (new) as
well as Reverse
Reverse services charge Reverse charge
charge (currently applies to applies to
Mechanism under Service supply of imported
(RCM) tax) services services

Manufacture Basic food,

of exempted Health
goods or Real estate, Transportation,
Provision of Financial Residential
exempted services, property,
Exempt services (to be Residential Agricultural
services notified) rental land
India’s biggest indirect tax reform in the form of Goods and Services Tax
(GST) has completed nearly 2 years. A comprehensive dual GST was
introduced in India from 1 July 2017.
The idea of moving towards the GST was first mooted by the then Union
Finance Minister in his Budget for 2006-07. The talks of ushering in GST
took concrete shape with the introduction of Constitution (122nd
Amendment) Bill, 2014. The Bill was passed by the Parliament on 8
August 2016. This was followed by the ratification of the Bill by more
than 15 states. On 12 April 2017, the Central Government enacted four
GST bills:
• Central GST (CGST) Bill
• Integrated GST (IGST) Bill
• Union Territory GST (UTGST) Bill
• The GST (Compensation to States) Bill
These bills came onto be known as Acts and GST came into effect with
effect from 1st July 2017.
Clause 366 of the GST Act defines GST as any tax on supply of goods, or
services or both except taxes on the supply of the liquor for human
consumption. Further, it defines Services means anything other than
goods. GST does not tax petroleum products and tobacco and neither real
estate sector. Also GST is a destination based tax.

Advantages of GST:

1. Eliminates the cascading tax effect: GST is comprehensive in

nature that is designed to eliminate the cascading effect. The
cascading effect means the tax on a tax system that pre-existed
where the tax liability was passed on at every stage of the
transaction. As a result, the value (price) of the item increased.
GST removes this cascading effect as the effect of the tax directly
lies on the cost of goods and services.

2. Input tax credit: At the time of paying tax on output, the

manufacturers or service providers can reduce their tax payable by
the amount of tax they have already paid on inputs. The average
burden of taxes for the manufacturers or service providers is likely
to come down. Thus, lower price that would inculcate more
consumption.
3. Transparency: GST is a transparent tax system where registered
retailers will not have a cost and hidden taxes. The cost of doing
business would be lower.

4. Tax evasion: The input credit is available to the recipient i.e. the
manufacturers or service providers only if the details are provided
by the supplier in his return. It encourages the suppliers of goods
and services and thus helps to check evasion of taxes.

5. Higher threshold for registration: Earlier tax regimes required

businesses over a turnover of more than 5 lakh rupees liable to pay
VAT. The limit was different in different states. However, the
threshold has been increased to 20 lakh rupees in GST regime. This
means small traders and service providers are exempted.

6. Composition schemes for small businesses: The tax and

compliance burden on many small businesses have been reduced.
Further, small businesses i.e. those businesses with a turnover of 20
to 75 lakh rupees can benefit from the option of utilizing
composition schemes.

7. The number of compliances: Earlier, as many taxes were levied,

each had its own returns and compliances. For instance, excise,
returns had to be filled monthly, service tax; quarterly or monthly,
and VAT differed along states. However, after GST is imposed,
there are lesser compliances. Just one unified return has to file.
There are 11 returns under GST. Main returns are GSTR1, GSTR2
and GSTR3B.

8. Improved efficiency of logistics: Restrictions on inter-state

movement of goods have been lessened with the imposition of one
nation, one tax. Earlier, multiple warehouses had to be maintained
in order to avoid the current GST and state entry taxes. Thus,
increasing the operational cost. As an outcome of GST, warehouse
operators are setting up units at strategic locations, instead of every
other city.

9. Defined treatment for e-commerce operators: Before the

implementation of GST, the e-commerce sector did not define the
supply of goods. Some states would treat these as facilitators or
mediators which do not require them to register for VAT. All these
differential treatments have been removed under GST. The
interstate movement of goods is confusion free now.
10. Regulation of unorganized sector: Earlier construction and
textile industry were largely unregulated and unorganized. Under
GST, there are provisions for online compliances and payments.
Thus, bringing in the accountability and regulation to these
industries.

Disadvantages of GST:

1. Being GST-compliant: Small and medium enterprises have been

away from the tax regime. They must quickly grasp the nuances of
this tax regime; they have to issue GST compliant invoices.

2. Short term business challenges: The transition to GST could have

interrupted the working capital of the business in the initial phase
due to the input credit lock-up.

3. Increased operational cost: The businesses have to train

employees for being GST compliant, thus, increasing the overhead
expenses. The alternative option available is to hire tax
professionals who are equipped to handle the changes.

4. Multiple registrations: In case of Pan-India organizations with

branches in more than one state in the country, it is extremely
difficult to comply. In contrary to the usual belief, there is no
single compliance for the same. One will have to register with
every state and follow the procedures for compliance.

5. Various GSTs: The idea of one nation, one tax is somewhere

hindered due to the compliance mechanism of GST which involves
Centre GST, State GST, and Integrated GST.

6. Website Issues: Every normal registered person is required to file a

minimum of 3 returns every month on or before the relevant due
dates. At times, the GST portal is unable to handle the load on
these due dates, resulting in site blocking or denial of access error.
However, the Government is working to overcome such problems.

7. Lack of Computer Literacy: As the whole GST system is

technology driven, it is very important for a taxpayer to be a
computer literate in order to comply with GST law. The current
 GST system is a paperless system where compliance is done via
GST online portal. The computer literacy rate among small
businesses and traders is very low, which would result in a
hindrance to the GST compliance process.

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

Intra-State
Supply(Within CGST SGST
state)

Inter-State
supply(outside IGST
state)

Inter-state/intra GST
state supply of Compensation
notified goods Cess
Example of notified goods for GST compensation cess levy:

• Pan masala- HSN 2106 90 20.

• Tobacco and manufactured tobacco substitutes, including
tobacco products HSN 24.
• Aerated water- HSN 2202 10 10.
• Motor cars and other motor vehicles.- HSN 8703.

Tax
Products
Rates
Household necessities such as edible
oil, sugar, spices, tea, and coffee (except instant)
5% are included. Coal , Mishti/Mithai (Indian Sweets)
and Life-saving drugs are also covered under this
GST slab
12% This includes computers and processed food
Hair oil, toothpaste and soaps, capital goods and
18% industrial
intermediaries are covered in this slab
Luxury items such as small cars, consumer
durables like AC and Refrigerators, premium cars,
28%
cigarettes and aerated drinks, High-end
motorcycles are included here.

Though edible items like sugar, tea and coffee are included in the 5%
slab, milk does not attract any tax under the new GST regime. The idea
behind this is to ensure that basic food items are available for everyone
but instant food is kept out of this category.

• Basic household items like toothpaste and hair oil, which currently
attract 28% tax, will be taxed at 18% only.
• Sweets will also be taxable at 5%.
• Tax rates on coal has also been reduced from 11.69% to just 5% in
order to relieve the pressure on power industries.
 • GST also gives a major push to domestic industries as they will be
able to procure seamless input credit for capital goods. Make in
India campaign is set to flourish after this reform.

GST Rates on Goods:

The government has proposed a 4-tier tax structure for all goods and
services under the slabs- 5%, 12%, 18% and 28%. After the recent
revision of GST rates, these are the commodities that fall under the four
tax slabs along with those that do not attract any tax. Please note that only
those commodities are included in this list whose rates have been revised
in various council meetings.

Let us have a look at various products and the tax slab in which they fall
into:

No Tax

Apart from other items that enjoy zero GST tax rate, these are the
commodities added to the list after 11th June rate revision –

• Hulled cereal grains like barley, wheat, oat, rye, etc.

• Bones and horn-cores unworked and waste of these products.
• Palmyra jaggery
• All types of salt
• Dicalcium Phosphate (DCP) of animal feed grade conforming to IS
specification No. 5470 :2002
• Kajal [other than kajal pencil sticks]
• Picture books, colouring books or drawing books for children
• Human hair – dressed, thinned, bleached or otherwise worked
• Sanitary Napkins
• Unit container-packed frozen branded vegetables
(uncooked/steamed)
• Vegetables preserved using various techniques including brine and
other preservatives that are unsuitable for immediate human
consumption.
• Music Books/manuscripts

5% Tax Slab
Given below are the items that have been added to the 5% GST tax rate
slab along with the other existing items-
 • Cashew nuts/cashew nuts in shell
• Ice and snow
• Bio gas
• Insulin
• Aggarbatti
• Kites
• Coir mats, matting and floor covering
• Pawan Chakki that is Wind-based Atta Chakki
• Postage or revenue stamps, stamp-postmarks, first-day covers, etc.
• Numismatic coins
• Braille paper, braille typewriters, braille watches, hearing aids and
other appliances to compensate for a defect or disability
• Fly-ash blocks
• Walking sticks
• Natural cork
• Marble rubble
• Accessories/parts for carriages designed for differently-abled
individuals

12% Tax Slab

After the GST council meeting on 11th June, the following items were
added to the 12% GST rates category-

• Preparations of vegetables, fruits, nuts or other parts of plants,

including pickle, murabba, chutney, jam, jelly
• Ketchups, sauces and mustard sauce but excluding curry paste,
mayonnaise and salad dressings, mixed condiments and mixed
dressings
• Bari made of pulses including mungodi
• Menthol and menthol crystals, peppermint, fractionated/de-
terpenated mentha oil, dementholised oil, Mentha piperita oil and
spearmint oil
• All diagnostic kits and reagents
• Plastic beads
• Exercise books and note books
• Glasses for corrective spectacles and flint buttons
• Spoons, forks, ladles, skimmers, cake servers, fish knives, tongs
• Fixed Speed Diesel Engines
• Two-way radio (Walkie talkie) used by defence, police and
paramilitary forces etc.
• Intraocular lens
• Corrective spectacles
 • Playing cards, chess board, carom board and other board games,
like ludo, etc.
• Debagged/roughly squared cork
• Items manufactured from natural cork
• Agglomerated cork

18% Tax Slab

The items mentioned below have been added to the 18% GST tax rate
slab among the other existing items-

• Kajal pencil sticks

• Dental wax
• Plastic Tarpaulin
• School satchels and bags other than of leather or composition
leather; toilet cases, Hand bags and shopping bags of artificial
plastic material, cotton or jute; Handbags of other materials
excluding wicker work or basket work
• Headgear and parts thereof
• Precast Concrete Pipes
• Salt Glazed Stone Ware Pipes
• Aluminium foil
• All goods, including hooks and eyes
• Rear Tractor tyres and rear tractor tyre tubes
• Rear Tractor wheel rim, tractor centre housing, tractor housing
transmission, tractor support front axle
• Weighing Machinery other than electric or electronic weighing
machinery
• Printers other than multifunction printers
• Ball bearing, Roller Bearings, Parts & related accessories
• Transformers Industrial Electronics
• Electrical Transformer
• Static Converters (UPS)
• CCTV including CCTV with video recorders
• Set top Box for TV
• Computer monitors not exceeding 17 inches
• Electrical Filaments or discharge lamps
• Winding Wires, Coaxial cables and Optical Fiber
• Perforating or stapling machines (staplers), pencil sharpening
machines
• Baby carriages
• Instruments for measuring length, for use in the hand (for example,
measuring rods and tapes, micrometers, callipers)
 • Bamboo furniture
• Swimming pools and paddling pools
• Televisions/Monitors (upto 32 inches)
• Power banks powered by Lithium-ion batteries
• Sports goods, games consoles and related items with HS code 9504
• All items with HS code 8483 including gear boxes, transmission
cranks and pulleys
• Used or retreaded pneumatic rubber tires

28% Tax Slab

The council meeting was held to ‘reduce’ the tax rates on certain items
based on customer preferences. Hence, no additional items were added to
the highest GST rates slab of 28%.

*The GST rates for various products are subject to change from time to
time without prior information.

GST Rates on Services:

Government has also imposed GST on Services with the same 4-tier tax
structure as of goods. GST rates on services comprising of 5%, 12%, 18%
and 28% comes with various pros and cons for the consumers. However,
government has exempted healthcare and educational services from the
purview of the GST.

The Goods and Services Tax council has passed the rate slabs at NIL,
5%, 12%, 18%, 28%. Some of the services categorized under different
slabs are mentioned below:

Nil GST
• Chargeable services offered on Basic Savings Bank Deposit
(BSBD) account opened under the PMJDY (Pradhan Mantri Jan
Dhan Yojana)

5% Tax Slab
• Railways-Transportation of goods, passengers
• Goods transported in a vessel from outside India
 • Renting a motor cab without fuel cost
• Transport services in AC contract/stage or radio taxi
• Transport by air (scheduled)/air travel for purpose of pilgrimage
via chartered/non-scheduled flights
• Tour operator services
• Leasing of aircrafts
• Print media ad space
• Working for printing of newspapers

12% Tax Slab

• Rail transportation of goods in containers from a third party other
than Indian Railways
• Air travel excluding economy
• Food /drinks at restaurants without AC/heating or liquor license
• Renting of accommodation for more than Rs.1000 and less than
Rs.2500 per day
• Chit fund services by foremen
• Construction of building for the purpose of sale
• IP rights on a temporary basis
• Movie Tickets less than or equal to Rs. 100

18% Tax Slab:

• Food/drinks at restaurants with liquor license
• Food /drinks at restaurants with AC/heating
• Outdoor catering
• Renting for accommodation for more than Rs.2500 but less than
Rs.5000 per day
• Supply of food, shamiyana, and party arrangement
• Circus, Indian classical, folk, theatre, drama
• Supply of works contract
• Movie Tickets over Rs. 100

28% Tax Slab:

• Entertainment events-amusement facility, water parks, theme
parks, joy rides, merry-go-round, race course, go-carting, casinos,
ballet, sporting events like IPL
• Race club services
• Gambling
• Food/drinks at AC 5-star hotels
• Accommodation in 5-star hotels or above
GST on Loans and Advances:
Earlier Service Tax was levied on Loans which has now been replaced by
GST which would now be levied on loans. The rate of Service Tax was
15% whereas the rate of GST is 18%. A lot of people are of the opinion
that the effective cost of having a loan would increase as the rate of GST
is 3% higher than the rate of Service Tax. Several people are of the
opinion that their EMI’s would increase as the rate has been increased by
3%. However, this is not the case as GST is not levied on repayment of
loan or on payment of Interest on Loan.

GST is only levied on the processing charges and any other charges paid
to the bank excluding the principal repayment and interest payment.
These other charges include the Loan Processing Fees, Loan Prepayment
Charges and other charges, if any. As a major chunk of the loan
repayment comprises of principal repayment and interest payment, the
impact of GST on Loans would be very negligible. The impact of GST on
Home Loans and Personal Loans has been explained below for a much
better understanding of the impact.

Mentioned below are the important loans and their GST rates:

(a) Personal Loan– 18%

(b) Home Loans– 18%

(c) Car Loan– 18%

GST on Cars:
Subsequent to bringing cars under the GST regime, the GST rate on cars
has been fixed at 28% for all personal use vehicles featuring a petrol or
diesel driven engine. However, in addition to GST, a composition cess is
also applicable to cars over and above the GST Rate. Thus the overall tax
rate applicable to vehicles under GST ranges from 29% to 50%. Lower
rates of taxation are however applicable to cars driven by cleaner
technologies such as fuel cells (including hydrogen fuel cell) and electric
vehicles.
GST on Gold:
Subsequent to introduction of GST on items made from gold such as gold
jewelry, the current GST rate on gold is 3%. However, a 5% GST rate is
applicable to making charges applied to gold jewelry in case the
manufacturing is outsourced to a job worker. This can however, be
charged as input tax credit (ITC) by the jeweler and only a 3% GST
charge is applied to the final bill paid by the purchaser of gold jewelry
items.

GST On Real Estate:

GST is applicable to real estate purchases only if you are purchasing an
under construction property. The GST rate applicable to such commercial
or residential transactions is 12% till 31st March 2019. From 1st April,
the applicable GST Rates on residential real estate will be 5% for non-
affordable housing properties and 1% for affordable housing properties.
No GST is applicable in case you are purchasing a ready to move in
property. Additionally, different GST rates are applicable to various
building materials used in the construction of houses/flats. This can range
from 5% (sand, marble rubble, etc.) to 28% (cement, etc.).

GST on Food:
Food items especially fresh food mostly carry a Nil GST rate. However,
packaged food stuff and semi-processed/processed foods do feature GST
rates starting from 5% up to 18%. While no food stuff are currently
included in the highest 28% GST bracket, the 18% rate of GST is
applicable to some common food products such as chocolates as well as
baked goods such as cakes.

Upcoming products in GST Rates Slab:

The Government is going on with some new tactics to bring in some of
the products under GST system. As hinted by Finance Minister, Arun
Jaitley, there could be an inclusion of products under GST with the
reduction of GST rates on some products. Major products which can
come under GST rates slab includes :

1. Petroleum products- Petrol and Diesel

2. Land
3. Electricity
4. Others
Total Revisions in GST Rates:
Till date, there have been 32 GST council meetings till January 2019 in
which the council has recommended various relief measures regarding
GST rates on goods and services. GST Council Meeting is chaired by the
Finance Minister providing clarification and recommendation regarding
various changes made in the GST rates of the goods and services.

GST Rates Impact on Economy:

GST has transformed the economy at its peak. It’s a game-changing
reform for the Indian economy as it brings about net appropriate price for
the goods and services considered under single taxation system.
Mentioned below are some of the important GST rates impacts in the
Indian economy:

1. Increase in Competition: After the GST has been imposed, there

has been seen a fall in prices of goods and services which
ultimately has brought the final consumer to have less tax burden
on the goods and services. There is seen a great scope of increased
production, thus, increase in competition.
2. Simple Tax Structure: GST has simplified the calculation of tax
with the adoption of single taxation system. Under this, multiple
taxation has been aborted which ultimately saves time and money.
3. Uniform Tax Regime: Previously, there used to be multiple taxes
at every stage of supply chain, where the taxpayer got confused.
But now, with GST, it is easier for the taxpayer to pay uniform tax.
4. Increase in Exports: There has been seen a fall in the cost of
production after the GST got imposed. This in return has brought
competitiveness towards the international market resulting in rise
in exports.

Protest against GST rates:

With the implementation of GST, various traders, cloth merchants,
private security agencies and many others went on protest against GST
rates. Cloth merchants protested against the imposition of 5% sales tax on
textiles under the GST regime. The newly added tax system in the
country also made the iron, wire dying and steel traders to hold a protest
against high rates of GST. Steel traders were of opinion that the new tax
system has nosedived 40% trade due to high rates and elaborated paper
works under the new system.
Owners and employees of private security agencies also went on a silent
protest against the levy of 18% GST on security services because the
GST rate took away the major share of wage and benefits from the
security personnel.

HSN- Meaning
• Set of defined rules which are used for taxation
purposes, to identify tax rate applicable to a product in
a particular country.
• Combination of different sections, further drilled down
to chapters, which are further classified into headings
and sub-headings.
• Uniform code used worldwide to classify products.
• Chapter 1 to 98 (GST, Customs duty
Goods
• purpose)

Services Chapter 99 (GST purpose)

HSN- compulsory to mention on invoice.

HSN Summary- mandatory to report in GST returns.
 Manufacturing Operations (Sale)- Pre GST:

Maharashtra Tamil Nadu

Excise CST

Excise CST
Inter-state raw material
Finished goods
BCD CVD/SAD Customer
Factory

Import of goods Excise VAT

Full credit
No credit
Excise VAT
Customer
Service Tax
Local raw material
Services

Manufacturing Operations (Sale)- Post GST:

IGST

Maharashtra Tamil Nadu

Inter-state raw material

Finished goods IGST

BCD IGST Customer

Factory

Import of goods
CGST SGST
Full credit

Customer No credit
CGST SGST

*GST

Local raw material Services

*On services, IGST would be levied on import and inter-state services

Whereas CGST and SGST would be levied on intra-state services.
 Service Transaction Pre GST:

Excise CST Maharashtra Tamil Nadu

Intra-state purchase of goods Service Tax

Import of goods

BCD & SAD CVD Service Customer

Provider

Excise VAT
Service Tax
Full credit

Inter-state purchase of goods Services No credit

Service Transaction Post GST:

GST Maharashtra Tamil Nadu

ST

Inter-state purchase of goods

BCD IGST
GST
ST
Service Customer
Import of goods
Provider

GST

Services Full credit

GST
ST No credit

Intra-state purchase of goods

 SUPPLY- MEANING:

• Sale, transfer, barter, exchange, license, rental, lease or disposal, for

consideration in course/ furtherance of business.
• Import of services for a consideration whether or not in the
course/furtherance of business.

Levy of GST- Criteria

Levy of GST

Criteria to decide

Location of Supplier Place of supply

Inter-state transaction:
Intra-state transaction:
- Location of Supplier
- Location of Supplier
and place of supply in
and place of supply in
different state
same state
- Levy- IGST.
- Levy- CGST & SGST.

Types of GST registration:

• Mandatory Registration- crossing threshold limit of INR20 lakhs

(INR 10 lakhs for North-East states). #applicable from 1st April 2019,
threshold limit has been increased to INR 40lakhs (INR 20 lakhs for specifies States).
• Voluntary Registration- below the above threshold limit.
• Input- Service Distributor Registration- Mandatory for Common
GST credit claim and distribution to other states.
• Composition Scheme- Vendors dealing in goods with turnover not
exceeding INR 1.5 crore (INR 75 lakhs in case of specifies states).
(This is applicable w.e.f. 1st April 2019).
Input tax credit:
Input credit means at the time of paying tax on output, you can reduce the
tax you have already paid on inputs and pay the balance amount.

Order of utilization of Input tax credit:

Input Tax Credit

IGST CGST SGST

IGST IGST
IGST

CGST CGST SGST

SGST No cross credit between CGST & SGST

Types of GST Returns:
Return Form Particulars Frequency Due Date

GSTR-1 Details of outward supplies of Monthly 11th* of the

taxable goods and/or services next
affected month with
effect from
October 2018

*Previously,
the due date
was 10th

GSTR-2 Details of inward supplies of taxable Monthly 15th of the

Suspended goods and/or services affected next month
claiming the input tax credit.

GSTR-3 Monthly return on the basis of Monthly 20th of the

Suspended finalization of details of outward next month
supplies and inward supplies along
with the payment of tax.

GSTR-3B Simple Return in which summary of Monthly 20th of the

outward supplies along with Input next month
Tax Credit is declared and payment
of tax is affected by taxpayer

GSTR-4 Return for a taxpayer registered Quarterly 18th of the

under the composition levy month
succeeding
quarter

GSTR-5 Return for a Non-Resident foreign Monthly 20th of the

taxable person next month

GSTR-6 Return for an Input Service Monthly 13th of the

Distributor next month

GSTR-7 Return for authorities deducting tax Monthly 10th of the

at source. next month

GSTR-8 Details of supplies effected through Monthly 10th of the

e-commerce operator and the next month
amount of tax collected

GSTR-9 Annual Return for a Normal Annually 31st

Taxpayer December of
next financial
year*
GSTR-9A Annual Return a taxpayer registered Annually 31st
under the composition levy anytime December of
during the year next financial
year*

GSTR-10 Final Return Once, when GST Within three

Registration is months of
cancelled or the date of
surrendered cancellation
or date of
cancellation
order,
whichever is
later.

GSTR-11 Details of inward supplies to be Monthly 28th of the

furnished by a person having UIN month
and claiming a refund following the
month for
which
statement is
filed
* Subject to changes by Notifications/ Orders
CHAPTER- 2
A research methodology involves specific techniques that are adopted in
research process to collect, assemble and evaluate data. It defines those
tools that are used to gather relevant information in a specific research
study. Surveys, questionnaires and interviews are the common tools of
research. Research Methodology can be defined as below:

“The organized questioning and exploration either by hypothesis

formation or scientific testing of any inquisition or query by following a
set of standard rules and procedures is defined as research methodology”.

Research Methodology is a logical and systematic search for new and

useful information on a particular topic. It is also a systematic way to
solve a problem. It is a science of studying how research is to be carried
out.

About my research:
My research is exploratory in nature. Since, GST implementation is near
around 3 years old; my intention of this study was to get a general idea
from the common man what they thought of the PRE GST and the POST
GST regime and for me also to understand this change through the
primary and secondary data that I collected.

Need for Study:

The need for this study arises to fill the gap that has been identified by previous
researchers during their research on GST when it was proposed, during its
implementation and one year after its implementation. From this study we will
come to know people’s perception towards GST and about its various aspects.

Scope of Study:
The scope of study is limited to end consumers who may be involved in
various occupations like business but yet the whole idea was to gather
views and opinions from the layman, the end consumer. The respondents
are a mixed group which will give a wider difference in understanding.
The majority of the respondents in this study are from Mumbai, so this
study cannot be justified to any other parts of Maharashtra or even India
for that matter.
Objectives of Study:
→ To analyse people’s perception regarding Goods and Services Tax
(GST).
→ To assess consumers view on Pre GST and Post GST.
 → To interpret the findings and also to have a deeper learning on GST
and the various components within GST and also Pre GST indirect
taxes.
→ To come to a conclusion and/ or give suggestions regarding this
most talked tax reform in India.

Research Design:

A research design is the set of methods and procedures used in

collecting and analysing measures of the variables specified in the
problem research. The design of a study defines the study type
(descriptive, correlation, semi-experimental, experimental, review, meta-
analytic) and sub-type (e.g., descriptive-longitudinal case study), research
problem, hypotheses, independent and dependent variables, experimental
design, and, if applicable, data collection methods and a statistical
analysis plan. A research design is a framework that has been created to
find answers to research questions.

➢ Exploratory Research:

All research projects must start with exploratory research.

This is a preliminary phase and is absolutely essential in
order to obtain a proper definition of problem in hand.
The major emphasis on the discovery is ideas and insights.
The exploratory study is particularly helpful in breaking
broad and vague problems into smaller, more precise sub
problem statements. Exploratory research is also used to
increase the familiarity with the problem under
investigation.

➢ Descriptive Research:.

Descriptive research is used to describe characteristics of

a population or phenomenon being studied. It does not
answer questions about how/when/why the characteristics
occurred. Rather it addresses the "what" question (what
are the characteristics of the population or situation being
studied?) The characteristics used to describe the situation
or population are usually some kind of categorical scheme
also known as descriptive categories.
 There are other types also of research design which are
experimental, correlational and diagnostic.
Developing a Research Plan:

The study tries to find the significance of popular perception of GST. The
data for this research project has been collected via primary method and
the rest of the project has been prepared through self-understanding after
reading and going through secondary data basically books, websites,
articles, newspapers etc. The primary data collected was through a
structured questionnaire which framed by me and was passed onto
people.

➢ Developing a research plan:

→ Sample Design.

→ Sample Unit.

→ Sample Size.

→ Sample Technique.

Population: Population means the whole universe of study in which the

researcher does his study/ research and the population for my research is
people of Mumbai.

Sample Design:

A sample design is the framework, or road map, that serves as the basis
for the selection of a survey sample and affects many other important
aspects of a survey as well. In a broad context, survey researchers are
interested in obtaining some type of information through a survey for
some population, or universe, of interest. One must define a sampling
frame that represents the population of interest, from which a sample is to
be drawn. The sampling frame may be identical to the population, or it
may be only part of it and is therefore subject to some under coverage, or
it may have an indirect relationship to the population.

Sample Unit:
A sampling unit can refer to any single person, animal, plant, product or
‘thing’ being researched. In the context of market research, a sampling
unit is an individual person. The term sampling unit refers to a singular
value within a sample database. For example, if you were conducting
research using a sample of university students, a single university student
would be a sampling unit.

Sample Size:
Sample size measures the number of individual samples measured or
observations used in a survey or experiment. For example, if you test 100
samples of soil for evidence of acid rain, your sample size is 100. If an
online survey returned 30,500 completed questionnaires, your sample size
is 30,500. In statistics, sample size is generally represented by the
variable "n".
Here, the sample size was 200 respondents.

Sample Technique/ Method:

There are various types of sampling broadly it is Probability and Non-

Probability Methods. Probability methods are Simple random sampling,
Systematic sampling, Stratified sampling, Clustered sampling. Non-
probability methods are Convenience sampling, Quota sampling,
Judgement (or Purposive) sampling and Snowball sampling.
Here, the sampling technique was Simple Random sampling as
questionnaire was sent out to random contacts via Social media platforms
and it was asked to be filled through the link hence it covered a diverse
group of respondents.

Data Collection:

Data collection is the process to gather information about the relevant

topic of research. Data collection usually takes place early in any project
and is formalized through data collection plan which often contains the
following activity:
➢ Pre collection activity on goals, target data, definition and
methods.
➢ Collection of Data.
➢ Presenting the findings in some form of tables and charts
or graphs.

For establishing the objective of study, both Primary Data and

Secondary Data have been used.
Classification of Data:

The correct information is the key to success. Data information is of two

types: Primary Data and Secondary Data. Primary Data is the one which
is collected by the researcher himself whereas secondary data is someone
else’s data which this researcher uses for his study.

Here, my primary data is based largely on the questionnaire I sent out.

For this purpose questions were prepared and a Google Form was
prepared, the link of which was circulated over various Social Media
applications like Whatsapp, Instagram, and Hike. A set of 21 questions
were prepared consisting various types of questions like multiple choice
questions (choose any 1 & choose multiple). The data collected was then
derived in the Excel from where with the help of Pivot table, tables were
created and charts were derived. Here, pie charts have been plotted
throughout.

Here, my secondary data is collected from the Internet, Books, Journals,

Research Papers, Thesis, Newspapers, Magazines and Govt. Gazettes.

Limitations of Study:

This study too has its limitations that limit the applicability and validity
of the study. The limitations are stated below:
i. The sample size was small and cannot be applied to the
entire population.
ii. GST is new to the tax system half way in July and also it
has its boons and banes which cannot be ignored.
CHAPTER- 3

ON
GST was first introduced by France in 1954 and now it is followed by
160 countries across the globe and India is one of them. GST is one of the
biggest tax reforms since 1947 for India, and, like an umbrella it has
subsumed majority of the indirect taxes and unified them into “ONE
TAX”. Hence “ONE NATION ONE TAX” as said by the ruling NDA
government. The following is the literature review by various researchers
in their published research papers and/or articles who state the positive
and/or the negative side of GST. This literature review has reviews right
from when GST was proposed to post GST introduction. These reviews
and opinions are subjective.

❖ Halakhandi, (2007) GST was supposed to be introduced in India

way back in 2010. It has been getting postponed due to various
reasons, major one being, getting to a consensus between the
various states and the centre for compensation. The author in the
paper has discussed the existing laws in India for indirect taxes, the
VAT laws in various states with their advantages and
disadvantages, the impact of the proposed GST, the compliances
under the proposed GST etc.

❖ Ahmad (2009)7 The authors in the paper have discussed the

proposed GST to be introduced in India, specifically in relation to
the place of supply rules for services to be adopted, the method to
apply dual GST. The authors have discussed the options to
introduce the dual GST in India which could be Concurrent Dual
GST, National GST or State GST. Under the concurrent dual GST
the better option was the one where GST is applied on both goods
and services. The other option explored was whether the Central
GST would be on goods and services but state GST would be only
on goods. This option also recommended one single return with
both CGST and SGST details and PAN based registration. Given
the difficulties in identifying the state where SGST on services is
 payable, one more variant of dual GST was where the centre
collects SGST on behalf of states and then apportioning it on some
scientific basis. The national GST is combining state and centre
taxes with any one body collecting taxes and then distributing
depending on some agreed basis. The third model where the CGST
and SGST would coexist that mainly requires a constitutional
amendment so that states can tax services and centre can tax goods.
Further the place of supply of services needs to be robust to allow
decision on which state would collect the SGST especially in case
of intangible services. The authors then discuss the various rates
available to tax, the slab structures, exemptions, etc. The paper
concludes that whilst GST is much awaited all these issues need to
be addressed for it to be effective.

❖ NCAER (2009)9 In this paper, the authors have pointed out that
the introduction of GST in India would lead to benefits like
increase in efficiency in use of energy, increase in general
economic welfare, increase in the exports, increase in the GDP,
increase in the return on capital, optimum returns and allocation of
the factors of production, reduction in general price level, etc. The
paper has stated how indirect taxes have always been a major
contributor in the GDP in India as compared to most countries
forming a part of the study. Similarly in India, indirect taxes form
major part of the total taxes collected in the economy. The paper
further states that with the introduction of GST, resources would be
used better; the tax could become environment friendly. Further,
the recommended rate for the comprehensive GST is 6- 10 %. It is
also suggested that there should be fewer taxes, most indirect taxes
 should be subsumed within the GST, and there should be very few
exemptions. The paper also studies the impact of the proposed GST
on the imports, tax collections, exports, etc.

❖ Govind (2011)12 The author in the paper has discussed the current
indirect tax system in India and its drawbacks, the benefits of the
proposed GST to be introduced in India and suggestions to
improve the proposed laws. The author states that given the various
complexities of the current service tax legislation, the cascading
effect of VAT and the blocked input tax costs, it would be very
necessary for India to introduce GST at the earliest. The paper also
analyses and discusses the proposed GST in India. Specifically the
author has discussed the proposed GST rates, exemptions, the dual
system of GST, the issues envisaged therein, suggested solutions
for it, the administrative changes required for it, etc. The author has
on these points compared the framework in India with other
countries where GST is already operational. The author has
discussed the complexities in the existing legislations around
contentious issues like taxability of goods and/or services, taxing
of renting of property, interpretation of place of provision of
services, what is included in services, etc. The author has also
stated that the most difficult issue in the GST implementation is the
method of distributing the GST between states and centre, the ITC
rules for each, the returns administration for each and so on.
However the author concludes that even with all these difficulties
GST is an important tax which would have far reaching positive
impact on the Indian economy so solutions to issues mentioned
 would need to be found and the tax implemented. It is also
essential to have a robust IT system in place and clarity of law
before its implementation.

❖ Deol (2012)16 The author in this paper has discussed the

background of GST proposed to be introduced in India. The
country has a federal government and indirect taxes contribute
greatly to the revenues of the states. It is not possible to introduce
GST in India unless there is consensus within the states and centre.
The author discusses the advantages, the issues the states have with
its implementation, etc. in the paper. The author has also stated the
‘zero rating model’ for interstate sales. Under this model the
exporting state dealer does not charge any indirect tax on the sales.
However, the importing state dealer declares all his imports and
pays tax on them in his state somewhat similar to an international
reverse charge system operating currently. Under this system the
compliance is simpler and GST remains a destination based tax.
Another option discussed is the one like in Canada where the
centre will distribute the federal GST on interstate sales based on
equity. However this model is ridden with problems and is highly
unlikely. A charge of both CGST and SGST is another model put
forth in the paper. Further, the paper discusses how it is evident
that introduction of GST will definitely increase the tax base,
reduce the costs of tax imbedded in prices of products and
generally increase the exports. Further, in relation to compliances
the paper states that the registration, returns, etc. are proposed to be
PAN based and separate for centre and state. The paper concludes
 that introduction of GST would be advantageous to Indian
economy.

❖ Garg (2014)27 GST is the most logical steps towards the

comprehensive indirect tax reform in our country since
independence. GST is leviable on all supply of goods and provision
of services as well combination thereof. All sectors of economy i.e.
the industry, business including Govt. departments and service
sector shall have to bear impact of GST. All sections of economy
viz., big, medium, small scale units, intermediaries, importers,
exporters, traders, professionals and consumers shall be directly
affected by GST. One of the biggest taxation reforms in India – the
Goods and Service Tax (GST) is all set to integrate State
economies and boost overall growth. GST will create a single,
unified Indian market to make the economy stronger. Experts say
that GST is likely to improve tax collections and Boost India’s
economic development by breaking tax barriers between States and
integrating India through a uniform tax rate. Under GST, the
taxation burden will be divided equitably between manufacturing
and services, through a lower tax rate by increasing the tax base
and minimizing exemptions.

❖ Agogo Mawuli (May 2014) studied, “ Goods and Services 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.
❖ Nitin Kumar (2014) studied, “Goods and Service Tax- A Way
Forward” and concluded that implementation of GST in India help
will in removing economic distortion in current indirect system and
is expected to encourage unbiased tax structure which is indifferent
to geographical locations.

❖ Nishitha Guptha (2014) in her study stated that implementation of

GST in the Indian framework will lead to commercial benefits
which were untouched by the VAT system and would essentially
lead to economic development. Hence GST may usher in the
possibility of a collective gain for industry, trade, agriculture, and
common consumers as well as for the Central Government and the
State Government.

❖ Jaiprakash (2014) in his research study mentioned that the GST

at the Central and State level are expected to give more relief to
industry, trade, agriculture and consumers through a more
comprehensive and wider coverage of input tax set off and service
tax set-off, subsuming a several taxes in the GST and phasing out
of CST. Responses of industry and also of trade have been indeed
encouraging. Thus GST offers us the best option to broaden our tax
base and we should not miss this opportunity of introducing GST
when the circumstances are quite favourable and economy is
enjoying steady growth with only mild inflation.
❖ Ehtisham Ahmed and Satya Poddar (2009) studied, “Goods and
Service Tax Reforms and Intergovernmental Consideration in
India” and found that GST introduction will provide simpler and
transparent tax system with increase in output and productivity of
economy in India. But the benefits of GST are critically dependant
on rational design of GST.

❖ Sushma C., Assistant Professor, T. John Institute of

Management And Science, Bangalore, India said in her
research paper “GST (A new tax regime)” that, “There was no
proper transition of GST, due to this many teething problems are in
the society like GST software problems, frequent amendments in
the tax slabs etc. GST is a good Taxation system no doubt about it.
But it should have been introduced after complete preparation.
GST will generate good revenue to the economy, but it should take
care of Income generation also”.

❖ Dr C. J. Priya & Harshitha, both, Assistant Professor, Vidya

Vikas First Grade College, Mysore, Karnataka, India, said in
their research that, “Implementation of GST is one of the best
decisions taken by the Indian government. For the same reason,
July 1st was celebrated as Financial Independence Day in India.
The transition to the GST regime which is accepted by 159
countries would not be easy. Confusions and complexity were
expected and will happen. India, at some point, had to comply with
such regime. Though this structure might be a perfect one but once
 in place, such a tax structure will make India a better economy
favourable for foreign investments. Until now, India was a union of
29 small tax economies and 7 union territories with different levies
unit to each state. It is a much accepted and appreciated regime
because it does away with multiple tax rates by centre and state”.

❖ Abbul Hasan Khan, Associate Professor, Monad University,

Uttar Pradesh, India says in his research paper that. “GST is
biggest reform no doubt about it but my study shows that people
are not ready for this radical change and a lot of confusion is built
in the mind and heart of common people. Despite being noble
intention and greater importance given by world bodies things
cannot turn better on the ground. And continuous meetings of GST
council and in every meeting the results are less or more as per
expectations if there is any election period is near so council reacts
differently than routine one. GST is more than just a tax change. It
is also a ‘behaviour change’ and its successful implementation will
depend on how well we as a nation adapt to the new requirements
of doing business. Post the initial teething troubles, it is expected
that GST will bring in much good for all sectors and all sections of
society.”

❖ Amit Ilager, Department of Political Science, C. M. Managuli

Arts, Science and Commerce College, Sindagi, Karnatka, India
says in his research that, “The GST System is basically structured
to simplify current Indirect Tax system in India. A well designed
 GST is an attractive method to get rid of deformation of the
existing process of multiple taxation also government has promised
that GST will reduce the compliance burden at present there will be
no distinction between imported and Indian goods & they would be
taxed at the same rate. Many Indirect Taxes like Sales Tax, VAT
etc., will be finished because there will be one tax system i.e. GST,
that will reduce compliance present burden. GST will face many
challenges after its implementation and will result to give many
benefits. In overall through this study we conclude that GST plays
a dynamic role in the growth and development of our country”.

❖ Ahamd et al (2016) found that the level of awareness of GST is

still not reached a satisfactory level. This is because the study
involved only general questions that should be known by the
respondents as end users. This caused the respondents to give a
high negative perception on the implementation of GST. The
respondents had received less information and promotion from the
authorities hence the negative response. Therefore, the government
must convince that GST will not have a lasting impact on the
public as particularly convincing end users that no increase will be
on prices of goods and services.

❖ Shakwipee (2017), a study conducted on enquiring the level of

awareness towards GST among the small business owners in
Rajasthan state, found that the main areas to be focused include
training errors and computer software availability.

❖ Times of India (26 July, 2017), Pg 1 & 17 it is stated that Sweet

makers are confused with fixing the tax for their products as the
ingredients used in the sweets are taxed separately as raw material
 and the taxing of finished goods is different. Plain barfi is taxed 5%
but chocolate barfi is taxed at 28%. Plain barfi mixed with other
dry fruits is taxed at 12%. This taxing system makes Sweet makers
to get confused on how much GST to be fixed for which product.

❖ Times of India (27 July, 2017), stated that the GST implication
across different places for the same product has wider differences
which the consumers are unaware, resulting them in surprise. Eg: a
Rasmalai sold at a counter in a shop is taxed with 5% but if it is
served in the hotel it is taxed with 18%, this has resulted in
difference of consumers shopping to purchase the similar products.
 CHAPTER- 4

DATA PRESENTATION, ANALYSIS AND INTERPRETATION

Data Analysis:
The data collected through various respondents (200 respondents) is
primary data and efforts have been made to analyse and interpret the
statistics of what the common layman i.e. the common people have to say
about pre and post GST, their experience and knowledge and also their
future thoughts on the same.
First of all the collected data was collected has been presented in a tabular
form and there after it is analysed with the help of Pie Charts.
A brief description of analysis and interpretation is given below:

1) In Table No. 4.1 An attempt has been made of classifying the

respondents on the basis of their respective age group.

Sr. No Age Group No of respondents Percentage (%)

1 20-29 170 85
2 30-39 8 4
3 40-49 7 3.5
4 50 & Above 15 7.5
Total 200 100

Interpretation:
From the above table and figure it is clear that majority of the
respondents are between the age group of 20-29 i.e. 85%, whereas
4% are in the age group of 30-39, 3.5% belong to 40-49 group which is
the lowest percentage with the least respondents and 7.5% are in the age
group of 50 & above.

2) In Table No. 4.2 an attempt was made to classify the respondents

basis their occupation.
 Sr. No Occupation No of respondents Percentage (%)
1 Student 83 41.5
2 Working Professional 90 45
3 Businessman 13 6.5
4 Others 14 7
Total 200 100

Interpretation:
From the above table 4.2 and the figure it is showing that working
professionals are the highest in % with 45% amongst the 200
respondents and the least % with only 6.5% being the businessman.
Student occupation consists of 41.5% of the data and 7% are the Others
category.

3) In Table No. 4.3 an attempt was made to see whether the

respondents know the full form of GST.

Sr. No of Percentage
What is GST?
No respondents (%)
1 General Service Tax 5 2.5
2 Goods and Support Tax 0 0
3 Goods and Services Tax 194 97
4 Global Service Tax 1 0.5
Total 200 100
Interpretation:
From above we can say that maximum people i.e. 97% know what is
GST, its full form which is Goods and Services Tax, 0% said Goods and
Support Tax, 5% thought it was General Service Tax and one respondent
had to say that he/she thought it was Global Service Tax.

4) In Table No. 4.4 an attempt was made to know whether the

general public know the major tax rates under GST.

No of Percentage
Sr.No What is GST?
respondents (%)
1 12%, 18% 11 5.5
2 5% & 12% 4 2
3 5%, 12%, 18% 33 16.5
4 5%, 12%, 18% & 28% 152 76
Total 200 100
Interpretation:
From the above, table and figure we can see that majority i.e. 76% know
the correct tax rates under GST which are 5%, 12%, 18% & 28%. Two
per cent felt it is only 5 %, 12 %. 16.5 per cent of people said that it is
5%, 12% & 18% which also ranks as 2nd highest for the number of
respondent’s percentage. 11 respondents felt it was just 12% & 18%. (As
this is seen mostly in the invoices given out by the retailers to the
consumers).

5) In Table No. 4.5 an attempt was made to get to know the types of
taxes under GST

Sr. No of Percentage
No What is GST? respondents (%)
1 CGST & SGST 70 35
2 IGST & CGST 4 2
3 IGST & SGST 5 2.5
4 IGST, CGST & SGST 121 60.5
Total 200 100
Interpretation:
From above we can see that 2% of the respondents thought the answer for
the above question was IGST & CGST which is the least. Large number
of respondents specifically 121 i.e. 60.5% correctly said it is all types
which are IGST, CGST & SGST. 35 per cent respondents had to say that
it is only CGST & SGST (As commonly seen in invoices) and 2.5%
people also guessed it to be IGST & SGST.

6) Figure No. 4.6 asks the respondents to take a guess on how many
pre GST regime taxes got subsumed under GST. (Here, table was
not formed as there were a lot of permutations and combinations of
the answers given.)
Interpretation:
The indirect taxes that got replaced by GST as per the options given were
Service Tax, State VAT, Excise Duty, Octroi, Entry Tax and Central
Sales Tax. The taxes on which GST is not applicable is Tax on Liquor
and Petrol. Also Customs Duty remains leviable. The results were quite
interesting wherein 171 people correctly said Service Tax got replaced.
44 respondents (least number of respondents) had to say even Tax on
Petrol got replaced which is quite incorrect.

7) Table No. 4.7 makes an attempt to know common man’s opinion

on how the shift was to GST regime for them.

Sr. No How was the shift to GST regime No. of respondents Percentage (%)
1 Smoother 62 31
2 Difficult 123 61.5
3 Very Difficult 15 7.5
Total 200 100
Interpretation:
From above we can see that 123 respondents i.e. 61.5% had to say they
found it difficult to go through the GST being implemented. 31% said it
was smooth for them getting adjusted to GST. Though 7.5% i.e. a total of
15 respondents found it very difficult to go through this GST being
implemented back in 2017.

8) Table 4.8 attempts to know people’s perception on whether GST

introduction has affected the demand for goods and/or services.

Sr. Has GST implementation affected the demand No. of

o for products/services? respondents Percentage (%)
1 Yes 108 54
2 No 43 21.5
3 Maybe 49 24.5
Total 200 100
Interpretation:
From above table and chart we can see that 54% people say that they
have seen the demand for products and services affect because of GST.
24.5 % or 49 respondents say they think it might have affected and 43
respondents i.e. 21.5% say that they experienced zero change in the
demand for products and services.

9) In Table 4.9 an attempt has been made to find out the view of the
respondents on whether they think that business sales has affected
after GST or no. So has sales increased or decreased was basically
asked.

Sr. No. of Percentage

No Has business sales affected after GST? respondents (%)
1 Sales increased 44 22
2 Sales decreased 88 44
3 No Change 68 34
Total 200 100
Interpretation:
44% respondents say that they see a sales decrease for business due to
GST implementation. Surprisingly 34% say that they found no change in
business sales because of GST. 22% i.e. 44 people feel that business sales
have actually gone up because of GST introduction.

10) In table 4.10 an attempt has been made to know whether there is
any change in the buying behaviours of people because of GST put
in place.
Sr. No. of Percentage
No Have buying habits changed after GST respondents (%)
1 Increased 25 12.5
2 Decreased 49 24.5
3 No Change 126 63
Total 200 100
Interpretation:
From above we can say that 63% i.e. majority feel zero change in their
buying habits pre and post GST. 24.5% say they have decreased their
buying habits and 12.5% say they have started purchasing more after
GST.

11) In table 4.11 an attempt was made to know who was the
most affected by GST implementation in its introductory stage.

Sr. Percentage
No Most affected by GST No. of respondents (%)
1 Common Man 106 53
2 Businessman 79 39.5
3 Others 15 7.5
Total 200 100
Interpretation:
From above table and chart we can see that respondents say that common
man has got most affected because of GST with 53% respondents vote.
79 respondents i.e. 39.5% say businessman was the most affected because
of GST and last 7.5% say some others only got affected the most. Others
can be from different occupations.

12) Table 4.12 carries the question where it was asked that
whether GST is beneficial for the Indian Economy.

Sr. Percentage
No Is GST beneficial for India? No. of respondents (%)
1 Yes 139 69.5
2 No 12 6
3 Maybe 49 24.5
Total 200 100
Interpretation:
From above we can say that a whopping 69.5 % people see that GST is
beneficial to them or the nation as a whole. 6% only disagree to this.
While 49 respondents or 24.5% people see it as a maybe beneficiary
reform for India.

13) Table 4.13 makes an attempt to know what common man

thinks on if GST
has reduced the tax evasion and money laundering or no.

Sr. No. of Percentage

No Reduction of tax evasion & money laundering respondents (%)
1 Yes 91 45.5
2 No 45 22.5
3 Maybe 64 32
Total 200 100
Interpretation:
From above table and figure we can see that 45.5% people say that they
think tax evasion and money laundering has reduced. 32% people or 64
respondents say it might have reduced they are not sure. Yet 22.5 %
people say that GST has not reduced these illegal activities at all.

14) In table 4.14 an attempt has been made to know whether

GST has really reduced the tax on tax it promised it would reduce.

Sr. Percentage
No Has GST reduced tax on tax No. of respondents (%)
1 Yes 130 65
2 No 70 35
Total 200 100
Interpretation:
From above we can say that mostly people agree that GST has reduced
the tax on tax but still 70 respondents or 35% people disagree to this.

15) Table 4.15 makes an attempt to know the opinion of general

public on whether GST has created job opportunities at all.

Sr. Has GST created No. of Percentage

No jobs? respondents (%)
1 Yes 112 56
2 No 88 44
Total 200 100
Interpretation:
From above chart and table we conclude that it’s almost a 50-50 opinion;
like 56% say yes GST created job opportunities while 44% disagree to
this.

16) In table 4.16 an attempt was made to know whether GST is

a simplified structure of taxation than the previous one.

Sr. Is GST a simplified version to the previous tax Percentage

No structure? No. of respondents (%)
1 Agree 164 82%
2 Disagree 36 18%
Total 200 100
Interpretation:
The results are not surprising as people agree that they have been
presented with a simplified tax structure than the previous multiple
taxation system. 82% people i.e. around 164 respondents out of 200
agree. 36 respondents or 18% yet disagree.

17) In table 4.17 an attempt was made to see if the respondents

know the objectives or motive behind introducing GST.

Sr. No. of Percentage

No Main motive behind GST? respondents (%)
1 Uniform taxation 53 26.5
2 Revenue for Govt. 7 4%
3 Replacing all indirect taxes 17 9%
4 All of the above 123 61.5
Total 200 100
Interpretation:
The answer to the above question is all of the above and 123 respondents
or a total of 61.5% agree to it which is the highest. Second highest vote
goes to option 1 which says uniformity in the taxation system which is
not wrong but it is one of the objectives. 4% people also had to say that
revenue generation for the Govt. was the sole motive behind GST and 9%
said that replacing all indirect taxes was one sole motive.

18) Table 4.18 makes an attempt was made to know if Govt.

had made an effort to provide basic necessary information to the
end consumers regarding GST before and after its implementation.

Did Govt. provide enough info

Sr. on GST before and after its No. of Percentage
No implementation? respondents (%)
1 Yes 78 39
2 No 66 33
3 Maybe 56 28
Total 200 100
Interpretation:
This poll has a varied opinion wherein 39% respondents say yes that the
Govt. did make efforts to educate them on GST. 33% disagree to those
39% and rest 28% say that they think that the Govt. may have provided
information but they are not sure of the same.

19) Table 4.19 shows the views of the respondents on whether

GST is a burden for the common man.

Sr. Is GST a burden for common No. of Percentage

No man? respondents (%)
1 Yes 93 46.5
2 No 107 53.5
Total 200 100
Interpretation:
From above table and chart we can see that 53.5% respondents say NO,
GST is not a burden for the common man to which still 46.5% say that
yes they feel a pinch on their pockets after GST introduction.

20) In table 4.20 an attempt was made to know on whether the

Govt. should reduce the current tax rates under GST which are 5%,
12%, 18% & 28%.

Sr. Should GST rates be No. of Percentage

No reduced? respondents (%)
1 Yes 164 82
2 No 36 18
Total 200 100
Interpretation:
From above we can see that a lot of people i.e. 164 respondents want
GST tax rates to be reduced, this is 82% people saying yes whereas there
are 18% people who say no let the GST rates be as they are. They want
no reduction in the rates.

21) Table 4.21 makes an attempt to know whether people

support GST presently and would they still continue to support it in
the future if any development or changes arise in the GST ACT.

Sr. No. of Percentage

No Support GST in present and in future? respondents (%)
1 Yes 172 86
2 No 28 14
Total 200 100
Interpretation:
From above figure and table we can infer that a massive 172 respondents
i.e. 86% people say the support GST now and in the future too which is
quite good. Yet there are 14% people who say they don’t support GST
now or in the future also.

Pre and Post GST with an illustration:

Example: 1 (Comprehensive Comparison)

Comparison between Multiple Indirect tax laws and proposed one law

Particulars Without GST With GST

(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% 840.00 –

Total Value(a) 7,840.00 7,000.00

Add: VAT @ 12.5% 980.00 –

Add: CGST @ 12% – 840.00

Add: SGST @ 12% – 840.00

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% 784.00 700.00

Total Value(b) 8,624.00 7,700.00

Add: VAT @ 12.5% 1,078.00 –

Add: CGST @ 12% – 924.00

Add: SGST @ 12% – 924.00

Invoice Value 9,702.00 9,548.00

Retailer to Consumer:

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

Add: Profit Margin 862.40 770.00

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 10,672.20 10,502.80

consumer

Cost saving to consumer – 169.40

% 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%.
 CHAPTER: 5

Implementation of GST is one of the best decisions taken by the Indian

government and is considered as one of the major tax reforms in India.
For the same reason, July 1 was celebrated as Financial Independence day
in India when all the Members of Parliament attended the function in
Parliament House. The transition to the GST regime which is accepted by
160 countries would not be easy. Confusions and complexities were
expected and will happen. India, at some point, had to comply with such
regime. Though the structure might not be a perfect one but once in place,
such a tax structure will make India a better economy favourable for
foreign investments. Until now India was a union of 29 small tax
economies and 7 union territories with different levies unique to each
state. It is a much accepted and appreciated regime because it does away
with multiple tax rates by Centre and States and also the cascading effect
of tax.
Good understanding among the consumers is important as it can generate
positive perception of taxation amongst them. Government should create
awareness in understanding the rationale of this GST system. The study
highlights the views or common man about GST.

CHAPTER: 6

A. Books:

• Indirect Tax- Introduction of Goods and Services Tax

(Manan Publication).
• Indirect Tax- Introduction of Goods and Services Tax (Sheth
Publication).
B. Websites:

1. For Literature Review:

i. https://shodhgangotri.inflibnet.ac.in
ii. http://www.imperialjournals.com
iii. http://www.ijtsrd.com
iv. https://www.slideshare.net

2. For rest of the Project:

i. https://www.gstindia.com
ii. https://www.britannica.com
iii. https://www.wikipedia.com
iv. www.cleartax.com
v. www.gstgov.in
vi. www.indiafilings.com
vii. www.gstcouncil.gov.in
viii. www.cbec.gov.in
ix. www.gstn.org
 CHAPTER: 7

Q1) What is your age?

• 20-29
• 30-39
• 40-49
• 50 & Above.

Q2) What is your occupation?

• Student
• Working Professional
• Businessman
• Others

Q3) According to you, what is GST?

• General Service Tax
• Goods and Support Tax
• Goods and Services Tax
• Global Service Tax

Q4) What are the various tax rates under GST?

• 5%, 12%, 18%
 • 12% & 18%
• 5%, 12%, 18% & 28%
• 5% & 12%

Q5) What are the types of taxes under GST?

• CGST & SGST
• IGST & CGST
• IGST & SGST
• IGST, CGST & SGST

Q6) What are the various types of taxes that got replaced with GST?
▪ Service Tax
▪ State VAT
▪ Excise Duty
▪ Customs Duty
▪ Tax on Liquor
▪ Octroi
▪ Entry Tax
▪ Central Sales Tax
▪ Tax on Petrol

Q7) According to you how was the shift to GST regime?

• Smoother
• Difficult
• Very Difficult

Q8) Do you think that implementation of GST has affected the

demand for products/services?
• Yes
• No
• Maybe

Q9) According to you, has business sales affected after GST

implementation?
• Sales increased
• Sales decreased
 • No change

Q10) Have your buying habits changed after introduction of GST?

• Increased
• Decreased
• No change

Q11) Who is the most affected by GST?

• Common Man
• Businessman
• Others

Q12) Is GST beneficial for the Indian Economy?

• Yes
• No
• Maybe

Q13) Do you think that after GST introduction, the tax evasion and
money laundering have reduced?
• Yes
• No
• Maybe

Q14) According to you, has GST reduced tax on tax?

• Yes
• No

Q15) Has GST implementation created job opportunities?

• Yes
• No

Q16) Is GST a more simplifies version of the taxation system than the
previous structure?
• Agree
• Disagree
Q17) According to you, what is the main motive behind GST
introduction?
• To bring uniformity in the taxation system
• To create revenue for the government
• To replace all the indirect taxes
• All of the Above

Q18) Has government provided enough information regarding GST,

before and after its implementation?
• Yes
• No
• Maybe

Q19) Do you feel GST is a burden for the common man?

• Yes
• No

Q20) Do you think GST rates should be reduced?

• Yes
• No

Q21) Do you support GST and the various developments and updates
that may come in the near future?
• Yes
• No
1