SUMMER TRAINING REPORT

On

IMPLEMENTION OF GOODS AND SERVICES TAX

Submitted in partial fulfillment of the requirements for the award of Degree

of
Master of Business Administration (MBA)
To

Supervised by: Submitted by:

MR. Ravinder Sharma Chanchal
( HEAD OF DEPARTMENT) 231400502001

Department of Management Studies

(RPSGOI BALANA, M.GARH, Session: 2023-2025)

1
2
 DECLARATION

I, Chanchal student of MBA 3rd Sem ,RPSGOI Balana Mahendragarh declare that the project
work entitled “Finance and Human resource management ” is my own personal efforts for
the degree master of business administration under the guidance and Supervision of Prof.
Ravinder Sharma(HOD) Department of management, RPSGOI , Balana ,
Mahendergarh,

(Indira Gandhi University- Meerpur, Rewari)

Discussion and Interpretation made in this research work are based on my personal
understanding of the theoretical concepts and the knowledge of statistical tools. The text
referred from other research articles, reports, books and websites etc. has been
acknowledgement at the respective place in the text. For the present research work , which I am
submitting to the University , no degree or diploma or distinction has been conferred on me
before , either in this or in any other University.

Signature of student

(Full name:-Chanchal)

3
 (Registration no:-231400502001.)

ACKNOWLEDGEMENT

“Gratitude is the hardest of emotion to express and other does not find adequate ways to
convey the entire one feels.”

Summer training is the one of the important part of MBA course, which was helped me to learn
a lot of experiences which will be beneficial in my succeeding career.

So , Here is my summer training project report on,”Financing and Human resourse

management ”has become successful because of the helping hand by the courteous people
mentioned below , without their inspiration, help, continuous guidance and co-operation,I
could not have succeeded in this project.

With deep sense of gratitude, I acknowledge the encouragement and guidance received by
guide Mr. Ravinder Sharma (HOD) to whom I owe a great deal for his input and guidance
during the process of completing my research, his insightful comments and challenging
questions allowed me to keep my enthusiasm while working on this project, I convey my
heartful affection to all those people who helped.

Chanchal

ROLL NO. 231400502001.

4
 TABLE OF CONTENT

S.NO CONTENT PAGE.NO

1. INTRODUCTION TO COMAPNY 6-12

2. INTRODUCTION TO TOPIC 13-17

3. FORMATION 18-20

4. E WAY BILL 21-24

5. PROCEDURE OF GST IN INDIA 25-27

6. LITERATURE REVIEW 38-40

\7. RESEARCH METHODOLOGY 41-45

8. DATA ANALYSIS AND INTERPRETATION 46-49

9. SUMARY ,FINDINGS, AND CONCLUSION 50-53

10. BIBLIOGRAPHY 54

11. QUESTIONIRE

55

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 Chapter-1
Introduction to company

7
Address:-1208, 12th floor, RG Tower, NetajiSubhashplace
Pitampura, New Delhi,(110034)

ACCRUAL INTELLIGENCE MANUAL PVT. LTD.

Accrual Intelligence Manual private limited is a Non-govt. company, incorporated on 2017.
It is a private unlisted company.

It is a wealth management company and it believes in dynamic culture and it is our goal to
help the individual in dealing with the dynamism of environment whether it is related to
their wealth or expansion of business.AIM India group is the leading advisory in India and
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abroad.We are having a team of exclusive corporate trainers.Our principle is to deliver
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Current operations:-

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8
 SERVICE PORTFOLIO
INTERNSHIP:-
We provide domestic and international level internship.We have a team of
experienced and educational professionals who can provide
services/solutions for client.Exposure to interns in mixed specialization i.e.
HR and Marketing which will result in the implication of their theoretical
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Wealth Advisory:-
We are having experts who are helping individuals in managing their wealth.
These experts are also providing consultancy services regarding financial and
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Accounting:-
We will help in maintaining books to give you strategic insight of the
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the enterprises and maintain the record of these transactions.

9
Consulting:-
Helping customers providing professional or expert advice in wealth
maximization, carrier planning etc. We also guide them in taking crucial
decisions.

Training & Development:-

AIM India training specialist includes professionals in Marketing, HR and
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Taxation:-
Tax management is required in every organisation but due to its strenuous
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10
International Expansion:-
With the help of our business partners, we are helping individuals in
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Recruitment:-
Our objective is to fulfill professional commitments and value-added
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Our motto is to provide coverage at affordable premiums; our underwriters
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11
12
13
 CHAPTER-2
INTRODUCTION TO TOPIC
Concept and Introduction of TAX:
Taxation is the inherent power of the state to impose and demand contribution upon persons,
properties, or right for the purpose of generating revenues for public purposes.

Taxes are enforced proportional contribution from person to property levied bt the law making body
of the state by virtue of its sovereignty for the support of the government and all public needs.

14
Brief History of Taxation:
Tax is today an important source of the revenue for the government in all the countries. More than
3000 years ago, the inhabitants of ancient Egypt and Greece used to pay tax, consumption taxes and
custom duties. Income tax was first introduced in India in 1860 by James Wilson who become
Indians First Finance Member.

In order to meet the mosses sustained by the government on account of military mutiny of 1857. In
1918 A New Income Tax bill was passed and which was further again replace in 1922. Finally, The
Ministry of Law and Finance The Income Tax was Passed in 1961 and brought came in force on 1 st
April 1962, and this also known as the Financial Year in Current Era. I e. (01.04.2020-31.03.2021)

Taxation System
Tax system of raising money to finance government. All government require payment of money
taxes from people.

Government use revenue to pay soldiers and policies to build dams and roads, to operate schools and
hospitals, to provide food to the poor and medical care facilities etc and also hundreds of the other
purposes without taxes to fund its activities govt could not exist.

So, taxation is the most important source of revenue for modern government typically according for
90% or more of their income.

Essentials Characteristics of Tax:

1. It is an enforced Contribution.t is generally payable by Money.
2. It proportionate in character, usually based on ability to pay.
3. It is levied on person and property with the jurisdiction of the state.
4. It is levied for public purpose.
5. It is commonly required to be paid a regular intervals.

Why are Taxes Levied?

The reason for levy of taxes in that they constitute the basic source of revenue to the government.
Revenue so raised is utilised for meeting the expenses of government like defense, provision of
education, health care, Infrastructure facilities like roads, dams etc.

What are the reasons of Taxation?

1. Provide the basic facilities for every citizen of country.
2. Finance government multiple projects and schemes.
3. Protection of life.
4. Responsibility of citizen to the nation.

15
Meaning of Tax:
The word Tax came from Latin word ”Taxo, Tax are” which means To asses or estimate.

Tax can be defined in the following ways:

“The compulsory payments made to the government associated with certain activities are called
Taxes”

“A general purpose, compulsory contribution by the people to public treasury to meet the
expenditure of government is called TAX”

“A specific amount of money demanded by government from its public levied on their income, sales,
wealth.”

Different Types of Taxes:

Direct Tax
 Corporate tax
 Income tax
 Gift tax
 Minimum Alternate tax (MAT)

Indirect Tax
 Sales tax
 Value Added Tax(VAT)
 Goods and Service Tax(GST)
 Excise

Concept of Goods and Service Tax

Introduction of GST

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Goods and Services Tax (GST) is a indirect tax (or consumption tax) levied in India on the supply of
goods and services. GST is levied at every step in the production process, but is meant to be refunded
to all the parties in the various stage of production other than the final consumer.

Goods and services are divided into five tax slabs for collection of tax- 0%, 5%, 12%, 18%, and
28%. However, Petroleum product, alcoholic drinks, electricity, are not taxed under GST and instead
are taxed separately by the individual state government, as per the previous tax .There is a special
rate of 0.25% on rough precious and semi-precious stones and 3% on gold. In addition a cess of 22%
GST applies on few items like aerated drinks, luxury cars and tobacco products. Pre-GST, the
statutory tax rate for most goods was about 26.5%, Post-GST most goods are expected to be in the
18% tax range. The tax came into effect from July 1, 2017 through the implementation of One
Hundred and Amendment of the Constitution of India by the Indian government. The tax replaced
existing multiple flowing taxes levied by the Central and State government.

The tax rates, rules and regulation are governed by the GST Council which consist of the finance
ministers of centre and all the states. GST is meant to replace a slew of indirect taxes with a
federated tax and is therefore expected to reshape the country’s 2.4 trillion dollar economy, but not
without criticism. Trucks’ travel time in interstate movement dropped by 20%, because of no
interstate check posts.

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Formation
The reform of India’s indirect tax regime was started in 1985 by VishwanathPratap Singh, Finance
Minister in Rajiv Gandhi’s government, with the introduction of the Modified Value Added Tax
(MODVAT). Subsequently, Prime Minister PV Narasimha Rao and his Finance Minister Manmohan
Singh, initiated early discussion on a Value Added Tax(VAT) at the state level. A single common
“Goods and Services Tax (GST)” was proposed and given a go-ahead in 1999 during a metting
between the Prime Minister Atal Bihari Vajpayee and his economic advisory panel, which included
three former RBI governs IG Patel, BimalJalan and C Rangarajan. Vajpayee set up a committee
headed by the Finance Minister of West Bengal, AsimDasgupta to design a GST model.

The GST was launched at midnight on 1 July 2017 by the President of India, and the Government of
India. The launch was marked by a historic midnight (30 june-1 July) session of both the houses of
the parliament convened at the central hall of the Parliament. Though the session was attended by
high-profile guests from the business and the entertainment industry including Ratan Tata, it was
boycotted by the opposition due to the predicted problems that it was bound to lead for the middle
and lower class Indians. It is one of the few midnight sessions that have been held by the parliament
– the others being the declaration of India’s independence on 15 August 1947, and the silver and
golden jubilees of that occasion. After its launch, the GST rates have been modified multiple times,
the latest being on 22 December, where a panel of federal and state finance ministers decided to
revise GST rates on 28 goods and 53 services.

Members of the Congress boycotted the GST launch altogether. They were joined by the members of
the trinamool Congress, Communist Parties of India and the DMK. The parties reported that they
found virtually no difference between the GST and the existing taxation system, claiming that they
government was trying to merely rebrand the current taxation system. They also argued that the GST
would increase existing rates on common daily goods while reducing rates on luxury goods, and
affect many Indians adversely, especially the middle, lower middle and poorer income groups.

Taxes subsumed
The single subsumed several taxes and levies which included: central excise duty, services tax,
additional custom duty, surcharges, state-level value added tax and octroi. Others levies which were
applicable on inter- state transportation of goods have also been done away within GST regime. GST
is levied on all transactions such as sale, transfer, purchase, barter, lease, or import of goods and / or
services.

India adopted a dual GST model, meaning that taxation is administrated by both the union and state
government. Transaction made within a single state are levied with central GST (CGST) by the
central government and state GST (SGST) by the state government. For inter-state transaction and
imported goods or services, an Integrated GST (IGST) is levied by the central government. GST is a
consumption based tax / destination based tax, therefore, taxes are paid to the state where the goods
and services are consumed not the state in which they are produced. IGST complicates tax collection
for State Government by disabling them from collecting the tax owed to them directly from the
Central Government.

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Different Taxes are Cover under GST:

1. State taxes which will be subsumed in SGST:

 VAT/sales tax
 Luxury Tax
 Entertainment Tax(unless it is levied by local bodies)
 Taxes on lottery, betting and gambling

2. Central taxes which will be subsumed in CGST:

 Central excise duty
 Additional excise duty
 Service tax
 The excise duty levied under the medical and toilet preparation
 Additional custom duty
 Education less
 Surcharges

3. Taxes that will not be subsumed:

 Stamp duty
 Electricity duty
 Other entry duty and Octori Entertainment tax(levied by local bodies)
 Basic Custom duty and safeguard duties on import of goods in india
 Professional tax

HSN code in GST TAX RATE:

HSN (Harmonized System of Nomenclature) is an 8-digit code for identifying the applicable rate of
GST on different products as per CGST rules. If a company has turnover up to 1.5 Crore in the
preceding financial year then they need not to mention the HSN code while supplying goods or
invoices. If a company has turnover more than 1.5 Crore but upto 5 Crore then they need to mention
the first two digit of HSN code while supplying goods on invoices. If turnover crosses 5 Cr then they
shall mention the first 4 digits of HSN code on invoice.

Rate:

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The GST is imposed at variable rates on variable items. The rate of GST is 18% for soaps and 28%
on washing detergents. GST on movie tickets is based on slabs, with 18% GST for tickets that cost
less than Rs. 100 and 28% GST on tickets costing more than Rs. 100 and 5% on readymade clothes.
The rate on under-construction property booking is 12%. Some industries and products were
exempted by the government and remain untaxed under GST, such as dairy products, products of
milling industries, fresh vegetables, meat products, and other groceries and necessities.

The central Government has proposed to insulate the revenues of the States from the impact of GST,
with the expectation that in due course, GST will be levied on petroleum products. The central
government had assured states of compensation for any revenue loss incurred by them from the date
of GST for a period of five years. However, no concrete laws have yet been made to support such
action. GST council adopted concept paper discouraging tinkering with rates.

GST rate in India at glance:

 Exempted categories: 0
 Commonly used Goods and Services: 5%

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  Standard Goods and Services fall under 1st Slab: 12%
 Standard Goods and Services fall under 2nd Slab: 18%
 Special category of Goods and Services including Luxury Goods: 28%

E-Way Bill
An e-way bill is an electronic permit for shipping goods similar to waybill. It was made mandatory
for inter-state transport of goods from 1 June 2018. It is required to be generated for every inter-state
movement of goods beyond 10 kilometers (6.2 mi) and the threshold limit of 50,000 (US$700).

It is a paperless, technology solution and critical anti-evasion tool to check tax leakages and
clamping down on trade that currently happens on a cash basis. The pilot started on 1 February 2018
but has withdrawn after glitches in the GST Network. The states are divided into four zones for
rolling out in phases by the end of April 2018.

A unique e-way Bill Number (EBN) is generated either by the supplier, recipient or the transporter.
The EBN can be a printout, SMS or written on invoice is valid. The GST/Tax Officer tally the e-way
bill listed goods with goods carried with it. The mechanism is aimed at plugging loopholes like
overloading, undertakings etc. Each e-way bill has to be matched with a GST invoice.

Transporter ID and PIN Code now compulsory from 01-Oct-2018.

It is critical compliance related GSTN project under the GST, with a capacity to process 75 lakh e-
way bills per day.

Intra-State e-Way Bill

The five states piloting this project are Andhra Pradesh, Gujarat, Kerala, Telangana and Uttar
Pradesh, which account for 61.8% of inter-state e-way bills, started mandatory intrastate e-way bill
from 15 April 2018 to further reduce tax evasion. It was successfully introduced in Karnataka from 1
April 2018. The intrastate e-way bill will pave the way for a seamless, nationwide single e-way bill
system. Six more states Jharkhand, Bihar, Tripura, Madhya Pradesh, Uttarakhand and Haryana will
roll it out from 20 April 18. All states are mandated to introduce it by May 30, 2018.

Reverse Charge Mechanism

Reverse Charge Mechanism (RCM) is a system in GST where the receiver pays the tax on behalf of
unregistered, smaller material and service supplies. The receiver of the goods is eligible for Input
Tax Credit, while the unregistered dealer is not.

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In the notification dated on 29 January 2019, the Indian government has finally implemented the
RCM (reverse charge mechanism) which started from 1 february 2019 as per the GST acts and
amendments. Also to note that the up to INR 5000 exemptions will be removed effectively.

Goods Kept outside the GST:

 Alcohal for human consumption.

 Petrol and petroleum products (GST will apply at a later date) viz. Petroleum crude, High
speed diesel, Motor Spirit (petrol), Natural gas, Aviation turbine fuel.

GST Council
GST Council is a governing body of GST having 33 members. It is chaired by the Union Finance
Minister. GST Council is an apex member committee to modify, reconcile or to procure any law or
act or regulation based on the context of goods and services tax in India. The council is headed by
the union finance minister Arun Jaitley assisted with the finance minister of all the states of India.
The GST council is responsible for any revision or enactment of rule or any rate changes of the
goods and services in India.

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23
Need of GST in India
There are various taxes that have to pay at every stage and differently collected by State and Central
Government and rates differ from one state to another. If we talk about GST, it will unified whole
nation and taxes will be divided among central and state government, which will make across
country, as no more additional state taxes will be imposed.

Why in India, there is a need for GST?

Imposing several taxes on goods and services can lead to high cost and inefficient tax structure
which can subject to shirking and revenue disclosure. The need for GST in Indian Taxation System
will add value at each stage and will set off the rates both at state and at central level. Introducing
GST, will increase the efficiency of taxation, improves the economic growth and it will bring whole
nation to one national market.

What happen in present scenario?...... Our present taxation system is very complex and very
confusing, corruption chance is there, which leads to distrust of the government, there are hidden tax
for exports, whereas no charge applicable on Importing of Goods/Services from one state to another.

Just to overcome these issues, Rajya Sabha introduced GST bill, which will bring transparency to
taxation and consumer will get to know how much tax amount they are paying to government for
sale/purchase/manufacturing.

Following are some of the points that can easily explain the need for GST;

Tax Structure will be simple: At present, there are huge number of taxes that has to pay by
consumers, with GST it will single tax to pay, which is easier to understand. For businesses,
accounting complexities will reduce and result less paperwork, which will save both time and
money. GST will increase economic GDP by 2%-2.5%.

Tax revenue will increase:Simple tax structure will bring more tax payers and in return it will
be the revenue for government.

Competitive pricing:What GST will do? Well, it will eliminate all other taxes of indirect taxes
and this will effectively mean the tax amount paid by end users(consumers) will reduce. As in
Economics, lower will the prices, more will be the demand for that product, results in more
consumption of goods, which will be benefited by companies.

Boost to exports: If Indian market will be competitive in pricing, then more and more foreign
players will try to enter in the market, which results in more numbers of exporter and benefits to
Indian market. As far as there is no tax rate is finalized, but yes GST is much needed in the countries
where it lacks transparency an complex taxation system.

Goods and Service Tax (GST) Procedure in India

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There are certain procedures, to follow to get registered under GST;

Firstly, who is liable to register under GST?

and who render goods and services. Following persons shall apply;

 Any dealer, suppliers, trader

 Any service provider like: content writer, SEO, etc.
 Private limited, individual, Partnership firms/or businesses, trust.

Registration procedure Under GST:

The major features of the proposed registration procedures under GST are as follows:

For existing dealers: those who are taxpayers for VAT/Central, excise/Service tax need not to
apply for fresh registration.

For New Dealers: they have to fill single application form online to get registered under GST.

Steps to follow to get registered under GST:

Firstly, applicant must have the limit, so that they can het registered and they need to upload
scanned copy of documents required as they will be mention on common GST portal in near future.

Secondly, after submitting all the necessary documents, on registered mobile numbers ans email
address they will get a message or email for confirmation.

Thirdly,once confirmation is done, authorized applicants will Acknowledgement Number.

Fourthly, IT system of Centre and State will carry out verification of documents and details
submitted to portal.

Lastly, after all verification and application is approved, authorized applicant with GSTIN CODE
along with LOGIN ID and PASSWORD, which will be of 15 digits.

Return Filing Procedures under GST:

There are total 8forms provided for filling GST returns, irrespective of their business. Fillings of
return will be online and all taxes can also be paid online. Draft for return purpose is as follows:

1. GSTR-1 (Sales Register): all the transaction (good/services) related to sale.

2. GSTR-2 (Purchase Register): purchase of goods/or services transaction.
3. GSTR-3 (Monthly Return Form)
4. GSTR-4 (Quarterly Return for Compounding Dealer)
5. GSTR-5 (Return file by the Non-Resident)

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 6. GSTR-6 (Return for Input Service Distributor)
7. GSTR-7 (TDS Return)
8. GSTR-8 (Annual Return)

Payment Procedure under GST:

GST Tax payment can be done electronic, which can reduce less paperwork. At single point, GSTN
challan is generated. Payment mode can be either through online banking, credit cards, Debit cards,
NFET/RTGS or through cash or cheque deposited in bank.

GST Benefits and impact on Indian Economy

Amidst economic crisis across the globe, India has posed a beacon of hope with ambitious growth
targets, supported by a bunch of strategic undertakings such as the Make in India and Digital India
campaigns. The Goods and Services Tax (GST) is another such undertaking that is expected to
provide the much needed stimulant for economic growth in India by transforming the existing base
of indirect taxes towards the free flow of goods and services. GST is also expected to eliminate the
cascading effect of taxes. India is projected to play an important role in the world economy in the
years to come. The expectation of GST being introduced is high not only within the country, but also
within neighbouring countries and developed economics of the world.

Benefits of GST to the Indian Economy

 Removal of bundled indirect taxes such as VAT, CST, Service tax, CAD, SAD, AND
Excise.
 Less tax compliance and a simplified tax policy compared to current tax structure.
 Removal of cascading effect of taxes i.e. removes tax on tax.
 Reduction of manufacturing costs due to lower burden of taxes on the manufacturer sector.
Hence prices of consumer goods will be likely to come down.
 Lower the burden on the common man i.e. public will have to shed less money to buy the
same products that were costly earlier.
 Increased demand and consumption of goods.
 Increased demand will lead to increase supply, Hence, this will ultimately lead to rise in the
production of goods.
 Control of black money circulation as the system normally followed by the traders and
shopkeepers will be put to a mandatory check.
 Boost to the Indian economy in the long run.

26
These are possible only if the actual benefit of GST is passed on to the final consumer. There are
other factors, such as the seller’s profit margin, that determines the final price of goods. GST alone
does not determine the final price of goods.

Impact on Indian Economy

Indian economy is getting more globalized over the past two decades. On bringing GST into
practice, there would be amalgamation of Central and State taxes into a single tax payment. It
is likely to improve the country’s tax to GDP ratio and also inhibit inflation. The positive and
negative impacts are discussed below;

Positive impact on the economy

27
 Implementation of a Single National GST will have major beneficial impact on all stake
holders. The key highlights of such impact is given below:

 Eliminates cascading effect and barrier free tax structure: GST will eliminate
cascading (tax on tax/compounding tax) impact on the production and distribution cost of
goods and services. This reduced cost of goods and services leading to accelerated GDP
growth. GST without tax barriers will leads to economics of scale in manufacturing
industry and reduces the supply chain cost.
 Expected to reduce the production cost: GST is expected to reduce the production
cost by 15% to 20% in many of the products in view of full input tax credit which will have
favourable impact on the prices of product.
 Expected to increase the tax revenue: GST will widen the tax base and improve the
tax compliance higher tax: GDP ratio. The Tax : GDP ratio is expected to increase 2% as
per FRBM report (Fiscal Responsibility and Budget Management). This works out to
rupees 70,000 to 80,000 cores of additional annual revenue to the central government.
 Leads to sustainable growth in the economy: GST will remove the tax distortions
from the economy. This will lead to sustainable higher growth based on competitive
strength of the country. Simple tax system will attract more productive investment for the
growth.
 Will lead to optimization and comparative cost advantage: GST will eliminate the
Inter State tax by which it will leads to optimization of physical facilities to the extent of
full capacity. If the manufacturing is done at full capacity industry will be benefited by
comparative cost advantage.
 Increase in the GDP and standard of living: Since it is expected that with the
implementation of GST the price level will reduce in the economy, it will results in
increase in the consumption level and growth in GDP of the economy. According to a
study by NCAER (National Council for Applied Economics and Research) complete
implementation of GST could lift GDP growth by 0.9-1.7%.
 Positive effects on export and BOP(Balance of Payment) level:
In proposed GST the exporter will get the full tax credit, the export units will be able to
quote better price for their products and services in comparison with presentscenario.
Increased export will ultimately have positive effect on the BOP(Balance of Payment).
 Leads to Unique price and removes inequalities between the markets: As GST
will lead to imposition of same tax rate on the goods and services everywhere in the
country and by implementing same tax rate it will removes the inequalities between the
market which we can seen in the market at present because of the tax rate differentials.
 Will lead to reduced chance for tax evasion : Since the proposed GST will charges
full tax on the each and every transfer, it’s difficult for the firms to evade tax from the
payment. E.g.: e-commerce firms can’t evade tax by operating business from the place
where tax rates are comparatively less.

28
  Leads to centralized where housing for manufacturers: In the present tax system if
the dealer and the ware house are from different states, then the dealer needs to pay a
Central Sales Tax of about 2%. This will increase the price of the commodity. Thus
companies use to setup a warehouse in each state. In GST as the CST gets eliminated, the
centralized where housing can be availed by the manufacturers. 104 Introducing GST and
Its Impact on Indian Economy.
 Makes the tax structure simple and reduces the compliance: Multiple taxes that
currently exists will no longer remain in the picture. This will
reduce the compliance to be fulfilled as compared to present situation.

Negative side of GST

The proposed GST may lead to following negative on the stake holders:

 Negatively affect the price level of essential goods and services: The proposed
GST may lead to increase the price of the essentials products and services which are
presently exempted from the taxation.
 Negatively effect on the real estate industry : As per the study undertaken by the
Curtin University of Technology, Perth in 2000, GST would negatively impact the real
estate market as it would add up to 8% to the cost of new homes and reduce demand by
about 12%.

29
  Negative effect on working capital: As the firms are supposed to make the payment
of the tax on every transfer the companies working capital requirement will shoots up by
proportional to the purchase of inputs for the value addition.
 Emergence of transfer pricing issues: As the GST considers all the transaction for
taxation purpose, this procedure will increase the price of the transfer from one department
to another for further processes.

Conceptually GST is expected to have numerous benefits like reduction in compliance 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 base tax will increase as the GST rate will be somewhere
around 27% with both goods and services covered. It is also expected to make export from India
competitive and India a preferred destination for foreign investment since GST is a globally accepted
tax.

Comparison between pre and post GST scenarios

Illustrated with an example of supply chain, consisting Manufacturer, Wholesaler, Retailer and
Customer, showing the impact with and without GST:

Suppose, manufacturer, started production for one item (say, one dress), he had all the necessary
things to manufacture dress. Now, Manufacturer must be having certain people known as wholesaler
and further wholesaler will have retailers, so that item reaches to the end users(customers).

Following shown, the cost of saving by customer on one item after implementing GST:

Case 1: Manufacturer to wholesaler

Particulars Without GST With GST
Cost of Production 100 100

Add: Manufacturer profit margin 100 100

Manufacturer price 200 200

Add: Excise Duty(12%) 24 -

Total 224 200

Add: VAT @12.5% 28 -

Add: CGST @ 12.5% - 25

30
Add: SGST @12.5% - 25

INVOICE VALUE 252 250

Case 2: Wholesaler to Retailer

Particulars Without GST With
GST
Cost of goods to wholesaler 224 200

Add: Profit Margin @ 10% 22.4 20

Total 246.4 220

Add: VAT @12.5% 30.8 -

Add: CGST @ 12.5% - 27.5

Add: SGST@ 12.5% - 27.5

INVOICE VALUE 277.2 275

Care 3: Retailer to Consumer:

Particular Without GST With GST
Cost of goods to retailers 246.6 220

Add: Profit Margin @10% 24.64 22

Total Value 271.04 242

Add: VAT @12.5% 33.88 -

Add: CGST @12.5% - 30.25

Add: SGST @12.5% - 30.25

Total Price of item that reaches to customer 304.92 302.5

Cost Savings (in Rs) - 2.42

31
From the above example it is clear, that on one item, customer save Rs 2.42, on
applying GST, while if we wish to continue with current taxation system, then not a
single penny is saved by consumer.

Effect of GST on Different Sectors and Industries

With the implementation of GST, it will turn India into unified market, which will be benefited to all
kinds of business leading Logistics companies, airline, industry, telecom, sector and so. Though
some companies will have positive impact, on the other side, imposing GST will lead to negative
impact on some companies. As of now, the rate of GST is yet to be decided, it can assume a 20% rate
by government panel in decision making.++

IT and ITES
Earlier IT and ITES industry was paying 14 % of the tax to the authority and subjected to 18% after
the imposition of GST. Also, an important point to notice here, that the long-disputed issue of canned
software taxation will also come to end s their will no difference between goods and services after
the GST.

GST Impact on the IT Products and Services

 As per the GST law, many items used in the IT industry like printer, photo copying, fax
machines and ink cartridges will now attract GST at the rate of 28% as opposed to the
previous 18% tax rate.
 The software service will be charged at 18% under GST as compared to 15% service tax of
the previous system. The tax rate on software CD’s (and another electronic packaged
software) will also be 18% under GST.
 The IT companies will have to arrange the hardware and software to make their systems in
compliance with GST. This will increase the infrastructure cost and affect the business
capability especially for small businesses and startups.
 Under GST, all the e-commerce sellers are required to register and pay taxes, irrespective of
their annual turnover. E-commerce companies are also not eligible to get the benefits of the
GST composition scheme. The online marketplaces will have to collect TCS from their
sellers and pay it to the government; the ITC will be available on such TCS paid.

Multi-point taxation
There are a number of taxation points counting up to 111 which must be accessed while in the
process of GST filing as the reason being of multiple registrations ranging from 37 jurisdictions-28
states, Eight union territories, and the centre. In other words of Chandrashekhar, Under the GST
regime, there are three tax points: central GST, inter-state GST, and state GST. Multiplying three

32
GSTs with 37 jurisdictions takes the total number of points of taxation to 111. It makes the IT
companies register and file compliance reports at a staggering 111 points to clear all the way through
filing the GST.

GST Rate on IT services/products

The tax rates of the IT service and goods have experienced a little hike after the implementation of
GST. However, the cascading of taxes and multiple tax system has been completely removed. So,
instead of a service tax + VAT + excise duty on the purchase of IT software services, consumers will
now only to pay single GST tax which will be more or less the same amount.

Telecom

India’s web of telecom industries is world’s second largest wireless market, which includes over a
billion of active users. The scales shown by the them shows their effort to become one of the biggest
success stories of the country. Work done by these firms literally have revolutionized the lives of the
people here.

Telecom sector of India can basically be divided into three parts, the telecom service providers,
infrastructure providers and equipment manufacturers. The tower companies had been involved in
legal activities referring the accrual of tax credits. There was strict requirement of a system which
can uphold the seamless tax inputs for this particular sector by which the finalized result might not
be a burden.

After getting involved with various tax issues the government of India finally come up with a
greatest indirect tax reform of the country termed as goods and services. GST is passed as a 122 nd
Constitutional Amendment Bill and has been approved by both houses of the Indian Parliament and
GST bill and has been implemented from 1st July, 2017.

Next problem which arises in the current scenario is of petroleum. The GST will also impact the oil
and gas sector and eventually we will get to see the aftereffect on the depending sector as well.
Telecom sector of the country is the largest diesel consuming sector after railways. If petroleum
products remain outside the GST bill then it will be very difficult for tower companies to set of their
input liabilities.

Automobiles and auto ancillaries

The GST rates are mostly expected to be neutral to the auto sector except for the hybrid cars which
will be taxed at the 28% GST + 15% cess.

Most other vehicle categories will not see significant change from the current tax structure.

33
Tractors category will be taxed at 12% against current 6-7 % which will be negative for the tractor
companies.

Demonetisation and BSIII norms have already hurt the sector during the first half of 2017.

Under the GST input tax credit will not be available for the dealers for the stocks existing before 1 st
July hence companies are offering discounts on their vehicles. This is expected to result in margin
pressure in the June quarter.

Stocks such as Exide Industries, Minda Industries and Amara Raja Batteries should be watched by
investors.

Import and Export Sector

After the implementation of GST, we can see both its positive and negative effects on Export of
goods /services will be treated as zero-rated supply under GST law. ITC(Input tax credit) and a
refund will be allowed.

Imports of goods/services will be treated as interstate supplies and are liable for IGST and BCD
(Basic custom duty). ITC of IGST will be allowed, but ITC of BCD is not allowed under GST.

Real estate buyer and investor

GST is expected to be a sentiment booster for the industry and will seek to revive buyer and investor
interest by bringing more transparency in taxation. As the perception of the sector is said to have
improved, the GST on real estate transaction is likely to drop around one to three percent if it all they
do, according to a report Edelweiss securities.

The impact of GST on property prices will have a positive impact as the taxation earlier was too
complicated for the buyers which has been made simpler under the new tax regime. For instance,
buyers were earlier liable to pay taxes depending on the construction status of the property and the
state where it is located. Buyers also had to pay VAT, service tax, stamp duty and registration
charges on purchase of an under-construction property. However, if the purchase was for a
completed property the tax applicable were stamp duty and registration charge.

Benefits to Developers
If you are a developer, you were earlier charged for central excise duty, VAT and entry taxes
collected by the state on construction material costs, further you had to pay a 15% tax on services
like labor, architect fees, approval charges, legal charges etc. Your tax burden was transferred to the
buyer eventually. However under the new regime, the changes in construction costs are not grave.

34
Furthermore reduced cost of logistics will result in reducing expenses as well. The input tax credits
will also help you increase profit margins and it will be a simpler tax to work it.

Hotel and Tourism

Tourism and hotel industry play an import part to grow India’s GDP.

GST rates for hotels are different according to their tarrifs

 Less than rs. 1000= 0% (GST free)

 Rs. 1000 to 2500= 12%
 Rs. 2500 to 7500= 18%
 Above Rs. 7500= 28%

It is expected that the cost of tour packages may come down due to the relief to tour operators under GST
regime. 5% tax is liable on tour operators currently.

Logistics Industry
The logistics industry is the backbone of Indian economy and it is estimated to be worth about $400
up to 2025. After the GST, the time taking clearance process has become easy i.e less transit time.
Corruption activities are reduced in logistic services. GST reduces the overall cost of logistic
services and increases business revenue.

Banking Sector
18% GST rates levied on banking services like insurance policies, ATM transactions etc. The earlier
tax rate was 15%. Banking and financial services becomes costly. In the light of this statement the
operations given by banks and NBFC such as lease transaction, hire purchase, related to actionable
claims, fund, and non-fund based services etc. GST compliance is expected to witness some
difficulties in some executing in these services sector. In short, we can say that the impact of GST on
the banking sector in India is going to be adversely affected by this taxation system.

Some major issues bring faced by the Banking sector pertaining to the GST Law
have been talked below;

1. A number of branches making registration process a big hassle:

As of now, NBFC, Banks with pan-India operations can release its service tax compliance through
a solitary centralized registration process. But now under GST, such Banks/NBFC’s would need to
get a different registration for each state they work. In addition to this compliance burden about
filing of returns has also expanded generously-

35
Not with understanding enlistment, constituency trouble about documenting of profits has likewise
expanded generously- as far as the periodicity of returns, number of return configuration and level of
subtle details required in these returns.

2. Input Tax Credit advantages and disadvantages

Presently, Banks and NBFC’s significantly pick the alternative of invasion of 50% of the
CENVAT credit availed against input and input services while CENVAT credit on capital
merchandise could be availed with no inversion conditions.

Under GST 50% of the CENVAT credit availed against inputs, input services, and capital products is
to be reversed which places them in a state of decreased credit of 50% on capital merchandise
consequently increases the cost of capital.

3. Assessment and Adjudication made troublesome

The assessment would be finalized by the respective state regulators under which the individual
branch is enrolled. At the moment every enlisted branch of bank and NBFC’s must legitimize its
position on changeability in the respective state and purpose behind using input tax credit in many
state.

As under GST more than one adjudicating authority will be included, every authority may hold an
alternate opinion on the same fundamental issue. This inconsistency in opinion will delay the
adjudication procedure. At present, a taxpayer is adjudged by a solitary adjudicating authority on an
issue included.

Under GST diverse adjudicating authority may take alternate view on a similar issue. Clearing up
and managing with the difference of opinion given by the diverse adjudicating authority would be
troublesome.

Gold Industry
The government of India is taking all steps to enlighten people about the GST and is also openly
addressing the fear of traders. The Gold and Silver Jewellery is one such sector under the GST
regime.

GST Rate on Gold Jewellery: Earlier And Now

GST impact on Gold Ornaments- The yellow metal much-loved by the Indians has been levied three
per cent under the new tax regime, around one per cent higher than what it was before. Hence, in the
light of the 3 percent GST tax on gold, the prices of jewellery in India is expected to rise.

Before GST, one per cent excise duty was slapped on gold and around one per cent was levied by
most of the states as Value Added Tax (VAT). Only Kerala used to tax gold at five per cent. The
buyers in Kerala now have to spend less for gold than have been, the state government is looking up
to the Centre to cover the losses in revenue it will see once the new rates are effective.

36
On the other hand, uncut diamonds have been taxed at 0.25% to keep the audit trail, like gold, three
per cent tax have been levied on silver and polished diamonds coupled along with making charges
taken by jewellers.

Suresh Nair, Tax Partner, Ernst and Young, said, ‘In spite of a near vertical division, the GST
Council manages a consensus on the rate of tax gold at 3 per cent. This adds on to another new tax
rate under GST regime.

Textile/Readymade Garment Sector

Textile industry will be benefitted through GST implementation in India.

The advantages are following:

 Break in input credit chain supply

 Reduction in manufacturing price
 Input credit allowed on the capital goods

Ready-made garments up to Rs. 1000 is exempted from GST and branded garments above Rs. 1000 will be
taxed at 12%.

FMCG industry (Fast moving consumer goods)

FMCG sector is one of the biggest economic platforms in India. After the GST implementation
Mostly FMCG products and services are taxed under 18 to 20 per cent. Lower GST rates, give
benefits to the business holder, manufacturers and consumer directly.

GST in India- Story so far

In 2006, A proposal to GST was first introduced in April 1, 2006, which was first initiated in Budget
Speech for Financial Year 2006-2007.

In 2007, in the month of May, Empowered Committee of State Finance Ministers started work on
roadmap of GST and further in NOV. 2007, first report to the Committee was submitted by Working
Group.

In 2008, Committee finalised its first report and submitted by name: “A MODEL AND ROADMAP
FOR GOODS AND SERVICES TAX IN INDIA”

In 2009, Empowered Committee releases on first paper discussion in Nov. 2009.

In 2010, Finance Minister, mention in his speech to introduce GST from April 2011.

37
In 2013, month of August, full report on GST was submitted by Standing Committee and in Nov.
2013, there was a rejection in Government Proposal by Empowered Committee for including
Petroleum Products.

In 2014, by the end of Dec., the Constitution 122th Amendment Bill was passed in Lok Sabha to
levy GST, which enables the introduction of GST.

Finally, on 3rd August, 2016, the Constitution 122nd Amendment bill passed by Rajya Sabha and it
will be applicable from April 2017.

38
 CHAPTER-3

Literature Review

39
The proposed GST is likely to change the whole scenario of current indirect tax system. It considered
as biggest tax reform since 1947. Currently in India complicated indirect tax system is followed with
imbrication of taxes imposed by union and states separately. GST will unify all the indirect taxes
under as umbrella as well create a smooth national market. Expert says that GST will help the
economy to grow in more efficient manner by improving the tax collection it is will disrupt all the
tax barriers between states and integrate country by single tax rate.

GST was first introduced by France in 1954 and now it is followed by 140 countries. Most of the
counties followed unified GST while some countries like Brazil, Canada follow a dual GST system
where tax imposed by central and state both. In India also dual system of GST is proposed including
CGST and SGST.

 According to Tan and Chin-Fat(2000) ,Malaysian understanding regarding GST

was still low. Based on study conducted by Djawadi and Fahr(2013) pointed out that
knowledge about tax is important to increase the thrust of authorities and also the
citizens.
 Tulu(2007) , indicate that other factors such as taxpayers attitude or morale found to
the result of lack of awareness has found to have little impact on taxpayers attitude
towards taxation. A lot of individual or taxpayers might want to comply in full with the
tax systems, but are unable to do so because they are not aware of lack of understanding
their full obligation. Even they understand their obligation they must know how to
comply with it because of there is no two way communication between the authorities
and taxpayers.
 Ehtisham Ahmed and Satya Poddar(2009) studies,” Goods service tax reforms
and intergovernmental consideration in India” and found that GST introduction will
provide implies and transport tax syatem with increase in output and productivity of
economy in India. But the benefits of GST are critically dependent on rational design of
GST.
 According to Palil et al.(2010), Public awareness towards GST is low can happen
due to introduction of GST especially in the early years such as lack of familiarities
with the new system. There are several factors that discouraged customers from
accepting GST implementation in Malaysia and the most important factor among all is
a from of price increase and will cause the inflation.
 Dr. R. Vasanthagopal (2011), conducted a study on,” GST in India: A big leap in
the indirect Taxation system” and conducted that switching to seamless GST from
current complicated indirect tax system in India will be positive step in becoming
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.

40
  Djawadi and Fahr(2013), This study is pointed out that knowledge about tax is
important to increase the thrust of authorities and citizen. The researcher used structure
equation modelling to examine the relationship between tax awareness and tax
knowledge and researcher found that tax knowledge have positive relationship with tax
awareness. Hence taxpayer will be more aware about tax system when they have
knowledge and understanding towards tax system.
 NishithaGuptha(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.
 International Journal of innovative studies in sociology and
humanities(2016), A study on impact of GST after implementation Milan-deep kaur
and his co-authors Assistant Proff. from Eternal University Himachal Pradesh talks
about the impact of GST and implementation of it, benefit and challenges. He also
emphasises that GST is going to change things in current situation.
 Shakwipee(2017), A study conduct on the inquiring the level of awareness towards
GST among the small business owners in Rajasthan state, found that the main areas to
be focused include the training errors and computer software availability.
 Times of India dated(27 July,2017), stated that the GST implication across
different places for the same product has wider differences which the consumer are
unaware resulting them in surprise Ex A Rasamalai sold in counter at 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.

41
 CHAPTER-4
Research Methodology

42
Introduction of Research Methodology
Research is a logical and systematic search for new and useful information on a particular topic.
Research methodology is a systematic way to solve a problem. It is a science of studying how
research is to be carried out. Essentially, the procedure by which researchers go about their work of
describing, explaining and predicting phenomenon are called research methodology.

About my Research Problem:

The present research is exploratory in nature. Since GST is a new phenomenon in India, there are
hardly any studies in this area. Specially there is a huge gap of empirical and behaviour studies on
GST in India. The study tries to find the significance of popular perception regarding GST.

Problem Statement:

The title of project Report:- A study on custom perception towards goods and
services tax in Haryana
Manufacturer to wholesaler taxing on total bill for the product sold wholesaler to distributor taxing
on total bill for the product sold distributor to retailer taxing on total bill for the product sold retailer
to consumer itemized/total bill taxing for the product bought.

Need of Study:
The need of study have to fill the gap that has identified in the previous researchers. Under this study
We know that how much level of understanding the GST and perception towards GSTs well as
traders, taxpayers concerned by GST.

Scope of the Study:

This study is conducted to find out the views of the consumer in Hmirpur District and to know about
their expenditure pattern and the variation. The respondents selected are of the mixed group which
will give study of cannot be justified for any other place.

Objectives of Study:
 To analysis customers perception regarding Goods and Service Tax(GST)
 To asses customer view regarding of GST in Haryana.
 To find out the perception and their views on new implemented taxation system.

43
Research Design:
A good research design has characteristics viz, problem definition, time required for research project
and estimate of expenses to be incurred the function of design is to ensure that the required data
collected and they are collected accurately and economically. A research design is purely and simply
the framework for a study that guide the collection and analysis data. In this project the two basic
types of research design are used:

 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 if ideas and insight. The exploratory study is particularly helpful in breaking broad and
vague problems in to smaller, more precise sub problem statements. Exploratory research is also
used to increase the familiarity with the problem under investigation.

 Descriptive Research
It is a design that one simply describe something such as demographic characteristics of people. The
descriptive study is typically concerned with determining frequency with which something occurs or
how two variables vary together. A descriptive study requires a clear specification of who, what,
when and why apex of the research.

Development of research plan has the following steps:

 Sample Design
 Sample Unit
 Sample Size
 Sample Technique

Data Collection
Data collection is the process to gather information about the relevant topic research, which is to be
Data collection usually takes place early in an improvement project, and its often formalized through
data collection plan which often contains the following activities:

 Pre collection activity on goals, target data, definition and methods.

 Collection of Data.
 Presenting findings involving some form of sorting analysis.

44
For accomplishing the objective of study, both primary and secondary data have been used. Data
collection through the primary data as well as secondary data sources.

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 information collected by researchers or persons himself where is
secondary data is collected by other but utilized or used by reasearchers. Data can be classified under
two categories depending upon source utilized. These categories are:

 PRIMARY DATA
 SECONDARY DATA

1. PRIMARY DATA: The study is largely based on the primary data which has been collected
through the structured Questionnaire Method.

 Using Primary Data Collection Tool:

Questionnaire;

The data has been collected by administrating a structured schedule of questions. The questions are
generally framed by 5 point Likert Scale and answers by respondent in form of Agree, Disagree,
Neutral, strongly agree and strongly disagree.

The questionnaire have been prepared for study the customer perception towards the goods and
service tax in Haryana.

For the present study purpose questionnaire method is used to collect the primary data. This
questionnaire is self administrated questionnaire and it is divided into two secrtions-Section A and
Section B.

 Section A consist the questions regarding Personal information.

 Section B consist the questions which fulfil the research objectives and it contains 20
questions.

2. SECONDARY DATA:

This type of data has already been collected by someone else and has already passed through
statistical process. This type of data has been collected from the following resources:

 SOURCES OF COLLECTION OF DATA

 Internet
 Books
 Journal
 Thesis
 Newspaper

45
  Govt Gazettes

For this study primary and secondary data both has been used for research topic.

Research Instrument

 QUESTIONNAIRE

A questionnaire is a research instrument consisting of a series of questions and other prompts for the purpose
of gathering information from respondents. Although they are often designed for statistical Analysis of the
responses.

RESEARCH PLAN;

Data source Primary data

Research approach Survey

Research instrument Questionnaire

Method of contact Personal

Sample size 50 respondants

46
 CHAPTER-5
Data Analysis and Interpretation

47
DATA ANALYSIS
The data collected various respondents have to analysis for the drawing conclusion. So in this
chapter efforts have been made to analysis and interpret the collective data towards perception of
customers .

First of all the collected have been presented in a tabular form and there after it is analysed with the
help of percentage and pie charts

How Indian GST model compares with GST in other countries

Particulars India (proposed) Canada UK

Name of GST Goods and Service tax Federal Goods and Service Value Added Tax
in the country Tax & Harmonized Sales
Tax

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

Threshold 20 lakhs (10 lakhs for NE Canadian $ 30,000 (Approx £ 73,000

exemption states) Rs. 15.6 lakhs in INR) (Approx Rs. 61.32 lakhs)
Limit

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

48
 Particulars India (proposed) Canada UK

Returns and Monthly and 1 annual Monthly, quarterly or Usually quarterly. Small
payments return annually based on turnover business option- annual

Reverse charge Apply on goods (new) as Reverse charge applies to Applicable

Mechanism well as services (currently importation of services and
under Service tax) intangible properties.

Exempt Manufacture of Real estate, Financial Medical, Education, Finance,

services exempted goods or Services, Insurance, Postal services
Provision of exempted Rent (Residence), Charities,
services (to be notified) Health, Education

India (proposed) Singapore Malaysia

Name of GST Goods and Service tax Goods and Service Tax Goods And Services Tax
in the country

Standard Rate 0% (for food staples), 5%, 7% Reduced rates- Zero 6%

12%, 18% and 28%(+cess rated, exempt
for luxury items)

Threshold 20 lakhs (10 lakhs for NE Singapore $ 1 million MYR 500,000

exemption states) (Approx Rs. 4.8 crore) (Approx Rs. 75 lakhs)
Limit

Liability arises Accrual basis: Issue of Accrual Basis: Issue of Accrual Basis: Delivery of
on invoice OR invoice OR Receipt of goods OR Issue of invoice OR
Receipt of payment payment OR Supply - Receipt of payment
-earlier earliest
Cash basis:(T/O upto
SGD$1mn): Payment

Returns and Monthly and 1 annual Usually quarterly Business Large organsations- Monthly
payments return option- Monthly
returns.

49
 Particulars India (proposed) Canada UK

Reverse charge Apply on goods (new) as Reverse charge applies to Reverse charge applies to
Mechanism well as services (currently supply of services imported services
under Service tax)

Exempt Manufacture of Real estate, Financial Basic food,Health

services exempted goods or services, Residential rental Transportation, Residential
Provision of exempted property, Agricultural land
services (to be notified)

**USA does not have GST as it ensures high autonomy for the states**
Thus we find GST model across the commonwealth countries are similar with some variations.
Unlike India, other countries have a much higher threshold for GST applicability thus reducing the
burden for small businesses. This will bring in challenges for our SMEs.
Earlier countries implemented GST and faced many problems post-implementation.
Are you worried about how GST will impact your business? Register with us at Clear Tax to keep
yourself up to date on GST. We also have experts to help you to smoothly transit to GST.

50
 CHAPTER-6

SUMMARY, FINDINGS AND CONCLUSION

51
 Summary of the study

This project report helped me to get deeply understanding the “Customers perception towards the
Goods and Services Tax(GST) of Haryana.”

The main focus of this study was to asses the perception of customers regarding the Goods and
Service tax in Haryana. The study is structured of five chapters namely, introduction, literature
review, research methodology, data analysis and interpretation and last one is summary and
conclusion.

First chapter are covers of introduction of the taxation system, background of GST in outside of
India and with in India. Concept of GST, Types of GST, impact of GST in different sectors and
benefits of GST.

The second chapter i.e Literature Review it includes more than 10 studies of different researchers are
analysis carefully.

In third chapter i.e research methodology highlights the problem statement, scope of study, need of
study, objective of study, research design, sampling design, sample technique and data collection
methods.

The fourth chapter i.e data analysis and interpretation efforts have been made to analysis the data
with the help of mathematical tools are used percentage method.

52
 Findings of the Study

 Most of the respondents are male.

 More than 60% respondents are related to businessman category.
 The most of the customers perception that GST is very beneficial in long term for economy
of the country and also effect GDP.
 Maximum of the people have perception that they still need more charity on GST and opened
that they discuss abput GST with others.

Suggestions

 The customers suggested that there should be a smooth, transparent and simple transition
provisions which is easily understandable.
 Special focus on awareness and training of all officers, professionals and assesses should be
given on GST.
 Since the public are very clear about GST, any disputes on GST introduction should be
protectively addressed by way of speedy redress.
 Gradual stages may be employed for implementation like the agricultural sector, then
industrial and then the service sector.
 Lastly, the government must ensure a good management of the income collected from the
GST.

53
 Conclusion

This study highlighted the overall overview of GST in Haryana. The government to put in more
effort to ensure that consumers have a clear understanding and develop a positive perception towards
GST, leading to its acceptance, good understanding among customers is important as it can generate
a positive perception towards the taxation policy. The Haryana custom department could initiate and
promote an extensive publicity programme which could help to create awareness and generate
positive perception among customers in understanding the rationale and importance of GST in India.

54
 BIBLIOGRAPHY

1. www.gstindia.com
2. https://en.wikipedia.org
3. www.gstn.org
4. www.cbec.gov.in
5. www.financialexpress.com
6. www.gstcouncil.gov.in
7. ^”GST: Cars, durables face 28% rate ;luxury vehicle to attract 15% cess” ,Business standard,
18 May 2020
8. ^http://www.business-standard.com/article/economy-policy/gst-impact-trucks-travel-time-in-
interstate-20-says-govt-117073000276_1.html

55
 QUESTIONAIRE

Q1 Do you think implementing gst will cause higher prices of goods and services ?

( ) Yes ( ) No

Q2 How do you get know about GST form?

( )friend/family ()Mass media ( )Online source ( ) Other

Q3 Do you agree the implementation of GST in Malaysia ?

( ) Yes ( ) No

Q4 Which system do you think is more beneficial to both government and people?

( ) Goods and services tax ( ) Sales tax and service tax

Q5 Do you think GST will burden the people/consumer ?

( ) Yes ( ) No

Q6 Do you think india is ready for implementing GST system?

( ) Yes ( ) No

Q7 Do you think GST is needed for business ?

( ) Yes ( ) No

Q8 Has GST impacted your distribution supply chain ?

( ) Yes ( ) No ( ) May be

Q9 Are you satisfied with deadlines given for GST compliances?

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 ( ) Yes ( ) No

Q10 What could the government have done better ?

( ) Better industry outreach through industry association

( ) More transparency of finding of the sectoral groups formed by GST council

( ) Proper training of GST officer and making the helpdesk more effective

( ) None of the above

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