Arti Black Book

" (IMPACT OF GST ON CONSUMERS) "
A project submitted to
University of Mumbai
for partial completion of the degree of
B. Com (Accounting and Finance)
Under the Faculty of Commerce
SUBMITTED BY
" ARTI SANTOSH TIPPREDDY "
UNDER THE GUIDANCE OF
______________________
SASMIRA COLLEGE OF COMMERCE AND SCIENCE
Sasmira Marg, Worli Mumbai 400030
ACADEMIC YEAR 2019 – 2020
1
" (IMPACT OF GST ON CONSUMERS) "
A project submitted to
University of Mumbai
for partial completion of the degree of
B. Com (Accounting and Finance)
Under the Faculty of Commerce
SUBMITTED BY
“ARTI SANTOSH TIPPAREDDY “
UNDER THE GUIDANCE OF
______________________
SASMIRA COLLEGE OF COMMERCE AND SCIENCE
Sasmira Marg, Worli Mumbai 400030
ACADEMIC YEAR 2019 – 2020
2
Certificate
This is to certify that Ms/Mr __________________________ has worked and duly completed
her/his Project Work for the degree of B.Com ( Accounting and Finance) under the Faculty of
Commerce in the subject of commerce and her/his project is entitled, “Impact of GST on
consumer” under my supervision.
I further certify that the entire work has been done by the learner under my guidance and that
no part of it has been submitted previously for any Degree or Diploma of any University.
It is her/ his own work and facts reported by her/his personal findings and investigations.
Name and Signature of
Guiding Teacher
Date of submission:
3
DECLARATION BY LEARNER
I the undersigned Miss ARTI SANTOSH TIPPAREDDY here by, declare that the work
embodied in this project work titled “IMPACT OF GST ON CONSUMER”, forms my
own contribution to the research work carried out under the guidance of PROF. TRIPURARI
JHA is a result of my own research work and has not been previously submitted to any other
University for any other Degree/ Diploma to this or any other University.
Wherever reference has been made to previous works of others, it has been clearly indicated
as such and included in the bibliography.
I, here by further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.
ARTI SANTOSH TIPPAREDDY
Certified by
PRO. TRIPURARI JHA
4
Acknowledgment
To list who all have helped me is difficult because they are so numerous and the depth is so
enormous.
I would like to acknowledge the following as being idealistic channels and fresh dimensions
in the completion of this project.
I take this opportunity to thank the University of Mumbai for giving me chance to do this
project.
I would like to thank my Principal, Dr. Ritu Bhattacharyya for providing the necessary
facilities required for completion of this project.
I take this opportunity to thank our Coordinator PROF. TRIPURARI JHA, for her moral
support and guidance.
I would also like to express my sincere gratitude towards my project guide

_____________________________ whose guidance and care made the project successful.
I would like to thank my College Library, for having provided various reference books and
magazines related to my project.
Lastly, I would like to thank each and every person who directly or indirectly helped me in
the completion of the project especially my Parents and Peers who supported me throughout
my project.
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INDEX
Chapter Title Page no.

Certificate
Declaration
Acknowledgement
Abstract
Chapter1 Introduction
1.1 Before GST tax system
1.2 Introduction to GST
1.3 GST rates
1.4 GST bill
1.5 Cascading effect of taxation
1.6 How GST will be a remedy?
1.7 Different types of GST
1.8 Features of GST
1.9 Advantages of GST
1.10 Disadvantage of GST
1.11 Impact of GST on various
sectors
1.12 Types of GST returns
applicable under GST law (GST
forms)
1.13 GST return filling online

1.14 Penalty
1.15 For late filing
1.16 Key focus for successful GST

implementation
1.17 GST impact on common man’s
budget
1.18 The challenges of implementing
GST
1.19 NEWS
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Chapter 2 Research methodology
2.1Objectives
2.2 Research Gap
2.3 Hypothesis
2.4 Research design
2.5 Scope of the study
2.6 Limitation of the study
2.7 Sources of data collection
2.8 Methods of data collection
2.9Techniques and tools
Chapter 3 Literature Review
Chapter 4 Data analysis, interpretation and

presentation 4.1 Research analysis
4.2 Hypothesis testing
Chapter 5 Findings and conclusions

• Suggestions
• Bibliography
• Annexure
• Questionnaire
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ABSTRACT
GST means goods and services tax, it is an indirect tax levied on supply of goods and
services. It is an important tax reform in India. The company supply goods and services need
to understand the consumer behavior, so they can sale as much as possible. The consumer
behavior changes due to taxation which is levied on all goods. Consumers purchase decision
changes due to tax included in goods and services, and due to this the prices of products
increases and some consumers doesn’t able to buy the products. Any change in taxation the
consumer behavior changes. Due to implementation of GST it has impacted on all sectors and
price of goods of day to day use increased in some products and in some it remains same. For
this research paper, responses were collected from primary data and secondary data. To
collect data, the sample size was 60 responses. The findings show that consumer are well
aware about the concept of GST, due to implementation of GST it is affected on purchase
decision of consumer, the decision on purchasing products has not change on every product it
is changed in some products and the prices of some products remain same. Also find out that
implementation of GST is somehow benefit to the consumers.
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CHAPTER NO.1
Introduction
In India consumers pay VAT which means value added tax, then the government decided to
implement new tax i.e., GST means Goods and Services tax is an indirect tax on the supplied
of goods and services. This law has replaced many indirect taxes that previously existed in
India. GST is one Indirect tax for the entire country. It is implemented by prime minister on
1st July 2017. There are slab rates of GST as, 0%, 5%, 12%, 18%, 28%and also different
types of GST as, IGST, CGST and SGST.
1.1Before GST Tax System

In the last decade, there was various taxes levied by the central government, state government
and local municipal bodies. Article 256 of the constitution states that “no tax shall be levied
or collected except by the authority of law”. Tax structure in India is divided into direct taxes
and indirect taxes. Direct taxes are levied on individual, corporation entities, this tax burden
cannot be transferred to another and it has to be paid by assesse themselves. Indirect taxes are
levied on sale and provision of goods and services, in this burden of taxes is transferred from
one another. Burden to collect and deposit taxes is on the seller instead of assesse directly.
Tax structure before GST
Indian Taxation System
Direct Tax Indirect Tax
Value Custom
Income Tax Wealth Tax Excise Duty Service Tax
Added Tax Duty
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A. Direct Tax
1. Income Tax
A Government impose tax on income generated by business and individuals within their
jurisdiction. The tax who pays need to file income tax return annually to determine their tax
obligation. Income tax is revenue for the government, this fund which is generated is used for
public services, pay government obligation and provide goods for citizens. There are some
investment which are exempt from income tax. People who earn higher income needs to pay
higher tax and lower income group need to pay less income tax. Government collect tax from
business and individuals both, these funds are utilized for public welfare, and recover the
expenses amount incurred in war.
(a) Individual Income Tax
It is personal income tax and is levied on salary, wages and other types of income. In this
income there are some exemptions, deduction and credits, individual does not have to pay tax
on all their income, but only on few income they have to pay.
(b) Business income tax
Business pay their income tax on their earnings, the IRS considers corporations, partnerships,
self-employed contractors, and small businesses as taxable entities. These all entities show or
report their business income they earned and deduct there operating and capital expenses.
(2) Wealth Tax
The Wealth Tax is commenced on 1st April 1957 and enacted by Parliament of India. It
provides for the levying of wealth of tax on an individual, Hindu Undivided Family (HUF) or
company. Wealth tax is levied on the net wealth owned by a person on a valuation date. The
tax is levied @ 1%on the amount of net wealth on 31st march for every year, such amount
exceeds Rs. 15,00,000.
(B) Indirect Tax

(1) Value Added Tax
It is a consumption tax, levied on the product whenever value is added at each stage of the
supply chain, from production to the point of sale. This VAT is payed by the consumer on the
cost of product, less any of the cost of materials used in the product that have already been
taxed.
(2) Excise duty
Excise duty is levied on the manufacture of goods within the country. For this tax there is no
requirement of sale of goods, it is already been imposed on manufacture of such goods. This
tax consumer does not pay directly to the authorities, but it is added to the cost of the product,
which directly increase the price of the product. It is first paid by the producers on the cost of
product and then it is indirectly paid by the consumer.
(3) Custom Duty
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Custom duty defined under the Act 1962, it is levied by the government on the export or
import of goods. Custom duty fall under the Central Board of Excise & Customs (CBEC). It
is levied as per the value of goods or dimensions, weight and other such criteria according to
goods in question.
(4) Service Tax
Service tax is levied on services provided or agreed to be provided excluding services
covered under negative list and considering the place of provision of service rule, 2012 and
collected as per point of taxation rules, 2011from the person liable to pay service tax. It is
levied by the central government and any person is liable to pay tax, the person may be
service provider or service receiver or other person made so liable.
1.2 Introduction to GST
Fig 1
There are two types of taxes direct tax and indirect tax. Direct taxes are applied on income
and indirect taxes are applied on goods and services. So here, GST is an indirect taxes which
is applied on goods and services, it also removed vat and some other taxes. GST is a value-
added tax levied at all points in the supply chain, with credit allowed for any tax paid on
input acquired for use in making the supply. There are exemption also which is to GST. The
constitution amendment bill for goods and services tax (GST) has been approved by president
of India on 8 September 2016, following the bill’s passage in the Indian parliament and its
ratification by more than 50% of state legislature. By the time implementation of GST it
impact on almost all aspect of business operations in India.
GST is based on destination principle. It is applied at the place where actual consumption
happens. GST came into effect from 1st July, 2017 it has been implantation through one
hundred and first amendment of the constitution of India by the Indian government. It has
been replaced by the multiple taxes levied by the central and state government. GST is levied
by the central government(CGST) and state government (SGST). When there is trade within
state then CGST and SGST are applied. If there is inter-state supplies within India then
integrated goods and service tax will be levied.
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GST council constituted by the president of India he has started this council within 60days of
commencement of the constitution Act 2016. The article 279A of the constitution come into
force w.e.f 12-09-2016 and notified dated 15-09-2016. In GST council there are 33 members,
out of which 2 members are of center and 31 members are from 29 states and 3 union
territories with legislation.
In this there are following members
(a) The union finance minister as the chairperson;
(b) The union minister of state in charge of revenue or finance as a member;
(c) The minister in charge of finance or taxation or any other minister nominated by each
state government as the members.
There is also vice-chairperson choose by the state finance minister one amongst them for
such period as they may decide.
On petroleum crude, high speed diesel, motor spirit diesel, motor spirit (commonly known as
petrol), natural gas and aviation turbine fuel, on all this GST council shall recommended the
date on which the goods and service tax be levied.
Government has set up the goods and services tax and network (GSTN) as a private company
under erstwhile section 25 of the companies Act 1956. It provides to the taxpayers namely
registration, payment and return. It is developing back end IT modules for 27 states. GSTN is
providing IT infrastructure and services to central and state government, taxpayers and other
stakeholders for implementation of GST.
1.3 GST rates1

Tax Products
Rates
0.25% Cut and semi-polished stone are included under this tax slab
5% Households necessities such as edible oil, sugar, spices, tea and coffee (except instant)
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
18% Hair oil, toothpaste and soaps, capital goods and industrial intermediaries are covered
in this slab.
28% Luxury items such as small cars, consumer durables like AC and Refrigerators,
premium cars, cigarettes and aerated drinks, high-end motorcycles are included here.
Tabl 1, Source: https://www.wishfin.com/gst-tax-rates-list/goods-and-services-tax/
GST is not levied on vegetables and fruits this are basic necessity items.
1
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In the above table, there are different rates are levied on all different items. 5% GST is levied
on sugar, tea and coffee, and it is not levied on milk and also included sweets items. 12%
GST rate levied on frozen meat products, butter, cheese, ghee, dry fruits, animal fat,
sausages, ayurvedic medicines, cellphones, tooth powder, umbrella, sewing machine, etc.
18% GST levied on toothpaste and soaps, and some capital goods, and industrial
intermediaries. 28% GST levied on luxury items like small cars, consumer durables like AC,
refrigerator, premium cars, and cigarettes, drinks, motorcycles, etc.
There are some items not include in GST are as follows:-
2 Betel leaves
3 Buttermilk
4 Coconuts
5 Curd
6 Educational services
7 Firewood
8 Eggs
9 Fish
10 Human blood
11 Indian national flag
12 Jaggery
13 Khadi yarn
14 Municipal waste sewage, clinical waste
15 Non-alcoholic today
16 Plastic bangles
17 Printed books
There is a saying in Kautilaya's Arthshastra, the first book on economics in the world, that the
best taxation regime is the one which is ""liberal in assessment and ruthless in collection"".
The proposed GST seems to be based on this very principle.
Introduction of an integrated Goods and Services Tax (GST) to replace the existing multiple
tax structures of Centre and State taxes is not only desirable but imperative in the emerging
economic environment. Increasingly, services are used or consumed in production and
distribution of goods and vice versa. Separate taxation of goods and services often requires
splitting of transactions value into value of goods and services for taxation, which leads to
greater complexities, administration and compliances costs.
Further, Indian economy is getting more and more globalised. In recent times, a number of
Free Trade Agreements (FTAs) have been signed, which will allow imports into India duty
free or at very low duties. Hence, there is need to have a nation-wide simple and transparent
system of taxation to enable the Indian industry to compete not only internationally, but also
in the domestic market. Integration of various Central and State taxes into a GST system
would make it possible to give full credit for inputs taxes collected. GST being a destination-
based consumption tax based on VAT principle, would also greatly help in removing
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economic distortions caused by present complex tax structure and will help in development
of a common national marked.
A basis pre-requisite for introduction of GST meaningfully is that both the Centre and the
State should replace existing taxes like Excise, State Sales Tax/ VAT, CST, Entry
Tax and all other cascading-type Central/ State levies on goods and services. Any losses on
account of abolition of multiple taxes are likely to be balanced by the additional GST
revenues that will obtain from taxation of services and from access to GST on imports.
Moreover, India would obtain full efficiencies of a single national VAT, while retaining a
federal structure. This would also be the logical conclusion of the efforts that have been made
in the country during last 2 decades in moving towards VAT.
The benefits of GST legislation will be uniformity of laws across the board, greater
transparency, neutrality in tax rates on various products; credit availability on interstate
purchases and reduction in compliance requirements. If GST is implemented in the true spirit,
it will have many positives for the stakeholders and will lead to a better tax environment.
Introducing GST will do more than simply redistribute the tax burden from one sector or
group in the economy to another. The introduction of the GST brings about a macroeconomic
dividend as it reduces the overall incidence of indirect taxation and therefore the overall tax
burden by removing the many distortionary features of the present sales tax system. There are
four important macroeconomic channels through which this happens:
1. First, the failure to tax all goods and services distorts consumption decisions; it
weakens the signaling power of relative prices. GST reduces these distortions and
enables all economic agents to respond more effectively to price signals.
2. Second, the unrefunded taxation of capital goods discourages savings and investment
and retards productivity growth. This is perhaps the most important gain through
introduction of GST in an emerging economy like India.
3. Third, for a given constellation of exchange rates and price levels, violation of the
destination principle places local producers at a competitive disadvantage, relative to
producers in other jurisdictions.
4. Fourth, differences in tax bases of different States and the Central government
greatly increase costs of doing business. The GST based tax reform provides a real
policy opportunity to do something about this problem without waiting for prior and
sweeping political economy changes.
The ongoing economic down turn and slowdown of economy across the world has, however,
given India a golden opportunity to stake claim and get a cushioned berth in the world order.
To achieve this, the country nevertheless needs to increase its GDP to at least twice that of
the present level.
The direct taxation regime has been by and large undergoing annual fine tuning and as a
result the revenue receipt in this account has considerably increased. However, reform on
such scale in indirect taxes has not been done so far.
Indirect taxes are therefore urgently required to be rationalized and unified. If the GST is
introduced in letter and spirit, it would certainly increase the volume of tax collection. This
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will provide a great stimulus to our gently moving economy, which has, of late, arrived at a
level playing field vis-a-vis many major economies of the world.
1.4 GST bill

Goods and Service Tax is an indirect tax levied when consumer buys goods or service. It is a
destination based tax levy on manufacture, sale and consumption of goods as well as services.
GST aims is to replace all indirect taxes which was levied on goods and services by the
Indian central and state government. GST subsume with a single comprehensive tax, levied
on goods and service, it removed the cascading effects in tax and now it is easy to collect tax.
Because of GST there is increase in revenue of the government. It is eliminating the
cascading effects on the production and distribution prices of goods and services.
1.5 Cascading effect of taxation

The current multi-staged tax structure has charges from the State and Union governments
separately, leading to cascading effect of taxes. There are taxes at different rates and at
multiple points. The Centre has taxes like Income tax, service tax, central sales tax, excise
duty and security transaction tax while at the State level it includes VAT or sales tax, octroi,
state excise, property tax, entry tax and agriculture tax. These taxes lead to increased tax
burden on the Indian products affecting the prices and sales in the domestic as well as
international markets.
1.6 How will GST be a remedy?

Remedy to the above scenario of multiple taxes and its cascading effect which is a burden on
common man is GST. The framework of proposal has dual GST which means it will have a
federal structure. GST will basically have three kinds of taxes namely Central, State and one
called integrated GST that will help to tackle inter-state transactions. Integrated tax is levied
on inter-state transaction for eg. Mr. ravi is from Maharashtra and he wants to purchase goods
from Mr. suraj who is from Rajasthan, so here tax will be levied of Integrated goods and
service tax. Under the current GST tax reform, all forms of supply of goods and services like
transfer, sale, barter, exchange and rental will have a CGST and SGST.
1.7 Different types of GST
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SGST (GST to be
Dual GST (Non-
levied and
Concurrent Dual
collected by
GST)
states)
CGST (GST to be Dual GST

levied and (Concurrent Dual
collected by
Centre)
GST GST)
1. Central Goods and Service Tax is levied when there is intra-state transaction of goods and
services. If customer is buying goods from same state then CGST will be levy on his
purchase goods or services, he/ she has to be paid half percent to CGST.
2. State Goods and Service Tax is levied on goods or service. When transaction is made
within the state then SGST will be levy on that goods or services.
For eg. Mr. Ram from Mumbai dealing in equipment. Mr. Sham give order to the Mr. sham
to send the equipment to Pune of Rs. 40000.
So, In this transaction is made within the state, then CGST and SGST will be levy on goods.
The tax will be @12%, so here tax will be paid to CGST and SGST 1:1 percent to both of
them.
3. Concurrent Dual GST

In this GST will be levied by both two tiers of government concurrently. The central GST
will be levied by central government and state GST will be levied by state government. Thus
GST will be charged by both central government and state government. A central level GST
will subsume central tax such as excise duty, CVD, SAD, service tax and state level GST will
subsume VAT, octroi, entry taxes, luxury tax, etc.
In this above tax, both goods and services would be subject to concurrent taxation by the
centre and states. This variant is closer to the model recommended by the Kelkar committee
in 2002.
Advantages
 There is no change in current structure of indirect taxation and this concurrent dual
GST can be easily achievable in short term.
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 It requires least change in infrastructure of tax departments at the union and state
levels.
 Concurrent dual GST maintains balance between centre and state and the need for
harmonization.
 It improves the competitive environment for company working globally.
 It removes the cascading effects significantly.
 It empowers both levels of government to apply the tax to a comprehensive base of
goods and services, at all points in the supply chain.
 As single taxation system it reduces cost to the customer.
Disadvantage
 There will always be uncertainty since States might depart from the principles of
uniformity.
 It is not an ideal model. It can be a temporary or transitional model since tax would
continue to be levied at two levels.
 To frame a comprehensive model for taxation of Inter-State transaction of goods and
services and sharing of its revenue and amongst the state will be charge.
 Compliance cost may not reduce significantly.
Non-concurrent Dual GST

In the concurrent dual GST, the Centre and State government taxes apply concurrently on
supply of goods and services. It possess to challenges, first it requires a constitutional
amendment. Second a framework is required to defined the place of supply of inter-state
services and for the application of State GST to them.
Therefore, as suggested in the Poddar Ahmed working paper, to circumvent both of these
hurdles, GST on goods can be by the state only and on services by the centre only. The state
government can levy tax on goods which are purchased or sale, but cannot levy tax on
services and centre can levy tax on service, but cannot levy tax on goods.
Further, there are some debates under existing scenario where it is not possible to determine
whether a particular transaction is goods or service and whether it is subject to levy of service
tax or excise duty. Some such examples are software, sim cards, etc. which are under
litigation in present circumstances. These classification-related disputes will continue to be
there in GST if the non-concurrent model of GST is adopted.
(5) IGST
This is also a part of IGST. IGST means integrated goods and service tax, this a tax comes
under the three categories of GST tax (CGST, SGST and IGST), it is a concept of one nation
one tax. When there is movement of goods from one state to another state, then IGST will be
charged on goods or services.
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For example: If goods are transferred from Mumbai to Chennai, then IGST will be levied on
goods or services. Therefore, the revenue which is earned out of IGST is shared by state
government and central government as per the given rates of authorities.
Under the GST regime, an Integrated GST (IGST) would be levied and collected by the
Centre on inter-State supply of goods and services. Under Article 269A of the Constitution,
the GST on supplies in the course of inter-State trade or commerce shall be levied and
collected by the Government of India and such tax shall be apportioned between the Union
and the States in the manner as may be provided by Parliament by law on the
recommendations of the Goods and Services Tax Council.
(6) UTGST
UTGST means union territory of goods and service tax. This is also a part of GST. When
goods and services are trade from one state to the any union territory, then UTGST will be
levied on goods or services. There are total nine union territories in India, they are Andaman
and Nicobar, Chandigarh, Dadra and Nagar Haveli, Daman and Diu, national capital territory
of Delhi, Jammu and Kashmir, Ladakh, Lakshadweep and Puducherry (Pondicherry).
The reason behind UTGST applicability in GST is that the common State GST (SGST)
cannot be applied in an Union Territory without legislature.
To address this issue, GST Council has decided to have Union Territory GST Law (UTGST)
which would be at par with SGST. However, SGST can be applied in Union Territories such
as New Delhi and Puducherry, since both have their individual legislatures, and can be
considered as “States” as per GST process.
GST model proposed in India

In India it is being proposed to implement this concurrent model of dual GST. This is also the
model which was recommended by Kelkar Committee in its report submitted in the year
2002. As stated while discussing this model, special concerns are to be given while framing
provisions on inter-state supply. The 1% additional levy proposed in this respect on inter-
state movement of goods and services is one of the three reasons behind non approval of GST
by the opposition.
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1.8 Features of GST
1. Levy of GST : GST will be levied of CGST, SGST and IGST. The centre will levy centre
goods and service tax and the centre will levy state goods and service tax, this will be levied
on goods or services which is trade within the state. The centre will levy IGST in the case of
(i) inter-state supply of goods and services, (ii) imports and exports, and (iii) supplies to and
from special economic zones.
2. Exemptions from GST: The centre exempt certain goods and services from the purview
of GST through a notification. This will be based on recommendations of the GST Council.
3. Turnover limit under GST and tax right over low turnover entities: GST is applied when
turnover of the business exceeds Rs 20lakhs per year (Limit is Rs 10lakhs for the North-
Eastern States). Traders who would like to get input tax credit should make a voluntary
registration even if their sales are below Rs 20 lakh per year. Traders supplying goods to
other states have to register under GST, even if their sales is less than Rs 20 lakh. There is a
composition scheme for selected group of tax payers whose turnover is up to Rs 75 lakhs a
year.
4. The four-tier rate structure: The GST proposes a four-tier rate structure. The tax slabs
are fixed at 5%, 12%, 18% and 28% besides the 0% tax on essentials. Gold is taxed at 3%.
The centre has strictly demanded and got an additional cess on demerit luxury goods that
comes under the high 28% tax. Essential commodities like food items are exempted from
taxes under GST.
Other consumer goods which are common items will be taxed at 5%. The new GST seems to
have two standard rates – 12% and 18%. GST rate structure for the goods and services are
fixed by considering different factors including luxury/necessity nature.
5. Tax revenue appropriation between the centre and states: The centre and states will
share GST tax revenues at 50:50 ratio (except the IGST). This means that if a service is taxed
at 18%, 9% will go to the centre and 9% will go to the concerned state.
6. Input tax credit: Every taxpayer while paying taxes on outputs may take credit for taxes
paid earlier by the supplier on inputs. However, this will not be applicable on supplies related
to: (i) motor vehicles when used for personal consumption, (ii) supply of food, health
services, etc. unless they are further used to make a supply.
7. Taxable amount (value of supply): The GST levied on the supply of goods and services,
whose value will include: (i) price paid on the supply, (ii) taxes and duties levied under other
tax laws, (iii) interest, late fee, penalties for delayed payments, among others.
8. Refunds and welfare fund: Any taxpayer may apply for refund of taxes in cases
including: (i) payment of excess taxes, or (ii) unutilised input tax credit. The refund may be
credited to the taxpayer, or to a Consumer Welfare Fund under certain circumstances.
9. Returns: Every taxpayer should self-assess and file tax returns on a monthly basis by
submitting: (i) details of supplies provided, (ii) details of supplies received, and (iii) payment
of tax. In addition to the monthly returns, an annual return will have to be filed by each
taxpayer.
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10. Apportionment of IGST revenue: The IGST collected will be apportioned between the
centre and the state where the goods or services are consumed. The revenue will be
apportioned to the centre at the CGST rate, and the remaining amount will be apportioned to
the consuming state.
1.9 Advantages of GST

1. GST eliminates the cascading effects of tax
GST levied on all goods and services, it is a destination based tax and comprehensive tax. It
is stated that one nation one tax. Before GST there was not only one tax was levied on goods
there was various taxes has been levy on goods or services. Because of these there was more
one tax has been levied. But, when GST was implemented, it removed the cascading effects
of tax.
2. Higher threshold for registration
Earlier, in the VAT structure, any business with a turnover of more than Rs 5 lakh (in most
states) was liable to pay VAT. Please note that this limit differed state-wise. Also, service tax
was exempted for service providers with a turnover of less than Rs 10 lakh.
Under GST regime, however, this threshold has been increased to Rs 20 lakh, which exempts
many small traders and service providers.
Let us look at this table below:
Tax Threshold Limits
Excise 1.5 crores
VAT 5 lakhs in most states
Service Tax 10 lakhs
GST 20 lakhs (10 lakhs for NE states)
Table 2: source: secondary data: https://cleartax.in/s/benefits-of-gst-advantages-

disadvantages
3. Composition scheme for small businesses

Under GST, small businesses (with a turnover of Rs 20 to 75 lakh) can benefit as it gives an
option to lower taxes by utilizing the Composition scheme. This move has brought down the
tax and compliance burden on many small businesses.
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4. Simple and easy online procedure
The entire process of GST (from registration to filing returns) is made online, and it is super
simple. This has been beneficial for start-ups especially, as they do not have to run from pillar
to post to get different registrations such as VAT, excise, and service tax.
Our Clear Tax GST software is already on a roll filing GST returns
5. The number of compliances is lesser

Earlier, there was VAT and service tax, each of which had their own returns and
compliances. Below table shows the same:
Under GST, however, there is just one, unified return to be filed. Therefore, the number of
returns to be filed has come down. There are about 11 returns under GST, out of which 4 are
basic returns which apply to all taxable persons under GST. The main GSTR-1 is manually
populated and GSTR-2 and GSTR-3 will be auto-populated.
6. Defined treatment for E-commerce operators

Earlier to GST regime, supplying goods through e-commerce sector was not defined. It had
variable VAT laws. Let us look at this example:
Online websites (like Flipkart and Amazon) delivering to Uttar Pradesh had to file a VAT
declaration and mention the registration number of the delivery truck. Tax authorities could
sometimes seize goods if the documents were not produced.
Again, these e-commerce brands were treated as facilitators or mediators by states like
Kerala, Rajasthan, and West Bengal which did not require them to register for VAT.
All these differential treatments and confusing compliances have been removed under GST.
For the first time, GST has clearly mapped out the provisions applicable to the e-commerce
sector and since these are applicable all over India, there should be no complication regarding
the inter-state movement of goods anymore.
Read a more detailed analysis of the impact of GST on e-commerce.
7. Improved efficiency of logistics

Earlier, the logistics industry in India had to maintain multiple warehouses across states to
avoid the current CST and state entry taxes on inter-state movement. These warehouses were
forced to operate below their capacity, giving room to increased operating costs.
Under GST, however, these restrictions on inter-state movement of goods have been
lessened.
As an outcome of GST, warehouse operators and e-commerce aggregators players have
shown interest in setting up their warehouses at strategic locations such as Nagpur (which is
the zero-mile city of India), instead of every other city on their delivery route.
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Reduction in unnecessary logistics costs is already increasing profits for businesses involved
in the supply of goods through transportation.
Visit here to read more about the impact of GST on logistics.
8. Unorganized sector is regulated under GST

In the pre-GST era, it was often seen that certain industries in India like construction and
textile were largely unregulated and unorganized.
Under GST, however, there are provisions for online compliances and payments, and for
availing of input credit only when the supplier has accepted the amount. This has brought in
accountability and regulation to these industries.
Let us now look at disadvantages of GST. Please note that businesses need to overcome these
disadvantages to run the business smoothly.
1.10 Disadvantages of GST
1. Increased costs due to software purchase

Businesses have to either update their existing accounting or ERP software to GST-compliant
one or buy a GST software so that they can keep their business going. But both the options
lead to increased cost of software purchase and training of employees for an efficient
utilization of the new billing software.
ClearTax is the first company in India to have launched a ready-to-use GST software
called Cleartax GST software. The software is currently available for free for SMEs, helping
them transition to GST smoothly. It has truly eased the pain of the people in so many ways.
2. Being GST-compliant
Small and medium-sized enterprises (SME) who have not yet signed for GST have to quickly
grasp the nuances of the GST tax regime. They will have to issue GST-complaint invoices, be
compliant to digital record-keeping, and of course, file timely returns. This means that the
GST-complaint invoice issued must have mandatory details such as GSTIN, place of supply,
HSN codes, and others.
Clear Tax has made it easier for SMEs with the web application. This application is available
for FREE until the end of September and is an easy solution to this problem. This will help
every business to issue GST-compliant invoices to their customers. These same invoices can
then be used for return filing through the clear tax GST platform.
3. GST will mean an increase in operational costs

As we have already established that GST is changing the way how tax is paid, businesses will
now have to employ tax professionals to be GST-complaint. This will gradually increase
costs for small businesses as they will have to bear the additional cost of hiring experts.
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Also, businesses will need to train their employees in GST compliance, further increasing
their overhead expenses.
4. GST came into effect in the middle of the financial year

As GST was implemented on the 1st of July 2017, businesses followed the old tax structure
for the first 3 months (April, May, and June), and GST for the rest of the financial year.
Businesses may find it hard to get adjusted to the new tax regime, and some of them are
running these tax systems parley, resulting in confusion and compliance issues.
5. GST is an online taxation system

Unlike earlier, businesses are now switching from pen and paper invoicing and filing to
online return filing and making payments. This might be tough for some smaller businesses
to adapt to.
Cloud-based GST billing software like the ClearTax GST Billing Software is definitely an
answer to this problem. The process for return filing on ClearTax GST is very simple.
Business owners need to only upload their invoices, and the software will populate the return
forms automatically with the information from the invoices. Any errors in invoices will be
clearly identified by the software in real-time, thus increasing efficiency and timeliness.
6. SMEs will have a higher tax burden

Smaller businesses, especially in the manufacturing sector will face difficulties under GST.
Earlier, only businesses whose turnover exceeded Rs 1.5 crore had to pay excise duty. But
now any business whose turnover exceeds Rs 20 lakh will have to pay GST.
However, SMEs with a turnover upto Rs 75 lakh can opt for the composition scheme and pay
only 1% tax on turnover in lieu of GST and enjoy lesser compliances. The catch though is
these businesses will then not be able to claim any input tax credit. The decision to choose
between higher taxes or the composition scheme (and thereby no ITC) will be a tough one for
many SMEs.
1.11 Impact of GST on various sectors
1. GST impact on Automobile Sector
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Positive Impact
GST eases logistics hurdles, reduces time at check-posts, and subsumes local taxes. With
fleet productivity increasing, operators may not feel the need to expand mid-term. Auto could
slightly be a mixed bag as the impost will vary across categories. With the standardization of
GST for automobiles at 28%, two-wheelers and small and medium cars may face a higher
impost. “While this may be slightly negative for players like Bajaj Auto, Hero MotoCorp,
Maruti, etc, we believe that this will be passed on to consumers,” Angel Broking said.
Among the commercial vehicles space, Ashok Leyland may see higher GST.
Read: GST Benefits and Impact on Indian Economy
Negative Impact
Transfer of vehicle to other place will be liable for GST if the transfer is in the surge of inter-
state trade. GST registration number is obtained for separate dealerships and the supply
transfer between such dealerships will also be liable for GST.
2. GST impact on Banking Sector

Positive Impact
Public and private banking industry is the reflection of mixed economy. After GST
implementation, increase in credit pool is witnessed due to availability of GST credits on
purchase of goods. Also, banks witness a rise in operating expenses from this.
Negative Impact
The banking sector’s net tax rate is 14% and by the effect of GST, the rate increased from
18% to 20%. The effective tax rate for free-based services at banks raised to 18% from the
15%. This moderately increased costs for loan processing and credit card charges. For every
transaction in GST, the bank needs to determine the place of consumption where GST will be
paid.
3. GST impact on Manufacturing Sector

Positive Impact
The manufacturing sector endures to gain more than losing with the GST implementation of
India. Overall reduction in the cascading effect of taxes should have a positive impact on the
price of manufactured products. Read to know more about Impact of GST on Indian
Manufacturing.
Negative Impact
Concerns still arise on specific issues such as the additional 1% original tax, increased cash
flow issues and increased costs owing to exclusion of petroleum fuels from the GST realm.
Although Input Tax Credit will be available to be claimed but its realization will only occur
once the final supply is concluded. This impacts manufacturing segment due to disruptions in
cash flow.
4. GST impact on Aviation Sector

Positive Impact
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The lowering of tax rate on economy class travel is in accordance with the focus of the
Ministry of Civil Aviation to make flying affordable for the crowds. Also, under GST,
airlines can claim input tax credit on all inputs on the business class; for the economy class,
they can claim input tax credit only on input services.
Negative Impact
The GST on the economy class air travel has been finalized at 5% and GST on business class
air travel has been announced to be 12%, which is 3% more than the existing service tax rate.
5. GST impact on Logistics
Positive Impact
The priority for Layered Service Provider (LSP) has remained on tax and administration
optimization, mostly compromising on achieving higher operational efficiency through
structured large warehouses planned in centralized geographic locations that gives better
connectivity. FMCGs that are currently paying around 24-25% of tax, including excise duty,
VAT, etc. will only shell out 17-19% with GST, therefore generating lot of potential for
progress and open doors for investment in the industry. The border checkpoints reduce
transport hassles and enable logistics companies to deliver goods more efficiently and
optimize delivery time. This leads to a reduction in distribution costs by 10-15%, thereby
lowering the final price of the goods.
Negative Impact
State-border checkpoints negatively impact the overall production and logistics time. This
accounts for approximately 60% of a truck’s transit time. These sterile transit hours coupled
with regulatory impediments reduce the efficiency of Indian manufacturers compared to their
international counterparts.
6. GST Impact on Entertainment (5-Star Hotels, Casinos, Multiplexes and Cinemas)

Positive Impact
Well, the industry for sure doesn’t see a positive impact with the highest tax rate of 28%. It is
being said that this will directly hit the service provided.
Negative Impact
With the highest tax rate slab of 28%, the sector looks the most upset and says the
government has probably categorized watching movies a ‘sin’.
7. GST Impact on Telecom Sector

Positive Impact
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The tax rate has been added as 3% on the existing which isn’t a lot of change for the sector.
Negative Impact
The sector sees it as a bigger impact though and there is a lot of hue and cry for the increased
3%. It is expected that the call charges and data rates will go up.
1.12 Types of GST returns applicable under GST law (GST forms)
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GSTR-1
GSTR-1 return form has to be filed by a registered taxable supplier with details of the
outward supplies of goods and services. This form is filled by the supplier. The buyer has to
validate the auto-populated purchase information on the form and make modifications if
required. The form will contain the following details:
 Business name, period for which the return is filed, Goods and Services Taxpayer
Identification Number (GSTIN).
 Invoices issued in the previous month and the corresponding taxes collected.
 Advances received against a supply order that has to be delivered in the future.
 Revision in outward sales invoices from the previous tax periods.
GSTR-1 has to be filed by 10th of the following month.
GSTR-2
GSTR-2 return form has to be filed by a registered taxable recipient with details of the inward
supplies of goods and services. The form will contain the following details:
 Business name, period for which the return is filed, Goods and Services Tax Identification
Number (GSTIN).
 Invoices issued in the previous month and the corresponding taxes collected.
 Advances received against a supply order that has to be delivered in the future.
 Revision in outward sales invoices from the previous tax periods.
GSTR-3
GSTR-3 return form has to be filed by a registered taxpayer with details that are
automatically populated by from GSTR-1 and GSTR-2 returns forms. The taxpayer has to
verify and make modifications, if any. GSTR-3 return form will contain the following details:
 Details about Input Tax Credit, liability, and cash ledger.
 Details of tax paid under CGST, SGST, and IGST.
 Claim a refund of excess payment or request to carry forward the credit.
GSTR-4
GSTR-4 return form has to be filed by taxpayers who have opted for the Composition
Scheme. Taxpayers with small business or a turnover of up to Rs.75 lakh can opt for the
Composition Scheme wherein he or she have to pay tax at a fixed rate based on the type of
business. Taxpayers under this scheme will not have input tax credit facility. GSTR-4
quarterly return form will contain the following details:
 The total value of consolidated supply made during the period of return.
 Details of tax paid.
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 Invoice-level purchase information.
GSTR-5
GSTR-5 return form has to be filed by all registered non-resident taxpayers. This form will
contain the following:
 Name and address of the taxpayer, GSTIN, and period of return.
 Details of outward supplies and inward supplies.
 Details of goods imported, any amendments in goods imported during the previous tax
periods.
 Import of services, amendments in import of services
 Details of credit or debit notes, closing stock of goods, and refund claimed from cash
ledger.
GSTR-6
GSTR-6 return form has to be filed by all taxpayers who are registered as an Input Service
Distributor. This form will contain the following:
 Details of input credit distributed.
 Supplies received from registered persons.
 The amount of input credit availed under the current tax period.
 Details of inward supplies will be auto-populated from GSTR-1 and GSTR-5 return forms.
 Details of the receiver of input credit corresponding to his or her GSTIN.
 Details of credit or debit notes.
 Input tax credit received, input tax credit reverted, and input tax credit distributed as SGST,
CGST, and IGST.
GSTR-7
GSTR-7 return form has to be filed by all registered taxpayers who are required to deduct tax
at source under the GST rule. This form will contain the following:
 TDS details and amendments in invoice amount, TDS amount or contract details.
 TDS liability will be auto-populated. Details of fees for late filing of return and interest on
delayed payment of TDS.
 Refund received from Electronic Cash Ledger will be auto-populated.
GSTR-8
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GSTR-8 return form has to be filed by all e-Commerce operators who are required to collect
tax at source under the GST rule. This form will contain details of supplies effected and the
amount of tax collected under Sub-section (1) of Section 43C of Model GST Law. Other
details include:
 Details of supplies made to registered taxable person and amendments, if any.
 Details of supplies made to unregistered persons.
 Details of Tax Collected at Source.
 TDS liability will be auto-populated. Details of fees for late filing of return and interest on
delayed payment of TDS.
GSTR-9
GSTR-9 return form is filed by normal taxpayers with details of all income and expenditure
for the year. This detail will be regrouped in accordance with the monthly returns. The
taxpayer will have the opportunity to make modifications in the information provided if
required. GSTR-9 has to be filed by 31st December of the following financial year along with
the audited copies of the annual accounts.
GSTR-10
GSTR-10 return form has to be filed by any taxpayer who opts for cancellation of GST
registration. This form will contain the following:
 Application Reference Number (ARN).
 Date of cancellation of GST registration.
 Unique ID of cancellation order.
 Date of cancellation order.
 Details of closing stock including amount of tax payable on closing stock.
GSTR-10 final return form has to be filed within 3 months of the date of cancellation or date
of cancellation order, whichever is later.
GSTR- 11
GSTR-11 return form has to be filed by everyone who has been issued a Unique Identity
Number (UIN) and claims a refund of the taxes paid on inward supplies. This form will
contain the following details:
 Name of the government entity, UIN, and period of return.
 All inward purchases from GST registered supplier will be auto-populated.
1.13 GST return filling online

All individual has to return file under the GST new rules set by the government. From
manufacturer to consumer all people has to return file of GST they have been given GSTR
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number. It has to be filed online using the software or apps provided by goods and service tax
network which will auto-populate the details on each GSTR forms. Listed below are step of
filling GST returns online.
 Visit the GST portal (www.gst.gov.in).
 A 15-digit GST identification number will be issued based on your state code and PAN
number.
 Upload invoices on the GST portal or the software. An invoice reference number will be
issued against each invoice.
 After uploading invoices, outward return, inward return, and cumulative monthly return
have to be filed online. If there are any errors, you have the option to correct it and refile
the returns.
 File the outward supply returns in GSTR-1 form through the information section at the
GST Common Portal (GSTN) on or before 10th of the following month.
 Details of outward supplies furnished by the supplier will be made available in GSTR-2A
to the recipient.
 Recipient has to verify, validate, and modify the details of outward supplies, and also file
details of credit or debit notes.
 Recipient has to furnish the details of inward supplies of taxable goods and services in
GSTR-2 form.
 The supplier can either accept or reject the modifications of the details of inward supplies
made available by the recipient in GSTR-1A.
1.14 Penalty
If a individual by mistake file his GST return late, then he has to pay penalty for that under
the GST law. The principles of penalties are also mentioned in the GST law.
1.15 For late filing

Late filling of GST return charge a penalty against it. Due date of filing return is 31 st July ,
after 31st July if any person file his GST return then he has to pay a penalty fee. The late fee is
Rs. 100 per day Act. so, the people has to pay 100 for CGST and 100 for SGST, total amount
to be paid Rs. 200 per day, to the government. In case of IGST there is no late fee in case of
delayed in return file.
Along with the penalty fee, he has to pay interest @18% per annum. The maximum penalty
is Rs. 5000. Interest is calculated on tax amount which has to be paid by them. The time
period will be from day of filling to the date of payment.
1.16 Key focus for successful GST implementation
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 Education & training
 Staffing for the upcoming GST
 Communication plan
1.Business process 1.IT system Flows,

physical flows People configuration
and document flows, and modification
place and time of 2.Current IT
supply, rules and system caters
managing cash flow Process Technology for GST
2.Supply chain 3.To understand
analysis of suppliers and identify
and customers the “As It” and
3.Transitional issues
1.17 GST impact on common man’s budget

EXPENSES EXAMPLE
RESTAURANT BILLS A customer visits a restaurant & purchase a meal for Rs. 1000
Under a earlier regime, VAT @12.5% and service tax @6% was
charged. Thus, the customer pays Rs.185 as tax.
Under GST, a meal at an air-conditioned restaurant shall attract
18%. Thus customer pays Rs. 180 as tax.
AIR TRAVEL A customer travels in domestic economy class on a ticket of Rs.
1000
Under earlier regime, service tax at 6% levied – amounting to
Rs.60.
In case the customer travelled business class, GST rate has
increased to 12% from 9% under service tax.
Under GST, economy class is taxable at 5%. Thus there would
be minor savings in economy class.
Thus business class would be expensive.
HOLIDAYS A customer stays in a hotel which has tariff of Rs.8000 a night
In pre-GST regime, the gross indirect tax rates (service tax
+luxury tax) ranged from19% to 25% depending on rate of
luxury tax in a state. Thus, total tax, could be between Rs.1520
and Rs.2000
Under GST, for tariff above Rs.7500, tax would be applicable at
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28%resulting in tax incidence of Rs.2100. thus higher tier hotels
are going to be more expensive under GST.
CAB EXPENSES A customer takes on Ola or Uber and a ride costs Rs.100.
There is marginal saving since cab facilities would attract GST
at 5% as compared to 6% service tax.
BANKING AND These service will primarily have a 3% increase in rate (from
INSURANCE 15% service tax to 18% GST. Thus, these service will be more
expensive.
OTHER HOUSEHOLD Foods have been kept in the range of 0-5%under the GST
EXPENSES regime. Food prices are unlikely to go up
Service like salon, dry cleaning and telecommunications to
become more expensive due to 3% increase in tax rate.
REAL ESTATE A customer buys under-construction property for Rs.1 crore.
Under earlier regime, rate of around 5.5% was levied, but varied
from state to state. rate of 12% will be levied resulting in
inflation in initial period
Table 3: source: secondary data:
From the above chart we understand that, because of GST rate there is always a impact on a
budget of a common man. Tax rate is high in everything so, customer has to pay high amount
of price to everything.
1.18 The challenges of implementing GST

GST is meant to simplify the Indian indirect tax regime by replacing a host of taxes by a
single unified tax, thereby subsuming central excise, service tax, VAT, entry tax, etc.
However, there is a plethora of challenges before the government for its successful
implementation. Some of these are highlighted below:
– The GST Constitutional Amendment Bill was passed by the Lok Sabha in May 2015.
However, the government faced tremendous political set-backs and failed to get it passed in
the Rajya Sabha during the monsoon and the winter sessions last year.
– Once this is achieved, another Herculean task would be to get the GST Bill passed by the
respective state governments in state assemblies. The government would also be required to
put the GST bill in the public domain and give sufficient time to all stakeholders to
comprehend and give their views on the bill.
– A large part of the success of GST depends on two prominent factors – ‘RNR’ and
‘threshold limit’ for GST. RNR, i.e., the Revenue Neutral Rate, is the rate at which there will
be no revenue loss to the government after implementation of GST. Needless to mention,
RNR will impact India Inc. adversely, if it is unduly higher than the present tax structure.
Based on the study conducted by National Institute of Public Finance and Policy (NIPFP),
RNR was decided at 27 percent. However, recently the Economic Advisor Panel
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recommended an RNR of 15 percent to 15.5 percent, ie a lower tax rate of 12 percent and a
standard tax rate of 17 percent to 19 percent.
– Further, the threshold limit of turnover for dealers under GST is another bone of contention
between the government and the Empowered Committee, aiming to broaden the tax base
under GST.
– Another factor that will impact the success of GST is the robust IT backbone connecting all
state governments, trade and industry, banks and other stakeholders on a real-time basis. The
government has already incorporated an SPV viz. – Goods and Services Tax Network
(GSTN), which has to develop a GST portal – front-end system for trade and industry and
back-end system for all government agencies. GSTN will ensure technology support for
registration, return filing, tax payment, IGST settlement, MIS and other dashboards on GST
portal to all the stakeholders.
– GST is quite different from the existing indirect taxation system in the country. For
effective implementation of GST, tax administration staff – both at central and state levels –
would require to be trained properly in terms of concept, legislation and procedure. The tax
administration staff would also need to change their mind set, approach and attitude towards
the tax payers. And for this, they would have to ‘learn, unlearn, and relearn’ the GST not only
in letter but in spirit too.
– As per the Constitutional Amendment Bill placed in the Lok Sabha, it was proposed that
states would be allowed to levy an additional 1 percent non-vatable tax on inter-state supply
of goods for the initial two years, in order to compensate the states for loss of revenue while
moving to GST. This was supported by a few states, while a few others criticised the same.
However, recently the Empowered Committee recommended abolition of the additional tax.
There is no clarity on the same yet.
– The taxing events of ‘manufacture under central excise’, ‘sale under VAT’ and ‘provision
of service under service tax’ will converge into one taxing event of ‘supply’ under GST, ie
GST will be levied on the event of supply of goods or services. The ‘Place of Supply Rules’
will thus form an important factor to determine the place of provision of goods or services.
• These are some of the major challenges before the government and the industry, ahead of
the actual implementation of GST.
1.19 NEWS
1.News on GST officials rescues Rs. 241-cr tax evasion through fake invoicing
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GST officials have unearthed a racket involving fake invoicing worth Rs. 1600 crore that
resulted in tax evasion of Rs. 241 crore, an official released said. The racket was busted by
the anti-evasion wing of CGST Delhi south commissioner ate.
The main culprit was arrested and remanded to 10days of judicial custody by a local court,
the release by finance ministry said. The alleged racketeer had created several firms on the
basis of unauthorised access to identify documents of various persons.
The ministry said the commissioner ate discovered the case of fake invoicing and GST fraud
alongside a “new modus operandi” of defrauding the exchequer by exploiting the facility of
refunds given for inverted duty structure. “Over 120 entities involved in the transaction have
come to light so far, involving fake invoicing of Rs. 1600 crore and tax evasion of Rs. 241
crore,” it added.
It further said investigations in the case have unearthed a well organised racket of creating
bogus firms, issuing fake invoices and bogus e-way bills to generate and encash tax credits.
2. 38th GST council meeting was held on 18th December 2019, Wednesday. The following
were the highlights:
(a) Due dates of GSTR-9 and GSTR-9C extended for Fy2017-18 till 31st January 2020
(b) Provisional ITC claim in GSTR-3B further restricted to 10%instead of the earlier 20%.
(c) Late fee waiver for filling GSTR-1for return periods July 17 and Nov 19 by 10 January
2020 through an amnesty scheme.
(d) Standard operating procedure (sop) in case of non filling of GSTR-3B defined.
(e) Due dates for GST returns extended for certain category of taxpayers in North-eastern
states.
(f) Levy of common rate of 28%tax on all forms of lotteries.
CHAPTER 2
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RESEARCH METHODOLOGY
Research Methodology is a way to systematically solve the research problem. The Research
Methodology includes the various methods and techniques for conducting a research.
Research is an art of scientific investigation. The logic behind taking research methodology
into consideration is that one can have knowledge about the method and procedure adopted
for achievement of objective of the project.
Techniques of selection:- Random sampling was used for the study
Location of study:- Mumbai city and suburbs
Analysis method:- The data collected for study are carefully validated and uploaded on excel
and are further used for analysis.
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2.1 OBJECTIVES OF STUDY
1. To study on purchase decision of consumer
2. To analyze cascading effects in GST
3. To analyze awareness of GST to the consumer
4. To study on concept of GST
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2.2 RESEARCH GAP
1. What are the impact of GST on consumer?
2. How GST affects the purchase decision of consumer?
3. Is there any benefits to consumers due to implementation of GST?
2.3 HYPOTHESIS
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H01: There is no significant awareness among consumer about concept of GST
HA1: consumer may be aware about concept of GST
H02: there is no significant benefits to the consumers after the implementation of GST
HA2: Implementation of GST may benefit the consumer
H03: GST may not significantly affect on purchase decision of consumers
HA3: GST may affect purchase decision of consumers
2.4 RESEARCH DESIGN

Research design is the conceptual structure within which research is conducted. It constitutes
the blueprint for collection, measurement and analysis of data was a descriptive research.
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This research will be Descriptive in nature. The general consumers are considered for this
study.
2.5 SCOPE OF THE STUDY

1.The study covers the general consumers about the knowledge in the GST regime.
39
2. The study covers the consumers and their buying behavior and the sales performance, in
respect to the period after the implementation of GST.
3. GST is expected to rationalize and simplify the consumption tax structure at the central and
state level.
4. GST will also call for fundamental redesigning of the value chain.
5. The scope of study is extended to understand the concept of GST, its impact and
implementation in India.
6. The scope of study is extended to understand the effect of GST on purchase decision on
consumer.
7. The scope of Study is to understand the benefits of consumers due to implementation of

GST.
8. The study covers how the various GST like IGST, CGST and SGST is charged.
9. Retailers level where only the final consumer should bear the tax.”
10. GST helps in eradication of many indirect taxes which eventually leads to the removal of
unaccounted money as it is tied up to digital India scheme. As a result digitalization would
bring the money circulation into account
11. It will be important for the economy in the following ways: tax evasion, tax avoidance,
limits the black market and helps in the development of backward states.
2.6 LIMITATIONS OF THE STUDY

This project had several limitations. The limitations of the project were as follows:
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1. sample size: The survey was filled by only 60 people from Mumbai city and its suburbs.
2. Time: The time to collect primary data was limited. Data was collected only in 1 week.
3. Primary data collection was done using survey method and hence, responses lack personal
access. Responses also lack detailed information and reasons behind responses are
assumption based.
4. Project is prepared on a general topic on impact of GST on consumer and thus it is not
focused on a specific industry.
2.7 SOURCES OF DATA COLLECTION
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A. Primary data: Primary data is that which has been collected for the purpose of newly
taken research. The preliminary data for this research project has been collected by the means
of questionnaire designed for consumers.
B. Secondary data: Secondary data is collected from journals, magazines, etc. I have
made extensive use of internet available in the internet to gather the information, do the
analysis and arrive at the conclusion.
2.8 METHODS OF DATA COLLECTION
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Questionnaire: A questionnaire is a research instrument consisting of a series of questions
and other prompts for the purpose of gathering information form respondents. It serves four
basic purposes:
• To collect the appropriate data.
• To make data comparable and amenable to analysis.
• To make questions engaging and varied.
Here in this research paper questions have been asked for consumer who pays GST daily and
the consumers who file their income tax return, so that can be easily fill with the minimum
amount of time and efforts and the request respondent to answer this question with correct
information.
2.9 TECHNIQUE AND TOOLS
43
As mentioned earlier, “Questionnaire” (a technique or a method use for obtaining specific
information about a defined topic) was used to collect the primary data. This questionnaire
contains both close-ended (questions wherein respondent has to select based on the options
provided) as well as the open-ended questions. Questionnaire that was floated has been
attached.
CHAPTER 3
44
LITERATURE REVIEW
1. Author: - Gowtham Ramkumar

Title: - Impact of GST on consumer spending ability in Chennai city
Source: - Journal of Commerce and Management Research
Date of Publication: - October- December 2017
In this research paper they study on cause and effects of relationship between GST and
spending ability. Taxation is major impact on consumer behavior. They find out that if there
is any changes in taxation then it will have significant impact on consumer behavior while
purchasing any product. The objective is to study relationship between factors affecting
purchase decision of the consumers after GST implementation. For research they collected
data from primary and secondary data. They took sample size of 50 person respondents on
which they prepared questionnaire. They used sampling technique to study. For further study
they used statistical design. They find out that inflation indices are showing an increasing
trend and also all consumer are affected and because of GST the consumer purchasing
decision and spending ability has been changed.
2. Author: - Gowtham Ramkumar

Title: - Consumer perception towards goods and service tax implementation- an economic
approach
Source: - EIK ASIA PACIFIC Journal of Marketing and Retail Marketing
Date of Publication: - 2 (2018)
In this research paper they study on understanding consumer perception towards goods and
service tax implementation by taking micro economics approach, considering disposable
income, spending ability rather than studying on general study of consumer perception. The
author states that consumer are affected by goods and service tax. It further states that it
accrues at consumption and not at the manufacturing. They use primary and secondary data
for collection of data. To collect primary data, they used sampling design sample size for
study is 150respondentsthey got from Chennai cit. they used analytical tool for the further
study of research. Secondary data is collected from journals, magazines, newspaper, etc. they
find out that consumers are satisfied with those goods on which there is 0% i.e, vegetables,
fruits, etc. after implementation of goods and service tax consumer didn’t experience increase
in personal income.
45
3. Author: - Saravana Rajan S, kirubagaran K
Title: -A study on GST (Goods and Service tax) and its impact on automobile industry in
India
Source: - International Journal of Pure and Applied Mathematics
Date of Publication: - 5 2018, 3643-3648
In this research paper they study on how there is impact of GST on automobile industry in
India and there cause and effects. And further they used primary data and secondary data.
Primary data has been collected through survey method, they conducted aa survey from
which they got 305 responses. Secondary data has collected through journal, magazines and
articles. through survey method they find out that there is raising in petroleum price it is
barrier for middle class people, they are facing problems and also find that GST which is
levied on automobile industry it is beneficial to consumers and also to the companies.
4. Author: - Milandeepkour, 17-24,2016

Title: - A study on impact of GST after its implementation
Source: - International Journal of Innovative Studies in Sociology and Humanities
Date of Publication: - November 2016
In this research paper they studied on what will be the impact of GST after its implementation
& what are the benefits and challenges of GST after its implementation to the consumers.
Their objective is to find out difference between present indirect taxes and GST. They
collected data from n=both primary and secondary data. They did survey method for
collecting primary data and secondary data from journals, magazines, and newspapers, etc.
they find out that after implementation of GST disputes arise between center and state tax. If
there is goods and service purchase or sale within state, then pay tax to CGST and SGST both
& if trade made outside state then pay tax to IGST.
5. Author-N Ramaya, D siva sakthi
46
Title: - GST and its impact on various sector
Source: - Journal of Management and Science
Date of Publication: -September 2017
In this research paper their main objective is to study on GST features and its impact on
various factors. Because it influences biggest tax reform in India. They study about dual GST
which has made in India and there is different GST rate levied in all countries. They study
about overlapping of tax on tax that will be eliminated with GST. They find out that only
center may levy and collect GST and if in case there is Intra-state trade then tax will be
collected by both center and state and if there is Inter-state trade then tax will be collected by
IGST. GST is applied on various sectors like food industry, housing and construction
industry, FMCG sector, rail sector, financial sector, information technology enable services,
& impact on small enterprises.
6. Author: - Dr. Jayashree, R Kotnal

Title: - Influence of GST on the fast moving consumer goods
Source: - International Journal of Advanced Research and Development
Date of Publication: - November 2017
In this research paper they study on impact of GST on FMCG. There main objective is to
study how GST is applied on fast moving consumer goods. It plays important role in
increasing GDP in India. They used secondary data for research paper to collect data and
used explanatory research technique based on past literature, magazines, journals and
newspapers.in this research design is descriptive in nature. In this findings shows that GST
has been alter the system that is there was production based system and now it has been
replace by consumption based one.
7. Author: - A Dash
47
Title: - Positive and negative impact of GST on Indian economy
Source: - International Journal of Management and Applied Science
Date of Publication: - May 2017
These findings shows positive and negative impact of GST om Indian sector. Input tax paid at
each stage in creating a product right from manufacturing to the consumer. Because of paying
credit input tax for making any product at each stage, there is high price charged on product.
In this research they show benefits of GST on Indian economy like there is no cascading
effects means there is no tax on tax it has been eliminated from the tax and there is overall
reduction in prices for consumers. And also find out negative impact of GST on economy that
is India has adopted dual GST instead of national GST. It has made complicated to collect tax
in India.
8. Author: - Ajaykumar Kankipati

Title: - A journey of goods and services tax (GST) and structural impact of GST on the
growth of GDP in India
Source: - Advances in Sciences and Humanities
Date of Publication: - October 18, 2017
In this research paper they study on impact of GST on Indian economy and how it is benefit
to the business and government and for the consumer. It is said that taxation plays a very
crucial role in increasing the revenue of the country and it is difficult to understand taxation
of India and to calculate both tax that i.e., direct and indirect tax. To collect data for research
they used secondary data that includes government websites, journals, magazines, articles and
conference, etc. Findings shows that government want to apply only one tax that is GST in all
country and they want to make industry friendly so that it can get benefits to the business,
government and consumers.
9. Author: - Mohan Kumkar, Y Kumar
48
Title: - GST and its probable impact on FMCG Industry in India
Source: - International Journal of Research in Finance and Marketing
Date of Publication: - April - 2017
In this research paper they study on impact of GST on FMCG Industry in India. Their main
objective is to compare the current and proposed tax in India and its applicability of GST in
various cases. They used secondary data to collect data for study this research paper. They
adopted dual GST model to remove cascading effect. Tax is collected by SGST, CGST and
IGST. Findings shows that GST has been replaced by various other indirect taxes. Peak tax
cost rate for industry players is approximately 27%. And another important thing is impact of
GST on FMCG companies is the opportunity to review the supply chain and they can move
supply chain on business parameters. And it is known that GST has impact on various
aspects.
10. Author: - Pragya Dixit

Title: - Impact of GST in Indian scenario
Source: - Conference Paper
Date of Publication: - 28-03-2018
In this research paper they study on impact of GST in India and how it is imposed on goods
and service. GST system is imposed by 140countries and it is first imposed by France. By
applying GST it is said that operating cost becomes lower and it benefits to businesses,
government and consumers. Also shows GST impact in various areas. In this findings shows
that by imposing GST there is improve in Indian economic development, because of improve
in tax collection. By implementing of GST there is increase in revenue of the country and it is
said that there is positive impact of GST on various sectors and industries.
11. Author: - Mohamad Ali Roshidi Ahmad
49
Title: - Awareness and perception of tax payers towards goods and service tax (GST)
implementation
Source: - International Journal of Academic Research in Business and Social Sciences
Date of Publication: - 2016, Vol. 6, No. 11
In this research paper they study on people are aware about GST implementation and their
perception towards GST taxpayers in Malaysia. Prime minister of Malaysia in budget has
made GST in 2005, but it has been delayed, so it is implemented on April 2015. In this they
study only consists 256 civil servants of school teachers. They collected data by using
primary data and they made questionnaire to ask question that they are aware or not about
GST and their perception towards it. There findings shows that people are not so much aware
about GST and majority of the people are giving negative perception to the impact of GST.
By this research paper they understand that majority of the people are didn’t accept
implementation of GST in Malaysia.
12. Author: - Rozlin Zainal

Title: - Construction Costs and Housing Prices: Impact of Goods and Service Tax
Source: - International Journal of Economics and Financial Issues
Date of Publication: - 2016-10-01
In this research paper they study on impact of GST on construction cost and influencing
towards housing developers and housing property prices. Their aim is to change the point of
view of housing developers towards impact of GST. They used primary data to collect data
for research paper and used survey method for collecting data from 36 housing developers
and consultant. Findings shows that land acquisition and building material are affected by the
implementation of GST.
50
13. Title: - Impact of GST on pricing of products: positive and negative effect
Author: - Dr. Anand Kumar
Source: - IRE Journals
Date of Publication: - December 2017
In this research paper they study on impact of GST on pricing of products and it has positive
or negative effect. GST is levied on all goods and services. It has been stated that GST will
effect on all sectors of economy viz., Business, Government, consumers and service
providers. It is a single tax that is levied on goods and services, it’s not only benefit to the
consumer but also to whole economy. These findings show that implementation of GST has
positive effect on the whole economy of India because it the only tax which is collected by
the government and it increases the revenue of the country and removed the cascading effect.
14. Author: - S. Thowseaf

Title: - A study on GST implementation and its impact on Indian Industrial sectors and export
Source: - International Journal of Management Research and Social Science
Date of Publication: - April – June 2016
In this research paper they study to provide overview about impact of GST when it ahs been
implemented their features and gives suggestion on implementing of GST and how it is
benefit to the industrial sector and export. They used secondary data to collect information
for research paper. They used exploratory research methodology to collect data. These
findings shows that implementing of GST is beneficial to industry sector and reducing the
overall cost of commodity. Before implementation of GST the government was not charging
any tax on agricultural goods for domestic consumption, but now they are charging GST on
agricultural goods also and it is not favourable towards agricultural sector.
15. Title: - Consumer purchase intention and cross border shopping: Implementation of
Goods and Service tax (GST)
51
Author: - Yong Hoe Hong1, Boon Heng Teh1, Patrick C-H Soh1 & Tze San Ong2
Source: - International Journal of Business and Management
Date of Publication: - July 22, 2015
In this research paper they study on consumer purchase intention before and after
implementation of GST and consumer cross border shopping intention. They collected data
from 100 shoppers and they have been interviewed from four shopping centres. They used
sample size to collect data. These findings show that people are likely to purchase products
and unlikely to purchase goods after implementation of GST.it has been stated that higher
income group are not influenced by implementation of GST and lower income group are
influenced by implementation of GST, because of GST, price of products are increased and
people intention towards purchasing of goods has been changed.
16. Author: - Anand Nayar, Inderpal Singh

Title of study: - A Comprehensive Analysis of Goods and Service Tax (GST) in India
Source: - Indian journal of Finance
Date of Publication: - November 30, 2017
In this research paper they study on comprehensive analysis of goods and service tax in India
and what are the advantages and challenges surrounding GST. Their scope is to study GST
after implementation will bring uniformity to the tax rates and also overcome lots of
shortcomings in the Indian taxation system. These findings shows that GST is the biggest
taxation system in India and it bind the entire nation under the single taxation system. It is
surrounded by various challenges.
52
17. Author: - Dr. Habiba Abbasi
Title of study: - GST: Impact and Challenges Faced by Indian Economy
Source: - Challenges & shortcomings of GST in India / Article by Kunal Sharma
Date of Publication: - April 2018
In this research paper they study on challenges faced by Indian economy by implementing
GST and GST concept highlighted their main features. It is stated that in indirect taxes they
replaced a large number of taxes by a single tax and it is significant for development of the
country. Government want to remove cascading effect and they brought dual GST in country,
so they can easily transact. These findings shows that the objective of GST is to one tax one
country, so they can easily transact goods and services. They want to make GST transaction
simpler, so they can remove disruption.
18. Author: - Akanksha Khurana

Title: - Goods and Services Tax in India - A Positive Reform for Indirect Tax System
Source: - Journal of Advance Research
Date of Publication: - March 2016
In this research paper they highlighted the objectives of GST, and impact of GST on present
tax scenario in India. It is stated that GST is levied on manufacture sale and consumption of
goods and services. Their main objective is to remove the cascading effects. It is stated that
GST is indirect tax which is replaced by existing taxes i.e., value added tax, excise duty,
service tax. From this research paper they find out the benefits of GST and oppurunities.
They stated that it is a single tax which is applied on goods and service and there dual GST, it
is collected by SGST, CGST & IGST. By implementing GST there is positive reform for
Indirect Tax System.
19. Author: - Abdul Matheen
53
Title: - Impact of GST on Indian Financial System
Source: - Journal of Scientific Research in Science and Technology
Date of Publication: - 18 October 2017
In this research paper they study on advantages, objectives and how it has been implemented
in India. It is stated that by implementing GST there is flawless transaction of goods and
services. Implementation of GST has provided a greater increase in revenue of government
and it is automatically increase in Indian Financial System. GST is levied on all
manufacturing goods and consumption of goods and services. These findings shows that
consumer are giving positive feedback towards implementation of GST because it is a biggest
advantage in terms of reduction in overall tax burden on goods and services. But to gaining
advantage country need to build strong mechanism.
20. Author: - Lakshmi S

Title: - Before and After GST: Impact in CPI (Consumer Price Index) of India
Source: - Journal of Research and Analytical Reviews
Date of Publication: - May 2019
In this research paper they study on impact of GST on CPI and how there is increase in
percentage variation that has occurred in CPI basket. The data has been collected from
secondary data like programme implementation and CPI data has been collected of from July
2016 to July 2018. In these they find out that there is increase in CPI basket due to
implementation of GST, and also there is no significant impact of GST on CPI.
54
CHAPTER 4
DATA ANALYSIS
Sample Distribution
Age Gender Total
Male Female
18-21 5 2 7
22-24 5 1 6
25-27 2 5 7
28-30 5 8 13
Above 30 16 9 27
Total 33 25 60
Table 1:- source primary data
Occupation Percentage
Graduate student 16.9%
Unemployed 0%
Service 67.8%
Business 15.3%
Total 100%
Table 2 : source: primary data
Techniques of selection:- Random sampling was used for the study
Location of study:- Mumbai city and suburbs
Analysis method:- The data collected for study are carefully validated and uploaded on excel
and are further used for analysis.
55
Income Group
Income Group Percentage
0-20000 18.3%
20000-40000 16.7%
40000-60000 25%
60000-80000 23.3%
Above 80000 16.7%
Total 100%
56
1. How aware are you about GST rates?
Goods and Service tax is an indirect tax used in India on the supply of goods and services.
Goods and services are divided into five different tax slabs for collection tax -0%, 5%, 12%,
18%, 28%, and 28% plus cess. 0% - 50% of the consumer price basket, including food grains.
5% is on mass consumption items like spices and mustard oil. 12% is on processed foods.
18% soaps, oil, toothpaste, refrigerator, smartphones. 28% is on cars, computer printers. And
28% above cess is on movie tickets etc.
58.3% people are very much aware about GST rates, 15% people are moderately aware,
13.3% people are extremely aware about GST, 11.7% people are slightly aware and 1.7%
people are not aware.
From the above diagram it is seen that people are very much aware about GST as everyone
pays GST on products they buy.
57
2. Are you aware about different types of GST (IGST, CGST, SGST) .
The different types of GST rates are IGST, CGST & SGST. Integrated goods and service tax
are charged when you supply goods and services outside state. Central goods and service and
State goods and service tax is charged when you supply goods and service within the state.
Central goods and service tax is charged by central government and State goods and service
tax is charged by state government.
81.7% people are aware about different types of GST, 10% people are not aware about
different types of GST and 10% people are stayed neutral. People are aware about different
types of GST as many people pay goods and service tax on the products they purchase.
Hypothesis testing: -
Ho1 stated that consumer may not be aware about concept of GST and Ha1 stated that
consumer may be aware about concept of GST. From the above data analysis, it seen that
consumers are aware about concept of GST. Hence, Ha1 accepted and Ho1 rejected.
58
3. How aware are you about Input tax credit provision under GST?
Input tax credit or ITC is the tax that a business pays on a purchase and it can be used to
reduced its liability when it makes a sale.
In this Input tax credit on account of integrated tax shall first be utilized towards the payment
of Integrated tax, and remaining amount should be adjusted against Central goods and service
tax and state goods and service tax. In case there is credit balance in Central goods and
service tax then it should be adjusted against IGST and not against SGST and for SGST it can
also be adjusted against IGST and not against CGST.
The above chart shows the responses of people when asked how aware they are about Input
tax credit provision under GST. 35% of respondents were very much aware about Input tax
credit provision, 25% of respondents are were moderately aware. This is because many
people supply goods outside the state and within the state, because of which, they know about
ITC as it benefits to reduce the tax liability.
13.3% of respondents are not at all aware about ITC, because general public doesn’t supply
goods and services outside state or within state.
59
4. What do you think, are benefits of GST to the consumer ?
Lower amount of tax is paid
No cascading effect
Better accessibility of goods and services
All of the above
0 5 10 15 20 25 30 35
The above chart shows that the responses of people when asked what they thought, were the
benefits of GST to the consumer. There are many benefits of GST to the consumer like lower
amount of Tax liability, No cascading effect, better accessibility of goods and service.
4% of respondents are saying lower amount of tax is paid is benefit to them, 20% of
respondents are saying no cascading effect is there in paying GST which is a benefit, because
cascading effect means tax on tax is not Charged, while before GST people had to pay tax on
tax.
25.4% of respondents are saying there is better accessibility of goods and services due to
implementation of GST and it is benefit to the customer.
54.2% of respondents are agree that all of the above are benefit to the consumer, because due
to implementation of GST, people are paying lower amount of tax, there is no cascading
effect and there is better accessibility of goods and services.
5. What do you think, are disadvantage of GST to the consumer?
60
Need to understand software
Price hike and inflation would be possible
Income tax return that you need to file
Higher amount of tax
All of the above
0 5 10 15 20 25 30
The above chart shows the responses when asked what were disadvantage of GST to
consumer according to them. Due to implementation of GST there are many disadvantage to
the consumer. When it was implemented people were not so much aware about how to use
software, there was price hike and inflation would be possible, people were not able to file
Income tax return, some also thought that a higher amount of tax is needed to pay to
government.
10.2% of respondents said that due implementation of GST they were not able to understand
software. 16.9% of respondents said because of implementation of GST, price hike and
inflation would be possible. 22% of respondents thought it was difficult to file income tax
return, because there are new rules and regulation were amendment and there are GSTR no
which needs to be understood, so they can file income tax return. 22% of respondents thought
that a higher amount of tax is paid by the consumers due to implementation of GST.
42.4% of respondents chose all of the above as all of these are disadvantages to the consumer,
because they need to understand software, there are new provision that came under GST
which needed to be understand, so they can easily file their income tax return.
61
6. GST is still beneficial after comparing benefits to disadvantage.
From the above chart, it is identified that 62.7% consumers agreed that GST is still beneficial
after comparing benefits to disadvantage, and 27.1% consumers are saying neutral.
Ho2 stated that implementation of GST may not beneficial to the customer and Ha2 stated
that implementation of GST may benefit the customer. Hence, with reference from the above
three data analysis, Ha2 accepted and Ho2 rejected.
62
7. Rate the following products according to your agreeability to buy them
before GST implementation.
50
45
40
35
30
25
20
15
10
5
0
Beverages Cosmetics Leather Textile Personal care Toys Households Others
High Medium Low
8. Rate the following products according to your agreeability to buy them

before GST implementation.
45
40
35
30
25
20
15
10
5
0
Beverages Cosmetics Leather Textile Personal Toys Households Others
care
High Medium Low
From the above chart it is identified, that consumer’s agreeability towards the purchase of
provision before and after GST is flexible in all goods. The purchase decision of consumers
in all goods is fluctuating. The level of agreeability towards the beverages before GST 34%
of consumers buying highly and 48% consumers were buying medium and only 18%
consumers were purchasing less. And after GST it reduce to 13% of consumers buying highly
63
and it increases to 20% consumers were not buying, because before GST it was 12% and
after GST the tax rate has been increased to 18%.
The level of agreeability towards the cosmetics consumers who were buying highly before
GST and after GST it has been reduced to 4%, there is not much effect on purchase decision.
There is reduce of 38% towards purchasing of leather, because tax on leather after GST was
high. The tax rate on job work for textile and textiles product has been reduced to 5% from
18% showing high agreeability.
The level of agreeability towards personal care there is not much effect on purchase decision.
The purchasing agreeability towards toys has come down as, after the implementation of GST
the price have been increased by up to 20%.
The level of agreeability towards households and others remains almost the same and there is
no considerable change with 33%.
64
9. GST significantly affects purchase decision of consumer.
From the above chart it is identified, that 50% of consumers agree that GST significantly
affects the purchase decision of consumer, 20% of people strongly agree about it, and 18% of
consumers are saying neutral.
From the above all three charts it is seen that level of agreeability affects the purchase
decision of consumer because GST resulted in increase in prices of goods.
Ho3 stated that GST may not affect purchase decision of consumer and Ho3 stated that GST
may affect purchase decision of consumer. By looking at the above three analysis, it is seen
that GST significantly affects purchase decision of consumer. Hence Ha3 accepted and Ho2
rejected.
65
CHAPTER NO. 5
SUGGESTIONS
1.The rates should be rationalized and reduced to make India competitive and in interest of
compliance and economic growth. The highest rate should be kept only 18% and there should
be 28% for few items. Daily use items like soaps, creams, movie tickets, electrical goods
should not be charged for 28%.
2.In Input Tax Credit, the government allowing excess credit is there in CGST and if we have
to pay net tax in IGST then we can adjust CGST excess amount against IGST, but there not
allowing CGST adjusted with SGST. In this my suggestion is to allow CGST amount to be
adjusted with SGST, so people can easily pay tax.
3.Composition scheme should also be provided to small scale service providers
4. The issue being faced by the exporters should be dealt with and the refund procedure
should be activated immediately.
5. Advance Authority for Rulings should be active at the earliest as GST law is already in
force since July 1st, 2017.
6. Single cash ledger concept should be used instead multiple cash ledger i.e., separate cash
ledger for CGST, SGST, IGST, interest, penalty, etc., it is suggested that there should be
partial/ period payment of offset of tax, so that an assesse can bear interest only on the short
payment.
7. Anti-profiteering provision need reconsideration as they may unnecessarily cause

hardships to business. System should be made to ensure that this is not misused so as to cause
difficulties.
66
CONCLUSION
The study concludes that consumers are well aware about the GST rates that are levied. They
are also well aware about the different types of GST as at the time of purchase or sale of
goods and providing services and availing services, consumers have to pay these different
types of GST. Consumers are also aware about Input tax credit provisions. Hence it is
concluded that there is no lack of awareness among consumers about the concept of GST.
The biggest benefit of GST was concluded to be implementation of GST having no cascading
effect as, it eliminates levy of tax on tax. Consumers also thought there was better
accessibility of goods and services due to GST implementation. Some consumers also felt
that there was a lower tax liability. However, more consumers thought that the tax liability
was higher. Consumers also felt the burden of filing income tax return and increase in
inflation rate and prices of products. Some consumers felt the need to understand use of
software. However, after comparing advantages with disadvantages, consumers still felt that
implementation of GST is beneficial.
The study also concludes that purchase decision of consumers is significantly affected after
implementation of GST. The most affected industries were seen to be leather and textile,
followed by cosmetics, beverages and toys. The least affected industries were personal care,
households and others.
Hence the study finally concludes that GST is beneficial for majority of consumers and
purchase decision in various industries was significantly impacted.
67
BIBLOGRAPHY
https://s3.amazonaws.com/academia.edu.documents/53159606/7FMApril-4748.pdf?
response-content-disposition
http://conference.nrjp.co.in/index.php/GST/article/view/181/185
http://dx.doi.org/10.6007/IJARBSS/v6-i11/2375
https://dergipark.org.tr/en/pub/ijefi/issue/32000/353019
https://pdfs.semanticscholar.org/ead4/8b400d1f8f445b21d76e99fdb91405a410e5.pdf
https://www.edupristine.com/blog/gst-bill-importance
68
ANNEXURE
1. Age
o 18-21
o 22-24
o 25-27
o 28-30
o Others
2. Gender
o Male
o Female
o Others
3. Occupation
o Graduate student
o Employed
o House wife
o Small business
4. Income group
o 0-20000
o 20000-40000
o 40000-60000
o 60000-80000
o Above 80000
5. How aware are you about GST rates?
o Not at all
o Slightly
o Moderately
o Very
o Extremely
6. Are you aware about different types of GST (IGST, CGST, SGST)?
o Yes
o No
o Neutral
7. how aware are you about income tax credit provision under GST?
o Not at all
o Slightly
69
o Moderately
o Very
o Extremely
8. what do you think, are benefit of GST to the consumer?
o Lower amount of tax is paid
o No cascading effect
o Better accessibility of goods
o All of the above
9. what do you think, are disadvantages of GST to the consumer?

o Need to understand software
o Price hike and inflation would be possible after implementation of GST
o Income tax return that you need to file
o Higher amount of tax
o All of the above
10. GST is still beneficial after comparing benefits to disadvantage.

o Strongly disagree
o Disagree
o Neutral
o Agree
o Strongly agree
11. Rate the following products according to your agreeability to buy them before GST
implementation.
Product High Medium Low
o Beverages
o Cosmetics
o Leather
o Textile
o Personal care
o Toys
o Households
o Others
70
12. Rate the following products according to your agreeability to buy them after GST
implementation
Product High Medium Low
o Beverages
o Cosmetics
o Leather
o Textiles
o Personal care
o Toys
o Households
o Others
13. GST significantly affects purchase decision of consumer
o Strongly disagree
o Disagree
o Neutral
o Agree
o Strongly agree
71

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" (IMPACT OF GST ON CONSUMERS) "

for partial completion of the degree of

B. Com (Accounting and Finance)

Under the Faculty of Commerce

" ARTI SANTOSH TIPPREDDY "

UNDER THE GUIDANCE OF

SASMIRA COLLEGE OF COMMERCE AND SCIENCE

Sasmira Marg, Worli Mumbai 400030

ACADEMIC YEAR 2019 – 2020

for partial completion of the degree of

B. Com (Accounting and Finance)

Under the Faculty of Commerce

“ARTI SANTOSH TIPPAREDDY “

UNDER THE GUIDANCE OF

SASMIRA COLLEGE OF COMMERCE AND SCIENCE

Sasmira Marg, Worli Mumbai 400030

ACADEMIC YEAR 2019 – 2020

Name and Signature of

ARTI SANTOSH TIPPAREDDY

PRO. TRIPURARI JHA

I would also like to express my sincere gratitude towards my project guide

Chapter Title Page no.

1.13 GST return filling online

1.15 For late filing

1.16 Key focus for successful GST

Chapter 4 Data analysis, interpretation and

Chapter 5 Findings and conclusions

1.1Before GST Tax System

Tax structure before GST

Indian Taxation System

Direct Tax Indirect Tax

(B) Indirect Tax

1.2 Introduction to GST

1.3 GST rates1

1.4 GST bill

1.5 Cascading effect of taxation

1.6 How will GST be a remedy?

1.7 Different types of GST

CGST (GST to be Dual GST

3. Concurrent Dual GST

Non-concurrent Dual GST

GST model proposed in India

1.9 Advantages of GST

2. Higher threshold for registration

Let us look at this table below:

Tax Threshold Limits

Excise 1.5 crores

VAT 5 lakhs in most states

Service Tax 10 lakhs

GST 20 lakhs (10 lakhs for NE states)

Table 2: source: secondary data: https://cleartax.in/s/benefits-of-gst-advantages-

3. Composition scheme for small businesses

5. The number of compliances is lesser

6. Defined treatment for E-commerce operators

7. Improved efficiency of logistics

8. Unorganized sector is regulated under GST

1.10 Disadvantages of GST

1. Increased costs due to software purchase