A

SUMMER TRAINING PROJECT REPORT

On
“A STUDY OF CONSUMER PERCEPTION TOWARDS GOODS

AND SERVICES TAX”

SUBMITTED TO
Dr. APJ Abdul Kalam Technical University,
Lucknow
For the partial fulfillment of
MASTER OF BUSNIESS ADMINISTRATION
(2018-20)

SUBMITTED TO SUBMITTED BY
Dr. Sanghamitra Das Prashant Kumar
Assistant Professor Roll No: 1882070041
AKGIM, Ghaziabad MBA 3RDSemester

AJAY KUMAR GARG INSTITUTE OF MANAGEMENT

27th K.M. Stone, NH-24, Delhi Hapur Bypass Road,

Adhyatmik Nagar, Ghaziabad-201009

1
 DECLARATION

I hereby declare that the work incorporated in this report entitled “A Study on Customer

Perception on Goods and Services Tax” at “Kumar Aggarwal & Associates (Chartered

Accountant Firm)” in partial fulfillment of the requirement for the award of Master of

Business Administration is the outcome of original study undertaken by me and it has

been done under the guidance of CA Sahib Malik at Kumar Aggarwal & Associates.

The matter reported in this Project has not been submitted earlier for the award of any

other degree.

PRASHANT KUMAR

2
 ACKNOWLEDGEMENT

I owe my gratitude to many people who helped and supported me during the entire

Summer Training. My sincere thanks to Dr. Sanghamitra Das, the Faculty Guide of the

project, for initiating and guiding the project with attention and care. She has always been

available for me to put me on track from time to time to bring the project at its present

form.

My deep sense of gratitude is due to CA. Sahib Malik Partner in Kumar Aggarwal &

Associates (KA&A) for allowing me to carry out the Summer Internship and this Project

at the organization and to be constantly available to me for the period, for guidance. He

also helped me to see the subject of study in its proper perspective. Thanks and

appreciation is also due to the officials, employees and respondents of Kumar Aggarwal

& Associates (Chartered Accountant Firm), for their support.

Not to forget, the faculty members of Ajay Kumar Garg institute of Management,

Ghaziabad who have kept my spirits surging and helped me in delivering my best.

I also thank all faculty members without whom this project would have been a distant

reality.

Signature

PRASHANT KUMAR

3
 TO WHOMSOEVER IT MAY CONCERN

This is to certify that Mr. Prashant Kumar of MBA (Batch 2018-2020), has successfully

undergone a Summer Training in Kumar Aggarwal & Associates (Charted Accountant

Firm) From 12/06/2019 To 22/07/2019, towards partial fulfillment of the requirement for

the mba During the tenure of Summer Placement, Mr. Prashant Kumar has carried out a

Summer Project titled “A Study on Customer Perception on Goods and Services Tax”. I

certify that the Summer Internship and the Summer Project have been undertaken by Mr.

Prashant Kumar, AKGIM.

We wish him all the success in professional career.

Dr. Sanghamitra Das

Assistant Professor

AJAY KUMAR GARG INSTITUTE OF MANAGEMENT

Date:

4
 FACULTY GUIDE CERTIFICATE

This is to certify that the work reported in the Summer Internship Project titled “A Study

on Customer Perception on Goods and Services Tax”, submitted by Prashant Kumar,

AKGIM is a bonafide record of her original work carried out under my supervision. This

work has not been submitted elsewhere for any other degree or diploma.

(Signature of Faculty Guide)

Name: Dr. Sanghamitra Das

5
 EXECUTIVE SUMMARY

Goods and Services tax is considered to be an important tax reform in the country. Goods

and Services tax is based on destination principle which means tax accrues at the

place of consumption rather than the place of manufacturing. Common people are

more affected by the goods and services tax and the effects were adverse at the time of

introduction of goods and services tax. However since revisions were made, this

burden seems to have reduced for the consumers. This study seeks to understand

the consumer perceptions towards goods and services tax implementation by taking

a microeconomics approach considering disposable income, spending ability rather

than a general study of consumer perceptions. The study finds that consumers are

satisfied with goods brought under 0% slab and consumers do not experience an

increase in personal income after goods and services tax implementation. The study

uses simple descriptive statistics to present the results so that even a common layman can

understand what the research study seeks to communicate to the readers of the paper.

Finally, the study arrives at a meaningful conclusion which can be used as a basis for

further research study relating to goods and services tax. Keywords: Goods and

Services tax, Destination principle, Microeconomic approach, Disposable income

and spending ability.

6
 TABLE OF CONTENTS

Chapter No. Particulars Page No.

1. Introduction of company 10-12

2. Introduction of topic 14-37

3. Literature review 39-45

4. Research objective 47-48

5. Research methodology 50-54

6. Data analysis and interpretation 56-76

7. Findings 78

8`. Conclusion 80-81

9. Recommendations 83

10. Limitations 85

11. Bibliography 87-88

12. Appendices 90-93

7
 LIST OF TABLES AND GRAPHS

S.NO. Particulars Page No.

1. Table and Graph 1 57-58

2. Table and Graph 2 59-60

3. Table and Graph 3 61-62

4. Table and Graph 4 63-64

5. Table and Graph 5 65-66

6. Table and Graph 6 67-68

7. Table and Graph 7 69-70

8. Table and Graph 8 71-72

9. Table and Graph 9 73-74

10. Table and Graph 10 75-76

8
 CHAPTER-1

COMPANY
INFORMATION

9
INTRODUCTION

Kumar Aggarwal & Associates (KA&A) is one of the leading chartered accountancy firm

rendering comprehensive professional services which include audit, management

consultancy, tax consultancy, accounting services, manpower management, secretarial

services etc. K & A Professional Approach Blended With Personal Touch Has Earned

The Chartered Accounting Firm Enormous Confidence Of All Its Clients, Which Is

Reflected In An Enduring Business Relationship That It Enjoys With Them And Also In

The Consistent Growth In Portfolio Of Its Services. The Chartered Accounting Firm

Regards The Provision Of A Personal, High Quality Service To The Clients As An

Absolute Priority. The Firm Has Immense Knowledge And Experience In Dealing With

Matters Relating To Direct Taxes, Indirect Taxes, Internal Controls, Audits &

Assurances, Company Law, Securities Laws, Inbound And Outbound Investment, Legal

Due Diligence, Transaction Documents, Joint Ventures, Foreign Collaborations,

Technology Transfers, Mergers And Acquisitions, Listings And Capital Market

Transactions. We Are A Technology Savvy Firm, And Are Equipped With The Latest

Technology And Communication System. Headquartered In New Delhi And Having

Branch Office In Noida, Uttar Pradesh.

'Kumar Aggarwal & Associates (KAA) was founded in 2009 and since then it has been

providing professional services in INDIA which includes Audit & Assurance, Direct

Taxes, Indirect Taxes, Internal Controls, Company Law Matters, Joint Ventures, Mergers

and Acquisitions, Accounting Services and Management Consultancy. We are a

professional Advisory Firm, whose aim is to synthesize knowledge into value for the

10
benefit of our clients, our people and the community at large. Our firm’s color is “blue”

which relates to trust, honesty and dependability, therefore helping to build customer

loyalty. It indicates confidence, reliability and responsibility. Our Mission, Vision and

Core Values are the basis of our utmost integrity and professionalism.'

OBJECTIVES OF FIRM

QUALITY SERVICE

We attempt to hire only competent individuals and evaluate them regularly. We offer

competitive compensation, ongoing training, and several opportunities for advancement

through specialization in the services we provide to clients.

TIMELY SERVICE

Our team members must meet deadlines without sacrificing quality.

GROWTH

We work to expand the Firm, both in size and in the range of services we offer. As we

become skilled in new areas, we are able to recommend additional services to existing,

as well as prospective, clients.

PERSONAL FULFILLMENT

We hire individuals who are self-starters and whose personalities complement others in

the Firm, thus creating an environment where each person can develop his or her career

potential at whatever pace he or she chooses.

11
Vision statement

Our vision is to be recognized as the best professional service organization that enabled

our clients and our people to achieve the desired balance between personal, professional

and financial success.

Mission statement

Our Mission is to become a professional accounting and consulting firm presenting a

comprehensive range of services to exceed the Needs of our clients by fostering an

environment that encourage.

Values

Our values are based on serving the customers in the best possible manner. Customer

service is a continuous process of improvement and our core values are the guiding

principles in our approach to business.

12
 CHAPTER-2
INTRODUCTION TO
TOPIC

13
Concept and Introduction of Tax

Taxation is the inherent power of the state to impose and demand contribution upon

person and properties for the purpose of generating revenues for public purposes. Tax is

enforced proportional contribution from person to property by the law making body of

the state.

Brief history of Taxation:

Tax is today an important source of revenue for the government in all the countries. More

than 3000 year ago. The inhabitants of ancient Egypt and Greece used to pay tax. ,

consumption tax and customs duties. Income tax was first introduced in India in 1860 by

James Wilson who has become first finance member.

In order to meet the looses sustained by the government on account of military mutiny of

1857. In 1918 A new income tax bills was passes and which was further again replaced in

1922. Finally, the ministry of law and finance. The income tax was passes in 1962 and

bought in force on 1st April 1962.

Essential Characteristics of tax

 It is an enforced Contribution.

 It is generally payable by money.

 It is proportionate in character usually based on ability to pay.

 It is commonly required to be paid in intervals.

14
A good tax system should meet five basic conditions: fairness, adequacy,

simplicity, transparency, and administrative ease.

1. Fairness, or equity, means that everybody should pay a fair share of taxes. There

are two important concepts of equity: horizontal equity and vertical equity.

2. Horizontal equity means that taxpayers in similar financial condition should pay

similar amounts in taxes.

3. Vertical equity is just as important, however. Vertical equity means that taxpayers

who are better off should pay at least the same proportion of income in taxes as

those who are less well off. Vertical equity involves classifying taxes

as regressive, proportional, or progressive.

 Regressive tax: A tax is regressive if those with low incomes pay a larger

share of income in taxes than those with higher incomes. Almost any tax on

necessities, such as food purchased at a grocery store, is regressive because

lower income people must spend a larger share of their income on these

necessities and thus in taxes. Oklahoma’s sales tax is one example; lower-

income residents pay a much larger share of their incomes for groceries and

other necessities than higher income ones, so the sales tax takes more of their

income.

 Proportional tax: A tax is proportional if all taxpayers pay the same share of

income in taxes. No taxes are truly proportional. Property taxes often come

closest since there is typically a close relationship between a household’s

income and the value of the property in which they live. Corporate income

15
 taxes often approach proportional because one rate applies to most corporate

income.

 Progressive tax: A progressive tax requires higher-income individuals to pay

a higher share of their income in taxes. The philosophy behind progressive

taxes is that higher income people can afford and should be expected to

provide a bigger share of public services than those who are less able to pay.

The federal income tax is the best example of a progressive tax; the Internal

Revenue Service reports that the top one percent of taxpayers by income paid

38 percent of federal income taxes in 2012.

 Adequacy means that taxes must provide enough revenue to meet the basic

needs of society. A tax system meets the test of adequacy if it provides

enough revenue to meet the demand for public services, if revenue growth

each year is enough to fund the growth in cost of services, and if there is

enough economic activity of the type being taxed so rates can be kept

relatively low.

4. Simplicity means that taxpayers can avoid a maze of taxes, forms and filing

requirements. A simpler tax system helps taxpayers better understand the system

and reduces the costs of compliance.

5. Transparency means that taxpayers and leaders can easily find information about

the tax system and how tax money is used. With a transparent tax system, we

know who is being taxed, how much they are paying, and what is being done with

the money. We also can find out who (in broad terms) pays the tax and who

benefits from tax exemptions, deductions, and credits

16
 6. Administrative ease means that the tax system is not too complicated or costly for

either taxpayers or tax collectors. Rules are well known and fairly simple, forms

are not too complicated, it is easy to comply voluntarily, the state can tell if taxes

are paid on time and correctly, and the state can conduct audits in a fair and

efficient manner. The cost of collecting a tax should be very small in relation to

the amount collected.

Meaning of Tax

A tax is from the Latin word taxo is a compulsory financial charge or some other type of

levy imposed upon a taxpayer (an individual or legal entity) by a governmental

organization in order to fund various public expenditures. A failure to pay, along with

evasion of or resistance to taxation, is punishable by law.

Different types of tax

TAX

DIRECT TAX INDIRECT TAX

CORPORATE TAX SALE TAX

INCOME TAX VALUE ADDED TAX

GIFT TAX GOODS &

17
SERVICE TAX (GST)
Different types of Tax in India:

Various kinds of Taxes in India. Taxes in India can be either Direct or Indirect. The types

of taxes even depend on whether a particular tax is being levied by the central and state

government.

Direct Tax

Direct Tax is directly paid to the union government of India. The visible growth in these

tax collection as well as the rates of taxes reflects a healthy tax. A few direct taxes,

I. Banking cash transaction.

II. Corporate tax.

III. Personal income tax.

IV. Tax incentives.

Indirect tax

The indirect taxes in the nation are generally levied on some specific services on some

particular goods. An indirect tax is not levied on any particular organization or an

individual.

I. Custom duty.

II. Exercise duty.

III. Sales tax.

IV. Service tax.

18
Income tax

The income tax was incorporated in 1860 in India. Income tax in India includes all

incomes except the agriculture income that is levied and collected by central government

income is also shared with the states.

Benefits of Goods and Services tax

 GST will to create a unified common national market in India, giving a boost to

foreign investment.

 Harmonization of laws, procedure and law of taxes.

 It will boost export and manufacturing activities.

 Improve the overall investment climate in the country.

Benefits to consumer

 Final prices of goods and services to be lower due to seamless flow of input tax

credit between the manufacture, retailer, and supplier.

 Average tax burden on companies is likely to come down which is express to

reduce prince and lower price means more consumption.

 It is accepted that relatively large segment of small retailer will be exempted form

the tax or suffer from very low tax rate under compounding scheme.

19
GST Returns Penalties: Annual return

: INR-200Per day Per head.

: Up to maximum 0.25% of
agg turnover.
Returns

Monthly Returns Annual Returns

3B GSTR-9

Normal Assesse Composite Dealer

GST-9 GST-9A

(31ST Dec of (31ST Dec of

next F.Y) next F.Y)

20
Meaning of goods and services tax

Clause 366(12A) of the constitution bill define GST as goods and services tax means any

tax on supply of goods and services , or services or both except on the supply on the

consumption of the liquor for human consumption.

Definition of GST (Goods and service tax)

Goods and services tax (GST) is a tax on goods and services with value addition at each

stage having comprehensive and continuous chain offset of benefits from the

producer’s/service provider’s point up to the retailers level where only the final consumer

should bear the tax.

Meaning of Goods

Goods means every kind of movable property other than money and securities but

includes actionable claim, growing crops, grass and things attached or forming part of the

land, which are agreed to be served before supply or under a contract of supply.

Salient feature of GST

 Dual GST Model

 Destination based consumption tax

 Taxes to be subsumed

 Central tax–central excise duty

 Service tax

 Surcharges and cess

21
  State tax–VAT

 Entertainment tax

 Luxury tax

 Taxes on lottery, betting

 Octroi–entry tax

 GST on Export and Import.

 Computation of GST on the basis of invoice credit method.

 Payment of GST - CGST AND SGST are paid through GST.

Types of categories under GST in India

GST

Central Goods & State Goods & Integrated Goods

Services (CGST) Services (SGST) & Services (IGST)

Will replace all Will replace all

taxes levied by taxes levied by
Central State Government Will replace CST
Government

22
Types of Goods and services tax in India:

1. CGST (Central Goods & Services (CGST): GST to be levied by the Center.

2. SGST (State Goods & Services (SGST): GST is to be levied by the State.

3. IGST (Integrated Goods & Services): Integrated GST will be levied by the

center and the state.

Different tax is covered in under GST:

1. State taxes which will be subsumed in SGST:

 VAT/Sale tax

 Taxes on lottery, betting and gambling.

2. Central taxes which will be subsumed in CGST:

 Service tax

 Additional duty

 Surcharge

3. Taxes will not be subsumed:

 Stamp duty

 Electricity duty

23
Benefits of GST

Make in India

1. Will help to create an infield common national market for India, giving a boost

to foreign investment.

2. It will boost export and manufacturing activity.

3. Generate more employment.

4. Improve allover investment climate.

Benefits to consumer

 Final prices of goods and services to be lower due to seamless flow of input tax

credit between the manufacture, retailer, and supplier.

 Average tax burden on companies is likely to come down which is express to

reduce prince and lower price means more consumption.

 Better accessibility of goods and services.

 Uniform prices throughout the country.

Advantages of GST to Trade/Industry

 Reduction in multiplicity of taxes

 Mitigation of cascading/double taxation

 More efficient neutralization of taxes especially for exports

 Development of common national market

24
Advantages of GST to Central/State Governments

 A unified common national market to boost Foreign Investment and “Make in

India” campaign

 Boost to export/manufacturing activity, generation of more employment,

leading to reduced poverty and increased GDP growth

 Improving the overall investment climate in the country which will benefit

the development To states

 Uniform SGST and IGST rates to reduce the incentive for tax evasion

 Reduction in compliance costs as no requirement of multiple record keeping

 Simpler tax system

 Broadening of tax base

 Improved revenue collections

 Efficient use of resources

25
GST SLABS & Structure of GST Rates

0% slab Rate:

Industry Items

Foods Items Daily consumption items like fresh fruits & vegetables, fresh meat,

fish, eggs, flour & honey.

Hotels Tariffs less than Rs-1000.

Pharmaceuticals Human blood and its components

Building None

materials

Automobiles None

Others Newspaper, sweets

26
5% slab Rates:

Industry Items

Foods Items Vegetables, Tea, coffee, milk power, pizza bread, packed food

Textiles Cotton textile, natural fiber, all types of yarn.

Pharmaceuticals Animal or human blood ORS, Diabetes, and life saving drugs.

Building Ceramic building bricks , sand, crushed stone

materials

Automobiles None

12% slab Rates:

Industry Items

Foods Items Butter, cheese, ghee, animal fat, meat product, fruits juice, dry fruits.

Textiles Apparel price above Rs 1000

Pharmaceuticals Ayurvedic medicines, bandages, gauges.

Building Marbles & sand lime bricks

materials
Automobiles Tractors

Electronic Mobiles phone

Toys and games Tricycle, scooters, sports products.

Others Work contracts, forks, spoons

27
18% slabs Rates:

Industry Items

Foods Items Cakes & pastries, biscuits, cornflakes, food mixes, jams, salad

dressings, ice- creams.

Textiles Man –made fiber, bamboo flooring tiles.

Pharmaceuticals Nicotine, polacrilex gum

Telecom All type of telecom

Automobiles None

Electronic Computer, printer, speakers, CCTV, camera, monitors.

Toys and games Electronic toys, cars.

Hotels Tariffs from Rs-2500 to Rs 7500.

Others IT services, financial services, weapons, bamboo furniture

28
28% slab Rates:

Industry Items

Foods Items Chocolate not contain cocoa, waffles, chewing gum.

Textiles None

Pharmaceuticals None

Building Cement, bricks, marbles, bathroom fitting, tubes and pipes,

wallpapers.
materials

Tobacco Beedis

Toys and games Video games, equipments of outdoor games

Hotels Five star hotels or above traffic from Rs 7500

Others Movie tickets Rs-100, race club betting, ATMs

29
GST registration procedure in India

It is mandatory for you register for GST and have a GSTIN if:

 You have an annual turnover limit above Rs.20 lakh for your intrastate business

 Your business located in any of the listed special states (such as Assam, Jammu

& Kashmir, Himachal Pradesh, etc.) has an annual turnover of over Rs.10 lakh

 If you own an e-commerce business

 If you own an inter-state business

 If you are required to pay tax under reverse charge

 If you are required to pay tax under Section 9, sub-section (5)

 You are a non-resident liable to pay taxes producing taxable supply

How to register for GST

 Use your PAN, email ID and mobile number to fill out GST REG-01 and submit

the same

 Verify your mobile number and email ID with a one-time password after PAN

verification.

 Store the application reference number [ARN] sent to your mobile number and

email ID after verification is complete.

 Put in your ARN number and attach supporting documents where required

 Fill out the automatically generated GST REG-03 form in case additional

information is required.

 After verification of all information submitted, a certificate of registration will be

issued to you within 3 working days.

30
What are the documents required for GST registration

 Certificate of Incorporation

 Authorized signatory’s photo

 Stakeholder’s photo (Promoter / Partner)

 Proof of business address which includes electricity bill or property tax receipt or

Municipal Khata Copy or legal ownership document

 Copy of Resolution passed by BoD/ Managing Committee and Acceptance letter

or letter of Authorization.

 Proof bank accounts details which includes a copy of your bank statement,

cancelled cheque, or the first page of your Pass Book

When is it required for a business owner to register for GST

It is mandatory for you register for GST and have a GSTIN if:

 You have an annual turnover limit above Rs.20 lakh for your intrastate business

 Your business located in any of the listed special states (such as Assam, Jammu

& Kashmir, Himachal Pradesh, etc.) has an annual turnover of over Rs.10 lakh

 If you own an e-commerce business

 If you own an inter-state business

 If you are required to pay tax under reverse charge

 If you are required to pay tax under Section 9, sub-section (5)

 You are a non-resident liable to pay taxes producing taxable supply

31
How to register for GST

 Use your PAN, email ID and mobile number to fill out GST REG-01 and submit

the same

 Verify your mobile number and email ID with a one-time password after PAN

verification

 Store the application reference number [ARN] sent to your mobile number and

email ID after verification is complete

 Put in your ARN number and attach supporting documents where required

 Fill out the automatically generated GST REG-03 form in case additional

information is required

 After verification of all information submitted, a certificate of registration will be

issued to you within 3 working days

What are the documents required for GST registration

 Certificate of Incorporation

 Authorized signatory’s photo

 Stakeholder’s photo (Promoter / Partner)

 Proof of business address which includes electricity bill or property tax receipt or

Municipal Khata Copy or legal ownership document

 Copy of Resolution passed by BoD/ Managing Committee and Acceptance letter

or letter of Authorization

 Proof bank accounts details which includes a copy of your bank statement,

cancelled cheque, or the first page of your Pass Book

32
How to track the status of your GST registration

Here is how you can track the status of your application without logging in:

 Log on to http://GST.gov.in

 Click on the ‘Services’ tab

 Select ‘Registration’

 Choose the ‘Track application status’ option

 Enter your ARN in the new window and click on search

 Your application status will be displayed on the screen and sent to your registered

mobile number and email ID

Alternatively, you can also check your application status after logging in by

following these steps:

 Log in to http://GST.gov.in with the help of your credentials

 Move your mouse over the services tab for a drop-down menu and select

‘Registration’

 Click on ‘Track application status’, enter your ARN and click on search

33
Important facts about GST registration

 Every business with an annual aggregate of over Rs.20 lakhs is required to

register for GST.

 There are 11 special states that require you to register if you have half the

turnover, which is Rs.10 lakh. These special states are Arunachal Pradesh, Assam,

Jammu & Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura,

Himachal Pradesh and Uttarakhand.

 If you are a supplier in more than one state you will need to register for GST in

all the states that you supply goods in.

 In case of multiple branches in multiple states, you can register one particular

branch as main and the remaining as additional. This is not applicable if your

business has separate business verticals as listed in Section 2 (18) of the CGST

Act, 2017

 There are no fees to register for GST

 Failing to register for GST can result in a penalty of a minimum Rs.10,000 or

10% of the amount due. In case of intentional tax evasion, the penalty can be

100% of the owed taxes.

34
 CHAPTER-3
LITERATURE REVIEW

35
The proposed GST is likely to change the whole scenario of current indirect tax system. It

is considered as biggest tax reform since 1947. Currently, in India complicated indirect

tax system is followed with imbrications of taxes imposed by union and states separately.

GST will unify all the indirect taxes under an umbrella and will create a smooth national

market. Experts say that GST will help the economy to grow in more efficient manner by

improving the tax collection as it will disrupt all the tax barriers between states and

integrate country via single tax rate. GST was first introduced by France in 1954 and now

it is followed by 140 countries. Most of the countries followed unified GST while some

countries like Brazil, Canada follow a dual GST system where tax is imposed by central

and state both. In India also dual system of GST is proposed including CGST and SGST.

Times of India (26/7/2017) page no 1&17 it is stated that Sweet makers are confused

with fixing the tax for their products as the ingredients used in the sweets are taxed

separately as raw material and as finished goods the products its taxing is different ex.

Plain burfi is 5% taxed but chocolate burfi is fixed with 28%. Plain burfi mixed with

other dry fruits is of 12%. This taxing system makes the Sweet makers to get confused on

how much GST to be fixed for which product.it is Times of India dated (

27/7/2017)stated that the GST implification across different places for the same product

has wider differences which the consumers are unaware, resulting them in surprise. Ex A

Rasamalai sold in counter at a shop is taxed with 5% but if it is served in the hotel it is

taxed with 18% this has resulted in difference of consumers shopping to purchase the

similar products

36
International Journal of Scientific research and management (2014) Girish Gargh

Assistant Professor from PGDAV College University of Delhi has published paper titled”

Basic Concepts and Features of good and service tax in India. In this paper he has given

the outline of GST and what does this tax system wants to achieve with threats and

challenges opportunities that the free market economy can bring.

International Journal of innovative studies in sociology and humanities (2016) A

study on impact of GST after implementation Milan deep Kour and his co-authors

Assistant Professor from Eternal University himachal Pradesh talks about the impact of

GST and implementation of it, its benefit and challenges. He also emphasizes that GST is

going to change things in current situation.

Agog Mawuli (May 2014) studied, “Goods and Service Tax-An Appraisal” and found

that GST is not good for low-income countries and does not provide broad based growth

to poor countries. If still these countries want to implement GST then the rate of GST

should be less than 10% for growth.

Gowtham Ramkumar (2017) in his study titled “Impact of GST on consumer spending

ability in Chennai City” concluded that consumers are left with less money after GST,

rise in inflation level and fall in prices of certain goods after GST implementation. He

further concluded that GST rates will have a significant impact on the spending ability of

the consumers and suggested that benefits of input tax credit must be transferred by the

companies to the consumers.

37
Bikas, (2013) the authors have studied the VAT rate and the EU economy and also the

link between the VAT and macroeconomic indicators and their influence on the VAT

rate. The authors conclude that there is a positive relation between macroeconomic

indicators like GDP, per capita income and consumption, export, import etc and the VAT

rate applicable.

Borec, (2013) the authors have discussed how assesses may comply with the VAT laws

given that the GST is a destination based tax. The authors mainly deal with B2C cases

where the VAT compliances would need to be done in the state where the customer is

located. The authors have discussed the difficulties in this compliance especially in the e

commerce transactions.

Bovenberg, (1992) the author uses a general equilibrium model to assess different

instruments of indirect taxation in middle income countries. The author has specifically

studied Thailand and concluded giving various methods to increase the effectiveness of

indirect taxes.

Ciobanasu (2012) the authors trace the correlation between the types of taxes and their

role in the budgeted revenues and the fiscal development of Romania. Indirect tax by its

very nature is easier to govern, is neutral to status of tax payer, and increases revenue but

leads to inflation. On the other hand direct taxes depend on the tax payer and are difficult

to govern. Further, indirect tax helps the government to an extent to direct consumption

of the public. The authors conclude that both the taxes are important for overall growth of

the economy.

38
Pinki, Supriya Kamma and Richa Verma (July 2014) studied, “Goods and Service

Tax- Panacea For Indirect Tax System in India” and concluded that the new NDA

government in India is positive towards implementation of GST and it is beneficial for

central government, state government and as well as for consumers in long run if its

implementation is backed by strong IT infrastructure.

Agogo Mawuli (May 2014) studied, “Goods and Service Tax-An Appraisal” and found

that GST is not good for low-income countries and does not provide broad based growth

to poor countries. If still these countries want to implement GST then the rate of GST

should be less than 10% for growth.

Nitin Kumar (2014) studied, “Goods and Service Tax- A Way Forward” and concluded

that implementation of GST in India help in removing economic distortion by current

indirect tax system and expected to encourage unbiased tax structure which is indifferent

to geographical locations.

Nishitha Guptha (2014) in her study stated that implementation of GST in the Indian

framework will lead to commercial benefits which were untouched by the VAT system

and would essentially lead to economic development. Hence GST may usher in the

possibility of a collective gain for industry, trade, agriculture and common consumers as

well as for the Central Government and the State Government.

39
Jaiprakash ( 2014) in his research study mentioned that the GST at the Central and the

State level are expected to give more relief to industry, trade, agriculture and consumers

through a more comprehensive and wider coverage of input tax set-off and service tax

setoff, subsuming of several taxes in the GST and phasing out of CST. Responses of

industry and also of trade have been indeed encouraging. Thus GST offers us the best

option to broaden our tax base and we should not miss this opportunities to introduce it

when the circumstances are quite favorable and economy is enjoying steady growth with

only mild inflation.

Dr. R. Vasantha Gopal (2011)studied,“GST in India: A Big Leap in the Indirect

Taxation System” and concluded that switching to seamless GST from current

complicated indirect tax system in India will be a positive step in booming Indian

economy. Success of GST will lead to its acceptance by more than 130 countries in world

and a new preferred form of indirect tax system in Asia also.

Sehrawat , Dhanda (2015) stated that, in long term implementation of GST would lead

to high output, more employment opportunities and flourish GDP by 1-1.5%. As far as

challenges are concerned they need more analytical research to resolve the battling

interest of various stakeholders and accomplish the commitment for a cardinal reform of

Tax Structure in India.

40
Devi (2016) focused on SWOT analysis of GST in Indian context and found various

strengths, weakness, threats and opportunities of GST like strength is it will drop the

cascading effects of taxes on production and distribution of goods and services,

opportunity is that it will help states and centre to collect more revenue , main weakness

is that various taxes are not included in GST and main threat is that GST is very fond of

technology and India being developing country does not have strong IT structure.

Lourdunathan & Xavier (2017) in their study stated that, the implementation of GST

requires more support from the government and also the Government to educate the

people by conducting the seminars and workshops on GST so as to create awareness

among society about GST.

Bharti Sharma (2018) stated that, Implementing of the GST makes uniformity of taxes

across the states in India regardless of place of manufacture or distribution in India,

which is better option when compared to VAT and in terms of administration. GST

integrates the tax base and capable of allowing seamless flow of input tax credit along the

value chain of goods and services, which will lead to reduced cost of overall goods and

services existing.

41
CONCLUSION OF LITERATURE

Tax reforms have drawn the attention of researchers both in India and abroad. The

implementation of VAT of comprehensive nature, or at central and state levels both, may

also involve some elements of tax design. Most of the countries have introduced VAT in

the last about 25 years. In India also indirect tax reforms have drawn attention only after

introduction of economic reforms in the country. Therefore, the literature on VAT is of

recent origin. The Value Added Tax does not have a long history admittedly; there is not

as much literature available on this topic as other forms of tax system. So, in other words,

only a limited number of studies have been undertaken on VAT and those too with

different perspectives. An attempt thereby, has been made to review the literature on

VAT. GST help to reduce the unnecessary taxes. GST play very wide role in every

economic.

42
CHAPTER-4
RESEARCH
OBJECTIVES

43
 RESEARCH OBJECTIVES

 To study the consumers opinion with regard to goods and services tax rates.

 To study the consumers opinion with regard to disposable income and spending

ability after GST implementation.

44
 CHAPTER-5
RESEARCH
METHODOLOGY

45
Introduction of Research Methodology

The research is an exploratory research and the data collection is done mainly from the

secondary data sources such as statistical data available on the official web site of Finance

Ministry of India, the books published on GST and various contemporary news articles, journals

and papers. The data so collected is used for understanding the present tax structure and for

calculating the tax structure in the GST regime along with credit provisions. The basic statistical

concept such as forecasting etc is used for determining the tax liability in of GST at different

proposed rates of tax.

About my Research problem:

GST is a new phenomenon in India. There are hardly studies in this area. The study tries to find

the significance of popular perception regarding goods and services tax.

Research Design

A good research design has character tics – problem definition, time required for research project

and estimated to be incurred. The functions of research design is to ensure that the required data

were collected are they collected accurately and economically. A research design is purely &

simply the frame work for the study that guides the collection & analysis data.

46
Developing a research plan

GST is a new phenomenon in India. There are hardly studies in this area. There is huge gap of

empirical & behavior studies on GST in India. The study tries to find the significance of popular

perception regarding GST. The data of this study was collected self. A questionnaires were

framed and it consume less time durations & it is very important from the point of view of

information, easier to tabulate and interpret

Developing of research plan:

 Sample design

 Sample Unit

 Sample Size

 Sample technique

Sample Design and size:

In this research project Descriptive research design is used. Simple Random sampling

method will be used to get the information about Goods and Services tax. For conducting this

research, a structured questionnaire is prepared and sample of 50 consumers.

Sample size:

The sample sizes of the study were 50.

47
 Sampling Method:

The Sampling method was judgment sampling only those respondents are chosen who have

some knowledge about GST.

Classification of data:

The correct information is the key of success. Data information is of two types: primary data and

secondary data. Primary data is information collected by person himself where secondary data is

collected by other researcher. Data can be classified under two categories depending upon

sources.

1. Primary Data: The study is largely based on the primary data which has been collected

through the structure of questionnaires.

2. Secondary data: It means data that are already available i.e. they refer to data which
are already collected and analyzed by someone else. Secondary data may be either
published data or unpublished data. Usually published data are available in:-

 Book magazines and newspapers.

 Public record and statistics.
 Through internet.

Using primary data collection tools:

Questionnaires:-

The questions are generally framed in 5 likert scale and answer by respondent in form of Agree,

Dis-agree, Neutral, Strongly agree and strongly disagree.

48
For the present study purpose questionnaires method is used to collect the primary data. This

questionnaire is self administered into one sections.

Research Instruments:

A questionnaire is a research instrument consisting of a serious of question and other prompts for

the purpose of gathering information from respondents. To supplement the primary data and to

facilitate the process of drawing inference, secondary data was collected from published sources

like magazines, journals, newspapers etc.

Sampling Unit:

It defines the target population that will be sampled i.e. it answers who is to be surveyed.

Tools and Techniques of analysis:

The data so collected will be analyzed through the application of statistical techniques, such as

bar graphs and pie charts.

Need of the study:

 To determining how the consumers are using GST services.

 Consumer perception will be taken into consideration about the Goods and services tax.

49
Research plan:

Data Resource: Primary Data & Secondary Data

Research approach: Survey

Research Instrument: Questionnaires

Sample size: 50

50
 CHAPTER-6
DATA ANALYSIS &
INTERPRETATION

51
 Q1. GST has increased the tax burden on common man?

TAX BURDEN ON COMMON MAN RESPONSES

STRONGLY DISAGREE 7
DISAGREE 5
NEUTRAL 7
AGREE 27

STRONGLY AGREE 4
TOTAL 50

Fig-6.1

Interpretation: The Result shows Majority of the respondent i.e. 55% agree that GST has

Increased the Tax burden on common man and 15% respondent were both Neural and dis-

agree from this statement and rest were Disagree.

52
 Q2. GST is beneficial in long term?

BENEFICAIAL IN LONG TERM RESPONSES

YES 32
NO 6
MAY BE 12
TOTAL 50

Fig-6.2

Interpretation: From the Result shows the majority of the respondent i.e. 65% thinks that GST

is beneficial in long terms & 25% thinks that it would not beneficial for long term and rest of it

believes that it is not beneficial for long term.

53
 Q3. GST will cause an increase in the cost of living?

INCREASING IN COST OF LIVING RESPONSES

STRONGLY DISAGREE 1
DISAGREE 6
NEUTRAL 14
AGREE 22

STRONGLY AGREE 7
TOTAL 50

Fig-6.3

Interpretation: The Result shows that majority of the respondents i.e. 45% agree that GST will

cause an increase in cost of living. 25% respondent were agree that the GST will increase the

cost of living , 15% strongly agree that GST will increase cost of living and other were

respondents are dissatisfying this statement that is Negotiable.

54
 Q4. Do you feel that the introduction of GST in India has affected the demand
of the product?

EFFECT THE DEMAND OF PRODUCT RESPONSES

YES 30

NO 7

MAY BE 12

TOTAL 50

Fig-6.4

Interpretation: The Result shows that the Majority of the respondents i.e. 60% of respondent,

introduction of GST in India have affected the demand of the product, 25% were Neutral and

15% were not feeling that GST in India effect the demand the product.

55
 Q5. GST will increase tax collection of government?

INCREASE TAX COLLECTION OF RESPONSES

GOVERNEMNT
STRONGLY DISAGREE 5
DISAG0REE 5
NEUTRAL 5
AGREE 22

STRONGLY AGREE 12
TOTAL 50

Fig-6.5

Interpretation: From the above chart it has been found that 45% of respondent were agree that

GST will increase the tax collection of the government, while 25% were strongly agree and rest

of the respondents are either all three respondents were Neutral.

56
57
 Q6. GST will affect small business badly?

AFFECT SMALL BUSINESS BADLY RESPONSES

STRONGLY DISAGREE 12
DISAGREE 5
NEUTRAL 5
AGREE 25

STRONGLY AGREE 2
TOTAL 50

Fig-6.6

Interpretation: From the above chart it has found that 50% of the respondent agree that GST

will affected small business badly and 25% of respondents were Strongly agree that GST

affected the business badly, & 10% Neutral and 10% Disagree.

58
 Q7. GST is a good method to replace the sales and services tax?

REPLACE THE SALE AND SERVICES RESPONSES

TAX
STRONGLY DISAGREE 5

DISAGREE 1

NEUTRAL 12

AGREE 20

STRONGLY AGREE 12

TOTAL 50

Fig-6.7

Interpretation: From the above chart it has been found that 40% of the respondents agree with

the statement that GST is a good method to replace the sales and services tax. And on the other

side 25% of the respondent was strongly agree that GST is a good method to replace the sales

59
and service tax. Because earlier there are various types’ indirect tax (sales tax, service tax etc)

and now, there is only one tax as called GST.

60
 Q8. The Goods and Services tax (GST) encourages individuals to
save part of their income?

SAVE PART OF THEIR INCOME RESPONSES

AGREE 32

DISAGREE 18

TOTAL 50

Disagree
37%

Agree
63%

Fig-6.8

Interpretation: From the above chart it has concluded that 63% people were individual to save

part of their income & other 37% are not.

61
 Q9. The newly Implemented GST confused the customers?

GST CONSUSE THE CUSTMOR RESPONSES

DISAGREE 5

NEUTRAL 24

AGREE 21

TOTAL 50

Agree
Netural 43%
47%

Disagree
10%

Fig-6.9

Interpretation: From the above chart it has concluded that 47.4% of the respondents believed

that GST confused the customers. But there is 42.1 % respondent were believed that the

implementation of GST were not confused the customers

62
 Q10. Is Goods and Services tax system is a good way for the
government to collect revenue to manage the economy?

COLLECT REVENUE TO MANAGE THE RESPONSES

ECOMOMY
YES 28

NO 19

MAY BE 3

TOTAL 50

May be
4%

No
39%

Yes
57%

Fig-6.10

Interpretation: From the above chart it has concluded that 55.6% respondent thinking that the

goods and service tax is a good way of collect revenue to manage the economy. And on the other

side 38.9% were think that it is not a good source of collecting revenue to manage the economy.

63
CHAPTER-7
FINDINGS

64
A. During the study, Most of the employees working in the organization are aware about

Goods and service tax as well which creates awareness among them related to their

rights.

B. Most of the customer’s perception that GST is very beneficial in Long Term for

economy of the country and also effect of GDP.

C. Most of the customer’s opinion that GST is fair tax. And also GST is predominantly

compliance tax.

D. Employees feel secure too in their job as their all the requirements are fulfilled by the

company as they are also having their career growth in this company.

65
CHAPTER-8

CONCLUSION

66
It can be concluded from the above discussion that GST will provide relief to producers and

consumers by providing wide and comprehensive coverage of input tax credit set-off, service tax

set off and subsuming the several taxes. It can be further concluded that GST have a positive

impact on various sectors and industry. Centre has decided to review the existing exemptions

from Central Excise Duty so that list of goods exempt from CGST and SGST list and 99 items

exempted from VAT are taken off from both the components of GST. VAT has to some extent

reduced tax-evasion and frauds. It is encouraging to note that most of the traders and general

public are aware of VAT. GST, the major reforms on indirect taxes, will reduce tax burden due

to cascading effect. The efficiency in tax administration will be improved, indirect tax revenue

will be increased considerably due to inclusion of more goods and services, and at last the cost of

compliance will be reduced for the dealers.

The implementation of GST will be in favor of free flow of trade and commerce throughout the

country. To get the desired result, it should be assured that the benefit of input credit is

ultimately enjoyed by final consumers. Although implementation of GST requires concentrated

efforts of all stake holders namely, Central and State Government, trade and industry. GST effect

the indirect taxation systems and help reduce the burden on tax payer. GST help to reduce the

burden of record make and file maintain. Because GST cover 10-12 Tax. GST reduce the price

of various goods and increase the sale. After the implementation of GST indirect taxation

systems will remove and it easy to all tax payer to pay the tax to government. Efficient

formulation of GST will lead to resource and revenue gain for both Centre and States majorly

through widening of tax base and improvement in tax compliance.

67
 CHAPTER 8

RECOMMENDATIONS

68
  It was suggested that there should be a smooth, transparent and simple transition

provisions which is easily understandable.

 Special focus on awareness and training of all officers, professionals and assesses should

be given on GST. .

 The people are not well informed on the implementation of the GST. Therefore, in order

to ensure efficient implementation of the GST, the government should come out with a

proper guideline to the society on the procedures for the implementations of GST.

 The relevant authorities especially the customer department must work closely with other

departments like information, Inland Revenue and other enforcement authority ensure

good implementation.

 Lastly, the government must ensure a good management of the income collected from the

GST.

69
 CHAPTER-9

LIMITATIONS OF THE
STUDY

70
 The main limitation of the study was the data collected may not be accurate information

as it was collected from limited personnel.

 The time span for the project was limited.

 Some clients were very reluctant to answer the questions that were asked in the

questionnaire.

 Lack of availability of relevant information was a major problem.

71
 CHAPTER-10

BIBLIOGRAPHY

72
 Ahuja Anshu (2017) “Perceptions of people towards goods and services tax”Kaav

International Journal of Economics, Commerce & Business Management, Jul - Sep

2017 | Volume: 4 | Issue: 3, ISSN No: 2348 – 4969.

 Dr. Agarwal( 2017), “People’s perception about GST – An Empirical Study”

,Kaav International Journal of Economics, Commerce & Business Management, Jul -

Sep 2017 | Volume: 4 | Issue: 3, ISSN No:2348 – 4969

 Dr. Salunkhe, Asst. Prof, SSBT‟s COET, Bambhori, Jalgaon, International

Conference Proceeding ICGTETM Dec 2017, IJCRT Publish Paper

 Jatin (2017), Awareness towards Goods and Services Tax in India, The International

Journal of Informative and Futuristic Research, June,2018

 Kumar Nitin (2014), “Goods and Service Tax in India-A Way Forward”, “Global

Journal of Multidisciplinary Studies”, Vol 3, Issue6, May 2014.

 Ling S.C (2016), Public Acceptance and Compliance on Goods and Services Tax

(GST) Implementation: A case study of Malaysia, Asian Journal of Social

Science and Humanities, 5(1), 1-12

 M. Sehrawat, U. Dhanda (2015), “GST in India: A key tax reform”, “International

journal of research granthaalayah”, vol.3, issue 12, December 2015.

 Pinki, SupriyaKamna, Verma Richa (2014), “Good and Service Tax: Panacea for

Indirect Tax System in India”, “Tactful Management Research Journal”, vol.2, Issue 10,

July2014.

73
 Ramkumar Gowtham (2017), “ Impact of GST on consumer spending ability in

Chennai city”, Primax International Journal of Commerce and Management

Research ( PIJCMR), Volume 5, Issue no.3, October – December 2017, Impact

factor 4.532, Print ISSN 2321 – 3604, Online ISSN 2321 – 3612.

 Sapna and Almuna (2017), Goods and Services Tax (GST): A Brief Introduction,

International Journal of Research in Commerce and Management.

 Vasanthagopal, D. (2011). GST in India: A Big Leap in the Indirect Taxation System.

International Journal of Trade, Economics and Finance, Vol. 2.

74
APPENDICES

75
QUESTIONNAIRE

 Name.

 Email Address.

Q 1-GST has increased the Tax burden on common man?

o Strongly disagree

o Disagree

o Agree

o Neutral

o Strongly Agree

Q 2-GST is Beneficial in long term?

o Yes

o No

o May be

Q 3-GST will cause an increase in the cost of living?

o Strongly disagree

o Disagree

o Agree

o Neutral

o Strongly Agree

76
Q 4-Do you feel that introduction of GST in India has effect the demand of the

product?

o Yes

o No

o May be

Q 5-GST will increase the tax collection of the government?

o Strongly disagree

o Disagree

o Agree

o Neutral

o Strongly Agree

Q 6-GST will effect small business badly?

o Strongly disagree

o Disagree

o Agree

o Neutral

o Strongly Agree

Q 7-GST is the good method to replace the sale and service tax ?

o Strongly disagree
77
 o Disagree

o Agree

o Neutral

o Strongly Agree

Q 8-The Goods and Services tax (GST) encourages individuals to save part of

their income?

o Disagree

o Agree

Q 9-The newly Implemented GST confused the customers?

o Disagree

o Agree

o Neutral

Q 10-Is Goods and Services tax system is a good way for the government to

collect revenue to manage the economy?

o Yes

o No

o May be

78
79