RESEARCH PROJECT REPORT

ON

“Impact of GST on Construction Companies.”

Towards partial fulfillment of

Master of Business Administration (MBA)

Submitted by:
Ayush Chaurasia
Roll No.1180672039

Session 2019-2020
School of Management

Babu Banarasi Das University

Sector I, Akhilesh Das Nagar, Faizabad Road, Lucknow
(U.P.) India
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 DECLARATION

I undersigned Ayush Chaurasia student of MBA 2nd semester declare that the
project on “IMPACT OF GST ON CONSTRUCTION COMPANIES” has been
personally done by me under the guidance of Prof. Mr. Abdullah Shadab, in
partial fulfillment of MBA Program. All the data represented in this project is true
& correct to the best of my knowledge & belief.

I also declare that this project report is my own preparation and not copied from
anywhere else.

(AYUSH CHAURASIA)

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 ACKNOWLEDGEMENT

I take this opportunity to express my deep sense of gratitude, thanks and regards
towards all of those who have directly or indirectly helped me in the successful
completion of this project.

I thank Prof. Mr. Abdullah Shadab sir, who has sincerely supported me with the
valuable insights into the completion of this project.

I am grateful to all my pears and my friends who have helped me in the successful
completion of this project.

Last but not the least I am indebted to my parents who provided me their time,
support and inspiration needed to prepare this report.

(AYUSH CHAURASIA)

(LUCKNOW)

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 TABLE OF CONTENT

Certificate 1
Declaration 2
Acknowledgement 3
Chapter Topic Page
No. No.
1 Introduction 6
2 Objectives 28
3 Literature Review 32
4 Research Methodology 37
5 Limitations 41
6 Data Analysis 43
7 Conclusion 65
8 Recommendations 71
Bibliography 73
Questionnaire 75

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 CHAPTER- 1
INTRODUCTION

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 Introduction
Introduction In the construction industry, we seek to continuously improve the way
we work to achieve high results, saving time, power and price. In doing so, too
many shortcuts have been taken, many time-saving games are conducted, resulting
in insufficient records about all the additions to the projects. There are tremendous
topics that are virtually absent in terms of documentation of information on all
undertakings on the completeness of the mission. In things like this, there is scope
for improvement, to be able to regulate it, the Finance Ministry has put in Goods
and Services Tax (GST) so that you can regularize the growth quarter. Introduction
to goods and

To arrive at a conclusion, a detailed study starting from gesture segment to

handover segment can be shown in detail with areas around the mission in which
the cost of work has been affected due to GST implementation. These researches
no longer present a good picture of what it might be like to look at all the locations
of the problem to overcome the unnecessary rate, but it is moreover to analyze and
create such a schedule to assist the assignment manager Going, which can be found
correspondingly. Determined rate and time frame to minimize the consequences of
rate differentials within the construction enterprise. Therefore, to get a clearer
picture of the rate increase or decrease due to GST, a detailed look at the earlier
undertaking and a look at the rate variation of GST later.

An unmarried tax structure is certainly a welcome step and seeks to introduce

Goods and Services Tax (GST) through incorporating a large limit of central and
state taxes into unmarried tax. GST can no longer deal with double taxation
concerns, but will also help reduce the overall tax burden on gadgets and services.
Furthermore, it will additionally help make Indian gadgets internationally
competitive, due to which the economy will get a huge boost.

Real estate enterprise is indeed considered as one of the most important sectors in
India and has seen tremendous growth not only in cities but also in small towns.
GST is another development in an effort to have a very good impact on the sector.
Let us have a look at the impact of GST on the reform enterprise and real sector.

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Transparency and Accountability: - GST will provide complete transparency in the
real goods sector, while it will additionally have a prominent place in reducing
dishonest (black money) transactions. Currently, there can be a large percentage of
each project in which the expenses go unread in the books. Curbing the fake billing
exercise on the buy-in factor will help reduce the element of coinage in GST
construction, which, in turn, will help to increase the confidence of stakeholders.

Input Tax Credit: - Although the GST rate of 18% on the distribution of works
contract in the construction sector may be better than the earlier rates, the
governance of neighborhood composition schemes has ended even though they are
now eligible for full input tax credit. Score score. However, some listed
manufacturing offerings made up of dams, roads, etc. houses, which were
exempted earlier, are now under the purview of GST. It originally enforced the
general construction contract in the preceding regime, which hovered for a
variation of 11 to 18%, now chargeable at a flat fee of 18%. As a recall of fact, if
you take into account discounted services, this marked difference is additionally
evident, such that some infrastructure services are no major leeway in the current
regime. It has been said that, thanks to the availability of admission credit score,
The improvement quarter is projected to benefit in the long run. This is due to the
fact that, under the GST regime, the input tax credit score on raw materials can
bring an everyday independent tax incidence for construction services.

Additionally, with GST, real goods developers will get entry for unintended entry
tax credit on GST paid for services and goods at the same time as the GST price on
external supply is 12% simultaneously. Earth. Consisting of multiple items with
more than 12% as inward, it is predicted to go with the flow not going to go with
the flow so a very notable coin will go with the flow. Real goods developers will
get entry for the unexpected entry tax credit on GST paid for services and goods at
the same time, as the GST price on external supply is 12% simultaneously. Earth.
Consisting of multiple items with more than 12% as inward, it is predicted to go
with the flow not going to go with the flow so a very notable coin will go with the
flow. Real goods developers will get entry for unintended entry tax credit on GST
paid for services and goods at the same time as the GST price on external supply is
12% simultaneously. Earth. Consisting of multiple items with more than 12% as
inward, it would involve paying GST on going too far with the flow predicted to
not go with a very notable coin.
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Broader factors This removes the ambiguities of the pre-GST regime, and the
resulting litigation, thus far as indirect taxation on real estate is concerned.

Compliance and efficiency: - Thanks to the elimination of various central, nation •

and neighborhood taxes, GST will allow for quicker and less complex switch of
goods between states. By applying a uniform tax size, the entire real property
sector will improve the result. tax compliance. GST will also inadvertently replace
maximum slant taxes with a single tax, creating a universal green taxation system.

Double Taxation: - The real estate sector suffers from issues of segregation •
Regarding a couple of taxation which was more than 25 percent in slant taxes. GST
will be exempt from double taxation, which will relieve domestic buyers and
investors from the hassle of paying multiple country taxes on a one-to-one level.
Postage stamp

Duty and registration: - Closing constraint is that stamp responsibility is no longer

prescribed under GST and hence will be maintained as miles today. Basically there
is no provision for input tax set available for stamp responsibility paid for land
going towards the entire base of GST. In addition, there can be no change on
registration expenses as well as real property sales transactions. The silver layer is
such that the GST provider will assume the taxes and duties by introducing (VAT)
charges, which were payable on the sale of manufacturing assets.

Benefits of GST:

1. GST is a clear tax and the threshold for slanted taxes is also low.

2. GST will not be a rate for registered retailers so there may be no hidden tax and
the fees for doing commercial company may be reduced.

3. People will reduce prices in the form of profit which will help organizations in
flip as there will be a boom in intake.

4. There is no doubt that in the manufacture and distribution of products, offerings

are overused or consumed and vice versa.

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5. Separate taxes for goods and services, which is a triumphing taxation system,
calls for the price of products and the department of transactions for tax values, the
main complications for compliance, as well as more complications, administration.
for.

6. In the GST system, while all taxes are integrated, it can make it possible for the
burden of taxation to break evenly between manufacturing and offerings.

7. Based on the concept of VAT and at different points (from production to retail
outlets), now GST can be consumed at the last holiday. This will help to remove
monetary distortions and will not lead to growth in an unusual national market.

8. GST will also help collect a clear and corruption-laden tax administration.

9. Currently, a tax is charged when an entire product originates from a factory,

which is paid through the manufacturer, and is then sold at retail outlets.

10. GST is subsidized with the help of GSTN, which is a fully protected tax
platform to address all the factors of GST.

Overall, the GST estimates are intended solely to help supply the necessary
transparency and accountability. Furthermore, as the flow of credit scores go along
with the projected loosening, builders should have the ability to experience an
increase in specific margins. Whether those benefits are mitigated for customers,
however, remains to be seen as the pricing of the sector is determined by the way
market forces prioritize policies. Judging from the customer's point of view, a
primary advantage may be in terms of reduction of the popular tax burden on the
gadget and quick transparency in the tax system. GST will also help get rid of
useless paperwork at the same time as eliminating the wastage of time spent
through accurate 11 suppliers in fragmented states across the US borders.

GST impact on real estate

The construction of a complex building, civic structure, or a factor targeted entirely

or partially to the market for a buyer, has difficulty conforming to 12% with the
entire Entry Tax Credit Rating (ITC), no return scenario. In case of overflow of
ITC. In different words, residential manufacturing services will invite GST at 12
per cent commensurate with the objective of keeping a close watch on developers

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selling residential gadgets before the final touch of introduction to home
customers.

For states with non-aggregate VAT (Karnataka, Tamil Nadu, Andhra Pradesh),
transaction costs are marginally revised from 10–11% to 12, according to the JM
financial document on GST.% Under the rule of modern times. With input price
credits available, developers in those areas may also see an improvement in
margins when there is no fee revision (for anti-profiteering conditions).

Abhishek Anand, Assistant Vice President (Equity Research), JM Financial

Limited, explains: “In contemporary governance, states with overall VAT are
required to pay developers a lower VAT price over the entire input price with no
input tax benefit (Maharashtra, Haryana) is not. Or partial profit (intra u. S. Offset.
Bangalore). Under this rule, developers leave transaction fees - VAT (1%) and
provider tax (4-5%) to consumers (normal 5-6%). Developers only get an offset for
the input provider tax aspect. In the GST regime, the transaction rate will be
reduced to 12%, with both a credit score rating recorded, offerings and content.
The transaction prices of the property will increase by 6% usage if no credit rating
is given through the rating developers. If the builders pass on the recorded credit
score to the consumers, The property fee increase may be limited to 1-2%. "If
builders definitely give up on credit and reduce base prices, then home buyers may
get additional benefits under the GST regime.

In spite of under-production or construction of property under pre-GST and post-

GST regime, stamp duty will continue to be applicable.

Will GST help domestic consumers?

With the introduction of Goods and Services Tax (GST), the entirety of the tax will
increase from 5.5 percent to 12 to 12 percent. However, builders should be able to
leverage input credit scores on all goods and offerings purchased and spent inside
the production of the goods.

Shrikant Paranjpe, President of CREDAI Pune Metro stated that “the impact of
GST on property expenses, it may be difficult to reduce this fee as there is a lack of
clarity on the sanctuary for land charges. In a product, in which the basic raw

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material is not covered by GST and the completed unit is also no longer blanketed
through GST, it may be difficult to calculate or justify the tax entry benefit. Only
the marketplace force, ready reckoner expense and time, will determine whether or
not the builders can benefit the purchasers. "

In addition, the cost of entry materials can also be volatile. The cost of cement and
steel may increase with caution. Similarly, sand is in constant accelerated supply
and should no longer be within the monsoon. Therefore, it is likely that even these
industries may not go to the full benefit of the tax credit. Another important aspect
that seeks to investigate is the extent of production. If the challenge is at an
advanced stage, where a substantial fee has already been levied compared to GST's
software program, very little entry credit may be available and passed at a very low
profit. If the venture is at an initial stage, additional blessings may be given.

GST Below Construction Property - Affordable Housing

It is important to note that if the GST exemption is prolonged for less luxurious
housing projects (cheap housing is currently exempted from service tax and the
clarification from authorities for exemption from GST is anticipated), then, In
addition to low-cost homes, the increase may be cheaper under the GST regime.

The government directed the developers not to levy GST charges on low-cost
houses.

On February 7, 2018, officials asked developers to no longer charge any Goods

and Services Tax (GST) from domestic consumers, due to the fact that almost all
low-cost housing initiatives move with a powerful GST rate percentage Is eight,
which can be adjusted towards the input credit score. It stated that developers
could impose GST on buyers of low-cost housing projects, excellent if they reduce
apartment fees after factoring in the credit score rating claimed on the input.

In its remaining meeting on January 18, 2018, the GST Council tallied the
concessional price of 12, taking into account GST for construction of houses under
the Credit Linked Subsidy Scheme (CLSS) to promote affordable housing, Which
has been given a basic structure. In the 2017-18 budget. However, the effective
GST fee, after deducting a -0.33 levy for the house / flat, comes in a reasonable

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way all the way down to eight, with the move in lieu of the land fee. This provision
was effective from January 25, 2018.

Impact of GST on property prices - Luxury segment

In the case of merits of a peak value, even the basic production duty may be
slightly reduced, but due to the fact that the input tax credit is limited to 12, taking
into account the percentage, it will bring down Tax legal responsibility to zero due
to taxes paid on individual expenses.

GST Rate for Real Estate - Input Material

HSN Description of goods do the Evolution

Chapter 72 Steel 18 percent

2523 Cement 28 percent

6802 Marble and granite 28 percent

2515 Marble and granite blocks 12 percent

Chapter 68 Blowing sand lime bricks and ash bricks 12 percent

2505 and 2517 Natural Sand, Pebble, Gravel 5 percent

8428 Lift and lift 28 percent

Under the tax regime, construction materials are stable with slabs between 18 and
28 percent. For example, the steel and metal trade, mostly in 18, is in keeping of
blocks and cement and structural components prefabricated for building or civil
engineering, corresponding to a slab of 28 percent. However, due to the fact that
entry tax credit score is available on goods used for production, the overall tax
incidence is to be neutralized.

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Reverse fee mechanism in GST and its impact on arrival expenditure
The mechanism in which the recipient of services pays service tax is called the
'reverse price mechanism' (RCM). The same concept, with wide application, is
borrowed from service tax legal points within the Goods and Services Tax (GST)
regime.
A developer is required to pay GST on services received, such as offerings
equipped with the use of a person who is located in a non-taxable place, offerings
equipped with the use of the transport of goods, useful resources of an individual
or firm Legal Services. , Etc. The developer also has to pay GST under the reverse
tariff mechanism on offerings supplied by the use of government or local
authorities, such as municipalities, etc. Nevertheless, many offerings such as those
provided with useful resource of officers, renting of premises, unique offerings
provided through postal authorities, transportation of products by railways or with
processing of state shipping undertakings, etc. The doors are outside the purview
of GST, such as the provider tax regime.

A top notch departure under GST legal points, as compared to the earlier service
tax provisions, is that under the alternative price mechanism in GST, a person
registered under GST will have to pay GST on all services and goods that are
purchased. Can go A person who is not registered under GST.

This has widened the scope of reverse price mechanism for all taxable persons and
is adversely affecting the builders. Further, the tax payable under the opposite price
mechanism under GST cannot be adjusted through the developer against the
recorded credit available from the GST paid on inputs, but wants to be paid
through cash / bank charges.

Therefore, below GST, developers are poor, as the dual effect of levy of GST on
services derived from unregistered character as well as reverse tax on gadgets
received from unregistered suppliers needs to be 15. Certainly an increase in
expenses for the developer, especially smaller developers who were already taking
advantage of goods and services from unregistered suppliers and were not affecting
the value of taxes in that amount.

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GST on gear up assets

If the OC is acquired for the assignment, no GST may be relevant. The CRISIL
report states that currently, a developer will pay excise tax and VAT on inputs such
as cement and metals with 27.7% and 18.1 percent, respectively, which is a
diversification for us from the country. Now, under the GST regime, cement and
metal are probably taxed at the rate of 28% and with 18% respectively, on specific
inputs like paint and white goods at the same time, can be taxed at the
corresponding 28 percent . The very final product - the housing unit - can be taxed
at the corresponding 12 percent, with a credit for taxes paid on inputs. As the tax
levied on the entire cost, in which the land may correspond to 12 percent, the
quantity may be sufficient to provide an input credit rating for developers. That's
why,
However, the computation of tax under the GST regime for the real property
market is not so straightforward. For example, GST on below-introduction
responsibilities can be charged to domestic customers on the sale price, but credit
scores can be leveraged through developers on a production fee basis. As the
builder will be required to pay GST on the entire challenge and is most effective on
the entry fee availed, there may be a hollow that is not less than 30 per cent. As a
result, whether you choose an under construction goods or ready-to-float-in unit,
the developer will increase the fees to that ratio, to ensure that this hole is bridged.

GST on property rent

“Input / GST credit / set-off is available to a developer, if the sale is received prior
to previous or first occupancy to obtain a final touch certificate. However, this
credit score is not allowed if the developer chooses to rent the property. Therefore,
we will see an increase in business fares, ”explains Amit Sarkar, accomplished and
head - indirect taxes, BDO India.
GST has been levied more on the rental of residential goods, to be used as
accommodation. Consequently, tenants may additionally see an increase in rent
payments under the GST system, as no provider tax may apply to residential
properties within the current system.
Here is how the GST will impact the computation of tax on income:
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With the clubbing of taxes on goods and services under the GST regime, the
imposition of separate taxes on the issuer and goods is dispelled.

Unlike the freight tax regime, the restricted ledge for applicability of GST has been
increased from Rs 10 lakh to Rs 20 lakh. Therefore, many landlords who were
covered under the provider tax regime would get out of the net by slanting under
GST.

It can be thrilling to know that for the purpose of banning the combination of Rs 20
lakh below GST, all taxable, in addition to exempt goods and services will be
taken into consideration. Therefore, unlike the carrier tax regime, where it is by far
the most effective taxable offerings that are supposed to determine whether you
have yet crossed the primary limit, under GST, the issuer and the supply The rate
for all goods in India, as well as exports, taxable or exempt, is assumed to be 20
lakh rupees. GST is proposed to be levied at 18 per cent on commercial properties
being exempted.

Along with appreciation of rent on commercial properties, there is a major

fundamental tax implication under GST. Parliament has borrowed the concept of
'reverse fee mechanism' from the freight tax regime under GST. However, the
provider is no longer like the tax regime, in which the reverse rate mechanism
applies in the case of offerings and does not apply in the long run to the sale or
manufacture of goods, applied to goods other than similar services, GST regime
below. A character who is registered under GST, who receives factors of products
or services from someone who is not registered below GST, has to pay GST under
the reverse rate mechanism. Under the provider tax regime, there is no provision of
reverse mechanism, with recognition of rent paid with the assistance of the lessee.

Will the domestic debt be increased due to the introduction of GST?

Before evaluating the potential impact of GST on home loan fees, it is important to
recognize Miles for the purpose of impacting with the help of the extended charges
below GST. The main charge for taking a domestic loan is the interest charge on
cash. This fee will no longer be exchanged, as there can be no provider tax or GST
on it. Similarly, any stamp obligation in relation to the documentation of home
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mortgage will no longer be exchanged with GST, as stamp liability is not imposed
below GST.

However, there are various values that can be levied on home loans to thrift
creditors. The first and most important is the processing fee which is paid at the
time of taking home loan. In fairing, it is miles with 15 per cent, but it will bypass
the aid of use according to three below GST, corresponding to 18 per cent. This is
usually a one-time fee and its specific impact on the tenure of your house loan may
be negligible. In addition, banks may recover different values such as added value,
appraised value, etc., such as in relation to home mortgages, for the purpose of
passing proportionately.

Just like the processing rate paid at the time of application, you should pay the
prepayment prices if deciding to prepay the home mortgage before the last touch of
its term or shift the home loan to every other lender . This is usually due; If the
housing mortgage is taken below a constant rate of interest. For floating charge
home loans, banks may not charge any prepayment value. However, housing
finance companies may incur prepayment expenses, if you decide to transfer the
home mortgage to some other lender. However, for the home mortgage fee from
your personal resources, housing finance corporations cannot charge any
prepayment expenses.

Creditors can charge you more for any EMI default due to refund of check or ECS,
which will attract GST charges. Therefore, it is miles on almost all charges that are
recovered through creditors that the GST fee will pass with three percent.

How are banks kept low with GST?

Implementation of GST will bring some tax financial savings for creditors, as
credit is entered with entry for services received, similarly for goods purchased,
GST should be for set off in competition for output taxes, liability. . However, the
opposite fee mechanism, which is borrowed from the provider tax regime and
which is below GST, will adversely affect the profits of banks. In addition, under
the GST at present all lenders in the country are required to sign, whereas under
the carrier tax regime, they can obtain a centralized registration. This would
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significantly increase the compliance fees of creditors and impact their
profitability.

Gray areas in GST that can determine the final rate of properties
It is still unclear what is going to be available to calculate the provider's tax for
manufacturing available for land-value. The rules applicable below the service tax
regime and the tax credit score facility for builders, will decide whether the
effective tax spread on real goods is more or less below GST.

Effectively, the composition scheme, taking into account the competition in land
tariffs by seventy-five per cent of the residential plan as per the quantum, powerful
gadgets for residential gadgets priced below Rs 1 crore and less than 2,000 sq.ft.
makes. Three .75 in step with percentage. In other cases, the cancellation all the
way right up to 70 percent, bringing the powerful value to 4 percent. This will go a
long way, determining whether the GST is tax independent of real property or tax
catastrophic.

Further, as there is a type of state-diploma tax in states, the implication of GST

cannot be uniform in all states at some level.
The strong case for bringing real estate under GST to Finance Minister Arun
Jaitley, in a lecture at Harvard University on October 12, 2017, stated that the real
estate sector, ideally, wants to be given a scope. Goods and Services Tax (GST).
“An area in India, which has the maximum amount of tax evasion and cash
production and which remains outside GST, is the actual goods. Some states are
pushing for this.
I personally think there can be a strong case for bringing real property to GST,
”said Jaitley. The Finance Minister said that the operational customers want to
acquire, as they would need the simplest to pay one final tax on the entire product.
"As a final result, the final tax paid on the full product under GST can be almost
negligible," he said.

Will GST on real goods benefit domestic shoppers and the sector?

There are many problems and gray zones that must be overcome before GST
becomes a reality in real property. Niranjan Hiranandani, president of NAREDCO,
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says that bringing real estate under the ambit of GST would benefit customers who
would be most effective and would like to pay a final tax on the entire product.

However, if the GST slab for actual goods is finalized with 12 percent, then the
home customers and the builder can take a hit at the same time, as the baggage fees
are already unaffected in many places. .
In addition, states will have to come back on board to form a consensus for the
Finance Minister. This is perhaps particularly difficult, in states where real
property transactions are the most important source of sales for the state through
stamp binding and goods registration.

One Year of GST: Profit and Loss

Home buyers in the cheap housing segment, in particular, 60 square meter carpet
space homes in size, have benefited from a massive 4 percent assistance with GST
exemption (with 12 to eight percent in mind). Keeping) with steps).

However, even after about twelve months after the GST came into force, the most
effective real clarity that exists for goods customers is at the prevailing GST rate of
12 GST as part of the introduction initiative. At the bottom of ITC's pass-over, a
potential home client continues to have confusion about the amount of discount.
Confusion is not the most effective, although ITC's share on discount mode and
installment is high. On their part, the builders are saying that to get into ITC they
will have to do several calculations and pass it at some point of the last installment
with the simplest.

The GST is actually lowering developers' production tariffs, reducing double or

triple taxation to a more mild level through input tax credit scores. While there are
no wide variations within regular taxes, the GST abolished the after-tax system. In
addition, shady transactions are being particularly minimized, bringing
transparency and obligation in place.

However, stop-customers have not received a consummate profit due to the

inherent ineffectiveness of the anti-profiteering provisions. They will benefit best if
the base property costs are low and the developers pass on tax credits to their
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customers. With the advent of GST, the tax has been abolished, but overall higher
than the wallet of domestic customers, given that even after passing through ITC,
they would have to make three to four payments. Percent additional compared to
the former provider tax + VAT regime.

GST on maintenance fees of housing society

Under the early carrier carrier tax regime, housing societies are required to test
themselves under the regulation of provider tax, if the maintenance fee levied
through the housing society is paid in aggregate of Rs 10 lakh in a financial year.
However, under the Goods and Services Tax (GST) regime, this ban has doubled
to Rs 20 lakh. Therefore, if the total of the maintenance fee to be levied with the
assistance of the housing society is more than Rs 20 lakh, then it will have to be
financially tested under the legal recommendations of GST and get the registration
number.

While calculating the Rs 20 lakh ban, even exempt gadgets such as property tax
and reducing the cost of electricity from the member should be considered.
Therefore, a housing society has to acquire GST from its members if the total of
the charges or subsequently an economic (whether or not there is difficulty for
GST) exceeds Rs 20 lakh. Even though the ban on registration for housing society
is Rs 20 lakh. , But there is no need to apply GST if the amount of maintenance fee
for each flat or workplace does not exceed Rs 7,500 for a month.

GST on sale of flats is not relevant after the glitch of Mahima certificates, the
Finance Ministry clarifies
On December 8, 2018, the Finance Ministry stated that GST will no longer be
levied on customers of real property properties, for which a certificate of
completion is issued at the time of sale. However, the Goods and Services Tax
(GST) is probably relevant on the sale of below-production assets or on the sale of
down-to-skip-in-flats, with the finishing touch certificate not always issued at the
time of sale, it said .
He stated, "It has been reported to buyers of construction related goods that there
can be no GST on the sale of complex / construction and furnished-to-operate flats,
including the issue of completion certificate with sales assistance. After the sale
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takes place. According to the competent authority, "the ministry said in a
statement.

Apart from this, due to being eight steps ahead with GST like Jawaharlal Nehru
National Urban Renewal Mission, Rajiv Awas Yojana, Pradhan Mantri Awas
Yojana or some different housing schemes of the state governments, very low cost
housing charges have been described which can be adjusted. Like the builders Tax
Credit Score (ITC) towards its earned entry.

For consumers, this means that both of their purchase charges will increase, in the
event that they determine to purchase such goods, or the overall spread of options
will decrease. After all, now all un-equipped furnished-to-float-in properties may
not even have a glorious certificate of honor.

On the other hand, developers can be left with no option to incur GST costs in
works equipped with options that have not been awarded very final touch
certificates. If they are trying to shed this excess burden for their customers
immediately, they should be known to have flow-equipped gadgets that do not
have a completion certificate, possibly in rate phrases for customers, Under-
Creation is equivalent to functions. . The burden of unsold inventory within the
number one market is likely to increase rapidly, as more and more domestic buyers
may also be more. Now don't forget to look for resale gadgets, which can be
exempted from GST.

However, this announcement could be a blessing in disguise for the secondary

market, as customers looking at ready-to-circulate-in gadgets instead of paying
with 12 percent GST on pre-installed devices will now be honest about this option.
Will check with

Unfinished house hurts gst

The Goods and Services Tax (GST) on real estate projects below manufacturing is
squeezing coins, as well as the realtors' drift going on as many shopkeepers are
looking for finished homes or choosing antiquities to break the tax Doing what
some stakeholders recommend: Telegraph.
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Buyers of inclusive, downward production properties of flats throughout the
United States of America are being requested to pay GST 12 as a percentage of the
agreement price. But no GST is implemented as the undertaking obtains the crown
glory certificate.

The GST is paid in full by the officials receiving the cash again on his input to the
builder. Under normal circumstances, the builders want the refund to not go
beyond the entire GST for the consumer.
But the way enterprise fees have been harmed has caused trouble. The land charge
is fixed at one / 3 or 33, taking into consideration the percentage of the mission
value and is avoided with GST charges.

But in cities and on their periphery, land money is owed for a large percentage of
the value. In works in which the cost of land is more than 33 percent, the deduction
remains at 1/3 of the price. In this way the builder receives tax for a portion of the
cost for which he does not receive the cash back, and pays it to the buyer.

The state of the real property market has ensured that the buyer can now locate the
cash to wait. A conceptual pause inside the Assets marketplace has convinced
customers that there is little chance of looking ahead to meet a challenge. In a
growing market, nearby customers become viable as soon as possible for the
concern that the cost will be thrust until a challenge is met.

With stamp responsibility and registration fees of 7.1-8.1 and corresponding to 12

percent GST, the cumulative incidence of tax is running above 19 percent for a
downward manufacturing project. Before the GST was launched, a company tax
was changed as stamp responsibility and registration fee. But the freight tax price
increased to an extraordinary 4.5, taking into account the cents.

"Can I ban GST once, which can be large enough for premium goods?" Asked
Abhi Mitra, a funding planner at the National Stock Exchange, who currently
offered a furnished-flow-in-condo in an EM Bypass project.

Page | 22
A resident of the town said that he supported two under-construction duties in the
neighborhood, but threatened to pay GST. They shopped the ancient flat for 15–
365 days.

“Members of my own family were in the process of purchasing an old property.

But I went ahead. Although I would have to spend on the renovation of the flat, the
price is still low as I was not required to pay GST, ”he said.
Real stuff players defined it as a "tough environment". “It is a difficult
environment. Buyers are within weight-and-watch mode, especially for tasks that
can be started within one hundred sixty-five days. Since the property charge is not
showing an increase, the clients are ready to play the gears game, ”said Harsh
Patodia, chairman and director of handling, Unimark Group, a partner within
Trump Tower in Calcutta.

The moratorium of offers is having a negative impact on cash flow. Compared to

handover, the finishing work in advance varies from forty to 60 per cent of the cost
builders.
Restricted cash going with the float is forcing developers to dig into their reserves
to complete projects.

Banks, wary of non-performing items in production, are not ready to lend easily.
Non-banking finance corporations, which demonstrated a savior for realtors in the
absence of banks, are also leaving due to a liquidity crunch and have become
frugal.

A well-known undertaking on the EM bypass near Ruby Hospital tripled its profits
after receiving a finishing touch certificate from municipal authorities over the
course of 12 months. But until then, it had a piece of coins to participate in the
problem.

The same rule applied to the carrier tax though applied for the purpose that the tax
no longer stands so much due to GST, but it no longer had as high an impact as the
brand new levy.
In addition, the new regulation has shut down some builders and shoppers are
being exploited. They were at the same time flirting with the technique of leaving
Page | 23
the sales agreement unregistered, as to keep it away from paying the carrier tax to
be taken into production, and after the final 12 months on June 30, GST . However,
the Real Estate Regulatory Authority (RERA) started it a year ago in Bengal and
made the registration of the sale agreement mandatory.

Nandu Bellani, the president of the builders' association CREDAI (Bengal), is not
complaining about the costs. “In a mature market, fees no longer have to spread
rapidly. But the income should be such, which has been badly affected due to GST.
The cash flow needs to be there, ”he said.
To accelerate sales, some developers are absorbing GST and compensating for
losses with inputs (credit, cement, bricks, etc.) or input tax credit ratings obtained
on contracts consumed. Some builders are reducing expenses to take the buyer
away from tax.

Sushil Mohta, past president of CREDAI Bengal and proprietor of Merlin Projects,
underscored the trouble that profit should be left with reducing income margins to
limit the capacity of builders. Mohta said: “In Calcutta, the land component within
a reasonable undertaking fee is much higher than a 0.33. The better the land fee,
the less our ability to pass through the benefits of rebate to customers. This is why
high-stop initiatives suffer the most and new launches have declined. "

Basant Parekh, along with Orbit's director, who collaborates in premium and
luxury initiatives, said buyers had disappeared. “Investors come in all through the
underconstruction phase. But they may be wary of paying with 12 per cent GST,
which is not always recoverable after glory, ”he said. Parekh flagged one
fundamental difficulty: the authorities have to take care of why stamp duty and
GST are being levied on property transactions. “Stamp responsibility is charged
under the Switch of Property Act. GST is considered as goods. There is a need to
levy a single tax, ”he said.

Some sources said that due to the lack of capacity of policy makers, it could be
decided that an asset could be on the basis of a perceived discrepancy. Stamp
liability is levied on an asset and GST on goods and services. Since goods and
services are used during construction, GST is levied at that level. Mohta said that

Page | 24
CREDAI has given representation to the Union Finance Ministry to reconsider the
decision but no final result has yet come.

The conclusion

As a domestic consumer, one is able to understand what the implementation of

GST might mean for domestic charges going forward.

1. With GST, there should be an increase in property fees at some level across the
board as soon as

2. Although builders cannot invoice domestic consumers for GST, they can
transfer the sales rate charges

3. The original fee increase for new residential properties may be modest
Even less for branding new commercial enterprise properties.

4. Secondary home market fees should see a knock on effect.

One of the most complex areas of tax levied through the Center and the states is
the disposal and sale of property. Currently, such transactions are damaged in three
parts - the duty of products and substances, the cost of offerings and the rate of
land. States levy VAT on the element of goods and the Center levies on the
extension of services with a specific tax on the transaction value of the land.

In GST regime, there will be no consideration of manufacture, sale or provider etc.

A concept peculiar may be 'supply'. All elements are classified as possibly supply
of products or supply of services. The construction activities are probably 'Works
Settlement' which is being labeled as 'Service'. All developers and developers in
India are likely paying MGST and SGST (i.e., Central GST and State GST). The
area of supply of the issuer is the location of real estate.

Page | 25
CHAPTER- 2
OBJECTIVES

Page | 26
 Objectives of the study

Description of the problem

India is a federal United States in which indirect taxes are levied by the federal and
state government. Value added tax is levied using state governments. Every state
has the right to fix the tax rate and control the tax gadget as its convenient move.
The power of taxation is well defined in the Indian Constitution. The Constitution
(122nd Amendment) Bill that introduced a Goods and Services Tax (GST) regime
within the US of the United States of America will eventually be taken to speak in
Parliament. Finance Minister Arun Jaitley further said that India will implement
GST from 1 April 2016. In addition, we may find simplification of taxes in the
UAS and removal of wasteful complications. India is a federal united state of the
United States which has many tax regimes and structures, In which tax is levied
through both the governments. After the introduction of GST, all indirect taxes can
be put under one umbrella, this would prove to be a milestone in the knowledge of
indirect tax reform over miles. In this paper, an attempt is made to take a look at
the salient features of GST. This paper also focuses on the problems caused by the
central and state governments.

GST is understood as a step towards making India a rustic in which a high income
tax tool is comprehensive, efficient, transparent and business friendly. It is also
considered as the world's satisfactory tax system, which is mainly based on the
implementation of united states that have implemented GST.GST in India. The
government and its group, however, are on their way to spread the GST
information to deal with confusion among the people. Sales and contracts are made
almost every day and many of those transactions have to pay GST. This is a
problem if human is still unaware or confused with GST's tax gadget and the worst
ending is when people forget and boycott not paying tax. GST is a popular problem
that is being mentioned day by day by humans, ' Miles is important to identify if
the students are private to the officers' plan and whether they are aware of the
issue. This observation therefore attempts to analyze the awareness and knowledge
of the college student on the implementation of the Goods and Services Tax (GST)
in Sivakasi.

Page | 27
The idea of Goods and Services Tax (GST) is the most significant tax reform in
decades in many countries of the world, but India started implementing it to meet
its goal of implementing Goods and Prasad Tax (GST). is. The research intends to
raise awareness of the idea of products and company tax and its impact on the
Indian economy. Accordingly, let's have a look on it: -
1. To highlight the Goods and Services Tax requirements in India
2. To study the impact of GST on the Indian economy.

Objectives of the study

1. To study the concept of Goods and Services Tax (GST) and its impact on the
Indian construction industry.
2. To understand how GST will work in India
3. Knowing the advantages and challenges of GST in Indian context
4. To know the benefits of Goods and Services Tax to the economy, trade and
industry and the consumer.

See additional results

The overview is largely a look at the secondary records collected from the
authorities 'websites, various country-wide and international journals and articles,
publications, conference papers, officials' reports, newspapers, magazines which
cover the tax structure and many elements of GST. Let's target.

Traditionally, India's tax system relied on indirect taxes. Revenue from indirect
taxes comes as the number one supply of tax revenue until tax reforms are made in
the nineties. The important argument deployed for heavy reliance on indirect taxes
becomes that the majority of India's population was nomadic and accordingly the
broad base of direct taxes had inherent limitations.

But the Indian tool of indirect taxation is characterized through cascading, which
distorts taxes on manufacturing goods and services that impede productivity and
slow economic growth. The current device has countless taxes levied with the
center's useful resource and the rest levied with state aid, a simple tax requirement
to eliminate this plurality of taxes and reduce the tax payer's weight. Is and this is
goods and service. Tax (GST). This paper throws an insight on the concept of
goods and service tax and its impact on the Indian economy.

Page | 28
 CHAPTER- 3
LITERATURE REVIEW

Page | 29
 Literature review

Literature review

The GST was first brought through the use of France in 1954 and is now with 140
international locations. Some countries, such as Brazil, Canada, have followed a
twin GST system in most international locations with integrated GST at the same
time, with the tax levied by each state at the forefront. Additional GST twin
machines like CGST and SGST are proposed in India.

• Agogo Mavali (2014) studied "Goods and Services Tax-an Appraisal" and stated
that GST is not always suitable for low-profit countries and does not offer broad
based buoyancy for negative international locations. If GST is still to be applied to
those countries, it should be less than 10% for the GST price rise.

• Jayaprakash (2014) noted in his research that GST estimates at the Center and
State degrees to provide more measures to industry, trade, agriculture and
customers through an additional full and comprehensive tax set-off and service tax.
has been applied. Setoff, membership of multiple taxes inside GST and phasing out
of CST. The reactions of the enterprise and the exchange in addition are certainly
encouraging. Thus GST gives us a great option to increase our tax base and we no
longer have the opportunity to introduce it, while the examples are quite favorable
and the monetary machine is playing a steady boom with the lowest inflation.

• Nitin Kumar (2014) studied "Goods and Service Tax - A Wave Forward" and
concluded that the implementation of GST in India helps to overcome financial
distortion with the help of state-of-the-art tax tools and makes it truly independent.
Taxes are predicted to encourage size. Different for geographical locations.

• Nishitha Gupta (2014) stated in her investigation that the introduction of GST in
the Indian structure would leave untapped commercial benefits through the VAT
machine and would fundamentally drive economic growth. Therefore GST can
also introduce a collective profit opportunity for enterprise, exchange, agriculture
and unusual buyers apart from the central government and the state government.

• Pinky, Supriya Kamma and Richa Verma (July 2014) studied, "Goods and
service tax" panacea for indirect tax machine in India "and concluded that the new

Page | 30
NDA government in India is effective in the way of implication of GST and that
Miles is more important for government, nation officials and customers in the long
term if its implications are supported through strong infrastructure Is.

• Shefali Dani (2015) has suggested that GST management is a unique attempt to
legalize the backhand value size. More than a hundred countries have met the GST
idea. The legislature of India should examine the GST administration established
through one in all the countries and then proceed with their results for realizing the
GST. IT is the need of the hour, the legislature has to strive to protect India's
largely poor population, as opposed to expansion due to the execution of GST.
GST will dislike its state-of-the-art roundabout duty framework and will have to
expel waste components created using the current odd-rate framework, if in fact a
fair take on the problems of element shortages, income tariffs and oil-based items
entirely. There may be compromise. , Power,

• Srinivas. R. (2016) in its article "Issues and Challenges of GST in India" states
that the governments of essential and united states are empowered to levy related
taxes, which are in line with the Indian Charter, to alternate the entire landscape of
the gift Has potential for. Indirect taxation system. In order to update the
miscellaneous taxes paid through both governments, GST can be a brief taxable
size on the manufacture, income and consumption of products and offerings during
India.

Milan-Deep Kaur and his co-author, Assistant Professor of Eternal University of

Himachal Pradesh, about the impact and implementation of GST after applying
GST. • A look at implementing innovative research, A in International Journal of
Sociology and Humanities (2016) Let's talk This, its benefits and painful
conditions. He additionally emphasized that GST tends to change cases in the
present day situation.

• The Times of India (July 26, 2017), pages number 1 and 17, states that sweet
makers are insisted on resolving the tax for their products because the raw
materials used in the candy at one time A tax is levied in the form of cloth and in
the form of finished goods. The goods are first rate before tax. Plane Barfi attracts
5% tax but Chocolate Barfi attracts 28% tax. Alloy barfi mixed with a unique dry

Page | 31
end result is 12%. This taxing device makes sweet manufacturers to pay attention
to how stable the GST should be for which product.

• Shakvipi (2017), a look at the behavior of some small enterprise owners in the
state of Rajasthan to increase the level of interest towards GST, decided that
focused areas included training mistakes and availability of PC software programs.

A look at Vineet Chauhan (2018), "Measuring awareness about implementation of

GST". A study survey of the small commercial enterprise unit of the state of
Rajasthan in India has been conducted. GST wants to take a look at evaluating the
attention of business owners to face the contemporary awareness of it. 148 small
business enterprise proprietors from the state of Rajasthan were analyzing the way
to identify the GST eye and equipped with relief and implement the provision
below the GST law.

• Bar Het (2018), observed that people have no doubt whatever about the proposed
benefits of GST irrespective of their commercial organization type, for the legal
fame of the commercial organization for the purpose they irritated through the gift
system Which seems cumbersome. Most respondents are confident that GST will
bring economic benefits to their commercial enterprise and do not expect any first
rate increase in tax compliance costs. Interestingly, the respondents expect that the
expenditure on tax compliance will come down after GST is implemented. Lack of
information coupled with apathy in the path of reforms can also cripple the rapid
implementation of this tool, especially in small towns in which non-orientation
programs are not planned and run through competent government to date is.

The conclusion

GST will intensify the awareness of officials towards levying tax on direct tax
(profit). Certainly due to the small income in the tax collection base, there will be a
strong increase in revenue of GST officers. It is expected that with these amounts
of sales, there will be a demand for the conditions that the government may face in
terms of the extent of the deficit and the loan period.
As it is an intake tax, it appears that the Malaysian GST tax will also serve as a
powerful drugnet for thieves and illegal migrants who pay no profit tax. The fee
paid to the BRIM recipient will make the most of the impact of the GST on the
poor.

Page | 32
GST will have some impact on buyer expenditure due to upward thrust in the price
of goods and services, but the increase in sales authorities will make the element
higher and the company will be ready to invest as export goods will be exempt
from tax. GDP will rise as government spending and investment increase. It is
expected that the implementation of GST can provide a good platform for U. s. a .
To raise the United States with higher incomes.

Page | 33
 CHAPTER- 4
RESEARCH
METHODOLOGY

Page | 34
 Primary data collection
Modus Operandi

Research is a logical and systematic search for new and useful information on a
particular subject. Research methodology is a systematic way of solving a problem.
It is a science of studying how research is to be conducted. Essentially, the
processes by which researchers become aware of their work of describing,
explaining and predicting phenomena are called research methods.

Regarding my research problem:

Current research is exploratory in nature. Since GST is a new phenomenon in

India, there is hardly any study in this area. There is a large gap of empirical and
behavioral studies on GST especially in India. The study tries to find the
importance of popular perception about GST.

Research chart

A good research design entails research design to estimate characteristics, problem

definitions, time required for a research project, and expenditure to ensure that the
necessary data are collected and that they are accurate and economically Have
been collected. A research design is purely and only a framework for a study that
guides the collection and analysis of data. Two basic types of research design are
used in this project

Exploratory research: All research projects should start with exploratory

research. This is an initial stage and is absolutely necessary to obtain a proper
definition of the problem at hand. Thoughts and insights lay major emphasis on
discovery. Exploratory study is particularly helpful in breaking broad and
ambiguous problems into smaller, more accurate sub problem statements.
Exploratory research is also used to increase familiarity with the problem under
investigation

Descriptive research: This is a design that describes the demographic

characteristics of people like something. Descriptive study is usually concerned
with the determination of the frequency with which something happens or how the
two variables differ together. A descriptive study requires a clear description of

Page | 35
who, what, when and why is at the top of the research. This requires formulating
more specific hypotheses and testing them statistically through injection
techniques.

This is the research design of the study and then it comes to develop the research
plan, which means what to do before going for the actual interpretation and it is
discussed below.

Research exhibition

Sampling techniques

Convenience sampling (non-probability) basis

Static device

MS Office Tools are being taken advantage of while preparing the project:

 MS Excel: Graphical and Graphical Representation of Data

 MS Word: preparing projects and other reports

Methods for data protection

 Traditional way of data representation ie pie chart, bar chart etc.

 Average of responses - Number of responses / total responses * 50

sample size:The sample size out of the population (universe set) is 100 nos.
Conclude study

Sampling Technique: The project will be a non-probability sample.

Research Type: The project will be exploratory research type

Analysis of data

Data collection source

primary data:

The primary data is basically the live data that I collected on the field when making
a cold call with customers and I showed them the list of questions for which I
needed these responses.
Page | 36
Source: The main source of primary data for the project was the questionnaire
which was filled out by the clients themselves or based on the discussion with the
customers for some time.

secondary data:

I secondary data for the basis of the project collected from intranet and internet,
magazines, newspapers etc.

Sampling technique

Sampling technique

Sampling techniques can be broadly classified into two types:

 probability sampling.
 non probability sampling.

Tools for analysis

 Bar chart (bar chart will be used to compare two or more values that will be
taken over time or under different conditions, usually on small data sets)
 Pie-chart (circular chart divided into regions, depicting relative magnitudes
or frequencies)

Page | 37
CHAPTER- 5
LIMITATIONS

Page | 38
 Limitations of the Study

Every scientific study has some limitations and the present study is no exception.
Here are:

 The sample size was small and could not be applied to the entire population.
 GST is a newly launched tax system so people have to face some
complications.
 The sample size is very small compared to the total population of the region.
 The study was conducted with the basic assumption that the information
given by the defendant is factual and represents their true feelings and behavior.
 It is very difficult to check the accuracy of the information provided.
 Since not all products and services are widely used by all customers, it is
difficult to draw realistic conclusions based on the survey.

Page | 39
 CHAPTER- 6
DATA ANALYSIS

Page | 40
 DATA ANALYSIS
DATA ANLYSIS AND INTERPETATION

1. How do you get to know about GST?

Table 1:

Particulars No. of Respondents Percentage

Friends/Family 15 15%
Mass Media 50 50%
Online Sources 20 20%
Others 15 15%
TOTAL 100 100%

Percentage

50
45
40
35
30 Percentage

25
20
15
10
5
0
Friends/family Mass Media Online sources Others

Interpretation: Most of the Client know about GST From Mass Media.

Page | 41
 2. Do you agree with the implementation of GST in India?

Table 2:

Particulars No. of Respondents Percentage

Yes 70 70%
No 30 30%
TOTAL 100 100%

Sales

Yes
No

Interpretation: Most of the Client agree about the implementation of GST in

India.

Page | 42
3. Do you think implementing GST will cause higher price of goods &
services?

Table 3:

Particulars No. of Respondents Percentage

Yes 80 80%
No 20 20%
TOTAL 100 100%

Yes
No

Interpretation: Most of the Client think that implementing GST will cause
higher price of goods & services.

Page | 43
4. Do you think all businesses need to be registered under GST?

Table 4:

Particulars No. of Respondents Percentage

Yes 80 80%
No 20 20%
TOTAL 100 100%

Yes
No

Interpretation: 80% user think that all businesses need to be registered under
GST.

Page | 44
 5. Which system do you think is more beneficial to both Government and
people?

Table 5:

Particulars No. of Respondents Percentage

Goods & Service Tax 65 65%
Others 35 35%
TOTAL 100 100%

Goods & Servive Tax

Others

Interpretation: 65% user think that Goods & Service Tax is more beneficial to
both Government and people.

Page | 45
 6. Is India ready for implementing GST system?

Table 6:

Particulars No. of Respondents Percentage

Yes 75 75%
No 25 25%
TOTAL 100 100%

Yes
No

Interpretation: 75% user think INIDA is ready for implementing GST system.

7. How was your experience using GST?

Page | 46
 Table 7:

Option No. of Respondents Percentage

Poor 20 20%
Satisfactory 15 15%
Good 20 20%
Excellent 45 45%
TOTAL 100 100%

Percentage

45
40
35
30
Percentage
25
20
15
10
5
0
Poor Satisfactory Good Excellent

Interpretation: From the above graph shows that Most of customer says excellent
for using GST

8. GST is a very good tax reforms for India?

Page | 47
 Table 8:

Options No. of Respondents Percentage

Strongly Agree 10 10%
Agree 40 40%
Neutral 15 15%
Disagree 15 15%
Strongly Disagree 20 20%
TOTAL 100 100%

Percentage
40

35

30

25 Percentage
20

15

10

0
Strongly agree Agree Neutral Disagree Strongly disagree

Interpretation: From the above graph shows that Most of customer agree for
using GST.

9. GST has increased the various legal formalities.

Page | 48
Table 9:

Options No. of Respondents Percentage

Strongly Agree 25 25%
Agree 10 10%
Neutral 35 35%
Disagree 20 20%
Strongly Disagree 10 10%
TOTAL 100 100%

Percentage
35

30

25
Percentage
20

15

10

0
Strongly agree Agree Neutral Disagree Strongly disagree

Interpretation: From the above graph shows that Most of customer are neutral
about that GST Has Increased The Various Legal Formalities. 25 % customer
are Strongly Agree about that GST Has Increased The Various Legal
Formalities. And rest customer are are Agree about that GST Has Increased The
Various Legal Formalities.

10.GST has increased the tax burden on common man.

Page | 49
 Table 10:

Options No. of Respondents Percentage

Strongly Agree 45 45%
Agree 20 20%
Neutral 10 10%
Disagree 15 15%
Strongly Disagree 10 10%
TOTAL 100 100%

Percentage
45
40
35
30
Percentage
25
20
15
10
5
0
Strongly agree Agree Neutral Disagree Strongly disagree

Interpretation: 45% customer are Strongly Agree about GST has increased the
tax burden on common man. 20% customer are Agree about GST has increased
the tax burden on common man. And rest are 45% customer are not Agree.

11.GST has increased the tax burden on businessman in the construction

industry.

Page | 50
Table 11:

Options No. of Respondents Percentage

Strongly Agree 55 55%
Agree 25 25%
Neutral 10 10%
Disagree 05 05%
Strongly Disagree 05 05%
TOTAL 100 100%

Percentage
60

50

40
Percentage
30

20

10

0
Strongly agree Agree Neutral Disagree Strongly disagree

Interpretation: 55% customer are Strongly Agree about GST has increased the
tax burden on businessman. 25% customer are Agree about GST has increased
the tax burden on businessman. And rest are are not Agree

12.GST will increased the inflation in the country.

Table 12:

Page | 51
 Options No. of Respondents Percentage
Strongly Agree 60 60%
Agree 20 20%
Neutral 05 05%
Disagree 10 10%
Strongly Disagree 05 05%
TOTAL 100 100%

Percentage
60

50

40
Percentage
30

20

10

0
Strongly agree Agree Neutral Disagree Strongly disagree

Interpretation: 60% customer are Strongly Agree that GST will increased the
inflation in the country. 25% customer are Agree that GST will increased the
inflation in the country. And rest are are not Agree

13.GST will increase the Tax collection of GOVT.

Table 13:

Page | 52
 Options No. of Respondents Percentage
Strongly Agree 75 75%
Agree 20 20%
Neutral 05 05%
Disagree 00 00%
Strongly Disagree 00 00%
TOTAL 100 100%

Percentage
80

70

60

50 Percentage
40

30

20

10

0
Strongly agree Agree Neutral Disagree Strongly disagree

Interpretation: 75% customer are Strongly Agree that GST will increase the
Tax collection of GOVT. 20% customer are Agree that GST will increase the
Tax collection of GOVT. And rest are are not Agree

14.GST will affecting small business very badly.

Table 14:

Page | 53
 Options No. of Respondents Percentage
Strongly Agree 65 65%
Agree 27 27%
Neutral 08 08%
Disagree 00 00%
Strongly Disagree 00 00%
TOTAL 100 100%

Percentage
70

60

50
Percentage
40

30

20

10

0
Strongly agree Agree Neutral Disagree Strongly disagree

Interpretation: 65% customer are Strongly Agree that GST will affecting
small business very badly. 27% customer are Agree that GST will affecting
small business very badly. And rest are are not Agree.

15.GST affects the Indian construction market negatively.

Table 15:

Page | 54
 Options No. of Respondents Percentage
Strongly Agree 25 25%
Agree 35 35%
Neutral 10 10%
Disagree 15 15%
Strongly Disagree 15 15%
TOTAL 100 100%

Percentage
35

30

25
Percentage
20

15

10

0
Strongly agree Agree Neutral Disagree Strongly disagree

Interpretation: most of the customer are agree that GST affects the Indian
construction market negatively.

16.GST will cause an increase in the costs for material procurement.

Table 16:

Page | 55
 Options No. of Respondents Percentage
Strongly Agree 30 30%
Agree 40 40%
Neutral 10 10%
Disagree 15 15%
Strongly Disagree 05 05%
TOTAL 100 100%

Percentage
40

35

30

25 Percentage
20

15

10

0
Strongly agree Agree Neutral Disagree Strongly disagree

Interpretation: Most of the customer are agree that GST will cause an increase
in the cost of for material procurement.

17.GST will make the construction projects slower?

Table 17:

Page | 56
Particulars No. of Respondents Percentage
Yes 90 90%
No 10 10%
TOTAL 100 100%

Yes
No

Interpretation: From the above graph shows that most of our respondents are
agree that GST will make the construction projects slower.

18.GST will make day to day purchases in a construction industry more

expensive?

Table 18:

Page | 57
Particulars No. of Respondents Percentage
Yes 85 85%
No 15 15%
TOTAL 100 100%

Yes
No

Interpretation: From the above graph shows that most of our respondents are
agree that GST will make day to day purchases in a construction industry more
expensive

19.Is the average GST rate in the construction industry preferable?

Table 19:

Particulars No. of Respondents Percentage

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Yes 25 25%
No 75 75%
TOTAL 100 100%

Yes
No

Interpretation: From the above graph shows that most of our respondents are
not agree that average GST rate in the construction industry preferable

20.GST will increase the tax burden on the businesses in the construction
industry?

Table 20:

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Particulars No. of Respondents Percentage
Yes 70 70%
No 30 30%
TOTAL 100 100%

Yes
No

Interpretation: From the above graph shows that most of our respondents are
agree that GST will increase the tax burden on the businesses in the
construction industry.

21.GST will help make the construction industry sector more organized?

Table 21:

Particulars No. of Respondents Percentage

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Yes 50 50%
No 50 50%
TOTAL 100 100%

Yes
No

Interpretation: From the above graph shows that our respondents are confuse
about that GST will help make the construction industry sector more organized.

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 CHAPTER- 7
CONCLUSION

The conclusion
Summary of Findings

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 Most customers know about Mass Media from GST.
 Most of the customers agree about the implementation of GST in India
 Most customers think that the implementation of GST will cost more for
goods and services.
 80% of users think that all businesses need to be registered under GST
 65% of users think that goods And service tax is more beneficial for both
the government and the people.
 62% of users think that GST will put burden on people / consumer.
 75% of users think that INIDA is ready to implement GST system.
 The above graph shows that most of the customers say excellent to use GST.
 The above graph shows that most of the customers say excellent to use GST.
 The graph above shows that most customers are neutral about whether GST
is a very good tax reform for India. 25% of customers disagree that GST is a
very good tax reform for India.
 The above graph shows that most of the customers are neutral about that
GST has increased various legal formalities. 25% of customers agree that
GST has increased various legal formalities. And the rest of the customers
agree that GST has increased various legal formalities
 45% customers are strong. GST has increased the burden of tax on the
common man. About 20% of the customers of GST agree that the tax burden
has increased on the common man. And the remaining 45% of customers do
not agree.
 55% of customers strongly agree about GST, this has increased the tax
burden on the businessman. 25% of customers agree that GST has increased
the tax burden on the businessman. And the rest do not agree.
 55% of customers strongly agree about GST, this has increased the tax
burden on the businessman. 25% of customers agree that GST has increased
the tax burden on the businessman. And the rest do not agree.
 75% of customers strongly agree that GST will increase GOVT's tax
collection. 20% of customers agree that GST will increase GOVT's tax
collection. And the rest do not agree.
 65% of customers strongly agree that GST will affect small business very
badly. 27% of customers agree that GST will affect small business very
badly. And the rest do not agree
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 Most customers disagree that GST is effectively influencing customer
purchasing power.
 Most of the customers agree that GST affects the Indian construction market
 Most customers agree that the cost of construction industry will increase due
to GST.
 The graph above shows that most of our respondents agree that GST will
make day-to-day purchases in a construction industry more expensive.
 The above graph shows that most of our respondents do not agree that the
average GST rate is better in the construction industry
 The above graph shows that most of our respondents agree that GST. Will
increase tax burden on businesses in construction industry
 The above graph shows that our respondents are confused about the fact that
GST will help in making the construction industry sector more organized.

Occasional conclusions
GST can be the mother of all Indian tax reforms at this center and will
subscribe to the maximum (if not all) of the central and state level taxes
prevailing on the delivery of products and services.

Accordingly, GST will have a major impact on the environment of the

corporation and its operations. While examining the organizational readiness
to adopt GST, the impartial directors want to focus on the following adders:

1) GST can have manifold impact on operations - Apart from fiscal impact
and tax compliance, GST can have an impact on cash flow, product pricing,
supply chain readiness, procurement, revenue popularity and IT systems. It
is therefore important to evaluate whether the enterprise is evaluating the
overall impact of GST which includes all the above.

2) Assess the impact on economic outcomes - GST can have an impact on

economic statements; For example, eliminating tax cascading may also
reduce the top-line in some cases (Easy Traded Items). The gross margin
may undergo additional changes because the Cost of Goods Sold may also
undergo modifications as a result on the input tax credit. For listed
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corporations, those amendments would have to release quarterly forecasts
and earnings in the stock markets.

3) Monitor the impact on cash flow - Most of the schemes in GST will
revolve around cash flow optimization. This may be due to amendments in
the aspect of import, inventory transfer and taxation / tax credit of GST.

4) Organizations additionally want to redesign their supply chain parts - the

tax concept of mere supply of merchants and services under GST, rather
than sales under existing VAT, will affect the factors of sourcing, production
and distribution . the supply chain. For example, the sourcing version should
include sourcing combinations (local, inter-country and imports), stock
transfer coverage, and vendor rate rigonotation due to the GST effect. From
a manufacturing perspective, the GST effect may depend on easi on / job-
work / contract manufacturing depending on manufacturing and distribution
preparedness. "Place of supply" pointers will determine the country in which
to submit GST.

5) Linkages for companies applying IFRS, Understand Variations - For

groups implementing IFRS, requirements under IFRS are included with
those below GST. Organizations necessarily seek to re-align their IT
structures to manipulate those variations. For example, there may be a
potential difference between the date of GST levy and the popularity of
sales, accounting for many elements of preparedness (the price of the EG bill
includes a supply and maintenance element), barter transactions, the
reconciliation of GST on inventory. Accounting for. Transfer with
accounting data etc.

Along with the proposed Goods and Services Tax regime, there has been a
good procurement of the complaint.

From the above discussions one can derive the following conclusions: -

• In developing an open financial system with a developing service sector,

the alternative is to provide a useful supply of income within the tax combo,
from income to tax-based taxes.

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• The proposed figure will simplify the technology that accompanies it •
Equal opportunity for all markets and reduce second-hand tax evasion. It is
preferred that every economy needs to adopt GST to a nationwide degree to
make its economic tool attractive to investors from overseas locations.
Implementing GST can lead to sustainable and balanced improvement in
developing economic gadgets like India. Gradually, India will be operational
in taxation, corporate legal cues and managerial practices to enroll within the
quarterly larger requirements and have many leaders in these areas.

• It can also be concluded from the above communication that GST will
provide measures to manufacturers and customers with a useful resource of
input tax credit set-off, large scale and full coverage of provider tax prompt
and Vista taxes. . Further it can be concluded that GST has good impact on
diverse sectors and enterprise.

The implementation of a full GST on goods and services is projected, ceteris

paribus, with India's number of GDP at 0.9% to 1.7 with step by step to
1.7%. Similar amendments to the absolute values of GDP in 2008-09 are
estimated to be between RS forty, 789 crore and 83,899 crore respectively.
The comparable greenback fee increase is estimated at between $ 9,461
million and $ 18,550 million, respectively. Additional improvements in
GDP, arising from the GST reform, over and above the increase in GDP will
be earned at some unspecified time in the future of all years that might
otherwise be executed.

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 CHAPTER- 8
RECOMMENDATIONS

Recommendations
Based on the results of the study, the following suggestions are made.

Page | 67
 Some suggestions for better administrative machinery to handle the
implementation of the Goods and Services Tax Act in India are:

 Standardization of systems and processes

 Tax relief in case of branch transfer
 Well-defined procedures in terms of job work
 Uniform Dispute Settlement Machinery.
 Adequate training for both tax payers and tax promoters
 Re-organization of administrative machinery for GST
implementation.
 Building Information Technology Backbone - The most important
initiative for GST implementation.
 Equal implementation of GST should be ensured in all states (as
opposed to staggering implementation of VAT) as many issues may
arise in the case of transactions between GST compliant states and
states that are not compliant with GST.
 We can advertise in many ways like banner advertisement, web
advertisement, outdoor housing advertisement etc.

BIBLIOGRAPHY

Books:

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  Adhana, D. K. (2015). Goods and services tax (GST): A panacea for
Indian economy. International Journal of Engineering & Management
Research, 5 (4), 332 - 338.
 Agogo Mawuli (2014): “Goods and Service Tax- An Appraisal” Paper
presented at the PNG Taxation Research and Review Symposium, Holiday
Inn, Port Moresby,29-30
 Chakraborty, P., & Rao, P. K. (2010, January 2). Goods and services
tax in India: An assessment of the base. Economic and Political Weekly, 45
(1), 49 - 54.
 Fabian and Erik Hoelzl(2015) , Price , Perception and confirmation bias in
the context of a VAT increase, Journal of Economic Psychology 32 (1)
volume 2 Pg No. 131-- 141 in 20
 GST India (2015) “Economy and Policy”. Jaiprakash (2014), “Indirect
Tax Reform in India and a way ahead for GST”, International Journal of
Computing and Corporate Research, Vol 4, Issue 1.
 Kothari C.R. 2nd Edition (2004) Research Methodology … Topic “
Concept & Meaning Of Research , Sampling , Methods and Techniques Of
Data collection and Tools '' B com , BBA and MBA and M.com Textbook.
 Tripathi, S., & Tripathi, N. (2016, August 3). India : In a historic move,
Rajya Sabha passes the GST Bill : Annexure (p.4). Retrieved from
https://www.icicibank.com/managed-
assets/docs/corporate/globaltradeservice/ economic-reports/rajya-sabha-
passes-gst-bill.pdf
 Sunitha, G. & Sathischandra, P. 2017. Goods and Services Tax (GST):
As a new path in Tax reforms in Indian economy. International Journal of
Research in Finance and Marketing. 7(3): 55-66

Web Links:

 https://www.gstindia.com/about/

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 https://www.gstindia.com/about/
 https://www.thequint.com/news/business/india-gst-most-complex-28-
percentslab-second-highest-rate-in-world-world-bank
 https://www.bankbazaar.com/tax/gst.html
 https://economictimes.indiatimes.com/gst
 https://en.wikipedia.org/wiki/Goods_and_Services_Tax_(India)
 https://gst.caknowledge.in/impact-gst-automobile-sector/
 https://www.legalraasta.com/gst/impact-of-gst-on-automobilesector/
 http://auto.economictimes.indiatimes.com/news/policy/benefitschallengesfor
-auto-sector-in-gst-bill/53541153
 http://www.abplive.in/auto/gst-bill-how-it-affects-the-autosector- 391864
 http://www.caclubindia.com/articles/impact-of-gst-onautomobile-
dealersindustry-28910.asp
 http://www.gstinindia.in/GST-on-Automobiles-sector.aspx
 https://www.linkedin.com/pulse/impact-challanges-gstautomobile

QUESTIONNAIRE

1. How do you get to know about GST?

Page | 70
  Friends/Family
 Mass Media
 Online Sources
 Others

2. Do you agree with the implementation of GST in India?

 Yes
 No

3. Do you think implementing GST will cause higher price of goods

and services?
 Yes
 No

4. Do you think all businesses need to be registered under GST?

 Yes
 No

5. Which system do you think is more beneficial to both government

and people?
 Goods & Service Tax

 Others
6. Is India ready for implementing GST system?
 Yes
 No
7. How was your experience using GST?
 Poor
 Satisfactory

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  Good
 Excellent

8. Is GST very good tax reform for India?

 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree

9. Has GST increased the various legal formalities?

 Strongly Agree
 Agree
 Neutral
 Disagree

 Strongly Disagree

10.Has GST increased the tax burden on common man?

 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree

11.Has GST increased the tax burden on businessman in

construction industry?
 Strongly Agree

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  Agree
 Neutral
 Disagree
 Strongly Disagree

12.Will GST increase the inflation in country?

 Strongly Agree
 Agree
 Neutral
 Disagree

 Strongly Disagree

13.Will GST increase the tax collection of government?

 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree

14.Will GST affects the small businesses badly?

 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree

15.Has GST affected the Indian construction market negatively?

 Strongly Agree

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  Agree
 Neutral
 Disagree
 Strongly Disagree

16.Will GST cause an increase in the cost for material procurement?

 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree

17.Will GST make the construction projects slower?

 Yes
 No

18.Will GST make day-to-day purchases in a construction industry

more expensive?
 Yes
 No

19.Is the average GST rate in the construction industry preferable?

 Yes
 No

20.Will GST increase tax burden on business related to construction

industry?
 Yes

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  No

21.Will GST help make construction industry sector more

organized?
 Yes
 No

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