“EFFECT OF GST ON INDIAN ECONOMY AFTER ITS

IMPLEMENTATION”

PROJECT REPORT

Submitted to
RASHTRASANT TUKADOJI MAHARAJ NAGPUR UNIVERSITY,
NAGPUR
In Partial Fulfilment of the Requirement for the Award of the Degree of MBA

by
SHUBHAM SAMARTH
ENROLLMENT NO :727662639612

PROJECT GUIDE
DR. KAILAS KADU

GREEN HEAVEN INSTITUTE OF MANAGEMENT

AND RESEARCH, NAGPUR.
 CERTIFICATE

This is to certify that SHUBHAM SAMARTH is a bonafied student of Master

of Business Administration of Green Heaven Institute of Management and
Research, Nagpur. She has completed her project entitled “EFFECT OF GST
ON INDIAN ECONOMY AFTER ITS IMPLEMENTATION” submitted in
partial fulfilment of MBA program of the RASHTRASANT TUKADOJI
MAHARAJ NAGPUR UNIVERSITY, Nagpur, under my guidance and
supervision in the academic year 2020-21.

Dr. Kailas Kadu Dr. Anil Sharma

Project Guide Director

DECLARATION
I, the undersigned SHUBHAM SAMARTHdeclare that this project entitled
“EFFECT OF GST ON INDIAN ECONOMY AFTER ITS
IMPLEMENTATION” Is a genuine and bonafied project work prepared by
me in partial fulfillment of degree of Master Of business
AdministrationofRASHTRASANT TUKADOJI MAHARAJ NAGPUR
UNIVERSITY, Nagpur for Summer/ Winter 2021 examination.

 The Project work is my original work

 The Conclusion drawn are based on data collected and analyzed by me.

 I have not copied the contents from any other sources.

 I have satisfactorily completed the project work not less than one session.

 It is my own work and is sufficiently high standard to warrant its

presentation for examination.

 This project work is the result of my own research work and the same has
not been previously submitted to any examination of this or any other
University.

 The Project shall be liable to be rejected and / or cancelled if found

otherwise.

SHUBHAM SAMARTH
 ACKNOWLEDGEMENT

Completing a task is never alone journey. It is often the result of a

valuable contribution from a number of individuals in every possible way,
which ultimately helps in achieving the objective.

Firstly I would like to thank DR. KAILAS PATIL, for their kind
support and giving me the opportunity to present this project.

I am thankful to all the members of management of the college, who

provided me to all the information that I needed to complete this project. This
project would not have been accomplished without their valuable support.

I would like to acknowledge the contribution of my parents and all my friends

who have been instrumental in successful completion of the project.

Place: SHUBHAM SAMARTH

Date:
 INDEX

CHAPTER PAGE
CHAPTER NAME
NO. NO.

1 INTRODUCTION

2 REVIEW OF LITERATURE

RESEARCH METHODOLOGY
 OBJECTIVES OF THE STUDY
3  HYPOTHESIS

 LIMITATION

4 DATA ANALYSIS & INTERPRETATION

5 CONCLUSION

6 SUGGESTION

7 BIBLIOGRAPHY

8 ANNEXURE
INTRODUCTION
 INTRODUCTION

ConceptandintroductionofTax

Taxation is the inherent power of the state to impose and demand contribution upon
persons,properties or right for the purpose of generating revenue for public purposes. Taxes
are enforcedproportionalcontributionsfrom personsto property levied by the lawmaking body
of the statebyvirtue of itssovereigntyforthe supportofthegovernment and all public needs.

BriefHistoryofTaxation

Tax is today an important source of revenue for the government in all the countries. More
than3000years ago, the inhabitants of ancient Egypt and Greece used to pay tax like
consumptiontaxes and custom duties. Income tax was first introduced in India in 1800 by
James Wilson whobecomesIndians FirstFinanceMinister.

Inordertomeetthelossessustainedbythegovernmentonaccountofmilitarymutinyof1857.In 1918
a new income tax bill was passed and which was further again replace in 1922.
FinallytheMinistryofLawandFinancetheincometaxwaspassedin1961broughtandcameinforceo
n1stApril 1962 andthisisalso knownas theFinancialYear.

TaxationSystem

Tax system raises money to finance government. All governments require payment of
moneytaxes from people. Government use revenue to pay soldiers, police, to build dams and
roads, tooperateschoolsand hospitals, toprovide foodforthe poorandmedicalcarefacilitiesetc.

So,taxationisthemostimportantsourceofrevenueformoderngovernmenttypicallyaccordinglyfor
90% or moreof their income.

In the ever changing economic scenario globalization, liberalization and privatization

policies ofthe Government, in recent years, have made an indelible impact by bringing into
force neweconomic system in India. During the later part of the 20th century the
globalization wind whichswept across the countries embraced all the countries including
those which were hither toconsider as conservative and communist, either by policy or rule.
This opening up of
domesticeconomiestointernationalstakeholdershasledtoanumberofopportunitiestoeverypartici
patingcountryalong withthe threatofbeing exploited bythecounterparts.

So, it is a race where the economists to grab economic benefits to the maximum possible
extentbyfulfillingtheneededrequirements.Towhatextentweareabletoexploittheeconomicbenefi
ts depends upon the extent we are able to create an environment congenial for such
anactivity. Due to this fact it is imperative for every country to analyze the contemporary
situationand find out and forecast the expectations of the world economic environment, so as
to ascertainthe demands to be fulfilled and accordingly set the stage by adopting necessary
policies, to fulfillthe demands of the globalised world and make fit oneself to exploit the
opportunities to attaineconomicgrowth and thereby achieveall
rounddevelopmentofthecountry.

Over the centuries system of taxation has been shaped and reshaped to make it
acceptable,effective and efficient. The journey of restructuring the tax system has been going
on to make
itmoreandmoremeaningful.Whiletheinnovationsanddevelopmentsininformationandcommuni
cation technology have made the tax system more objective, transparent and
effective,theinnovationsanddevelopmentsinfinanceandbusinessmodels,globalizationandlibera
lization policies, emergence of MNEs as lead players, increase in the international tradehave
contributedinmaking thetaxsystem acomplexone.

In recent years, India has been viewed as an attractive and dynamic investment destination,
andhas witnessed an increased presence of multinational enterprises (MNEs) and a
consequentialincreaseincross-
bordertrade.ThishascreatedmanyopportunitiestotheGovernmentforimproving tax system of
the country. In India, since the inception of New Economic Policy(NEP)in1991,a host
ofsignificant developmentshavetaken place inthe taxsystem.

MEANINGOFTAX

ThewordTaxcamefromLatinword“Taxo” whichmeanstoassesorestimate.Tax can bedefined

inthefollowingways:

“ThecompulsorypaymentsmadetogovernmentsassociatedwithcertainarecalledTax”

“A specificpurpose, compulsory contributionby the peopleto public treasury to meet

theexpenditureof governmentis calledTax”.

Tax in general is the imposition of financial charge upon an individual or a company by

thegovernment of India or their respective state or similar other functional equivalents in the
state.The computation and imposition of the varied taxes prevalent in the country are carried
in theMinistry of FinanceandDepartmentofRevenue.

DifferentTypesofTaxes
DifferenttypesoftaxesinIndia

Prevalence of various kinds of taxes is found in India. Taxes can be either direct or
indirect.However,thetypesoftaxesevendependonwhetheraparticulartaxisbeingleviedbythecent
ral or state government or any municipalities. Following are some of the major taxes
leviedbytheIndian government:

DirectTaxes

Adirecttaxisataxthatispaidbyanindividualoranorganizationtotheimposingentityortobe precise.
Direct Tax is the one which is paid to the government by the tax payers. These taxpayers
include people and organization both also it is directly imposed by the government
andcannot be transferred for payment to some other entity. To name a few of the direct taxes,
whichare imposed by theIndiangovernmentare:

 CorporateTax

 BankingCashTransactionTax

 Capital GainsTax

 DoubleTaxAvoidanceTreaty

 FringeBenefitTax

 SecuritiesTransactionTax

 PersonalIncomeTax

 Taxincentives.

IndirectTaxes

An indirect tax is tax collected by an intermediary from the person who bears the
ultimateeconomic burden of the tax. The intermediary later files a tax return and forwards
the proceeds togovernment with the return. Indirect Tax is a type of tax where the incidence
and impact oftaxationdoes notfallon the sameentity.
Someofthem are:

 GoodsandServicesTax

 SalesTax

 ValueAddedTax

 CustomDutyandOctroiTax

 ExciseDuty

 Anti-DumpingDuty.

Historical BackgroundofGoodsandServicesTaxinIndia

History of GST has begun in India started before two decades and was made successful in
theyear 2017. History of GST will help you under the benefits of Goods and Services Taxes
and theadvantages over other type of taxes. History of GST given in different stages, its
transformationfrom othertaxtypesandmoreinformativedataonGSTis given inthearticle.

GSTorGoodsandServicesTaxcameintousefromJuly1,2017replacingnumberofothertaxes that
was applied till June 30, 2018. The discussion on the GST Bill has been in process
formorethan two decadesand thebill was passed toimplementGSTfrom July 1, 2017 by
thePrimeMinisterof Indiaandhis FinanceMinisterArunJaitley.GST waslaunchedon
themidnight of July 1, 2017. The single GST replaced several taxes and levies which
included:central excise duty, services tax, additional customs duty, surcharges, state-level
value added taxand Octroi. We follow the dual GST system i.e. GST for State and Central
named SGST andCGST, respectively. Let us have an overview on the history of GST from
the content below as aneye-opener.

NeedforGST

India’s recent progress towards economic growth stems from reforms undertaken after the
1991fiscal crisis, which lifted India from decades of slow growth under socialist rule and
offered anopportunity to improve living conditions in the immense, poor country. At the
same time muchhad changed in India after the balance of payments crisis of 1991. Indian
policies became morepositive about promoting export and allowing foreign capital to

12
participate in the process
ofIndia’sgrowth.Globalizationandliberalizationhavebecomeorderoftheday.Theinterdependen
ce of economies in their move for development compelled the Governments of
allthecountries tofollowtheglobalizationpoliciesadoptedbythemajoreconomies oftheworld.

To survive and grow in this economic order rational and competitive tax policies are
beingadopted by every country. India has also fallen in line with the requirement and has
beeninitiating modifications in direct and indirect taxes. The recent proposals of Direct
Taxes Code(DTC) and Goods and Services Tax (GST) are considered as path breaking in the
economicrestructuring ingeneral and in the taxationareainparticular.

ProcessandFramework ofGST:

To implement comprehensive indirect tax reform in the country the then Union Finance
MinisterMr.P.ChidambaramwhilepresentingUnionBudgetfortheyear2007-
08announcedtotheeffect that GST would be introduced from 01/ 04/2010 and an Empowered
Committee of StateFinance Ministers was constituted. The Finance Minister said that the
Committee would workwith the Central Government to prepare a road map for introduction
of GST in India. After thisannouncement the Empowered Committee of State Finance
Ministers decided to setup a jointworking group on May 10, 2007. The Joint working group
after intensive internal discussion
andinteractionwithexpertsandrepresentativesofChambersofCommerceandIndustrysubmittedit
s report to the Empowered Committee in Nov. 2007. After-words a spate of deliberations
anddiscussionswereheldfromamongdifferentinterestgroupsincludingtradeandindustrybodiesin
thelastseven-eightyears.

In the budget speech during July 2014, the Finance Minister Mr. ArunJaitly announced that
theGST would be rolled-out by the beginningof financialyear 2015-16. However, it did
notmaterializeand theFinanceMinister thenhoped toimplementit from01/04/2016
andtheGovernment tried its best to get the GST Bill passed in parliament. But it was struck
in Upper-House after getting passed in Lower-House. Now, the Bill awaits its passing in
Upper House.
Inprinciple,GSTisthesameastheVATalreadyadoptedbythestatesbutwithawiderbase.While the
VAT – which replaced the sales tax - was imposed only on goods, the GST will be aVAT on
goods and services. In the current tax regime, states tax sale of goods but not services.The

13
Centre taxes manufacturing and services but not wholesale/retail trade. The GST is
expectedto usher in a uniform tax regime across India through an expansion of the base of
each into theother’sterritory.

This is why a constitutional amendment was necessary. As per the GST bill the Centre
willadminister Central GST (CGST) and the States administer State GST (SGST).
Compliance willbe monitored independentlyat the two levels. The rates of both CGST and
SGST will be fixedby the GST Council, whose members will be State Finance/Revenue
Ministers and the Chairmanwill be the Union Finance Minister. Once the rates are set by the
GST Council, individual stateswill losetheir rightto tax commoditiesattherates they want.

The GST is expected to change the whole scenario of current Indirect Tax. GST will merge
allIndirectTaxesunderanumbrellaandwillhelpincreationofsmoothmarket.ExpertssaythatGSTw
illhelpineconomicgrowthofthecountry.ItisestimatedthatGSTwillhelpincreationof single,
uniform market that will benefit both corporate sector and the Indian economy.
BoththeStateandtheCentralGovernmentwilllevyGSTonalmostallgoodsandservicesproducedin
India or imported into the country. Direct taxes, such as income tax, corporate tax and
capitalgainstax willnotbeaffectedby GST.

SalientFeaturesoftheProposedGSTModel

Followingarethesalientfeatures ofGSTModel:

1) The GST shall have two components: one levied by the Centre (hereinafter referred to
asCentral GST), and the other levied by the States (hereinafter referred to as State
GST).Ratesfor Central GST and StateGST wouldbe
prescribedappropriately,reflectingreveue considerationsand acceptability.

2) The Central GST and the State GST are to be paid to the accounts of the Centre and
theStatesseparately

3) The Central GST and the State GST would be applicable to all transactions of goods
andservices made for a consideration except exempted goods and services, goods which
areoutside thepurviewof GST.

4) Since the Central GST and the State GST are to be treated separately; taxes paid
againsttheCentralGSTshallbeallowedtobetakenasinputtaxcredit(ITC)fortheCentralGST

14
 and could be utilized only against the payment of Central GST. The same principlewill
beapplicablefor theStateGST.

5) The administration of Central GST to the Centre and for State GST to the States would
begiven.

6) To the extent feasible, uniform procedure for collection of both central GST and the
StateGST would be prescribed in the respective legislation for the Central GST and the
StateGST.

7) The tax payer would need to submit periodical returns, in common format42
IntroducingGST and Its Impact on Indian Economy as far as possible to both the Central
GSTauthorityand to the concernedStateGSTauthorities.

8) Each tax payer would be allotted a PAN-Linked taxpayer Identification number with
atotal of 13/15 digits. This would bring the GST PAN-Linked system in line with
theprevailingPAN-
BasedsystemforIncomeTax,facilitatingexchangeandtaxpayercompliance.

Dual GST: Both Centre and States will simultaneously levy GST across the value chain. Tax
willbe levied on every supply of goods and services. Centre would levy and collect Central
Goodsand Services Tax (CGST), and States would levy and collect the State Goods and
Services Tax(SGST) on alltransactionswithin a State.

In India, at present there are various forms of taxes on product and services such as value-
addedtax, excise duty, service tax, and sales tax levied on the manufacture, sale and
consumption ofgoods and services in the country. In one or the other way, it is
creatingcascading impact oftaxes i.e. tax on tax on production and distribution cost of goods
and services. There is a need toexclude cascading effects of taxes, which in turn will
significantly improve the competitivenessof original goods and services that impacts the
GDP growth. Cascading tax revenues havedifferential impacts on firms in the economy with
relatively high burden on those not getting fulloffsets. This analysis can be extended to
international competitiveness of the adversely affectedsectorsof productionintheeconomy.

NewArticle366(12A)oftheIndianConstitutiondefinesGoodsandServicesTax(GST)tomeanany
tax on supply of goods or services or both except taxes on the supply of the alcoholic

15
liquorforhumanconsumption.

GST is a consumption based tax/levy. It is based on the “Destination principle.” GST is

appliedon goods and services at the place where final/actual consumption happens. As we
know, GST isa tax which is passed till last stage; we have multiple indirect taxes which will
be added to finalcost, GST helps to streamline all those taxes and reduce the amount of tax,
eliminates doublecharging in thesystem.

ImportanceofGST

Presently,theConstitutionempowerstheCentralGovernmenttolevyexcisedutyonmanufacturing
andservicetaxonthesupplyofservices.Further,itempowerstheStateGovernments to levy sales
tax or value added tax (VAT) on the sale of goods. This exclusivedivision of fiscal powers
has led to a multiplicity of indirect taxes in the country. In addition,central sales tax (CST) is
levied on inter-State sale of goods by the Central Government, butcollected and retained by
the exporting States. Further, many States levy an entry tax on the entryofgoods in
localareas.

a) This multiplicity of taxes at the State and Central levels has resulted in a complex
indirecttax structure in the country that is ridden with hidden costs for the trade and

16
 industry.Firstly, there is no uniformity of tax rates and structure across States. Secondly,
there iscascading of taxes due to ‘tax on tax’. No credit of excise duty and service tax
paid at thestage of manufacture is available to the traders while paying the State level
sales tax orVAT,andvice-
versa.Further,nocreditofStatetaxespaidinoneStatecanbeavailedinother States. Hence, the
prices of goods and services get artificially inflated to the extentofthis‘tax on tax’.

b) The introduction of GST would mark a clear departure from the scheme of distribution
offiscalpowersenvisagedintheConstitution.TheproposeddualGSTenvisagestaxationof the
same taxable event, i.e., supply of goods and services, simultaneously by both theCentre
and the States. Therefore, both Centre and States will be empowered to levy GSTacross
the value chain from the stage of manufacture to consumption. The credit of GSTpaid on
inputs at every stage of value addition would be available for the discharge ofGST
liability on the output, thereby ensuring GST is charged only on the component
ofvalueaddition at eachstage. Thiswould ensure that there isno ‘taxon tax’ in thecountry.

c) GST will simplify and harmonize the indirect tax regime in the country. It is expected
toreduce cost of production and inflation in the economy, thereby making the Indian
tradeand industry more competitive, domestically as well as internationally. It is also
expectedthat introduction of GST will foster a common or seamless Indian market and
contributesignificantly to thegrowth of theeconomy.

ImpactofGST

The major impact of introducing GST in India is the transformation in the fiscal structure of
theIndian federal setup. The fiscal right of the states and center to deal with goods and
servicesindependently will be taken away and both the Governments have to depend on each
other’s formanaging the so called goods and services tax in future. This is a very hard blow
to the freedomof participating governments in the federal system. The states that have a total
liberty now todecide about VAT rate on goods, VAT exemptions etc, will lose that right and
have to participatein decision making and bargain. States’ independent and individual right
will be lost and theyhave to act as a whole; which means compromise amongst themselves
and depend on the mercyof others The industry and business fraternity, tax experts and
economists and consumer bodiesand government are of the opinion that the replacement of
Excise, VAT and Service Tax by GSTwouldleadto a number of benefitstoallthestakeholders.

17
Theperceivedbenefits are–

a. GSTwould eliminate to alarge extent,the multiplicityof administrativemechanismsandtax

rates across differentstates.

b. Itwillreducecomplexityintaxandincreasecompliance.

c. Itremovesmanyofthecascadingeffectsofindirecttaxation.

d. Itwillremovethedocumentaryhassles,therebysaveshugeadministrativeexpensesandreduces
litigations.

e. Itspositiveimpactonretailasawholewillmakesupplychainmorecosteffective.

f. It is expected to address most of the complex issues in taxation like software,

intangibles,composite contractsetc.andbringsmoreclarityinthelevy.

g. It is expected to increase profitability of corporates and also increase accountability

andtransparency.

h. Simplicity and uniformity in indirect taxation helps the industries in proper planning
andimplementationoftheirprojectsandmakingIndianproductscompetitiveandstrengthening
theeconomy.

i. Its nature of incremental and transparent levy leads to reduction in generation of

blackmoney and lowers corruption.

ImpactofGSTonIndianEconomy:

Like every coin has two sides; even GST will probably have its own Positives and
negativeimpacts:

PositiveAspectsofGST:

Implementation of a single National GST will have major beneficial impact on all stake
holders.The key highlightof such impactis given below:

Eliminatescascadingeffect &barrierfreetaxstructure:

18
GST will eliminate cascading [tax on tax/ compounding tax] impact on the production
anddistributioncost of goodsand services. Thisreduced cost of goodsand serviceleading
toacceleratedGDPgrowth.GSTwithouttaxbarrierswillleadstoeconomiesofscaleinmanufacturin
g industry andreducesthesupplychaincost.

Expected toreducetheproductioncost:

GST is expected to reduce the production cost by 15% to 20% in many of the products in
viewoffull inputtaxcredit whichwillhavefavorable impact on the pricesof product.

Expected toincreasethetaxrevenue:

GST will widen the tax base and improve the tax compliance higher tax GDP ratio. The
Tax:GDP ratio is expected to increase by 2% as per FRBM report. This works out to rupees
70,000 to80000croresof additional annualrevenue tothecentral and state governments.

Leadstosustainablegrowthintheeconomy:

GST will remove the tax distortions from the economy. This will lead to sustainable
highergrowthbasedoncompetitivestrengthofthecountry.Simpletaxsystemwillattractmoreprodu
ctive investmentfor growth.

Will leadtooptimizationandcomparativecostadvantage:

GST will eliminate the Inter State tax by which it will leads to optimization of physical
facilitiesto the extent of full capacity. If the manufacturing is done at full capacity industry
will bebenefitedby comparativecostadvantage.

IncreaseintheGDPandstandardofliving:

Since it is expected that with the implementation of GST the price level will reduced in
theeconomy, it will results in increase in the consumption level and growth in GDP of the
economy.AccordingtostudybyNCAER(NationalCouncilforAppliedEconomicsandResearch)c
omplete implementationof GSTcould liftGDPgrowthby 0.9-1.7%.

Positiveeffects onexportandBOPlevel

In proposed GST the exporter will get the full tax credit, the export units will be able to
quotebetter price for their products and services in comparison with present scenario.

19
Increased exportwill ultimatelyhave positiveeffectontheBOP ofthecountry.

LeadstoUniquepriceandremovesinequalities betweenthemarkets

As GST will leads to imposition of same tax rate on the goods and services everywhere in
thecountry and by implementing same tax rate it will removes the inequalities between the
marketwhich wecanseeninthe marketat presentbecauseofthe tax rate differentials.

Will leadtoreducedchancefortaxevasion:

Since the proposed GST will charges full tax on the each and every transfer, it’s difficult for
thefirms to evade tax from the payment. E.g.: e-commerce firms can’t evade tax by
operatingbusinessfromthe placewheretax rates arecomparativelyless.

Leadstocentralizedwherehousingformanufacturers:

In thepresent taxsystem ifthe dealerand theware house arefrom different states,then

thedealerneedstopayaCentralSalesTaxofabout2%.Thiswillincreasesthepriceofthecommodity.
Thus companies use to setup a warehouse in each state. In GST as the CST
getseliminated,thecentralizedwhere housing canbeavailedbythemanufacturers.

NegativeAspectsofGST:

TheproposedGSTmayleadtofollowingnegativeimpactonthestakeholders:

Negatively affectthepricelevelofessentialgoodsandservices:

The proposed GST may lead to increase the price of essential products and services which
arepresently exemptedfromthetaxation.

Negativeeffectontherealestateindustry:

As per the study undertaken by the Curtin University of Technology, Perth in 2000, GST
wouldnegatively impact the real estate market as it would add up to 8% to the cost of new
homes andreduce demandby about12%.

Negativeeffectonworkingcapital:

As the firms are suppose to make the payment of the tax on every transfer the

20
companiesworkingcapitalrequirementwill shootsup byproportional tothepurchase ofinputsfor
thevalue addition.

Emergence oftransferpricingissues:

As the GST considers all the transaction for taxation purpose, this procedure will increases
theprice of the transfer fromonedepartmentto another for furtherprocess.

ImpactofGSTonSectors:

ITsector:

Today, most IT service providers have a multi-location presence with the preferred mode
ofservicetaxcompliancebeingonacentralizedbasisfromasinglelocationandITserviceprovider
also enjoys the input service credits as well as enjoys the refunds. But under GST,service
provider may be required to pay State GST or Central GST or Integrated and GST
acrossmultiple states,whichis notclear yet.

E-Commerce:

Supply chain decisions are vital for e-commerce industry. With the implementation of GST
itwill resolve the supply chain issues, as the shipment and returns across the country will be
donemore efficiently and with lesser paper work. As the tax standardized across all the state
boarders,companies will be able to execute logistics strategies in a better way. In turn, this
all will benefitwith quicker deliverablesand make entryeasyfor the new entrants.

Tourism,HospitalityandRestaurant:

Presently,theratesintheseindustriesarehigherduetoexistingmultipletaxes.Withtheimplementati
on of RNR (Revenue Neutrality Rate) which is more than the present tax rate, thiswould
definitely discourage tourists and users of services and adversely affects the growth ofsector.

Transportsector:

GST is a positive for transportation sector in two ways, as it reduces the logistics cost
andincreasestheefficiencyboth within Indiaand exports.

21
Land,RealEstate,Renting:

Currently, real estate’s are taxed in the form of stamp duty and rental transactions are
coveredunderservicetax.Constructionactivitiesandworkscontractsareliabletoservicetax.Sothis
sector is currently under multiple tax burdens. As of now, it is not clear whether real
estate/landactivities are covered underGST netornot asthisisacashcowforbothstate and
central.

TobaccoProducts:

As per the provisions of constitution (115th amendment), states can impose only VAT
andcentralcanimposebothVATandexciseduty(StateshavemadearequesttoimposebothVatand
state excise). Tobacco manufacturing companies presently pay VAT of about 25 percent
plusexcise duty. It is feared that there products may be taxed at about 40 percent in GST
regime,which is definitelyahugetax burden.

The impactofGSTisprofoundandaffectsdifferentareasoftheeconomydifferently.Depending
upon the sector you work in, GST has its own advantages and disadvantages. In
thelongrun,wearelooking atlower inventorycoststhat will benefit the economy onthewhole.

GSTandIndianEconomy

GSTandAgriculture

Through a comprehensive and wider coverage of input and service taxes setoff, subsuming
ofseveral Central and State taxes in the GST and phasing out of CST, it is expected that the
GSTcould increase the prices of agricultural produce between 0.61 and 1.18 per cent and this
wouldbe aboonto millionsoffarmersinIndia (ThirteenthFinanceCommission,2009).

GSTandManufacturingIndustry

The incidence of the present multistage taxation increases the manufacturing cost of most of
theproductionunits in India. But a flawless GST can help this sector to reduce their cost to
theextent of almost 50 per cent. This will help them to compete with their counterparts in the
west.“Evena two percent reductionin productioncost will increase profits by over 20
percent,givingheadroomforreducingpricesandbenefittingend-users”

22
(Kelkar,Vijay,2009).Itisestimated that the implementation of GST would reduce the overall
prices of all manufacturingsectorsbetween 1.22and 2.53per cent(Thirteenth Finance
Commission,2009).

GSTandMSME

TheexistingthresholdofgoodsunderStateVATisRs.5lakhforamajorityofbiggerStatesand a
lower threshold for North Eastern States and Special Category States. But as per theproposed
GST enterprises above the turnover threshold Rs. 10 lakh both for goods and serviceswill
have to be registered. Again, keeping in view the interest of micro, small and
mediumenterprises and to avoid dual control, the States consider that the threshold for
Central GST
forgoodsmaybekeptatRs.1.5croreandthethresholdforservicesshouldalsobeappropriatelyhigh(E
mpoweredCommitteeofFinanceMinisters,2009).Thisincreaseinthresholdwilladequatelyprotec
tthe interestsofsmalltradersandindustries.

GSTandHousing

At present, the value of a constructed property form part of stamp duty on land and
otherindirect taxes on inputs. On registration of the property, stamp duty is payable on the
entire costincludingtheembeddedtaxes.Thereisnomechanismforcompleteoff-
setofthesetaxes.Thisresults in an increase in the overall cost of the property. The GST
provides for including withinits scope the transactions in real estate. Therefore, for a
registered real estate builder, all taxes oninputs (including that on land) will be off-set
against the tax payable on the constructed property.This willreduce
costofhousingtotheextentofembeddedtaxes andhencewill benefitthepoor.

GSTandPovertyReduction

At present, primary food articles like rice and wheat are liable to tax by many States either
byway of purchase tax or sales tax at a lower rate. But under the GST, all food items covered
underthe public distribution system including rice and wheat are proposed to be exempted.
As a resultprimary food articles like rice and wheat would be exempted from GST. Since
expenditure onfood constitutes a large proportion of the total consumption expenditure of the
poor, the GST isdesigned as a poverty reduction initiative. Like food, basic health and
education services are alsointended to be fully exempted. In any case, as at present, these

23
services will continue to beexempted from tax and therefore no additional burden will arise
on account of the switchover toGST(ThirteenthFinanceCommission (2009).

GSTandEmployment

It is seen that the implementation of GST would result in increased income and output in
varioussectors of the economy. On account of this increase in higher growth, there will be
large
scaleemploymentopportunitiesinvariousareasliketheskilled,semiskilledandunskilledcategorie
s.

GSTandFactorsofProduction

It is also estimated that the implementation of a flawless GST in India would result in
efficientallocation of factors of production thus leading to gain in factors of production, i.e.
land, labourand capital. The gains in real returns to land range between 0.42 and 0.82 per
cent. Wage
rategainsvarybetween0.68and1.33percent.Therealreturnstocapitalwouldgainintherangeof0.37
and0.74percent(ThirteenthFinanceCommission,2009)

GSTandPriceLevel

Though there is an allegation that GST is a regressive tax as it minimizes the number of tax
ratestoevenasingle(dual)rate,thesubsumingofmajorCentralandStatetaxesinGST,continuousch
ain of set-off of input goods and services and phasing out of CST the commitment of taxes
ongoods would come down under GST. It is anticipated that, other things remaining the
same,
thiswouldencouragemanufacturersanddistributorstoreducethepricesoftheirproduceandultimat
ely benefit the consumers. Hence, a ‘flawless’ GST would be viewed as pro-poor and
notregressive.

GSTandEXIMTrade

At present export of taxes to other countries is sought to be eliminated through the

mechanismsof duty draw back on the basis of estimated incidence of embedded taxes. By
considering itsweakness the GST requires that exports from the taxing jurisdiction would be
tax free andimports into the jurisdiction would be taxed at the same rate as products

24
produced and consumedwithinthejurisdiction.Consequently,bothexport-
orientedindustriesandimportsubstitutingindustries would become internationally more
competitive. As a result, while exports can beexpected to register an increase, imports are
likely to decrease. The gains in exports are expectedto vary between 3.2 and 6.3 per cent and
imports are expected to gain somewhere between 2.4and 4.7 per cent
(ThirteenthFinanceCommission,2009).

GSTandGDP

The implementation of a ‘flawless’ GST across goods and services is expected to induce
India’sGross Domestic Product (here after referred to as ‘GDP’) somewhere within a range
of 0.9 to 1.7per cent. Again, these additional gains in GDP would be earned during ever year
over and abovethe growth inGDP whichwould havebeenachieved otherwise.

GSTandGovernmentRevenue

Since all goods and services would be under the purview of GST, it is expected that the
numberof exemptions would reduce very much. Again, the tendency of tax evasion by
producers anddistributorswill belowastothe single(ordual) and lowrate oftax proposedunder
GST.

WhatareMicro,SmallandMediumEnterprises

InaccordancewiththeprovisionofMicro,Small&MediumEnterprisesDevelopment(MSMED)
Act, 2006 the Micro, Small and Medium Enterprises (MSME) are classified in twoClasses:

ManufacturingEnterprises-

The enterprises engaged in the manufacture or production of goods pertaining to any

industryspecified in the first schedule to the industries (Development and regulation) Act,
1951) oremploying plant and machinery in the process of value addition to the final product
having adistinctnameorcharacteroruse.TheManufacturingEnterpriseare
definedintermsofinvestmentin Plant& Machinery.

ServiceEnterprises:-

The enterprises engaged in providing or rendering of services and are defined in terms of

25
REVIEW OF LITERATURE

26
 REVIEW OF LITERATURE

Dr. R. Vasant hagopal (2011)2studied,“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 Kirana Store. 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.

Ehtisham Ahmed and SatyaPoddar(2009)3 studied, “Goods and Service Tax

Reforms and Intergovernmental Consideration in India”and found that GST

introduction will provide simpler and transparent tax system with increase in output and
productivity of economy in India. But the benefits of GST are critically dependent on rational
design of GST.

Nitin Kumar (2014)6 studied, “Goods and Service Tax- A Way Forward”andconcluded
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.

Monika Sehrawat, and UpasanaDhanda, “GST In India: A Key Tax

Reform” International Journal of Research – Granthaalayah: found that due to

dissilientenvironment of Kirana Store, it is demand of time to implement GST. Consumption
and productions of goods and services is undoubtedly increasing and because of
multiplicityof taxes in current tax regime administration complexities and compliance cost is
also accelerating. Thus, a simplify, user - friendly and transparent tax system is required
which can be fulfilledby implementation ofGST.

NishitaGupta Assistant Professor ,UNIVERSITY OF DELHI “Goods And Services

Tax: IT’S ImpactOn KiranaStore:Concluded that tax policiesplay an important role on the

27
economy through their impact on both efficiency and equity. A good tax system should keep
in view issues ofincome distribution and, at the same time, also endeavourto generate tax
revenues to support government expenditure on public services and infrastructure
development. Cascading tax revenues have differential impacts on firms in the economy with
relatively high burden on those not getting full offsets. This results in loss of income and
welfare of the affectedeconomy.

Business Line July3 2016- „Transport Corporation of India: En route to growth‟ The
passage of GST bill, when it happens, can spur large warehouse related investors by
logistics providers to derive cost savings from route and warehouse optimization. The joint
study report of Transport

Corporation of India and India Institute of Management, Calcutta on operational efficiency

of freight transportation by road suggests that government shall resolve issues regarding
GST with varies stakeholders to reduce the stoppage delays that take place for
documentation check and tax collections.

Girish Gang-2014- Basic concepts and features of GST in India- International Journal Of
Scientific Research And Management- vol. 2 ISSUE 2 PP 542-549Introduction of GST
would make Indianproducts competitive in the domestic and internationalmarkets. This
would instantly spar economic growth.

Decan Chronicle May 15, 2016

The ambitious GST would help the transport sector in improving its efficiency besides
reducing the logistics costs. GST will help the country in two areas- logistics cost will come
down and efficiency will increase both within India and exports.

Rathod M (2017) in his paper “An Overview of Goods and Service Tax (GST) In India”
concludes that GST will be a step towards a developed India benefiting too many parties and
entire nation.

Nitin Kumar (2014) mentioned in his research paper that implementation of GST will try to
remove all the shortcomings of present tax structure in India in his research paper “Goods
and Service Tax in India-A Way Forward”.

Monika Sehrawat and UpasanaDhanda (2015) in “GST in India: A key tax reform”

28
concluded that introduction of GST will undoubtedly boost the Indian economy but focus
should be given on rational design of GST model and timely implementation.

KiranAjeev, Somasekharan T M (2019) A STUDY ON THE IMPACT OF GST IN

FMCG SECTOR: A CONSUMER REVIEW FMCG sector is the major taxation
contributor both direct and indirect in the economy. According to this study, the research
design is of descriptive in nature. With the implementation of GST, FMCG sector had really
changed. GST alters production-based taxation system to a consumption-based taxation
system. Consumer buying behaviour is the sum total of a consumer's attitudes, preferences,
intentions, and decisions regarding the consumer's behaviour in the market when a product or
service is purchased.

SongaraManoj (2019) the aim of this research paper is to convince the readers of the
significant impact of GST on various sectors. There is full of chaos and confusion since the
introduction of GST. GST would serve as a tool for the economic integration of India. The
most important aim of GST is to transform India into a unified market by knocking down the
present fiscal barriers existing among different states. From here on, there would be only one
tax in India at the national level fully monitored by the central government.

G. Garg, 6 (2014) analysed the impact of GST on Indian tax scenario. He tried to highlight
the objectives of the proposed GST plan along with the possible challenges and opportunity
that GST brings. He concluded that GST is the most logical steps towards the comprehensive
indirect tax reform in our country since independence. GST is leviable on all supply of goods
and provision of services as well combination thereof. All sectors of economy i.e the
industry, business including Govt. departments and service sector shall have to bear impact of
GST. All sections of economy viz., big, medium, small scale units, intermediaries, importers,
exporters, traders, professionals and consumers shall be directly affected by GST. One of the
biggest taxation reforms in India – the Goods and Service Tax (GST) is all set to integrate
State economies and boost overall growth. GST will create a single, unified Indian market to
make the economy stronger. Experts say that GST is likely to improve tax collections and
Boost India’s economic development by breaking tax barriers between States and integrating
India through a uniform tax rate. Under GST, the taxation burden will be divided equitably
between manufacturing and services, through a lower tax rate by increasing the tax base and
minimizing exemptions.

29
Pinki et al., 7 (2014) the authors in the paper have explored the concept of GST, the need to
introduce it in India, the hurdles in introducing it in India and suggestions to overcome the
same. The paper also discusses the benefits of introducing GST at the earliest. The authors
have discussed the options to introduce the dual GST in India which could be Concurrent
Dual GST, National GST or State GST. Under the concurrent dual GST the better option was
the one where GST is applied on both goods and services. The other option explored was
whether the Central GST would be on goods and services but state GST would be only on
goods since state to collect GST in services is difficult to determine. This option also
recommended one single return with both CGST and SGST details and PAN based
registration. The authors have also discussed the constitutional amendments required if GST
is ever to be introduced since without the amendment taxing both goods and services using
one tax is not possible. The paper also highlights the issues in the credit mechanism in the
CGST/SGST model since it is difficult to practically implement in terms of determination of
place where service is taxable. The other challenges to introduction of GST in India
highlighted are the availability of strong IT network, infrastructure and programmes,
agreement on other provisions like basic threshold, exemption to goods/services, rates to be
applied, etc.

Rashid et al., 8 (2014) in this paper the authors study impact of GST in Malaysia since it is
proposed to introduce GST in Malaysia in 2015. The GST is being introduced mainly so as to
increase the revenue collections of the government and reduce the deficit. The authors have
studied the impact of the introduction of this GST and its relation to certain indicators like the
consumer price index and the structural balance. For this the relation between these factors
and the GST are studied for Singapore, Thailand and Indonesia so that whilst implementing
GST in Malaysia the administration can adopt the best practice. The paper recommends
transparency in implementing GST and review of the rates/base of GST after 5 years and
rectification based on the 5 year experience.

N. Kumar, 9 (2014) concluded that GST will help in eradicating economic distortion by
current Indian tax system and is expected to encourage unbiased tax structures which will be
indifferent to geo locations.

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,

30
subsuming of several taxes in the GST and phasing out of CST.

SaravananVenkadasalam, 10 (2014) has analysed the post effect of the goods and service tax
(GST) on the national growth on ASEAN States using Least Squares Dummy Variable
Model (LSDVM) in his research paper. He stated that seven of the ten ASEAN nations are
already implementing the GST. He also suggested that the household final consumption
expenditure and general government consumption expenditure are positively significantly
related to the gross domestic product as required and support the economic theories. But the
effect of the post GST differs in countries.

Shaik et al , 11(2015) studied the concept and impact of GST on Indian economy. The study
also focused on some aspects of GST models. This study also covered the advantages and
working of GST. The study concluded that GST in Indian framework will lead to commercial
benefits which were untouched by VAT system and would essentially leads to economic
development.

Sehrawat&Dhanda, 12 (2015) conducted a study focused on advantages and challenges of

GST faced by India in execution. They concluded that a simplified and transparent tax system
was the need of Indian economy. Pointing out the various advantages they said that GST will
provide India a world class tax structure and a seamless tax system but it will depend upon
effectiveness of its implementation.

Khurana& Sharma, 13 (2016) conducted a study with a view to explore various benefits and
opportunities of GST by throwing a light on its’ background, objectives of proposed GST
plan and its impact on Indian tax scenario. They concluded that GST implementation will
definitely benefit producers and consumers although its’ implementation requires
concentrated efforts of all stake holders especially central and state government.

Munde&chavan , 14 (2016) conducted a study to discuss the pros and cons of GST and
accordingly make suggestions to minimise loopholes and make it more effective. They
concluded that if the probable loopholes are dealt effectively, tax payers will accept the
change brought upon and if procedures in GST proves to be simple and assures the
involvement of interest of all stakeholders then definitely it will lead to economic
development and rationalization of prices.

31
Kumar, R., 15 (2016), in his paper ‘Comparison between Goods and Services Tax and
Current Taxation System – A Brief Study’ differentiate the GST framework and previous
taxation system and highlighted the impact of GST on Indian economy.

Khurana, A. And Sharma, A., 16 (2016), in their paper ‘Goods and Services Tax in India – A
Positive Reform for Indirect Tax’ highlighted the objectives of GST and reforms in indirect
taxation system in India. And conclude after implementation of GST, manufacturer,
wholesaler and retailer can be easily recovered input taxes in form of tax credit.

Shefalidani, 17 (2016) stated impact of GST on Indian economy in the study in which some
benefits of GST such as one nation one tax, free from cascading effect, increase consumption
due to cascading effect, transparency and GDP growth are studied. Petroleum products, real
estate, and liquor are free from GST.

Dani, S., 18 (2016) in her research study revealed that GST being a system replacing all
indirect taxes might hamper the progress of the country as the attempt to implement it is not
being made whole heartedly.

Lourdunathan F and Xavier P., 19 (2016) studied inexplicit opinion of manufacturers, traders
and society. It also included challenges and prospectus of GST in future in India. Centre and
state level taxes also discussed in this paper. Various states are shown in which GST is
followed for growth of economy. Some issues such demonetisation issue, inappropriate time,
polictical issues, rate for manufacturers and traders, impact on working and cash flow and
implementation in unorganised sectors became some main issues in path of GST.

Lourdunathan& Xavier, 20 (2017) conducted a study based on exploratory research technique

on the basis of past literature to study the opinions of manufacturers, traders, society etc.
about the GST and the challenges and prospects of introducing GST in India. They concluded
that no doubt GST stands with one tax one nation slogan and will provide relief to producers
as well as consumers. Its efficient implementation will lead to resource and revenue gains.
They also said that seamless credit and return processing without human intervention requires
educating, training, and conducting workshops on GST on the part of government.

Mujalde, S. and Vani, A., 21 (2017), in their research paper on ‘Goods and Services Tax
(GST) and its outcomes in India’ focused on the features of GST, impact of GST on Indian
economy and discussed possible advantages and challenges of GST. Nath, B., 22 (2017), in

32
his paper on ‘Goods and Services Tax: A Mile Stone in Indian Economy’ discussed benefit
and impact of GST on Indian economy and also conclude that GST has a positive impact on
various sectors and industries.

NEED OF THE STUDY

33
 NEED OF THE STUDY

 Present tax system allows is diversity of taxes, the introduction of GST is likely to
unique it.

 Many areas of Services which are untaxed. After the introduction of GST they will
also get covered.

 GST may help to avoid confusions caused by present complex tax structure and will
help in development of a common national market.

 Excise, VAT, CST have the cascading effects of taxes. Therefore, there will be end up
in paying tax on tax. GST will replace existing all present taxes.

 GST will lead to credit availability on throughway purchases and reduction in

obedience requirements.

 Applying of GST will do more than simply redistribute the tax burden from one sector
or Group in the economy to another.

 Achieves, uniformity of taxes across the territory, regardless of place of manufacture

or distribution.

 Provides greater certainty and transparency of taxes.

 Ensures tax compliance across the country.

 GST will avoid double taxation to some extent.

34
OBJECTIVES OF THE STUDY

35
 OBJECTIVES OF THE STUDY

 To study the need of Goods and Services Tax (GST)

 To study the impact of Goods and Services Tax (GST) on Indian economy.
 To study the conceptual framework of GST in Indian Context
 To study Impact and Challenges of GST on various constituents Indian Economy.
 To suggest measures to deal with adverse impact on various stakeholders
 To find out the positive and negative impact of GST on business.
 To analyse the impact of changes in the tax rates in goods on business.

36
HYPOTHESIS

37
 HYPOTHESIS

H0 :- GST had not made a considerable impact on the profitability of the Indian
Economy.
H1 :- GST had made a considerable impact on the profitability of the Indian
Economy.

38
LIMITATIONS OF THE STUDY

39
 LIMITATIONS OF THE STUDY

 Study is largely based on secondary published information.

 Insufficient time available for the study and submission of the report.
 It depends on past information.
 Only the last 5 years data is considered for the study
 Only limited sample size had been considered for the study and therefore, the
conclusions drawn based on this may not be a reflection of the entire industry.

40
RESEARCH METHODOLOGY

41
 RESEARCH METHODOLOGY

Generally research is considered as an endeavour to arrive at the answer to intellectual and

practical problem through the application of scientific methods to the knowledge universe. It
is movement from known to unknown. Research is essentially a logical and an organized
enquiry seeking facts through objective verifiable methods in order to discover the relation
among them and to refer from the board principles or laws. It is really a method of critical
thinking.

Research may be defined as a systematic and objective analysis and recording of controlled
observations that may lead to the development of generalization of principles or theories
resulting in predicting and possibly ultimate control of events.

Methodology is often used in a narrow sense to refer to methods, technology or tools

employed for the collection data as well as it’s processing. This is also used sometimes to
designate data collection to arrive at the conclusion. Infects, it describes that what should
have been done. It provides answers to some of the major questions while search like what
must be done, how it will be employed, how sources of data will be analysed to arrive at the
conclusion. For systematic research scientific approach is necessary. It is therefore essential
to follow systematic methodology to arrive at a proper conclusion.

The procedures involved in the concept of research methodology are:-

1) Selection of subject.

2) Selection of project title.

3) Selection of time period.

4) Collection of data.

5) Reliability of data.

6) Analysis of data.

7) Reporting.

42
 METHODOLOGY OF ANALYSIS:-

Data which has been collected through various sources has to proceed and analysed the
accepted relevant scientific method are used for analysed processing is done by different
graphs, which clearly show the finding and half us to understand thing is more better way
different table and comparative chart also used for analysed and the most important ways was
case study and illustration.

1. ANALYSIS: The data collected has to process and analysis is done in accordance with
the acceptable relevant scientific method processing of the data covers editing loading
classification.
2. EDITING: Editing is a routine task it is process of examining collected data especially
in survey to detest and animate error editing endures completeness accuracy and
uniformity.
3. CODING: It is process of assign numerical or other symbol to symbol to answer so that
response can be part in a limited number of categories.
4. CLASSIFICATION: The large volume of data collected for a search study has to be
reduced in homogenous gropes for getting a meaningful relationship. This is known as
classification of data. It condense data in such way that similarities and dissimilarities
can easily be apprehended, so as to facilities comparison. Classification of data
collected can be categorized as by geographical grouping chronological grouping
qualitative and quantitative groupings.
5. TABULATION: It is a process of summarizing row data and displaying the same in
concept from for further analysis. The tabulation can be simplified in rows and
columns; it conserves space and minimizes exploratory and descriptive statements.
Tabulation facilities the process of comparison. It assists in various statistical
computations. It simplifies complex data, and gives identify to data and reveals pattern.
6. GRAPHIC PRESENTATION: Graphic presentation of statistical data gives a pictorial
effect. It enables one to present data in simple, clear and effective manner. It shows
what is happening and what is likely to take place just as quickly as the age is capable

43
 of working. A graph is a visual form of presentation. It provides an attractive and
impressive view. It also provides easy comparison of two or more phenomena.

RESEARCH DESIGN

Research design is a framework or the blue print for conducting the research project.
Research design is the arrangement of conditions for collection and analysis of data in
manner that aims to combine relevance to the research purpose with economy in procedure. It
includes an outline of what the researcher will do from writing the hypothesis and its
operational implications to the final analysis of data.

RESEARCH UNIVERSE

The universe consists of all survey elements that qualify for inclusion in the research
study. Definition of the research universe for a particular study is set by the research
question, which specifies who or what is of interest. The universe may be individuals, groups
of people, organizations, or even objects. Research about recruitment and selection process at
tech Mahindra Nagpur .would has a universe comprising of all employees. If the research was
about hiring of candidates, the research would include all recruitment and selection process.
Research universe of my project is identify employee recruitment and selection process at
tech Mahindra because my interested area in IT firm that’s way choose this firm.

44
 DATA COLLECTION

Collection of data refers to purposive gathering of information relevant to the subject matter
under study and the methods used depend mainly on the nature, purpose and scope of the
enquiry to be undertaken, as well as on the availability of resources and time.

The data collection can be grouped under two types:-

 Primary data

 Secondary data

 PRIMARY DATA:- Primary data are those which are collected for the first time.
They are original in character. They are collected by the researcher for the first time
for her own use.

The source of primary data includes:

1. Direct personal investigation

2. Interview

1. DIRECT PERSONAL INVESTIGATION- This implies the situation where the

researcher goes into the field of study in person for the collection of required data.
Also, the investigation of this nature is normally confined to a single locality and
the information gathered is capital in nature.

2. INTERVIEW METHOD- Every interview has got its own balance of

revaluation and has withheld information, an interview can be effective informal

45
 verbal and non-verbal conversation initiated for the specific purpose focus on a
certain planned contained areas.

 SECONDARY DATA- Secondary data are those which have already been collected
by others. When it is not possible to collect data in primary form, the researcher may
take the help of secondary data. They are thus which have already been collected for
serving the objectives other then what the researcher might have in his mind.

The sources of secondary data includes:-

1) Books

2) Websites

3) Journals

1. BOOKS:

A book is a collection of paper or other material with text, pictures, or both written on
them, bound together along one edge, usually with covers. In library and information
science, a book is calling a monograph to distinguish it from serial periodicals such as
magazines journals or newspapers.

2. WEBSITE:

A website may be the work of an individual, a business or other organization and is

typically dedicated to some particular topic or purpose. Any website can content s
hyperlink to any other website, so the distinction between individual sites, as
perceived by the user, may sometimes to blur.

3. JOURNALS:

A journal may publication issued at stated intervals, such as magazines or the record
of the transactions of a society, are often called journals. In academic use, a journals
refers to a serious, scholarly publication, most often peer-reviewed. The purpose of a
journal is to provide a place for the introduction a scrutiny of new research and often a

46
forum for the critique of existing research.

DATA ANALYSIS & INTERPRETATION

47
 DATA ANALYSIS & INTERPRETATION

1) How do you get to know about GST form?

Opinion Percentage
Friends / Family 35%
Mass Media 15%
Online Source 22%
Others 28%

28%
35%

22%
15%

48
2) Do you think all business need to register under GST?

Opinion Percentage
Yes 72%
No 28%

80%

70%

60%

50%

40%
72%
30%

20%
28%
10%

0%
Yes No

From the above graph it is clear that the 72% respondents think that all business need to
register under GST, 28% respondents don’t think that all business need to register under
GST,

49
3) GST is very difficult to understand ?

Opinion Percentage
Yes 35%
No 65%

35%

65%

From the above graph it is clear that as per 35% respondents GST is very difficult to
understand, as per 65% respondents GST is not very difficult to understand

50
4) Do you think GST will burden to people or consumer?

Opinion Percentage
Yes 45%
No 55%

60%

50%

40%

30%
55%
45%
20%

10%

0%
Yes No

From the above graph it is clear that 45% respondents think that GST will burden to people
or consumer, 55% respondents don’t think that GST will burden to people or consumer.

51
5) GST is a very good tax reform for INDIAN ECONOMY ?

Opinion Percentage
Strongly Agree 30%
Agree 15%
Neutral 25%
Disagree 12%
Strongly Disagree 18%

18%

30%

12%

15%

25%

From above graph it is clear that 30% respondents are strongly agree that GST is a very good
tax reform for Indian Economy, 15% respondents are agree that GST is a very good tax
reform for Indian Economy, 25% respondents are disagree that GST is a very good tax
reform for Indian Economy, 12% respondents are agree that GST is a very good tax reform
for Indian Economy, 18% respondents are agree that GST is a very good tax reform for
Indian Economy

6) India is really ready for GST implementation?

52
 Opinion Percentage
Strongly Agree 20%
Agree 10%
Neutral 15%
Disagree 25%
Strongly Disagree 30%

Column1

20%

30%

10%

15%
25%

From above graph it is clear that 30% respondents are strongly agree that India is really
ready for GST implementation, 10% respondents are agree that India is really ready for GST
implementation, 15% respondents are neutral that India is really ready for GST
implementation, 25% respondents are disagree that India is really ready for GST, 30%
respondents are strongly disagree that India is really ready for GST implementation

53
7) GST has increased the tax burden on businessman?

Opinion Percentage
Strongly Agree 30%
Agree 17%
Neutral 23%
Disagree 12%
Strongly Disagree 18%

35%

30%

25%

20%

15% 30%

23%
10%
17% 18%
12%
5%

0%
Strongly Agree Agree Neutral Disagree Strongly Disagree

From above graph it is clear that 30% respondents are strongly agree that GST has increased
the tax burden on businessman, 30% respondents are agree that GST has increased the tax
burden on businessman, 23% respondents are neutral that GST has increased the tax burden
on businessman, 12% respondents are disagree that GST has increased the tax burden on
businessman, 18% respondents are strongly disagree that GST has increased the tax burden
on businessman.

54
8) Do you think implementing GST will cause higher price of goods % services?

Opinion Percentage
Yes 78%
No 22%

90%

80%

70%

60%

50%

40% 78%

30%

20%

10% 22%

0%
Yes No

From above graph it is clear that 78% respondents think implementing GST will cause higher
price of goods % services, 22% respondents don’t think implementing GST will cause higher
price of goods % services.

55
9) Which system is more beneficial to born government as well as people?

Opinion Percentage
Old Pattern of tax 40%
New i.e GST 60%

70%

60%

50%

40%

30% 60%

20% 40%

10%

0%
Old Pattern of tax New i.e GST

From above graph it is clear that as per 40% respondents old pattern of tax system is
more beneficial to born government as well as people, 60% respondents GST system is
more beneficial to born government as well as people,

56
CONCLUSION

CONCLUSION

57
 Tax policies play an important role on the economy as it is the revenue source, it has a
positive impact on both efficiency and equity.
 In view issues of income distribution a good tax system should keep pace with it and at
the same time it should also endeavor to generate tax revenues to support government
outflows on public services and infrastructure development.

 After a thorough analysis of the above literature it can be concluded that GST will
provide relief to producers and consumers by subsuming the several indirect taxes in
India.

 The Study of literature indicates that the implementation of Goods and Services Tax
helps in better utilization of resources and makes the taxation system environment
friendly.

 The taxes for both Centre and States will be collected at the point of sale. Both will be
charged on the manufacturing cost. Individuals will be benefited by this as prices are
likely to go down.

 From the above analysis it is clear that the implementation of GST will have a significant
impact on logistics sector in India.

 If GST is properly implemented, then it will have a double positive impact on the
logistics industry that is logistics costs will come down and logistics efficiency will
increase both within India and exports.

 So the main objective of logistics management, that is customer satisfaction at least

logistics costs, will be achieved with the implementation of GST.

 The GST implementation will also leads to emergence of organized service providers
since taxes will not be added costs for the business.

 In the current scenario the logistics sector is a highly fragmented industry with very few
large organized players.

58
SUGGESTION

SUGGESTION

59
 It is suggested that government should opt plans and policies in this regard for
positive implementation and their result.
 The GST Council should bring the four tire taxes under the net to prevent states
from raising tax rates.
 For the purpose digitization of GST system a proper and efficient network system
has to be established and maintained to manage.
 Special programs may be implemented to familiarize businesses and consumers
with the functioning of GST.
 The unorganized sector would have to shape up and join hands with the organized
players for setting up economies ofscale.
 In a nut shell, the successful implementation of GST could reduce transportation
cycle times, enhance supply chain decisions, lead to consolidation of warehouses
etc. which could help logistics reach its potential in terms of service and growth.
So it will be great boom for the logistics sector which leading to accelerated
economicgrowth.
 GST has the potential to accelerate growth in the logistics industry. However,
itscomplete impact can only be understood after the announcement ofthe draft GST
Law and Rules.
 Nevertheless, GST is still the change the logistics industry is eagerly awaiting as
overall, the positive impact of GST far outweighs the disadvantages for
thisindustry.

60
BIBLOGRAPHY

BIBLOGRAPHY

61
BOOKS

 Monika Sehrawat, and UpasanaDhanda(2015):,“GST In India: A Key Tax Reform”

International Journal of Research – Granthaalayah, Vol. 3, No. 12(2015): 133-141
 The Empowered Committee Of State Finance Ministers(2009), First Discussion Paper
On Goods and Services Tax In India, November 10, 2009.
 Nishita Gupta[Year - 2014], Goods And Service Tax: It’s Impact On Kirana Store,
Volume 5 Issue 3
 JuhiKhan (2016) _ LinkedIn, How can GST impact on Logistics Industryin India
 Jones Lang LaSalle Property Consultants (India) (2015),Indian logistics - Taking
giant leaps forward.

WEBSITES
 www.indiangst.com
 www.slidershare.com

62
ANNEXURE

ANNEXURE

63
 Name
Age
Occupation
Gender

1) How do you get to know about GST form?

 Friends / Family
 Mass Media
 Online Source
 Others
2) Do you think all business need to register under GST?

 Yes
 No
3) GST is very difficult to understand ?

 Yes
 No
4) Do you think GST will burden to people or consumer?

 Yes
 No
5) GST is a very good tax reform for INDIAN ECONOMY ?

 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree

64
6) India is really ready for GST implementation?

 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree
7) GST has increased the tax burden on businessman?

 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree
8) Do you think implementing GST will cause higher price of goods %
services?

 Yes
 No
9) Which system is more beneficial to born government as well as
people?

 Old Pattern of tax

 New i.e GST

65