A PROJECT REPORT ON STUDY OF INVESTMENT

PATTERN OF RETAIL INVESTORS

A PROJECT SUBMITTED TO
UNIVERSITY OF MUMBAI FOR PARTIAL COMPLETION
OFTHE DEGREE OF

MASTER IN COMMERCE

UNDER THE FACULTY OF COMMERCE

BY

GHARGE PRAJAKTA SUNIL RUKMINI

ROLL NO. 23

UNDER THE GUIDANCE OF

DR. LAKSHA AILANI

KERALEEYA SAMAJAM (REGD.)

DOMBIVLI’SMODEL COLLEGE
KHAMBALPADA, THAKURLI EAST

UNIVERSITY OF MUMBAI
MARCH 2022
 INDEX

SR NO. DESPCRIPTION PAGE NO.

1 CERTIFICATE I

2 DECLARATION II

3 ACKNOWLEDGEMENT III

4 INTRODUCTION 1 - 33

5 RESEARCH METHODOLOGY 34 - 42

6 LITERATURE REVIEW 43 - 47

7 DATA ANALYSIS, INTERPRETATION AND 48- 69

PRESENTATION

8 FINDING, SUGGESTION AND CONCLUSION 70 - 73

BIBLIOGRAPHY 74

APPENDIX 75 - 77
 CERTIFICATE

THIS IS TO CERTIFY THAT MISS GHARGE PRAJAKTA SUNIL HAS WORKED AND
DUELY COMPLETED HER PROJECT WORK FOR THE DEGREE OF MASTERS IN
COMMERECE UNDER THE FACULTY OF COMMERCE IN THE SUBJECT OF
ADVANCED ACCOUNTANCY AND HER PROJECT IS ENTITLED “STUDY OF
IMPACT ON GST ON RETAIL BUSINESS” UNDER MY SUPERVISION.

I FURTHER CERTIFY THE NETIRE WORK HAS BEEN DONE BY THE LEARNER
UNDER MY GUIDANCE AND THAT NO PART OF IT HAS BEEN SUBMITTED
PREVIOUSLY FOR ANY DEGREE OR DIPLOMA OF ANY UNIVERSITY.

IT IS HER OWN WORK AND FACTS REPORTED BY HER PERSONAL FEELINGS

AND INVESTIGATION.

DR. LAKSHA AILANI

 DECLARATION

I THE UNDERSIGNED MISS. PRAJAKTA SUNIL GHAERGE HERE BY,

DECLARE THAT THE WORK EMBODIED IN THIS PROJECT WORK
TITLED “A PROJECT REPORT ON IMPACT OF GST ON RETAIL
BUSINESS“, FORMS MY OWN CONTRIBUTION TO THE RESEARCH
WORK CARRIED OUT UNDER THE GUIDANCE OF DR. LAKSHA AILANI
IS A RESULT OF MY OWN RESEARCH WORK AND HAS NOT BEEN
PREVIOUSLY SUBMITTED TO ANY OTHER UNIVERSITY FOR ANY
OTHER DEGREE/DIPLOMA TO THIS OR ANY OTHER UNIVERSITY.

WHEREEVER REFERENCE HASBEEN MADE TO PREVIOUS WORK OF

OTHERS, IT HAS BEEN CLEARLY INDICATE AS SUCH AND INCLUDE
IN THE BIBLIOGRAPHY.

I, HEREBY FURTHER DECLARE THAT ALL INFORMATION OF THIS

DOCUMENT HAS BEEN OBTAINED AND PRESENTED IN
ACCORDANCE WITH ACADAMIC RULES AND ETHICAL CONDUCT.

MS. GHARGE PRAJAKTA SUNIL RUKMINI

MASTER IN COMMERCE

CERTIFIED BY

DR. LAKSHA AILANI

 ACKNOWLEDGEMENT

To list who all have helped me is difficult because they are so numerous and
the depth is so enormous.

I would like to acknowledge the following as being idealistic channels and

fresh Dimensions in the completion of the project.

I take this opportunity to thank the University of Mumbai for giving me

chance to do this project.

I would like to thank my Principal, DR. R.P. BAMBARDEKAR for

providing the necessary facilities required for completion of this project.

I take this opportunity to thank our Coordinator PROF. NIKHIL NAIR,

for his moral support and guidance.

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

DR. LAKSHA AILANI whose guidance and care made the project
successful.

I would like to thank my College library, for having provided various

reference books and magazines related to my project.

Lastly, I would like to thank each and every person who directly or
indirectly helped me in the completion of the project especially my parents and
peers who supported me throughout the project.

GHARGE PRAJAKTA SUNIL

 CHAPTER – I
INTRODUCTION

BACKGROUND OF THE STUDY:

GST also known as the Goods and Services Tax is defined as the giant indirect tax structure designed
to support and enhance the economic growth of a country. More than 150 countries have
implemented GST so far. However, the idea of GST in India was mooted by Vajpayee government in
2000 and the constitutional amendment for the same was passed by the Lok Sabha on 6th May 2015
but is yet to be ratified by the Rajya Sabha. However, there is a huge hue and cry against its
implementation. It would be interesting to understand why this proposed GST regime may hamper
the growth and development of the country.

MEANING

GST is considered to be the India‟s biggest indirect tax reform. It is a multi-stage destination-based
tax levied at each stage of value addition. The main agenda of the GST Bill is to implement a single
tax structure right from the manufacturing stage till the goods or services are delivered to the final
consumer. It is a single tax with full set-off for taxes paid in the earlier value chain. GST subsumes
seventeen indirect taxes and twenty-three cess. This tax reform would make doing business in the
country tax neutral.

In order to make the earlier indirect tax regime operate in a transparent manner, GST was established.
The main purpose for establishing GST was to remove the cascading effect of tax. Secondly, they
intended to remove the indirect taxes levied by the Union and the State.

The Goods and Services Tax (GST) is a vast concept that simplifies the giant tax structure by
supporting and enhancing the economic growth of a country. GST is a comprehensive tax levy on
manufacturing, sale and consumption of goods and services at a national level. The Goods and
Services Tax Bill or GST Bill, also referred to as The Constitution (One Hundred and Twenty-Second
Amendment) Bill, 2014, initiates a Value added Tax to be implemented on a national level in India.
GST will be an indirect tax at all the stages of production to bring about uniformity in the system.

Goods and services are divided into five different tax slabs for collection of tax -0%, 5%, 12%, 18%
and 28%. However, petroleum product, alcoholic drink, and electricity are not
6
taxed under GST and instead are taxed separately by the individual state governments, as per the
previous tax regime. There is a special rate of 0.25% on rough precious and semi-precious stones and
3% on gold. In addition, a cess of 22% or other rates on top of 28% GST applies on few items like
aerated drinks, luxury cars and tobacco products. Pre-GST, the statutory tax rate for most goods was
about 26.5%, Post-GST, most goods are expected to be in the 18% tax range.

The GST was launched at midnight on 1 July 2017 by the President of India, and the
Government of India. The launch was marked by a historic midnight (30 June – 1 July) session of
both the houses of parliament convened at the Central Hall of the Parliament. Though the session was
attended by high-profile guests from the business and the entertainment industry including Ratan
Tata, it was boycotted by the opposition due to the predicted problems that it was bound to lead for
the middle and lower class Indians. The opposition used to call it GABBAR SINGH TAX and leader
of the congress party Rahul Gandhi opposed it as strongly as he could. It is one of the few midnight
sessions that have been held by the parliament - the others being the declaration of India's
independence on 15 August 1947, and the silver and golden jubilees of that occasion. After its launch,
the GST rates have been modified multiple times, the latest being on 22 December 2018, where a
panel of federal and state finance ministers decided to revise GST rates on 28 goods and 53 services.

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

The GST is imposed at variable rates on variable items. The rate of GST is 18% for soaps and 28%
on washing detergents. GST on movie tickets is based on slabs, with 18% GST for tickets that cost
less than Rs.100/- and 28% GST on tickets costing more than Rs.100/- and 28% on commercial
vehicle and private and 5% on readymade clothes. The rate on under- construction property booking
is 12%. Some industries and products were exempted by the

7
 government and remain untaxed under GST, such as dairy products, products of milling
industries, fresh vegetables & fruits, meat products, and other groceries and necessities.

Check posts across the country were abolished ensuring free and fast movement of goods.

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

Most countries with a GST have a single unified GST system, which means that a single tax rate is applied
throughout the country. A country with a unified GST platform merges central taxes (e.g. sales tax, excise
duty tax, and service tax) with state-level taxes (e.g. entertainment tax, entry tax, transfer tax, sin tax, and
luxury tax) and collects them as one single tax. These countries tax virtually everything at a single rate.

Only a handful of countries, such as Canada and Brazil, have a dual GST structure. Compared to a
unified GST economy where tax is collected by the federal government and then distributed to the
states, in a dual system, the federal GST is applied in addition to the state sales tax. In Canada, for
example, the federal government levies a 5% tax and some provinces/states also levy a provincial
state tax (PST), which varies from 7% to 10%. In this case, a consumer‟s receipt will clearly have the
GST and PST rate that was applied to his or her purchase value.

More recently, the GST and PST have been combined in some provinces into a single tax known as
the Harmonized Sales Tax (HST). Prince Edward Island was the first to adopt the HST in 2013,
combining its federal and provincial sales taxes into a single tax. Since then, several other provinces
have followed suit, including New Brunswick, Newfoundland and Labrador, Nova Scotia, and
Ontario.

 A 0% tax rate applied to certain foods, books, newspapers, homespun cotton cloth, and hotel
services.
 A rate of 0.25% applied to cut and semi-polished stones.
 A 5% tax on household necessities such as sugar, spices, tea, and coffee.
 A 12% tax on computers and processed food.

8
 An 18% tax on hair oil, toothpaste, soap, and industrial intermediaries.
 The final bracket, taxing goods at 28%, applies to luxury products, including refrigerators, ceramic
tiles, cigarettes, cars, and motorcycles.

The previous system with no GST implies that tax is paid on the value of goods and margin at every
stage of the production process. This would translate to a higher amount of total taxes paid, which is
carried down to the end consumer in the form of higher costs for goods and services. The
implementation of the GST system in India is, therefore, a measure that is used to reduce inflation in
the long run, as prices for goods will be lower.

 FORMATION:

The reform of India's Indirect Tax regime was started in 1986 by Vishwanath Prata Singh Finance
Minister in Rajiv Gandhi‟s Government with the introduction of the Modified Value Added Tax
(MODVAT). Subsequently, Prime Minister P. V. Narasimha Rao and his Finance Minister
Manmohan Singh, initiated early discussions on a Value Added Tax (VAT) at the state level. A single
common & quota; Goods and Services Tax (GST) & quota; was proposed and given a go-ahead in
1999 during a meeting between the Prime Minister Atal Bihari Vajpayee and his economic advisory
panel, which included three former RBI governors IG Patel, Bimal Jalan and C. Rangarajan.
Vajpayee set up a committee headed by the Finance Minister of West Bengal, Asim Dasgupta to
design a GST model. The Asim Dasgupta committee which was also tasked with putting in place
the back-end technology and logistics (later came to be known as the GST Network, or GSTN, in
2015). It later came out for rolling out a uniform taxation regime in the country. In 2002, the
Vajpayee government formed a task force under Vijay Kelkar to recommend tax reforms. In 2005,
the Kelkar committee recommended rolling out GST as suggested by the 12th Finance Commission.
After the defeat of the BJP-led NDA government in the 2004 Lok Sabha election and the election of
a Congress-led UPA government, the new Finance Minister P Chidambaram in February 2006
continued work on the same and proposed a GST rollout by 1 April 2010. However, in 2011, with
the Trinamool Congress routing CPI(M) out of power in West Bengal, Asim Dasgupta resigned as the
head of the GST committee. Dasguptaadmitted in an interview that 80% of the task had been done.

9
In the 2014 Lok Sabha election, the Bhartiya Janata Party-led NDA government was elected into
power. With the consequential dissolution of the 15th Lok Sabha, the GST Bill – approved by the
standing committee for reintroduction – lapsed. Seven months after the formation of the then Modi
government, the new Finance Minister Arun Jaitley introduced the GST Bill in the Lok Sabha, where
the BJP had a majority. In February 2015, Jaitley set another deadline of 1 April 2017 to implement
GST. In May 2016, the Lok Sabha passed the Constitution Amendment Bill, paving way for GST.
However, the Opposition, led by the Congress, demanded that the GST Bill be again sent back for
review to the Select Committee of the Rajya Sabha due to disagreements on several statements in the
Bill relating to taxation. Finally, in August 2016, the Amendment Bill was passed. Over the next 15
to 20 days, 18 states ratified the Constitution amendment Bill and the President Pranab Mukherjee
gave his assent to it.

Committee was formed to look into the proposed GST laws. After GST Council approved the
Central Goods and Services Tax Bill 2017(The CGST Bill), the Integrated Goods and Services Tax
Bill 2017 (The IGST Bill), the Union Territory Goods and Services Tax Bill 2017 (The UTGST
Bill), the Goods and Services Tax (Compensation to the States) Bill 2017 (The Compensation Bill),
these Bills were passed by the Lok Sabha on 29 March 2017. The Rajya Sabha passed these Bills on
6 April 2017 and were then enacted as Acts on 12 April 2017.

Thereafter, State Legislatures of different States have passed respective State Goods and Services Tax
Bills. After the enactment of various GST laws, Goods and Services Tax was launched all over India
with effect from 1 July 2017. The Jammu and Kashmir state legislature passed its GST act on 7 July
2017, thereby ensuring that the entire nation is brought under an unified indirect taxation system.
There was to be no GST on the sale and purchase of securities. That continues to be governed by
Securities Transaction Tax (STT).

GST would help in the reduction in the overall burden of taxes on the goods as per the consumers‟
point of view. This is a significant step to reform the system of indirect taxation in the country. The
integration of numerous taxes of the Centre and the State would help in the diminishing of the double
taxation which would lead to a national market that would be common for all.

10
The reduction in the prices is another important part of GST since the traders and the manufacturers
would not have to include any taxes as a component of their production cost and would result in the
reduction of the prices

Not only decline in the prices, but GST will also help to reduce the tax as a whole since the
companies will have to pay only the tax on value addition which is currently being paid on the entire
value of the product or the service.

GST being a uniform structure of taxation will ensure faster and cheaper movement of goods
throughout the country which in turn will help to boost the growth of GDP of the country. One single
tax means compliance at a low level and reduced procedural cost. The load to maintain compliance
would be reduced significantly and also the compliance would be very efficient. Most importantly,
GST will ensure more transparency in the overall taxation system which will help the growth of GDP
to the center, states, manufacturers, industrialists, the common citizens and the country as a whole.

Another importance of GST is that it will significantly help in the reduction ofavoidance of tax. The
preference of purchase with invoices will be common among all the distributors since that would
provide them with better margins of profit as the distributor would be getting the credit for all the
taxes that are paid at the preceding stages. GST will help to remove the bias based on the location
since it will have even tax structures across different states eliminating the location bias. Taxes should
become a hindrance in the path of investment, and hence GST will help to boost investment without
the worry of tax difference in the states which will ultimately result in the growth of business in the
areas that are underdeveloped.

 INPUT TAX CREDIT:


Input tax credit (ITC) forms the backbone of the GST regime in India. The GST is essentially a tax on
value addition at each stage of the supply chain; every supplier, who is the person supplying the
goods and/ or services or an agent acting as such on behalf of such a supplier, can claim credits (over
input taxes paid at each stage of supply chain) in the subsequent stage of value addition. The end
consumer, therefore, bears only the GST charged by the last supplier in the supply chain. No cross-
utilization of the ITC is permitted: the credit of CGST paid on inputs may be used only for paying
CGST on the output, while the credit of SGST on inputs may be used only for paying SGST, except
in the case of inter-state supplyof goods.

11
  GST EXEMPTED SUPPLY:

The exempted supplies are those that do not attract any GST and are specifically exempt from
GST through government notification. However, no ITC can be claimed with respect to inputs or
input services used for making exempt supplies. In other words, in case of exempted supply, only
output is exempted from tax but tax is levied on the input side. Some of the GST exempt goods
include fish, fresh fruits and vegetables, live animals (except horses), jute fiber raw or processed,
printed books, and handloom among others.

GST IS A CONSUMPTION BASED TAX BASED ON VAT PRINCIPLE

 The term „Tax‟ is derived from Latin word „Taxare‟ that means to estimate. In India, a direct
tax
 Practice was prevailed across various industries. From July 1st, 2017, GST came into being
which
 It is a comprehensive tax regime levied on manufacturing sales and consumption of products
and
 Services. Introduction of GST has merged both central and state tax into a unified tax system
across
 Nation. This new tax regime which has cascading effects on the economy which seems
to be testing
 Time for India for ease of business in the supply chain systems. History of GST has begun in
India started before two decades and was made successful in the year 2017. History of GST
will help you under the benefits of Goods and Services Taxes and the advantages over other
type of taxes. History of GST given in different stages, its transformation from other tax types,
and more informative data on GST are given in the article.

 The introduction of Goods and Services Tax (GST) is a very significant step in the field of
indirect tax reforms in India. In the pre-GST regime, there was multiplicity of indirect taxes.
The central excise duty and service tax wavs levied by the Central Government, while VAT
and Entry Tax was levied by the State Government.
 Moreover, there was cascading effect of taxes, i.e. tax on tax, at various stages as credit of
taxes levied by one government was not available against payment of taxes

12
 levied by the other.. GST is a huge reform for indirect taxation in India, the likes of which the
country has not seen post-Independence. GST will simplify indirect taxation, reduce
complexities, and remove the cascading effect. It will have a huge impact on businesses both
big and small, and change the way the economy functions.
 According to various sources of market research agencies, the definition holds as follows GST
is defined as a new tax regime that is currently levied on products and services across India.

Further, it is a uniform indirect tax which has replaced many of taxes such as Excise duty,
service tax, additional duties of excise and custom duty taxes and surcharges on products and
services.

13
14
 CHALLENGES FOR IMPLEMENTING GST SYSTEM

Post GST has made industries in India to face big challenges to switch over to the new tax regime to
be implemented. Broadly, there are several challenges given below that give‟s brief idea to the
business fraternity across the nation to be aware of GST tax regime.

A) It is found through the study that there are various changes taking place in administration at state
and central government level.

B) Implementing GST has given new shape to the taxation system as well as economy of India which
is commonly known as Unified Taxation system which has several adjustments to be done to the
existing tax regime.

C) It is understood from the various literatures that GST being consumption-based tax system, the
respective states in India with higher consumption of Products and Services can lead to better returns
or profits.

D) Indian business systems have to face huge transformation of businesses across different
verticals.

E) It is testing time or trial for many organizations as GST implementation comprises of Multiple
channels starting from Manufacturers to wholesalers to distributors, retailers and then to consumers.
In this context, it takes time to understand the entire system as it is introduced newly and overridden
the existing Tax regime in India.

F) As India is transforming to Digital Business, it is big challenge for the Government at State
level and Central level to integrate the Information Technology infrastructure with the businesses
across industries. This takes enormous time and understanding the existing business and migrating to
e-business as many current businesses are yet non-digital in nature.

15
 BACKGROUND:

Reforms in the indirect taxation system of India dates back before independence. Introduction
of VAT (Value Added Tax) at central level and state level is considered to be one of the major
steps towards indirect tax reform in India. Introduction of GST in India is considered to be one of the
major reforms in Indian taxation system.

GST was first introduced in France in 1954 followed by other countries like Japan, South
Korea, U.K and Australia. There are around 160 countries where GST is in existence. India, being
the federal economy adopted the dual GST model, the one followed by Canada. In India, introduction
to GST was not the pop out of the box concept. Several reforms, events, and the serious efforts dating
back to 1986 made it possible by making either major or minorcontribution. Some of the important
timelines that framed the one tax one nation system areenumerated here in chronological order.
 1986: Shri Vishwanath Pratap Singh, Finance Minister in Rajiv Gandhi s‟Government,
proposed an overhaul of taxation structure of excise in budget for
1986-87.
 2000: The then prime minister Atal Bihari Vajpayee introduced the concept and formed a
committee headed by Asim Dasgupta to design a GST model.
 2003: The Vajpayee government formed a task force under Vijay Kelkar to recommend tax
reform and in 2004 this committee strongly recommended that the indirect tax existing in
India shall be integrated into the form of GST.
 2006: After successful implementation of VAT and recommendation of various
committees and task forces on GST. On February 28, GST appeared in the budget speech for
the first time where the then Finance Minister P. Chidambaram announced 1st April as the
deadline for implementation of GST.
 2008: Empowered committee of State Finance Ministers was constituted which submitted a
report to Indian Government followed by submission of discussion paper on 10 November
2009.
 2013: UPA resolved over the issue of GST introduction and a provision of rupees 9000 crores
was made by P. Chidambaram for compensation to those states, which may incur loss due to
implementation of GST. By August a report consisting of recommendations to improve GST
was submitted to the parliament by the Parliament

16
 Standing Committee and GST bill was ready to be introduced in the parliament which was
opposed by the then Gujarat‟s Chief Minister shri. Narendra Modi.
 2014: On 18th December 2014 Cabinet approved 122nd constitutional Amendment Bill to
GST which was passed from Lok Sabha on May 6th 2015 and was presented in Lok Sabha on
May 12th 2015 but till August, Government failed to win the support ofthe opposition.
 2016: Finally, on August 3rd 2016 The Constitution Amendment Bill was passed from
Rajya Sabha by two third majorities and was assented by the then Honorable President Shri
Pranab Mukherjee. The first council meeting was held on 22-23rd September and on
November 3rd four slab tax structure of 5, 12, 18 and 28 % along with additional Cess on
luxury and sin goods was agreed upon.
 2017: On January deadline to roll out GST was announced as 1st July and by February draft
Compensation Bill was finalized to make good any revenue loss to states in 1st five years of
GST roll out. On May 19th GST council decided on 5, 12, 18 and 28 % as service tax slabs.
All states except Jammu & Kashmir passed the SGST law, Assam being the first one and
finally on 30th June midnight GST was rolled out.

17
 ITEMS NOT COVERED UNDER GST

SR NO. ITEMS REMARK

1. Alcoholic Liquor for human Article 366(12A) of the Constitution of India
consumption provides that taxes on the supply of alcoholic
liquor for human consumption are outside the
purview of the Goods and Service Tax Act
2 Petroleum Products viz, GST to be levied from such date as may be
petroleum crude, high spirit notified by the Government on the
diesel, motor spirit recommendations of the GST Council (Section
(commonly known as petrol, 9(2) of the CGST Act). Till then Central excise
natural gas and aviation duty will continue on petroleum products.
turbine fuel
3 Electricity As per Entry 53 in List II (State list) of the
Seventh Schedule to the Constitution of India,
taxes on consumption and sale of electricity are
under the ambit of the States.

18
 RATES OF GST:

0% fresh meat, fish chicken, Eggs, Milk, butter milk, Curd, natural honey, fresh fruits
GST and vegetables, flour, bean, bread, prasad, Salt, Stamps, judicial papers, printed
Rate books, Newspapers, Bangles, handloom etc.

5% Fish fillet, Cream, skimmed milk powder, branded paneer, frozen vegetables,
GST
Rate Coffee, Tea, Spices, pizza bread, Rusk, Sabu dana, Kerosene, Coal, Medicines,
Stent, lifeboats

12% Frozen meat products, Butter, Cheese, Ghee, dry fruits in packaged form, animal fat,
GST Sausage, fruit juices, Bhutia, Namkeen, Ayurvedic medicines, tooth powder,
Rate Agarbatti, coloring books, picture books, Umbrella, sewing machine, and cellphones

Flavored refined sugar, Pasta, Cornflakes, pastries and cakes, preserved vegetables,
18%
jams, sauces, Soups, ice cream, instant food mixes, mineral water, Tissues,
GST
Envelopes, Tampons, notebooks, steel products, printed circuits, Camera, speakers
Rate
and monitors.

Chewing gum, Molasses, chocolate not containing cocoa, waffles and wafers coated
with chocolate, pan masala, aerated water, Paint, Deodorants, shaving creams, after
28%
shave, hair shampoo, Dye, Sunscreen, Wallpaper, ceramic tiles, water heater,
GST
Dishwasher, weighing machine, washing machine, ATM, vending machines,
Rate
vacuum cleaner, Shavers, hair clippers, Automobiles, Motorcycles, aircraft for
personal use, and yachts

19
 REVISED RATES OF GST FROM 25TH JANUARY 2018:

Goods taxed
Vibhuti, De-oiled rice bran and parts used to manufacture hearing aids
at 0%

Reduced from Old and used motor vehicles [medium and large cars and SUVs] with a
28% to 18% condition that No ITC is availed, Public transport Buses that run on Biofuel

Reduced from For Old and used motor vehicles [other than medium and large cars and
28% to 12% SUVs] with a condition that No ITC is availed

Sugar boiled Confectionery, drinking water, packed in 20 liters bottles,

Reduced from Biodiesel, Drip irrigation system including laterals, sprinklers, Mechanical
18% to 12% Sprayer, Certain listed Bio-pesticides (12 in no‟s), Fertilizer grade
Phosphoric acid, Bamboo wood building joinery

LPG supplied to Household Domestic Consumers, Raw materials and

Reduced from
Consumables needed for Launch vehicles, Satellites and Payloads (Both
18% to 5%
CGST and IGST Rates), Tamarind Kernel Powder, Mehndi paste in cones

Reduced from Articles of straw, of esparto or of other plaiting materials, Velvet fabric [with
12% to 5% a condition that no refund is claimed on ITC]

Reduced from
Diamonds and precious stones
3% to 0.25%

Rate
Increased - Rice bran (other than de-oiled rice bran)
0% to 5%

Rate
Increased - Cigarette filter rods
12% to 18%

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1.1 INTRODUCTION TO STUDY:

 MAIN ADVANTAGES OF GST:

 GST is a transparent tax and also reduce the number of indirect taxes.

 A unified tax system removing a bundle of indirect taxes.

 Removes cascading effect of taxes.

 Reduction in manufacturing cost.

 It will replace other taxes like VAT, CST, Service Tax, CAD, SAD, Excise, Entry tax,
Purchase tax, etc.

 Less complex tax system.

One of the greatest importance of GST is the creation of a unified market. Due to GST, the taxes
imposed by the center and the state will be cut down which would result in the formation of a
unified market that would enhance the interstate movement of goods with a drop in the costs of
business. GST will help to increase the revenues in the state by the expansion of the base of tax which
will eventually lead to the increasing of the revenues available at the disposal of the center and the
state. This would be immensely helpful for increasing the resources of the states that are poor. GST is
extremely useful in the improvement of the governance of taxation. This enhancement is made
primarily in two waysthat are as follows: -

A. GST Eliminates the cascading effect of tax

GST is a comprehensive indirect tax that was designed to bring the indirect taxation under one
umbrella. More importantly, it is going to eliminate the cascading effect of tax that was evident
earlier.

21
Cascading tax effect can be best described as „Tax on Tax‟
B. Higher threshold for registration
Earlier, in the VAT structure, any business with a turnover of more than Rs 5 lakh (in most states)
was liable to pay VAT. This limit differed state-wise.
Also, service tax was exempted for service providers with a turnover of less than Rs.10 lakh. Under
GST regime, however, this threshold has been increased to
Rs 20 lakh, which exempts many small traders and service providers.

C. Composition scheme for small businesses

Under GST, small businesses (with a turnover of Rs 20 to 75 lakh) can benefit as it gives an option to
lower taxes by utilizing the Composition scheme. This move has brought down the tax and
compliance burden on many small businesses.

D. Simple and easy online procedure

The entire process of GST (from registration to filing returns) is made online, and it is super simple.
This has been beneficial for start-ups especially, as they do not have to run from pillar to post to get
different registrations such as VAT, excise, and service tax. Our Clear Tax GST software is already
on a roll filing GST returns.

E. Less Number of Compliances

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

F. Defined Treatment for E-commerce Operators

Earlier to GST regime, supplying goods through e-commerce sector was not defined. It had variable
VAT laws. Let us look at this example: Online websites (like Flipkart and Amazon) delivering to
Uttar Pradesh had to file a VAT declaration and mention the registration number of the delivery truck.
Tax authorities could sometimes seize goods if the documents were not produced.

22
Again, these e-commerce brands were treated as facilitators or mediators by states like Kerala,
Rajasthan, and West Bengal which did not require them to register for VAT. All these differential
treatments and confusing compliances have been removed under GST. For the first time, GST has
clearly mapped out the provisions applicable to the e-commerce sector and since these are applicable
all over India, there should be no complication regarding the inter-state movement of goods anymore.

G. Improved Efficiency of Logistics

Earlier, the logistics industry in India had to maintain multiple warehouses across states to avoid the
current CST and state entry taxes on inter-state movement. These warehouses were forced to operate
below their capacity, giving room to increased operating costs.

Under GST, however, these restrictions on inter-state movement of goods have been lessened.
Reduction in unnecessary logistics costs is already increasing profits for businesses involved in the
supply of goods through transportation.

H. Unorganized sector is regulated under GST

In the pre-GST era, it was often seen that certain industries in India like construction andtextile
were largely unregulated and unorganized.
Under GST, however, there are provisions for online compliances and payments and for availing
of input credit only when the supplier has accepted the amount.
This has brought in accountability and regulation to these industries.

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 Benefits of GST on Businesses

With the introduction of GST in India, there is an adverse effect which has resulted in inconvenience
for the customers though there is lot of benefit in long term gains of business. It is noteworthy to
mention that customers can get rid of indirect taxes such as Value addedTax, Central Sales Tax,
Service Tax and excise taxes etc., which has resulted in simplifiedtax policy in India.

The following are the benefits seen in the retail business.

 It eradicates cascading effects of taxes i.e., tax on tax.

 Due to decrease of burden of taxes on manufacturing, the prices may be decreased
 The increased manufacturing activity will result in more opportunities if consumershave
affordability in buying products.
 The whole Indian marketplace can be unified which may result in decrease ofbusiness costs.
 It can help seamless movement of products throughout states which helps indecreasing the
transaction charges of enterprises.
 Due to GST, there is wide scope for E-commerce to penetrate the market.
 GST has an effect on Foreign Direct Investment which can gain confidence fromforeign
investors.
 GST helps in ease of doing business and elevate scalability of business

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DIS-ADVANTAGES OF GST:

a. Increased Costs due to Software Purchase

Businesses have to either update their existing accounting or ERP software to GST-
Compliant one or buy a GST software so that they can keep their business going. But both the
options lead to increased cost of software purchase and training of employees for an efficient
utilization of the new billing software. Clear tax is the first company in India to have launched
a ready-to-use GST software called Clear tax GST Software. The software is currently
available for free for SMES, helping them transition to GST smoothly. It has truly eased the
pain of the people in so many ways.

b. Being GST- Compliant

Small and medium-sized enterprises (SME) who have not yet signed for GST have to quickly
grasp the nuances of the GST tax regime. They will have to issue GST- complaint invoices, be
compliant to digital record-keeping, and of course, file timely returns. This means that the
GST-complaint invoice issued must have mandatory details, such as GSTIN, place of supply,
HSN codes, and others. Clear tax has made it easier for SMES with the clear tax bill book web
application. This application is available for FREE until the end of September and is an easy
solution
to this problem. This will help every business to issue GST-compliant invoices to their
customers.

c. GST will mean an increase in operational costs

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

d. GST came into effect in the middle of the financial year

As GST was implemented on the 1st of July 2017, businesses followed the old tax
structure for the first 3 months (April, May, and June), and GST for the rest of the

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 financial year. Businesses may find it hard to get adjusted to the new tax regime, and some of
them are running these tax systems paralerly, resulting in confusion and compliance issues.

e. GST is an online taxation system

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

TYPES OF GST

1. Central Goods & Service Tax (CGST)

As per the Central Goods & Services Tax Act 2016, CGST is the centralized part of GST that
subsumes the present central taxations and levies- Central Sales Tax, Central Excise Duty,
Services Tax, Excise Duty under Medical & Toiletries Preparation Act, Additional ExciseDuties
Countervailing Duty (CVD), Additional Custom Duty and other centralized taxations. CGST is
applicable on the supply of goods and services of standard services andcommodities which can
be amended periodically by a specialized body under the centralgovernment. The revenue
collected under CGST belongs to the central government. The input tax is given to the state
governments which they can utilize only against the payment ofCGST.

2. State Goods & Services Tax (SGST)

SGST is an important part of GST. It stands for State Goods & Services Tax as per the 2016 GST
bill. Various taxations and levies under the state authority are subsumed by SGST as one uniform
taxation. It includes the amalgamation of State Sales Tax, Luxury Tax,

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Entertainment Tax, Levies on Lottery, Entry Tax, Octroi and other taxations related to the movement
of commodities and services under state authority through one uniform taxation- SGST. Revenue
collected under SGST belongs to the State Government. However, the mainstream framework of the
state governing body will be supervised by the central government. Each state will be having their
own State Authority to collect SGST.

3. Integrated Goods & Services Tax (IGST)

GST focuses on the concept of one tax, one nation. IGST stands for Integrated Goods and Services
Tax which is charged on the supply of commodities and services from one state to another state. For
example, if the supply of goods and services occurs between Gujarat and Maharashtra, IGST will be
applicable.
Under Article 269A of the Indian Constitution, the inter-state trade and commerce activities that
involve the movement of commodities and services shall be levied with an integrated tax (IGST)
under the GST regime. The Government of India will collect the revenue under IGST. Further changes
can be made by the Goods and Services Tax Council of India.

4. Union Territory Goods & Services Tax (UTGST)

As we have already learned about CGST and SGST which are intra-state taxations and IGST which is
inter-state, the union territories in India are accounted under a specialized taxation called Union
Territory Goods and Services Tax as per the GST regime 2016. It will subsume the various taxations,
levies and duties with one uniform taxation in Union Territories as well.
Delhi (India‟s Capital Territory), Chandigarh, Dadra & Nagar Haveli, Andaman & Nicobar Islands,
Daman & Diu, Lakshadweep and Puducherry are the prominent union territories in India. UTGST
will account for all the taxations under these union territories in India. The parliament is looking
forward to implement a separate act to impose and supervise GST in Union Territories under the
name of UTGST act. The bill will be presented in respective union territories for further changes in
the implementation of GST.

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 GST AND RETAIL

RETAIL AND SUPPLY CHAIN

Retail involves the sale of goods from a single point (malls, markets, department stores etc.) directly
to the consumer in small quantities for his end use. In a layman‟s language, retailing is nothing but
transaction of goods between the seller and the end user as a single unit (piece) or in small quantities
to satisfy the needs of the individual and for his direct consumption.

THE SUPPLY CHAIN

Manufacturers ................... > Wholesalers ................> End User

/Retailers consumer

TYPES OF RETAIL BUSINESS

 Convenience store – a small to medium grocery and convenience shop usually

operating near residential areas.

 Specialty store – a store which concentrates on narrow product areas, E.g. clothing,
electrical goods, entertainment.

 Supermarket – a medium to large grocery and household store aiming for low-
margin / high-volume sales.

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  Discount store – a small, medium or large shop which sources end-of-run stock or branded
goods to sell at heavily discounted prices.

 Department store – a large store with a range of goods and services, divided into
departments which can be individually managed by buyers, merchandisers or a separate
private business.

 Warehouse / direct retailer – a medium to large store, usually off the high street, stocking
goods directly from manufacturer or with costs of another step-in supplychain removed.

 Online store - selling directly to customers through an e-commerce website.

BENEFITS OF RETAIL

• Customer Convenience: Perhaps the most important role of bringing the ready to be
consumed goods to the doorstep of the consumer is performed by the retail community. Consumers
benefit from retailing as retailers perform marketing functions that makes it possible for customers to
have access to a broad variety of products and services. Retailing also helps to create place, time and
possession utilities. A retailer's service also helps to enhance a product's image. Retailers stock goods
and ensure the availability of products and services just when the customer needs them. Convenience
Stores operate over extended hours through the week and give customers greater flexibility and
choice.

• Accessibility: Products and services have no value for consumers until they are acquired and
used by the customers. Retailers acquire products and services from different places and. assort them
at a single point as per the needs of the consumers and thus facilitate customers' access.

• Convenience of Size: Retailers break bulk and serve the products in quantities and sizes as
desired by the customer. For example, shampoo is available in small sachets. The retailer helps
consumer by providing appropriate products, service and advice in the packing and quantities desired
by them.

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• Associated Services: A vibrant retail sector benefits the consumers by providing range of
products and services efficiently. Retailing can be done in either fixed locations or online. Retailing
includes subordinated services, such as delivery. The term "retailer" is also applied where a service
provider services the needs of a large number of individuals, such as a public utility, like electric
power. Retailing also helps to increase the living standards and enable the consumers to possess
various goods, services and utilities.

• Supply Chain: Retailers are part of an integrated system called the supply-chain. A retailer
purchases goods or products in large quantities from manufacturers or directly through a wholesaler,
and then sells smaller quantities to the consumer for a profit. Retailers participate in the sorting
process by collecting an assortment of goods and services from a wide variety of suppliers and
offering them for sale. The width and depth of assortment depend upon the individual retailer's
strategy. Retailers provide the vital link between producers and ultimate consumers.

• Value Chain: When consumers purchase goods, retailers must order more goods to replenish
their stock. In turn, factories must manufacture the goods for the retailers. The factories then purchase
more raw materials to use to manufacture more goods. This is how consumer spending is able to drive
much of the economy.

• Research & Information: The retailer provides useful information across the supply chain.
He informs and educates customers about product features and benefits. They provide information to
consumers through advertising, displays and signs and sales personnel. Marketing research support is
given to other channels, members. Retailing in a way, is the final stage in marketing channels for
consumer products. He also provides feedback about consumer requirements to the manufacturers
and wholesalers which help them in planning production and supply.

• Mobilizing Finance: Retailing industry mobilize the investment and savings of people, as a
small shop can be set up with minimal investment. They store merchandise, mark prices on it, place
items on the selling floor and otherwise handle products; usually they pay suppliers for items before
selling them to final customers. They complete transactions by using appropriate locations, and
timings, credit policies, and other services e.g. delivery.

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They influence life style of consumers and help people to build their identity in a socialsetting.

• Economic Development: Retailing has great impact on economic development of a nation.

Retailing has become an intrinsic part of our daily lives. Consumer spending on retail goods drives
much of the global economy, and the retail industry employs a large number of people. Nations that
have enjoyed the greatest economic and social progress have a vibrant retail sector. Retailing is one
of the most important industries in the world and plays a predominant role in economic development
of the country. A healthy retail sector growth and speeds up economic development.

• Employment: There are a large number of people and companies involved in the production,
distribution, and retail of goods. Globally, retailing is the largest revenue generator and employment
provider next only to agriculture. It provides opportunities to the poorest and unskilled along with the
educated and skilled. As a major source of employment retailing offers a wide range of career
opportunities including; store management, merchandising and owning a retail business.

• Social Responsibility: Successful retailers also recognize that people want to see the
improvements in the general level of consumption and social cohesion over time. Retailers have to
enhance their perceived value to the community by acting as a focal point and through effective
public relations and promotional campaign including sponsorships. This encourages social
responsibility behavior by the corporates where public welfare programs get funded by a certain
percentage of purchase prices of company's products.

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CURRENT SCENARION OF RETAIL

The Indian retail industry is one of the fastest growing in the world. Retail industry in India is
expected to grow to US$ 1,200 billion by 2021 from US$ 795 billion in 2017.

India is the fifth largest preferred retail destination globally. The country is among the highest in
the world in terms of per capita retail store availability. India‟s retail sector is experiencing
exponential growth, with retail development taking place not just in major cities and metros, but also
in Tier-II and Tier-III cities. Healthy economic growth, changing demographic profile, increasing
disposable incomes, urbanization, changing consumer tastes and preferences are the other factors
driving growth in the organized retail market in India.
India‟s population is taking to online retail in a big way. Online retail sale is forecasted to grow at the
rate of 31 per cent to reach US$ 32.70 billion in 2018@. Revenue generated from online retail is
projected to grow to US$ 60 billion by 2020.Organised retail penetration is expected to increase to 18
per cent in 2021 from an estimated nine per cent in 2017.India is expected to become the world's
third-largest consumer economy, reaching US$ 400 billion in consumption by 2025. ^Increasing
participation from foreign and private players has given a boost to Indian retail industry. India‟s price
competitiveness attracts large retail players to use it as a sourcing base. Global retailers such as Wal-
Mart, GAP, Tesco and JC Penney are increasing their sourcing from India and are moving from third-
party buying offices to establishing their own wholly-owned/wholly-managed sourcing and buying
offices. The Government of India has introduced reforms to attract Foreign Direct Investment (FDI)
in retail industry. The government has approved 51 per cent FDI in multi-brand retail and 100 per
cent in single brand retail under the automatic route which is expected to give a boost to ease of
doing business and Make in India, and plans to allow 100 per cent FDI in e-commerce. India
will become a favorable market for fashion retailers on the back of a large young adult consumer
base, increasing disposable incomes and relaxed FDI norms.

The Indian retail industry has emerged as one of the most dynamic and fast-paced industries
due to the entry of several new players. Total consumption expenditure is expected to reach nearly
US$ 3,600 billion by 2020 from US$ 1,824 billion in 2017. It accounts for over 10 per cent of the
country‟s Gross Domestic Product (GDP) and around 8 per cent of the employment. India is the
world‟s fifth-largest global destination in the retail space.

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BENEFITS OF GST ON RETAIL STORES.

• Reduced Taxes
GST will reduce the tax burden on retailers as they pay many different forms of tax in the current
scenario such as CAT, CST, Octroi, service tax, and much more. GST will streamline everything into
one single tax so that it will be easier for the retailer to understand the taxation and to pay it in one
shot.

• Seamless Input Tax Credit

GST will reduce the burden of tax on the retail sector as it will set off tax starting from the
producer‟s point to the customer point. GST will make an impact on the flowing effect of taxes
and help to streamline into one category.

• Increased efficiency in supply chain

Since the retail business can be carried out in every state upon single registration, the retailerswill not
have to maintain warehouses in every state, and this will be very beneficial regarding cost to the
retailer. The transportation industry will flourish as they would carry more goods from one state to
the other as it will become easy to transfer goods under GST. The lead time will also reduce in
transporting the goods as the inter-state boundaries would be more free- flowing. GST will help the
retail sector become more efficient in their operations.

• Tax on promotional items and gifts

In the new GST model, any supply without consideration will attract tax and therefore, everything
will have to be accounted for. The retailers would give out gifts and promotional items with products
as a part of their marketing strategy which used to be tax-free in the current taxation system. When
the GST gets implement, no such rule will be applicable andthe retails will have to pay tax on the
gifts and promotional items as well, therefore, re-thinktheir promotional strategies.

• Better strategies
GST will force the retailers to re-think their supply chain strategies and re-model their network
as it will open a lot of doors and opportunities for retailers to expand their business.

33
It will give them the freedom to draft better business strategies and implement it for further growth of
the retail sector.

• Reduce complications
The retailers would be able to carry out the business with more ease as the taxation, and other policies
would be streamlined under the new GST rules, and they would not have to waste their time in paying
various taxes and waiting to fulfill all other policy requirements of the current taxation system.

• Beneficial for start-ups

The retail sector would start attracting a lot of start-ups as they would have to register their business
only once and also claim the benefits of taxation for start-ups under the new GST laws. They would
also be able to carry out business operations more freely with the new policies in place and would get
more attracted to join the retail sector.

NATURE:

 DUAL GOODS AND SERVICE TAX

The GST shall have two components: one levied by the Centre (hereinafter referred to as Central
GST), and the other levied by the States (hereinafter referred to as State GST). Rates for Central GST
and State GST would be prescribed appropriately, reflecting revenue considerations and acceptability.
This dual GST model would be implemented through multiple statutes (one for CGST and SGST
statute for every State). However, the basic features of law such as chargeability, definition of taxable
event and taxable person, measure of levy including valuation provisions, basis of classification etc.
would be uniform across these statutes as far as practicable.

 APPLICABILITY OF GST TO ALL TRANSACTIONS

The Central GST and the State GST would be applicable to all transactions of goods and services
made for a consideration except the exempted goods and services, goods which are outside the
purview of GST and the transactions which are below the prescribed threshold limits. The Central
GST and State GST should be levied on common and identical tax base.

34
The tax base should comprehensively extend over all goods and services (with no distinction being
made between treatment of goods and services) up to the final consumer point.

 DESTINATION BASED MULTI POINT LEVY

It is recommended that the Centre and States should adopt a consumption-based GST with no
distinction being made between raw materials and capital goods, in a aliment of Input tax credit. GST
is based on destination principle; thus, tax base will shift from production to consumption of goods.
The taxable event is Consumption of goods or services. As a result, revenue will accrue to the state in
which consumption takes place or deemed to take place.

 COMPUTATION OF GST ON THE BASIS OF INVOICE CREDIT METHOD

The liability of CGST and SGST is computed the basis of Invoice Credit method i.e. allow credit
for tax paid on all intermediate purchases of goods and services on the basis of invoice issued by the
supplier. As a result, all different stages of production and distribution can be interpreted as a mere
tax pass-through, and the tax will effectively stick on final consumptionwithin the taxing jurisdiction.
This will facilitate elimination of the cascading effect at various stages of production and
distribution. In an Invoice based VAT system, the issue of invoices in the proper form is an
essential part of the procedure for imposing and enforcing the VAT. Therefore, it should be
mandatory for a supplier making a taxable supply to anothertaxable entity to provide a VAT invoice.

The Central GST and State GST are to be paid to the accounts of the Centre and the States separately.
It would have to be ensured that account-heads for all services and goods would have indication
whether it relates to Central GST or State GST (with identification of the State to whom the tax is to
be credited).

 UNIFORM PROCEDURE FOR COLLECTION OF GSTs

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

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  COMPOSITION SCHEME UNDER GST

The States are also of the view that Composition/ Compounding Scheme for the purpose of GST
should have an upper ceiling on gross annual turnover and a floor tax rate with respect to gross
annual turnover. The first discussion paper suggests that there would be a compounding cut-off at Rs.
50 lakh of gross annual turnover and a floor rate of 0.5% across the States. The scheme would also
allow option for GST registration for dealers with turnover below the compounding cut-off.
In reference to Composition scheme, the task force has recommended rate of 1% each on account of
CGST and SGST for dealers with the turnover between Rs 10 lacs to Rs 40 lacs. No credit for the
same will be available if the dealer opts for the compounding scheme.

 REGISTRATION & TAX PAYER IDENTIFICATION NUMBER

All the taxable entities with turnover above the threshold limit will be required to register and obtain
GST registration number. The taxable entities with lower turnover will also have the option to
register.
As per First Discussion paper, each taxpayer would be allotted a PAN-linked taxpayer identification
number with a total of 13/15 digits. This would bring the GST PAN-linked system in line with the
prevailing PAN-based system for Income tax, facilitating data exchange and taxpayer compliance.
However, the Task force report has recommended that the GST Registration number should be
twelve-digit alphanumeric numbers. The first ten digits should be the alpha-numeric Permanent
Account Number (PAN) followed by a space and two more digits indicating the state code. This
number scheme should be publicized widely and should be self-generated after obtaining a PAN.
There will be single GST registration number for all branches in a State. Therefore, a dealer having
branches across States will have as many GST registration numbers as the number.

 INPUT TAX CREDIT (ITC) SET OFF

Since the Central GST and State GST are to be treated separately, taxes paid against the Central GST
shall be allowed to be taken as input tax credit (ITC) for the Central GST and could be utilized only
against the payment of Central GST. The same principle will be

36
Applicable for the State GST. Further, the rules for taking and utilization of credit for the Central
GST and the State GST would be aligned.

 CROSS UTILIZATION OF ITC

Cross utilization of ITC between the Central GST and the State GST would not be allowed except in
the case of inter-State supply of goods and services under the integrated goods and service tax (IGST)
model.

 CREDIT ACCUMULATION ON ACCOUNT OF REFUND

Ideally, the problem related to credit accumulation on account of refund of GST should beavoided
by both the Centre and the States except in the cases such as exports, purchase of capital goods,
input tax at higher rate than output tax etc. where, again refund/adjustment should be completed in
a time bound manner.

 ZERO RATING OF EXPORTS

The first discussion paper has suggested that the exports would be zero-rated. Similar benefits may be
given to Special Economic Zones (SEZs). However, such benefits will only be allowed to the
processing zones of the SEZs. No benefit to the sales from an SEZ to Domestic Tariff Area (DTA)
will be allow GST will lead to the unification of markets as it will streamline the state and the central
tax and eliminate all the confusion of taxation in different markets. The retailers can easily expand
their business beyond boundaries as they have to register their business only once and then can carry
operations in all the states.

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 CHAPTER – II
RESEARCH METHODLOGY

2.1 OBJECTIVES OF THE STUDY

The project is entitles as “IMAPCT OF GST ON RETAIL STORES”

The basic objectives of the project are as follows:

 To understand the concept of GST

 To study the impact of GST on sales of retailers
 To analyze the impact of change in tax rates
 To find the effects of GST in the business of reta

2.2 NEEDS OF THE STUDY

 This research provides the feedback of retailers towards the impact of GST ontheir retail business.

 This study helped to know whether retailers are satisfied with

 New rates, rules and implementations of GST.

 Registration process and software of GST.

 New prices of goods and service.

 This study shows the overall impact on the retail stores due to GST.

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 .

2.3 REASEARCH METHODOLOGY

TYPES OF RESEARCH:

1. Descriptive Research:

Descriptive research seeks to depict what already exists in a group or population. An example of
this type of research would be an opinion poll to determine which Presidential candidate people
plan to vote for in the next election. Descriptive studies do not seek to measure the effect of a
variable; they seek only to describe.

2. Basic Research:

Basic research, also called pure research or fundamental research, has the scientific research aim to
improve scientific theories for improved understanding or prediction of natural or other phenomena.
Applied research, in turn, uses scientific theories to develop technologyor techniques to intervene
and alter natural or other phenomena. Though often driven by curiosity, basic research fuels applied
science's innovations. The two aims are often coordinated in research and development.

3. Analytical Research:

Analytical research is a specific type of research that involves critical thinking skills and the
evaluation of facts and information relative to the research being conducted. I opted this research
method to collect the data for project work.

4. Quantitative Research:

Quantitative Research Definition: Quantitative research, is defined as the systematic investigation

of phenomena by gathering quantifiable data and performing statistical, mathematical or
computational techniques. Quantitative research gathers information from existing and potential
customers using sampling methods and sending out online surveys, online polls, questionnaires etc.,
the results of which can be depicted in the form ofnumerical.

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5. Qualitative Research:

Qualitative Research is primarily exploratory research. It is used to gain an understanding of

underlying reasons, opinions, and motivations. It provides insights into the problem or helps to
develop ideas or hypotheses for potential quantitative research. Qualitative Research is also used to
uncover trends in thought and opinions, and dive deeper into the problem. Qualitative data collection
methods vary using unstructured or semi-structured techniques.

6. Exploratory Research

Exploratory research is the preliminary research to clarify the exact nature of the problem to be
solved. It is used to ensure additional research is taken into consideration during an experiment as
well as determining research priorities, collecting data.

The research type used for this project is Exploratory Research

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 2.4 REASEARCH DESIGN

A research design us the set of methods and procedures used in collecting and analyzing measures of
the variables specified in the research problem research. The design of a study defines the study type
(descriptive, correlation, semi experimental, experimental, review, meta analytic) and sub type (e.g.
Descriptive case study), research problem, hypothesis, independent and dependent variables,
experimental design and if applicable, data collection methods and a statistical analysis plan. A
research design is a framework that has beencreated to find answers to research question

Research design is logical and systematic plan prepared for conducting a research study. It can be
called as a blue print for collection; measurement and analysis of data. The research design provides
guideline to researcher regarding the time period within which research is to be collected, the
techniques of data collection and data analysis and so on. It provides insights about “how” to conduct
research using a particular methodology.

 The essential elements of research design are:

1. Accurate purpose statement of research design.
2. Techniques to be implemented for collecting details for research
3. Method applied for analyzing collected details
4. Type of research methodology
5. Timeline
6. Measurement of analysis.

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 2.5 DATA COLLECTION:

1. Primary data

Primary data that is data collected by a researcher from first hand sources, using methods like surveys
interviews or experiment. It is collected with the research project in mind, directly from primary
sources.

In this project, the information is collected by Questionnaire Method for the research. The study was
conducted within 5 days with 30 respondents.

2. Secondary data

Secondary data refers to data which is collected by someone who is someone other than user.
Secondary data collected through journals, books and websites. Secondary data analysis can save
time that would otherwise be spent collecting data but it can be less useful as data may be
inadequate or outdated.

In this project secondary information is collected from websites and journals like history and
information of GST.

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 2.6 SAMPLE SIZE AND TECHNIQUE

Sample area

Sample area for the research is taken from questionnaire from retailers and wholesalers in
DOMBIVLI Area.

Sample size

The sample size consists of 30 retailers.

2.7 TOOLS AND TECHNIQUE

 Validation of tools-
The main statistical tools used for the collection method and analyses of data in thisproject
are consist of
I. Pie charts
II. Tables
III. Chi square
IV. Anova

 Data processing and analysis plan-

The data was processed and analyses with the help of percentages using excelsheet.

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 2.8 LIMITATIONS OF THE STUDY

 The study was limited up to 30 respondents.

 There can be a chance for bias in the information given by the retailers.
 The study was based on the sample hence results were not fully absolute.
 The area of research was limited.

44
 CHAPTER –III
REVIEW OF LITERATURE

1. Dr. R. Vasantha gopal (2011) , Conducted a study on , “ 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 positive step in becoming Indian economy . Success of GST will lead to
its acceptance by more than 130 countries in world and a new preferred form of Indirect Tax System
in Asia also

2. Jai Parkash (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 set off, subsuming of several
taxes in the GST and phasing out of CST.

3. Venkadasalam (2014) has analyzed 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.

4. Mohammad Ali Roshidi (2016) , conducts a study on “Awareness and perception of tax payers
towards Goods and Service Tax implementation. The study attempts to find out what level of
awareness and perception to GST taxpayers in Malaysia. This study only consists of 256 civil service
servants of the secondary school teachers in the kaula kangsar, Perak. Data collected using
questionnaire. The result shows that moderate and majority of respondents give a high negative
perception to the GST. The eventually causes the majority of respondents did not accept
implementation of GST in Malaysia.

5. International Journal of innovative studies in sociology and humanities (2016) , A study on

impact of GST after implementation Milan-deep Kour and his co-authors Assistant Professor from
Eternal University himachal Pradesh talks about the impact of GST and implementation of it, its
benefit and challenges. He also emphasizes that GST is going to change things in current situation.
45
 Ahamd et al. (2016) found that the level of awareness of the GST is still not reached a satisfactory
level. This is because the study involved only general questions that should be known by the
respondents as end users. This cause the respondents gave high negative perception of the
impact of implementation of GST. The respondents received less information and promotion of the
authorities. Most of the respondents were unclear whether the goods and services are not subject to
GST. Furthermore, due to the lack of information on GST, the respondents had a high negative
perception. Therefore, the government must convince that GST will not have a lasting impact on the
public as particularly convincing end users that no increase in prices of goods and services
6. Vineet Chauhan (2017) Conduct a study on “Measuring Awareness about implementation of GST.”
A study survey of small business unit of Rajasthan State in India. The study seeks to evaluate the
awareness of the business owners about GST difficulties they face to encase of the current
awareness about it. 148 small business owners were analyses in order to identify the awareness
about GST from Rajasthan state and the kind and extent of relief provided and the implementation of
the provision under GST Law.

7. Bar hate (2017) found that people have no doubt whatsoever regarding the proposed benefits of
GST irrespective of their business type, legal status of business for the reason being they feel irritated
by the present system which appears to be cumbersome. Mostrespondents believe that GST will bring
monetary gains to their business and do not anticipate any significant boost in tax compliance costs.
Interestingly, respondents expect the spending on tax compliance to go down after GST is
implemented. The lack of information coupled with the apathy towards reforms may paralyze the
speedy implementation of this system especially in small towns where still not a single orientation
programs have been planned and executed till date by competent authorities.

8. Poona m (2017) The biggest problems in Indian tax system like Cascading effect & tax evasion,
distortion can be minimized by implementing GST. After amalgamation of local state and central
taxes competitiveness of industry, exporter and company will increase. The extra revenue which can
be generated from broaden tax base structure can be utilized for the growth of nation. In economy tax
polices play an important role because of their impact on efficiency and equity. Indirect tax reforms
have been as integral part of the liberalization process since new economic reforms.
9. Times of India (26 July, 2017) , page no 1&17 it is stated that Sweet makers are confused with
fixing the tax for their products as the ingredients used in the sweets are taxed separately as raw
material and as finished goods the products its taxing is different ex. Plain burfi is 5% taxed but
chocolate burfi is fixed with 28%. Plain burfi mixed with other dry fruits is of 12%. This taxing
system makes the Sweet makers to get confused on how much GST to be fixed for which product.

46
9. Times of India dated (27 July , 2017) , stated that the GST implication across different places
for the same product has wider differences which the consumers are unaware, resulting them in
surprise. Ex A Rasamalai sold in counter at a shop is taxed with 5% but if it is served in the hotel it is
taxed with 18% this has resulted in difference of consumers shopping to purchase the similar products

10. Sehrawat & Dhanda (2015) conducted a study focused on advantages and challenges of GST
faced by India in execution. They concluded that a simplified and transparent tax systemwas 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.

11. Khurana & Sharma (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.

12. Munde & chavan (2016) conducted a study to discuss the pros and cons of GST and
accordingly make suggestions to minimize loopholes and make it more effective. Theyconcluded 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.

13. Lourdunathan & Xavier (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.

47
 CHAPTER – IV
DATA ANALYSIS
INTERPRETATION AND HYPOTHESIS

4.1 PIE CHART

Q.1 Age of the retailer

Particulars Number of respondents Percentage

Below 20 0 0%
Between 20-40 16 53%
Between 40-60 14 47%
Above 60 0 0%
TOTAL 30 100%

NO. OF RESPONDENTS
0%

BELOW 20
47% BETWEEN 20-40

53% BETWEEN 40-60

ABOVE 60

Interpretation:

The above survey shows that 53% retailers belongs to the age group of 40 to 60 years and 47%
retailers belongs to 40 to 60 years. And the people below 20 & above 60 are not under retailing.

48
Q.2 Educational background of the retailer

Particulars Number of respondents Percentage

School education 5 17%
Graduate 25 83%
Profession 0 0%
Other 0 0%
TOTAL 30 100%

NO. OF RESPONDENTS

17%

SCHOOL EDUCATION
GRADUATE
PROFESSIONAL
OTHER

83%

Interpretation:
The survey shows that 17% retailers obtain school education and 83% retailers obtain
graduation degree.

49
Q.3 Do you agree, implementing GST caused higher price of goods and services?

Particulars Number of respondents Percentage

Strongly agree 5 17%
Agree 17 57%
Neutral 7 23%
Disagree 1 3%
Strongly disagree 0 0%
TOTAL 30 100%

NO. OF RESPONDENTS
0%
3%
17%

23%
STRONGLY AGREE
AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE

57%

Interpretation:

As per the above survey, GST caused higher prices of goods according to 74% retailers fromwhich
17% strongly agreed and 57% agreed. While,23% retailers said prices are neutral and 3% retailers
disagreed.

50
Q.4 What tax rates on goods should be reduced?

Particulars No. of respondents Percentage

Tax on perishable goods 18 60%
Tax on bulky goods 4 13%
Tax on valuable goods 8 27%
TOTAL 30 100%

NO. OF RESPONDENTS

27%

Tax on perishable goods

tax on bulky goods
tax on valuable goods
60%
13%

Interpretation:

The above survey shows that, GST rates should be reduced on perishable goods according to 60%
retailers and 13% and 27% on bulky goods and valuable goods respectively.

51
Q.5 What challenges are you facing after GST act?

PARTICULARS No. of respondents Percentage

Planning and implementation of new 14 47%
strategies.
Registration process 6 20%
Calculation of different tax rates on 0 0
products
Installation of GST software 10 33%
TOTAL 30 100%

NO. OF RESPONDENTS

planning and implementation

33% of new strategies
registration process
47%
calculation of different tax
rates on products
installation of GST software

20%

Interpretation:

As per the above survey, 47% retailers facing difficulty in planning and implementation of new
strategies after GST, while 20% retailers facing problem in registration process and 33% in
installation of new strategies.

52
Q.6 Do you agree, GST leads to development of retail business practices?

PARTICULARS NO. OF RESPONDENTS PERCENTAGE

Strongly agree 0 0%
Agree 4 13%
Neutral 20 67%
Disagree 6 20%
Strongly disagree 0 0%
TOTAL 30 100%

NO. OF RESPONDENTS
0% 0%

13%
20%

Strongly agree
agree
neutral
disagree
Strongly disagree

67%

Interpretation:

As per the above survey, 13% retailers agreed that GST leads to development of retail
business and 67% said the position is neutral, while 20% retailers disagreed.

53
Q.7 Is multiple tax rate structure of GST important to retail practices?

Particulars No. of respondents percentage

Very important 0 0%
Important 15 50%
Moderately important 12 40%
Unimportant 3 10%
TOTAL 30 100%

NO. OF RESPONDENTS
0%

10%

very important
important
50%
moderately important
40% unimportant

Interpretation:

The above Survey shows that multiple tax rates structure is not very important but important
according to 50% retailers and moderately important to 40% and unimportant to 10% retailers.

54
Q.8 Do you come under composition scheme of GST?

Particulars No. of respondents Percentage

Yes 3 10%
No 27 90%
TOTAL 30 100%

NO. OF RESPONDENTS

10%

yes
no

90%

Interpretation:

As per above survey, 90% retail stores are not lying under composition scheme of GST. But10% are
under composition scheme.

55
Q.9 Is GST impacts to increase your annual turnover?

Particulars No. of respondents Percentage

Yes 10 33%
No 20 67%
TOTAL 30 100%

NO. OF RESPONDENTS

33%

yes
no

67%

Interpretation:

The above survey shows that, annual turnover after GST is increased in 33% retail storeswhile
67% retailers feels that there is no increase in annual turnover.

56
Q.10 What you think, current taxation system charged on Indian retail stores is fair?

Particulars No. of respondents Percentage

Fair 19 63%
Unfair 11 37%
TOTAL 30 100%

NO. OF RESPONDENTS

37%
Fair
Unfair

63%

Interpretation:

As per above survey, according to retailers current taxation system charged on retail stores is fair as
per the response of 63% retailers and 37% retailers thinks that it is unfair.

57
Q.11 Is benefit of input tax credit on purchases under GST act is beneficial?

PARTICULARS NO. OF RESPONDENTS PERCENTAGE

Almost always 0 0%
Usually 13 43%
Occasionally 8 27%
Usually not 9 30%
Almost never 0 0%
TOTAL 30 100%

NO. OF RESPONDENTS
0%

30%
Usually
43%
occasionally
Usually not
almost never

27%

Interpretation:

As per the above survey, 43% retailers usually getting benefit of input tax credit, while 30%retailers
are usually not getting ITC benefit.

58
Q.12 What is your current profit position as compare to profit before GST?

Particulars No. of respondents Percentage

High 3 10%
Low 7 23%
Constant 20 67%
TOTAL 30 100%

NO. OF RESPONDENTS

10%

23% high
low
constant

67%

Interpretation:

The above survey shows that, profit position of 67% retailers is constant. While 10% retailers have
increased their profits and 23% retailers getting low profit.

59
Q.13 Does GST Reduced the burden of indirect taxes?

PARTICULARS NO. OF RESPONDENTS PERCENTAGE

Yes 30 100%
No 0 0%
TOTAL 30 100%

NO. OF RESPONDENTS
0%

yes
no

100%

Interpretation:

The above survey shows that, GST reduced burden of indirect taxes according to 100%
retailers.

60
Q.14 Your average profit before GST implementation?

PARTICULARS NO. OF RESPONDENTS PERCENTAGE

BELOW 100000 5 17%
100000-1000000 25 83%
ABOVE 1000000 0 0
Total 30 100

NO. OF RESPONDENTS
0%

17%

below 100000
100000-1000000
above 1000000

83%

Interpretation:

The above survey shows that, before GST the average profit of 17% retailers was below100000
RS. While 83% retailers was earning profit between 100000 To 1000000

61
Q.15 Your average profit after GST implementation?

PARTICULARS NO. OF RESPONDENTS PERCENTAGE

BELOW 100000 8 27%
100000-1000000 21 70%
ABOVE 1000000 1 3%
Total 30 100

NO. OF RESPONDENTS

3%

27%

BELOW 100000
100000-1000000
ABOVE 1000000

70%

Interpretation:

The above survey shows that, after GST 27% retailers getting profit below 100000 while70%
retailers getting it between 100000 to 1000000 Rs. and 3% getting it above 1000000.

62
Q.16 Do you agree, GST is ideal for startups of retail business?

PARTICULARS NO. OF RESPONDENTS PERCENTAGE

Strongly agree 0 0%
Agree 20 67%
Neutral 10 33%
Disagree 0 0%
Strongly disagree 0 0%
TOTAL 30 100%

NO.OF RESPONDENTS
0%
0% 0

33% STRONGLY AGREE

AGREE
NUETRAL
DISAGREE
67% STRONGLY DISAGREE

Interpretation:

The above survey shows that, GST is ideal for startups of retail business according to 67%retailers
and 33% retailers said that it is neutral.

63
Q.17 Does the change in process of registration effected your business?

PARTICULARS NO. OF RESPONDENTS PERCENTAGE

Positive 12 40%
Negative 6 20%
No effect 12 40%
Total 30 100

NO.OF RESPONDENTS

40% 40% positive

negative
no effect

20%

Interpretation:

The above survey shows that, after GST the effect of registration is positive according to 40% retailers
while 20% retailers said that the effect is negative.

64
Q.18 GST leads to improvement of your business efficiency level.

PARTICULARS NO. OF RESPONDENTS PERCENTAGE

Very true 0 0%
Somewhat true 19 63%
Not very true 11 37%
Not at all true 0 0%
TOTAL 30 100%

NO.OF RESPONDENTS
0% 0%

37% VERY TRUE

SOMEWHAT TRUE
NOT VERY TRUE
63% NOT AT ALL TRUE

Interpretation:

As per the above survey, GST leads to improvement of business efficiency level is somewhat true
according to 63% of the retailers out of 100 while 37% retailers said that it is not a true statement.

65
Q.19 How GST impacted your business to become competitive in the market?

PARTICULARS NO. OF RESPONDENTS PERCENTAGE

Extremely 0 0%
Moderately 5 17%
Slightly 25 83%
TOTAL 30 100%

NO.OF REPONDENTS
0%

17%

EXTREMELY
MODERATELY
SLIGHTLY

83%

Interpretation:

As per above survey, 83% retailers feels that GST slightly impacted to become retail business
competitive in the market, while 17% retailers feels that it is moderately impacted to become
competitive in the market.

66
 4.2 HYPOTHESIS

1.
Increase in turnover / Yes No
Composition scheme
Yes 0 1

No 10 19

Total 10 20

Non parametric test - Chi square test for the following data

H0: There is no significance difference between the Increase in turnover and Composition
Scheme.
H1: There is significance difference between the Increase in turnover an Composition
Scheme.

Chi-square

χ2= ∑ (Oij-Eij) 2 ÷ Eij

= (0-0.3333)2 ÷ 0.3333+ (10-9.6667)2 ÷ 9.6667+ (1-0.6667)2 ÷ 0.6667+ (19-19.3333)2 ÷

19.3333

= 0.11110.3333+0.11119.6667+0.11110.6667+0.111119.3333

= 0.3333+0.0115+0.1667+0.0057

= 0.5172

Degree of freedom (df)

df = (2-1)⋅(2-1)=1

For 1 df, p (χ2 ≥ 0.5172)

=0.472

Since the p-value (0.472) > α (0.05) (one-tailed test), we can't reject the null hypothesis H0.

Interpretation

There is no significance difference between benefit of composition scheme and increase in

turnover of retailer. Hence we can‟t reject the null hypothesis.

67
2.

Particulars Almost Usually Occasionally Usually not Never

always
ITC on
perishable 0 11 4 5 0
goods
ITC on bulky
goods 0 2 1 1 0

ITC on
valuable 0 4 1 1 0
goods
0 17 6 7 0
Total

Using One-way ANOVA method

Observation A B C D E
1 0 11 4 5 0
2 0 2 1 1 0
3 0 4 1 1 0

H0 : There is no significant differentiating between samples

H1 : There is significant differentiating between samples

F(2,12) at 0.05 level of significance

=3.8853

As calculated F=1.9079<3.8853
So, H0 is accepted.

Interpretation:

There is no significance difference between tax rates reduction and Input Tax Credit.

68
 CHAPTER – V
FINDINGS, CONCLUSION AND SUGGESTION

FINDINGS

 The questions were asked to owners of retail stores and more than 60% retailers are
graduate.
 100% retailers agreed that GST reduced the burden of indirect taxes.
 Usually Input tax credit is available to most of the retailers.
 According to 74% of retailers implementing GST results in higher prices of goods and
services.
 Only few retailers thinks that GST leads to development of retail business practices.
 Benefit of Composition scheme under GST is a helpful to small traders.
 There are no high changes in profits of retail businesses after GST.
 63% of retailers agreed that current taxation system is fair.
 GST slightly impacted retail business to become competitive in the market.
 As per 40% retailer‟s registration process makes a positive impact.

69
 SUGGESTIONS:

 There should be more simplifications in installation of GST software with minimum prices.
 An intense and deep training is needed to make the work force entirely capable of handling
the new tax regime. Moreover workshops and conferences may add up to increase the
knowledge about GST.
 Concept of input tax credit requires a large volume of data to be matched between supplier
and receiver. These processes shall be simplified.
 Rates shall be rationalized and unified to make India competitive and in interest of economic
development of the country and reduce complications.
 GST should not lead to regional imbalance in items of resources and responsibility among
governments. A due care of it shall be taken.
 A proper monitoring system shall be constructed to manage unreal registrations and refunds
filed as these are the areas where loopholes invisibly exist.
 As per the survey tax on perishable goods should be reduces.
 There should be more awareness about GST in retailers.

70
 CONCLUSION:

India has experienced one of the greatest indirect tax reforms in its history. GST is a powerful concept
in the field of indirect taxation. GST has now been in India for about 4 years. It has subsumed almost
all the indirect taxes and unified the nation under one tax umbrella of GST. Also, with retail sector
there are many areas remain untouched before GST.

In this study I have made an attempt to search for an impact of GST on retail stores. As discussed
earlier it has reduced the burden numerous tax complications, which has made the products of basic
need much cheaper than earlier, thus making it accessible for poor section of the society. It can be
further concluded that GST have a positive impact on various sectors and industry along with retail
sector.

As per the survey of retail stores GST made many simplifications in registration process, filing
process, calculations and applications of rates. It helps to reduce the prices of goods and services.
GST also provides benefit of composition scheme to small traders and ITC i.e. Input Tax Credit for
registered dealers. The major benefits include the reduction in tax multiplicity, free flow of goods and
services etc. these benefits have a major contribution towards sustainable development of the country.

It can be concluded from the study that there is a transition of current taxation system into unified
taxation system across the nation. Its effect has been felt by every Indian as it is reflected in the retail
business throughout different states of India. The paper briefs about the benefits of GST and the
various aspects involved in implementing the GST in supply chain i.e., Manufacturer to consumer. It
is a testing time for the Indian business systems as there are huge positive and negative impacts on
particular businesses and consumers as well.

71
 BIBLOGRAPHY

 www.gstindiaexpert.com

 www.gstindia.com.

 www.indianretailer.com

 https://cleartax.com

 www.intechsystems.com

 www.quora.com

 Text Book of Tax of Semester V Goods

and Service Tax Ainapure
Manan Prakashana

72
 APPENDIX

1. Age of the retailer.

a) Between 20 -40
b) Between 40-60
c) Above 60
2. Educational background
a) School education
b) Graduate
c) Professional
d) Other
3. Do you agree, implementing GST caused higher price of goods and services?
a) Strongly agree
b) Agree
c) Neutral
d) Disagree
e) Strongly disagree
4. What tax rates on goods should be reduced?
a) Tax on perishable goods
b) Tax on bulky goods
c) Tax on valuable goods
5. What challenges are you facing after GST act?
a) Planning and implementation of new strategies
b) Registration process
c) Calculation of different tax rates on various products
d) Installation of GST software
6. Do you agree, GST leads to development of retail business practices?
a) Strongly agree
b) Agree
c) Neutral
d) Disagree
e) Strongly disagree

73
7. Is multiple tax rate structure of GST important to retail practices?
a) Very important
b) Important
c) Moderately important
d) Unimportant
8. Do you come under composition scheme of GST?
a) Yes
b) No
9. Is GST impacts to increase your annual turnover?
a) Yes
b) no
10. What you think, current taxation system charged on Indian retail stores is fair?
a) Fair
b) Not fair
11. Is benefit of input tax credit on purchases under GST act is beneficial?
a) Almost always
b) Usually
c) Occasionally
d) Usually not
e) Almost never
12. What is your current profit position as compare to profit before GST?
a) High
b) low
c) constant
13. Does GST Reduced the burden of indirect taxes?
a) Reduced burden
b) Not reduced burden
14. Your average profit before GST implementation?a)
Below 1,00,000
b) 1,00,000 to 10,00,000
c) Above 10,00,000
15. Your average profit after GST implementation?a)
Below 1,00,000

74
 b) 1,00,000 to 10,00,000
c) Above 10,00,000
16. Do you agree, GST is ideal for startups of retail business?
a) Strongly agree
b) Agree
c) Neutral
d) Disagree
e) Strongly disagree
17. Does the change in process of registration effected your business?
a) Positive effect
b) Negative effect
c) No effect

20. GST leads to improvement of your business efficiency level.

a) Very true
b) Somewhat true
c) Not very true
d) Not at all true
21. How GST impacted your business to become competitive in the market?
a) Extremely
b) Moderately
c) Slightly

75