University of Mumbai

Impact Of Gst On Small And Medium Enterprises

A Project Submitted to

University of Mumbai for partial completion of the degree of

Master of Commerce

Under the Faculty of Commerce

By

YADAV RAKESH VIJAYSHANKAR

Under the Guidance of

PROF. Priydarshan Sir

Sree Narayana Guru College of Commerce

PL Lokhande Marg Chembur (W), Mumbai, Maharashtra 400089

DECLARATION
I the undersigned YADAV RAKESH VIJAYSHANKAR here by, declare that the work embodied in
this project work titled forms my own Indirect Impact Of Gst On Small And Medium
Enterprises- contribution to the research work under the guidance of “Prof. Priydarshan Sir” a
result of my own research work and has not been previously submitted by any other university for
any other degree/diploma to this or any other university. Wherever reference has been made to
previous work of other, it has been clearly indicated as such and included in the bibliography I,
here by further declare that all information of this document has been obtained and presented in
accordance with academic rules and ethical conduct.

SREE NARAYANA GURU COLLEGE OF COMMERCE

PL LOKHANDE MARG CHEMBUR (W), MUMBAI, MAHARASHTRA 400089

CERTIFICATE
 This is to certify that YADAV RAKESH VIJAYSHANKAR has worked and duly Completed his Project
Work for the degree of Master of Commerce Studies under the Faculty of Commerce in the subject of and his
project is entitled, “Impact Of Gst On Small And Medium Enterprises- Under my supervision

I further certify that the entire work has been done by the learner under my guidance and that no part of it
has been submitted previously for any Degree or Diploma of any University.

It is her/ his own work and facts reported by her/his personal findings and investigations.

“Prof. Priydarshan Sir ”

College Seal

Date of submission:

Project Guide Coordinator Principal External

ACKNOWLEDGEMENT

I would like to acknowledge the following as being idealistic channels and fresh dimensions in the
completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do this project.

I would like to thank my Principal, Dr Ravindran Karathadi for providing the necessary facilities required
for completion of this project.
I take this opportunity to thank our Coordinator for her moral support and guidance.

I would also like to express my sincere gratitude towards my project GUIDE “PROF. Priydarshan sir”
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.

INDEX

Sr. No TITLE OF CHAPTER PAGE NO.

1. CHAPTER – 1 6
INTRODUCTION
2. CHAPTER – 2 37
RESEARCH METHODOLGOY
3. CHAPTER – 3 41
REVIEW OF LITERATURE
4. CHAPTER – 4 45
DATA ANALYSIS
5. CHAPTER -5 55
CONCLUSION, SUGGESTIONS AND
RECOMMENDATIONS
6. BIBLOGRAPHY 61

7. APPENDIX 62

CHAPTER – 1

INTRODUCTION
Micro, Small and Medium Enterprises (MSMEs) are an extremely vibrant and dynamic
sector of the Indian economy with over 6 million entities employing more than 11
millionpeople (right next to agriculture) and accounting for 28% of GDP and 40% of them
haveexports. Like other sectors, MSMEs have been impacted during COVD 19 in terms of
productivity. Accordingly, the efficiency and productivity of MSMEs is of further
importance to achieve the overall goals of economic development and a V-shaped recovery
of the Indian economy. The sector is quite diversified, including activities in agro-based
industries and housing surplus labor from structural change, as well as rural hinterland
service centers. In addition, MSMEs also work with domestic and externalcompanies to
develop manufacturing and multi-track supply chains. MSMEs extend theirdomain across
economic sectors, producing a diverse range of products and services tomeet the demands
of domestic and global markets. A number of statutory and non-governmental bodies work
under the aegis of the Ministry of MSME
Problems of GST:
Even after four years of GST implementation, taxpayers still face challenges in
navigatingthe ever-changing nuances of the GST law. The big challenge at GST could be
the integration of the small and medium-sized companies. Most small and medium-
sizedbusinesses may not have the technical know-how to adapt to this massive shift.
Duringthe introduction of the GST in July 2017, certain petroleum products and electricity
were kept outside of the GST for later inclusion in the GST regime. However, even after 4
yearsthere is still no clarity about their inclusion in the GST system. Taxpayers also
strugglewith frequent changes to the ITC regulations. Ant trading regulations were put in
place toensure that the benefits derived from the introduction of GST are passed on to end
users.However, no guidelines for evaluating profiteering have been issued, leading to
differing.
Commerce expects the government to issue notices/circulations reasonably well in advance
and not at the last minute to allow taxpayers to plan their activities smoothly.The
ambiguity surrounding appropriate GST rates/classification of specific goods and services
(e.g. applicable rate for purified/treated water, exploration-related services, automotive
components, etc.) is another challenge. The GST was originally developed to simplify the
whole tax structure and therefore a single tax rate was proposed. This is the experience of
other countries that have implemented GST around the world. The unwritten principle in
GST is that you reduce the plates, which is why most countries have kept only one plate
from GST. But in the Indian context there is 0% slab, 5% slab, 12% slab, 18% slab and
28% slab. In addition, a new plate of 3% has been introduced specifically for gold. Under
the GST, an assessed files 37 returns per year (3 returns per month and 1 return per year).
This is in contrast to the 13 Returns Chapter I: Introduction Page | 23 submitted by an
examinee in he pre-GST era. Despite several challenges ahead of the GST, there are also
manyperspectives, which are discussed below.
Prospects of GST:
Prior to the introduction of GST on the production, supply and sale of goods and services,
separate taxes were levied at different rates by the Centre, States and Union Territories.
Centers levy an excise tax on the manufacture or production of goods, a service tax on the
supply of goods, and states levy an input tax on the importation of goods into the states
2897 | Viswanatha S R Impact Of Gst On Small And Medium Enterprises-A Study
for sale, and sales taxes on the sale of the same goods. The GST brought uniformity to the
tax system across the country. It eliminated the tax cascading effect that existed in the pre-
GST era due to multiple types of taxes. GST requires keeping a tax invoice and filing tax
returns through a computerized and online method. This prevents tax evasion, which
ultimately leads to an increase in tax revenue despite the low tax rate. A variety of central
and state taxes resulted in a complex indirect tax structure in the country, which made
calculating taxes difficult by requiring different experts with knowledge of different
lawsBut the GST resulted in high and hidden compliance costs for trade and industry.
Within the framework of the GST, every entrepreneur, whether goods manufacturer,
wholesaler or retailer, receives an invoice from the goods supplier to claim the input tax
credit. Therefore, goods suppliers can be easily identified and there will be less chance of
wrong goods being delivered. In order to attract industries in the states, the state
governments offered various types of rebates and incentives, resulting in lost revenue for
the state governments. Under GST, tax rates and exempt goods will be consistent. The
adverse trade effects due to different Value Added Tax (VAT) rates across states have been
eliminated as the GST rate will be consistent across states. The abolition of CST and Entry
Tax, check posts at the state border are no longer required, which has reduced the time for
goods transportation. The abolition of checkpoints at state borders has facilitated
interstate trade. GST is a tax on the supply of goods or services. Regardless of whether a
process is manufacturing or not for collecting excise duty, whether a transaction is for sale
of goods or not for collecting VAT, whether a transaction is for sale of goods or the
provision of services, these disputes will not arise upon the collection of GST. Exports are
zero rated in GST. The exporting industry would be able to have internationally
competitive prices as there is no cascading effect under the GST as a pre tax credit is
available for all taxes paid. Before that, type Chapter I: Introduction Page | A 24 tax credit
was not available for some taxes such as CST, Entry Tax, Excise Tax when calculating VAT.
Some measures were also suggested to deal with the current challenges of the GST.

* IMPACT OF GST*

1. Basic Threshold Limit for goods and services helping MSMEs. With GST in place, the
Micro Small and Medium Enterprises (MSMEs) got lot of benefits in terms of compliance
reliefs in the form of “threshold exemptions”, “Composition levy schemes”, “Quarterly
filing of the GST returns” to mention a few. In a major relief to MSMEs, the GST Council
doubled the tax exemption limit to Rs. 40 lakh in annual revenue. Similarly, the turnover
limit for businesses availing of the GST composition scheme, which allows them to pay tax
on goods and services at a flat rate, was raised to Rs.1.5 crore. The move aims to allay the
concerns of small traders. For north eastern and hilly states, the GST exemption limit has
been doubled to Rs.20 lakh. However, even though the current threshold limit has been
increased as above, some of the MSMEs may still want to be part of the GST chain, while
some may actually opt for composition scheme. The move to raise the threshold for GST
registration is significant, as it would help the MSMEs who had been badly hit by various
problems like demonetization, and business disruption in the early days of GST
implementation and creditsqueezes etc.
Bringing about major changes in the composition scheme, the turnover limit for goods was
raised to Rs. 1.5 crore from Rs. 1 crore which will also benefit the Service providers with a
turnover limit of up to Rs. 50 lakh to avail of the composition scheme as well at a rate of
6%. The composition scheme allows MSMEs to do away with tedious tax filing formalities
and pay GST at a flat rate. Businesses registered under the composition scheme are
required to pay GST at 1% to 6% depending on the type of business activity conducted by
the registered person/business entity.
2. High Compliance burden on the MSMEs.
After the initial bumpy ride, MSMEs, who had faced problems with GST compliance and
cash flows, are gradually settling down and adapting to the new indirect tax regime. A few
MSMEs have confirmed that the procedures of GST are getting easier day by day. The
uncertainty over input tax credit had been a dampener for quite some time for MSMEs as
it impacted their cash flow, but the proposed simplified return filing system is expected to
make the input tax credit flow smoother. Initially, MSMEs faced problems with GST
compliance and had to make certain modifications in their systems. Further, a number of
small taxpayers have opted for composition registration wherein they have to pay tax at a
specified percentage of their turnover.their monthly transactions with a view to ensure that
no activity has escaped the ambit of compliance. Similarly, the lack of a timely disposal of
refunds had impacted the cash flow for exporters of both goods and service. MSME
segment exporters had been affected due to the blockage of working capital. "However, the
new fully electronic refund process system announced under Circular No. 125/44/2019 –
GST, has ensured that the input tax credit is made available to the buyer on accepting the
invoices uploaded by the supplier. This introduction of electronic refund process should
immensely benefit the MSMEs. Further, since GST demands high automation of business
processes, the MSMEs had to spend enormous amount of time, money and energy on
development and maintenance of IT infrastructure. The introduction of a single quarterly
return for MSME sector has reduced the compliance burden and the MSMEs can now
focus on business development and growth instead of compliance aspects.
3. Adverse impact of Taxation under reverse charge for un-registered taxable
personsUnlike forward charge where the supplier of goods or services pays the tax on
supply, in case of Reverse Charge, the receiver becomes liable to pay the tax, i.e., the
chargeability gets reversed. This means that the GST will have to be paid directly by the
receiver to the Government instead of the supplier. The registered dealer who has to pay
GST under reverse charge has to do self-invoicing for the purchases made. For Interstate
purchases the buyer has to pay IGST and for Intra-state purchases CGST and SGST has to
be paid under RCM by the purchaser. Also, under Section 24 of CGST Act – Compulsory
registration in certain cases - all taxpayers required to pay tax under reverse charge have
to register under GST irrespective of the threshold limit applicable to them.
Thus, if any goods or services are supplied by a person who is unregistered andsupplied to
a registered person, then GST needs to be paid by the registered person under reverse
charge as a recipient. Further, if any MSME who does not take registration under GST and
claims the basic exemption threshold, then the person receiving goods or services from such
MSMEs need to pay GST under reverse charge mechanism. The above provision of RCM
has a very high negative impact, since businesses would definitely not prefer to deal with
any unregistered persons and to take the additional burden of compliance under reverse
charge mechanism. Therefore, this provision directly impacts the business of MSME Sector
negatively and virtually forces them to either register or shut the businesses which anyhow
is not the intention of the law makers.
4. Taxation on stock Transfers and deemed supplies between distinct persons: -
Valuation, which is the substance for levy, collection and administration of taxes, always
impacted indirect tax laws over the past years and GST is no exception to it. It is quite
common for an MSME having PAN India transactions to transfer its stock to its other
units, depos, warehouses to cater to timely delivery orders from different Geographical
Locations. Under the previous tax regime inter- state or intra-state stock transfers were
subjected to levy of Excise Duty on removal of Goods. Under the GST law tax collected
only on supply of Goods with or without consideration being paid or agreed to be paid. Per
clause 3 read with schedule I of GST law, a supply of goods by a taxable person to another
taxable person or non-taxable person during furtherance of business without consideration
is also included within the ambit of ‘supply’. Further, the subject matter of concern would
be the valuation of the stocks being transferred and the availability of Input Tax Credit.
With the shift of taxable event from sales to supply, stock transfers under GST would be
taxed and this scenario would certainly impact key MSMEs to the extent of savings in
procurement contracts, impact on free supplies, discount schemes, impact on product
pricing, and the overall financial impact of GST. Unlike earlier indirect tax regime, under
GST regime, stock transfer of goods/services between distinct persons is made liable to tax.
This step shall lead to blockage of working capital apart from high compliance burden. It
shall also defeat the idea of GST i.e. to have a free flow of goods anywhere and to create a
commonnational market. MSME’s do not have adequate capacities, technology, manpower
and with this complex requirement of the law. However, since GST is a destination-based
consumption tax, it is suggested todefer the taxation on stock transfers at least to the point
when such goods are actually sold, or provide for refund of the excess unutilized credit of
stock transfer in line with exports to help MSMEs.
5. Return of Goods sent on sale on approval basis and time limit thereof.
Sale on Approval is a business arrangement wherein an individual or company who is
interested in purchasing a specific item is allowed to use the item for a given length of time.
At the end of that time, if the individual is satisfied with the item, they agree to purchase it.
However, if the individual is unsatisfied for any reason, they are allowed to return the item
and are not committed to purchasing it. Unlike “consignment sales”, “sales on approval”
basis is not deemed as supplies under GST. Hence, the principal can send the goods to the
agent by issuing a delivery challan instead of a tax invoice, and without charging GST on
the same. Once the goods are sold by the agent to the end customer, it implies that the agent
has accepted the goods received on approval. Once this sale has been ratified by the agent,
the principal can then issue the tax invoice, and charge GST. The agent, at his end, can
collect the purchase invoice, and avail the input tax credit on the GST paid while filing his
returns and paying the output GST liability to the government.
A tax invoice should be issued for Sale on Approval before or at the time of supply OR6
months from the date of removal of goods from factory/godown. If the goods are not
approved within 6 months or if the agent has not ratified any sales within 6 months, it will
be deemed that sales of the said goods has taken place and a tax invoice will need to be
raised by the principal. If the Goods are returned within 6 months, for those goods, which
have been sent on an approval basis but are returned or rejected within a maximum of
period of six months, no tax will be payable, subject to an extension of maximum of 2
months by the Commissioner on merit. Under GST, the maximum time limit for the return
of goods sent on sale or return basis is 6 months and if the same is not approved within the
said time limit then an invoice needs to be issued and the goods shall be deemed to have
been supplied. In case of various MSMEs, the norms are to send goods to Consignment
Sales Agents (CSA) and customers on a “sale or return” basis. However, putting a time-
limit on return of goods would have negative impact on such sectors. Therefore, to help
such MSMEs it is suggested to remove this provision and continue with the practice of
paying GST only when actual supply takes place.
6. Tax on Advances
Generally, GST is imposed on a supplier of goods and service at the time of receipt of
payment. However, in some cases, an advance payment is first made to the supplier by the
recipient of the goods or/and service or both. When a payment is made ahead of its actual
schedule such payment is also termed as advance payment. In addition to this, sometimes
the supplier of the goods and service demands an advance payment as a safeguard against
non-payment, or to cover its costs for supplying a product or rendering of a service. As
mentioned above advances received against supply of goods and/or services are taxable in
GST regime. Collection of GST on advances would be cumbersome and requires high
compliance and tracking. Moreover, it is possible that advance may have been received for
intra-state as well as inter-state supplies of goods and services and attracting multiple rates
and, therefore, the possibility of paying incorrect tax or determining incorrect place of
supply. Further, in certain business, advances would be received for multiple supplies and
in such circumstances individual identification of advances and matching of the same with
the corresponding supply for determining rate and place of supply shall be an additional
burden. Therefore, with the limited technological advent and resources in a MSME sector,
compliance with the provision of GST on advances would be difficult and lead to
unnecessary non-compliances. Therefore, it is suggested to allow the MSME sector to pay
GST only on invoice basis which would ease the compliance and cash flow burden of
MSMEs.
7. Non-availability of Composition Scheme.
Composition Scheme is a simple and easy scheme under GST for taxpayers. Small
taxpayers can get rid of tedious GST formalities and pay GST at a fixed rate of turnover.
This scheme can be opted by any taxpayer whose turnover is less than Rs. 1.5 crore as
notified by CBIC.A manufacturer of ice cream, pan masala, or tobacco, A person making
inter-state supplies, A casual taxable person or a non-resident taxable person, and
Businesses which supply goods through an e-commerce operator, cannot opt for
Composition Scheme. Nonavailability of composition scheme to those who are supplying
services or making any supply of goods which are not leviable to tax under the Act or if any
inter-state supply is made, seems to be harsh on such person. It is, therefore, suggested that
eligibility for composition scheme be based on the turnover during a particular financial
year and be made available uniformly to all suppliers whether supplying goods or services
or both anywhere in India. Alternatively, Sector specific composition schemes may be
designed to cater to need of different sectors. The embargo placed on effecting inter-State
supplies by the taxable person opting to pay tax under the composition scheme must be
done away with to benefit MSMEs.
8. Payment and filing of return for availing input tax credit: -
Once invoice is issued by a supplier under Section-31 with applicable tax reflected on it,
anonerous burden is being cast on recipient to prove tax has been deposited by the supplier.
The condition of tax to be deposited by the supplier to the credit of appropriate
Government in order to enable the purchaser to avail the input tax credit on such supply
made may cause undue hardship to the assesses. It is suggested that the pre-conditions
relating to payment of tax to the credit of Government and mandatory filing of return be
deleted and the same must be reconsidered and liberalized to enable the MSMEs to avail
input tax credit of tax paid by them as was prevailing in case of CENVAT credit rules
wherein credit can be taken immediately on receipt of goods/ receipt of
invoice.Alternatively, if a supplier has accepted the liability of such taxes and has also
disclosed the same in his statement of outward supply, the credit must be made eligible to
the recipient irrespective the payment by the supplier to the credit of government. Or else,
if the Government believes that certain taxable persons in the unorganized sector may not
deposit the collected tax to Government, the concept of reverse charge can be made
applicable to them instead of denying/ delaying the credit based on the non-compliance by
other party to the contract.
9. Power to Arrest &Prosecution: -
If the Commissioner of CGST/SGST believes a person has committed an offence u/s 132, he
can be arrested by any authorized CGST/SGST officer. The arrested person will be
informed about the grounds of his arrest. He will appear before the magistrate within 24
hours in case of cognizable offence. Offenses u/s 132 where arrest provisions become
applicable are as under: -
 A taxable person supplies any goods/services without any invoice or issues a false invoice
 He issues any invoice or bill without supply of goods/services in violation of the
provisions of GST
 He collects any GST but does not submit it to the government within 3 months
 Even if he collects any GST in contravention of provisions, he still has to deposit it to the
government within 3 months.
 He has already been convicted of an earlier u/s 132 i.e., this is his 2nd offense.
A Commissioner of CGST or SGST can authorize an arrest of a person if he “has reason to
believe” that the person has committed any offence punishable under the GST law. The
person can be arrested even if such a person has not been issued a show cause notice
intimating the alleged violation and even if the investigations are yet to be concluded. It
also does not make a difference whether the alleged tax-liability is on account of deliberate
tax-evasion or is simply a differential tax liability in a genuine and bonafide dispute. Such
provisions relating to arrest, prosecution etc. are very stringent for lapses under GST which
puts more burden on MSMEs.
10. Determination of Place of Supply and the type of taxes.
Under GST 3 types of taxes can be charged in the invoice. SGST and CGST in case of an
intra-state transaction and IGST in case of an interstate transaction. But deciding whether
a particular transaction is interstate or intrastate is not an easy task. Hence Time, place,
and value of supply important under GST. Time of supply means the point in time when
goods/services are considered supplied’. When the seller knows the ‘time’, it helps him
identify due date for payment of taxes. Usually, in case of goods, the place of supply is
where the goods are delivered. So, the place of supply o goods is the place where the
ownership of goods changes. If there is no movement of goods, the place of supply is the
location of goods at the time of delivery to the recipient. Generally, the place of supply of
services is the location of the service recipient. In cases where the services are provided to
an unregistered dealer and their location is not available the location of service provider
will be the place of provision of service. Value of supply means the money that a seller
would want to collect the goods and services supplied. The amount collected by the seller
from the buyer is the value of supply. Since, GST is a destination-based consumption tax,
wherein taxes would accrue to the destination state, Government has provided provisions
for determining the place of supply in various situations. Hence under GST, small
businesses have to identify place of supply for each of their transactions and accordingly
GST needs to be paid to the credit of respective governments which shall be a cumbersome
task. Further, in case the place of supply is not correctly determined then tax needs to be
again paid to correct government and the taxes paid earlier needs to be claimed as refund.
It is suggested that law be amended so that in case tax is wrongly paid to incorrect
government, then instead of again paying the tax and applying for refund, such
government can itself do an inter-governmental settlement which shall ease the taxation
law.
1.2.9 DISADVANTAGES OF GST
These are the drawback of the good and services tax in India:
1. Transition proved complex: when the marketer shifted to the new tax rate it
producemany problem to the marketer which leads to relaxations by the GST council.
2. Change in software: marketer have to shift their accounting which is ESP software
toGST software. Purchasing of new software lead to increase in the cost.
3. Multiple tax rate: GST have 5 tax slab rate 0%, 5%, 12%, 18% and 28%.
4. Multiple state registrations: business now needs to register for GST in every state they
are doing or operating their business.
5. Professional needed: GST creates a need for a professional body in small business and
new formed business also need to Heir professional for GST works.
6. Increase in operational cost: by employing professional for GST complaint lead to
increase in the operation cost of the business.
7. Computerized GST: GST has to be filled online with the help of a computer but some
business does have computer on their small shops and many people do not know how
computer works which lead to many problem.

CHAPTER-2
LITERATURE REVIEW

2.1 International review

2.1.1(Benedict, 2011) Author examines the aspects of the Australian GST law that deal
withfinancial services in order to determine if they have been properly construed in terms
of thelegislation's original meaning and how the issues raised can be addressed.
2.1.2(Emmanuel, 2013)Author explored the correlation between VAT, increased VAT costs,
and Nigerian economic development and tax revenue. The author has proposed two null
hypotheses for this analysis, both of which have been confirmed after the review has been
completed. Given the close relationship between the two, the author concludes that the
government and authorities should properly inform the consumers about the importance of
VAT so that they can more comfortably consider increases in VAT prices.
2.1.3(Fathi, 2012)Using a variety of experimental approaches, the authors investigated the
relationship between the rate of value added tax and public value added tax evasion. They
come to the conclusion that there is no correlation between the two since in many countries
with high VAT rates, enforcement is also high, and in countries with low VAT rates, evasion
is high.
2.1.4( Ahmad, 2010)in this article, the author discusses the Pakistani government's plans to
introduce a general sales tax. The author has addressed Pakistan's current indirect tax
regime, its past, and the changes suggested by the National Taxation Reforms Commission,
before highlighting the problems and advantages of the proposed reforms.
2.1.5(Genpact, 2011)In this article, Genpact summarizes how the results of a study they
performed for a manufacturing customer who was subject to European VAT saved money
as a result of some procedure improvements in the client's handling of VAT-related
compliances.
2.1.6(Gelardi, 2013)The author of the paper examined the potential effect on consumers of
the new National Consumption Tax to be implemented in the United States, as it would
result in higher prices for consumers. This new tax would be nationwide, in addition to the
various states' current sales taxes.
2.1.7 (Collins, 2014)in this article, the author examines and evaluates household payments
to direct tax and indirect tax revenues in Ireland. Furthermore, the importance of these
donations is examined in light of Ireland's latest indirect tax reforms.
2.1.8 (Zhou, 2013)in this article, the writers look at the Malaysian GST. The writers have
outlined the current problems in the Malaysian economy and compared them to the
planned GST. The effect of the goods and services tax on price levels, economic
development, revenue production, and other factors is also examined in the report. GST,
according to the report, will lower costs and raise GDP in general.
2.1.9 (Roshidi , 2016) Research aims to determine the extent of GST taxpayers'
understanding and interpretation in Malaysia. The participants in this sample were only
256 civil servants who worked as secondary school teachers in the kaula kangsar district of
Perak. Data is collected with the help of questionnaire. The results reveal that the GST has
a low to strong negative view among respondents.
2.1.10(Feria, 2009)in this article, the authors compare indirect taxation in Australia and the
EU, focusing on financial services, to see if the Australian good and services tax system is
better. Even, if the Australian system is superior, are there any elements that should be
introduced in the EU?
2.2 National reviews
2.2.1(sharma , 2018)in this study author talk about the GST and its advantages and
disadvantages. History of GST in India is also been explained by the researcher, study also
talks about the effect of GST in India in consumer and will the GST will help the economic
in the growth or not. GST is a big leap in indirect taxation system. Study is based on proper
fact and primary date is called with the help of questionnaire. The question under the
questionnaire is easy to understand and with the help of thus questionnaire we can make an
estimate whether the consumer are satisfy with the GST tax slab or does it require some
changes in it. 2.2.2(Garg, 2014)This study is based on the effects of GST and the historical
context of Indian taxes and tax system, as well as the obstacles, risks, and possibilities that
GST presents to our market economy. Based on the implications of GST with a brief
history of Indian taxes and tax structure, and addressed the potential obstacles, risks, and
possibilities that GST presents to improve our free market economy.
2.2.3(fintapp, 2017)this study is based on the consumer durable goods. This study talks
about the type of the consumer durable goods industries which are available in our
country. There are three types of consumer durable industries in India and these industries
are as follows, white, brown, consumer electronic. Revenue of consumer durables good
industry and how much growth in their revenue we can expect in the near future.
2.2.4(bhat, 2014)this article discusses about the e-governance of India's value added tax
system which is based in India and special preference is given to Goa and Kerala. Up until
2005, India had a very complex sales tax scheme. In 2005, a number of states, including
Goa and Kerala, switched from sales tax to the Value Added Tax. The availability of ITC on
imported products was the key benefit of VAT.
2.2.5(Guptha , 2014)According to her research, implementing GST in the Indian context
would result in commercial advantages that are not available under the VAT scheme, which
would essentially contribute to economic growth.
2.2.6(Adhana, 2015)this study is based on GST and its type. What is the aim of this taxation
system and what are the opportunities that a free market economy would provide?This
study helps us to understand the concept of GST and what is CGST, SGST, and IGST are.
In this study GST concepts is well explained with well-defined examples.
2.2.7(Rajamani, 2018)this study is aim to determine the impact of GST on the Indian
economy. In this study author would like to share his knowledge regarding the GST. Study
is based on the concepts of CGST, SGST and IGST. In this effect of GST on different
sectors is also shown and what are the positive of GST and its negative where explained in
the full detailed.
2.2.8(BHATIA, 2020)This study is based on the impact of GST on export goods and author
tell us how we can to export at 0% GST and are the ways by which we can claims this 0%
GST rate on export. This study is based on the detail analysis of the data related to the
export. In this study author talks about LUT methods by which we can claim 0% GST rate
on exports.
2.2.9(control, 2021)This article is based on the GST revenue collection of 31 march 2021 in
this year GST revenue collection breaks all past record by collecting 1, 23,902crore of
which CGST is Rs 22,973 crore, SGST is Rs 29,329 crore, IGST is Rs 62,842 crore
(including Rs 31,097 crore collected on import of goods) and cess is Rs 8,757 crore
(including Rs 935 crore collected on import of goods)," according to an official statement.
2.2.10(times, 2016)this article is based on the consumer durables goods tax slab rate should
be some down from 28% to 18%. Consumer have to bear the GST tax burden on consumer
durables goods because of high tax rate its lead to increase in the price of consumer
durable goods.
 CHAPTER -III
RESEARCH METHODOLOGY

3.1 OBJECTIVE OF THE STUDY

 To understand the relation between GST and price inflation of consumer durable goods
 To understand GST more deeply.
 To understand consumer durables goods more deeply.
 To find out the advantages and disadvantages of GST.

3.2 RESEARCH HYPOTHESIS

H0:- There is no significant difference between the education qualification level and their
satisfaction towards the current GST slab rates of consumer durables goods. H1:- There is
significant difference between the education qualification level and their satisfaction
towards the current GST slab rates of consumer durables goods.

3.3 SCOPE OF THE STUDY

This study is done for finding out the effect of GST on consumer durables goods and on
consumer views on GST. This study is based on the respondent/consumer selected form the
Bhopal to find out their consumption pattern. Respondent are selected form the mixed
group which is wider difference in understanding. Scope of the research is small because of
its limited area.
3.4 RESERCH DESIGN
 Geographical area: this research is based on the respondent which is located in Bhopal.
 Duration of the study: 1 month
 Simple size: 100respondentsare selected for filling questionnaire.
 Sampling technique: judgment sampling is taken for the study (Those respondents are
select which have knowledge regarding GST)
 Data collection instrument: Information gathering is very important for any researcher.
Information is divided into two parts primary data and secondary data. Primary data is a
type of data in which data is collected by the researcher and it’s done by taking
questionnaire. Secondary data is a type of data which is already been collected by the other
but its utilized by the researcher.
In this study researcher have taking primary data for analysis purposes. In primary data
questionnaire is created with the help of Google form and this form is based on the topic
impact of GST on consumer durable goods. In this questionnaire respondent are selected
form Bhopal. Secondary data ,Journal,Research paper, Internet, Books.

 Data collection producer:

Primary data is collected with the help of a questionnaire which was in the form of Google
form. This Google form is distributed among the respondent of Bhopal with the help of
social media apps like Facebook, twitter, WhatsApp, Instagram, Discord etc. this a type of
a questionnaire which should be fill out by yourself and this questionnaire is divided into
two section and these section are section A and section B. In section- A question are consist
of personal information and these information are Age, Gender, Qualification, Marital
Status, and Occupation. In Section-B question are based on question which are related to
the research and fulfill the research objective and its 10 question.
 3.5. LIMITATION OF THE RESERCH:
1. This study is conducted in a limited area which is Bhopal so it’s not applicable to all the
cities
2. This research is conducted at a time when our country is going through a pandemic
because of which it create price hike in the market which gives us misleading data
regarding GST rate on consumer durables goods.
3. Data given by the primary data (questionnaire) may not be correct because its fill by my
friends, family and the data collected from this questionnaire may be misleading to some
reader

CHAPTER-IV
DATA REPRESENTATION &ANALYSIS

DATA ANSLYSIS
Q.1 Q1) Gender
A) Female B) Male c) prefer not say
. MALE 50%
. FEMALE 40%
. prefer not say 10%

Q2) Martial status

A) Married B) Unmarried
. Married 60%
. Unmarried 40%
Q3) Age Group
A) 18-25 B) 25-35 C) 35-45 D) Above 45
. 18-25 50%
. 25-35 30%
. 35-45 10%
. Above 45 10%

Q4) Occupation
A) Businessmen B) Student C) Professional D) Any other
. Businessmen 40%
. Student 20%
. Professional 20%
. Any other 20%

Q5) Qualification
. Graduate B) Post Graduate C) Any other qualification(under-
graduate)
. Graduate 50%
. Post graduate 30%
. Any other qualification(under-graduate) 20%

Q6) Is GST good for the economy?

A) Yes B) NO C) Maybe
. Yes 60%
. NO 30%
. Maybe 10%

Q7) Does GST increase the various legal formalities?

A) Strongly agree B) Agree C) Neutral D) Disagree E) Strongly disagree
. Strongly agree 40%
. Agree 20%
. Neutral 20%
. Disagree 10%
. Strongly disagree 10%

Q8) Does GST increase the tax burden on the common people
A) Strongly agree B) Agree C) Neutral D) Disagree E) Strongly disagree
. Strongly agree 40%
. Agree 20%
. Neutral 20%
. Disagree 10%
. Strongly disagree 10%

Q9) Does GST increase the tax burden on the businessmen

A) Strongly agree B) Agree C) Neutral D) Disagree E) Strongly disagree
. Strongly agree 50%
. Agree 20%
. Neutral 10%
. Disagree 10%
. Strongly disagree 10%

Q10) Is GST hard to understand?

A) Strongly agree B) Agree C) Neutral D) Disagree E) Strongly disagree
. Strongly agree 20%
. Agree 20%
. Neutral 10%
. Disagree 30%
. Strongly disagree 20%
Q11) Does GST is beneficial in long run
A) Strongly agree B) Agree C) Neutral D) Disagree E) Strongly disagree
. Strongly agree 60%
. Agree 10%
. Neutral 10%
. Disagree 10%
. Strongly disagree 10%

Q12) GST is a good method to replace the sales and service tax
A) Strongly agree B) Agree C) Neutral D) Disagree E) Strongly disagree
. Strongly agree 60%
. Agree 10%
. Neutral 10%
. Disagree 10%
. Strongly disagree 10%

Q13) Will GST lead to increase in the friendly competition of the firm. Which
leads toinnovation for new consumer durable product?
A) Strongly agree B) Agree C) Neutral D) Disagree E) Strongly disagree
. Strongly agree 60%
. Agree 10%
. Neutral 10%
. Disagree 10%
. Strongly disagree 10%

Q14) GST is been imposed on consumer durables good which lead to create
price inflation for consumer durables goods.
A) Strongly agree B) Agree C) Neutral D) Disagree E) Strongly disagree
. Strongly agree 60%
. Agree 10%
. Neutral 10%
. Disagree 10%
. Strongly disagree 10%

Q15) Are you satisfied with current GST slab rates which is imposed on
MSME sector.
A) Strongly agree B) Agree C) Neutral D) Disagree E) Strongly disagree
. Strongly agree 60%
. Agree 10%
. Neutral 10%
. Disagree 10%
. Strongly disagree 10%
 CHAPTER – 4
DATA ANSLYSIS
Q.1 Do you think that Gst is important for company?

• Yes

• No

Sr. No Title Percentage

1 Yes 60
2 No 40
100

Interpretations:-

From above it is proved that Positive response is More than half

Q.2 Is the indirect tax may affect the income ?

• Yes

• No

Sr. No Title Percentage

1 Yes 60
2 No 40
100

Interpretations:-

From above it is proved that Negative response is More than half

Q.3 Is the filling Gst has some policies?

• Yes

• No

Sr. No Title Percentage

1 Yes 70
2 No 30
100

Interpretations:-

From above it is proved that Negative response is More than half

Q.4 Do you think that companies performance will be measured on indirect tax

• Yes

• No

Sr. No Title Percentage

1 Yes 70
2 No 30
100

Interpretations:-

From above it is proved that Positive response is More than half

Q.5 Is all the filling gst may have challenges for company?

• Yes

• No

Sr. No Title Percentage

1 Yes 90
2 No 10
100
Interpretations:-

From above it is proved that Positive response is More than half

Q.6 Do you think filling Gst is essential in today’s world?

• Yes

• No

Sr. No Title Percentage

1 Yes 60
2 No 40
100

Interpretations:-

From above it is proved that Positive response is More than half

Q.7 Is that Filling gst is gives creditability to the filer ?

• Yes

• No

Sr. No Title Percentage

1 Yes 60
2 No 40
100

Interpretations:-

From above it is proved that Negative response is More than half

Q.8 Do you think that there may be Tax Evasion in gst?

• Yes

• No

Sr. No Title Percentage

1 Yes 70
2 No 30
100

Interpretations:-

From above it is proved that Negative response is More than half

Q.9 Do you think that in futures this gst system becomes more easy?

• Yes

• No

Sr. No Title Percentage

1 Yes 70
2 No 30
100

Interpretations:-

From above it is proved that Positive response is More than half

Q.10.Is that gst is a good sign to being an Indian Citizen?

• Yes

• No

Sr. No Title Percentage

1 Yes 90
2 No 10
100
Interpretations:-

From above it is proved that Positive response is More than half

CHAPTER – 5
SUGGESTIONS AND CONCLUSION

SUGGESTIONS
Goods and service tax is the structure where the assessee documents data about their Income and

expense consequently to the Income Tax Department. At the point when you document a late

return, you are not permitted to convey forward specific losses.

The Income Tax Act, 1961, and the Income Tax Rules, 1962, commit residents to document returns

with the Income Tax Department toward the finish of each and every financial year. These profits

ought to be written before the predefined due date. Each Income Tax Return Form is material to a

specific segment of the Assessees. Just those Forms which are documented by the qualified
Assessees are handled by the Income Tax Department of India. It is subsequently essential to know

which specific structure is suitable for each situation. Income Tax Return Forms shift contingent

upon the standards of the kind of revenue of the Assessee and the classification of the Assessee.In

the past two years we have seen events that have changed the way we work, and more importantly

from an indirect tax point of view, the way we purchase and receive goods and services as

consumers. As a result, Value Added Tax (VAT) and Goods and Services Tax (GST) is growing in its

complexity and application, as the traditional goods and services model is replaced with digital

content; virtual consumption and seamless international trade flows.

We are seeing many changes relating to registration requirements, digital reporting requirements,

the approach to audits and compliance by tax authorities and the approaches to taxing the digital

economy. There are numerous challenges facing businesses, and below we have set out some of the

key international indirect tax trends that we and our clients are seeing and facing. Indirect tax has

become a genuine commercial conversation now. Whilst there appears to be a trend for corporate

income tax rates being lowered, VAT, GST and sales tax rates are generally increasing.

Tax authorities are realising that taxing revenue and actual transactions can raise more revenue

than simply focusing in on profit, which can often be subjective and subject to manipulation. Put

simply, it’s easier to tax the transactions that create the outcomes, rather than the outcomes

themselves. When the transaction tax base is expanded to move out of the ‘physical’ and into the

‘virtual’, the reach of the indirect tax is extended significantly, and revenue collections grow

accordingly. It is no wonder that numerous territories are looking to introduce or re-shape existing

VAT/GST systems.

Your capital misfortunes and gains will get a change

If value or offer market speculation has been your highest contributing plan, then, at that point, a
convenient recording of ITR will end up being very compensating for you. In the event that you all

out yearly compensation is not exactly the fundamental exclusion limit, then documenting an ITR

probably won’t be essential, in any case, your capital misfortunes can be changed against your

capital additions. Moreover, after doing as such, you can likewise guarantee that your misfortunes

(if any) are conveyed forward for the following eight continuous years, contingent upon whether

you have recorded your return for that specific Financial Year.

• If you file income tax returns, it will be simple to claim your tax refunds

After a certain type of tax is deducted (like  80C and 80D deductions), a tax refund can only be

claimed if an income tax return is filed for that fiscal year. As a result, if you are an NRI who pays

TDS on his rental amount, or if  TDS is deducted from your bank accounts’ fixed deposits, you must

file your returns to be eligible for a refund. Once that year’s  ITR filing is completed, you must

claim your refund online through the portal.

• Easy to get loans if you have filed your tax returns properly

Aside from being another significant business document, your income tax return also serves as

evidence of income because it shows all of your earnings in only one year. As a result, when you

request a specific loan amount, NBFCs and other financial institutions actively seek this document.

Filing a return despite having a lower taxable income will be useful.  

• Simple claiming of your tax deductions: 

If you earn more than Rs.3 lakh (the basic exemption limit) and are trying to seek numerous

exemptions to reduce your income to that level, you will undeniably be supposed to file your ITR

for that financial year. Even if you have no tax liability, filing a tax return is still required if you

want to claim any future deductions. It is also important to know when to file income tax return.

• It will be much simpler to own assets/foreign assets

The law requires any person who owns a foreign asset to file their  Income tax returns
online correctly. This provision also applies to any immovable property you may own, including a

bank account. Failing to follow this rule may result in severe penalties and is also considered a

major economic offence.

CONCLUSION

Thus, indirect taxes have both advantages and disadvantages, but no one can deny that

they are important to generate revenue. While direct taxes can be collected from the rich,

indirect taxes give an opportunity to the poor to contribute in their own small way. These

taxes have a wide range and are hidden as a part of the price of the product. If

manipulated, they have a huge scope to bring about a change. For these reasons,

indirect taxes are critically important for the economy.

Gst Return is a document that a person uses to record his or her earnings, spending, tax

deductions, investments, and taxes. An Income Tax Return is a document used to report a

taxpayer’s annual earnings, even if there is no income. In this blog information on E filing of

Income Tax Return, process, advantages of electronic filing of Income Tax, and other information

on Income Tax Return Filing is included.

The Income Tax Department offers the option of filing an Income Tax Return electronically (E-

Filing). Before going over the steps required in e-filing an Income Tax Return, it’s critical for a

taxpayer to preserve all of the necessary documentation for ITR calculation and reporting.

Tax e-filing is one of the e-government services that have been adopted by many developed

countries, where the public has to emancipate their responsibility to the government through online

tax filing. Indian economy is at a developing stage and there is still more to come in every stage of

its development. The income tax department of India launched the electronic tax filing system of

Income Tax Returns in year 2017. Despite the rapid adoption of e- tax filing in many countries,
researchers have argued that due to its high perceived risk by public, there is a need to establish an

integrated system that is reliable, especially in developing countries like India. The present study

focuses on understanding the various aspects of e-taxation in India in the recent past, the present

position and the future prospects. The study also tries to explore the factors within the technology

acceptance model (TAM) that effects the adoption of e-taxation. The study will serve as a useful

guideline for development of strategies in promoting the tax e-filing service in India

The use of internet has been widespread and has been more diversified. The value-added services of

internet will relatively be increased which also benefits the users (Pavlou et al., 2007; Barako et al.,

2008). As a result, there are more and more corporations or organizations wish to transmit

information or trade via internet (Chi et al., 2007; Haque et al., 2009). eservice refers to the

provision of customer services via the internet (Prins and Verhoef, 2007) which is valued by

government in every country (Efebera et al., 2004; Briggs, 2008). In this digital era, governments of

many countries are using the internet to provide public services to its citizens, known as e-

Government. e-government is becoming increasingly more important in today’s world due to its

effectiveness and applicability in various areas. e-government is a relatively new area of study in the

Information Systems (IS) field that is concerned with use of ICT by the government agencies to

electronically deliver its services (The World Bank Definition). Yildiz (2007) mentions that e-

government refers to the use of ICTs by public administration to create a networked structure for;

interconnectivity, service delivery, efficiency, effectiveness, transparency, and accountability. One

prominent type of egovernment is the introduction of the e-filing system for income tax. Through

this system, taxpayers are able to submit their tax returns electronically to the tax authorities.

However, this system is slow in gaining acceptance by taxpayers

 BIBLIOGRAPHY

Books:

• T. N. Manoharan (2007), Direct Tax Laws (7th edition), Snowwhite Publications P.Ltd., New

Delhi.

• Dr. Vinod K. Singhania (2007), Students Guide to Income Tax, Taxman Publications, New

Delhi

• Income Tax Ready Reckoner – A.Y. 2007-08, TaxMann Publications, New Delhi

Websites:

• http://in.taxes.yahoo.com/taxcentre/ninstax.html

• http://in.biz.yahoo.com/taxcentre/section80.html

• http://www.bajajcapital.com/financial-planning/tax-planning

ANNEXURE

Q.1 Do you think that Filing Gst is important for company?

 • Yes

• No

Q.2 Is the Filing Gst may affect the Income ?

• Yes

• No

Q.3 Is the Filing Gst has some policies?

• Yes

• No

Q.4 Do you think that companies performance will be measured on gst ?

• Yes

• No

Q.5 Is all the gst filling may have challenges for Company?

• Yes

• No

Q.6 Do you Gst filling is essential in today’s world?

• Yes

• No

Q.7 Is that Gst filling is gives creditability to the filer ?

• Yes
 • No

Q.8 Do you think that there may be Tax Evasion in indirect tax filling?

• Yes

• No

Q.9 Do you think that in futures this gst Filling system becomes more easy?

• Yes

• No

Q.10.Is that GST ITR is a good sign to being an Indian Citizen?

• Yes

• No