A Minor project report on

IMPACT OF GST ON BUSINESSES AND START-UPS

Submitted in partial fulfilment of the requirements for BCOM (Hons.) programme
Guru Gobind Singh Indraprastha University, Delhi

Submitted to Submitted by
Dr. Shikha Gupta Pranav Kumar
(Associate Professor) Enrolment no. 01619288821

BATCH 2021-2024

Lingaya’s Lalita Devi Institute of Management & Sciences

(NAAC Accredited “A” Grade Institute & Approved u/s 2(f) of UGC Act 1956)
Mandi Road, Mandi, New Delhi-110047

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 DECLARATION
This is to certify that I have completed the Project titled “A Project Report on IMPACT OF GST ON
BUSINESSES AND START-UPS” under the guidance of “” in partial fulfilment of the requirement for
the award of Degree of Bachelor of B. Com (H) at Lingaya’s Lalita Devi Institute of Management and
Sciences, Delhi. This is an original piece of work & I have not submitted it earlier elsewhere.

Date:

Signature

Name: Pranav Kumar

Enrolment Number: 01619288821

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 ACKNOWLEDGEMENT

It is my pleasure to be indebted to various people who directly or indirectly contributed in

the development of this work and who influenced my thinking behaviour and acts during the course of
study.
I express my sincere gratitude to Dr. Pranav Mishra the worthy Director of Lingaya‟s Lalita Devi
Institute of Management & Sciences, for providing me an opportunity of doing this project under his
leadership.
I also extended my sincere indebtedness to Sachin sir” Assoc. Professor, LLDIMS, New Delhi taught
us this subject and provided her valuable suggestion and precious time in accomplishing my project. I
also take the opportunity to express my sincere gratitude to each and every person, who directly or
indirectly helped me throughout the project and without any one of them this project would not have
been possible.
The immense learning from this project would be indelible forever.

Pranav Kumar

Enrollment No.: 01619288821

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 INDEX

Chapter TITLE Page

No. No.

A FRONT PAGE I

B DECLARATION II

C ACKNOWLEDGEMENT III

1. INTRODUCTION 5-17

2. REVIEW LITERATURE 18-20

3. RESEARCH PROBLEM 21-22

4. RESEARCH METHODOLOGY 23

5. DATA ANALYSIS INTERPRETATION 24-30

6 CONCLUSION AND SUGGESTION 31-33

7. BIBLIOGRAPHY 34-35

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 IMPACT OF GST ON BUSINESSES AND START-UPS

BACKGROUND
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 was levied by the Central Government, while VAT and Entry Tax were 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 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. GST is a
comprehensive indirect tax levy subsuming all central and state levies with a single unified value added tax
transforming the nation into one single market. Major Central and State taxes are subsumed into GST which
will reduce the multiplicity of taxes, and thus bring down the compliance cost. With GST, the burden of
CST will be phased out. As per Statement of Objects and Reasons appended to the Constitutional
Amendment bill the object of GST is: a) to have common national market and b) avoid cascading effect of
taxes. From the consumer point of view, the biggest advantage would be in terms of a reduction in the
overall tax burden on goods, which is currently estimated to be around 25%-30%.
Introduction of GST will make Indian products competitive in the domestic and international markets.
Studies show that this would have a boosting impact on economic growth. Last but not the least, this tax,
because of its transparent and self-policing character, would be easier to administer. Unfolding the pages of
history, the idea of national GST in India was first mooted by Kelkar Committee in the year 2004. The
Committee recommended national GST. The first announcement for the introduction of GST was made in
Budget Speech on 28th April, 2006 by the then Finance Minister, P. Chidambaram. The proposed target date
to introduce nationwide GST was 1st April, 2010. The Empowered Committee of State Finance Ministers
(EC) which had formulated the design of State VAT was requested to come up with a roadmap and structure
for the GST. Joint Working Groups of officials having representatives of the States as well as the Centre
were set up to examine various aspects of the GST and draw up reports specifically on exemptions and
thresholds, taxation of services and taxation of inter-State supplies. Based on discussions within and
between it and the Central Government, the EC released its First Discussion Paper (FDP) on GST in
November, 2009. This spells out the features of the proposed GST and has formed the basis for discussion
between the Centre and the States so far. The Constitution of India was amended from 16th of September,
2016 to make provision for the introduction of GST. By this amendments in the Constitution both the Centre
and the States shall have concurrent power to levy and collect the GST on both goods and services.

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INTRODUCTION OF GST

GST , that means goods & service tax .Most of the readers might not know that the term GST was first
introduced in 2000 by the then Prime Minister Atal Bihari Vajpayee, the concept behind the restructuring of
excise taxation in the union budget for 1986-1987 was at first proposed by the then finance minister
Vishwanath Pratap Singh . It is an indirect tax which came into existence On July 1, 2017.The only source
of income for the Indian government is the collection of the tax, and The major source of the tax is indirect
tax which is also known as GST, which defines “one tax One nation”.
Before 1 July 2017 there were many state taxes imposed on the name on indirect Tax like luxury tax, VAT
tax, state tax, central tax, purchase tax, entry tax, entertainment tax, Taxes on lottery, state cases and
Surcharges, and the central taxes like central excise duty, Service tax, special additional duty of custom etc.
are implemented. There are three taxes applicable under GST they are IGST (collected by central
government), CGST (collected by central government) and SGST (collected by state government.
Businesses are required to obtain a GST Identification Number in every state they are registered. The
introduction of GST has cleared the formation of Indirect tax by introducing online filling of GST. The main
objective of gist was to abolish the cascading effect, however many people proclaim that this objective of
GST has not been achieved yet
.The cascading effect means “tax on tax” which co-coordinately increase the price of Product hence lead to
the inflation in the economy .The government has introduced the new Tax rates are 5%, 12%, 18%, 28%,
however Alcohol, electricity, and petroleum products are not included in the GST rates.
The reason behind the exception of gist on alcohol ,because in some states ,above 50% of revenue generated
by the sale of alcohol, & on electricity , however it is a basic need for people , so it should be cheap &
affordable , & also some of the political parties may promise to provide the electricity cheaper may weaken
the citizens. The major reason for not including petroleum into GST, is that around 28% income, which is a
very huge revenue, is earned by government, striking is GST will stop their income.
Implementing GST in India was not so easy, to make 139 crores of people to understand about the new
system especially where people are unsure to accept the changes is the biggest challenge. The listing of the
goods and service into specific rates and its explanation has countered the Majority of problems. In the
initial days the price of many goods and services was increased which created the inflation in the economy.
Lack of clarity on the abetments introduced in the Economy has made the minds more diplomatic.

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Many businesses still lack the proper IT Structure to create GST invoice and extract required reports it also
include lack of proper trained resources and re – skilling of the Management, which created extra burden
across the Sectors. It was difficult for the startups companies to GST as they were not properly setup in the
industry and they were needed to understand the new taxation system. At the end we can say that GST
bought the transparency and wider platform for taxation. It can also affect the income of the companies
positively or negatively. This study is conducted to understand the problem business has to face due to the
introduction of GST.
Overall, GST simplifies the entire process of filing and paying taxes. It will also increase the competition
between SMEs by unifying the Indian market. If you’re proactive and take care of your GST compliance
measures beforehand, you can minimize the potential negative effects of the new regime on your business.
In the long term, GST is expected to have a positive impact on SMEs and the Indian economy as a whole.
The impact of GST on the whole Indian economy is still to be scrutinized. Aforementioned are the best
possible details about how this tax can affect the small sized businesses in the country. So, if you were
looking for this information then I hope this might have been helpful for you in some ways or the other. And
especially if you are an owner of the small business in the country.
As we realize that the actual property enterprise contributes approximately 7.8% to India’s GDP and its
miles the second one biggest employment generator after the IT enterprise. The enactment of this tax
regulation will by me remedy the demanding situations confronted through the actual property region and
assist the arena to pop out of its lengthy slumber’s brings transparency with inside the functioning of the
actual property sector; the overall increase in price for new residential properties could be lower than that for
new commercial properties. Towards the aim to address the housing necessities of the lower and middle-
class people the government of India (GOI) has provided the affordable housing policy in June 2015. With
respect to the common residential housing which shall be cost-effective are subjected towards lower goods
and Service Tax (GST), which gives relief to the affordable people who buy home during the period of
purchasing the home. As per the tax and investment experts, the home buyers are required to furnish GST
during the time of purchasing, besides that they just have to understand what an affordable house means as
per the GST.

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GST Advantages:
Transparency and Accountability: - GST will lend a whole lot of transparency in the real estate sector
while also playing a major role in minimizing unscrupulous (black money) transactions.
Currently, there is a huge percentage in every project where expenditure goes unrecorded on the books. GST
by curbing the practice of fake billing on purchase-side will help cut down cash component in construction,
which in turn, will help in boosting stakeholders ‘confidence.
Input Tax Credit: - Although the GST rate of 18% on the supply of works contract in the construction
sector may be higher than the previous rates, the regime of local composition schemes is over, though now
they are eligible for full input tax credit. However, many of the listed construction services such as
constructions of dams, roads etc. which were previously exempted are now under the GST purview.
This basically means the average construction contract in the previous regime which used to hover around
the 11–18% range is now chargeable at a flat rate of 18%. As a matter of fact, if you take exempted services
into consideration, this marked difference is more pronounced, like certain infrastructure services are no
more exempt in current regime. Having said that, thanks to the availability of input tax credit, the
construction sector is expected to benefit in the long run. This is because, under the GST regime, the input
tax credit on the raw materials would result in an overall neutral tax incidence for construction services.
Additionally, with GST, real estate developers will have access to free input tax credits on GST paid for
services and goods purchased by them while the rate of GST on outward supply is 12% including the value
of land. As the inward supply consist of many an items with more than 12% rate, it is expected not a very
significant cash flow will involve in paying GST on outward supply. This will not only help in reducing the
cost for the developers but owing to this, they can even pass on the benefit of these credits as a reduction to
potential buyers.
1. In the GST system, when all the taxes are integrated, it would make possible the taxation burden to be
split equitably between manufacturing and services. 2. GST will be levied only at the final destination of
consumption based on VAT principle and not at various points (from manufacturing to retail outlets). This
will help in removing economic distortions and bring about development of a common national market. 3.
GST will also help to build a transparent and corruption free tax administration. 4. Presently, a tax is levied
on when a finished product moves out from a factory, which is paid by the manufacturer, and it is again
levied at the retail outlet when sold. 5. GST is backed by the GSTN, which is a fully integrated tax platform
to deal with all aspects of GST.

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Model of GST:
Goods and services tax has been divided in 3 parts.
I) GST: Integrated GST which is levied on interstate supplies or services. In such cases, collection of taxes
will be done by central government but the money will be distributed between Central government and state
government.
2) C-GST: Central GST which is levied on intra state supplies or services
In which collection and retention of such taxes is done by central government.
3) S -GST: State GST which is levied on intra state supplies or services in which collection and retention
of such taxes is done by state government.
India has opted for dual model of GST. State GST is to be collected by the State Government; Central GST is
to be collected by the central government and into-grated GST is to be collected by the central government
on inter-State transactions.

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OBJECTIVES OF THE STUDY
1) To study Impact and Challenges of GST on various businesses.

2) To study Challenges faced by businesses and Start-ups.

3) To examine how business enterprises were before the implementation of GST.

IMPACT OF G S T ON REAL ESTATE SECTOR

When it involves assembly tax obligations, homebuyers alongside of assets taxes, additionally need to pay
the relevant GST on their assets purchase. Over the previous few years, numerous modifications had been
made to the GST regime directed in the direction of the actual property sector. Potential traders and
homebuyers ought to scrutinize the results of GST on actual property to make a knowledgeable choice in
terms of making an investment on this sector.
The Indian real estate sector was experiencing slow sales, rising costs and stagnant prices since the great
recession of 2008-09 following demonetization. The sector has now been subjected to another wave in the
form of GST. While developers are taking all the necessary precautions and safeguards to prepare
themselves, and on the other hand consumers are waiting for the right time to sign a deal.
Impact of GST on Buyers:
Under the earlier tax regime, buyers had to pay VAT, Service tax, Registration charges & Stamp duty on
purchase of properties under construction. Also since VAT, Registration charges & Stamp duty were state
levies, prices of properties varied from state to state. Moreover, developers had to pay various duties like
sales tax (CST), custom duty, OCTROI etc. For which credit was not available. Under GST, a single tax rate
of 12% is applicable on properties under construction while GST is not applicable on completed or ready to
sale properties which was the case in previous law. Hence buyers will benefit from reduction of prices under
GST.
Impact of GST on Developers / Builders / Contractors:
Under the previous tax regime, developers had to bear Excise duty, VAT, Customs duty, Entry taxes etc. On
raw materials / inputs and Service tax on various input services like approval charges, architect professional
fees, labors charges, legal charges etc. ITC was not available for duties like CST, Customs duty, Entry Tax
etc. This would impact the pricing and subsequently the burden was transferred to the buyer. Under GST,
developers’ construction costs are significantly reduced as multiple taxes are subsumed and due to the
availability of input tax credit. Also, reduction in cost of logistics will be an added benefit. Hence developers
may see improvement in margins. On the downside, developers have to do multiple calculations to arrive at
ITC in order to pass it on to the buyers. Hence, in most cases, they can pass on the ITC only during the final
stages. This lack of transparency on ITC, may affect the developers since buyers may resort to “wait and
watch” approach and defer buying decision.

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Government directs builders not to charge GST on affordable housing:
The government, on February 7, 2018, asked builders not to charge any Goods and Services Tax (GST) from
home buyers, as the effective GST rate on almost all affordable housing projects is eight per cent, which can
be adjusted against the input credit. It said builders can levy GST on buyers of affordable housing projects,
only if they reduce the apartment prices after factoring in the credit claimed on inputs. In its last meeting on
January 18, 2018, the GST Council had extended the concessional rate of 12 per cent GST, for construction
of houses under the Credit- Linked Subsidy Scheme (CLSS) to promote affordable housing, which has been
given infrastructure status in 2017-18 Budgets. The effective GST rate, however, comes down to eight
percent, after deducting one-third of the amount charged for the house/flat, towards land cost. This provision
was effective from January25, 2018.

How are banks affected by the GST?

Construction Industry has two major Game Change one in form of RERA and now GST impact. The old
litigation in work contract and much landmark decision on service tax and vat laws now no more valid. The
construction entity to rework on cost structure by doing post and pre GST impact analysis. They say ‘Change
is the only constant’ but in order to succeed, change is not only constant but it is also inevitable. After many
reforming initiations like “Housing for all” and RERA, the next thing that Real Estate along with all other
sector is looking forward to is the Goods and Services Tax. GST is set to get implemented on 1st July 2017.
There are various goods and services which will have different rates prescribed by GST, which may impact
their cost. A homebuyer henceforth will have to pay 12% GST to purchase a under construction house. If we
look at the current scenario, real estate sector was heavily taxed; therefore 12% single tax structure is
definitely a welcome move. We believe that existing multiple indirect taxes on the sector is higher and tax
impact under GST would be neutral. While the impact of GST on various sectors and goods is now known,
industry experts are still divided over how GST will impact real estate going ahead as clarity on the tax slabs
for services is still awaited. Together with RERA, GST will go a long way in ensuring transparency in the
realty sector and growing buyer confidence. The existing channels include issues of multiple taxation,
amounting to indirect taxes and no uniformity. GST coupled with Real Estate Regulatory Act that has come
into effect on May 1, 2017, would ensure efficiency in the realty sector. GST will free homebuyers and
investors from the hassle of paying several state taxes at different levels, therefore removing the double
taxation impact. Therefore 12% tax rate under GST regime looks favorable to the industry. If we talk about
nitty-gritty’s of the GST for real estate sector, in some cases, even input credit will be more than the GST
levied on the finished product, but a developer can claim a maximum credit to the extent of the GST he
would be paying on the finished product. As per the provisions of GST, it can be expected that GST may lead
to input cost deflation for construction industry as credit of taxes paid on various inputs used in the
construction activities will be available which is not available in current tax regime. GST is also likely to
boost foreign investment and benefit the NRI community for investment in real estate because of a seamless
all-inclusive channel available. The simplification of taxation is probably the most positive aspect of GST
and it will promise well for foreign investments. It will also raise the confidence of the NRI market to invest
in Indian real estate. From the consumer point of view, the major advantage would be in terms of decrease in
the overall tax burden on goods. Currently it is estimated about 25%-30%. GST will help in free transport of
goods without stopping at the state borders for long hours for payments of state tax or entry tax from one
state to another state. This will reduce in paperwork to a great extent as well.

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IMPACT OF GST ON START- UPS POSITIVE IMPACT:
SIMPLER TAXATION: Different taxes in different states were a complex and burdensome process. Now
when all indirect taxes are subsumed into one single tax, tax calculations will become simple with less
paperwork. Start-ups related to software industry will be largely benefited from single rate of tax since in
present scenario VAT, service tax and excise, the entire 3 or at least first two are applied on software or
service.
COMMON REGISTRATION:
Unlike before where they had to registration again and again for different taxes or different states, Start-ups
now have to register only once on GST network and they can do business in any part of India without any
hassle. This will make whole India, a common market for startups and pave ways for expansion of their
business.
Higher threshold limit: Limit of service tax is 10 lakhs while the threshold limit of VAT varies from 5 lakhs
to20 lakhs in different states. Start-ups will be eligible for higher threshold limit of 20 lakhs (10 lakhs in case
of North East states). Also start-ups whose annual turnover is less than 50 lakhs can opt for composition levy
at a lower rate.
Reduced logistics cost: GST might prove to be a much needed boon to e-commerce websites. According to
CRISIL report, GST will reduce logistics cost by 20% helping in reducing the cost of e- commerce start- ups.
Reduction in logistics cost will also lead to more business for logistics companies
Improvement in Logistics efficiency: According to Vijay Shekhar Sharma, Founder Paytm “Due to
complexities of entry tax and other processes, customers from certain states could not order sometimes from
the online shopping destinations.” Seamless movement of goods in a common market will help start-ups in
delivering goods early to customers since state border checks used to delay the movement of goods from one
state to another. Also this will bring down the inventory and storage cost of
Start-ups.
Transparency and reduced compliance cost: With introduction of GST, the overall compliance cost is
going to be reduced since now there is only one tax and provisions related to act to comply with. GST
network will also ensure transparency in calculation of taxes and input tax credit.
Negative impact:
Not a single rate of taxation: India has opted for dual model of GST due to which we have C-GST and S-
GST for intrastate transactions and I-GST for interstate transactions. Many critics argue that these three are
nothing but the new names for Central excise/service tax, VAT and CST.

Increase in tax rate: Start-ups who are engaged in providing services only presently had to play service tax
only at the rate of 15%. However after the introduction of GST with unexpected rate of 18%, there will be an
increase of 3% in tax rate for such start-ups. This is one of major demerits for India startups since majority of
Indian start-ups are engaged in services sector. With introduction of GST they have to increase prices to
compensate such increase in tax since they can’t afford to absorb more losses.

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Exclusion of certain taxes: GST will not be the only indirect tax that a start-up has to pay. Apart from GST.
Start-ups will have to pay custom duty on imports since Custom duty is kept out of preview of GST. Further
electricity, real estate etc. have been excluded from GST which may lead to a mangled Indian version of
GST.
Frequency of filing of return: The model GST guidelines state that e-commerce start-ups will have to file
quarterly as well as monthly returns on GST network. Further they will also have to collect taxes from sales
made on their portal .This will lead to increase in documentation and administrative cost for such start- ups.
Cross set off of levy is not allowed: In proposed GST, the input credit of C-GST cannot be set off against S-
GST advice versa. While in present system set off of excise duty and service tax is allowed.
Organizations will do everything to get and keep a decent score, seeing the stringent online smaller scale
rules about entering the information as well as about installments. A good credit score will come at the
expense of some significant pitfalls of explicitly conveyed transmission capacity and assets. Overall, I would
like to conclude by stating that the starting phase of GST will differ according to the varying taxation slabs.
In any case, GST will go about as an impetus to give a boost to the Indian start-ups consequently reinforcing
them to thrive as the GST paves its way to the Indian market slowly and steadily.

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NEED AND SIGNIFICANCE OF THE STUDY.
The implementation of gist in India has produced many problems in the Indian economy, the amendment of
taxes is one of the biggest challenge for the government ,which impact not only the businesses but also the
common man, because of gist ,businesses are required to obtain a GST Identification Number in every state
they are registered. Indirect tax enables the government to the equitable and fairly distribution of goods and
services across the country; and mobilization of the budgeted revenue. Lack of uniformity in the indirect
taxes imposed by the different State Government has created cascading effect on the price of the
goods/services. This has resulted inefficiencies in the production and distribution of goods/services within
the domestic market.
Hence, the study of impact of GST on business is a necessary thing. This study helps to find answer the
questions like their knowledge about GST, how it affected their income, their view on indirect Tax etc.
Though GST promises to be a greatest taxation reforms in the independent India, the multiple rate slabs can
cause few Problems. There may be controversies in category of products and offerings amongst those slabs.
Multiple price slabs also Might cause complexity. Despite those fault lines, it needs to be favored that India
began out reforming its taxation regime.
GST goals to update all indirect taxes levied on items and offerings via way of means of the Indian Central
and State governments. GST might subsume with an unmarried complete tax, bringing all of it below an
unmarried umbrella, doing away with the cascading impact of taxes at the manufacturing and distribution
fees of products and offerings.
Generally, the main aim of GST is to bring about the single tax system which will reduce the cost of
production for the manufacturers, So that it will be a big boost for those producers who made their products
at lower cost and involves in international trade that is exports.
Through GST the authorities gets extra quantity of Tax sales if you want to be utilized for the offerings to the
public. As there is more transparency in the system of GST and since it is a system of single taxation, the
chances of corruption will be very low.

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Generally, the Taxes are imposed at various rates among various states in India. So, there is a huge loss of
revenue to the central as well as state government. Through GST a uniform tax rate is followed all over the
country and so that there will no such loss of revenue.
Reduces complexities and will increase extra range of financial transactions.

The GST brings approximately a competitive price. As all the goods are taxed uniformly throughout the
country, the numerous kinds of Indirect taxes will eliminate and which in flip will lessen the tax burden of
the consumers. This will lessen the charges of the goods and will increase the intake which in flip could be
extra useful for the companies.
The Country is stated to have one marketplace economy, as via GST the number of numerous markets
divided by various taxes will be avoided.

NATURE & SCOPE OF THE STUDY.

The study titled ‘IMPACT OF GST ON BUSINESS: has been undertaken to assess the impact of GST on
business, removes cascading effects, simplification of taxes, etc. The respondents of the study are companies,
start-ups, small enterprises, etc. they have gone through GST implementation process. The main scope of this
research is to show , how gist affects business , business man , their perspective on indirect tax , their
incomes, etc. \ Nature .
Multi-stage: GST is a multi-stage tax which is levied at every point of sale of goods or services. Product
before reaching its final consumer passes through many stages. This tax is levied at each of the stages.
Destination based: It is a tax this is levied at the intake of products and offerings with the aid of using
consumers. If a product is synthetic in Uttar Pradesh and bought in Delhi, then the GST quantity might be
gathered with the aid of using the Delhi authorities however now no longer the authorities of Uttar Pradesh.
Value Addition: GST is accumulated at cost addition in every processing level at the same time as
production a very last product. There are diverse steps from the acquisition of uncooked substances until the
product is sooner or later prepared for sale. Additional financial fee is introduced at each degree wherein
GST is levied.
Scope:
Easy compliance: GST makes it smooth for taxpayers to compliance with required guidelines and rules
timely. They can avail all offerings regarding GST through on line portal including registration, tax payment,
go back filling, reaction to notices, etc. It has elevated the entire process.
Removes cascading impact: GST has removed the cascading impact of taxation on items that existed with
inside the preceding tax system. Cascading impact way implying tax on tax which increases the value of the
product. Removal of cascading impact will make items less expensive for consumers.

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Simplification of taxation: This tax has simplified the whole taxation procedure by eliminating around 17
indirect taxes. GST has minimized the compliance cost for business and saved them from facing various
problems that arise in indirect tax previously. Bring uniformity in tax structure: GST has unified the whole
tax structure of the nation. It has introduced the same tax rates for products and services across the country.
RESEARCH PROBLEM:

The satisfaction level of GST among the company is different. But, it means that GST after five years has not
reached the expectation of all government and business. GST had led to cost reduction throughout the
business cycle from manufacturer to retailer and to the end consumer. The implementation of GST has led to
the reduction in the product prices throughout the business cycle. However, there is a substation in the
reduction in cost of product.

Many problems faced by business due to implementation of GST they are:

1. There is no such clear picture about the GST both to the government and to the general public.

2. There is no cooperation between the Central government and the state government in implementing
the GST. Even though, if implemented the levy of Tax remains on the part of the state.

3. The State government generally refuses to accept it. As the states levy taxes on the Destination
principle i.e. (the state in which the product or service is sold or rendered), so in order to lose the
revenue they were avoiding it.

4. The Revenue Neutral Rate (RNR) is the key factor responsible for the effective implementation of
GST. But under GST, we could not say that the revenue remains same as that of the current system of
taxation.

5. Loss of revenue to the state. If we buy any product the VAT @ 14.5% is included towards it, after the
GST regime, there will be no VAT then it results on the loss of revenue to the state.

6. Even though the government said that they will pay the loss of revenue to the state government, it will
be again imposed on the general people in some other forms.
It involves massive cost on the training of the staff of the Taxation department.
7. Lack of political support. The Bill must be passed in the Rajya Sabha for its successful
implementation.

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 8. IT is the backbone of GST which would connect the various stakeholders through the Virtual platform.
So, government must show keen interest on the development of portal for GST and successfully
achieves it.
9. Question in implementing the GST such as whether the small entrepreneurs and small firms will be
helpful through the GST regime? Whether the government and the Public ready for such a change?
Are some of the questions which are highly in confused dilemma?

India is a federal country where Indirect Tax is levied by Federal and State Government. Value Added Tax is
levied by State Governments. Every State has authority to decide the Tax rate and to control the Tax system
as per their convenient. The Taxation power has been well defined in Indian Constitution. The Constitution
(122nd Amendment) Bill that seeks to usher in a Goods and Services Tax (GST) regime in the country will
finally be taken up for discussion in Parliament. Finance Minister Arun Jaitley has been affirming that India
will implement GST from 1st April 2016. It can
be looked as simplification of Taxes in country and avoiding unnecessary complexities. India is a federal
country which has various Tax regimes and structure, where Tax is levied by both Governments. After the
implementation of GST all the Indirect Taxes will be subsumed under an umbrella, it will be a milestone in
the history of Indirect Tax reform. In this paper, an attempt has been made to examine the major features of
GST. This paper has also focused on the problems likely to be faced by Central and State Governments. GST
is deemed as one of the steps in making India as a country which has a high income tax system,
comprehensive, efficient, transparent and business-friendly. It is also considered the world's best tax system
based on the implementation of the country which has implemented the GST.GST has just being applied in
India. The government and its crew are still in their way to spread out the information of GST in order to
combat confusion among people.
Sales and contracts are made almost every day and some of these transactions required people to pay the
GST. It is an issue if people are still unaware or confuse with the tax system of GST and become worst when
people ignore and boycott not to pay the tax. GST is a popular issue that is being discussed by people day to
day, it is necessary to know whether the students are aware of the government’s plan and do they have
knowledge on this issue. Therefore this study makes an attempt to analyze the College Student’s Awareness
and Knowledge on the Implementation of Goods and Services Tax (GST) in Savakis.
The concept of Goods and Services Tax (GST) is the biggest tax reform in decades throughout the world in
many countries, but India has just started implementing it to meet its target of rolling out goods & services
tax (GST). The research intends to focus on understanding concept of goods and service tax and its impact
on Indian economy.
Accordingly the objectives of this study are:-
• To highlight the needs of Goods and Services Tax in India
• To study the impact of GST on Indian Economy.

17
 Review Literature

GST was first introduced by France in 1954 and now it is followed by 140 countries . Most of the
countries followed unified GST while some countries like Brazil , Canada follow a dual GST
system where tax imposed by central and state both. In India also dual system of GST is proposed
including CGST and SGST .
Shefali Dani in her research paper on ‘An impact of GST on Indian Economy’, 2016 stated that
the proposed GST is a weak attempt to rationalize indirect tax structure. According to Dani, the
Government of India should study the GST regimen set-up by various other countries and their
dropouts before its application. No doubt, GST will make taxation system easy compared to the
previously existing tax system, but during that period, the Government must make an effort to protect
mainly the poor population of the country, which would be affected due to the enactment of GST.
Rani Jacob in her research paper ‘The Impact of GST on MSMEs’ stated the positive and negative
impacts of GST on MSMEs, the positive were easier to start business, facilitates expansion of
business, lesser tax burden, online compliance procedures.
According to her, the negative impacts were selective tax levying, compliance cost, technological
dependency, monthly financial preparedness.
Mr. Shakdwipee, P (2017) in the research paper titled ‘Measuring Awareness about
Implementation of GST: A survey of small business owners in Rajasthan’ analysed the perception of
small business owner in Rajasthan about GST and how they managed, and found out that their main
area of focus was computer software availability and handling of the same.
In an interview by Adi Godrej to business line, published on 24 June 2017, it favor’s GST and
considers GST as a boon for Indian Economy in various aspects. It is also mentioned that once GST is
executed there will not be opportunities to evade taxes and that the rates have been analyzed in a
manner that will add value to the economy. This would mean much less paper work and thus,
automated simplified procedures so there will be less chances of fraud.
FICCI (April 2013) emphasized GST to be a necessary condition for achieving double digit growth in
India, provided all the stakeholders are prepared for the change. Mawuli (2014) suggested GST to be
less than 10% in low income countries to mitigate the adverse effect of GST. Kumar (2014)
highlighted GST’s role in eliminating economic distortions by enabling the developing a unified
national market with a common tax rate. Pinki and Verma (2014) illustrated that GST would result in a
number of benefits for all the stakeholders involved, consumers, government at the central and state
level. The study also highlighted robust IT infrastructure to be imperative for GST to be implemented
successfully. Sahrawi and Dhanda (2015) concluded GST to result in increased output, employment
and economic growth, owing to greater transparency. Caruso et al. (2016) suggested GST to aid
economic development of India and also lead to an increase in the GDP by more than 2%. Khurana &
Sharma (2016) point to the role of set offs available, as an advantage to the producers and consumers
in the IndianEconomy.

18
Govinda Rao (2009) “Goods and Service Tax – Some progress towards clarity” the author in his article
express his views on the first empowered committee report of state finance ministers of Goods and Service
tax to be implemented in India. He also explains salient features, shortcomings of the proposed GST. He
suggests that the proposed GST model should overcome the shortcomings of VAT system. He also throw
light on the challenges faced in the implementation of GST in India. Ehtisham Ahmed and Satya Poddar
(2009) studied “Goods and Service Tax Reforms and Intergovernmental Consideration in India” and found
that GST introduction will provide simple and transparent tax system with increase in output and
productivity of economy in India. But the benefits of GST are critically dependent on rational design of GST.
Ehtisham Ahmed and Satya Poddar (2009) studied , “ Goods and service tax reforms and
intergovernmental consideration in India ” and found that GST introduction will provide implies and
transparent tax system with increase in output and productivity of economy in India. But the benefits of GST
are critically dependent on rational design of GST.
)(Saira et al, 2010 , Based on the history of the implementation by the other countries around the world,
most of the countries received a positive impact in terms of their revenue, despite the success of GST
implementation the Malaysian citizens still feel uncertain with the GST, (Sairaetal, 2010). The findings from
the study showed that the majority of Malaysians not convinced with the GSTsystem,
Dr. R. Vasanthagopal (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 inbecoming 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
. ● According to Torgler (2011) ,tax morale is important to taxpayer awareness. On the other hand, research
by Tekeli (2011) using multiple regression analysis show that tax morale has insignificant relationship on tax
awareness. A Tekeli (2011) conclusion is supported study by regarding cause and consequences of tax
morale.
Research by Mustapha and Palil (2011) , stated that the influence of compliance behavior towards
individuals’ awareness has been proven in various researches. From the findings of Razak and Adafula
(2013); Santi (2012) they found that taxpayers’ awareness is significantly associated with tax compliance and
this is also supported by study Jatmiko(2006).Big Leap in the Indirect Taxation System” and concluded that
switching to seamless GST from current complicated indirect tax system in India will be a positive step in
booming Indian economy. Success of GST will lead to its acceptance by more than 130 countries in world
and a new preferred form of indirect tax system in Asia also. Dr. R. Vasantha gopal, (2011)“GST in India: A
Big Leap in the Indirect Taxation System”, found that the positive impacts are dependent on a neutral and
rational design of the GST. Balancing the conflicting interests of various stakeholders, complete political
commitment for a fundamental tax reform with a constitutional amendment, the method of valuation for
levying the tax is to be required.
RESEARCH METHODOLOGY Since GST is yet to be introduced, very less research has been in this field.
Data has been collected from various secondary sources. The main source of research was the Draft GST bill
available at Finance ministry’s website along with reports of various firms like PWC and EY.NASSCOM’s
report on startup and CRISIL’sreport on logistics cost has been used for assessing the impact of GST on
startups. Apart from this various newspaper articles and websites has been considered for this research paper
19
list of which can be found in reference section. Research is a logical and systematic search for new and
useful information on a particular topic. Research methodology is a systematic way to solve a problem. It is a
science of studying how research is to be carried out. Essentially, the procedures by which researchers go
about their work of describing , explaining and predicting phenomenon are called research methodology.
Problem Identification. The present research is exploratory in nature. Since GST is a new phenomenon in
India, There are hardly any studies in this area. Especially there is a huge gap of empirical and Behavior
studies on GST in India. The study tries to find the significance of popular Perception regarding GST.
Methodology Adopted. Overall, GST is expected to help bring a lot of required transparency and
accountability. Moreover, owing to the expected free flow of credit, developers should be able to enjoy an
Increase in overall margin. Whether these benefits trickle down to the consumers is yet to be seen as the
pricing in this sector tends to be dictated by market forces rather than costing policies. Looking from the
consumer point of view, the one primary advantage would be in terms of decrease in the overall tax burden
on goods and increased transparency in tax system. GST will also help in eliminating unnecessary paperwork
while eliminating time wastage spent by good suppliers at various state borders. One thing For sure is, the
impact of GST will be felt albeit after a while. Data Collection. Primary Data: Primary data is basically the
live data which I collected on field while doing cold calls with the customers and I show them list of
question for which I had required their Responses. Secondary Data: Secondary data for the base of the
project I collected from intranet and from internet, Magazines, newspapers etc. Data analysis tools &
techniques. Sampling Techniques Sampling techniques can be broadly classified in to two types:
➢Probability Sampling. ➢Non Probability Sampling. Tools for analysis. Bar chart (Bar charts will be used
for comparing two or more values that will Be taken over time or on different conditions, usually on small
dataset) ➢Pie-chart (Circular chart divided in to sectors, illustrating relative magnitudes or frequencies)
Tools and Techniques. As no study could be successfully completed without proper tools and techniques,
same with my project. For the better presentation and right explanation I used tools of statistics and computer
very frequently. And I am very thankful to all those tools for helping me a lot. Basic tools which I used for
project from statistics are-- Bar Charts- Pie charts- Tables Bar charts and pie charts are really useful tools for
every research to show the result in a well clear, ease and simple way. Because I used bar charts and pie
cahrtsin project for showing data in a systematic way, so it need not necessary for any observer to read all the
theoretical detail, simple on seeing the charts anybody could know that what is being said. Technological
Tools MS-Excel MS-Access MS-Word

20
 RESEARCH PROBLEM
The satisfaction level of GST among the company is different. But, it means that GST after five years has not
reached the expectation of all government and business. GST had led to cost reduction throughout the
business cycle from manufacturer to retailer and to the end consumer. The implementation of GST has led to
the reduction in the product prices throughout the business cycle. However, there is a substation in the
reduction in cost of product.

Many problems faced by business due to implementation of GST they are:

1. There is no such clear picture about the GST both to the government and to the general public.

2. There is no cooperation between the Central government and the state government in implementing
the GST. Even though, if implemented the levy of Tax remains on the part of the state.

3. The State government generally refuses to accept it. As the states levy taxes on the Destination
principle i.e. (the state in which the product or service is sold or rendered), so in order to lose the
revenue they were avoiding it.

4. The Revenue Neutral Rate (RNR) is the key factor responsible for the effective implementation of
GST. But under GST, we could not say that the revenue remains same as that of the current system of
taxation.

5. Loss of revenue to the state. If we buy any product the VAT @ 14.5% is included towards it, after the
GST regime, there will be no VAT then it results on the loss of revenue to the state.

6. Even though the government said that they will pay the loss of revenue to the state government, it will
be again imposed on the general people in some other forms.
It involves massive cost on the training of the staff of the Taxation department.
7. Lack of political support. The Bill must be passed in the Rajya Sabha for its successful
implementation.

21
 8. IT is the backbone of GST which would connect the various stakeholders through the Virtual platform.
So, government must show keen interest on the development of portal for GST and successfully
achieves it.
9. Question in implementing the GST such as whether the small entrepreneurs and small firms will be
helpful through the GST regime? Whether the government and the Public ready for such a change?
Are some of the questions which are highly in confused dilemma?

India is a federal country where Indirect Tax is levied by Federal and State Government. Value Added Tax is
levied by State Governments. Every State has authority to decide the Tax rate and to control the Tax system
as per their convenient. The Taxation power has been well defined in Indian Constitution. The Constitution
(122nd Amendment) Bill that seeks to usher in a Goods and Services Tax (GST) regime in the country will
finally be taken up for discussion in Parliament. Finance Minister Arun Jaitley has been affirming that India
will implement GST from 1st April 2016. It can
be looked as simplification of Taxes in country and avoiding unnecessary complexities. India is a federal
country which has various Tax regimes and structure, where Tax is levied by both Governments. After the
implementation of GST all the Indirect Taxes will be subsumed under an umbrella, it will be a milestone in
the history of Indirect Tax reform. In this paper, an attempt has been made to examine the major features of
GST. This paper has also focused on the problems likely to be faced by Central and State Governments. GST
is deemed as one of the steps in making India as a country which has a high income tax system,
comprehensive, efficient, transparent and business-friendly. It is also considered the world's best tax system
based on the implementation of the country which has implemented the GST.GST has just being applied in
India. The government and its crew are still in their way to spread out the information of GST in order to
combat confusion among people.
Sales and contracts are made almost every day and some of these transactions required people to pay the
GST. It is an issue if people are still unaware or confuse with the tax system of GST and become worst when
people ignore and boycott not to pay the tax. GST is a popular issue that is being discussed by people day to
day, it is necessary to know whether the students are aware of the government’s plan and do they have
knowledge on this issue. Therefore this study makes an attempt to analyze the College Student’s Awareness
and Knowledge on the Implementation of Goods and Services Tax (GST) in Savakis.
The concept of Goods and Services Tax (GST) is the biggest tax reform in decades throughout the world in
many countries, but India has just started implementing it to meet its target of rolling out goods & services
tax (GST). The research intends to focus on understanding concept of goods and service tax and its impact
on Indian economy.
Accordingly the objectives of this study are:-
• To highlight the needs of Goods and Services Tax in India
• To study the impact of GST on Indian Economy.

22
 RESEARCH METHODOLOGY

Since GST is yet to be introduced, very less research has been in this field. Data has been collected from
various secondary sources. The main source of research was the Draft GST bill available at Finance
ministry’s website along with reports of various firms like PWC and EY.NASSCOM’s report on startup and
CRISIL’sreport on logistics cost has been used for assessing the impact of GST on startups. Apart from this
various newspaper articles and websites has been considered for this research paper list of which can be
found in reference section. Research is a logical and systematic search for new and useful information on a
particular topic. Research methodology is a systematic way to solve a problem. It is a science of studying
how research is to be carried out. Essentially, the procedures by which researchers go about their work of
describing , explaining and predicting phenomenon are called research methodology.
Problem Identification.
The present research is exploratory in nature. Since GST is a new phenomenon in India, There are hardly any
studies in this area. Especially there is a huge gap of empirical and Behavior studies on GST in India. The
study tries to find the significance of popular Perception regarding GST.
Methodology Adopted.

Overall, GST is expected to help bring a lot of required transparency and accountability. Moreover, owing to
the expected free flow of credit, developers should be able to enjoy an Increase in overall margin. Whether
these benefits trickle down to the consumers is yet to be seen as the pricing in this sector tends to be dictated
by market forces rather than costing policies. Looking from the consumer point of view, the one primary
advantage would be in terms of decrease in the overall tax burden on goods and increased transparency in tax
system. GST will also help in eliminating unnecessary paperwork while eliminating time wastage spent by
good suppliers at various state borders. One thing For sure is, the impact of GST will be felt albeit after a
while.
Data Collection.

Primary Data: Primary data is basically the live data which I collected on field while doing cold calls with
the customers and I show them list of question for which I had required their Responses.
Secondary Data: Secondary data for the base of the project I collected from intranet and from internet,
Magazines, newspapers etc.

23
 Data Analysis and Interpretation

The pie chart shows the purported primary objectives of Goods and Services Tax
(GST) implementation according to the survey it depicts. Here's a breakdown of the information:

• Increase corporate tax rates: 8%

• Simplify the tax structure: 60%
• Encourage tax avoidance: 12%
• Impose multiple indirect taxes: 20%

According to the pie chart, the primary objective listed is to simplify the tax structure, followed by
imposing multiple indirect taxes, then encouraging tax avoidance, and lastly, raising corporate tax rates.

It's important to note that the validity of this information depends on the survey it represents. Surveys
can be biased depending on how they are conducted and who is polled.

24
The pie chart shows how respondents answered the question "How did GST impact the compliance
burden for businesses and startups?" with 25 total responses.

• Decreased compliance requirements: 28%

• Increased complexity in compliance: 36%
• Elimination of compliance altogether: 8%
• No change in compliance burden: 28%

Based on the pie chart, most respondents (36%) felt that GST increased the complexity of compliance
for businesses and startups. An almost equal number (28%) said it either decreased compliance
requirements or there was no change in compliance burden. Only a small portion (8%) said GST
eliminated compliance altogether.

It's important to remember that this data is based on a relatively small sample size (25 responses).
Also, the survey question asks about perceptions of how GST impacted compliance burden, not
necessarily the objective reality.

25
 The pie chart shows the breakdown of how Goods and Services Tax (GST) impacted the cost structure
according to a survey. Here's a breakdown of the information:

• Labor costs: 40%

• Material costs: 32%
• Tax costs: 16%
• Administrative costs: 12%

According to the pie chart, GST impacted labor costs the most, followed by material costs, then tax
costs, and lastly administrative costs.

It's important to note that this doesn't necessarily mean that GST caused costs to increase in these
areas. It just means that these were the areas most affected by the implementation of GST.

26
 The pie chart shows what portion of Goods and Services Tax (GST) allows businesses to reduce their tax
liabilities, according to a survey conducted in Barishal, Bangladesh in March-April 2*023. Here's a
breakdown of the information:

• Input tax credits: 36%

• Output tax credits: 12%
• Sales tax exemptions: 20%
• Excise duty refunds: 32%

According to the pie chart, the largest portion of GST that allows businesses to reduce their tax
liabilities is excise duty refunds, followed by input tax credits, then sales tax exemptions, and lastly
output tax credits.

27
 The pie chart shows how respondents answered the question "How did GST impact supply chain efficiency
for businesses?" with 25 total responses.

• Decreased efficiency due to increased barriers: 16%

• Improved efficiency with streamlined movement of goods: 43%
• No impact on supply chain efficiency: 12%
• Increased efficiency due to higher taxes: 28%

Based on the pie chart, nearly half (43%) of respondents said that GST improved supply chain
efficiency for businesses, likely due to a streamlined movement of goods. A significant minority (28%)
felt that GST increased efficiency due to higher taxes, though it isn't explained how higher taxes would
lead to better efficiency.

Some respondents (16%) said that GST decreased efficiency due to increased barriers. Another 12%
said GST had no impact on supply chain efficiency.

It's important to remember that this data is based on a relatively small sample size (25 responses).
Also, the survey question asks about perceptions of how GST impacted supply chain efficiency, not
necessarily the objective reality.

28
The pie chart shows the percentage of respondents who believe that the following technologies became
more prevalent post-GST implementation:

• Fax machines: 8%
• Landline phones: 20%
• Typewriters: 56%
• Digital tax compliance tools: 16%

According to the pie chart, respondents overwhelmingly believe that typewriters became more prevalent
after GST implementation, though this seems unlikely. It's more probable that typewriter use declined
significantly after GST, as digital alternatives became more widely adopted.

29
The pie chart shows the perceived impact of GST on competition among startups according to a survey.
Here's a breakdown of the information:

• Decreased competition among startups: 20%

• Increased competition among startups: 44%
• No impact on competition: 16%
• Increased monopolization by large companies: 20%

According to the pie chart, nearly half (44%) of respondents felt that GST increased competition among
startups. This could be due to a number of factors, such as a more level playing field created by a
national tax system or increased transparency in pricing.

However, a significant number of respondents also felt that GST either decreased competition (20%) or
increased monopolization by large companies (20%). This could be due to factors such as the initial
challenges faced by small businesses in complying with GST regulations or the potential for large
companies to absorb the costs of GST more easily.

It's important to remember that this data is based on a survey and represents the perceptions of the
respondents. It may not reflect the objective reality of how GST has impacted competition among
startups.

Here are some additional things to consider when interpreting this data:

• The size and location of the survey sample could influence the results.
• The way the survey question was worded could have influenced the responses.

30
 Conclusion and Recommendation
Under GST regime, the indirect tax for various sectors has been classified into a simplified tax
system. Internet technologies help to reduce manual intervention of tax authorities. The
different rates given by GST council unify tax structure in India. The price depends not only on
tax rat implementation, but, also it is a part of factors affecting the product. This project relive
that business is affected by tax. The GST council and government have to take necessary steps
to educate about GST in the country. The introduction of GST had led to cost reduction
throughout the business cycle from manufacturer to retailer and to the end consumer. The
implementation of GST has led to the reduction in the product prices throughout the business
cycle.
However, there is a substation in the reduction in cost of product. The majority of product is
still categorized in the high market. Companies have complaints that they are facing many
issues in common portal. The effectiveness of GST Sava Kendra set up by government in order
to facilitate business is still questionable. Also, government is better to address many of the
concerns in tax filling, input tax credit, refund mechanism, export and imports. The single tax
system reduces transportation time. But, the use the services of external consultants issued for
various tax matters. The change in GST law urges companies need to change their accounting
system frequently. The technical cost and legal cost in GST are very high and not satisfied with
available required services of GST.So, transition to GST is very difficult. Some common
problem faced by business are increased overhead expense, supply chain structure, excessive
compliances and filling, delays in refund, GST filling, decline in business, refund mechanism
and rise in input cost.
GST is effective in improving the taxation system of country and the government should take
more efforts to training and educate public. Necessary modules should be integrated in the
education sector related to GST. The time taken by GST council to implement decision is not
satisfied. The satisfaction level of GST after two and half years has not reached the
expectation of all Governments, consumers and business. The urgent requirements for
improvement in GST in the interest of the nation as a whole are rationalizing GST rates,
removing excess processes, creating efficiencies and removing debatable aspects. Our rates
should be competitive with global rates so that India becomes a preferred competitive
destination which will give a boost to ‘Make in India’ initiative.
In the year 2000, for the first time the idea of initiating the GST was made by the then BJP
Government under the leadership of Atal Bihari Vajpayee. An empowered Committee was also
formed for that, headed by Asim Das gupta (the then Finance Minister of the West Bengal
Government). The committee was formed to design the Model of the GST and at the same time
inspect the preparation of the IT department for its rollout. In 2011, the previous United
Progressive Alliance (UPA) Government also introduced a Constitution Amendment Bill to
facilitate the introduction of the GST in the Lok Sabha but it was rejected by many States.

31
Recommendations from the study.

The GST Network is an emergent tax filing network compared to previous taxation
mechanism. The Portal poses numerous technical glitches for assessment. They are:
1) Supplies to EOU ought to be created on zero rates to facilitate sleek operating of EOU as
well as for domestic provider.
2) It’s usually recommended that maintenance of HSNcode (8 digits) ought to be
synchronized for all assessment. Each supplier should incorporate same digit of HSN code
regardless of their flip over criteria.
3) It is advised to make return filing simple and matching. Concept should be
deferred/suspended till further smoothness of system. Also, validation should be reduced.
The new return planning is to be introduced by April 2020 and is set to be tested and proved.
4) The GSTN problems should be resolved at the earliest to ensure seem less flow of credit
in electronic credit ledger.
5) GST authorities should provide complete clarity on the modality and form required for filing
of refund claim. Also, time line to file forms should be extended to next month considering form
GSTR return filing is also at the same point in time. Also, the due date for receipt of refund form
should be made clear.
6) Software of GST and its networking system ought to be completed at the earliest.
7) Filing of GST return ought to be in easy methodology. So, tax payers will file their
return easy.
8) Mismatching of ITC (input tax credit) and problem faced while filing GST return have to
be reduced.
9) Processes must be reduced so that business can operate efficiently in the best interest of the
people and for economic growth. Filing of returns as per GSTIN is a time consuming process
and everyone would not have even the bandwidth to comply with.
10) Small scale operators should be given relief and reduced processes should be made
applicable to them in particular. Most of the Indian business is a one or two man exercise
and they do not have any resource or finance to follow.
11) The facility to file quarterly returns should be extended to assess with up to 5crore turnover.

32
 12) Rates should be rationalized and reduced to make India competitive
and in interest of compliance and economic growth. The highest rate
should be unbroken at 18 and there should be only few things that fall in
28th block. Daily use of items such as soaps, movie tickets, and electrical
goods should be taxed at 12%.
13) The GST network and its technological obstacles should
be completed on a war footing basis.
14) Further, there is also no provision to amend GST Return, if
some clerical error is found later. Provision should urgently be
made to allow rectification of returns.
15) The matching concept of input credits requires large volume of data
of the supplier to be matched with that of the receiver. This method
should be simplified, whereby only broad main criteria might need
matching just like the invoice worth and also the tax amount and
matching of specific, precise wide variety of data should not be required
like invoice number and date.
16) It likely leads to litigation and transfer pricing
issues. The rules have to rationalized, simplified and
should be made available and fair to all.
17) Small scale providers ought to be given compositional schemes.
18) There is a need to consider anti – profiteering provisions. It
may cause unnecessary business hardships. We have to ensure
system is not misused to cause difficulties.

Learning from the study:

GST Act has various features according to the view point of customer. Fair
prices of goods and services, fair prices, not tax on tax, ban on profiteering, right
billing, one control system that is GST council, all these the good environment
to the customer and the recipients. Customer knows tax on every goods and
services. It impacts on good and secure feeling in the mind of general society.
Every process of filling the tax gives the confidence and security to traders.
According to the all points GST is the tax on customer, traders and sellers. One
tax system gives feeling of national equality.

33
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