PROJECT REPORT

(Submitted in fulfilment of the requirement for the degree of B.COM. HONOURS in

Accounting & Finance under the University of Calcutta)

Title of the Project

A study on “Impact of Goods & Service (GST) on Consumers in India”

Submitted by
Name of the candidate: Subham Dey
C.U. Registration No. : 043-1111-0638-21
C.U Roll No. : 211043-21-0238
College Roll No. : 215539
Name of the college: Herambachandra College

\
Supervised by
Name of the Supervisor: Smt. Soumita Chaterjee
Name of the college: Herambachandra College

Month & Year of Submission

May 2024
 Acknowledgment

I extend my sincere gratitude to Professor Smt. Soumita Chaterjee my project guide, for the
successful completion of the project. This project has given me more confidence about the
subject and various concepts of the “Impact of Goods and Service Tax (GST) on Consumers
in India.”

My sincerest gratitude also extends to the family, who has taken a keen interest in my project
from time to time, and encouraged me to perform to the best of my ability.

Last but not least I would like to thank everyone who helped me to present the project in
clear and logical exposition. Working on this project has proved to be enlightening for me.
Annexure - IA

Supervisor’s Certificate

This is to certify that Subham Dey student of B.Com. Honours in Accounting & Finance of
Herambachandra College under the University of Calcutta has worked under my
supervision and guidance for his Project Work and prepared a Project Report with the title
“Impact of Goods and Service Tax (GST) on Consumers in India.” which he is submitting, is
his genuine and original work to the best of my knowledge.

Place: Signature:
Date: Name: Smt. Soumita Chaterjee
Designation: Professor
Name of the College: Herambachandra College

Annexure – IB
 Student’s Declaration

I hereby declare that the project work with the title “Impact of Goods and Service Tax (GST)
on Consumers in India.” submitted by me for the partial fulfilment of the degree of B.com.
Honours in Accounting & Finance under the University of Calcutta is my original work and
has not been submitted earlier to any other university/institution for the fulfilment of the
requirement for any course of study.
I also declare that no chapter of this manuscript in whole or in part has been incorporated in
this report from any earlier work done by others or by me. However, extracts of any literature
which has been used for this report have been duly acknowledged providing details of such
literature in the references.

Place: Signature:
Date: Name: Subham Dey
Registration No.: 043-1111-0638-21
 TABLE OF CONTENT

SL. NO. Chapter Name Page No.

1 Introduction
1.1 Background
1.2 Need to Study
1.3 Literature Review
1.4 Objectives of the Study
1.5 Methodology
1.6 Limitations of the Study
1.7 Chapter Planning
2 Conceptual Framework
2.1 Concept of GST
2.2 National Scenario of the Impact of GST on Consumers
3 Data Analysis & Findings
3.1 Data Analysis
3.2 Findings
4 Conclusion & Recommendation
4.1 Conclusion
4.2 Recommendation

Bibliography
Questionnaires
 CHAPTER 1
INTRODUCTION
1.1 BACKGROUND:
In the Indian System, first-time discussion on GST has been started in 2000. In 2000, The
Vajpayee Govt. started a discussion on GST by setting up an empowered committee. The
committee was headed by Asim Dasgupta (FM of West Bengal). In 2016 – The
Constitution122nd amendment bill passed in Rajyasabha for levy of GST on 3rd Aug 2016.
Further, on 8th Aug 2016, in Loksabha, unanimously passed the 122nd Constitutional
Amendment Bill as amended by the Rajyasabha with all 443 members voting in favour.
All the taxes mentioned earlier are proposed to be subsumed in a single tax called the Goods
and Services Tax (GST) which will be levied on the supply of goods or services or both at
each stage of the supply chain starting from manufacture or import and till the last retail
level. So basically any tax that is presently being levied by the Central or State Government
on the supply of goods or services is going to be converted into GST.
GST is proposed to be a dual levy where the Central Government will levy and collect
Central GST (CGST) and the State will levy and collect State GST (SGST) on intra-state
supply of goods or services. The Centre will also levy and collect Integrated GST (IGST) on
inter-state supply of goods or services. Thus GST is a unifier that is going to integrate various
taxes being levied by the Centre and the State at present and provide a platform for forging an
economic union of the country.
This tax reform will lead to the creation of a single national market, a common tax base, and
common tax laws for the Centre and States.A significant feature of GST is that input tax

credit will be available at every stage of supply for the tax paid at the earlier stage.
 Source:https://taxguru.in/goods-and-service-tax/gst-saga-story-extraordinary-national-
ambition.html
This feature would mitigate cascading or double taxation in a major way. This tax reform
will be supported by extensive use of Information Technology [through Goods and Services
Tax Network (GSTN)], which will lead to greater transparency in tax burden, accountability
of the tax administrations of the Centre and the States, and also improve compliance levels at
the reduced cost of compliance for taxpayers. Studies indicate that the introduction of GST
would instantly spur economic growth and can potentially lead to additional GDP growth in
the range of 1% to 2%.
Goods and Services Tax (GST) is an indirect tax (or consumption tax) used in India.On the
supply of goods and services. It is a comprehensive, multistage, Destination-based tax:
comprehensive because it has subsumed almost all the Indirect taxes except a few state taxes.
Multi-staged as it is, the GST is imposed at Every step in the production process but is meant
to be refunded to all parties in he various stages of production other than the final consumer
as a Destination-based tax, it is collected from the point of consumption, and not a point of
origin like previous taxes. The Goods and Service Tax Act was passed in the Parliament on
29th March, 2017 and came into effect on 1st July, 2017.
In other word, the introduction of goods and services tax (GST) as a single taxation system is
considered to Be a major tax reform in the country. All most all the sectors of the economy
are now Experiencing the effects of goods and services tax. Consumers are no way an
exception to the Aftermath of the goods and services tax.
Since a decade, man has evolved and there has been an evident technological transition as
Well. Today the needs of a common man have become much more than the traditional “Roti,
Kapda and Makaan”. After introduction of the biggest tax reform in the history of India, if
The common perception that the Government has fed us, is to be believed then the prices will
Be cheaper than before. However, the reality is a little different. The incorporation of all
Taxes into one tax i.e. GST, has impacted on consumers.

Source:https://www.wishfin.com/gst-impact/gst-impact-on-common-man-taxpayers/?amp
1.2 NEED TO THE STUDY:
The study will give the idea of the following aspects –
 To understand the perception and knowledge about GST regime.
 To gauge the consumer’s mind and understand the difference betweenthe
consumptions of different types of products and services before and after GST.
 To understand, the expectations and satisfaction level of consumers on GST.
 To know, what kind of problem consumers are facing after GST implementation.
 Overall to understand the impact of GST on consumers.

1.3 LITERATURE REVIEW:

Tripathi, (2011)
The authors have discussed the concerns faced in India post the implementation of VAT, the
learning we could take From it, the effects on the social order in India. All this is Discussed
in the background of the impending GST in India. The Authors have discussed the various
issues around VAT, how it Impacts the different sections of society. VAT is present in all
Goods produced and GST would be present in all goods and Services produced making it a
tax payable by all sections of the Society. Thus it is a tax which though good to increase the
revenue Impacts even the poorer sections of society.

Herekar, (2012)
The Ministry of Finance had set up the Task Force with Mr. V. Kelkar as the Chairman of the
Task Force. The Main task of the Task Force was to evaluate the Impact of the Proposed GST
on the Indian economy. The author in the paper has Studied the different parts of GST and
their impact on the common Man, the Business and the economy. The author has concluded
Based on secondary datathat if GST is introduced in India, it would Have a positive impact
on the overall Economy.

Gowtham Ramkumar (2017)

In his study titled “Impact of GST on consumer spending ability in Chennai City” concluded
that, the consumers are left with less money after GST, Rise in inflation level and falling
prices of certain goods after GST implementation. He further concluded that, the GST Rates
will have a significant impact on the spending ability Of the consumers and suggested that
benefits of input tax Credit must be transferred by the companies to the Consumers.

Manoj Kumar Agarwal (2017)

In his research paper Titled “People’s perception towards GST – An empiricalStudy” found
that, the people feel that GST has increased the Legal compliances And it will increase the
tax collection of The government. He further found that The GST has Increased the tax
burden of businessmen and suggested that Efforts Should be made on the part of the
government to ensure people have a proper understanding of the goods and Services tax
implemented in India.

Anshu Ahuja (2017)

In the research paper titled “Perception of people towards goods and services Tax” found that
the consumers are satisfied that goods and services tax will Reduce tax evasion in the country
and will increase the transparency in the tax Structure. He further suggested that the
government should give some relaxation To farmers and small-scale businesses to avoid the
adverse impact of goods and Services tax on their income level.

MitraPriya (2017)
She stated GST as a Game changer in Indian Economy. The paper showed that GST reduced
the complexity of various taxes and also removed cascading effect. Tax structure shown in
paper in which various tax rates included. Impact on Tax incidence included various sectors
such as Telecom, E- Commerce, Automobile, real estate, banking and consumer goods.
Impact on input tax credit showed that there would be availability of cross credit utilization in
CGST and SGST.

Source:https://www.alamy.com/stock-image-government-tax-review-gst-illustration-as-eps-
10-file-167496596.html
1.4 OBJECTIVES OF STUDY:
The subject matter for this research project is to study about Impact of Goods and Service
Tax (GST) on consumers. It may be considered GST is undoubtedly a good Attempt to
reform the existing indirect tax structure of India. The main aim of theResearch is to
analysebehaviour of consumers spending nature, effect on daily Income. The study of
consumer behaviour will help to gauze the consumer’s mind And understand the various
related aspects of individuals. Understanding of Consumer behaviour will make the study
more interesting, understandable and Increase awareness of its practical implications. This
project consists of differentObjectives. They are as follows-

• To know, Consumer’s perception about products and services.

• To identify the impact of Goods and Service Tax on consumer behaviour.
• To understand the consumer’s satisfaction level about products and
Services after GST implementation.
• To analyse the relationship between income and spending behaviour of
Consumers.
• To measure the impact of GST on the spending behaviour of consumers.

1.5 METHODOLOGY:

Methodology Adopted –
Methodology basically means the selection of the various methods and techniques in the
research-conducted. The various step includes :-
 Sampling Methodology:

Sample Size:36 Respondents

 Sample Unit:

1. Student and different age group of people has been taken sample unit.
2. Sample Target – 50
3. Response – 36
4. Research and survey period - The research and survey period was carried on
for1-2 weeks.

 Sampling Area : In East Kolkata.

Data Collection –
 Primary data has been used by me in the form of Questionnaire & Observation, which
are two basic methods of collecting primary data, with My research objectives.
 Secondary data sources like various internet sites such as google.com &
studymode.com , Newspaper , Journals, articles , research papers etc. has been used.
Few of the data is also Taken from authentic government tracking websites.

1.6 LIMITATIONS OF THE STUDY:

Every scientific study has certain limitations and their present study is no more Exception.
Below mentioned are some of the limitations of the study:-

• The study was conducted with the basic assumption that the information was givenby the
respondents.
• Lack of detailed study on the sector due to the secondary source is also limited.
• Lack of data available on the website.
• Preparation of such detailed project work within limited words.
• Preparation of such a detailed project within short span of time.
• The study is an attempt to deal with the mathematical aspects to calculate Its impact on the
common man’s wallet.
• People were hesitant to disclose the true facts.

Source:https://www.gsthelplineindia.com/blog/2017/04/21/how-gst-impact-lives-common-
man/
1.7 CHAPTER PLANNING:
The content of the following chapters are show:

CHAPTER 1:-
This chapter contains brief knowledge about impact of GST on consumers.

CHAPTER 2:-
This chapter contains the framework of the basic concept of GST and the national Scenario of
the Impact of GST consumers in India, on which I’m focusing my Project report.

CHAPTER 3:-
In this chapter, my survey analysis about the “ Impact of GST on consumers in India” is
shown in the presentational pie chart form among the different age Groups.

CHAPTER 4:-
This chapter contains a thorough overview / conclusion about the whole project Report. Also,
recommendations regarding the Impact of GST on Consumers.
Source:https://www.shutterstock.com/image-vector/good-service-tax-gst-concept-finanical-
1073056058

CHAPTER 2
CONCEPTUAL FRAMEWORK

2.1 Concept of GST: Goods and Services Tax (GST) is an indirect tax (or consumption
tax) used in India on the supply of goods and services. The introduction of Goods and
Services Tax on 1 st of July 2017 was a very significant step in the field of indirect tax
reforms in India. By amalgamating a large number of Central and State taxes into a single
tax, the aim was to mitigate cascading or double taxation in a major way and pave the way
for a common national market. From the consumer point of view, the biggest advantage
would be in terms of a reduction in the overall tax burden on goods, which was estimated to
be around 25%-30%. Introduction of GST would also make Indian products competitive in
the domestic and international markets. Studies show that this would have a positive impact
on economic growth. Last but not the least, this tax, because of its transparent and
selfpolicing character, would be easier to administer.
Source: https://rb.gy/vi56aa

 DIFFERENT RATES OF GST:

The GST Council determines the GST rate slabs. The GST Council reviews the rate slabs for
goods and services on a regular basis. GST rates are typically high for luxury items and low
for necessities. GST rates in India for various goods and services are divided into four slabs:
5% GST, 12% GST, 18% GST, and 28% GST.

Since the inception of the Goods and Service Tax, the GST Council has revised the GST rates
for various products several times (GST). The most recent rate revision went into effect at the
49th GST Council Meeting on 18 February 2023 and was chaired by the Finance Minister of
India Srimati Nirmala Sitharaman in Delhi with Delhi’s Finance Minister Mr.Pankaj
Chaudhury also being a part of themeeting. Previously, there had been numerous GST
Council Meetings at which certain rate revisions were introduced.
 The GST Rates in 2023:

The following are some of the changes that were made-

Category Old GST Rates New GST Rates

Railways Goods and Parts under Chapter 86 12% 18%
Pens 12% 18%
Metal Concentrates and Ores 5% 18%
Certain Renewable Energy Devices 5% 12%
Recorded media reproduction and print 12% 18%
Broadcasting, sound recordings, and licensing 12% 18%
Printed material 12% 18%
Packing containers and boxes 12% 18%
Scrap and polyurethanes 5% 18%
Source:https://groww.in/p/tax/gst-rates

Decrease in the GST Rates:

Category Old GST Rates New GST Rate

If vehicles are equipped with retrofitting kits for disabled people, Applicability 5%
Keytruda for cancer 12% 5%
IGST is levied on goods sold at the Indo-Bangladesh border Applicability NIL

Source: https://groww.in/p/tax/gst-rates

Kinds of GST Rates and Structures in India:

The primary GST slabs for regular taxpayers are currently 0% (nil-rated), 5%, 12%, 18%, and
28%. There are a few GST rates that are less commonly used, such as 3% and 0.25%.

Furthermore, the taxable composition persons are required to pay General Service Tax at
lower or nominal rates such as 1.5%, 5%, or 6% on their turnover. TDS and TCS are also
concepts under GST, with rates of 2% and 1%, respectively.
 These are the total IGST rates for interstate supplies or the sum of CGST and SGST for
intrastate supplies. To calculate the GST amounts on a tax invoice, multiply the GST rates by
the assessable value of the supply.

Further more, in addition to the above GST rates, the GST law imposes a cess on the sale of
certain items such as cigarettes, tobacco, aerated water, gasoline, and motor vehicles, with
rates ranging from 1% to 204%.

Products Tax Rates

Milk 0%
Eggs 0%
Curd 0%
Lassi 0%
Kajal 0%
Educations Services 0%
Health Services 0%
Children's Drawing &Colouring Books 0%
Unpacked Foodgrains 0%
Unpacked Paneer 0%
Gur 0%
Unbranded Natural Honey 0%
Fresh Vegetables 0%
Salt 0%
Unbranded Atta 0%
Unbranded Maida 0%
Besan 0%
Prasad 0%
Palmyra Jaggery 0%
Phool Bhari Jhadoo 0%

Source: https://groww.in/p/tax/gst-rates
Products Tax Rates
Sugar 5%
Tea 5%
Packed Paneer 5%
Coal 5%
Edible Oils 5%
Raisin 5%
Domestic LPG 5%
Roasted Coffee Beans 5%
PDS Kerosene 5%
Skimmed Milk Powder 5%
Cashew Nuts 5%
Footwear (< Rs.500) 5%
Milk Food for Babies 5%
Apparels (< Rs.1000) 5%
Fabric 5%
Coir Mats, Matting & Floor Covering 5%
Spices 5%
Agarbatti 5%
Coal 5%
Mishti/Mithai (Indian Sweets) 5%
Life-saving drugs 5%
Coffee (except instant) 5%

Source: https://groww.in/p/tax/gst-rates
 Products Tax Rates
Butter 12%
Ghee 12%
Computers 12%
Processed food 12%
Almonds 12%
Mobiles 12%
Fruit Juice 12%
Preparations of Vegetables, Nuts Fruits, or other parts 12%
Packed Coconut Water 12%
Umbrella 12%

Source : https://groww.in/p/tax/gst-rates

Products Tax Rates

Hair Oil 18%
Capital goods 18%
Toothpaste 18%
Industrial Intermediaries 18%
Soap 18%
Ice-cream 18%
Pasta 18%
Toiletries 18%
Corn Flakes 18%
Soups 18%
Computers 18%
Printers 18%

Source:https://groww.in/p/tax/gst-rates
Products Tax Rates
Small cars (+1% or 3% cess) 28%
High-end motorcycles (+15% cess) 28%
Consumer durables such as AC and fridge 28%
Beedis are NOT included here 28%
Luxury & sin items like BMWs, cigarettes 28%
and aerated drinks (+15% cess) 28%
Source: https://groww.in/p/tax/gst-rates

HSN and SAC System:

All the goods and services to be used in India GST are classified by an HSN code (Harmonized
System of Nomenclature) and by the SAC (Service Accounting Codes) and will help to remove
the hurdle/obstacle in the international trade. In addition, these HSN and SAC codes have been
used in invoices and record-keeping, wherein the goods and services offered can be identified
easily.GST rates have been set in five slabs based on the HSN or SAC code, namely NIL, 5%,
12%, 18%, and 28%.

Source: https://r.search.yahoo.com

 HSN System

The World Customs Organization developed the HSN code, or Harmonized System
Nomenclature code number, as an internationally accepted commodity description and
coding system. More than 200 countries use the HSN code as the basis for their customs
tariffs.

Currently, over 98% of international trade merchandise is classified using the HSN code.
With the HSN code serving as a universal classification for goods, the Government has
decided to use the HSN code for GST classification and levy.

The current version used in international trade transactions is the HSN Code 2017 Edition.
Prior to the implementation of the HSN Code-2017 Edition, all international trade
transactions used the HSN Code-2012 Edition. The HSN Codes are divided into sections and
chapters, and each chapter contains the Harmonized System's six-digit codes.
  SAC System

The Service Tax Department of India developed the SAC Code, or Services Accounting
Code, as a classification system for services. The General Service Tax rates for services are
fixed in 5 slabs using the SAC code, namely 0%, 5%, 12%, 18%, and 28%. If a service is not
GST exempt or the GST rates are not provided, the default GST rate for services of 18% will
apply.

Source: https://okcredit.in/blog/gst-and-types-of-gst-in-detail/amp/

2.2 Impact of GST on Consumers in Indian Scenario :

Here in India, the maximum population is of the middle class and lower Middle class. In this
scenario, the most important question is what is The impact of GST on a common man or a
middle-class family. There Are lots of questions in the mind of a common man these days
such As: Is there anything new for him or it’s like an old material in a new Package? Is there
any tax relaxation for him in new tax provisions or it Will increase the prices of goods and
services for him?
After GST, there is a single tax provision in the supply chain where each Person is able to
take tax benefit of all the taxes which he already paid, And eventually, the prices become
low. As well as he came to know How much tax he has paid on goods and what is the actual
value of his Goods. Again there is a better tax administration facility in GST so Manipulation
of taxes is not possible. GST has a wider scope so it will Cover a maximum number of the
assesse at each stage tax benefit will Generate and at the end consumers get the benefit for
this.

For any government policy, it is important that the satisfaction in public Should be there as
without satisfaction the policy will not succeed in The same way in which the government
planned.

Here we are trying to understand the new GST from the current Taxation system of India. In
the previous tax regime, we pay indirect tax On each and every service which we consume
which is already taxed at Sometimes we pay the taxes on tax amount too which is called
Cascading effect. The result is that the burden of the increased price is afforded by the end
consumer only and he doesn’t know that how much tax he paid and what is the actual cost of
the material. According to the news sources, there is a slight impact on the consumers after
the GST got implemented. Let’s see common areas where the general public deals every day:
a different point of time.

Let’s Take Some Everyday Examples to Consider the Impact of GST:

 Household Expense In GST, the food items are under zero to 5% tax rate which will
not directly impact the food prices.

Cosmetic services like salon and beauty services are known to become expensive with an
increased 3% GST rate upon them along with no benefit on input tax credit on such services.

Daily household items costs have enhanced due to the implementation of the Goods and
Services Tax (GST) regime. Nearly 54 percent of people in the country are complaining that
the new indirect tax regime implementation has enhanced daily household expenses, as this
influences the common people in the country. Most of the people post GST implementation
has also increased the theatrical expenses the month.

Considering the issues faced by the State Government, In 2the 1st GST Council Meeting, the
government reduced the tax rates on 30 items.

Again in the 22nd and 25th council meeting Government reduced GST rates of various items
including household items thereby benefitting the common man to some extent.

With effect from Nov 10, 2017, some items such as Condensed milk, refined sugar and sugar
cubes, Pasta, Curry paste, mayonnaise, salad dressings, mixed condiments and mixed
seasoning, Diabetic food, etc. get some price cut because it brought under 12% from
18%bracket (As per the recommendation of 23rd GST Council meeting on Nov 10, 2017).
With effect from Jan 18, 2018, a few more items like Sugar boiled confectionery, 20 litters of
drinking water-packed bottles, etc. also get cheaper due to the shift from 18% to 12% slab.

 Car prices With the inclusion of GST, some car prices got a healthy rate cut whereas
some get costlier. Many companies have revised the prices of the car models.
Now, 28% of the rate of GST will be attracted to the purchase of the car with an additional
cess between 1% and 15%.
Cars with Diesel engines of less than 1,500 cc will attract 3% cess.
Small cars with petrol engines less than 1200 cc will attract 1% cess.
Big cars and SUVs with length over 4 meters will attract GST of 28% along with 15% cess.
On electric vehicles, 12% of GST will be imposed.

 Rented Property There is some good news for those who are staying in a rented
house, after GST there is no service tax is levied on residential properties.

However, if the properties are rented for commercial uses such as for shops, offices, and
industrial purposes then it would attract 18% GST.

 Real Estate If a customer buys under-construction property for INR 1 crore, there
will be different cases.

Previously, it was around 5.5 percent VAT and service tax applicable, But under the GST,
12% tax rate applicable to the real estate makes it slightly expensive.

Well, there will be no changes in the ready to move Apartments with a completion certificate,
As they have been kept out of the GST structure.

 Taxi Services If a customer takes a taxi service in which the ride costs 100 rupees,
then there will be a substantial change in the Tax as previously there was around 6%
of service tax while in the GST it is now levied at 5% which will be a marginal saving
for the customer.
 Banking and Insurance services Financial Services are now expensive as there has
been a 3% extra GST tax rate applicable to them.

 Train Fare There is a hike but it will not impact much.

There is a hike of 0.5% of the price of tickets and the cost of transport. So, the increased price
may not even be noticeable depending on the actual price of the ticket.

Additionally, on railway catering service on railway stations (static) and trains (mobile) GST
will be charged at a uniform rate of 5%, including the supplies of foods and drinks made on
stations, platforms, and trains.

 Hotels If in case, a customer books a hotel with a tariff of INR 8000, then the gross
and indirect tax rate i.e. service tax, the luxury tax is around 19 to 25% according to
 the luxury tax rate of the state. Thus, the tax will be calculated around INR 1520 to
INR 2000.

While in the case of GST, there is 28% GST applicable to all the accommodations with a
tariff of about INR 7500, which will take the tax calculation at INR 2100. Overall the tax
ratio is slightly expensive for expensive hotels.

 Air Travels In case, a customer books flight tickets Indian in a domestic economy
class of INR 1000, then the tax rate is varied in both the cases.

Previously there was around 6% of service tax applicable in domestic economy class, while
in the GST, the economic class is taxable at 5%, which will result in slight savings.

While talking about the business class, the tax rate in GST has been increased from 9% to
12%, resulting in an expensive business-class tax case.

 Jewellery After the GST, the tax rate is increased by 1% thus reached from 2% to
3%.
Investment in gold becomes expensive because now the buyer has to pay 3% GST on gold
and 5% on the making charges.

 Mobile Bills GST has increased the burden of mobile phone users.
Both the pre-paid and post-paid users have to pay more bills due to an increase in the tax rate
by 3%.

 Restaurant If in case, a customer orders a meal for INR 1000, then there will be
substantial savings on the restaurant bill.

In the earlier tax scheme, there was VAT at the rate of 12.5% and Service tax @ 6% totalling
at around 18.5%.

While under the GST, an air-conditioned restaurant will be charged at 18% GST, making it
up to minimal cost reduction in the restaurant Bill.
For a middle-class family, the main issues are “Roti, Kapda, and Makaan“. Initially, the
country is troubling with the new tax regime due to the four slab rate structure under GST.
For the long term, the country will be benefited with the new Goods and Service Tax (GST)
regime. The implementation of GST on 1st July shattered the issues related to the cascading
effects of tax and has made a clear and partial way of understanding the personal finances.
 Source: https://www.godigit.com/gst/gst-rates-and-slabs

 Positive Impact of GST on the Consumers (PROS) :

Goods and Services Tax (GST) is an indirect tax on the supply of goods and services in
India. The benefits of GST is quite high for the Indian consumer as it has reduced the burden
of several Taxes and brought it under one roof. It is important to know that GST is a tax that
the buyers don’t pay directly to the government. They pay it to the producers or the sellers.
And, these producers and sellers then pay it to the government.. Read more at:
https://www.fincash.com/l/gst/benefits-of-gstGoods and Services Tax (GST) is an indirect tax
on the supply of goods and services in India. The benefits of GST is quite high for the Indian
consumer as it has reduced the burden of several Taxes and brought it under one roof. It is
important to know that GST is a tax that the buyers don’t pay directly to the government.
They pay it to the producers or the sellers. And, these producers and sellers then pay it to the
government.. Read more at: https://www.fincash.com/l/gst/benefits-of-gstGoods and Services
Tax (GST) is an indirect tax on the supply of goods and services in India. The benefits of
GST is quite high for the Indian consumer as it has reduced the burden of several Taxes and
brought it under one roof. It is important to know that GST is a tax that the buyers don’t pay
directly to the government. They pay it to the producers or the sellers. And, these producers
and sellers then pay it to the government..

Benefits of GST to the Government:-

Goods and Services Tax (GST) was launched with the motto of ‘One Tax One Nation’.
Common and accountable markets help attract foreign investment and promotes Indian
products at an international platform.
Benefits of GST to Traders:-

Traders could be wholesalers, retailers, importers and exporters, etc. One of the major
advantages is the transparency that comes with GST. It makes the business transaction easy
for traders as they have to pay GST for everything they purchase along the supply chain.

Source:https://r.search.yahoo.com/_ylt=Awrx.70gJhlmN0wNuNO7HAx.;_ylu=Y29sbwNzZ
zMEcG9zAzEEdnRpZAMEc2VjA3Ny/RV=2/RE=1712952992/RO=10/RU=https%3a%2f%
2fwww.fincash.com%2fl%2fgst%2fbenefits-of-
gst/RK=2/RS=Pu66pxWkrBK7qZEdfUixu5iRwMI-

 Negative Impact of GST on the Consumers(CONS) :

Compliance burden: You have to submit GST and file the return on time.

At the present time service tax at a 15% rate is being charged on services. Therefore, if GST
is introduced at a higher rate, which is going to happen in the near future, the cost of services
will increase. GST at 18% will be levied on maximum services and will reach 28% for
certain services. Which means all services like telecommunications, banking, Airline, etc.
will become more expensive.

The higher service tax means increased cost of services, It will be added in Common Person’s
monthly expenses.
To bear the cost of additional services, you will have to reset the budget of the common man.

If the actual benefits are not passed on to the consumer and the seller increases his profit
margin, then the prices of the goods may also increase.

Source: https://legodesk.com/legopedia/advantages-and-disadvantages-of-gst/
 CHAPTER – 3
ANALYSIS & FINDINGS
3.1 DATA ANALYSIS:
1. Gender Count

OPTIONS COUNT
MALE 26
FEMALE 10
OTHERS 0
(According the data collected in the month of April,2024)

GENDER COUNT

OTHERS

FEMALE

MALE

0 5 10 15 20 25 30

MALE FEMALE OTHERS

(According the data collected in the month of April,2024)

Interpretation :
The graphical representation of the table shows that out of 36 respondents, 26 were male and
10 were females.
2. What is your age?
Options Count
16-26 26
27-40 3
41-60 5
60+ 2
(According the data collected in the month of April,2024)

AGE

30

25

20

15

10

0
60+
41-60
27-40
16-26

COUNT

(According the data collected in the month of April,2024)

Interpretation:
The graphical representation shows that out of the 36 respondents,26 people belong to the
group 16-26, 3 people belong to 27-40, 5 people belong to group 41-60 and the rest 2 people
belongs to 60+ age group.
3. Which of the following describes you best?
Options Count
Student 24
Employed 5
Self Employed 0
Not Employed 1
Others 6
(According the data collected in the month of April,2024)

Which of the following describes you best?

Others
Not Employed 16%
3%
Self Employed
0%
Employed
14%

Student
67%

(According the data collected in the month of April,2024)

Interpretation :

The graphical representation shoes that out of 36 respondents 67% were

students, 14% were employed, 0% were self employed, 3% were not employed
and 16% were others.
4. Are you aware about GST implementation in India?
Options Count
YES 35
NO 1
(According the data collected in the month of April,2024)

Are you aware about GST iplementation in

India?

3%

YES
NO

97%

(According the data collected in the month of April,2024)

Interpretation :
The graphical representation shows that out of 36 respondents 35 people are aware about
GST implementation in India and 1 people not aware about GST implementation in India.
5. Do you agree GST is a fair substitute for previous tax system?
Options Count
YES 33
NO 0
SOMETIMES 3
(According the data collected in the month of April,2024)

Do yoou agree GST is a fair substitute for previous

Tax system?

0% 8%

92%

YES NO SOMETIMES

(According the data collected in the month of April,2024)

Interpretation :
The graphical representation shows that out of 36 respondents, 33 people said YES, 0 people
said NO and 3 people said SOMETIMES.
6. Should GOVT. do some more awareness programs for increasing awareness about GST
implementation in India?
OPTIONS COUNT
YES 29
NO 2
SOMETIMES 5
(According the data collected in the month of April,2024)

SHOULD GOVT. DO SOME MORE AWARENESS

PROGRAMS FOR INCREASING AWARENESS
ABOUT GST?
30

25

20

15

10

0
YES
NO
SOMETIMES

COUNT

(According the data collected in the month of April,2024)

Interpretation :
The graphical representation shows that out of 36 respondents, 29 people said yes for Govt.
should increase awareness programs upon GST, 2 said no and 5 people agreed with
sometimes.
7. Does GST contribute additional revenue for the economy?
Options COUNT
YES 25
NO 3
SOMETIMES 8
(According the data collected in the month of April,2024)

Does GST contribute additional revenue for

the economy?

22%

YES
NO
8%
SOMETIMES

70%

(According the data collected in the month of April,2024)

Interpretation :
The graphical representation of the table shows that out of 36 respondents , 25 responded that
GST contribute additional revenue to the economy, 3 said no and 8 responded sometimes.
8. Does GST increase the inflation in the country?
OPTIONS COUNT
YES 17
NO 3
SOMETIMES 16
(According the data collected in the month of April,2024)

Does GST increase the inflation in the

country?

YES
45% 47% NO
SOMETIMES

8%

(According the data collected in the month of April,2024)

Interpretation :
The graphical representation of the table shows that out of 36 respondents, 17 said that GST
increase the inflation in the country,3 said no and 16 said sometimes.
9. Do you agree that GST bridges the gap between low and high-income earners?
OPTIONS COUNT
YES 21
NO 6
SOMETIMES 9
(According the data collected in the month of April,2024)

Do you agree that GST bridge the gap

between low & high income earners?

40
21

20
6
0 9
Do you agree that GST bridge the gap between
loe & high income earners?

YES NO SOMETIMES

(According the data collected in the month of April,2024)

Interpretation :
The graphical representation of the table shows that out of 36 respondents, 21 said yes to that
GST bridge the gap between low and high income earners, 6 said no and 9 said no.
10. How has GST impacted the pricing of your product and services?
OPTIONS COUNT
INCREASE 34
DECREASE 0
REMAIN SAME 2
(According the data collected in the month of April,2024)

HOW GST IMPACTED THE PRICING OF YOUR

PRODUCTS AND & SERVICES?
INCREASE DECREASE REMAIN SAME

6%
0%

94%

(According the data collected in the month of April,2023)

Interpretation :
The graphical representation of the table shows that out of 36 respondents, 34 responded that
after GST implementation the price of products and services are increased, 0 said GST
implementation made decrease in the product and services and 12 said after implementation
of GST the prices of product and services remain same.
11. Does GST regime provide enough incentives to exporter of goods & services?
OPTIONS COUNT
YES 25
NO 7
SOMETIMES 4
(According the data collected in the month of April,2024)

Does GST regime provide enough incentives

to exporter of Goods & Services?

SOMETIMES 4

NO 7

YES 25

0 5 10 15 20 25 30

COUNT

(According the data collected in the month of April,2024)

Interpretation :
The graphical representation of the table shows that out of 36 respondents, 25 said yes that
GST regime provide enough incentives to exporter of goods and services, 7 people doesn’t
agree with that and 4 said sometimes.
12. Has GST impacted your procurement/distribution of supply chain?
OPTIONS COUNT
YES 26
NO 3
SOMETIMES 7
(According the data collected in the month of April,2024)

HAS GST IMPACTED PROCUREMENT/

DISTRIBUTION OF SUPPLY CHAIN?
30

25

20

YES
15
NO
YES, 26
SOMETIMES
10

5
SOMETIMES, 7
NO, 3
0
YES NO SOMETIMES

(According the data collected in the month of April,2024)

Interpretation :
The graphical representation of the table shows that out of 36 respondents, 26 said yes that
GST impacted their procurement/ distribution of supply chain, 3 said no and 7 said
sometimes.
13. Does newly implemented GST confuse the customers?
OPTIONS COUNT
YES 10
NO 18
SOMETIMES 8
(According the data collected in the month of April,2024)

Does newly implemented GST confuse the

customers?

SOMETIMES YES
22% 28%

YES
NO
NO SOMETIMES
50%

(According the data collected in the month of April,2024)

Interpretation :
The graphical representation of the table shows that out of 36 respondents, 10 people said that
they are getting confuse after GST, 18 said they are not facing any confusion and 8 people
said sometimes they are getting confuse.
14. Are you agree with the implementation of GST in India?
OPTIONS COOUNT
YES 32
NO 2
SOMETIMES 2
(According the data collected in the month of April,2024)

Are you agree with the implementation of

GST in India?

SOMETIMES 2

NO 2

YES
32

0
5
10
15
20
25
30
35

COUNT

(According the data collected in the month of April,2024)

Interpretation :
The graphical representation of the table shows that out of 36 respondents 34 agreed with
GST implementation, 2 said no to GST implementation and 2 said they sometimes agree with
GST implementation.
3.2 Findings:
• Most of the consumers are appreciate that GST is the fair substitute of the previous tax
system.
• Most people want the Govt. Should increase awareness programs for GST awareness.
• Consumers are says that GST is bringing additional revenue to the country.
• Most of the respondents say that GST is increasing inflation.
• Consumers are saying that GST makes a bridge between high and low-income earners.
• Most of the respondents say that GST is increasing their products and services prices.
• Mostly all consumers say that newly implemented does not GST makes them confuse.
• Consumers are appreciate implementation of GST in India.
 CHAPTER –4
CONCLUSION & RECOMMENDATION
4.1 Conclusion:
The unified tax system intends at one nation – one market – one tax and that is what Goods
and Service Tax is all about. However, the general public is not fully aware of the pros and
cons of this tax system. GST is a path-breaking indirect tax reform that is undeniably a fine
step on the right track.
Goods and Service Tax in India reinstated a number of indirect taxes like Value Added Tax
(VAT), Service tax, CST, CAD, etc., and cut down all the convoluted exhaustive processes
that were present before with manifold indirect taxes.
Simplified examples of how certain products are now costing less than what it Was before
would make more people make out why this GST change was considered necessary. The
government needs to do a better job in making more people aware of the importance of
Goods and Service Tax. GST is an Immense revolution in the structure of the Indirect Tax
System in India and more Updated and aware citizens will make this more successful. Even
though the implementation of GST has led to the growth of the economy its rates have to be
revised at times when needed to be Based on the necessities of products and services. As it is
tied up with Digital India Regime, it became difficult for the Illiterates to understand the
procedural concepts of the GST. The government needs to intervene to ensure that the poor is
protecting from GST effect.

4.2 Recommendation:

• More campaigns must be initiated to ensure better awareness amongst the general public
towards GST in India.
• GST should made more user friendly.
• Indian Government authorities can reduce the GST rates applicable to essential
commodities to help the consumers to spend more on essential commodities as the impact of
GST is more on essential items.
• Frequent changes in the GST must be appropriately conveyed to the general public
irrespective of the education/literacy level.
• An exclusive website can be maintained as a guide to the layman by feeding in simple
explanations and also updating the slab rates of the tax whenever there is a change.
• Changes to the rates should be updated and available in a simple website which the public
can use to refer.
• Including some exempted products in GST regime.
• More public awareness camp must be set up in both rural and urban areas across the country
to ensure a positive perception from the public.
 BIBLIOGRAPHY

"Brief History Of GST | Goods and Services Tax Council"

http://www.gstcouncil.gov.in/brief-history-gst”
“GST Impact: How GST will impact a common man’s budget – The Economic
Times”https://meconomictimescom.cdn.ampproject.org/v/s/m.economictimes.com/news/econ
omy/policy/howgst-will-impact-a-common-mans-budget/amp_articleshow”
“GST Rates 2023 – Complete List of Goods and Services Tax Slabs”
https://www.paisabazaar.com/tax/gst-rates/
https://groww.in/p/tax/gst-rates
https://en.m.wikipedia.org/wiki/Goods_and_Services_Tax_(India)
“GST (Goods and Services Tax) Impact on Common Man | SAG Infotech”
https://blog.saginfotech.com/gst-impact-on-common-man
“(PDF) Consumers” perception towards GST Rates in India”
https://www.researchgate.net/publication/332199274_Consumers_perception_towardsGSTRa
tes_in_India”
 QUESTIONNAIRES
A study on “Impact of GST on consumers in India”
1. Name _________________________
2. Gender
o Male
o Female
o Others
3. What is your age?
o 16-26.
o 27-40
o 41-60
o 60+
4. Which of the following describes you best?
o Students
o Employed
o Self Employed
o Not Employed
o OTHERS
5. Are you aware about GST implementation in India?
o Yes
o No
6.Do you agree GST is a fair substitute for previous tax system?
o Yes
o No
o Sometimes
7. Should Government do some more awareness programs for increasing awareness of GST
implementation in India?
o Yes
o No
o Sometimes
8. Does GST contribute additional revenue for the economy?
o Yes
o No
o Sometimes
9.Does GST increase the inflation in the country?
o Yes
o No
10. Do you agree GSTbridge the gap between low and high income earners?
o Yes
o No
o Sometimes
11. How has GST impacted the pricing of your products or Services?
o Increase
o Decrease
o Remain same
12. Does GST regime provide enough incentives to exporter Of goods and services?
o Yes
o No
o Sometimes
13. Has GST impacted procurement / distribution Supply chain?
o Yes
o No
o Sometimes
14. Does newly implemented GST confuse the customers?
o Yes
o No
o Sometimes
15. Are you agree with the implementation of GST in India?
o Yes
o No
o Sometimes