GST

Analytical Study on Impact of GST on Common Man
Chapter 1
Introduction to analytical study on impact of GST on common man
Synopsis
1.1 Meaning
1.2 Different Types of Taxes.
1.3 Tax Laws before GST.
1.4 Need of GST
1.5 History and Background.
1.6 The Major Chronological Events That Have Led To the Introduction of GST.
1.7 Bills Passed For the Implementation of GST Regime
1.8 Changes GST Has Brought In.
1.9 Tax Rate by GST.
1.10 Eligibility
1.11 Working of GST.
1.12 Stages of GST
1.13 GST Rates Comparison Existing Tax System V/S New Taxation
1.14 Important Aspects of GST.
1.15 Key Features of GST
1.16 Benefits of GST.
1.17 Drawbacks of GST.
1.18 Criticism
1.19 Impact of GST on Common Man
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Chapter 1 Introduction:
1.1 Meaning
Some Important Terms:
Tax:
Tax in general, is the imposition of financial charges upon an individual or a company
by the Government of India or their respective state or similar other functional
equivalents in a state. The computation and imposition of the varied taxes prevalent in
the country are carried on by the Ministry of Finance’s Department of Revenue.
During the year of 2010 – 2011, the gross collection of tax amounted to around INR.
7.92 trillion, where the direct tax has got 56 % contribution and the indirect tax has
got 44 % contribution. In 2014-15 the gross tax collection was up by 546661crores or
by a percentage of 12.93% as compared to what is was in the fiscal year 2013-14.
GST:
GST is an Indirect Tax which has replaced many Indirect Taxes in India. The Goods
and Service Tax Act was passed in the Parliament on 29th March 2017. The Act came
into effect on 1st July 2017; Goods & Services Tax Law in India is
a comprehensive, multi-stage, destination-based tax that is levied on every value
addition.
In simple words, Goods and Services tax (GST) is an indirect tax levied on the supply
of goods and services. This law has replaced many indirect tax laws that previously
existed in India.
GST is one indirect tax for the entire country.

So, before Goods and Service Tax, the pattern of tax levy was as follows
Under the GST regime, the tax is levied at every point of sale. In the case of intra-
state sales, Central GST and State GST are charged. Inter-state sales are chargeable to
Integrated GST.
Now let us try to understand the definition of Goods and Service Tax – “GST is
a comprehensive, multi-stage, destination-based tax that is levied on every value
addition.”
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Why GST has been proposed?

Our Constitution empowers the Central Government to levy excise duty on
manufacturing and service tax on the supply of services. Further, it empowers the
State Governments to levy sales tax or value added tax (VAT) on the sale of goods.
This exclusive division of fiscal powers has led to a multiplicity of indirect taxes in
the country. In addition, central sales tax (CST) is levied on inter-State sale of goods
by the Central Government, but collected and retained by the exporting States.
Further, many States levy an entry tax on the entry of goods in local areas.
This multiplicity of taxes at the State and Central levels has resulted in a complex
indirect tax structure in the country that is ridden with hidden costs for the trade and
industry. In order to simplify and rationalize indirect tax structures, Government of
India attempted various tax policy reforms at different points of time. A system of
VAT on services at the central government level was introduced in 2002. The states
collect taxes through state sales tax VAT, introduced in 2005, levied on intra-state
trade and the CST on inter-state trade. Despite all the various changes the overall
taxation system continues to be complex and has various exemptions.
This led to the idea of "One nation One Tax" and introduction of GST in Indian
financial system. This is simply very similar to VAT which is at present applicable in
most of the states and can be termed as National level VAT on Goods and Services
with only one difference that in this system not only goods but also services are
involved and the rate of tax on goods and services are generally the same.
Common Man:
Common man is someone who follows the status quo. A person who does things that
are accepted by society as they are supposed to be done. For example in most of the
world
* One is born
* They go to school
* They graduate and get a job (nine to five)
* They get married
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* They get children

* As they get older they plan for retirement
* Then they retire
What can be seen in an common man is the lack of incentive to stand out. They
usually do things as they have been done for years or as society requires them to do.
1.2 Different Types of Taxes:
Prevalence of various kinds of taxes is found in India. Taxes in India can be either
direct or indirect. However, the types of taxes even depend on whether a particular tax
is being levied by the central or the state government or any other municipalities.
1.3 Tax Laws before GST

In the earlier indirect tax regime, there were many indirect taxes levied by both state
and centre. States mainly collected taxes in the form of Value Added Tax (VAT).
Every state had a different set of rules and regulations. Interstate sale of goods
was taxed by the Centre. CST (Central State Tax) was applicable in case of interstate
sale of goods. Other than above there were many indirect taxes like entertainment
tax, octroi and local tax that was levied by state and centre. This led to a lot of
overlapping of taxes levied by both state and centre. For example, when goods were
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manufactured and sold, excise duty was charged by the centre. Over and above Excise
Duty, VAT was also charged by the State. This lead to a tax on tax also known as the
cascading effect of taxes. The following is the list of indirect taxes in the pre-GST
regime:
 Central Excise Duty

 Duties of Excise
 Additional Duties of Excise
 Additional Duties of Customs
 Special Additional Duty of Customs
 Cess
 State VAT
 Central Sales Tax
 Purchase Tax
 Luxury Tax
 Entertainment Tax
 Entry Tax
 Taxes on advertisements
 Taxes on lotteries, betting, and gambling
CGST, SGST, and IGST has replaced all the above taxes. However, the chargeability
of CST for Inter-state purchase at a concessional rate of 2%, by issue and utilisation
of c-Form is still prevalent for certain Non-GST goods such as: (i) Petroleum crude;
(ii) High-speed diesel; (iii) Motor spirit (commonly known as petrol); (iv) Natural
gas; (v) Aviation turbine fuel; and (vi) Alcoholic liquor for human consumption in
respect of following transactions only:
 Resale
 Use in manufacturing or processing
 Use in the telecommunication network or in mining or in the generation or
distribution of electricity or any other power
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1.4 Need of GST:
Following are some of the points that can easily explain the need for GST:-
Tax Structure will be Simple: – At present, there are huge number of taxes that has
to pay by consumers, with GST it will single tax to pay, which is much easier to
understand. For businesses, accounting complexities will reduce and results less
paperwork, which will save both time and money. GST will increase economic GDP
by 2%-2.5%.
Tax revenue will increase: Simple tax structure will bring more tax payers and in
return it will be revenue for government.
Competitive pricing: What GST will do? Well, it will eliminate all other taxes of
indirect taxes and this will effectively mean that tax amount paid by end users
(consumers) will reduce. As in Economics, lower will the prices, more will be
demand for that product, results in more consumption of goods, which will be
benefited to companies.
Boost to exports: If Indian market will be competitive in pricing, then more and
more foreign players will try to enter the market, which results in more numbers of
exporters and benefits to Indian Market. As far there is no tax rate is finalized, but yes
GST is much needed in the countries where, it lacks transparency and complex
taxation system. There is a question in everyone’s mind……”Do we have to pay tax
at different rates and at different levels? Is there no solution to this? Yes, the solution
to this is implementation of GST. GST will take away cascading effect of various
taxes that are charged on sale/ production/ purchase and so. Products reaches to
customers at very high rate as compared to manufacturing, so with GST there will be
only one tax and it will reduce burden to pay off.
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1.5 History and Background:
The GST journey began in the year 2000 when a committee was set up to draft law. It
took 17 years from then for the Law to evolve. In 2017 the GST Bill was passed in the
Loksabha and RajyaSabha On 1st July 2017 the GST Law came into force.
Bringing together 35 diverse stakeholders to nurture and roll out an indirect tax
transformation is the hallmark of Goods and Services Tax (GST) introduction. It has
had its share of relentless efforts over several years, to bring all states and union
territories in sync. As we complete one year of the GST, it would be worthwhile to
look back to see how the journey has been so far.
The key principles adopted for designing GST were - Widening of the tax base,
elimination of the cascading effect, transparency and simplicity, and automation of
compliance.
The design features of the regulation have resulted in almost doubling of the taxpayer
base (from 6.7 mio to 1.1 mio) with the first six months of introduction. It has taken
over six decades to build the existing tax base, and only six months to amplify it. This
is a significant feat, enabling wider coverage, more transparency and robust tax
collections. As a matter of fact, it is also improving direct tax collections as a
consequence.
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Mitigation of the cascading impact has resulted in an increase of Indian

competitiveness in the global market. Businesses now recover much larger tax credits
than before.
Additionally, the anti-profiteering provisions served as a check on any potential
inflationary impact. With the exception of petroleum products, the government seems
to have firmly held the reins on the inflation rates post GST. This marks an exception
from the general global experience of price rise post VAT/ GST.
1.6 The Major Chronological Events That Have Led To the Introduction of
GST:
GST is being introduced in the country after a 13 year long journey since it was first
discussed in the report of the Kelkar Task Force on indirect taxes. A brief chronology
outlining the major milestones on the proposal for introduction of GST in India is as
follows:
 In 2003, the Kelkar Task Force on indirect tax had suggested a comprehensive Goods
and Services Tax (GST) based on VAT principle.
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 A proposal to introduce a National level Goods and Services Tax (GST) by April 1,
2010 was first mooted in the Budget Speech for the financial year 2006-07.
 Since the proposal involved reform/restructuring of not only indirect taxes levied by
the Centre but also the States, the responsibility of preparing a Design and Road Map
for the implementation of GST was assigned to the Empowered Committee of State
Finance Ministers (EC).
 Based on inputs from Govt of India and States, the EC released its First Discussion
Paper on Goods and Services Tax in India in November, 2009.
 In order to take the GST related work further, a Joint Working Group consisting of
officers from Central as well as State Government was constituted in September,
2009.
 In order to amend the Constitution to enable introduction of GST, the Constitution

(115th Amendment) Bill was introduced in the Lok Sabha in March 2011. As per the
prescribed procedure, the Bill was referred to the Standing Committee on Finance of
the Parliament for examination and report.
 Meanwhile, in pursuance of the decision taken in a meeting between the Union

Finance Minister and the Empowered Committee of State Finance Ministers on 8th
November, 2012, 'Committee on GST Design', consisting of the officials of the
Government of India, State Governments and the Empowered Committee was
constituted.
 This Committee did a detailed discussion on GST design including the Constitution
(115th) Amendment Bill and submitted its report in January, 2013. Based on this
Report, the EC recommended certain changes in the Constitution Amendment Bill in
their meeting at Bhubaneswar in January 2013.
 The Empowered Committee in the Bhubaneswar meeting also decided to constitute

three committees of officers to discuss and report on various aspects of GST as
follows:- (a) Committee on Place of Supply Rules and Revenue Neutral Rates; (b)
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Committee on dual control, threshold and exemptions; and (c) Committee on IGST
and GST on imports.
 The Parliamentary Standing Committee submitted its Report in August, 2013 to the
Lok Sabha. The recommendations of the Empowered Committee and the
recommendations of the Parliamentary Standing Committee were examined by the
Ministry in consultation with the Legislative Department. Most of the
recommendations made by the Empowered Committee and the Parliamentary
Standing Committee were accepted and the draft Amendment Bill was suitably
revised.
 The final draft Constitutional Amendment Bill incorporating the above stated changes
were sent to the Empowered Committee for consideration in September 2013.
 The EC once again made certain recommendations on the Bill after its meeting in
Shillong in November 2013. Certain recommendations of the Empowered Committee
were incorporated in the draft Constitution (115th Amendment) Bill. The revised draft
was sent for consideration of the Empowered Committee in March, 2014.
 The 115th Constitutional (Amendment) Bill, 2011, for the introduction of GST
introduced in the Lok Sabha in March 2011 lapsed with the dissolution of the 15th
Lok Sabha.
 In June 2014, the draft Constitution Amendment Bill was sent to the Empowered
Committee after approval of the new Government.
 Based on a broad consensus reached with the Empowered Committee on the contours
of the Bill, the Cabinet on 17.12.2014 approved the proposal for introduction of a Bill
in the Parliament for amending the Constitution of India to facilitate the introduction
of Goods and Services Tax (GST) in the country. The Bill was introduced in the Lok
Sabah on 19.12.2014, and was passed by the loksabha on 06.05.2015. It was then
referred to the Select Committee of Rajya Sabha, which submitted its report on
22.07.2015.
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 Lok Sabha and Rajya Sabha have unanimously passed the 122nd Constitutional
Amendment Bill in August, 2016 which later got the assent of the President.
1.7 Bills Passed For The Implementation Of GST Regime:
1. The Central Goods and Services Tax Bill 2017 (The CGST Bill)
2. The Integrated Goods and Services Tax Bill 2017 (The IGST Bill)
3. The Union Territory Goods and Services Tax Bill 2017 (The UTGST Bill)
4. The Goods and Services Tax (Compensation to the States) Bill 2017
(The Compensation Bill)
 The CGST Bill makes provisions for levy and collection of tax on intra-state supply
of goods or services or both by the Central Government.
 IGST Bill makes provisions for levy and collection of tax on inter-state supply of
goods or services or both by the Central Government.
 The UTGST Bill makes provisions for levy on collection of tax on intra-UT supply of
goods and services in the Union Territories without legislature. Union Territory GST
is akin to States Goods and Services Tax (SGST) which shall be levied and collected
by the States/Union Territories on intra-state supply of goods or services or both.
 The Compensation Bill provides for compensation to the states for loss of revenue
arising on account of implementation of the goods and services tax for a period of five
years as per section 18 of the Constitution (One Hundred and First Amendment) Act,
2016.
1.8 Changes GST Has Brought In:
In the pre-GST regime, every purchaser including the final consumer paid tax on
tax. This tax on tax is called Cascading Effect of Taxes.
This indirect tax system under GST has improved the collection of taxes as well as
boosted the development of Indian economy by removing the indirect tax barriers
between states and integrating the country through a uniform tax rate.
In the case of Goods and Services Tax, there is a way to claim credit for tax paid in
acquiring input. What happens in this case is, the individual who has paid a tax
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already can claim credit for this tax when he submits his taxes. In the end, every time
an individual is able to claim sale price is reduced and the cost price for the buyer is
reduced because of lower tax liability. The final value of the biscuits is therefore
reduced from Rs. 2,244 to Rs. 1,980, thus reducing the tax burden on the final
customer. GST regime also brought a centralised system of waybills by
the introduction of “E-way bills”. This system was launched on 1st April 2018 for
Inter-state movement of goods and on 15th April 2018 for intra-state movement of
goods in a staggered manner. Under the e-way bill system, manufacturers, traders &
transporters are now able to generate e-way bills for the goods transported from the
place of its origin to its destination on a common portal with ease. Tax authorities are
also benefitted as this system has reduced time at check -posts and help reduce tax
evasion.
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1.9 Tax Rate by GST:

The GST is imposed at variable rates on variable items.
Tax Products
rates
 Household necessities such as edible oil, sugar, spices, tea, and coffee
5% (except instant) are included. Coal ,Mishti/Mithai (Indian Sweets) and
Life-saving drugs are also covered under this GST slab
 Cashew nuts/cashew nuts in shell
 Ice and snow
 Bio gas
 Insulin
 Aggarbatti
 Kites
 Coir mats, matting and floor covering
 Pawan Chakki that is Wind-based Atta Chakki
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 Postage or revenue stamps, stamp-postmarks, first-day covers, etc.

 Numismatic coins
 Braille paper, braille typewriters, braille watches, hearing aids and
other appliances to compensate for a defect or disability
 Fly-ash blocks
 Walking sticks
 Natural cork
 Marble rubble
 Accessories/parts for carriages designed for differently-abled
individuals
Products
18%
 Hair oil, toothpaste and soaps, capital goods and industrial
intermediariesKajal pencil sticks
 Dental wax
 Plastic Tarpaulin
 School satchels and bags other than of leather or composition
leather; toilet cases, Hand bags and shopping bags of artificial
plastic material, cotton or jute; Handbags of other materials
excluding wicker work or basket work
 Headgear and parts thereof
 Precast Concrete Pipes
 Salt Glazed Stone Ware Pipes
 Aluminium foil
 All goods, including hooks and eyes
 Rear Tractor tyres and rear tractor tyre tubes
 Rear Tractor wheel rim, tractor centre housing, tractor housing
transmission, tractor support front axle
 Weighing Machinery other than electric or electronic weighing
machinery
 Printers other than multifunction printers
 Ball bearing, Roller Bearings, Parts & related accessories
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 Transformers Industrial Electronics

 Electrical Transformer
 Static Converters (UPS)
 CCTV including CCTV with video recorders
 Set top Box for TV
 Computer monitors not exceeding 17 inches
 Electrical Filaments or discharge lamps
 Winding Wires, Coaxial cables and Optical Fiber
 Perforating or stapling machines (staplers), pencil sharpening
machines
 Baby carriages
 Instruments for measuring length, for use in the hand (for
example, measuring rods and tapes, micrometers, callipers)
 Bamboo furniture
 Swimming pools and paddling pools
 Televisions/Monitors (upto 32 inches)
 Power banks powered by Lithium-ion batteries
 Sports goods, games consoles and related items with HS code
9504
 All items with HS code 8483 including gear boxes, transmission
cranks and pulleys
 Used or retreaded pneumatic rubber tires
.
Luxury items such as small cars , consumer durables like AC and
28% Refrigerators, premium cars, cigarettes and aerated drinks , High-end
motorcycles are included.
Some industries and products were exempted by the government and remain untaxed
under GST, such as dairy products, products of milling industries, fresh vegetables &
fruits, meat products, and other groceries and necessities.
Checkposts across the country were abolished ensuring free and fast movement of
goods.
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The Central Government had proposed to insulate the revenues of the States from the
impact of GST, with the expectation that in due course, GST will be levied on
petroleum and petroleum products. The central government had assured states of
compensation for any revenue loss incurred by them from the date of GST for a
period of five years.
1.10 Eligibility:
Its eligibility would primarily be decided on the basis of turnover. Small taxpayers
may thus either be exempt (turnover <Rs. 20 lakh) or they may opt for the
composition scheme (turnover < Rs. 75 lakhs). The medium and large taxpayers will
have to file all GST Returns.
The diagram below would help us to get the concept of working of GST in a
better way.
 All the taxpayers that are eligible for exemption will have the option of paying
tax with Input tax credit benefits through Voluntary Registration.
 The list of the exempted goods and services would be common for the Centre
and the States/U.T.s
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1.11 Working of GST:
The tax cycles for the Mid-Size & Large Taxpayers are different –
1. Firstly, the seller files GSTR 1 (before the 10th of the following month) by
recording all the sales
2. Then the buyer reviews the sales in GSTR 2A
3. The buyer would then approve whether the sales are legitimate or not and file
in (before the 15th of the following month)
4. If the buyer modifies the sales that were earlier filed, then the seller can see
such kind of modifications in GSTR 1A .
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1.12 Stages of GST:

There are multiple change-of-hands an item goes through along its supply chain: from
manufacture to final sale to the consumer.
Let us consider the following case:
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 Purchase of raw materials

 Production or manufacture
 Warehousing of finished goods
 Sale to wholesaler
 Sale of the product to the retailer
 Sale to the end consumer
Goods and Services Tax is levied on each of these stages which makes it a multi-
stage tax
1.13 GST Rates Comparison Existing Tax System V/S New Taxation
Services:
Name Of Item GST Rate% Exixting Rate%

Telecom 18 15
Work Contracts 12 15
Non AC/alcohol serving 12 13-14
Restaurants
AC, alcohol serving 18 22
restaurants
5 star Restaurants 28 18
Constructions:
Name Of Item GST Rate% Existing Rate %
Cement 28 30
Wallpaper 28 18.5
Paint & Varnishes 28 26
Putty, Wall fillings 28 26
Plasters 28 26
Ceramic Tiles 28 26
Tempered Glass 28 26
Sand bricks 5 6
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Metals and Minerals:

Name Of Item GST Rate % Exixting Rate %
All ores and Concentrates 5 18.5
Tar 5 12
Coal 5 12
Lignite 5 12
Zinc Goods 18 18.5
Life Style and Home:

Name Of The Item GST Rate % Exixting Rate %
Leather bags 28 6
Phones 18 6
Yachts 28 18.5
Air Conditioner 28 26
Refrigerator 28 26
Storage water Heater 28 26
Printer 28 26
Dish washing machine 28 26
Watches 28 26
Furniture 28 26
Video Games 28 26
Consumer Goods:
Name Of Item GST Rate % Exixting Rate %
Aluminium Foil 28 18.5
Agarbatti. 12 0
Butter, Ghee, Cheese 6
Preserved Vegetables 12 0
Dry Fruits 18 6
Jams, Jellies 18 12
Branded Paneer 5 0
Frozen Meals 12 6
Branded Cereals 5 0
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Cocoa Butter, Oils 28 26

chocolate
Instant, Aroma Coffee 28 26
Coffee Concentrates, 28 26
Custard powder
Proteins Concentrate, 28 26
Razors 28 26
Dental flaws 28 26
Toothpaste 28 26
Deodorants 28 26
After shave 28 26
Shaving cream 28 26
Cereals 0 0
Rice, papad, bread Exempt 0
Poultry / Cattle Feed Exempt 0
Seed Exempt 0
Soyabean 5 6
Pasta, Cornflakes, Cakes 5 19.5
Frozen Vegetables 18 19.5
Coffee, Tea 18 6
Condensed Milk 5 6
Toilet Paper 5 18.5
Hot water Bottle 18 18.5
Others:
Name Of The Item GST Rate % Exixting Rate %
Tyres 28 18.5
Children’s drawing 12 0
books
Steam 12 0
Plastic Products 28 18.5
Compressed Air 5 0
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Solar water Heater 5 0

Renewable energy 5 0
devices
1.14 Important Aspects of GST:
1. Levy of GST: The centre will levy Central GST (CGST) and the states will levy
State GST (SGST) on the supply of goods and services within a state. The centre will
levy IGST in the case of (i) inter-state supply of goods and services, (ii) imports and
exports, and (iii) supplies to and from special economic zones.
2. Exemptions from GST: The Centre Exempt certain goods and services from the
purview of GST through a notification. This will be based on recommendations of the
GST Council.
3. Turnover limit under GST and tax right over low turnover entities: GST is applied
when turnover of the business exceeds Rs 20lakhs per year (Limit is Rs 10lakhs for
the North-Eastern States). Traders who would like to get input tax credit should make
a voluntary registration even if their sales are below Rs 20 lakh per year. Traders
supplying goods to other states have to register under GST, even if their sale is less
than Rs 20 lakh. There is a composition scheme for selected group of tax payers
whose turnover is up to Rs 75 lakhs a year.
4. The four-tier rate structure: The GST proposes a four-tier rate structure. The tax
slabs are fixed at 5%, 12%, 18% and 28% besides the 0% tax on essentials. Gold is
taxed at 3%. The center has strictly demanded and got an additional cess on demerit
luxury goods that comes under the high 28% tax. Essential commodities like food
items are exempted from taxes under GST.
Other consumer goods which are common items will be taxed at 5%.4. The new GST
seems to have two standard rates – 12% and 18%. GST rate structure for the goods
and services are fixed by considering different factors including luxury/necessity
nature.
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5. Tax revenue appropriation between the center and states: The center and states will
share GST tax revenues at 50:50 ratio(except the IGST). This means that if a service
is taxed at 18%, 9% will go to the center and 9% will go to the concerned state.
6. Input tax credit: Every taxpayer while paying taxes on outputs may take credit for
taxes paid earlier by the supplier on inputs. However, this will not be applicable on
supplies related to: (i) motor vehicles when used for personal consumption, (ii) supply
of food, health services, etc. unless they are further used to make a supply.
7. Taxable amount (value of supply): The GST levied on the supply of goods and
services, whose value will include: (i) price paid on the supply, (ii) taxes and duties
levied under other tax laws, (iii) interest, late fee, penalties for delayed payments,
among others.
8. Refunds and welfare fund: Any taxpayer may apply for refund of taxes in cases
including: (i) payment of excess taxes, or (ii) unutilised input tax credit. The refund
may be credited to the taxpayer, or to a Consumer Welfare Fund under certain
circumstances.
9. Returns: Every taxpayer should self-assess and file tax returns on a monthly basis
by submitting: (i) details of supplies provided, (ii) details of supplies received, and
(iii) payment of tax. In addition to the monthly returns, an annual return will have to
be filed by each taxpayer.
10. Apportionment of IGST revenue: The IGST collected will be apportioned between
the center and the state where the goods or services are consumed. The revenue will
be apportioned to the center at the CGST rate, and the remaining amount will be
apportioned to the consuming state.
11. Dual Tax Structure

 Centre and State both will levy tax on every transaction related to supply of
goods/ services
 Tax to be levied by Centre and States to be called Centre GST (‘CGST’)
and State GST (‘SGST’)
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12. Integrated GST on inter-state supplies

 Centre to have exclusive power to levy IGST on inter-state supplies
 It will be called Integrated GST (‘IGST’)
 Revenue would be shared between Centre and Consumption State.
13. Supply without consideration

 Supply between two distinct establishments of same legal entity taxable
even without consideration
 Supply of goods between agent and principal taxable
 ‘Gifts‘ by employer and employee for an amount exceeding INR 50,000
taxable
14. Imports/Exports
 Imports will be treated as inter - state supplies and would attract IGST, apart
from BCD on goods.
 Exports to be zero rated.
15. Exemptions / Concessions

 Exemption to various goods and services.
 Existing incentive schemes to be converted to ‘reimbursement route’.
 Certain petro products though in GST, would continue to attract present
taxes. GST to be activated at a later date.
16. Compliance/ Tax Administration

 Online system for tax compliances
 GST Facilitation centers, GSPs, ASPs to assist tax payers for tax filings
registrations etc.
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1.15 Key Features of the GST Regime:

The GST system is characterized by the following features:
GST is applicable on the “supply” of services or goods as opposed to the earlier

concept of taxation on goods manufacture, sale of goods, or service provision.
GST is a destination-based tax structure unlike the origin-based structure that existed
previously.
CGST, IGST, and SGST/UTGST are levied at rates that would be mutually agreed
upon by the states and Centre.
GST will replace the central taxes mentioned below:

 Duties of Excise (medicinal and toilet needs)
 Central Excise Duty
 Additional Duties of Excise (Goods of Special Importance)
 Additional Duties of Customs (CVD)
 Service Tax
 Special Additional Duty of Customs (SAD)
 Additional Duties of Excise (Textiles and Textile Products)
 Cesses and surcharges
 GST will subsume the following state taxes:
 Central Sales Tax
 Entry Tax
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 State VAT
 Luxury Tax
 Purchase Tax
 Entertainment Tax, except that levied by local entities
 Taxes on lotteries and gambling
 Taxes on advertisements
 State cesses and surcharges
Taxpayers with annual turnover of Rs.20 lakh is exempt from GST. For special
category states, this cut-off is Rs.10 lakh. An option of compounding is available to
small-scale taxpayers with annual turnover of Rs.50 lakh or below. The choice of
threshold exemption and the compounding scheme are optional.
Input credit of CGST shall be used only for paying CGST on the output. Similarly,
input credit of SGST/UTGST will be used only for the payment of SGST/UTGST.
Therefore, the two channels of input tax credit cannot be cross-utilised, except for the
payment of IGST for inter-state supplies
1.16 Benefits of GST:
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 Goods and Services Tax has changed the face of indirect tax regime in the nation.
It has subsumed several indirect taxes and therefore simplified taxes for
businesses and compliance easier.
 With GST already into effect and filing for the month of July in the process, the
government is making considerable gains in revenue. GST has brought a large
number of entities into the tax net.
 Industry experts expect that GST should reduce logistics and inventory costs in
the long run. The slow movement across the state levels of goods carrier has
stopped with the transit speed increasing considerably. As per one of the surveys
conducted recently, it has been estimated that the Indians will be able to save
almost about Rs 2300 crore which is spent at the various check post at the border
of the state.
 As is the norm with the current tax laws in India, there isn’t any input on capital
goods. But with the new GST Tax laws, one can avail input tax credit on the
capital goods. That way, the investment might surge up quite a bit with an
expected 6% increase.
 The normal rules stay put as the 2% interstate-levy with the major chunk of
production kept within the state itself. However, with the change in rules, the tax
amount can be dispersed across the nation to offer a greater lift for the lesser-
developed.
 Many countries follow a GST Tax regime and the new tax will make it easy for
everyone to understand the bill. People have already started verifying the bills at
restaurants and other retail outlets for the right tax. Earlier, there were many cases
of people being charged inappropriately and this has ended with GST.
GST will also lead to less corruption and there will be a significant reduction in
corruption as all the money spent needs to be reported for the taxation purpose.
Moreover, the retailer would not be able to make sales without the bill hence the cases
of income tax evasion will also reduce a lot.
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 This advantage is totally for the consumers who are planning to buy car or
phones. The overall tax rate has been reduced by at least 2 percent and the car
price of most of the car has been reduced. Another such impact is on phones
and Apple recently reduced the phone of the price by as much as 7.5%.
 In one of the studies conducted by HSBC, the GST would have a positive
impact on GDP of the country and the GDP of the country will increase by at
least 80bps which translate to 0.80%. This is surely a great help to the targets
set by the Government.
There remain quite a few disadvantages associated with the GST Tax. We’ll now look
onto the other side of the coin of GST Tax with our entry down below
1.17 Drawbacks of GST:
 According to the experts, terms such as GST which includes CGST, SGST, and
IGST is nothing but just a new name in accordance with the existing tax systems.
Kind of old wine in a new bottle.
 The Service Tax which stood at 15% in the previous regime has now been
replaced with GST at 18%. As such many services have become costlier with
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telecom, airline and banking affected majorly. In fact, insurance and petroleum
are also said to be majorly affected by the enactment of GST Tax.
 The GST Act has given the control of businesses to Central and State
Governments with businessmen binding by-laws. This has given rise to
complexity for many businessmen across the nation.
 Post GST implementation, the first few instances of application have resulted in
high tax outgo for businesses. Businesses are trying to claim the credit of
input tax but several cases of mismatch of data are coming up. As a result, there
is chaos among the tax filers.
 The opposition has called it as a Disability Tax as many of the things related to
disabled people which were earlier tax-free are now included in GST taxation.
Prior to implementation of GST, brail paper, typewriter, hearing aid and
motorised wheelchair were tax-free whereas these things are being taxed now.
The opposition has made pleas to roll back the tax on such items.
 On one end, the government is trying to give a push to banking services and
insurance in India and on the other end, the government has decided to tax
banking and insurance service at higher rates when compared to the previous
rates.
 GST has also had an impact on discount and reward programs as well. The
product is being taxed on the rates pre-discount whereas the products were earlier
taxed at post discount prices. Most of the companies have also suspended reward
programs for temporary basis because of complexities of GST.
 The government has chosen a mid-year launch for GST and this will lead to
problems in taxation and reporting during the end of the financial year. Ideally,
the government should have launched GST at end of financial year as this would
have avoided a lot of confusion during taxation and reporting.
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 As per GST, the seller requires registering in all the states that it does business in
and it has increased the complexity for the seller. The government should have
created a provision for centralised registration of State GST as this would have
helped many sellers during the rollout.
1.18 Criticism:
Technicalities of GST implementation in India have been criticized by global

financial institutions, sections of Indian media and opposition political parties in
India. World Bank's 2018 version of India Development Update described India's
version of GST as too complex, noticing various flaws compared to GST systems
prevalent in other countries; most significantly, the second highest tax rate among a
sample of 115 countries at 28%.
GST's implementation in India has been further criticized by Indian businessmen for
problems including tax refund delays and too much documentation and administrative
effort needed. According to a partner at PwC India, when the first GST returns were
filed in August 2017, the system crashed under the weight of filings.
The opposition Congress party has consistently been among the most vocal opponents
of GST implementation in India with party President, and leader of the opposition,
Rahul Gandhi, slamming BJP for allegedly "destroying small businessmen and
industries" in the country. He went on to pejoratively dub GST as "Gabbar Singh
Tax" after an ill-famed, fictional dacoit in Bollywood films Blaming the
implementation of alleged Gabbar Singh Tax as a "way of removing money from the
pockets of the poor", Rahul has lamented it as a "big failure “while declaring that if
Congress Party is elected to power, it will implement a single slab GST instead of
different slabs. In the run-up to the elections in various states of India, Rahul has
intensified his "Gabbar Singh" jibes on Modi government.
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1.19 Impact of GST on Common Man

The GST transition has been smooth. The big question is how GST will impact a
common man’s budget.GST is stated to be one of the biggest tax reforms in India,
which would not only impact the business but also common man. The primary impact
to be felt by the consumers would change in prices of goods and services on account
of GST rates. In terms of impact in prices, while services would mostly be more
expensive in the initial phases, impact on prices of goods could be a mixed bag. In the
long run, once the benefits of GST are expected to kick in in terms of higher input
credits and reduction in cascading effect, it is anticipated that the inflationary effect
will come down and prices, in general, would come down and stabilize.
In services, the tax rate has increased from 15% to 18%. The 3% increase could
potentially mean an increase in the price of services by 3% for the common man, in
the short run.
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Within the household budget, there are likely to be some obvious gainers and some
obvious losers but once the law and pricing of commodities reach steady state, all
consumers should gain. We have provided a few examples to explain the impact of
GST on the common man, the impact on pricing on account of additional credits and
hence reduced cost of supply is separate.
GST is expected to bring greater transparency, improve compliance levels and create
a common playing field for businesses by amalgamating a host of central and local
taxes. It would change the current tax regime of production-based taxation to a
consumption-based system. There is no doubt that the corporates would benefit once
they settle in under GST and assess the impact on their respective businesses;
however, the advantages to the common man may take longer to be apparent.
It is expected that the consumer would also reap the benefits of the new tax regime,
once the corporates have transitioned completely to the new tax structure and start to
pass on the benefits to the end user
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Chapter 2
Research Methodology
Synopsis
2.1 Objectives
2.2 Methods of Data Collection
2.3 Sampling Plan
2.4 Sample Size
2.5 Limitations of Present Study
2.6 Area of Study
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2.1 Objectives:
In every research, there are certain steps that should be followed to solve the research
problem and to achieve the objectives of that research. Research Methodology is a
way to systematically solve the research problem. Therefore, it includes the various
steps that are generally adopted by a researcher in studying the research problem. It
not only includes the research methods but also considers the logic behind the
methods that are being used in the context of research study and explain the reasons
of using and not using of a particular method or technique so that research results are
capable of being evaluated either by the researcher himself or by others. In general,
research objectives describe what we expect to achieve by a project...Research
objectives divide research aim into several parts and address each part separately. As
a rule of dumb, there would be one research aim and several research objectives to
facilitate the achievement of this aim.
Objectives of present study:

1. To study that the cascading effect of tax is eliminated.
2. To study the impact of GST on the original goods and services, thereby
improving the GDP rate too.
3. To ensure the availability of input credit across the value chain.
4. To know the complications in tax administration and compliance are
reduced after GST.
5. To ensure making a unified law involving all the tax bases, laws and
administration procedures across the country.
2.2 Methods of Data Collection:
Primary Data:
Primary data is data that is collected by a researcher from first-hand sources, using
methods like surveys, interviews, or experiments. The data is specific to the problem
under study. Primary data is more costly to obtain than secondary data, but it is also
more current and more relevant to the research project
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Secondary Data
Secondary data refers to data which is collected by someone other than the
investigator conducting the research. Secondary data analysis can save time that
would otherwise be spent collecting data and, particularly in the case of quantitative
data, can provide larger and higher-quality databases that would be unfeasible for any
individual researcher to collect on their own.
Methods of Data Collection for Present Study:
Secondary Methods:
For the present study, secondary data was collected through various sources which
include various books, journals, periodicals, magazines, reports and various web
sources. The details of the same are mentioned in the bibliography section.
Primary Methods:
For the present study, data was also collected through primary source. The primary
source includes collecting responses through a pre designed questionnaire from
investors.
2.3 Sampling Plan:

Sampling means the process of selecting a part of the population. A population is a
group people that are studied in a research. These are the members of a town, a city or
a country. It is difficult for a researcher to study the whole population due to limited
resources eg - time, cost and energy. Hence the researcher selects a part of the
population for his study, rather than studying the whole population. This process is
known as sampling. It makes the research activity manageable and convenient for the
research. The reliability of the findings of a research depends upon how well you
select the sample.
2.4 Sample Size:

Sample size determination is the act of choosing the number of observations or
replicates to include in a statistical sample. The sample size is an important feature of
any empirical study in which the goal is to make inferences about a population from a
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sample. The sample size of the present study is 100 people who are ordinary people
without any celebrity status and having common goals in life.
2.5 Limitations of present study:
1. Costlier Service – The current Service Tax stands at 15% as of now which will
increase to 18%-20% when GST is levied. As such many services will be on the
costlier side with telecom, airline and banking affected majorly. In fact, insurance and
petroleum are also said to be majorly affected by the enactment of GST Tax.
2. Complexity for the Businessmen – According to the proposal of the GST Tax, the
control on business will be rendered to Central and State Governments with
businessmen binding by-laws. As such complexity may arise for many businessmen
across the nation.
3. Old Wine in a New Bottle – According to the experts, terms such as GST which
includes CGST, SGST, and IGST is nothing but just a new name in accordance with
the existing tax systems. Kind of old wine in a new bottle.
2.6 Area of Study:-

Ulhasnagar is a city located in the Thane district Situated 58 km from Mumbai. This
city is part of Mumbai Metropolitan Region managed by MMRDA. It had an
estimated population of 506,098 at the 2011 Census. This 28 square kilometer area
has 389,000 people of Sindhi descent, the largest enclave of Sindhis in India.
Originally, known as Kalyan Military transit camp, Ulhasnagar was set up especially
to accommodate 6,000 soldiers and 30,000 others during World War II. It was formed
as a colony of migrants, especially Sindhis during the Partition of India. Around
1,00,000 Sindhi-speaking refugees were relocated to deserted military camps here
from the newly constructed West Pakistan. Even though they took shelter in
Ulhasnagar with a dream of returning to their native land after some days, they had to
live the rest of life in this land. Gradually they settled here by constructing homes and
establishing businesses.
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Ulhasnagar is considered as one of the largest denim jeans manufacturer. It has

number of small businesses, manufacturing quality denims with an effective cheap
labor. Some of the manufacturers export jeans worldwide. The city is also famous for
its furniture market, cloth market and electronic market.
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Chapter-3
Review of Literature
Synopsis
3.1 Literature
3.2 Gap Analysis
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3.1 Literature:
1.(Sreeshma, Aswamalika and Aparna,2018) Goods and Service tax is a type of

indirect tax which is levied on the sale of goods and services in India. The Goods and
Services Tax was launched on 1 July 2017 and was relevant throughout India which
textiles and cloth industry is connected to the total growth of the Indian and the world
economy. AkhiAkter (2017) analysed the impact of GST on Indian textile and
clothing industry and found that the Textile industry body, The Confederation of
Indian Textile Industry (CITI) on 3 July has petitioned the government to reduce the
GST rate to 12% from 18% of Manmade fibre and yarn otherwise the producers will
be forced to import the yarn and fabrics from China, Indonesia and South Korea at
cheaper rate.
2. (Virajdhakan,2018) The study stated that the lack of information coupled with the
apathy towards reforms may paralyze the speedy implementation of this system
especially in small towns where still not a single orientation programs have
been planned and executed till date by competent authorities. The association of
business turnover with the apprehensions can be issue worth considering when
designing training programs and modules. In lien of this it is suggested associations,
NGO’s should come forward to organize such programs at town level to orient small
traders so that nobody is left out of this biggest tax reform in the country. A single
rate would help to maintain simplicity and transparency by treating all goods and
services as equal without giving special treatment to some ‘special’ goods and/or
services.Shakdwipee(2017)in his paper inquring the level of awareness towards
GST among the small business owners in Rajasthan state, found that the main areas
to be focused include Training errors and Computer software availability.
3. (Jyotsna Oberoi, 2018) GST game is not for weak hearted. GST will help in
improving the economy but in long run and that is why it is called a “Reform”. GST
taxation system will cause inconvenience to citizens, businesses, and manufacturers as
this system is completely new to them but with the time people will learn and get the
hang of it. GST will usher in a plethora of 1lipchanges in the textile business of India
with an overall positive impact on the sector. GST implementation is expected to
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produce impetus to various reforms and policy measures envisaged by the

Government for the ease of doing business and to usher India into a simple,
transparent and tax friendly regime. It will simplify the present procedures by
converging various complex indirect taxes into a unified platform and conjointly
improve the “textile export” state of affairs of India. The compliant would notice their
goods become competitive and the sector would conjointly take part in contributing to
tax in addition to providing employment and other social benefits.
4.(Brew , 2012) The authors have studied the relation between the mode of collection
of VAT revenues with the target of VAT collection for the municipality of Tarkwa –
Nsuaem in West Ghana. The authors have used questionnaires and interviews to
collect the data and then analysed it using the regression analysis and established that
the method of VAT collection in the said municipality was above average. The study
is important because VAT is one of the primary revenue generators for any
Government.
5.( Rajatdeb, 2017) The study has reviewed the prior literature on tax reforms and
GST to synthesize the research findings and to direct the future research avenues.
Literature on tax reform has attained momentum in developing countries since last
two decades and in India when it has decided to implement GST from 2017-18.
Adopting the Systematic Literature Review technique by accessing the academic e-
journals of selective publishers and applying a filtering process, the study has
reviewed 119 sample papers published during 2002-2016 by focusing objectives and
results of those cited papers. Results have documented tax reforms have executed
globally with multiple objectives; it has admitted few limitations, practice
implications have pointed out and have sketched the road map for posterior studies
especially in the transition period in India when it would shortly move to GST regime.
6. (By clear tax, 2017) The Indian textile industry provides employment to a large
number of skilled and unskilled workers in the country. It contributes about 10% of
the total annual export, and this value is likely to increase under GST. GST would
affect the cotton value chain of the textile industry including all garments for men and
women like shirts, trousers, saree, apparels, shoes and any more clothing materials
which is chosen by most small medium enterprises as it currently attracts zero central
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excise duty (under optional route).Impact of GST on Textile Industry According to

the Ministry of textiles (Government of India) total textile export during 2011-12 was
US$ 33161.74 and the total value of textile machinery produced during the same
period was Rs. 5280 crore.
7.(Sandeepan Banerjee, Mona Banerjee, Kishore Kumar Das, 2016) The Goods and
Service Tax (GST) is a comprehensive tax levy on manufacture, sale and
consumption of goods and services. It is a tax on value addition at each stage having
the benefit of availing continuous set-off of Input Tax Credit thereby giving relief to
the taxpayers from the burden of 7.The Goods and Service Tax (GST) is a
comprehensive tax levy on manufacture, sale and consumption of goods and services.
It is a tax on value addition at each stage having the benefit of availing continuous set-
off of Input Tax Credit thereby giving relief to the taxpayers from the burden of
cascading i.e. tax on tax. This new form of taxation replaces almost all of the indirect
taxes contributing to a significant improvement towards a comprehensive indirect tax
reform in India. The authors study the past literature relating to GST that helps them
to form a critical review on the above topic thereby suggesting areas of future
research for filling up the research gaps.
8. (Tanushree Gupta,2016) 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 AtalBehari
Vajpayee. An empowered committee was also formed for that, headed
byAsimDasgupta.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 Government also introduced a Constitution
Amendment Bill to facilitate the introduction of the GST in the LokSabha but it was
rejected by many States. Now in year 2016 this bill got green signal under the
umbrella of Modgovernment. (Tanushree Gupta, volume 7, ISSN 2229-5518, 2016).
9. (Ciobansu, 2012) The authors trace the correlation between the types of taxes and
their role in the budgeted revenues and the fiscal development of Romania. Indirect
tax by its very nature is easier to govern, is neutral to status of tax payer, and
increases revenue but leads to inflation. On the other hand direct taxes depend on the
tax payer and are difficult to govern. Further, indirect tax helps the government to an
Page | 42
extent to direct consumption of the public. The authors conclude that both the taxes
are important for overall growth of the economy.
10. (Subhamoy Banik Advocate Arundhati das,2017) GST or Goods and Services
Tax, the greatest tax reform in India since independence which has been long
pending. GST is meant to simplify the indirect tax regime of India by replacing a host
of taxes by a single unified tax. GST is the only indirect tax that directly connects all
the sector of Indian economy thus enhancing the economic growth of the country by
creating a single unified market. More than 160 countries of the world have
implemented GST so far followed by France. The idea of GST in India was proposed
by Atal Bihari Vajpayee in 1999 and a committee was set up under the leadership of
Asim Das Gupta the then finance minister of West Bengal. It was supposed to be
implemented from 1st April 2010 under flagship of P Chidambaram then finance
minister of UPA government but due to political issues and conflicting
interests of various stakeholders it did not came into force. In May 2016 the
constitutional amendment bill for GST was passed by LokSabha and deadline of 1st
April 2017 to implement GST was set by Arun Jaitley the finance minister of India.
However, there is a huge outcry against its implementation.
11.(Dr.Yogesh Kailash chandra Agrawal,2017) GST there is a condition chaos and

confusion among common man. The aim this research paper is to explain the
mechanism of GST and its effects on Indian economy. In India, the idea of GST was
contemplated in 2004 by the Task Force on implementation of the Fiscal
Responsibility and Budget Management Act, 2003, named Kelkar Committee. The
Kelkar Committee was convinced that a dual GST system shall be able to tax almost
all the goods and services and the Indian economy shall be able to have wider market
of tax base, improve revenue collection through levying and collection of indirect tax
and more pragmatic approach of efficient resource allocation. Under the Goods and
Service Tax mechanism, every person is be liable to pay tax on output and shall be
entitled to enjoy credit on input tax paid and tax shall be only on the amount of value
added.
12. (Rajitturukmane and Sujitgulhane, 2017) Textile industry, one of the largest and
highly labour intensive manufacturing sectors in India, is one of the identified
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benefactors of this campaign. India is one of the few textile producing countries in the
world which can claim the complete value chain productivity strength has the
potential to repair the segments perception and the country’s involvement in the world
textile scenario. India is the only country in the world that offers the unique
combination of democracy, demography, and demand. This combined with the newest
international strategy of the government will lead to more job creation, boosting the
national economy and give the Indian economy global recognition. The textile sector
has the capability to contribute highest to the Indian economy by providing more jobs
and contributing to the overall GDP.
13.(Sonypandey, 2018) Textile sector of India is one of the top contributors toward
the development of the Indian economy, concerning GDP, employment, export
promotion, etc. Known as one of the oldest manufacturing industry in the country and
the second largest, after agriculture, the textile industry employs both skilled and
unskilled people. The industry contributes over 10 percent of the total annual exports
of the country which is likely to increase under the new Goods and Services Tax
(GST) regime.Though there are a few disadvantages of the GST on the textile
industry, it is safe to say that it will help the sector in the long run. It will get many
registered taxpayers under a well-maintained system. It can also be said that the new
tax regime will help the textile industry expand itself in both the domestic as well as
global markets thereby creating sustainable and long-term growth opportunities.
14. (Madhukar N Hiregange, 2017) The textiles and apparel industry in India accounts
for about 10% of manufacture or production and 2% of India's Gross Domestic
Product (GDP) and constitutes about 13% of country's export earnings. The impact of
GST on textile industry would be substantial involving lot of transitional issues and
industry needs to gear up for implementation of GST after understanding the impact.
The Government is determined to introduced GST from 1st July 2017. Paper writers
feel that ideally 1st September 2017 looks fair considering that the assesses should be
given adequate time to transit to the new regime. Early preparation could provide lot
of benefits including better transition planning. Professionals need to highlight the
importance and assist the assesses in this regard especially the SME sector.
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15.(Urvashi gupta) GST will give India a world class charge framework by
amalgamating recent totally extraordinary medications to assembling and benefit part.
Be that as it may, this will be liable to its balanced style, convenient execution and
customary development. Henceforth, it can be reasoned that GST in the Indian
structure will connect income spillages to current framework and at the same time
will give help to citizen as far as lessened duty trouble, end of falling impact and
consistent stream of input credit on the vast majority of the items, notwithstanding
releasing a flood of business benefits up to this point immaculate by the VAT
framework and would basically prompt Monetary Development.
3.2 Gap Analysis:

From the above literature review, it is clear that many researchers have conducted
research study on GST but hardly there are any studies conducted on GST benefits
and challenges in the city of Ulhasnagar. Considering the gap, present study is
undertaken. Some major changes are as follows:
1. One tax one nation: A consumer in Kanyakumari now pays the same tax on
an item as one in Jammu & Kashmir. GST has also allowed businesses to
streamline distribution systems—production, supply chain, storage—to make
them more efficient, having previously been forced to design them
2. GST rate changes: Tax rates have been reduced to 12% (from the earlier
value of 28%) on used/old motor vehicles (apart from large and medium cars
and SUVs) without Input Tax Credit (ITC).
3. Increase in Competition: After the GST has been imposed, there has been
seen a fall in prices of goods and services which ultimately has brought the
final consumer to have less tax burden on the goods and services. There is
seen a great scope of increased production, thus, increase in competition.
4. Simple Tax Structure: GST has simplified the calculation of tax with the
adoption of single taxation system. Under this, multiple taxation has been
aborted which ultimately saves time and money.
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5. Uniform Tax Regime: Previously, there used to be multiple tax at every stage
of supply chain, where the taxpayer got confused. But now, with GST, it is
easier for the taxpayer to pay uniform tax.
6. Increase in Exports: There has been seen a fall in the cost of production after
the GST got imposed. This in return has brought competitiveness towards the
international market resulting in rise in exports.
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Chapter 4
Findings, Analysis and Interpretation
Synopsis
4.1 Age of Respondents
4.2 Gender of Respondents
4.3 Occupation of Respondents
4.4 Income of Respondents
4.5 Suggestion of Respondents
4.6 Beneficial System According To Respondents
4.7 Business Profitability According To Respondents
4.8 Impact On Respondent’s Business
4.9 Review of Respondents
4.10 Reviews on IT System by Respondents
4.11 Reviews on Transition to GST by Respondents
4.12 Issue Faced By Respondents
4.13 Reviews on Advance Ruling Mechanism by Respondents
4.14 Reviews on Impact on Price after GST by Respondents
4.15 Overall Response by Respondent
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Table 4.1- Age of Respondents
Particulars Response %
BELOW 21 24 24
BETWEEN 21 – 37 37
30
BETWEEN 30 – 28 28
40
ABOVE 40 11 11
Graph 4.1- Age of Respondents
AGE
40
35
30
25
Axis Title
20
15
10
0
BETWEEN 21 – BETWEEN 30 –
BELOW 21 ABOVE 40
30 40
Series1 24 37 28 11
It is observed that 24% of respondents are below 21 of age, 37% of respondents are
between 21- 30 years of age, 28% of respondents are between 30- 40 years of age and
remaining 11% are above 40 years of age.
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Table 4.2-Gender of Respondents
Male 56 56
Female 44 44
Graph 4.2- Gender of Respondents
It is observed that 44% of respondents are female and remaining 56% are male.
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Table 4.3-Occupation of Respondents
Business 28 28
Services 34 34
Student 37 37
Employee 1 1
Graph 4.3- Occupation of Respondents
It is observed that occupation of 28% of respondents is business, occupation of 34% is

service, 37% of respondents are students and 1% of respondents are employee.
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Table 4.4- Income of Respondents
100000-1000000 47 47
1000000-2000000 26 26
2000000-3000000 22 22
Above 3000000 5 5
Graph 4.4- Income of Respondents
INCOME
Response
Above 3000000 5
2000000-3000000 22
1000000-2000000 26
100000-1000000 47
It is observed that income of 47% of respondents is between 100000-1000000,

income of 26% of respondents is between 1000000-2000000, income of 22% of
respondents is between 2000000-3000000, income of 5% respondents is above
3000000.
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Table 4.5- Suggestion of Respondents
Yes 60 60
No 40 40
Graph 4.5- Suggestion of Respondents
Do you think implementing GST will

cause higher price of goods & services?
60
40
Yes No
It is observed that 60% of respondents think that implementing GST will cause higher
price of goods & services and 40% of respondents don’t think that implementing GST
will cause higher price of goods & services.
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Table 4.6- Beneficial System According To Respondents
Goods & service tax 56 56

Sales tax & service tax 44 44
Graph 4.6- Beneficial System According To Respondents
It is observed that 56% of respondents think that goods and service tax is more
beneficial than sales/service tax and 44% of respondents think that sales/service tax is
more beneficial than goods and service tax.
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Table 4.7- Business Profitability According To Respondents
Particular Response %
Yes 59 59
No 41 41
Graph 4.7- Business Profitability According To Respondents
It is observed that 59% of respondents believe that introduction of GST will result in
better input tax credits for your business resulting in better profitability and 41% of
respondents don’t believe that introduction of GST will result in better input tax
credits for your business resulting in better profitability.
Page | 54
Table 4.8- Impact On Respondent’s Business
Positive impact 35 35
Negligible or no impact 27 27
Negative impact 38 38
Graph 4.8- Impact on Respondent’s Business
It is observed that 35% of respondents had a positive impact on their business because
of GST, 27% had negligible impact and 38% had negative impact on their business.
Page | 55
Table 4.9- Review of Respondents
Satisfied 46 46
Not satisfied 54 54
Graph 4.9- Review of Respondents
It is observed that 46% of respondents are satisfied with the time given to assessee to
implement the GST Council’s decisions (such as changes in rate structure, rules,
processes) and 54% of respondents are not satisfied with the time given to assessee to
implement the GST Council’s decisions (such as changes in rate structure, rules,
processes).
Page | 56
Table 4.10- Review on It System by Respondents
Yes 56 56
No 44 44
Graph 4.10- Review on It System by Respondents
It is observed that 56% of respondents are satisfied with their IT system readiness to
comply with GST requirements and 44% are not satisfied with their IT system
readiness to comply with GST requirements.
Page | 57
Table 4.11- Review on Transition to GST by Respondents
Smoother 27 27
Difficult 41 41
Very difficult 32 32
Graph 4.11- Review on Transition to GST by Respondents
It is observed that 27% of respondents think that transition to GST regime was
smoother, 41% of respondents think that transition to GST regime was difficult and
32% of respondents think that transition to GST regime was very difficult.
Page | 58
Table 4.12- Issue Faced By Respondents
Yes 51 51
No 49 49
Graph 4.12- Issue Faced By Respondents
It is observed that 49% of respondents are facing issues in claiming refund under the
GST regime and 51% of respondents are not facing issues in claiming refund under
the GST regime.
Page | 59
Table 4.13- Review on Advance Ruling Mechanism by Respondents
Yes 53 53
No 47 47
Graph 4.13- Review on Advance Ruling Mechanism by Respondents
It is observed that 53% of respondents feel that advance ruling mechanism under
GST regime bring in friendly environment to businesses and 47% of respondents feel
that advance ruling mechanism under GST regime doesn’t bring in friendly
environment to businesses.
Page | 60
Table 4.14-Review on Impact on Price after GST by Respondents
PRICE TO CUSTOMER HAS INCREASED 44 44
PRICE TO CUSTOMER HAS DECREASED 16 16
PRICE TO CUSTOMER HAS REMAINED 40 40

NEUTRAL
Graph 4.14- Review on Impact on Price after GST by Respondents
It is observed that 44% of respondents think that price to customer has increased after
GST, 16% of respondents think that price to customer has decreased after GST and
40% of respondents think that price to customer has remained neutral after GST.
Page | 61
Table 4.15- Overall Response by Respondent
Yes 66 66
No 34 34
Graph 4.15- Overall Response by Respondent
It is observed that 66% of respondents think that GST is likely to have a positive
impact on India and 34% of respondents think that GST is likely to have a negative
impact on India.
Page | 62
Chapter 5
Conclusion and recommendation
Synopsis
5.1 Conclusion
5.2 Recommendation
5.3 Abbrevations
Page | 63
5.1 Conclusion:
From the above discussion, it is clear that GST is basically an indirect tax that brings
most of the taxes imposed on most goods and services, on manufacture, sale and
consumption of goods and services, under a single domain at the national level. In the
present system, the taxes are levied separately on goods and services. The GST is a
consolidated tax based on a uniform rate of tax fixed for both goods and services and
it is payable at the final point of consumption. At each stage of sale or purchase In the
supply chain, this tax Is collected on value added goods and services, through a tax
credit mechanism, introduction of the Value added Tax (VAT) at the Central and the
State level has been considered to be a major step — an important breakthrough — in
the sphere of indirect tax reforms in India. If the VAT is a major improvement over
the pre existing Central excise duty at the national level and the sales tax system at the
State level, then the Goods and Services Tax (GST) will indeed be a further
significant improvement - the next logical step - towards a comprehensive indirect tax
reforms in the country. Once GST Is Implemented, most of the current challenges of
this move will be a story of the past. India will become a single market where goods
can move freely and there will lesser compliances to deal with for businesses. The
benefits of GST will definitely outweigh the disadvantages of GST.
5.2 Recommendations:
Some suggestions for better administrative way to handle and implement of goods and
service tax act in India are:
• Standardization of systems and procedure
• Tax relief in case of branch transfer
• Well defined procedures In case of job works
• Uniform dispute settlement procedure
• Adequate training for both tax payers and tax enforcers
• Re-organization of administrative machinery for GST implementation
• Budding information technology backbone — the single most important initiative
for GST implementation
• Uniform implementation of GST should be ensured across all states (unlike the
staggered implementation of VAT) as many issues might arise in case of transacts
Page | 64
between states who comply with GST and states who are not complying with GST.
1) The customers suggested that there should be a smooth transparent and simple
transition provisions which is easily understandable.
2) Special focus on awareness and training of all officers, professionals and assesses
should be given on GST.
3) Since the public are very clear about GST any disputes on GST introduction should
be protectively addressed by way of speedy redress.
4) The people are not well informed on the implementation of the GST. Therefore, in
order to ensure efficient implementation of the GST, the government should come out
with a groper guideline to the society on the procedures for the implementations of
GST.
5) Gradual stages may be employed for the implementation like the agricultural
sector, then industrial and then the service sector.
6) The relevant authorities especially the customers department must work closely
with other departments like information and Revenue and other enforcement authority
ensure good implementation.
7) Lastly, the government must ensure a good management of the income collected
from the GST
5.3 Abbrevations:
CGST: Central Goods and Service Tax
SGST: State Goods and Service Tax
UTGST: Union Territory Goods and Service Tax
ITC: Input Tax Credit
TLE: Tax Law Enforcement
TK: Tax Knowledge
Page | 65
References:
1. Sreeshma, Aswamalika and Aparna (2018) “ A Study on Impact of GST on
Branded Textile Products” International Journal of Pure and Applied
Mathematics Special Issue, Volume 119 No. 10 ISSN: 1311-8080.
2. Virajdhakan, (June 2018) “An Analytical Study on Perceptive Impact of GST”
3. Jyotsna Oberoi (2018) “GST- A Game Changer for the Textile Sector in
India” ISSN Print: 2394-7500 ISSN Online: 2394-5869.
4. Rajatdeb,(2017) “ Tax Reforms and GST” Volume 7
5. clear tax (2017) “ Impact of GST on Textile Industry”
6. Sandeepan Banerjee, Mona Banerjee, Kishore Kumar Das(2016) “Rethinking

the process
and challenges of Implementing GST in India” International Journal of
Commerce, Business and Management , vol 2 no 11, 2016
7. Tanushree Gupta (2016) “An Impact of Goods and Services Tax on Indian
Textile Industry” International Journal of Scientific and Engineering Research
, Volume 7, Issue ISSN 2229-5518
8. SubhamoyBanik 1, Advocate Arundhuti Das(2017) ,” GST in India-Impact

and Challenges” e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 19, Issue
12. Ver. IV
9. Dr.YogeshKailashchandra Agrawal (2017) “ Goods and Service Tax and it’s

Impact on Indian Economy” ISSN: 2278-487X, p-ISSN: 2319-7668. Volume
19
10. Rajitturukmane and Sujitgulhane (2017) Volume 3 Issue 1
Page | 66
11. Sony Pandey (2018) “GST Impact on Textile Industry”
12. Madhukar N Hiregange(2017) “GST Impact on Textile Industry”
13. Urvashi gupta(2017) “An Impact of GST on Textile Industry in India”

International Open Access Journal, Volume 2, ISSN no 2456-6470
Page | 67
Annexures: -
Questionarrie
1. Name:___________
2. Age?
Below 21
Between 21 - 30
Between 30 - 40
Above 40
3. Gender?
Male
Female
4. OCCUPATION?
Business
Services
Student
Others
5. Annual Income?
1,00,000-10,00,000
10,00,000-20,00,000
20,00,000-30,00,000
30,00,000
6. Do You Think Implementing GST Will Cause Higher Price Of Goods & Services?
Yes
No
Page | 68
7. Do you think all businesses need to be registered under GST?

Yes
No
8. Which system do you think is more beneficial to both government and people?
Goods & Services Tax
Sales Tax & Service Tax
9. Do you believe that introduction of GST will result in better input tax credits for
your business resulting in better profitability?
Yes
No
10. What is the impact on your business because of GST?

Positive Impact
Negligible Or No Impact
Negative Impact
11. Are you satisfied with the time given to assessee to implement the GST Council’s
decisions (such as changes in rate structure, rules, processes)?
Satisfied
Not Satisfied
12. Are you satisfied with your IT system readiness to comply with GST
requirements?
Yes
No
13. Do you think transition to GST Regime was?

Smoother
Difficult
Very difficult
Page | 69
14. Are you facing issues in claiming refund under the GST regime?
Yes
No
15. Do you feel, advance ruling mechanism under GST regime bring in friendly
environment to businesses?
Yes
No
16. How has GST impacted the pricing of your products/services?

Price to Customer Has Increased
Price to Customer Has Decreased
Price to Customer Has Remained Neutral
17. On an overall basis, do you think that GST is likely to have a positive impact on
India?
Yes
No
Page | 70
Map of Area of Study
Page | 71

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Analytical Study on Impact of GST on Common Man

Introduction to analytical study on impact of GST on common man

1.2 Different Types of Taxes.

1.3 Tax Laws before GST.

1.4 Need of GST

1.5 History and Background.

1.7 Bills Passed For the Implementation of GST Regime

1.8 Changes GST Has Brought In.

1.9 Tax Rate by GST.

1.11 Working of GST.

1.12 Stages of GST

1.14 Important Aspects of GST.

1.15 Key Features of GST

1.16 Benefits of GST.

1.17 Drawbacks of GST.

1.19 Impact of GST on Common Man

Some Important Terms:

GST is one indirect tax for the entire country.

Why GST has been proposed?

* They get children

1.2 Different Types of Taxes:

1.3 Tax Laws before GST

 Central Excise Duty

1.4 Need of GST:

1.5 History and Background:

Mitigation of the cascading impact has resulted in an increase of Indian

 In order to amend the Constitution to enable introduction of GST, the Constitution

 Meanwhile, in pursuance of the decision taken in a meeting between the Union

 The Empowered Committee in the Bhubaneswar meeting also decided to constitute

1.7 Bills Passed For The Implementation Of GST Regime:

1.8 Changes GST Has Brought In:

1.9 Tax Rate by GST:

 Postage or revenue stamps, stamp-postmarks, first-day covers, etc.

 Transformers Industrial Electronics

1.11 Working of GST:

1.12 Stages of GST:

 Purchase of raw materials

Name Of Item GST Rate% Exixting Rate%

Metals and Minerals:

Life Style and Home:

Cocoa Butter, Oils 28 26

Solar water Heater 5 0

1.14 Important Aspects of GST:

11. Dual Tax Structure

12. Integrated GST on inter-state supplies

13. Supply without consideration

15. Exemptions / Concessions

16. Compliance/ Tax Administration

1.15 Key Features of the GST Regime:

GST is applicable on the “supply” of services or goods as opposed to the earlier

GST will replace the central taxes mentioned below:

1.16 Benefits of GST:

1.17 Drawbacks of GST:

Technicalities of GST implementation in India have been criticized by global

1.19 Impact of GST on Common Man

2.2 Methods of Data Collection

2.3 Sampling Plan

2.4 Sample Size

2.5 Limitations of Present Study

2.6 Area of Study

Objectives of present study:

2.2 Methods of Data Collection:

Methods of Data Collection for Present Study: