Impact of GST On Retail Business With Repect To Airoli, Maharashtra PDF

A study on impact of GST on retail industry with respect to Airoli, Maharashtra
Chapter one:
INTRODUCTION
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1.1 SELECTION AND RELEVANCE
Reason behind selecting GST:
Changes in taxation system have always shown a big impact on the distribution channel.
This change also brought many changes like nullifying the earlier tax reforms and
applying the concept of single tax system. This ofcourse had to come with a price. Some
of such problems being vast changes in the economy of India, applicability and
execution of the new tax reforms, was a challenge for a country as populated and known
to be still developing as India. These were some of many reasons why the researcher
decided to do a project on Goods and Service Tax.
Reason behind selecting retail sector:
The another reason behind choosing this study is to study in detail how much and
exactly what was the impact that showed up during the initial GST regime in India with
respect to the retail section of the population. Though there have been impact on many
other sectors like food industry, housing and construction industry, FMCG industry,
rail sector, financial services, information technology enabled services, small
enterprises and many more but the reason researcher specifically chose this retail sector
is because it is one of the main sectors and because the common man is mainly linked
with this sector only, and as we all know, retailers are mostly the only ones who deal
with the goods as well as the general indirect taxpayers on a regular basis, also the
researcher thins that the retail sectors must have seen an magnified impact of tax
variation on the consumers and also the difficulties that they had to endure because they
were retailers and were now expected to follow a different and modified set of rules.
Scope:
And as long as the scope of this study is concerned, it may cover all the areas of difficult
and ease of the retailers and also the cause and effect relationship with the consumers
in a much better way. The geographical scope does not extend too far, only a few sectors
of Airoli region that exists in Navi Mumbai, Maharashtra. The main reason that the
researcher opts this area for its research project is because Airoli is considered to be a
fairly developed area thus assuming that the population must be aware of the major
changes that happened in recent days.
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1.2HISTORICAL BACKGROUND
The tax structure in India is divided into direct and indirect taxes;
1. Direct taxes:
A direct tax is paid directly by an individual or organization to the imposing
entity. A taxpayer, for example, pays direct taxes to the government for different
purposes, including real property tax, personal property tax, income tax or taxes
on assets.
Direct taxes are based on the ability-to-pay principle. This principle is an
economic term that states that those who have more resources or earn higher
income should pay more taxes. The ability to pay taxes is a way to redeploy the
wealth of a nation. Direct taxes cannot be passed onto a different person or
entity; the individual or organization upon which the tax is levied is responsible
for the fulfilment of the full tax payment.
Direct taxes, especially in a tax bracket system, can become a disincentive to
work hard and earn more money, because the more money a person earns, the
more taxes he pays.
Who are the tax payers in India?
Every individual, company, or business operating within India is liable to pay
income tax.The scope of income tax is determined by the tax slab and rates
provided annually by the Union Budget. Income tax slabs and rates for the
financial year (FY).
Types of direct taxes in India:
a. Income tax:
 Income tax is the most common and most important tax that an Indian
must pay.
 It is charged directly on the income of a person.
 The rate at which it is charged varies, depending on the level of income.
 It’s charged to individuals, co-operative societies, firms, companies,
Hindu Undivided Families (HUFs), trusts and any artificial judicial
person.
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 Income tax is charged on an income known as “taxable income”, which

is:
 Taxable income = (total income) – (applicable deductions and
exemptions).
The different heads of income under which income tax is chargeable are:
 Income from house and property.

 Income from business or profession.
 Income from salaries.
 Income in the form of capital gains.
 Income from other sources.
It is levied differently on different people depending on their residential

status.
b. Corporate tax:
 Levied on companies who exist as separate entities from their
shareholders.
 Foreign companies are taxed on income that arises, or is deemed to arise,
in India.
 It is charged on royalties, interest, gains from sale of capital assets located
in India, fees for technical services and dividends.
 Includes Minimum Alternative Tax (MAT) which was introduced to
bring Zero Tax companies under the income tax net, whose accounts
were made in accordance with the Companies Act.
 Includes Fringe Benefit Tax (FBT) which is a tax that companies pay on
the fringe benefits provided (or deemed to have been provided) to
employees.
 Incudes Dividend Distribution Tax (DDT) which is a tax levied on any
amount declared, distributed or paid as dividend by any domestic
company. International companies are exempt from this tax.
 Includes Securities Transaction Tax (STT) which is a tax levied on
taxable securities transactions. There is not surcharge applicable on this.
c. Wealth tax:
 Wealth tax is charged on the benefits derived from property ownership.
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 The same property will be taxed every year on its current market value.
 Wealth tax is charged whether the property in earning an income or not.
 The tax is levied on the individuals, HUFs, and companies alike.
 Chargeability depends on residential status.
The following will not be taxed as they are “working assets”:
 Assets held as stock in trade.
 Property held as a commercial complex.
 Gold deposit bonds.
 House property held for business or profession.
 House property let out over 300 days in a year.
d. Capital Gain tax:
 Taxed on the income derived from the sale of assets or investments.
 Capital investments cover homes, farms, businesses, works of art, etc.
 Capital gains = (money received from sale) – (cost of capital investment).
 Categorized as short-term gains (gains on assets sold within 36 months
of acquisition) and long-term gains (gains on assets sold after 36 months
of acquisition and holding).
 Voluntary tax that is paid by the taxpayer when the asset it sold.
2. Indirect taxes:
An indirect tax (such as sales tax, per unit tax, value added tax (VAT), or goods
and services tax (GST), excise, tariff) is a tax collected by an intermediary (such
as a retail store) from the person who bears the ultimate economic burden of the
tax (such as the consumer). The intermediary later files a tax return and forwards
the tax proceeds to government with the return. In this sense, the term indirect
tax is contrasted with a direct tax, which is collected directly by government
from the persons (legal or natural) on whom it is imposed. Some commentators
have argued that "a direct tax is one that cannot be charged by the taxpayer to
someone else, whereas an indirect tax can be.
As the government tables the Constitutional Amendment Bill in Rajya Sabha,
to GST a reality, here’s a look at the chronology of indirect tax reforms in India.
1935: Government of India Act, 1935 made tax on sales of goods a provincial
subject
1939: Sales Tax introduced in India in the State of Madras
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1941: Sales tax introduced in the State of Punjab; other states follow in later
years
1974: LK Jha Committee suggests introduction of value added tax (VAT) in
India
1986: MODVAT or modified VAT, introduced on select commodities
1991: Raja Chelliah Committee recommends VAT
1994: Service tax introduced in India
1999: Centre announces decision to introduce VAT in India.
2002: CENVAT or introduced on all commodities at central level
2003: VAT introduced in first Indian State of Haryana
2005: VAT in 24 States/UTs including Punjab, Chandigarh, HP, J&K and
Delhi.
2006: VAT implemented in 5 more States including Rajasthan.
2006- 07: Proposal for GST first mooted in the Budget Speech for the financial
year. Negotiation with States started began soon after
2008: Empowered Committee of State Finance Ministers (EC) engaged
2009: EC released its First Discussion Paper
2011: Constitution Amendment Bill on GST introduced
August 2013: Parliamentary Standing Committee submitted its report.
Recommendations of Standing Committee incorporated in the Bill
September 2013: Revised Bill sent to EC for consideration
March 2014: Incorporating recommendations of EC another revised Bill sent to
EC
December 2014: Constitution Amendment Bill introduced in Lok Sabha
May 5, 2014:Lok Sabha passes GST Bill
May 2015:Lok Sabha passes Constitution Amendment Bill for GST
August 2015 Congress insists on capping GST rate at 18% and specified in the
Constitution amendment Bill
July 2016: Centre and states agree against capping GST rate in the Constitution
amendment Bill
August 2016: Centre to move modified Constitution Amendment bill in Rajya
Sabha
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Differentiating between direct and indirect taxes
Table no.1.1
Context Direct tax Indirect tax

Imposition Imposed on income or profit Imposed on goods and
services
Tax payer Individuals, HUFs, Firms and End consumer of goods and
Companies services
Applicability Applicable to tax payer alone Applicable to ever stage of
production distribution
chain.
Tax burden The burden falls directly on The burden is shifted to the
the individual consumer b the
manufacturer or service
provider.
Transferability Cannot be transferred to Can be transferred from one
anyone else tax payer to another.
Coverage Confined to an entity or Wide coverage because all
individual tax payer members of the society are
taxed.
Administrative cost High administrative cost and Lesser administrative costs
many exemptions because of stable,
convenient collections.
Tax evasion Possible Not possible
Allocative effects Have good allocative effects Allocative effects not as
since the put burden on the good as direct taxes.
collection
Inflation Helps in reducing inflation Might help in increasing
inflation.
Orientation Discourage investments Growth oriented and
lessens savings encourages services.
Mode of progress Progressive, reduce Regressive and enhances
inequalities inequalities.
Most common types Income wealth and corporate GST or goods and service
in India tax. tax.
Difference between direct and indirect tax
About GST:
GST or Goods and Services Tax came into use from July 1, 2017 replacing number of
other taxes that was applied till June 30, 2018. The discussions of GST Bill has been in
process for more than two decades and the bill was passed to implement GST from July
1, 2017 by the Prime Minister ofIndia and his Finance Minister ArunJaitley. GST was
launched on the midnight of July 1, 2017. The single GST replaced several taxes and
levies which included: central excise duty, services tax, additional customs duty,
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surcharges, state-level value added tax and Octroi. We follow the dual GST system i.e.
GST for State and Central named SGST and CGST, respectively. Let us have an
overview on the history of GST from the content below as an eye-opener.
Overview on History of GST
Table no. 1.2
Date Task performed on that particular date

2006 First announcement of GST was made by the Union Minister during the
2006-2007 budget, that it would be introduced on April 1, 2010.
2009 Empowered Committee released the first Discussion Paper.
2011 115th Amendment Bill was introduced and subsequently lapsed
2014 122nd Amendment Bill was introduced in Lok Sabha
August 2016 One Hundred and First Amendment Act was enacted
September 2016 The first GST Council Meeting was conducted
March 2017 CGST, SGST, IGST, UTGST and Compensation Cess Act was
recommended by GST Council.
April 2017 CGST, SGST, IGST, UTGST and Compensation Cess Act were passed.
1 July 2017 GST laws, Goods and Services Tax was launched all over India.
7 July 2017 Jammu and Kashmir state legislature passed its GST.
History of GST based on country
Table no. 1.3
Country Information
France The first country to implement GST in 1954 and many other
European countries introduced GST in 1970-80s
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China Introduced VAT in 2016 to replace the Business Tax System that
was already existing. GST is applied on selected goods
Japan It introduced GST in the name of Consumption Tax in the year
1989.
Malaysia Introduced GST in 2015.
Australia GST was introduced in 2000 with the rate of 10% and with the
plans to increase it to 15%.
Singapore Introduced GST in the year 1994.
Canada GST was introduced in 1991 and has a dual model like India i.e.
State GST and Central GST Country
1.4 DEFINITIONS
Goods: Section 2(52): “Goods” means every kind of movable property other than
money and securities but includes actionable claim, growing crops, grass, and things
attached to or forming part of land which are agreed to be served before supply or under
a contract of supply.
Services: Section 2(102): “Services” mean anything other than goods money and
securities but includes activities relating to the use of money or its conversion by cash
or any other mode, from one form, currency or denomination, to another form currency
or denomination for which a separate consideration is charged.
Return [Section 2(97)]: “Return” means any return prescribed or otherwise required
to be furnished by or under this act or the rules made thereunder.
Principal supply [Section 2(90)]: “Principal supply” means the supply of goods and
services – which constitutes the predominant element of a composite supply and to
which any other supply forming part of that composite supply is ancillary.
“Invoice” or “Tax Invoice” [Section 2(66)]: “Tax Invoice” or “Invoice” means the tax
invoice referred to in section 31. On plain reading of the law it appears that “invoice”
and “tax invoice” have been used interchangeably to refer to that document prescribed
by the law, as a document shall be issued by the registered person on making taxable
supplies. The tax invoice should contain all the prescribed details such as description
of goods, quantity, value and tax charged on the supply.
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Input Tax [Section 2(62)]: “Input Tax” in relation to a registered person, means the
central tax, state tax, integrated tax and union territory tax charged on any supply of
goods and services or both made to him and includes the integrated goods and service
tax charged on import of goods; the tax paid under the provisions 9(3) and (4); the tax
payable under the provisions of section 5(3) and (4) of the integrated goods and service
tax act; tax paid under the provisions 9(3) and 9(4) o the respective state goods and
service tax act; or the tax payable under the provisions of section 7(3) and(4) of the
union territory goods and service act, but does not include the tax paid under
composition levy.
Consideration [Section 2(31)]: “Consideration” in relation to goods or services or both

includes (a) any payment made or to be made, whether in money or otherwise, in respect
of, in response to, or for the inducement of goods or services or both, whether by the
recipient or by any other person but shall not include any subsidy given by central
government or state government; (b) the monetary value of any act or forbearance, in
respect of, in response to, or for the inducement of, the supply of goods or services or
both, whether by the recipient or by any other person but shall not include any subsidy
given by central government or a state government.
1.1 FEATURES AND KEY CONCEPTS
Some of thekey features of the GSTare:
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.20 lakhs 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
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supplying goods to other states have to register under GST, even if their sales 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 centre 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%. 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.
5. Tax revenue appropriation between the centre and states: The centre 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 centre 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.
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10. Apportionment of IGST revenue: The IGST collected will be apportioned

between the centre and the state where the goods or services are consumed. The revenue
will be apportioned to the centre at the CGST rate, and the remaining amount will be
apportioned to the consuming state.
Some of the key concepts of GST are given below, some concepts like council, network
and return have been repeated as the researcher finds them important for the project,
the researcher finds the need to explain these contents in more detail as earlier only a
brief explanation has been given in the chapter 1.3 (brief profile of GST)
GST Council:
Goods & Services Tax Council is a constitutional body for making recommendations
to the Union and State Government on issues related to Goods and Service Tax. The
GST Council is chaired by the Union Finance Minister and other members are the
Union State Minister of Revenue or Finance and Ministers in-charge of Finance or
Taxation of all the States.
 The Goods and Services Tax Council shall make recommendations to the Union
and the States on—
 The taxes, cesses and surcharges levied by the Union, the States and the local
bodies which may be subsumed in the goods and services tax;
 The goods and services that may be subjected to, or exempted from the goods
and services tax;
 Model Goods and Services Tax Laws, principles of levy, apportionment of

Goods and Services Tax levied on supplies in the course of inter-State trade or
commerce under article 269A and the principles that govern the place of supply;
 The threshold limit of turnover below which goods and services may be
exempted from goods and services tax;
 The rates including floor rates with bands of goods and services tax;
 Any special rate or rates for a specified period, to raise additional resources
during any natural calamity or disaster;
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 Special provision with respect to the States of Arunachal Pradesh, Assam,

Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim,
Tripura, Himachal Pradesh and Uttarakhand; and
 Any other matter relating to the goods and services tax, as the Council may
decide.
GSTN (Goods and Service Tax Network)
Goods and Services Tax Network (GSTN) is a Section 8 (under new companies Act,
not for profit companies are governed under section 8), non-Government, private
limited company. The graphical image below shows the role expected to be followed
by GSTN or in other words, it shows what GSTN was designed to do.
Chart no. 1.1
Role of GSTN (ref. www.gstn.org)
Another information like commencement, registration, purpose, vision, values, etc. is

given below in the form of bullets.
 It was introduced by the Government as a private company in 2013.

 It was registered under the Companies Act 1956, under Section 25.
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 The main purpose of GSTN is to provide front-end services of registration, returns

to taxpayers and payment. It also has the duty to develop back-end technical
modules which will used by the states that had opted.
 Nearly 34 IT and Financial technology companies are chosen and named as GST
Suvidha Providers to develop applications that will be accessed by taxpayers to
interact with GSTN. These applications are very useful for the taxpayers as well as
the government.
 The vision of GSTN is, “To become a trusted National Information Utility (NIU)
which provides reliable, efficient and robust IT Backbone for the smooth
functioning of the Goods & Services Tax regimen enabling economic agents to
leverage the entire nation as One Market with minimal Indirect Tax compliance
cost.”
 The values adopted by GSTN are; inclusiveness, efficiency, transparency,
commitment, collaboration, excellence, innovation and accountability.
Goods and Service Tax Returns (GSTR):
Different tax return forms have been prescribed under GST law for different kinds of
taxpayers. Some key features of returns are that (i) GST Returns can only be filed
online. (ii) You will be able to generate and prepare forms offline but they need to be
filed online. (iii) A common return will be required for CGST, SGST, IGST and
additional tax. (iv) At GST common portal you will be able to file return yourself or
authorise someone to do it on our behalf. (v) Revision of returns once filed ill not be
allowed. You will be required to incorporate changes in next return.
There are various types of returns, each satisfying a category or stage of return filing
process. In the table given below, the researcher has mentioned all the different return
forms from (GSTR-1 to GSTR-11) prescribed under model GST law. The table will
give an idea about the purpose of filing them as well as the time of filing each return
Form name Purpose of filing Frequency Due date
GSTR-1 Details of outward Monthly 11th of the next

supplies of taxable goods month w.e.f.
and/or services affected October 2018.
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Previously, the due

date was 10th
GSTR-2 Details of inward Monthly 15th of next month

Suspended supplies of taxable goods
and/or services affected
claiming the input tax
credit
GSTR-3 Monthly return on the Monthly 20th of next month
Suspended basis of finalization of
details of outward
supplies and inward
supplies along with the
payment of tax.
GSTR-3B Simple Return in which Monthly 20th of next month
summary of outward
supplies along with Input
Tax Credit is declared
and payment of tax is
affected by taxpayer.
GSTR-4 Return for a taxpayer Quarterly 18th of the month
registered under the succeeding quarter.
composition levy.
GSTR-5 Return for a Non- Monthly 20th of next month
Resident foreign taxable
person
GSTR-6 Return for an Input Monthly 13th of next month
Service Distributor
GSTR-7 Return for authorities Monthly 10th of next month
deducting tax at source.
GSTR-8 Details of supplies Monthly 10th of next month
effected through e-
commerce operator and
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the amount of tax

collected
GSTR-9 Annual Return for a Annually 31st December of the
Normal Taxpayer next financial year.
GSTR-9A Annual Return a taxpayer Annually 31st December of
registered under the next financial year.
composition levy
anytime during the year
GSTR-10 Final return Once, when Within three months
GST of the date of
Registration is cancellation or date
cancelled or of cancellation
surrendered order, whichever is
later.
GSTR-11 Details of inward Monthly 28th of the month
supplies to be furnished following the month
by a person having UIN for which statement
and claiming a refund is filed
Due dates of all GST Returns (Ref. www.cleartax.com)
Tax rates of products by GST:
Some of the basic tax rates by GST Council are given below in the form of table for the
better understanding of the reviewer. These tax rates can be changed from time to time.
Table no. 1.5
Tax rates Products

5% Household necessities such as edible oil, sugar, spices, tea, and
coffee (except instant) are included. Coal, Mishti/Mithai (Indian
Sweets) and Life-saving drugs are also covered under this GST slab.
12% This includes computers and processed food.
18% Hair oil, toothpaste and soaps, capital goods and industrial
Intermediaries are covered in this slab.
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28% Luxury items such as small cars, consumer durables like AC and
Refrigerators, premium cars, cigarettes and aerated drinks, High-
end motorcycles are included here.
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Chapter Two
RESEARCH METHODOLOGY
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1.1 OBJECTIVES OF THE STUDY
Research is an organised investigation of a problem in which there is an attempt to gain

a solution to the problem. To get right solutions to the right problem, clearly defined
objectives are very important. Clearly defined objectives enlightens the way in which
the researcher has to proceed.
A research objective is a clear, concise, declarative statement, which provides direction

to investigate the variables. Generally research objectives focus on the ways to measure
the variables, such as to identify or describe them. Sometime objectives are directed
towards identifying the relationship or difference between two variables.
Research objectives are the results sought by the researcher at the end of the research
process, i.e. what the researcher will be able to achieve at the end of the study. The
objectives of a research project summarize what is to be achieved by the study.
Objectives should be closely related to the statement of the problem. The objective
include answers to research questions or testing the research hypothesis.
The objectives that the researcher has set for this study are;
 To assess the impact of GST over retail industry.

 To understand the difficulties faced by the retailers due to change in indirect
taxation system.
 To know about the changes bound to take place in the profits of the individual
retailers.
 To assess the changes in the distribution chain due to implementation of GST.
 To know the consumer awareness and perception towards GST.
 To analyse the impact of buying behaviour of the consumers.
 To study the prospects on implementation of goods and service tax (GST)
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1.2 HYPOTHESIS OF THE STUDY
A hypothesis is a specific statement of prediction. It describes in concrete (rather than

theoretical) terms what you expect will happen in your study. Not all studies have
hypothesis. Sometimes a study is designed to be exploratory. There is no formal
hypothesis, and perhaps the purpose of the study is to explore some area more
thoroughly in order to develop some specific hypothesis or prediction that can be tested
in future research. A single study may have one or many hypothesis.
Actually, whenever we talk about the hypothesis, we are really thinking simultaneously
about two hypothesis. Let's say that you predict that there will be a relationship between
two variables in a study. The way we would formally set up the hypothesis test is to
formulate two hypothesis statements, one that describes our prediction and one that
describes all the other possible outcomes with respect to the hypothesized relationship.
Our prediction is that variable A and variable B will be related (we don't care whether
it's a positive or negative relationship). Then the only other possible outcome would be
that variable A and variable B are not related. Usually, we call the hypothesis that you
support (your prediction) the alternative hypothesis, and we call the hypothesis that
describes the remaining possible outcomes the null hypothesis.
Sometimes we use a notation like HA or H1 to represent the alternative hypothesis or

our prediction, and HO or H0 to represent the null case. We have to be careful here,
though. In some studies, our prediction might very well be that there will be no
difference or change. In this case, you are essentially trying to find support for the null
hypothesis and you are opposed to the alternative.
Some basic characteristics of hypothesis in a study are;
 it is empirically testable,
 it is simple and clear,
 it is specific and relevant,
 it is predictable and
 it is manageable.
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Hypothesis is important because;
 it gives direction to the research,

 it specifies the focus of the researcher,
 it helps in devising research techniques,
 it prevents from blind research,
 it ensures accuracy and precision,
 it saves resources; time, money and energy.
There are various types of hypothesis; which could be explained in the following
manner:
1. Simple hypothesis: a simple hypothesis is a hypothesis that reflects a relationship

between 2 variables; independent and dependent variable.
2. Complex hypothesis: complex hypothesis is a hypothesis that reflects the
relationship among more than 2 variables.
3. Working hypothesis: a hypothesis that is accepted to put test and work in the
research is called a working hypothesis. It is a hypothesis that is assumed to be
suitable to explain certain facts and relationship of phenomena. It is hoped that this
hypothesis would generate a productive theory and is expected to put at test for
investigation. It can be any hypothesis that is processed for work during the
research.
4. Alternative hypothesis: if the working hypothesis is proved wrong or rejected,
another hypothesis (to replace the working hypothesis) is formulated to be tested to
generate desired results. This is known as an alternative hypothesis.
5. Null hypothesis: a null hypothesis is a hypothesis that expresses no relationship
between variables, it negates association between variables.
From the above mentioned types of hypothesis, the researcher finds that Alternative
hypothesis (H1) and Null hypothesis (H0) will be helpful for the research. Thus,the
hypothesis formulated for this study are specified below:
H1: The introduction of GST has brought a negative impact on the retail industry.
H0: The introduction of GST has not brought a negative impact on the retail industry.
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1.3 SCOPE OF THE STUDY
The scope of the study basically means all those things that will be covered in the
research project. It defines clearly the extent of content that will be covered by the
means of the research in order to come to more logical conclusions and give conclusive
and satisfactory answers to the research.
The scope of the study has to be defined at a preliminary stage and that is very
important. It cannot be done in the later phase of doing the research as it creates a lot
of ambiguity about the research goals. If the researcher fails to define the scope at the
initial stage itself it is indicative that the research would eventually not meet the
expectations set by the dissertation committee.
The study focuses on retail industry, the impact over the retail industry due to the
introduction and implementation of goods and service tax. It might also cover the
impact of goods and service tax on consumers to a certain extent as they are directly
connected to the retailers. In this study, the researcher will be collecting primary data
personally through questionnaire method from retail shop owners or shall we say retail
businessmen. The questions during the research are asked to either the owners or the
workers of that retail shops that are in regular interaction with consumers and
wholesalers. The researcher in her questionnaire has asked questions relating to the
impact of the goods and service tax and whether it has been negative or positive; if
negative then how much and in what aspects and if positive then how much and in what
all aspects. The researcher believes that through this method she will be able to prove
her hypothesis in a good manner. And for secondary data collection, research papers on
relating topics by various authors have been reviewed by the researcher. Researcher has
also referred some leading newspapers like the economic times and the times of India
for a better and realistic research. And while reviewing the research papers by various
authors the researcher has kept in mind to review the literature both before and after the
implementation of goods and service tax.
And about the questionnaire, apart from what questions and in what context they are
being asked, the length of the questionnaire is also important. Since the questions are
to be asked to retail businessmen or the workers of those retail shops in general, the
researcher finds it safe to keep the questionnaire close ended and very to-the-point. Also
the researcher have asked not more than 25 questions out of which 20 are unavoidable
and others are not. This is done so that specific and assured data can be obtained.
22
Talking about the area covered for this project, only Airoli region from Navi Mumbai
is selected. There are two reasons for it; one is that the researcher is under a time
constraint and thus cannot cover a larger area and the other reason is that the budget for
the study cannot accommodate a bigger area.
Now, coming to the structure of the project, the project is divided into five major
sections:
The first section is Introduction, where in all the details about two main variables of
the project out of which one is goods and service tax and the other is retail industry. All
the information a basic knowledge required to go further in this area is being talked in
this first section of the project.
The second section is Research Methodology, wherein the all the details regarding how
the project is to be done is given here. The sub-sections like objectives, hypothesis,
scope, problem selection, sample size, data collection and techniques/tools used by the
researcher for this project.
The third section is Review Of Literature, wherein all the secondary data is present.
All the knowledge about the subject in minute details is given in this particular section.
Here the researcher presents her view on the project reviewed her. Like what she
learned by it and what is the relevance of it with the research project researcher herself
is conducting.
The fourth section is regarding the data analysis, interpretation and presentation;
where in all the technical work has been done. All the primary data collected through
questionnaires are assessed and interpreted. And then presented in a easily
understandable ways for the readers. For this purpose, the researcher decides to take
help of pie charts and tables and graphs.
The fifth section is regarding the conclusion of the project. Whatever we have done
through the course of the project, it brings us down to a certain conclusion. That is what
this section is all about. All the data interpretation and hypothesis testing along with
what result it brings are brought to an end in this part. Here the entire project ends
leaving no room for discussion for the researcher.
So, this is the scope of the entire research project.
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1.4 LIMITATIONS OF THE STUDY
The limitations of the study are those characteristics of design or methodology that
impacted or influenced the interpretation of the findings from your research. They are
the constraints on generalizability, applications to practice and/or utility of findings that
are the result of the ways in which you initially chose to design the study or the method
used to establish internal and external validity or the result of unanticipated challenges
that emerged during the study.
Dr. Marilyn Simon in her study, ‘Assumptions, limitations and delimitations’

specify that, “Limitations are potential weaknesses in your study and are out of your
control. We find limitations in almost everything we do. If you are using a conventional
oven, food in the middle racks often are undercooked while the food closest to the
burner and the top can be too well done. If you are using a sample of convenience, as
opposed to a random sample, then the results of your study cannot be generally applied
to a larger population, only suggested. If you are looking at one aspect, say
achievement tests, the information is only as good as the test itself. Another limitation
is time. A study conducted over a certain interval of time is a snapshot dependent on
conditions occurring during that time. You must explain how you intend to deal with
the limitations you are aware of so as not to affect the outcome of the study.”
There are some limitations in this study that need to be paid attention to:
1. Sample size:
The sample size for this research is 30. It is less than compared to the population
that the researcher is facing. Thus this is one limitation the researcher fails to fight
and realises that it can affect the reliability of the project.
2. Time:
There is a constraint of time as it is an academic research. The researcher has been

given a deadline of 2 months and thus it has somehow affected the overall project.
Thus, it is possible that the researcher may not be able to incorporate all the details
in this research project. Hence it is a limitation for the project, that might not have
been have present if the researcher had been given enough time.
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1.5 SIGNIFICANCE OF THE STUDY
The Significance of the Study describes what contribution your study will make to the
broad literature or set of broad educational problems upon completion. In this activity,
you will draft your Significance of the Study by determining what you hope will benefit
others and/or how readers will benefit or learn from your study.
The significance of the study is important to be mentioned to that the readers know if
they are actually going to be benefitted from this study, what all parts the study this will
cover and who as persons will be benefitted by this. So that they do not waste their time
if this is not what they were looking for.
The significance of this study is given in the points below;
1. Future researchers:
The ideas presented may be used as reference data in conducting new researches
or in testing the validity of other related findings. This study will also serve as
their cross-reference that will give them a background or an overview of the
goods and service tax and its impact over the retail industry.
2. Retailers:
This study will help the retailers to understand what major problems they have
faced and if those problems are what have been faced by all the retailers in the
area. It will help the retailers to see and will give them a space to analyse the
changes from a researcher’s point of view.
3. People aspiring to be retailers:
People wanting to be retailers will help them decide if there is scope for them
to actually go ahead in this direction and that are they ready to face the effects
of GST both positive and negative. This research paper will help them take their
decision with precision. This will also help them to be ready of GST taxes and
their registrations and returns and problems.
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1.6 SELECTION OF PROBLEM
The research problem is that what is the impact of goods and service tax in retail sector.
And thus it can be seen that there are two variables of this research project; one of which
is goods and service tax (GST) and the other is retail industry. Here goods and service
tax is an independent variable and retail is a dependent variable seeing that the changes
in tax system has somehow shown difference in operations of retail industry too. Thus,
below it has been mentioned why these variables have been chosen for conducting the
research and what are the various reasons.
Reason behind selecting GST:
Changes in taxation system have always shown a big impact on the distribution channel.
This change also brought many changes like nullifying the earlier tax reforms and
applying the concept of single tax system. This of course had to come with a price.
Some of such problems being vast changes in the economy of India, applicability and
execution of the new tax reforms, was a challenge for a country as populated and known
to be still developing as India. These were some of many reasons why the researcher
decided to do a project on Goods and Service Tax.
Reason behind selecting retail sector:
The another reason behind choosing this study is to study in detail how much and
exactly what was the impact that showed up during the initial GST regime in India with
respect to the retail section of the population. Though there have been impact on many
other sectors like food industry, housing and construction industry, FMCG industry,
rail sector, financial services, information technology enabled services, small
enterprises and many more but the reason researcher specifically chose this retail sector
is because it is one of the main sectors and because the common man is mainly linked
with this sector only, and as we all know, retailers are mostly the only ones who deal
with the goods as well as the general indirect taxpayers on a regular basis, also the
researcher thins that the retail sectors must have seen an magnified impact of tax
variation on the consumers and also the difficulties that they had to endure because they
were retailers and were now expected to follow a different and modified set of rules.
26
1.7 SAMPLE SIZE
Meaning of sample:
In statistics, a sample is a subset of a population that is used to represent the entire group
as a whole. When doing research, it is often impractical to survey every member of a
particular population because the sheer number of people is simply too large. To make
inferences about the characteristics of a population, researchers can use a random
sample.
Meaning of sample size:
Sample size is a count of the individual samples or observations in any statistical

setting, such as a scientific experiment or a public opinion survey. Though a relatively
straightforward concept, choice of sample size is a critical determination for a project.
Too small a sample yields unreliable results, while an overly large sample demands a
good deal of time and resources. For example, if you test 100 samples of soil for
evidence of acid rain, your sample size is 100. If an online survey returned 30,500
completed questionnaires, your sample size is 30,500. In statistics, sample size is
generally represented by the variable "n"
Selecting correct samples are important because,
 They are going to determine the result of the project.

 If they are not ideal the entire project will not be reliable, the results may vary
a lot from the actual answers.
 The samples are what the researcher would assess and show in her project as
the proof of her primary data collection.
For this study, the sample size have been selected logically, the study has been
conducted on airoli region and thus at least one sample from each sector has been
considered. And there are 20 sectors in airoli region some of them divided in to sub-
sectors too. Hence, the researcher, decides to take 30 samples from the population. The
selection of the sample have been done on geographical grounds so that the samples are
ideal presenters of the population and all of the area is covered positively. Researcher
thinks that this selection and this sample size will lead her to what she wants to prove.
27
1.8 DATA COLLECTION
Data collection is the process of gathering and measuring information on variables of

interest, in an established systematic fashion that enables one to answer stated research
questions, test hypotheses, and evaluate outcomes. The data collection component of
research is common to all fields of study including physical and social sciences,
humanities, business, etc. While methods vary by discipline, the emphasis on ensuring
accurate and honest collection remains the same.
The importance of ensuring accurate and appropriate data collection:
Regardless of the field of study or preference for defining data (quantitative,

qualitative), accurate data collection is essential to maintaining the integrity of research.
Both the selection of appropriate data collection instruments (existing, modified, or
newly developed) and clearly delineated instructions for their correct use reduce the
likelihood of errors occurring.
Consequences from improperly collected data include:
 inability to answer research questions accurately

 inability to repeat and validate the study
 distorted findings resulting in wasted resources
 misleading other researchers to pursue fruitless avenues of investigation
 compromising decisions for public policy
 causing harm to human participants and animal subjects
While the degree of impact from faulty data collection may vary by discipline and the
nature of investigation, there is the potential to cause disproportionate harm when these
research results are used to support public policy recommendations.
In this research project, the data collected can be categorised in 2 types; they are,
 Primary data: Primary data is information that you collect specifically for the
purpose of your research project. An advantage of primary data is that it is
specifically tailored to your research needs. A disadvantage is that it is expensive
to obtain. The source of your primary data is the population sample from which you
collect the data. The first step in the process is determining your target population.
Once you have determined your target population, you will need to decide how to
28
represent this population in your study. Obviously, it's impracticable to collect data
from everyone, so you will have to determine the sample size and the type of
sample.
 Secondary data: Secondary data is research data that has previously been gathered
and can be accessed by researchers. The term contrasts with primary data, which is
data collected directly from its source. Secondary data is used to increase the
sampling size of research studies and is also chosen for the efficiency and speed
that comes with using an already existing resource.
These data are used in this research. The details about the primary and secondary data
in this research is specified as given below;
1. Primary data:
The researcher will be collecting primary data personally through questionnaire method
from retail shop owners or shall we say retail businessmen. The questions during the
research are asked to either the owners or the workers of that retail shops that are in
regular interaction with consumers and wholesalers. The researcher in her questionnaire
has asked questions relating to the impact of the goods and service tax and whether it
has been negative or positive; if negative then how much and in what aspects and if
positive then how much and in what all aspects.
Apart from what questions and in what context they are being asked, the length of the
questionnaire is also important. Since the questions are to be asked to retail
businessmen or the workers of those retail shops in general, the researcher finds it safe
to keep the questionnaire close ended and very to-the-point. Also the researcher have
asked not more than 25 questions out of which 20 are unavoidable and others are not.
This is done so that specific and assured data can be obtained. We have already learned
above why the data collected should be correct and errorless.
2. Secondary data:
Research papers on relating topics by various authors have been reviewed by the
researcher. Researcher has also referred some leading newspapers like the economic
times and the times of India for a better and realistic research. And while reviewing the
research papers by various authors the researcher has kept in mind to review the
literature both before and after the implementation of goods and service tax
29
2.9 TECHNIQUES AND TOOLS TO BE USED
There are some key tools and techniques that will help to ensure the successful
implementation of a project. The planning process that you have already completed was
largely a solitary job with few essential deadlines to be met, and few concurrent
activities. On the other hand, project implementation, for all but the smallest projects,
is very much a hands-on, reactionary type job. There are people to recruit, train, and
manage. Tasks need to be assigned. Completed work needs to be signed off.
Uncompleted work needs to be re-scheduled, and perhaps re-costed. Solutions for
developing problems need to be found quickly.
Even the best plan cannot be implemented by just sitting back and watching things
happen. Section 4.2.2 of the "Guide to the Project Management Body of Knowledge"
(PMI, 1996) summarizes some of the key tools and techniques to aid in the process of
managing your project:
 General management skills

 Product skills and knowledge
 Work authorization system
 Status review meetings
 Project management information system
 Organizational procedures
Project management techniques:
 Classic technique: The simplest, traditional technique is sometimes the most

appropriate for running projects. It includes preparing a plan of upcoming work,
estimating tasks to perform, allocating resources, providing and getting feedback
from the team, and monitoring quality and deadlines. This technique is ideal for
running projects performed by small teams, when it’s not really necessary to
implement a complex process.
 Waterfall technique: This technique is also considered traditional, but it takes the
simple classic approach to the new level. As its name suggests, the technique is
based on the sequential performance of tasks. The next step starts when the previous
one is accomplished. To monitor progress and performed steps, Gantt charts are
often used, as they provide a clear visual representation of phases and dependencies.
30
 Program Evaluation and Review Technique: Program Evaluation and Review

Technique (PERT) is one of widely used approaches in various areas. It involves
complex and detailed planning, and visual tracking of work results on PERT charts.
Its core part is the analysis of tasks performed within the project.
 Other techniques: along with these there are other techniques too that can be used
by the researchers to conduct a research project. They are namely;
 Critical chain technique
 Rational unified project
 Agile project management
 Critical path technique
 Extreme project technique
Project management tools:
When applying any of the techniques to the project you need to accomplish, you also
need to use specific tools for successfully implementing the technique. Here’s a list of
software tools that are used in project management on different work steps.
 Organising workflow and planning

 Communication
 Scheduling
 Time management
 Finance and accounting.
The techniques and tools used for this project basically are;
The researcher plans to use classical technique of preparing a research project as the
researcher thinks that it will be sufficient for the kind of project she is being using and
coming the tools of the project, along with the above mentioned tools which are
obviously basic for anyone to prepare any project some computer related tools like
Microsoft excel and Microsoft word have been used for the preparation of the project.
And as for the analysis, the tools like pie chart, bar graph, etc have been used by the
researcher from the excel sheet. Along with this, researcher has used google forms to
collect the answers for her questionnaires. It has tentatively reduced a lot of burden
from researcher’s head thus letting her focus on the project better.
31
Chapter Three
REVIEW OF LITERATURE
32
3.1 NEED AND IMPORTANCE OF REVIEW OF LITERATURE (in this

project)
A number of research papers are studied in order to understand the impact that GST has
caused over the retailers in general. Many research scholars have put their opinion about
the topic that researcher has taken. Some of which are from India and others are from
different countries. Reviewing their work has helped the researcher in many ways, like
having an insight or a kind of overview about the topic and knowing important facts
that makes the research more concrete in its being. Along with the below mentioned
research papers the researcher has also taken information from newspapers, interviews
of some relevant authorities, magazines and varied different websites. Many sources
have been used to get the project concrete and true in its being also many journals from
scholars have been referred to understand the topic better. The need and importance of
review of literature is explained below in the form of bullets.
1. Overview on topic: Reviewing other scholars work help to get an overview on the
topic chosen, it helps the researcher to know what should be done and how the
research must be.
2. Scope of the study: While reviewing a certain project or research paper, we get to
know where the actual scope of a study is. For example, in this case, reading various
papers and realising that not many have worked or studied on the impact of retailers.
So there might a scope to study on the impact on retailer due to implementation of
GST.
3. Secondary information: Review of literature is a source of secondary information
for any person doing a research. As we all know, both primary and secondary data
are dependent on each other. Therefore, secondary data when collected acts as a
confirmation tool for the primary data and vice versa. It plays a vital role in any
research and therefore is included in all kinds and types of research. All printed and
uploaded data comes under secondary data and can be or rather is used by the
researcher while reviewing the content.
4. One person’s work can be another person’s treasure: Work published by
someone in 90s, which had no literal use then, could be todays deal breaker. To find
such work can be really helpful for the researcher in her project. Thus, unless that
33
literature is found and reviewed, it is of no use, therefore review of literature is an

important concept.
5. Methods of presenting: reviewing the literature from different authors might help
the researcher to understand how to present the paper in a better manner. How to
frame a research method and how to prepare data analysis so that the reviewer has
no problem contemplating it is often a big question in a beginners mind. All those
questions will be answered through this review.
That being said the researcher thinks that it would be beneficial and accurate for her to
review both Indian and foreign authors as all of them might think of the research topic
in a different manner. Therefore researcher finds it accurate to review 10 Indian authors
and 10 authors form outside the country. This might help the researcher get a perfect
overview on the subject and samples.
Literature reviews are pervasive throughout various academic disciplines, and thus you
can adopt various approaches to effectively organize and write your literature review.
The University of Southern California created a summarized list of the various types of
literature reviews, reprinted here:
Some of the types of review literature are given below:
Argumentative Review:
This form examines literature selectively in order to support or refute an argument,

deeply imbedded assumption, or philosophical problem already established in the
literature. The purpose is to develop a body of literature that establishes a contrarian
viewpoint. Given the value-laden nature of some social science research [e.g.,
educational reform; immigration control], argumentative approaches to analysing the
literature can be a legitimate and important form of discourse. However, note that they
can also introduce problems of bias when they are used to make summary claims of the
sort found in systematic reviews.
Integrative Review:
Considered a form of research that reviews, critiques, and synthesizes representative

literature on a topic in an integrated way such that new frameworks and perspectives
on the topic are generated. The body of literature includes all studies that address related
34
or identical hypotheses. A well-done integrative review meets the same standards as

primary research in regard to clarity, rigor, and replication.
Historical Review:
Few things rest in isolation from historical precedent. Historical reviews are focused on
examining research throughout a period of time, often starting with the first time an
issue, concept, theory and phenomena emerged in the literature, then tracing its
evolution within the scholarship of a discipline. The purpose is to place research in a
historical context to show familiarity with state-of-the-art developments and to identify
the likely directions for future research.
Methodological Review:
A review does not always focus on what someone said [content], but how they said it
[method of analysis]. This approach provides a framework of understanding at different
levels (i.e. those of theory, substantive fields, research approaches and data collection
and analysis techniques), enables researchers to draw on a wide variety of knowledge
ranging from the conceptual level to practical documents for use in fieldwork in the
areas of ontological and epistemological consideration, quantitative and qualitative
integration, sampling, interviewing, data collection and data analysis, and helps
highlight many ethical issues which we should be aware of and consider as we go
through our study.
Systematic Review:
This form consists of an overview of existing evidence pertinent to a clearly formulated

research question, which uses pre-specified and standardized methods to identify and
critically appraise relevant research, and to collect, report, and analyse data from the
studies that are included in the review. Typically it focuses on a very specific empirical
question, often posed in a cause-and-effect form, such as "To what extent does A
contribute to B?"
Theoretical Review:
The purpose of this form is to concretely examine the corpus of theory that has
accumulated in regard to an issue, concept, theory, phenomena. The theoretical
literature review help establish what theories already exist, the relationships between
35
them, to what degree the existing theories have been investigated, and to develop new
hypotheses to be tested. Often this form is used to help establish a lack of appropriate
theories or reveal that current theories are inadequate for explaining new or emerging
research problems. The unit of analysis can focus on a theoretical concept or a whole
theory or framework.
Summarising the theory of review of literature we can say that,
 Literature review shows what has been done in the research field and how the
intended study relates to earlier research.
 Literature review consists of research findings as well as propositions and opinions
of researchers in the field.
 Literature review delimits the study, relates the methods used by otherresearchers,
recommendations of earlier works and provides the basis for theintended research
task.
 All journals and research articles reviewed should be critically evaluated.
 Literature review can reveal methods of dealing with the research problemthat may
be similar to the difficulties you are facing.
 Literature review will increase your confidence in your research topic if youfind
other researchers have an interest in this topic and have invested time,effort and
resources studying it.
Reviewing literature can be time-consuming and daunting. However, it is always

rewarding. A review of literature has a number of functions in research methodology
the main functions of literature review are, that it provides theoretical background to
your study or field of interest, helps justify how your findings are relating to the body
of knowledge in your field of research and that it establishes a link between what you
propose to examine and what has already been found also, it helps to refine your
research methodology.
The researcher would like to divide this chapter into 3 parts,
3.1 Need and importance in review of literature in this project
3.2 Reviewing the literature of Indian authors
3.3 Other literature
36
3.2 INDIAN RESEARCH SCHOLARS
Dr.MadhuBala (2018): ‘GST in India and its impact on Indian economy’
Findings:
Where on one hand GST has some imitations like negative impact on price levels of
important goods and services, real estate and working capital of the firms due to the
genuine reasons, on the other hand though, the author says, it has many more
advantages which help the country develop its economy and grow more efficiently and
smoothly. While concluding her paper she says,“It is preferred every economy must
adopt GST at national level to make their economy attractive for foreign investors. By
implementing GST, the developing economy like India can achieve sustainable and
balanced development. Slowly, India shall move to join the world wide standards in
taxation, corporate laws and managerial practices and be among the leaders in these
fields.
It can also be concluded from the above discussion that GST will provide relief to
producers and consumers by providing wide and comprehensive coverage of input tax
credit set-off, service tax set off and subsuming the several taxes. It can be further
concluded that GST have a positive impact on various sectors and industry”
Limitations:
Talking about the limitations of her research paper, the author has done hr entire
research on the basis of secondary resources. Thus the paper is not fully reliable. But it
does provide the scope for other research scholars to take the work forward. The other
limitation is that the reviewer might have to get help of other papers, reviewing only
this might not be enough and also this research has been conducted on entire Indian
economy. And thus, it does not focus on magnified view.
Conclusion:
Although what the researcher would like to put light upon is that, just like the
researcher, author seems to understand that there is a negative impact over pricing
system. Though the author, Dr.MadhuBala, has not mentioned the causes in detail, she
does realise that it may change the routine of the retailers and the consumers.
37
Sreekumar P. G., Chithra R (2018): A Study on the Impact of GST in FMCG

Sector with Special Reference to Palakkad District, Kerala.
Findings: In introduction the author says that “GST will have a far – reaching impact
on business avenues and compelling organizations to realign their bottlenecks. India is
one of the largest producers for a number Fast Moving Consumer Goods which offers
a large and growing market. The impact of GST on the Indian fast moving consumer
goods is going to be manifold. Due to the implementation of GST there is a
transparency and the tax liability will be moving to the consumers only for the quantity
that they had consumed for.” The author says that GST is a real game changer and it
will lead to complete haul of indirect tax system. He says that GST, being new in India,
includes tremendous changes in the various sectors of the economy. According to him,
it will affect all the industries irrespective of a single sector. FMCG segment is the
fourth largest in the Indian economy. For most segments within the FMCG spare, GST
brings good tidings on the back of lower tax incidence when compared to the total tax
paid pre – GST. According to the author’s research, there is high degree of positive
correlation between, before and after GST monthly expenditure
Limitations: The author have given more importance to the goods related to FMCG
sector and not the actual retailers. The kinds of products and consumers’ expectations
from GST. Very less importance is given to the retail shops, the last link in distribution
channel, and the link that deals with consumers directly. Therefore their opinion to be
taken is also very important.
Conclusion: The researcher would like to conclude just as the author has, as he says,
“Retailers are actually expecting some changes in the long term on its implementation
is in its initial stage now. IT driven taxation regime, lesser manual intervention of tax
authorities, positive effect on so many sectors and uniform tax structure, may witness
increase in GDP for Indian economy. So while implementing GST the Government and
officials should ensure the execution of the tax policy should be beneficial for both
consumers and Government.” Therefore, here we conclude that many things like
products, consumer reaction to GST, expectation of consumers, etc. even though it
doesn’t provide much information regarding retailers, it does provide information
regarding fast moving consumer goods. Which undoubtedly is a very important part of
retail business as retailers deal mainly in these kind of goods.
38
Prabha L, Bhuvaneshwari K and Nandida S: ‘Impact of GST on consumer’s

behaviour’
Findings: Reviewing this paper, the researcher comes around the impact of GST on
retail industry which is directly connected to the topic researcher is doing a research on.
According to this, the impacts of GST on retail industry are as follows; reduced taxes,
seamless input tax credit, increased supply and chain efficiency, taxes on gifts and
promotional items and better opportunities and growth of market. The study done by
the author covers the general consumers about the knowledge in the GST regime. The
study covers the consumers and their buying behaviour and the sales performance with
respect to the period after the implementation of GST. According to the author GST is
expected to rationalize and simplify the consumption tax structure at the central and
state level. Further, the author also says that GST will call for fundamental redesigning
of the value chain. The study done by the author brings the pathway to analyse the
buying behaviour of customers and sales performance in registered retail mart to know
the public attitude towards GST. Also according to the author, GST is “a tax on goods
and services with value addition in each stage having comprehensive and continues
chain of set of benefits from the producer’s or sales producer’s point up to retailers level
where only the final consumer should bear the tax”.
Limitations: In this research the author has mainly concentrated on consumers. Though
the author has mentioned some key impacts over retail industry in theory, no analysis
is done over retail industry, mostly, it has been done on the consumer’s awareness on
tax implementation and their expectations with the new tax regime. Regarding the rates
and other details. Therefore, on one hand it does give a theoretical insight on the topic,
it does fail to prove the same.
Conclusion: The author says, “Even though implementation of GST has led to the
growth of economy its rates has to be revised at times when needed based on the
necessities of product 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.” Even the
researcher would like to conclude that the paper was in fact of great use as it talks about
impact of GST on retail industry, and even if it is only theory, it still does help the
researcher to think of the project in a different angle and as the name suggests, the
papers main objective is to study the impact on consumers.
39
R. Rupa (2017): GST in India: An overview
Findings: The major argument put forth for heavy reliance on indirect taxes was that
the India's majority of population was poor and thus widening base of direct taxes had
inherent limitations. But the Indian system of indirect taxation is characterized by
cascading, distorting tax on production of goods and services which leads to hampering
productivity and slower economic growth. There are endless taxes in present system
few levied by Centre and rest levied by state, to remove this multiplicity of taxes and
reducing the burden of the tax payer a simple tax is required and that is Goods and
Service Tax (GST). This paper throws an insight into the Goods and Service Tax
concept, advantages, disadvantages and international scenario. The paper further
answers the questions like, why GST is in the place of present regime? It shows the
brief timeline of GST, models of GST, Advantages and disadvantages of GST, concepts
like how GST will improve ease of starting a business in India, international scenario
and much more.
Limitations: As the name says it is just an overview on GST profile thus no primary
data seems to be collected over here. The author has done this research completely on
the basis of secondary information. But it is never the less a good source to refer to in
case a literal bird view is needed in the project. Another thing that could be noticed is
that the research project does not focus on any specific region or geographic place
thereon. Though not mentioned the research is done on GST as a whole ie, India as a
country. And the researcher is doing a research on a small area, Thane. This therefore
becomes a limitation for the researcher.
Conclusion: “In present regime there are separate laws for separate levy like excise
duty, customs duty, central sales tax, value added tax etc. But in case of GST it is going
to be a broad scheme which subsumes all the laws. The tax compliance is going to be
easy as all the laws are subsumed and only one GST law to be implemented. The four
GST slabs have been set at 5%, 12%, 18% and 28% for different item or services.
Presently the tax is at two points i.e., when the product moves out of fact and other at
the retail outlet. But GST is to be levied at final destination of consumption and not at
various points. This brings transparency and corruption free tax administration.” This
is what the author say that I would like to consider in my project as well.
40
Dr.Veerendra Singh (2018): Impact of GST on retail sector.
Findings: The Indian retail industry is one of the fastest growing industry in the world.
Retail industry in India is expected to grow to US$ 1.3 trillion by 2020, registering a
Compound Annual Growth Rate (CAGR) of 16.7 per cent over 2015-2020. India is the
fifth largest preferred retail destination globally. The country is among the highest in
the world in terms of per capita retail store availability. The Government of India has
introduced reforms to attract Foreign Direct Investment (FDI) in retail industry. The
government has approved 51 per cent FDI in multi-brand retail and increased FDI limit
to 100 per cent (from 51 per cent) in single brand retail. The paper talks about the impact
on taxation part, availability of input tax credit, place of supply in case of retailer,
phasing out of CST and how it will bring changes in supply chain, compliance related
under requirement under GST, transitional challenges for retail sector, drastic change
in agreement with supplier, valuation challenges for retail sector under GST, critical
issues in trade incentive and discounts, how tax rates will play critical role for retail
industry and also whether commodity rates will really come down after GST. The
matters of serious discussions for retail sector mentioned by the author are about gifts
and promotional offers, credit of CST and excise on closing stock, incentives and
discount post supply, free flow of goods across the nation and matching of inward and
outward supply.
Limitations: The limitations of this research that the researcher finds is that this paper
does not focus on a particular area on which the research could be conducted, it talks
overall about retail industry and what impacts did the industry go through due to change
in the taxation system.
Conclusion: At this point of time it becomes important to understand that the concept
of manufacturer, sale, and provision of services will go away and we will have anew
taxable event called supply. GST will be attracted on supply of all goods and services
except alcoholic liquor for human consumption whether for a consideration or even
without consideration in some cases.The researcher would like to conclude that even
though the research paper has limitation it still has a lot to learn and also the fact cannot
be dismissed that the research paper is very much similar to what the researcher is
doing.
41
L. Nandagopal, V. Santhi and B. Laxmidhar (2017): ‘Goods and Service Tax:

Impacts and Challenges’
Findings: Manufacturing and service sector play a pivotal role in shaping the overall
economic growth of a country. Goods and Services Tax (GST) will test the
technological readiness of the GST network, which will be used by almost 10 million
entities, including those who are currently paying service tax, value added tax and
central excise. These entities have multiple users and agents operating on their behalf,
so that the network has a high USER base. It is estimated that about 3 billion invoices
are uploaded on GSTN every month. This reviewed article on GST makes an attempt
to capture its impact during first four months (1st July - 31st October, 2017) on different
manufacturers and service providers, the consumers and the government since its
implementation on 1st July, 2017.The research paper talks about the present structure
of GST, features of Goods and Service Tax, impact of GST on different industrial
sectors (Auto mobile industry, FMCG industry, cement industry, technological
industry, E-Commerce industry, telecom sector, Media and film industry, insurance
sector and transport sector) , impact of GST on consumers (Cuts and prices on goods
and services, uniform prices across the nation, transparency in tax structure, Certain
Goods to become costlier with additional cess and services to be taxed at a higher rate
and better accessibility of goods and services.) , impact on government and challenges
faced by various sectors.
Limitations: There is no primary data used in this paper and thus is not completely
reliable. And also it does not focus on any kind of geographical region.
Conclusion: “Positive Impact: The companies’ savings in logistics and distribution

costs will be phenomenal by eliminating multiple sales depots. The key beneficiaries
are Hindustan Unilever, Colgate Palmolive, GlaxoSmithKline, and Asian Paints.
Negative Impact: If the recommended 40% “sin/demerit” GST for aerated beverages
and tobacco products is levied, then prices may increase by over 20%. Food companies
may witness a boost in effective tax as many companies avail concessional rate of
excise.” The above quoted text would be the most important part of the entire research
paper as it connects directly with the researcher’s topic and throws light on hypothesis
of the project.
42
SaurabhSuman (2017): ‘Study on New GST Era and its Impact on Small
Businesses Entrepreneurs’
Findings: The Indian government's "Make in India" campaign will promote the launch
of GST. this paper based on the survey based on the effect of the implementation of
GST on the SMEs in which the problems associated with the GST will be primaries and
it was concluded that a lot of people were still unable to understand the working of GST
and they have to make understand their customer also most of the youngsters believe
that with time all the problems were automatically solved and the fair face of GST will
always profitable to everyone. The research paper talks about the salient features of
GST, Small and Medium Enterprises (SMEs), Positive impact of GST (ease of starting
business, elimination of distinction between goods and services, improved logistics and
faster delivery of services, market expansion, reduction of tax burden on new
businesses, removal of multiple taxation), negative impact of GST (registration woes,
concept of ‘casual taxable person’, composition levy mechanism is very restrictive, the
draconian reverse charge mechanism, technological challenge, working capital
blockage, harsh mechanism of ‘input tax credit’, compliance rating, added compliance
for exports and challenges for SMEs.
Limitations: The researcher observes that the research paper reviewed does not show
any thing about the FMCG Industry or Retail Industry, however it does show about the
supply chain and thus can be very helpful for the researcher in the project. The other
limitation that the researchers encounters is that it does not mention any thing about
geographical boundaries that is it does not focus on a particular area.
Conclusion: “Unarguably, GST rollout will open up a can of worms and the impact on
SMEs across various industries will vary greatly. It is quite natural for a pervasive,
country-wide tax reform, as GST is, to have a mixed opinion. Furthermore, the
revolutionary tax regime will have acceptance that will vary from state to state. Overall,
the new tax proposals under GST will have a mixed verdict. In essence, the GST’s
effect on the entire Indian economy will have to be scrutinized in totality to reach a
widely accepted conclusion.” This is what the author has concluded in their project.
And even the researcher would like to conclude that even though there are limitations,
it can be very well used for citing important information.
43
Girish Garg (2014): ‘Basic concepts and features of goods and service tax in India’
Findings: This paper is an analysis of what the impact of GST (Goods and Services
Tax) will be on Indian Tax Scenario. Here stated with a brief description of the
historical scenario of Indian taxation and its tax structure. Then the need arose for the
change in tax structure from traditional to GST model. GST has been discussed in detail
in this paper as the background, silent features and the impact of GST in the present tax
scenario in India. GST is the only indirect tax that directly affects all sectors and
sections of our economy. Ignorance of law is no excuse but is liable to panel provisions,
hence why not start learning GST and avoid the cost of ignorance. The goods and
services tax (GST) is aimed at creating a single, unified market that will benefit both
corporate and the economy. The changed indirect tax system GST (Goods and service
tax) was planned to execute in India. Several countries implemented this tax system
followed by France, the first country introduced GST. The author was sure that since
India is a centralized democratic, therefore the GST will be implemented parallel by
the central and state governments as CGST and SGST respectively and the objective
will be to maintain a commonality between the basic structure and design of the CGST
and SGST between states. In this article, the author have started with the introduction,
in general of GST and have tried to highlight the objectives the proposed GST is trying
to achieve. Thereafter, the author has discussed the possible challenges and threats; and
then, opportunities that GST brings before us to strengthen our free market economy.
Limitations: Since the paper is made before the implementation or execution of GST,
only on the basis of assumptions, the concept of GST is not quite clear here. Though
the author has done a very good job making and analysing the then political, economic
and market scenario, it just doesn’t seem to fit in the current situation.
Conclusion: Some dialogues of the author like, “Despite of the economic slowdown,
India's Fast Moving Consumer Goods (FMCG) has grown consistently during the past
three – four years reaching to $25 billion at retail sales in 2008. Implementation of
proposed GST and opening of Foreign Direct Investment (F.D.I.) are expected to fuel
the growth and raise industry's size to $95 Billion by 2018” (for FMCG sector) and
“Small scale units manufacturing specified goods are allowed exemptions of excise up
to Rs.1.5 Crores. These units may be required to register for payment of GST, may see
this as an additional cost.” (For small enterprises)
44
Lourdunathan F, Xavier P: A study on implementation of goods and services tax

(GST) in India: Prospectus and challenges
Findings: There are mixed response, inexplicit, arguments and opinions among the
Manufactures, traders and society about the Goods and Services Tax (GST) to be
implemented by Government of India from 1st April 2017 this year. Various news
organizations from all around the world focused on the bill unifying the country and it
being an achievement of the government. As the Goods and Services Tax Bill was
passed in the Rajya Sabha, it also brought India at the centre of the global economy.
With the passing of the bill, many international newspapers published their views on
how the GST Bill brings a new wave of economic reform in the country. The paper
highlights the background, Prospectus and challenges in Implementation of Goods and
services Tax (GST) in India. Finally, the paper examines and draws out a conclusion.
It also throws light on the subjects like Indian taxation system, constitutional
amendment act (for GST), challenges in implementing GST, prospects of implementing
GST and some more
Limitations: Just like the earlier paper, this one too has been written and published
before the implementation of GST, and thus is not completely reliable but then at the
same time is a great source for reviewing and knowing about the facts of goods and
service tax in more detail.
Conclusion: “It can be concluded from the above discussion that GST will bring One
Nation and One Tax market. Provide relief to producers and consumers by providing
wide and comprehensive coverage of input tax credit set-off, service tax set off and
subsuming the several taxes. Efficient formulation of GST will lead to resource and
revenue gain for both Centre and States majorly through widening of tax base and
improvement in tax compliance. It can be further concluded that GST have a positive
impact on various sectors and industry. Although implementation of GST requires
concentrated efforts of all stake holders namely, Central and State Government, trade
and industry. Electronic processing of tax returns, refunds and tax payments through
‘GSTNET’ without human intervention, will reduce corruption and tax evasion. Built-
in check on business transactions through seamless credit and return processing will
reduce scope for black money generation leading to productive use of capital/
45
3.3 OTHER LITERATURE
Sony Pandey, Tax Researcher at H & R Block India (December 24, 2017): The new
tax regime has made the market go up in the shortest time by boosting the FMCG
Industry and bringing in different benefits to the economy. All the major players in the
Industry have welcomed GST with open arms. However, few firms in the sector are
diversely affected by the tax rate charged on their products.
Radhika Merwin, The Hindu Editor, (June 25, 2017): For most segments within the
FMCG space, GST bring good tidings on the back of lower tax incidence when
compared to the total tax paid pre-GST – In particular, house hold/ personal care
segment is likely to gain the most, with lose to 5-7 percentage point reduction in indirect
taxation with GST rates on each of these products fixed at a lower 18percent, companies
with this space are likely to gain.
SanketDhanorkar, Economic Times Bureau,(May 29.2017): Impact of GST on

FMCG firs will depend on their product mix, given that the tax rules have gone up for
some products and have fallen for others. The FMCG companies, whose tax incidence
has come down under the GST regime, are likely to pass it on to the consumers in the
form of lower prices. Manufactures will have to pass on the higher tax incidence of
some products placed under highest tax slab of 28%, to consumer in the form of higher
prices of these goods.
Ehtisham Ahmed and Satya Poddar (2009): studied “Goods and Service Tax
Reforms and Inter-governmental Consideration in India” and found that GST
introduction will provide simple and transparent tax system with increase in output and
productivity of economy in India. But the benefits of GST are critically dependent on
rational design of GST.
Dr. R. Vasanthagopal (2011): studied “GST in India: A Big Leap in the Indirect
Taxation System” and concluded that switching to seamless GST from current
complicated indirect tax system in India will be a positive step in booming Indian
economy. Success of GST will lead to its acceptance by more than 130 countries in
world and a new preferred form of indirect tax system in Asia also.
Jana V. M., Sharma and V Bhaskar (2012): studied “The Road Map for
implementation of Goods and Service Tax”. He found that the steps to be undertaken
46
to implement the comprehensive tax system i.e., GST. The authors have thrown light
on the constitutional amendment required for the implementation of GST in India.
Syed Mohd Ali Taqvi (2013): studied “The challenges and opportunities of Goods and
Service Tax in India.” He explained that GST is only indirect tax that directly affects
all sectors and sections of our country. It is aiming at creating a single, unified market
that will benefit both corporates and economy. He also explained the proposed GST
model will be implemented parallel by the central and state governments as Central
GST and State GST respectively.
AgogoMawuli (2014): studied “Goods and Service Tax-An Appraisal” and found that
GST is not good for low-income countries and does not provide broad based growth to
poor countries. If still these countries want to implement GST then the rate of GST
should be less than 10% for growth.
Jaiprakash (2014): in his research study mentioned that the GST at the Central and the
State level are expected to give more relief to industry, trade, agriculture and
consumers through a more comprehensive and wider coverage of input tax set-off and
service tax setoff, subsuming of several taxes in the GST and phasing out of CST.
Responses of industry and also of trade have been indeed encouraging. Thus GST offers
us the best option to broaden our tax base and we should not miss this opportunities to
introduce it when the circumstances are quite favourable and economy is enjoying
steady growth with only mild inflation.
Nitin Kumar (2014):studied “Goods and Service Tax-A Way Forward” and concluded
that implementation of GST in India help in removing economic distortion by current
indirect tax system and expected to encourage unbiased tax structure which is
indifferent to geographical locations.
Nishitha Gupta (2014): in her study stated that implementation of GST in the Indian
framework will lead to commercial benefits which were untouched by the VAT system
and would essentially lead to economic development. Hence GST may usher in the
possibility of a collective gain for industry, trade, agriculture and common consumers
as well as for the Central Government and the State Government.
SaravananVenkadasalam (2014): analysed the post effect of the goods and service
tax (GST) on the national growth on ASEAN States using Least Squares Dummy
47
Variable Model (LSDVM) in his research paper. He stated that seven of the ten ASEAN
nations are already implementing the GST. He also suggested that the household final
consumption expenditure and general government consumption expenditure are
positively significantly related to the gross domestic product as required and support
the economic theories. But the effect of the post GST differs in countries. Philippines
and Thailand show significant negative relationship with their nation’s development.
Meanwhile, Singapore shows a significant positive relationship.
Shefali Dani (2015): has suggested that GST administration is an irresolute endeavour
to legitimize backhanded expense structure. Roughly more than 150 nations have
executed GST idea. The legislature of India must examination the GST administration
set up by different nations and furthermore their aftermaths previously actualizing GST.
IT is the need of hour that, the legislature must make an endeavour to protect the huge
poor populace of India, against the expansion because of execution of GST. GST will
disentangle its current roundabout duty framework and should expel wasteful aspects
made by the current heterogeneous expense framework, just if there is a reasonable
agreement over issues of edge constrain, income rate, and incorporation of oil based
commodities, power, alcohol and land.
Srinivas K. R (2016): in his article “Issues and Challenges of GST in India” mentioned
that central and state governments are empowered to levy respective taxes as per the
Indian constitution which is likely to change the complete scenario of present indirect
taxation system. GST will be a compressive indirect tax structure on manufacture, sales
and consumption of goods and services throughout India, to replace the various indirect
taxes levied by the both the governments.
Poonam (2017): in her study cleared that in the system of indirect taxation GST plays
a very important role. The cascading and double taxation effects can be reduced by
combing central and state taxes. Consumer’s tax burden will approximately reduce to
25% to 30% when GST is introduced and then after Indian manufactured products
would become more and more inexpensive in the domestic and international markets.
This type of taxation system would directly encourage economic growth. GST with its
transparent features will prove easier to administer.
AkanshaKhurana and Aastha Sharma (2016): concluded in their research article

“Goods and Services Tax in India- A positive reform for indirect tax system” that GST
48
will provide relief to producers and consumers by proving wide and comprehensive
coverage of input tax credit set-off, service tax set-off and subsuming the several taxes.
Further concluded that GST has a positive impact on various sectors and industry.
Pradeep Chaurasia et.al (2016): analysed in the paper “Role of Goods and Services
Tax in the growth of Indian Economy” and found that GST will be helpful for the
development of Indian Economy as well as it will be very much helpful in improving
the GDP of the country more than two percent.
Monika Sehrawat and UpasanaDhanda (2015): focused in their research paper

entitled “GST in India: A key tax reform” that a simple, user- friendly and transparent
tax system is required in present India which can be fulfilled by implementation of
GST. They also concluded that introduction of GST will lead to higher output, more
employment opportunities and flourish GDP by 1-1.5%.
Pinki, Supriyakamma and RichaVerma (2014): concluded in their research paper

named “Goods and Services Tax—panacea for indirect tax system in India” that the
NDA government in India is more interested towards implementation of GST and it is
beneficial for the both of central and State governments and as well as for consumers
in long run if its implementation is backed by strong IT structure.
HamdaniRizwana (2016): focused in his paper “GST and Indian Economy” that
implementation of GST will increase the job opportunities and this lead to stability in
the country, which is the most important requirement for development of an economy.
Raj Kumar (2016): highlighted the impact of GST on Indian Economy with a
comparison between GST and Current taxation system. In addition he concluded that
after implementation of GST, manufacturer, whole seller and retailer can be easily
recovered input taxes in form of tax credits.
Dr.BanamaliNath (2017): FMCG sector is the major taxation contributor in the

economy of a country. It consists 50% Food and Beverage sector and 30% is Household
and Personal Care. The multiplicity of the taxation leads to the company’s decision on
manufacturing location and distribution of goods by keeping in mind to avail tax
benefits. Thus implementation of GST will really influenced on FMCG sector and
ultimately it will impact on the economy of our country.
49
NidhiParashar, Deepa Joshi, P. K. Chopra (2017): in “Exploring the influence of

transition to GST on consumer behaviour related to FMCG in India.” says that
‘Imposition of taxes may affect buying decision of consumers. VAT is imposed on
goods which includes FMCG category also and buying decision of such goods require
less of efforts. GST will replace the present regime in India soon .The question of
interest that whether it will influence buying decision of consumers of FMCG category
has been explored with VAT regime which has the same system of staged tax collection
that GST will have. The study found that people are aware about the tax they pay on
purchase of commodities but are not much interested in giving importance to such tax
on their purchase of FMCG. However they recognise proper billing helps to decide
accountability of tax compliance. Transition to VAT from sales tax has not affected the
buying decision and same can be expected about GST as the tax regime will be based
on staged collection of tax. It was found that people do not give much importance to
invoice based purchases. In It would be in the interest of better revenue collection that
for GST regime awareness programmes focusing on consumers should be conducted
so that invoice based purchasing practices are promoted and GST regime turns out to
be not only comprehensive but also revenue productive.’
Manveer Kaur Mann (2011): in ‘Accessing opportunities in apparel retail sectors in

India: Porter's diamond approach’ says that “India has traditionally been a suppressed
market due to many trade restrictions. As a result, Indian consumers have had very few
choices in apparel and almost all other categories of consumer goods. However, the
Indian retailing industry has recently undergone dramatic changes, due to the 2006 trade
liberalization in retail sectors along with rapid economic development and emerging
consumer groups with market power.”
Nishita Gupta (2011): in ‘goods and service tax: its impact on Indian economy’ says
that “Manufacturing sector in India is one of the highly taxed sectors in the world. A
complex and high taxation structure has the tendency to render products uncompetitive
in the international market or consume large portions of the cost arbitrage available in
manufacturing set-ups in low cost economies such as India. GST when enforced would
eliminate complexities in the present taxation structure and consequently prevent the
loss of nearly 50% of the advantage of lower manufacturing costs that India has over
the western nations. “A well-designed GST is the most graceful method to get rid of
50
distortions of the existing process of multiple taxation" Sanjay Pant, Commissioner

Service Tax, Bangalore”
Dr. Santosh Kumar Tripathi: in ‘goods and service tax: benefit for small retailers’
says that “There are many more advantages of GST on retail sector under the new GST
laws and it would be a great boost for the retail sector as the policies and taxation would
be streamlines under one head. The businesses would flourish more contributing to the
growth of the retail industry and in turn of the economy as they would be able to carry
out the activities without any hindrances, more freely, and be able to expand the
business into different states without worrying about the additional costs. The supply
chain will benefit tremendously as the cost of transport and warehousing will reduce
under the new GST laws and help the retailers scale their profits, which could also lead
to reduced prices for the final consumer over a period of time. The retailer can directly
pay the taxes online and will not have to go through a middleman.”
Milandeep Kaur, Kajal Chaudhary, Surjan Singh, Baljindar Kaur (2016): in ‘a

study on impact of GST after its implementation’ say that “The GST System is basically
structured to simplify current Indirect Tax system in India. A well designed GST is an
attractive method to get rid of deformation of the existing process of multiple taxation
also government has promised that GST will reduce the compliance burden at present
there will be no distinction between imported and Indian goods and they would be taxed
at the same rate. Many Indirect Taxes like Sales Tax, VAT etc., will be finished because
there will be one tax system i.e. GST, that will reduce compliance present burden. GST
will face many challenges after its implementation and will result to give many benefits.
In overall through this study we conclude that GST play a dynamic role in the growth
and development of our country.”
51
Chapter number Four
Company profile
52
4.1BRIEF PROFILE ON GST
GST (Goods and Services Tax) is the biggest indirect tax reform of India. GST is a
single tax on the supply of goods and services. It is a destination based tax. GST has
subsumed taxes like Central Excise Law, Service Tax Law, VAT, Entry Tax, Octroi,
etc. GST is one of the biggest indirect tax reforms in the country. GST is expected to
bring together state economies and improve overall economic growth of the nation.
GST is a comprehensive indirect tax levy on manufacture, sale and consumption of

goods as well as services at the national level. It will replace all indirect taxes levied on
goods and services by states and Central. Businesses are required to obtain a GST
Identification Number in every state they are registered.
There are around 160 countries in the world that have GST in place. GST is a
destination based taxed where the tax is collected by the State where goods are
consumed. GST has been implemented in India from July 1, 2017 and it has adopted
the Dual GST model in which both States and Central levies tax on Goods or Services
or both.
SGST – State GST, collected by the State Govt.
CGST – Central GST, collected by the Central Govt.
IGST – Integrated GST, collected by the Central Govt.
UTGST – Union territory GST, collected by union territory government
GST was needed in India because:
Introduction of GST is considered to be a significant step in the reform of indirect

taxation in India. Amalgamating of various Central and State taxes into a single tax
would help mitigate the double taxation, cascading, a multiplicity of taxes,
classification issues, taxable event, etc., and leading to a common national market.
VAT rates and regulations differ from state to state. On the other hand, GST brings in
uniform tax system across all the states. Here, the taxes would be divided between the
Central and State government.
53
GSTN and its role in GST regime:
GSTN stands for Goods and Service Tax Network. A special purpose vehicle called
GSTN has been set up to cater the needs of GST. The GSTN shall provide a shared IT
infrastructure and service to Central and State Governments, tax payers and other
stakeholders for implementation of GST. The functions of GSTN would, inter alia,
include:
 Facilitating registration;
 Forwarding the returns to State and Central authorities;
 Computation and settlement of IGST;
 Matching the tax payment details with banking network;
 Providing various MIS reports to the Central and State Governments based on
the tax payer return information;
 Providing analysis of tax payers’ profile; and
 Running the matching engine for matching, reversal and reclaim of input tax
credit.
The GSTN is developing a common GST portal and application for registration,
payment, return and MIS reports. The GSTN would be integrating the common GST
portal with the existing tax administration IT systems and would be building interfaces
for tax payers.
GST Council and its role:
The Constitution was notified to come in force w.e.f. 12.09.2016, the President of India
constituted the GST Council. The personnel in GST Council are, Chairperson (The
Union Finance Minister), Member (The Union Minister of State in charge of revenue
or finance), Vice-Chairperson. The role of GST Council is,
 The taxes, cesses and surcharges levied by the Union, the States and the local
bodies which maybe subsumed in the Goods and Service Tax;
 The goods and services that may be subjected to, or exempted from the goods
and services tax;
54
 Model goods and service tax laws, principles of levy, apportionment of Goods
and Service Tax levied on supplies in the course of inter-state trade or
commerce u/a 269A and the principles that govern the place of supply;
 The threshold limit of turnover below which goods and services may be
exempted from goods and services tax;
 The rates including floor rates with bands of goods and service tax;
 Any special rate or rates for a specified period, to raise additional resources
during any natural calamity or disaster;
 A special provision with respect to the states of Arunachal Pradesh, Assam,
Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim,
Tripura, Himachal Pradesh and Uttarakhand; and
 Any other matter relating to the goods and services tax, as the council may
decide.
Assessment of Goods and Service Tax:
Every person registered under the Act shall himself assess the tax payable by him for a
tax period and after such assessment he shall file the prescribed return.
Returns:
Every person registered under GST will have to file returns in one way or other. A
registered person will have to file returns either monthly or quarterly basis. An ISD will
have to file monthly returns showing details of credit distributed during the particular
month. A person required to deduct tax and a person required to collect tax will also
have to file monthly returns showing the amount deducted or collected and other details
as may be prescribed. A non-resident taxable person will also have to file returns for
the period of activity undertaken.
GST in retail industry:
This part of my article will discuss some of the serious issues in model GST law which
needs immediate attention of authorities in a summary manner:
1. Gift and promotional offers: Looking at the international practices in Europe and
other countries gift, free samples should not be included in the definition of supply to
avoid business promotion strategy of taxable persons. If this is not possible exemption
55
must be granted up to a certain limit say 20000 or so and this is internationally followed
in some of the countries
2. Credit of CST and excise on closing stock: Stock lying on the date of transition will
contain portion of excise duty which is a cost for the entire retail sector. When the same
stock will be sold in GST regime the output tax will be higher which will become cost
for the industry. If amicable solution is not given it may lead to a stock out situation
which is not expected from such a big reform. Industry must make an attempt to
convince Govt. to allow at least a deemed credit on account of excise and CST.
3. Incentives and discount post supply: As envisaged under GST discount will become
part of transaction value unless it is linkedwith the relevant invoices. In case of yearend
target discounts it cannot be linked with the invoices hence this provision should be
relooked and a suitable solution must be provided for the same.
4. Free flow of goods across the nation: GST is designed with the theme of free flow of
goods across the nation without any kind of barriers such as check post etc. to check
the documents accompanied with goods vehicle. If we go through the model GST law
certain documents may be prescribed by Govt. if value of consignment exceeds
Rs.50000. Such kinds of provisions should not be there in GST to avoid corruption and
other consequences.
5. Matching of inward and outward supply: On the basis of process note released by
Govt. on GST return a matching will be carried out by GSTN on the next day of filing
GST return in form GSTR-3. In case of retail industry especially FMCG sector the
number of suppliers will be many more and tracking of mismatch on pan India basis
will become herculean task. In our opinion such kinds of draconian provisions should
not become part of law in times to come.
The table on the next page shows the remaining information regarding various aspects
of GST in an easily understandable manner:
Table no.1.4
Central GST State GST Union Integrated

CGST SGST Territory GST
GST IGST
56
UTGST
Tax Levied Central State Union Combined

By Government Government Territory Levy,
Government Collected by
Central
Government
Taxes that it Service tax, VAT, sales VAT, sales Central Sales
will replace excise duty, tax, luxury tax, tax, luxury tax, Tax (CST)
countervailing entry tax, entry tax ,
duty (CVD), entertainment entertainment
special tax, purchase tax, purchase
additional duty tax, Octroi, tax, Octroi,
(SAD), taxes on taxes on lottery
Additional lottery
duties of
excise(ADE),
and any other
indirect central
levy.
Applicability Supplies Supplies Supplies Interstate
Within a State within a state within a union supplies and
Territory import
Input Tax Against CGST Against SGST Against Against
Credit and IGST and IGST UTGST and CGST, SGST
IGST and IGST
Tax Revenue Central State Union Shared
Sharing Government Government Territory between
Government Central and
State
Government
57
Exemption Rs.20 lakh Rs.20 lakh Rs.20lakh Exemption

limit annual annual annual limit not
turnover turnover turnover defined
Composition The dealer may The dealer The dealer Composition
Scheme use the benefit may use the may use the Scheme is not
of turnover of benefit of benefit of available in
Rs.50 lakh turnover of turnover of this regard
Rs.50 lakh Rs.50 lakh
Free Supplies CGST is SGST is UTGST is IGST is
applicable on applicable on applicable on applicable on
free supplies free supplies free supplies free supplies
Registration Not applicable Not applicable Not applicable Not applicable
till the turnover till the till the till the
exceeds Rs.20 turnover turnover turnover
lakh exceeds Rs.20 exceeds Rs.20 exceeds Rs.20
lakh lakh lakh
GST Explained with the Help of Examples.
2. Let’s assume that a manufacturer of shirts buys raw materials like cloth, zips,
thread, buttons and other equipment that is required to stitch the pants. This raw
material costs the manufacturer Rs.200. This Rs.200 includes a 10% tax of
Rs.20. Once the shirt is made, the manufacturer has added his own value to the
input material. As a part of this example, if one were to assume that the value
added is Rs.60, then the total cost of the trouser is now Rs.260 (Rs.200 + Rs.60).
With a 10% tax rate, the tax on this trouser would be Rs.26. However, since the
manufacturer has already paid Rs.20 as tax while purchasing raw material,
under GST, the tax incidence will now be only Rs.6 (Rs.26 – Rs.20).
Now, let’s see how GST works at the second stage, which is for the wholesaler.
Now, the wholesaler would buy the shirts at Rs.260 and would keep a margin
on it to make a profit. Assuming that the margin is kept at Rs.40, the cost of the
clothing item now becomes Rs.300. Applying the same 10% principle, the tax
would amount to Rs.30. But, out of this Rs.30, Rs.26 are already accounted for
58
from stage one. So the effective tax incidence for the wholesaler would be Rs.4
(Rs.30 – Rs.26).
The final stage is that of the retailer. Now that the retailer has bought the shirts
at Rs.300, he would also keep a profit margin. Say the margin that the retailer
decides on is Rs.20. The total cost now becomes Rs.320. Using the 10% rule,
the tax would be Rs.32. However, with Rs.30 already accounted for in the earlier
two stages, the tax incidence would be Rs.2 (Rs.32 – Rs.30). To sum up, the
total GST for the entire chain, from manufacturer to retailer is Rs(20 + 6 + 4 +
2 = 32). The suppliers of inputs would be able to claim no tax credit, given the
fact that they have themselves not purchased any item.
3. Assuming the GST is kept at 5% then for Company XYZ (P) ltd, following
scene arises.
XYZ ltd.
Material Manufacturing Profit Final cost
cost
100000 20000 30000 115000+20000+30000-
165000
TAX @5% No tax No tax No tax
- 5000
FROM 8,250 TAX 5,000 IS ALREADY PAID HENCE REMAINING TAX
IS 3,250
Hence Double taxation was avoided for XYZ pvt ltd. When the taxation is
simplified and compliance is improved it will result in better revenues. The
manufacturing states like Maharashtra, Haryana, and Punjab are unhappy due
to the replacement of the existing taxes with the GST which will lead to a
revenue loss for the states. In this regard it has been decided to compensate the
state for anykind of revenue loss up to 5 years. 100% of loss in 3 years, 75% in
4th year and 50% in the 5th year will be compensated. The targeted impact of
GST is the Goal of Double Digit Economic Growth.
59
Chapter number Five
Data Analysis, Interpretation and Presentation
60
4.1 Introduction to data analysis and interpretation.
Data analysis is a process of inspecting, cleansing, transforming, and modelling data

with the goal of discovering useful information, informing conclusions, and supporting
decision-making. Data analysis has multiple facets and approaches, encompassing
diverse techniques under a variety of names, while being used in different business,
science, and social science domains. In today's business, data analysis is playing a role
in making decisions more scientific and helping the business achieve effective
operation.
Data Interpretation refers to the task of drawing inferences from the collected facts after
an analytical and/or experimental study. It is a search for broader meaning of research
finding. Interpretation is the device through which the factors that seem to explain what
has been observed b researcher in the course of the study can be better understood and
it also provides a theoretical conception which can serve as a guide for further
researchers
Presentation of data refers to the organisation of data into tables, graphs or charts, so
that logical and statistical conclusions can be derived from the collected measurements.
It may be presented in three methods viz. textual, tabular or graphical. In textual
presentation, the data gathered are presented in paragraph form, data are written and
read, it is a combination of texts and figures. Tabular presentation is a method of
presenting data using the statistical table, a systematically organization of data in
columns and rows. There are different kinds of graphs and diagrams, bar graph is used
to show relationships/comparison between groups, pie or circle graph shows
percentages effectively, line graph is most useful in displaying data that changes
continuously over time, pictograph or pictogram uses small identical or figures of
objects called isotopes in making comparisons. Each picture represents a definite
quantity.
Importance of data analysis, interpretation and presentation
 Data analysis helps in structuring the findings from different sources of data.
 Data analysis is very helpful in breaking a macro problem into micro parts.
61
 Data analysis acts like a filter when it comes to acquiring meaningful insights out
of huge data set.
 Data analysis helps in keeping human bias away from the research conclusion with
the help of proper statistical treatment.
Data analysis is a process used to inspect, clean, transform and remodel data with a
view to reach to a certain conclusion for a given situation. Data analysis is typically of
two kinds: qualitative or quantitative. The type of data dictates the method of analysis.
In qualitative research, any non-numerical data like text or individual words are
analysed. Quantitative analysis, on the other hand, focuses on measurement of the data
and can use statistics to help reveal results and conclusions. The results are numerical.
In some cases, both forms of analysis are used hand in hand. For example, quantitative
analysis can help prove qualitative conclusions.
In this chapter, data is analysed with some tools like pie charts, tables, etc. this chapter
is basically to analyse and interpret the primary data collected by the researcher. All the
data is arranged properly in an understandable manner and put up in the form of tables
and charts. The more the data is the more accurate our results are assumed to be. This
chapter is the most important one in this research project because it is a project with
hypothesis and would need a proof to reject or accept the hypothesis. That is what this
chapter is going to do. Formulate the proofs to prove our hypothesis right. And if not
proving it right, it would probably reject it. But in both the cases, it stays of equal
importance.
The primary data is collected through the questionnaires and then presented it in this
project through methods like;
 Bar graphs
 Pie charts
 Tabular presentations
And after converting the overall data in the forms mentioned above, that data is
interpreted and a certain conclusion or outcome is brought forward. This conclusion
will help us decide the answer to the problem statement of our project.
The analysis is mainly divided into two parts:
 The analysis of the demographic questions in the questionnaire and
62
 The analysis of the actual primary data (main questions in the questionnaire
prepared)
4.1 ANALYSIS ON THE BASIS OF DEMOGRAPHIC QUESTIONS
Location of the retail shop:
Tabular representation:
Table number 4.1
Secto 1 2 3 4 5 6 7 8 9 10 11 13 15 16 17
r
numb
er
Num 1 2 1 1 1 1 1 3 1 2 1 1 1 1 1
ber of
sampl
es
Perce 4. 9. 4. 4. 4. 4. 4. 14. 4. 9. 4. 4. 4. 4. 4.
ntage 8 5 8 8 8 8 8 3% 8 5 8 8 8 8 8
% % % % % % % % % % % % % %
Graphical presentation
Chart 4.1
Location of the retail shops
Interpretation:
The above figure is of a simple bar graph where on the X axis, there number of retail
shops is covered and on the Y axis, the sector wise distribution is being done. Here the
data is collected from Airoli region and is divided into 20 sectors, from the above chart
63
we can say that while only one sample is collected from most of the sectors, 2 samples
are selected from sector 10 and sector 2 and 3 samples are selected from sector 8
Designation of the respondent:
Question:
What is the designation of the respondent?
o Owner
o Worker
o Other
Tabular presentation:
Table number 4.2
Designation Owner Worker Other

Total samples 20 0 1
Percentage 90.5% 0% 9.5%
Graphical presentation:
Chart number 4.2
Designation of the respondent
Interpretation:
A pie diagram is prepared to make us understand the designation of the respondent.

Here, the blue colour represents the owners, red colour represents the workers and
yellow colour represents the other, which in this case is a family member, who was
64
watching the shop for a while. Since the retail shops the researcher has visited are small,
they are mostly run by the owners itself.
Commencement of the shop:
Question:
When was the shop started?
o Before GST
o After GST
Table 4.3
Commencement After GST Before GST

Responses 6 15
Percentage 28.6% 71.4%
Chart 4.3
Commencement of business
Interpretation:
In the above chart is a pie diagram of the retail shops opened before the implementation
of GST or was it started after the implementation of GST? In the above diagram blue
colour represents the shops commenced before the GST was implemented and red
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colour represents the no. of shops commenced after the implementation of GST.So the
result shows that most of the shops have been commenced after the implementation of
GST.
Status on registration with GST
Question:
Have you registered yourself under GST?
o Yes
o No
o Maybe
Table number 4.4
Status Yes No Maybe

Number of 15 4 2
responses
Percentage 71.4% 19% 9.6%
Chart number 4.4
Status on registration
Interpretation: The above graphical figure is a pie chart showing the status of
registration. While asking the question, the respondents were given three options which
were yes, no and maybe. In the pie diagram, the blue colour represents the respondents
66
saying yes which, are 71.4% of the total population, red colour represents the
respondents saying no, which are 19% of the total population and yellow colour
represent the respondents saying maybe, which are 9.5% of the total population.
4.2 ANALYSIS ON THE BASIS OF CORE RESEARCH QUESTIONS
Involvement of the outside party
Question one:
Do you take help of any outside party for dealing with GST?
o Yes
o No
o Maybe
Table 4.5
Involvement of Yes No Maybe

party?
Responses 8 8 2
Percentage 44.4% 44.4% 11.2%
Chart 4.5
Interpretation:
In the graphical chart above is a pie diagram. While asking the question regarding it, 3
options were given to the respondents to choose from which were, yes, no and maybe.
67
Out of which 44.4% of the total population chose yes(blue), 44.4% of the total
population chose no(red) and the rest of 11.1% of the total population chose
maybe(yellow).
Question two:
If yes, who do you consult to?
o Tax consultant
o Agent
o Someone in relation
o Other
Table 4.6
Consulted Tax consultant Agent Someone in Other

party relation
Responses 4 6 3 2
Percentage 26.7% 40% 20% 13.3%
Chart 4.6
Consulted party
Interpretation:
In the above graphical figure is a pie diagram. Here the people who have responded yes
to the previous question are expected to answer this one. So, we come to know that
68
26.7% of the respondents take help of the tax consultants, 40% of them take help of the
agents, 20% of them take help of their relatives and among others some of them
takehelp of CAs.
Registration and documentation
Question one:
Did you have a clarity regarding the process of GST when you registered yourself?
o Yes
o No
Table 4.7
Options Yes No
Responses 10 9
Percentage 52.6% 47.4%
Chart 4.7
Clarity of process
Interpretation:
The above chart is a graphical presentation of the data in a form of a pie diagram. so
we come to know that 52.6% of the total respondents have the clarity of the process as
in how the GST process takes place and 47.4% of them have no idea how the process
takes place. The researcher assumes that the ignorance or the unavailability of this
69
knowledge could be because they have consulted someone to carry their processes and
do not want to waste their time in knowing something that is going great without them
knowing.
Question two:
Do you face any problem regarding the documentation for GST?
o Yes, a lot
o Yes, a little
o No, not at all.
Table 4.8
Options Yes, a lot Yes, a little No, not at all

Responses 3 9 5
Percentage 17.6% 52.9% 29.4%
Chart 4.8
Problems due to documentation
Interpretation:
The above graphical chart is made by the researcher from the data collected regarding
the problems faced by the retail shop owners due to the documentation for GST, if any,
and is presented in the form of a pie chart. For this the respondents were asked to select
any one of the three option and 53% of the respondents replied that they have a little
70
problem with the documentation required for GST (red), 29% of the respondents replied
that they have no problems with the documentation (yellow) and 18% says they
struggle a lot due to complications in documentation (blue).
Question three:
Did you face any trouble regarding the registration of GST?
o Yes, a lot
o Yes, a little
o No, not at all
Table 4.9

Responses 2 11 4
Percentage 11.8% 64.7% 23.5%
Chart 4.9
Trouble during registration
Interpretation:
In the above graphical chart, the data collected by the researcher regarding the troubles
that the retail shop owners have to go through are presented in the form of a pie diagram.
Where 11.8% of the retailers responded that they had to go through with a lot of
71
problem, 64.7% of them responded that they had to go through with a little problem
and 23.5% of them say that they had no problem while registering themselves.
Online/offline
Question one:
Do you pay your GST online or offline?
o Online
o Offline
o No idea
Table 4.10
Payment of GST Online Offline No idea

Responses 10 5 2
Percentage 58.8% 29.4% 11.8%
Chart 4.10
Form of payment
Interpretation:
In the above graphical chart, the data collected by the researcher as to what way of
operations is adopted by the retailers is analysed and presented in the form of pie
72
diagram. It is found that 58.8% of the respondents follow online procedure, 29.4% of
the respondents make their payments through offline procedure and the remaining
11.8% of the respondents have no idea how their tax procedures are being done.
Question two:
Do you face problems due to online processes in GST?
o Yes, a lot
o Yes, a little
o No, not at all
Table 4.11
Problems due to Yes, a lot Yes, a little No, not at all

online processes?
Responses 1 10 6
Percentages 5.9% 58.8% 35.3%
Chart 4.11
Problems due to online processes
Interpretation:
In the graphical chart, the data collected by the researcher regarding the problems due
to online processes in the form of pie diagram. Here the researcher finds that 5.9% of
the total respondents faces a lot of problem due to online processes, 58.8% of the total
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respondents faces few problems due to online processes and 35.3% of total respondents
face no problems at all. So it the interpretation says that most of the respondents say
that they have faced few problems due to online processes in goods and service tax.
Input Tax Credit
Question one:
Do you claim ITC?
o Yes
o No
o Maybe
Table 4.12
ITC? Yes No Maybe

Responses 5 2 10
Percentage 29.4% 11.8% 58.8%
Chart 4.12
Input Tax Credit
Interpretation:
In the above graphical chart, the researcher has collected and presented regarding the
input tax credit in the form of a pie diagram. And we get to know that the major portion
of the population does not know that they can in fact actually claim ITC. Which in
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percentage is 58.8% of the total respondents. 29.4% do claim an ITC and 11.8% have
no idea if they do.
Question two:
What is your experience dealing with input tax credit?
Table 4.13
Experience 1 2 3 4 5
(very (poor) (average) (good) (very
poor) good)
Responses 0 0 11 4 1
Percentage 0% 0% 68.8% 25% 6.3%
Chart 4.13
Experience while dealing with ITC
Interpretation:
In the above graphical chart the data regarding the ratings given by the retailers in
respect to their experience of dealing with the input tax credit is given in the form of a
bar graph, where on the Y axis there are number of respondents and on the X axis the
75
ratings are mentioned. It is observed that nobody says that their experience is poor and
most of them say it was an average experience. Not good, not bad.
Old taxation system and new taxation system
Question:
Do you think GST is better than the old taxation system?
o Yes
o No
o Maybe
Table 4.14
Options Yes No Maybe

Responses 8 5 4
Percentages 47.1% 29.4% 23.4%
Chart 4.14
GST better than old taxation system
Interpretation:
From the above graphical diagram we get to know that most of the respondents think
that GST is better than the earlier tax system. And others think that the current GST
76
system does not give justice and is not as better as the earlier tax laws. And the third
group of the population says they have no idea about anything at all.
Impact of GST on profits.
Question:
What was the impact of GST on your profits?
o Increase in profits
o Decrease in profits
o No change
Table 4.15
Options Increase in Decrease in No change

profits profits
Responses 4 9 7
Percentage 20% 45% 35%
Chart 4.15
Impact on profits
Interpretation:
77
The above table and pie chart shows us that 45% of the total respondents say that there
has been decline in their profit rates after the implementation of GST and 20% argue
that there is an increase in their profits while the another 35% say that there was no
major change in their profits due to GST.
Impact on consumer:
Question one:
Did your client’s customer loyalty alter due to implementation of GST?
o Yes, a lot
o Yes, a little
o No, not at all
Table 4.16

Responses 4 10 7
Percentage 19% 47.6% 33.3%
Chart 4.16
Impact on consumer loyalty
Interpretation:
78
In the above chart and table it is shown that majority of the respondents have
experienced a little change in customer loyalty after the implementation of GST which
is 47.6% of the total responses.33.3% of the respondents say that there is no change in
the customer loyalty due to implementation of GST and 18% of the respondents say
that there is a lot of alteration after GST in their customers loyalty.
Question two:
What is the difference in consumer satisfaction with these new change in rates?
Table 4.17
Consumer 1 2 3 4 5
satisfaction (very (poor) (average) (good) (very
rate poor) good)
Responses 0 5 11 4 1
Percentage 0% 23.8% 52.4% 19% 4.8%
Chart 4.17
Consumer satisfaction rate
Interpretation:
79
The above bar diagram the customer satisfaction rate given by the retailers is
mentioned. Where 52.4% of total respondents say that the customer satisfaction is
average which is the major portion of the total population. Here on the X axis the ratings
are present and on Y axis the number of respondents in the group of 5 are present.
Complications:
Question:
Do you think GST has reduced your complications in tax payments and credit claims?
o Yes
o No
o Maybe
Table 4.18

Responses 8 8 1
Percentages 47.1% 47.1% 5.9%
Chart 4.18
Complications in GST
Interpretation:
80
The above graphical chart represents the responses of the respondents regarding the
complications in GST out of which 47.1% of the total respondents say that they do face
complications and 47.1% of the total respondents say that they do not have ant
complications while the other5.9% of the population stays neutral.
Supply chain:
Do you think supply chain has been enhanced in post GST era?
o Yes
o No
o Maybe
Table 4.19

Responses 6 8 6
Percentages 30% 40% 30%
Chart 4.19
Impact on supply chain
Interpretation:
81
impact of GST on supply chain out of which 30% of the total respondents say that there
is impact on supply chain and 40% of the total respondents say that there is no impact
on supply chain while the other 30% of the population stays neutral.
Here in the above pie chart blue represents the respondents saying yea, red represents
the respondents saying no and yellow represents the respondents saying maybe.
Transparency:
Question:
Do you think there is transparency in taxation system after GST?
o Yes
o No
o Maybe
Table 4.20

Responses 10 3 6
Percentages 52.6% 15.8% 31.6%
Chart 4.20
Transparency in GST
82
Interpretation:
transparency in GST out of which 30% of the total respondents say that there is
transparency and 40% of the total respondents say that there is no transparency while
the other 30% of the population stays neutral.
83
Chapter number five
Conclusion
84
5.1 OVERVIEW ON PROJECT
The project is mainly based on the primary data. The data which has been collected by
the researcher from the retail shop owners in the form of questionnaire made through
google forms. Based on the data obtained from each questionnaire each aspect of the
project have been analysed and interpreted. The summary of all the answers is shown
in the form of tables, pie charts and bar diagrams in the chapter number four titled as
analysis, presentation and interpretation. From conducting this research project the
researcher would like to conclude with the help of following points.
1. Commencement:
Majority of the retail shops that the researcher has interviewed have been started before
the implementation of GST. Very few were started after that. It could be concluded that
seeing low profits in the market the commencement of new shops have been
discouraged.
2. Outside party:
Half of the retail shop owners do their GST related work on their own and those who
does not, take the help of the outside part which has found are; tax consultants, agents,
relatives, chattered accountants, etc.
3. Problems regarding registration and documentation:
Majority of the retail owners say that they face a little problem while going through the
registration and documentation of their shops. Here mostly the respondents were those
who do not take help of any outside party.
4. Online processes:
Most of the retail owners go through the GST with the help of online processes and
they say that the face little problem due to these online processes.
5. Input tax credit:
What really shocks the researcher is that almost everyone does not know what input tax
credit is. They do not have any idea that they can claim the portion of their tax as input
tax credit. Neither the retailers taking help of the outside part nor the ones doing these
things on their own now anything about input tax credit.
6. Old and new tax system:
Most of the retail shop owners say that the new tax system, that is, GST, is better than
the old tax system and that they are happy with the changes in this indirect tax system.
7. Impact on profits:
85
We find that there is an obvious change in the profits of the retail shops after the
implementation of GST. Majority of the retail shop owners say that there is decline in
their profits after the GST was implemented.
8. Impact on consumers and customer loyalty:
Many retailers say that they find the customers have shifted their attention from their
shops although they admit that it could be because of reasons other than GST and when
asked about the customer satisfaction regarding the rates change, they say that the
consumers seem satisfied and are not really concerned about it as they just have to pay
the price mentioned on the product as maximum retail price.
9. Complications in tax payments and credit claims:
Here the results obtained by the researcher were fairly neutral, as half the respondents
say that GST has reduced their complications in tax payments while the other half say
that there is no change and that the complications are still the same.
10. Reduction in tax burden:
Most of the respondents say that their tax burden was reduced after GST came into
picture. That it definitely benefitted them in reducing their burden.
11. Transparency:
It is found that there is more transparency after GST in the indirect tax system and the
retailer obviously welcomes it.
These were the conclusions drawn through the collection of primary data, however,
there are some more things that can be brought into the notice of the readers. Many
research papers were reviewed before starting with the project and man of them brought
or put light upon the provisions on gifts and promotional offers, and the research
scholars felt that it would bring a negative impact for retailers, however, when enquired,
the retailers had no knowledge as to such provisions even existed.
5.2 CONCLUSION FOR HYPOTHESIS
The researcher found that Alternative hypothesis (H1) and Null hypothesis (H0) will
be helpful for the research. Thus, the hypothesis formulated for this study are specified
below:
H1: The introduction of GST has brought a negative impact on the retail industry.
H0: The introduction of GST has not brought a negative impact on the retail industry.
86
From all the research done, it is clear that GST has undoubtedly had impact on various
aspects of a retail industry, where on one side there is seen that there is decline in profits,
decline in customer loyalty, problems in dealing with the new tax system, it is also seen
that the retailers admit that their tax burden has been reduced and there in unarguable
transparency after GST in the indirect tax system. Therefore observing everything very
closely, it is found that the alternative hypothesis is to be accepted and the null
hypothesis is to be rejected.
Though the things are not very bad but it cannot be denied that there is after all a
negative impact on the retail shops due to introduction of GST.
But it is also seen that the retailers see these problems as short term and have faith that
goods and service tax will be beneficial for them in their near future
5.3 SUGGESTIONS
The researcher would like to suggest some important things to the parties this research
project refers to. Which are; general retailers, GST concerning authorities and
professionals and council.
One of them is regarding the ITC. Input Tax Credit which due to unknown reasons is
not claimed by the retailers. They probably do not know how beneficial it really is to
them. Another thing being, that when the retailers were asked if they wanted to give
some suggestions to the higher authority what would it be? They replied that they would
like to convey that there are different rates of the same products for different places and
they are not happy with it.
87
BIBLIOGRAPHY
1. https://www.hrblock.in/gst/guides
2. https://www.slideshare.net/PankajSharma1221/project-report-on-gst-2018
3. https://www.academia.edu/38020055/A_Study_on_Impact_of_Goods_and_Se
rvice_Tax_in_retailbusiness
4. https://www.academia.edu/35270820/GST_A_Complete_Insight- Retail
business Impact_Type_Rates_and_Conclusion
88
ANNEXURE
What is the designation of the respondent?
1. Owner
2. Worker
3. Other
When was the shop started?
1. Before GST
2. After GST
Have you registered yourself under GST?
1. Yes
2. No
3. Maybe
Do you take help of any outside party for dealing with GST?
1. Yes
2. No
3. Maybe
If yes, who do you consult to?
1. Tax consultant
2. Agent
3. Someone in relation
4. Other
Did you have a clarity regarding the process of GST when you registered yourself?
1. Yes
2. No
Do you face any problem regarding the documentation for GST?
1. Yes, a lot
2. Yes, a little
3. No, not at all.
Did you face any trouble regarding the registration of GST?
1. Yes, a lot
2. Yes, a little
3. No, not at all
89
Do you pay your GST online or offline?
1. Online
2. Offline
3. No idea
Do you face problems due to online processes in GST?
1. Yes, a lot
2. Yes, a little
3. No, not at all
Do you claim ITC?
1. Yes
2. No
3. Maybe
What is your experience dealing with input tax credit?
1. very poor
2. poor
3. average
4. good
5. very good
Do you think GST is better than the old taxation system?
1. Yes
2. No
3. Maybe
What was the impact of GST on your profits?
1. Increase in profits
2. Decrease in profits
3. No change
Did your client’s customer loyalty alter due to implementation of GST?
1. Yes, a lot
2. Yes, a little
3. No, not at all
90
What is the difference in consumer satisfaction with these new change in rates?
1. very poor
2. poor
3. average
4. good
5. very good
Do you think GST has reduced your complications in tax payments and credit claims?
1. Yes
2. No
3. Maybe
1. Yes
2. No
3. Maybe
1. Yes
2. No
3. Maybe
91

Impact of GST On Retail Business With Repect To Airoli, Maharashtra PDF

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A study on impact of GST on retail industry with respect to Airoli, Maharashtra

1.1 SELECTION AND RELEVANCE

Reason behind selecting GST:

Reason behind selecting retail sector:

 Income tax is charged on an income known as “taxable income”, which

 Income from house and property.

It is levied differently on different people depending on their residential

Differentiating between direct and indirect taxes

Context Direct tax Indirect tax

Overview on History of GST

Table no. 1.2

Date Task performed on that particular date

History of GST based on country

Table no. 1.3

Consideration [Section 2(31)]: “Consideration” in relation to goods or services or both

1.1 FEATURES AND KEY CONCEPTS

Some of thekey features of the GSTare:

10. Apportionment of IGST revenue: The IGST collected will be apportioned

 Model Goods and Services Tax Laws, principles of levy, apportionment of

 Special provision with respect to the States of Arunachal Pradesh, Assam,

GSTN (Goods and Service Tax Network)

Chart no. 1.1

Role of GSTN (ref. www.gstn.org)

Another information like commencement, registration, purpose, vision, values, etc. is

 It was introduced by the Government as a private company in 2013.

 The main purpose of GSTN is to provide front-end services of registration, returns

Goods and Service Tax Returns (GSTR):

Form name Purpose of filing Frequency Due date

GSTR-1 Details of outward Monthly 11th of the next

Previously, the due

GSTR-2 Details of inward Monthly 15th of next month

the amount of tax

Tax rates of products by GST:

Table no. 1.5

Tax rates Products

1.1 OBJECTIVES OF THE STUDY

Research is an organised investigation of a problem in which there is an attempt to gain

A research objective is a clear, concise, declarative statement, which provides direction

 To assess the impact of GST over retail industry.

1.2 HYPOTHESIS OF THE STUDY

A hypothesis is a specific statement of prediction. It describes in concrete (rather than

Sometimes we use a notation like HA or H1 to represent the alternative hypothesis or

Some basic characteristics of hypothesis in a study are;

Hypothesis is important because;

 it gives direction to the research,

1. Simple hypothesis: a simple hypothesis is a hypothesis that reflects a relationship

1.3 SCOPE OF THE STUDY

So, this is the scope of the entire research project.

1.4 LIMITATIONS OF THE STUDY

Dr. Marilyn Simon in her study, ‘Assumptions, limitations and delimitations’

There is a constraint of time as it is an academic research. The researcher has been

1.5 SIGNIFICANCE OF THE STUDY

The significance of this study is given in the points below;

1.6 SELECTION OF PROBLEM

Reason behind selecting GST:

Reason behind selecting retail sector:

1.7 SAMPLE SIZE

Meaning of sample size:

Sample size is a count of the individual samples or observations in any statistical