SUMMER INTERNSHIP PROJECT REPORT

On

“IMPACT OF GST ON SPENDING BEHAVIOUR OF CONSUMERS IN

INDIA”

At

MODI PATEL & ASSOCIATES

Submitted to

R.B.INSTITUTE OF MANAGEMENT

Under the Guidance of

PROF.KINJAL MODI

In partial Fulfillment of the Requirement of the award of the degree of

Master of Business Administration (MBA)

Offered by

GUJARAT TECHNOLOGICAL UNIVERSITY

Prepared by
KAVINA JADAV

217460592056

MBA (Semester-III)

Aug 2022

1
 Student’s Declaration

I hereby declare that the Summer Internship Project Report titled “IMPACT
OF GST ON SPENDING BEHAVIOR OF CONSUMERS IN INDIA” in
MODI PATEL & ASSOCIATES is a result of my own work and my
indebtedness to other work publications, references, if any, have been duly
acknowledged. If I am found guilty of copying from any other report or published
information and showing as my original work, or extending plagiarism limit, I
understand that I shall be liable and punishable by the university, which may
include ‘Fail’ in examination or any other punishment that university may decide.

Enrollment No Name Signature

217460592056 KAVINA JADAV

Place: ……… Date: …...

2
INSTITUTE CERTIFICATE

3
 CERTIFICATE OF EXAMINER
This is to certify that project work embodied in this report entitled “IMPACT OF GST ON
SPENDING BEHAVIOUR OF CONSUMERS IN INDIA” was carried out by KAVINA
JADAV and Enrollment no.217460592056 of R.B.INSTITUTE OF MANAGEMENT
STUDY.

The report is approved / not approved

Comments of External Examiner :

This report is for the partial fulfillment of the requirement of the award of the requirement of the
award of the degree of Master of Business Administration offered by Gujarat Technological
University.

……………………

(Examiner’s Sign)

Name of Examiner:

External Examiner’s Institute Name:

External Examiner’s Institute Code:

Date:

Place:

4
COMPANY CERTIFICATE

5
PLAGIARISM REPORT

6
 PREFACE

My experience throughout the MBA research project was referred to as "Impact

of GST on Spending Behavior of Consumer in India" in the project study
report. The project report includes a summary of the duties and projects I did while
pursuing my MBA on campus and for my research project.

My research report has given me the opportunity to learn more about this system,
the tactics and policies used for the GST, and how the GST would affect consumer
spending in India. Through this research report, which I have attempted to compile
all of my observation experience and knowledge received in this MBA summer
internship project, my research project also gives me the opportunity to get
practical knowledge.

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 ACKNOWLEDGEMENT

I take this Responsibility to express my profound and sincere gratitude to MBA,

for providing me with the opportunity to explore the corridors of the corporate
world and gather invaluable knowledge and partial experience via Summer
Internship Project.

The successful completion of the internship would not have been possible without
the guidance and support of many people. I express my sincere gratitude to CA
SANJAY PATEL for allowing doing my internship at MODI PATEL &
ASSOCIATES.

I am thankful to my internal guide PROF.KINJAL MODI for his constant support

and inspiration throughout the project and invaluable suggestions, guidance and
also for providing valuable information.

Finally, I would also like to thanks all those people who are directly or indirectly
related in the completion of this project report.

8
 EXECUTIVE SUMMARY

The country's most significant tax change is thought to be the GST. Every business
must comprehend consumer behavior in order to satisfy clients with products and
services. One of the elements that have an impact on consumer behavior is
taxation. Any modification to the taxation structure will significantly affect
consumer behavior, particularly his purchasing choices. These adjustments may
take the shape of shifting brand preferences, taking into account new variables, or
having more or less money to spend. The primary determinant of the quantity and
brand that consumers will purchase is their ability to pay. Almost all industries
have been influenced by GST, and the cost of many everyday items has either gone
up or stayed the same. The goal of this research paper is to examine the cause and
effect relationship between the GST and spending behavior. It eventually reaches a
significant conclusion and offers room for additional investigation in this area.

9
 INDEX

CH. PARTICULARS PAGE

No. NO.
I Title Page 1
II Student’s Declaration 2
III Institute Certificate 3
IV Certificate of Examiner 4
V Company Certificate 5
VI Plagiarism Report 6
VII Preface 7
VIII Acknowledgement 8
IX Executive Summary 9

1. Introduction About the Industry 13-14

2. Firms Profile 16-17

3. Introduction about the GST 19-38

4. Literature Review 40-43

5. Research Methodology 45-47

10
6. Data Collection & Interpretation 49-65

7. Findings 67

8. Conclusion 69
❖ Bibliography 70
❖ Questionnaire 71-75

11
 CHAPTER – 1

INTRODUCTION ABOUT THE INDUSTRY

12
Introduction of the Organization’s Business Sector

The Chartered Accountants Act, 1949 (Act No. XXXVIII of 1949), which established the
Institute of Chartered Accountants of India (ICAI), is a statute that governs the practice of
chartered accounting in the nation. The Institute is managed administratively by the Government
of India's Ministry of Corporate Affairs. The ICAI has a long history of serving the Indian
economy in the public interest and is the second-largest professional association of chartered
accountants in the world.

A Council is in charge of running the ICAI's affairs in accordance with the 1949 Chartered
Accountants Act and 1988 Chartered Accountants Regulations. The Council is made up of 40
members, 32 of whom are chosen by Chartered Accountants, and the remaining 8 are nominated
by the Central Government on behalf of the Ministry of Corporate Affairs, the Ministry of
Finance, the Ministry of Corporate Affairs, and other stakeholders.

The ICAI eventually gained respect as a leading accounting organization not just in the nation
but also internationally for upholding the highest standards in technical and ethical areas as well
as for maintaining strict examination and educational standards. The profession has expanded
dramatically in terms of members and students since 1949.

13
 ❖ VISION & MISSION

ICAI VISION :

• To be world’s leading accounting body: The ICAI aspires to be the top accounting
organization in the world by playing a significant role in establishing international
standards in specific service sectors and by fostering thought leadership and research that
tackles issues facing developed, developing, and underdeveloped nations.

• In accounting, assurance, taxation, finance and business advisory services: The ICAI
will improve the resources available for education, training, ongoing knowledge updates,
as well as research and development that is pertinent to the present to achieve thought
leadership in the fields where ICAI members have been offering services.

ICAI MISSION:

• Global Professionals: In order to serve clients not only in India but also around the
world, ICAI develops talented employees with the necessary technical abilities as well as
cross-cultural awareness and understanding of global needs. We'll make sure our
members can take their proper place in the global talent pool as one of the biggest CA
procedures in the world.

• Multi-national Service Providers : Indian professionals can establish themselves as

multinational service providers with the support of the ICAI, which also helps them
develop their skills and take advantage of global opportunities.

14
 CHAPTER – 2

FIRMS PROFILE

15
 ❖ FIRM PROFILE OF M/S. MODI PATEL & ASSOCIATE
(CHARTERED ACCOUNTANTS)

I. GENERAL INFORMATION

1. Name of the Firm M/S. MODI PATEL & ASSOCIATE

(CHARTERED ACCOUNTANTS)
2. Complete postal/communication address of HEAD OFFICE C/O SNEDHABHAI PATEL
the Head Office/Main Office. In case the SHAKTINAGAR SOCIETY, KUKARWADA
Branch applied is not in the location of the DIST- MEHSANA -382830
Head Office, then the address of the Office in
the area selected.
BRANCH B-3 AAKRUTI SOCITEY,
JODHPURGAM ROAD, SATELLITE,
AHMEDABAD
3.Office telephone / Mobile Numbers/ Office 09428802969
FAX Number
4.E-mail address [email protected]

5.Constitution/status, as on date Partnership

7.Registration Number of the firm with date With ICAI With RBI
with Institute of Chartered Accountants of
India (ICAI) /RBI(unique code Number) --
Mandatory [enclose copies 127466W UCN:781730 (RBI
UCN FOR BRANCH
AUDITOR)
8. Category allotted by RBI – (Proof to be RBI CATEGORY – III
furnished)

9.Permanent Account Number (PAN) of the ABZFS1490A

firm

10.GST Registration Number NOT APPLICABLE

11.Number of partners 2

16
12.Name, qualification, membership Number, year and other details (CISA / DISA qualification
& Course on Concurrent Audit of Banks should be mentioned) (Provide the name of all the
partners including those who are not qualified Chartered Accountants /retired Bankers)

Name of Partner Educational Membership Number Year

With Contact Qualification
Number

CA Jitesh Modi M. B.COM, FCA, DISA, 129798 18/10/2008

9925226125 LLB

CA Sanjay P Patel -B.COM, --FCA, DISA - 121156 03/04/2006

M.9428802969 ICAI CERTIFICATE
COURSE ON
CONCURRENT
AUDIT OF BANKS

14.Detail of Audit Staff Employed

A. Qualified Chartered Accountants Partner:02(Both FCA and ISA)

B. Semi qualified Chartered Accountants N.A

C. Retired/ex-bank officers N.A

D. Article/audit clerks 10

E. Other assistants 02

F. Total 12

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 CHAPTER – 3

INTRODUCTION ABOUT THE GST

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❖ INRODUCTION:

A tax is a mandatory charge that any government imposes on a person or a business in

order to raise money for public works initiatives that build the best facilities and
infrastructure. In India, taxes are collected by the Municipality, State Governments, and
the Central Government. Direct and indirect taxes make up the two primary types of
taxes. The direct tax paid by the person who is the subject of an indirect tax.

❖ Concept of GST :

The production, sale, and consumption of products and services are all subject to the
value-added tax, or GST. GST offers a thorough and continuous chain of tax credits,
taxing only the value added at each stage of the supply chain, from the procedures or
service providers' point all the way up to the retailer's or consumer's level. Based on the
"Destination Principle," the GST is a consumption-based tax.

19
In order to offset the GST payable on the goods and services he would deliver, the supplier is
permitted to claim a credit for the GST paid on the products and services he purchased at each
stage. As a result, set-off opportunities are available at all earlier levels, and only the ultimate
customer is liable for the GST imposed by the supply chain's last supplier. Because only the
value contributed at each level is taxed, there is no tax on tax or cascading of taxes under the
GST system.

In 1954, the GST was first implemented in France. Nearly 160 nations throughout the world
employ this indirect taxation system. Some of the nations that make use of this taxing system
include the following. Several nations, including France, Australia, Singapore, the United
Kingdom, Spain, Italy, Nigeria, Brazil, South Korea, Canada, Vietnam, and Monaco, impose this
tax.

Why GST has been proposed?

According to our Constitution, the Central Government may impose excise taxes on
manufactured goods and service taxes on the provision of services. Additionally, it gives state
governments the authority to charge a sales tax or value-added tax (VAT) on the purchase of
goods. There are many different indirect taxes in the nation as a result of this exclusive division
of fiscal authority. Additionally, the central government imposes central sales tax (CST) on the
interstate sale of products; nevertheless, the exporting States are responsible for collecting and
keeping this tax. Additionally, a lot of States charge an entry fee for products entering local
territories.

A complicated indirect tax system with many buried expenses for business and industry has
developed in the nation as a result of the multitude of taxes levied at the State and Central levels.
At various points in time, the Indian government tried a variety of tax policy reforms in an effort
to streamline and rationalize indirect tax structures. In 2002, the central government instituted a
system of VAT on services. State sales taxes are collected by the states through the CST on
interstate trade and the VAT imposed on intrastate trade that was implemented in 2005. The
overall taxes system is still complicated and contains a number of exemptions despite all the
numerous improvements.

20
As a result, the "One Nation, One Tax" concept and the implementation of GST in the Indian
financial system were born. Simply put, this is quite similar to the VAT that is already in place in
the majority of the states and can be referred to as National level VAT on Goods and Services,
with the exception that in this system services are included as well as goods, and the rates of tax
are generally the same.

❖ Different types of taxes:

In India, different types of taxes are common. In India, taxes can be direct or indirect.
The types of taxes, however, also depend on whether a specific tax is imposed by the
federal, state, or any other municipalities.

21
There were numerous indirect taxes imposed by the state and the federal government under the
previous indirect tax rule. The Value Added Tax was the most common tax kind that states
collected (VAT). There were various laws and rules in each state. The Center levied taxes on
commodities sold over state lines. In the case of an interstate sale of goods, CST (Central State
Tax) was applicable. Beyond the aforementioned, there were several indirect taxes imposed by
the State and the Center, including the entertainment tax, the octroi, and local taxes. As a result,
the taxes collected by the state and the Centre often Overlapped.

For instance, the Centre levied excise duty when items were produced and sold. The State also
levied VAT in addition to Excise Duty. This resulted in the cascading impact of taxes,
sometimes known as a tax on tax.

The list of indirect taxes under the pre-GST rule is as follows:

• Central Excise Tax

• Obligations of Excise
• Additional Excise Duties
• Additional Customs Duties
• Special Additional Customs Duty
• Cess
• Government VAT
• Indirect Sales Tax
• Purchasing Tax
• Luxurious Tax
• Tax on Entertainment
• Entrance Tax
• Taxes on advertisements
• Taxes on lotteries, betting, and gambling

22
All of the preceding taxes have been replaced by CGST, SGST, and IGST. The chargeability of
CST for interstate purchases at a concessional rate of 2% is still applicable to several non-GST
commodities, such as

i. Petroleum crude
ii. High-Speed Diesel
iii. Motor spirit (commonly known as petrol);
iv. Natural gas;
v. Aviation turbine fuel; and
vi. Alcoholic beverages intended for human consumption, but only in relation to the
following transactions:
• Resale
• Implement in manufacturing and processing
• In mining, the telecommunications network, or any other application; in the
generation or distribution of energy or any other sort of power.

❖ OBJECTIVES OF GST:

1. To increase the competitiveness of goods and services produced domestically in

order to raise the country's GDP rate.
2. To limit the cascading effect of tax on tax.
3. To ensure that input credit is accessible along the whole value chain.
4. To simplify tax management and compliance
5. To develop a unified worldwide legal framework that includes all administrative
procedures, rules, and tax bases.
6. To minimize competitive state-to-state competition for tax and revenue dollars
7. To reduce tax slab rates to avoid raising more classification issues.
8. Unrestricted and free movement of products across the country.
9. Simplifying the administrative, compliance, and return-filling processes

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 ❖ TYPES OF GOODS AND SERVICES:

Governing Act Description

CENTRAL GOODS and SERVICES By the central government, who also collects
them. The Central Government of India
Act(CGST)
receives income through the intra-State supply
of taxable commodities, services, or both.

STATE GOODS and SERVICES State governments and union territories with
state legislatures levy and collect taxes. It is a
ACT (SGST)
source of income for the corresponding State
Government. taxable products, services, or
both that are supplied intrastate.

INTEGRATED GOODS and The IGST Act and shall be assessed on

intrastate supplies of goods and/or services.
SERVICES ACT (IGST)

UNION TERROITORY GOODS and Union Territories without legislatures may

impose and collect taxes on intrastate
SERVICES ACT (UTGST)
shipments of taxable goods, services, or both.

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❖ EXAMPLES:

1. CSGT AND SGST

Merchants in Tamil Nadu for MrA who provided Mr.B with items valued Rs.
5000. The GST rate is 18% and is made up of 9% CGST and 9% SGST. In this
scenario, the dealer (Mr. A) receives Rs. 900, of which Rs. 450 will be given to
the Central Government, Rs. 450 to Tamil Nadu, and Rs. 450 to the State
Government.

2. CGST AND UTGST

A dealer from Karnataka named Mr. N sold Mr. B in New Delhi products valued
rs. 10,000. The combined CGST and UTGST rates total 18% for the GST rate. In
this scenario, Mr. N gets Rs. 1800, of which Rs. 900 will go to the Central
Government and Rs. 900 to the New Delhi Government (Union Territory)

3. IGST

A dealer from Kerala named Mr. C sold Mr. D products from Gujarat worth Rs.
100,000. The GST rate compares to the IGST rate, which is 18%. The trader (Mr.
C) charges Rs. 18000 as IGST in this scenario and this money goes to the Central
Government.

25
 ❖ Various Tax Rates imposed by GST

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
▪ Cashew nuts/cashew nuts in shell
▪ Ice and snow
▪ Bio gas
▪ Insulin
▪ Aggarbatti
▪ Kites
▪ Coir mats, matting and floor covering

26
 ▪ Pawan Chakki that is Wind-based Atta Chakki
▪ Postage or revenue stamps, stamp-postmarks, first-day covers, etc.
▪ Numismatic coins
▪ Braille paper, braille typewriters, braille watches, hearing aids and
other appliances to compensate for a defect or disability
▪ Fly-ash blocks
▪ Walking sticks
▪ Natural cork
▪ Marble rubble

12% ▪ Preparations of vegetables, fruits, nuts or other parts of plants,

including pickle, murabba, chutney, jam, jelly
▪ Ketchups, sauces and mustard sauce but excluding curry paste,
mayonnaise and salad dressings, mixed condiments and mixed
dressings
▪ Bari made of pulses including mungodi
▪ Menthol and menthol crystals, peppermint,fractionated/de-terpenated
mentha oil, dementholised oil, Mentha piperita oil and spearmint oil
▪ All diagnostic kits and reagents
▪ Plastic beads
▪ Exercise books and note books
▪ Glasses for corrective spectacles and flint buttons
▪ Spoons, forks, ladles, skimmers, cake servers, fish knives, tongs
▪ Fixed Speed Diesel Engines
▪ Two-way radio (Walkie talkie) used by defence, police and
paramilitary forces etc.
▪ Intraocular lens
▪ Corrective spectacles
▪ Playing cards, chess board, carom board and other board games, like
ludo, etc.

27
 ▪ Debagged/roughly squared cork
▪ Items manufactured from natural cork
▪ Agglomerated cork 18%
▪ Hair oil, toothpaste and soaps, capi

18% ▪ Hair oil, toothpaste and soaps, capital goods and industrial
intermediaries , Kajal ,pencil sticks
▪ Dental wax
▪ Plastic Tarpaulin
▪ School satchels and bags other than of leather or composition leather;
toilet cases, Hand bags and shopping bags of artificial plastic material,
cotton or jute; Handbags of other materials excluding wicker work or
basket work
▪ Headgear and parts thereof
▪ Precast Concrete Pipes
▪ Salt Glazed Stone Ware Pipes
▪ Aluminium foil
▪ All goods, including hooks and eyes
▪ Rear Tractor tyres and rear tractor tyre tubes
▪ Rear Tractor wheel rim, tractor centre housing, tractor housing
transmission, tractor support front axle
▪ Weighing Machinery other than electric or electronic weighing
machinery
▪ Printers other than multifunction printers
▪ Ball bearing, Roller Bearings, Parts & related accessories
▪ Transformers Industrial Electronics
▪ Electrical Transformer
▪ Static Converters (UPS)
▪ CCTV including CCTV with video recorders
▪ Set top Box for TV
▪ Computer monitors not exceeding 17 inches

28
 ▪ Electrical Filaments or discharge lamps
▪ Winding Wires, Coaxial cables and Optical Fiber
▪ Perforating or stapling machines (staplers), pencil sharpening
machines
▪ Baby carriages
▪ Instruments for measuring length, for use in the hand (for example,
measuring rods and tapes, micrometers, callipers)
▪ Bamboo furniture
▪ Swimming pools and paddling pools
▪ Televisions/Monitors (upto 32 inches)
▪ Power banks powered by Lithium-ion batteries
▪ Sports goods, games consoles and related items with HS code 9504
▪ All items with HS code 8483 including gear boxes, transmission
cranks and pulleys
▪ Used or retreaded pneumatic rubber tires

28% ▪ Luxury items such as small cars , consumer durables like AC and
Refrigerators, premium cars, cigarettes and aerated drinks , High-end
motorcycles are included.

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 ❖ STAGES OF GST:

Along the whole supply chain, from the point of manufacture to the point of final sale to
the customer, an item changes hands numerous times.

Let's think about the following scenario:

1. Purchase of raw materials.

2. Production or manufacture.
3. Warehousing of finished goods.
4. Sale to wholesaler.
5. Sale of the product to the retailer.
6. Sale to the end consumer.

Each of these stages is assessed the Goods and Service Tax, making it a multi-stage tax.

❖ Fundamentals of GST:

30
 I. As opposed to the current concept of tax on the manufacture of goods, on the sale of
goods, or on the provision of services, GST would be payable on the "supply" of goods or
services.
II. As opposed to the current principle of origin-based taxation, the GST would be based on
the principle of destination-based consumption taxation.
III. It would be a dual GST, imposed concurrently on a common base by the Center and the
States. The GST that the Center would levy is known as the Central GST (central tax-
CGST), while the GST that the States [including Union territories with legislature] would
levy is known as the State GST (state tax- SGST). Union areas that lack a legislature
would impose a local GST (union territory tax- UTGST).
IV. On the transfer of goods or services between States, including stock transfers, an
Integrated GST (integrated tax—IGST) would be assessed. The Center would gather this
to prevent any disruptions to the credit chain.
V. Goods imported from outside the United States would be considered interstate supplies
and be subject to IGST in addition to any applicable customs fees.
VI. Services imported would be considered interstate supplies and be charged IGST.
VII. Under the direction of the GSTC, CGST, SGST, UTGST, and IGST would be imposed at
rates that would be mutually agreed upon by the Center and the States.
VIII. By allowing it to be applied to taxes paid on any supply of products or services, or both,
utilized or intended to be employed in the course or advancement of business, the Input
Tax Credit (ITC) was given a broad foundation.
IX. Electronic filing of taxes by various classes of individuals by various deadlines.
X. The taxpayer has access to a number of tax payment options, including as internet
banking, debit/credit cards, and National Electronic Funds Transfer (NEFT)/Real Time
Gross Settlement (RTGS).
XI. Operators of internet trade are required to collect "tax at source" at a rate that does not
exceed 2%. Out of payments made to suppliers who sell goods or services through their
portals, 2% of the net value of taxable supplies. The TCS provision has not yet been
notified.
XII. System of self-assessment for the taxes that the registered person must pay (xxiv).

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❖ GST IMPACT ON CONSUMERS

Following the implementation of GST, there is a single tax provision throughout the
supply chain where each person is able to utilize the tax benefits of all the taxes that he
has already paid, ultimately resulting in lower pricing. Additionally, he learned the exact
value of his items as well as the amount of tax he had paid on them. Since GST has
stronger tax administration capabilities, it is impossible to manipulate taxes. Since GST
has a larger scope, it will cover the greatest number of assesses possible at each level of
the tax process, generating tax benefits that would ultimately benefit consumers.

When the costs of their necessities change, the general public feels the effects of an
economy. The economy is excellent for the general public when prices for the daily
goods and services that are consumed are cheap; however, if the inflation rate is higher,
the general public becomes dissatisfied with the changes made by the government.

Any government policy must result in public satisfaction in order to succeed in the way
that the government intended. Without it, the programme will not be as successful.

Here, we're attempting to analyze the new GST in light of India's current tax structure. In
the former tax system, we paid indirect tax on every service we used that was already
subject to tax at a different period.

Cascading impact refers to the situation in which we occasionally pay taxes on top of
taxes. As a result, only the final customer is responsible for the price increase, and he is
unaware of the tax he paid or the true cost of the product. The implementation of the GST
has had a minor impact on consumers, according to news outlets. Let's look at some
common places where people deal with one other every day.

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

1. Household Expenses:

➢ Food items are subject to a GST tax rate of 0% to 5%, hence this has no effect on
food prices.
➢ With a higher GST rate of 3% and no advantage from input tax credits, cosmetic
services like salon and beauty services are known to get more expensive.
➢ The Goods and Services Tax (GST) regime's adoption has increased the price of
common household items. The adoption of the new indirect tax regime has
increased daily family spending, which has affected the country's ordinary people,
according to about 54% of the population. The results of a poll conducted by the
Citizen Portal, which is affiliated with the Central Government Consumer Affairs
Department, were released. Nearly 40,000 applicants had taken part in the survey
and responded to the many inquiries regarding the new tax system. Since the
nationwide implementation of the GST few months ago, one in two persons
believes that the new tax structure has increased the cost of a home.
➢ State Finance Ministers raised a number of concerns and queries during the 21st
GST Council Meeting in Hyderabad on the new tax system. According to a poll
conducted by the Local Circle of Consumer Affairs, roughly 54% of respondents
said that the adoption of the GST had increased monthly family spending by
almost 30%.
➢ About half of those who took part in the study believed that the higher monthly
medical costs following the implementation of the GST. Additionally, customers
are dissatisfied that businesses are charging GST beyond MRP, forcing them to
pay in cash, and failing to include GST in the bill.

33
 ➢ The GST Council has extended the dates for submitting Sales Returns or GSTR-1
in light of the difficulties State Governments are experiencing as a result of the
GST. At the 21st meeting of the GST Council, the government lowered the tax
rates for 30 products.
➢ Again, during the 22nd and 25th council meetings, the government lowered the
GST rates on a number of commodities, including home goods, which will
somewhat benefit the average person.
➢ As on November 10, 2017, various products, including condensed milk, refined
sugar, sugar cubes, pasta, curry paste, mayonnaise, salad dressings, mixed
condiments, mixed spice, diabetic food, etc., will be less expensive because they
fall within the 12% tax rate rather than the 18% bracket (As per the
recommendation of 23rd GST Council meeting on Nov 10, 2017).
➢ Due to the change from an 18% to a 12% slab, a few additional items, such as
sugar-boiled candies and 20-liter drinking water bottles, will also be less
expensive as of January 18, 2018.

2. Car Prices:

➢ Some car prices saw a significant rate reduction with the addition of GST, while
others increased in price. The cost of many car models has been updated by
numerous firms.
➢ With an additional cess ranging from 1% to 15%, the purchase of a car will now
incur a 28% GST rate.
➢ Less than 1,500 cc diesel engine vehicles will be subject to a 3% cess.
➢ Small gasoline engines under 1200 cc will be subject to a 1% cess.
➢ Large automobiles and SUVs with a length of above 4 metres will be subject to a
28% GST as well as a 15% cess.
➢ The GST rate for electric vehicles would be 12%.

34
3. Hotels :

➢ If a customer rents a hotel with a rate of INR 8000, the gross and indirect tax rate,
which includes service tax and the luxury tax, will be between 19 and 25%,
depending on the state's luxury tax rate. As a result, the tax will be determined
between INR 1520 and INR 2000.
➢ While in the case of the GST, there is a 28% GST that is applicable to all lodgings
with rates of around INR 7500, making the tax computation equal to INR 2100.
For costly hotels, the tax ratio is generally a little expensive.

4. Jewelry :

➢ Following the introduction of the GST, the tax rate was raised by 1%, up to 3%.
➢ Due to the 3% GST on gold plus the 5% making charges that the buyer must now
pay, investing in gold has become more expensive.

5. Restaurant:

➢ A consumer will make significant savings on the restaurant bill if they order a
dinner for INR 1000.
➢ The VAT rate in the previous tax system was 12.5%, and the service tax rate was
6%, for a total of about 18.5%.
➢ While a restaurant with air conditioning would pay 18% GST under the GST,
there would be very little cost savings in the restaurant bill.

35
6. Mobile Bills:

➢ The cost of using a Mobile has increased due to GST.

➢ Due to a 3% rise in the tax rate, consumers of both pre-paid and post-paid services
must now pay higher rates.

7. Air Travels:

➢ The tax rate varies in both scenarios if a customer purchases Indian domestic
economy class airline tickets for INR 1000.
➢ Prior to the implementation of the GST, the domestic economy class was subject
to a service tax of about 6%. As a result, there will be a small financial benefit.
➢ Speaking of the business class, the GST tax rate was raised from 9% to 12%,
resulting in a pricey tax case for the business class.

"Roti, Kapda, and Makaan" are the three key concerns for a middle-class household. Due
to the GST's four-slab rate structure, the new tax system initially causes the nation
problems. The new Goods and Service Tax (GST) Regime will help the nation in the long
run. Due to the cascading consequences of tax concerns being resolved by the
introduction of the GST on July 1st, a clear and incomplete grasp of personal finances is
now possible. On consumers, according to news outlets. Let's look at some common
places where people deal with one other every day.

36
❖ POSTIVE IMPACT OF GST ON CONSUMERS:

1. The introduction of GST served to unify a number of indirect taxes, including CST,
VAT, service tax, SAD, CAD, excise, and others.
2. The cascading effect of taxes, or tax on tax, was stopped with the introduction of the
goods and services tax.
3. Manufacturing costs will decrease as a result of the GST's reduction in the tax burden on
the manufacturing sector. As a result, it is also expected that consumer good prices will
drop.
4. Some products, like vehicles and FMCG, will be a little less expensive as a result of
decreasing manufacturing costs.
5. As a result, the average person will have to spend less money to obtain the same goods
and services that were previously more expensive.
6. Low prices will boost demand and consumption of commodities either directly or
indirectly.
7. Demand growth will ultimately improve supply. As a result, this will eventually lead to
an increase in product production.
8. An rise in production will eventually lead to more job possibilities. However, this is only
possible if consumers really receive things at lower prices.
9. This will reduce the flow of illicit currency. Only when the KACHA or Invalid Bill
system, typically used by traders and shops, will be checked, would it be possible.
10. A single tax code will lessen corruption, which will either directly or indirectly benefit
the average person.
11. Most importantly, economists anticipate that the GST will have a good long-term effect
on the Indian economy.

37
❖ NEGATIVE IMPACT OF GST ON CONSUMERS:

1. Compliance burden: You must timely file your return and submit GST.
2. It's not as simple as it seems to file GST returns. You must designate a tax expert to
oversee it.
3. The government is taking measures to simplify and make filing taxes easier. Even so, it
will take time to genuinely streamline the whole procedure from beginning to end.
4. With enough staff, large organizations can manage the process more easily. However, it
is still complicated for small business owners, service providers, and people who have
recently launched their own ventures.
5. The current service tax rate is 15%, and it is applied to services. Therefore, the price of
services will rise if GST is implemented at a higher rate, which is expected to happen
soon. Maximum services would be subject to GST at 18%, and some services will be
subject to GST at 28%. Which implies that all services, including banking, travel, and
telephones, will become more expensive. The cost of services will increase due to the
higher service tax, which will be added to the average person's monthly expenses.
6. You will need to adjust the average person's budget to cover the cost of new services.
7. Everyone is still learning and adjusting to the new legislation, including businesspeople
and service providers. At this moment, there is a growing reliance on tax professionals,
which raises some additional business costs.
8. After a given amount of time, the true effects of GST can be felt.
9. Since the Goods and Services Tax (GST) is a consumption-based tax, the location of the
service's provision must be identified.
10. Proper accounting and invoicing are required for improved compliance. However, a
number of businesses are creating GST accounting software.
11. The prices of the goods could rise if the real benefits are not distributed to the buyer and
the vendor widens his profit margin.
12. The increase in inflation can be seen at first, but it may also decline gradually.

38
 CHAPTER -4

LITERATURE REVIEW

39
 Literature Review

1. YEAR : 2021
TITLE OF THE PROJECT: Tax Administration
AUTHOR: Sourav Das
CONCLUSION:
He has discussed the impacts of GST reforms of efficiency, growth and redistribution
of income in India. This paper is aimed mainly at evaluating the micro and macro
effect of GST with a sophisticated mainframe model of the overall equilibrium of the
Indian economy. The paper is a complex CGE model based on the Indian economy’s
micro stable input-output statistics to analyze the impacts of GST on resource
allocation capacity in productive sectors, income development, and income
redistribution among households. While GST reforms would increase the
competitiveness in goods and services development across India’s major economic
sectors by removing inequalities in goods and services generation and delivery,
clarity in taxation would help to sustain a growth rate in over 7% for exports,
investments and physical resources.

The result of GST reforms are extremely positive for the Indian economy on
production, capital formation, expenditure, consumption and employment. Since, the
GST reforms, tax allocation is now fairer. The economic well-being and income of
households were 8% higher than the average

40
2. YEAR:2020
TITLE OF THE PROJECT: On the basis of Tax knowledge
AUTHOR: Ajay Sharma
CONCLUSION:
The researcher notes in his report that this indirect tax structure is modified. However,
with this new tax system, people do not have much knowledge and understanding about
GST-shift, the Small Business Persons (SBP) was the most affected group. The
researcher has observed GST knowledge among SBPs of this new tax structure. The
awareness was initially small, but the level of awareness also increased among SBP’s as
the time went by. Few SBPs have found the program simple and few make efforts to
familiarize themselves with the new system.

There is no internet connection in many areas, which means that work is not done in
time? All this is adding up to the problems of the SBPs. The government will attempt to
get people to know GST more. The GST was seen as straightforward , but enforcement
costs give SBPs a burden.

3. Bar hate (2017), found that people have no doubt whatsoever regarding the
proposed benefits of GST irrespective of their business type, legal status of business
for the reason being they feel irritated by the present system which appears to be
cumbersome. Most respondents believe that GST will bring monetary gains to their
business and do not anticipate any significant boost in tax compliance costs.
Interestingly, respondents expect the spending on tax compliance to go down after
GST is implemented. The lack of information coupled with the apathy towards
reforms may paralyze the speedy implementation of this system especially in small
towns where still not a single orientation programs have been planned and executed
till date by competent authorities.

41
4. YEAR: 2017

TITLE OF THE PROJECT: Impact of GST on Indian economy

AUTHOR: Jadhav Bhikha Lala
CONCLUSION:
Goods and Service Tax (GST) is a full tax charge on manufacture, sales and
expenditure of goods and services. The fundamental aim of GST is to make uniform
the scattered indirect tax system in India and avoid the cascading effect in taxation.
The impact going to make by GST will be a transformation in the entire tax system in
India. GST is termed as biggest tax reform In Indian Tax Structure. It will not be an
additional tax, it will include central excise duty, service tax additional duties of
customers at the central level, VAT, central sales tax, entertainment tax, octroi, state
surcharge, luxury tax, lottery tax and other surcharge on supply of goods and services.
The purpose of GST is to replace all these taxes with single comprehensive tax,
bringing it all under single umbrella. The purpose is to eliminate tax on tax. This
paper will throw light on GST its features and also effect of GST on prices of goods
and Services.

5. Times of India dated (27 July, 2017) , stated that the GST implication
across different places for the same product has wider differences which the
consumers are unaware, resulting them in surprise. Ex A Rasamalai sold in counter at
a shop is taxed with 5% but if it is served in the hotel it is taxed with 18% this has
resulted in difference of consumers shopping to purchase the similar products.

6. International Journal of Scientist research and management

(2014), Girish Gargh Assistant Professor from PGDAV College University of Delhi
has published paper titled- Basic Concepts and Features of good and service tax in
India. In this paper he has given the outline of GST and what does this tax system

42
 wants to achieve with threats and challenges opportunities that the free market
economy can bring

7. Ahamd et al. (2016), found that the level of awareness of the GST is still not
reached a satisfactory level. This is because the study involved only general questions
that should be known by the respondents as end users. This cause the respondents
gave high negative perception of the impact of implementation of GST. The
respondents received less information and promotion of the authorities. Most of the
respondents were unclear whether the goods and services are not subject to GST.
Furthermore, due to the lack of information on GST, the respondents had a high
negative perception. Therefore, the government must convince that GST will not have
a lasting impact on the public as particularly convincing end users that no increase in
prices of goods and services.

43
 CHAPTER – 5

RESEARCH METHODOLOGY

44
 RESEARCH METHODOLOGY

I looked into the issues surrounding the topic "impact of GST on Spending Behavior of
Consumer in India," which has already been defined and has moved from well-known to little-
known terms and facts by many researchers, but I discovered a lot of fresh information and other
people's suggestions on the matter.

I conducted my research using both primary and secondary data, and after gathering the data
from both sources, I established my research design and sample size.

OBJECTIVE OF THE STUDY:

The current study's objectives are to investigate the connection between income and consumer
spending patterns in India and to assess the "effect of GST on consumer spending patterns in
India."

1) The Goods and Services Tax Act should be understood,

2) To comprehend and be aware of consumer buying habits.
3) To comprehend the effects that the GST has on the populace.
4) To be aware of the goods and services on which the GST has had the biggest
impact.

45
LIMITATION OF THE STUDY:

1. Lack of Information
2. Lack of education about GST
3. Lack of Time
4. Short sample size
5. This study is limited to Ahmedabad.

1. Research Design:

With the aid of a few key categories of research design, we can create the research
design and framework.
Such as:
i. Exploratory Research Design
ii. Descriptive Research Design
iii. Causal Research Design
I conducted research on the subject of "impact of GST on spending
behavior of customer in India" using both exploratory and causal research
designs and I came up with some extremely useful and original findings.

Design for Exploratory Research Regarding my research topic, I used to look

into and examine the concerns and problems that Indian citizens and
consumers faced. From Ahmedabad . I carried out an exploratory study in
India using a questionnaire with a time-based Likert Scale structure. And
Causal Research design I used to concentrate on situation analysis and
Identifying specific issues.

46
2. Scope of study:

To understand the "impact of GST on spending behavior of consumers," a survey is

being performed in Ahmedabad using a questionnaire with the help of social
networking sites. The sample units are the customers who used their money to buy
various goods and services to satisfy their requirements and wants.

3. Sample Size :

I approached 100 consumers in the entire population of Ahmedabad with the

questionnaire in order to gather primary data for my research project, "Impact of GST
on Consumer Spending Behavior in India," but only 70 returned questionnaires (some
of which were incomplete) were returned by the consumers, so I ultimately chose the
70 questionnaires.

And finally, I prepared the sample size of 70 questionnaires.

4. Methods of Data Collection :

• Primary Data Collection:
I collected the primary data through Questionnaires.
• Secondary Data Collection :
I collected Secondary data through,
✓ The Books,
✓ Internet(Google, Website),
✓ By published Articles,
✓ By scholar thesis and Research.

47
 CHAPTER – 6

DATA COLLECTION & INTERPRETATION

48
 DATA COLLECTION & INTERPRETATION

Gender:

Gender Num. of Respondents Percentage (%)

Male 45 64.3%
Female 25 35.7%

Interpretation:

According to this chart it is clear that majority of the respondents are male i.e.
64.3% are male and 35.7% are Female.

49
Age :

Age group Num. of Respondents Percentage (%)

18 – 25 42 60%
25 – 35 18 25.7%
35 & above 10 14.3%

Interpretation:

This chart shows that majority of respondents are 18 – 25 years i.e. 60%
respondents are 18 – 25 years, 25.7% respondents are 25 – 35 years and remaining
14.3% respondents are 35 & above.

50
Education:

Education No. of Respondents Percentage(%)

Under Graduation 6 8.6%
Graduation 39 55.7%
Post Graduation 16 22.9%
Any other qualification 9 12.9%

Interpretation:

This chart shows that majority of respondents are Graduation i.e. 55.7%
respondents are Graduation, 22.9% respondents are post-graduation, 12.9%
respondents are any other qualification and remaining 8.6% respondents are under
graduation.

51
Occupation:

Occupation Num. of Respondents Percentage(%)

Student 16 23.2%
Employee 31 44.9%
Businessman 1 1.4%
Any Other 21 30.4%

Interpretation:

This chart shows that majority of respondents are employee i.e. 44.9% respondend
are employee, 30.4% respondend are any other, 23.2% respondents are students
and remaining 1.4% respondend are businessman.

52
Monthly income

Monthly income Num. of Respondents Percentage(%)

Below 10000 27 38.6%
10000 – 20000 22 31.4%
20000 – 30000 12 17.1%
30000 & above 9 12.9%

Interpretation:
This graph shows that majority of respondents are monthly income is below 10000
i.e. 38.6% respondents are below 10000, 31.4% respondents are 10000-20000,
17.1% respondents are 20000-30000 and remaining 12.9% respondents are 30000
& above.

53
Which commodities, in your opinion, are most impacted by the
GST?

Commodities Num. of Respondents Percentage(%)

Durable goods 7 10.4%
Non-Durable goods 13 19.4%
Semi-Finished goods 11 16.4%
Finished goods 18 26.9%
Normal goods 18 26.9%

Interpretation:

This chart shows that majority of respondents are Normal goods and Finished
goods i.e. 26.9% respondents are Normal goods & finished goods, 19.4%
respondents are Non-Durable goods , 16.4% respondents are Semi-finished goods
and remaining 10.4% respondents are Durable goods.

54
Which goods and services are most impacted by the good and
service tax?

Impacated Num. of Respondents Percentage

Routine Household 8 11.4%
goods
Electronic Items 20 28.6%
Entertainment Services 23 32.9%
All of the above 16 22,9%
None of this 3 4.3%

Interpretation:

This chart shows that majority of respondents are Entertainment service i.e.
32.9% respondents are Entertainment services, 28.6% respondents are Electronic
items, 22.9% respondents are all of the above, 11.4% respondents are routine
household goods and remaining 4.3% respondents are none of this.

55
Which of these goods and services ought to be tax-exempt?

Tax Exempt Num. of Respondents Percentage (%)

Mineral Water 3 4.3%
Butter & Ghee 2 2.9%
Pharmaceuticals & 30 42.9%
Medical supplies
All of the above 33 47.1%
None of this 2 2.9%

Interpretation:
This chart shows that majority of respondents are Pharmaceuticals& medical
supplies i.e. 42.9% respondents are Pharmaceuticals& medical supplies, 47.1%
respondents are all of the above, 4.3% respondents are mineral water and
remaining 2.9% respondents are Butter and Ghee and also None of this.

56
Does the Goods and Services Tax work to improve consumer spending power?

Response Num. of Respondents Percentage(%)

Strongly Agree 4 5.71%
Agree 18 25.71%
Neutral 22 31.43%
Disagree 21 30%
Stongly Disagree 5 7.14%

Interpretation :

This table shows that majority of respondents are Neutal about this
statement i.e. 31.43% respondents are Neutal, 30% respondents are
Disagree, 25.71% respondents are Agree , 7.14% respondents are
strongly Disagree and 5.71% are Strongly agree.

57
The very significant correlation between “Necessary Routine
Household products and income” is demonstrated by the GST act.

Response Num. of Respondents Percentage(%)

Strongly Agree 1 1.43%
Agree 24 34.29%
Neutral 30 42.86%
Disagree 13 18.57%
Stongly Disagree 2 2.86%

Interpretation:
This table shows that majority of respondents are neutral about this
statement i.e, 42.86% respondents are neutral , 34.29% respondents are
Agree, 18.57% respondents are Disagree, 2.86% respondents are
Strongly Disagree and 1.43% respondents are Strongly Agree.

58
Does GST eliminate the impact of cascading taxes on goods and
services?

Response Num. of Respondents Percentage(%)

Strongly Agree 2 2.86%
Agree 24 34.29%
Neutral 32 45.71%
Disagree 11 15.71%
Stongly Disagree 1 1.43%

Interpretation:

This table shows that majority of repondents are neutral about this
statement i.e. 45.71% respondents are neutral, 34.29% respondents are
Agree,15.71% respondents are Disagree,2.86% respondents are strongly
Agree and 1.43% respondents are Strongly Disagree.

59
The risk of tax fraud and evasion is decreased by the GST.

Response Num. of Respondents Percentage(%)

Strongly Agree 2 2.86%
Agree 23 32.86%
Neutral 28 40%
Disagree 16 22.86%
Stongly Disagree 0 0%

Interpretation:
This table shows that majority of respondents are neutral about the statement i.e.
40% respondents are neutral, 32.86% respondents are Agree, 22.86% respondents
are disagree and 2.86% respondents are strongly agree and remaining 2.86%
respondents are strongly agree about this statement.

60
Does the government profit from eliminating the value-added tax?

Response Num. of Respondents Percentage(%)

Strongly Agree 2 2.86%
Agree 32 45.71%
Neutral 30 42.86%
Disagree 5 7.14%
Stongly Disagree 0 0%

Interpretation:
This table shows that majority of respondents are agree about this statement i.e.
45.71% respondents are agree, 42.86% respondents are neutral, 7.14% repondents
are Disagree and remaining 2.86% respondents are Strongly Agree.

61
Does the place any accounting burden on businessmen?

Response Num. of Respondents Percentage(%)

Strongly Agree 1 2.86%
Agree 26 37.14%
Neutral 26 37.14%
Disagree 12 17.14%
Stongly Disagree 5 7.14%

Interpretation:
This table shows that majority of respondent are Agree and Neutral
about this statement i.e. 37.14% respondents are Agree and Neutral ,
17.14% respondents are Disagree, 7.14% respondents are Strongly
Disagree and 2.86% respondents are strongly Agree.

62
Consuming electronic goods is encouraged by the goods & services
tax.

Response Num. of Respondents Percentage(%)

Strongly Agree 0 0%
Agree 17 24.29%
Neutral 37 52.86%
Disagree 14 20%
Stongly Disagree 1 1.43%

Interpretation:

This table shows that majority of respondents are neutral about this
statement. i.e. 52.86% respondents are neutral,24.29% respondents are
Agree, 20% respondents are Disagree and 1.43% respondents are
strongly Disagree.

63
According to your observation, how does the GST rate affect
comparable goods?

Response Num. of Respondents Percentage(%)

Strongly Agree 3 4.29%
Agree 49 70%
Neutral 16 22.86%
Disagree 2 2.86%
Stongly Disagree 0 0%

Interpretation:

This table shows that majority of the respondents are agree about this
statement. i.e. 70% respondents are agree, 22.86% respondents are
Neutral, 4.29% respondents are Strongly agree and 2.86% respondets are
Disagree.

64
The GST has a direct impact on every consumer, according to the
Income Tax Act.

Response Num. of Respondents Percentage(%)

Strongly Agree 8 11.43%
Agree 55 78.57%
Neutral 7 10%
Disagree 0 0%
Stongly Disagree 0 0%

Interpretation:

This table shows that majority of respondents are agree about this
statement i.e. 78.57% respondents are Agree, 11.43% repondents are
Strongly Agree and remaining 10% respondents are neutral.

65
CHAPTER – 7

FINDINGS

66
 FINDINGS

1. Most of the respondents are Male.

2. Majority of the respondents are comes to the age group of 18-25 years.
3. Majority of respondents are graduate.
4. Majority of the respondents are related to employee category.
5. Most of the respondents monthly income is below 10000.
6. Many of the respondents opinion is the normal goods and finished goods for
most impacted by the GST.
7. Majority of respondents opinion is entertainment services are most impacted
by GST
8. Many of the respondents opinion is pharmaceuticals & medical supplies are
to be tax exempt by the GST.
9. Majority of respondents are neutral about the GST is work to improve the
consumer spending power.
10. Many of the respondents are Neutral about the very singnificant correaltion
between “ necessary routine household products and income ” is
demonstrated by the GST act
11. Most of the respondents are also neutal about this GST eliminate the impact
of cascading taxes on goods and services.
12. Majority of consumers is also neutral about this the risk of tax fraud and
evasion is decreased by the GST.
13. Majority of the consumers are agree about the government profit from
eliminating the value-added tax.
14. Majority of the respondents are agree and neutral about the place any
acoounting burden on bussinessmen.
15. Majority of respondents are agree about this consuming electronic goods is
encouraged by the goods & service tax.
16. Majority of people are agree about the GST rate affect comparable goods.
17. Majority of people are also agree about the GST has a direct impact on every
consumer, according to the income tax Act.

67
CHAPTER-8

CONCLUSION

68
 CONCLUSION

• Do the consumers get the benefits from GST? This is a very tricky question
and there is no definitive answer to this, as for the producers and the
government, the straight answer was YES. But the benefits from GST for the
consumers it is not that simple. This is because the GST will have different
impact on different goods and services used by consumers. One thing is for
certain that, it will bring down the prices and leading to increasing the
demand for goods and services which would benefit to the consumers, but
not everything will become cheaper.

• If the government will take necessary care for essential commodities prices,
there will not be any hike and then the consumers will not suffer. With all
these facts stated above, there is no denying the fact the GST impact on
consumers looks like a mixed stake, making few things cheaper and some
costlier.

69
❖ BIBLOGRAPHY

✓ https://books.google.com/books?id=1EPgDwAAQBAJ&printsec=frontcover&dq
=goods+and+service+tax&hl=en&newbks=1&newbks_redir=1&sa=X&ved=2ah
UKEwiR6fP_hIj6AhXzhcYKHQT1BKQQ6wF6BAgLEAE.
✓ https://www.slideshare.net/RohitPatlan/mba-research-on-gst
✓ https://www.studocu.com/in/document/university-of-calcutta/accounting-and-
finance/customers-perception-towards-gst-goods-service-tax/25025354
✓ https://www.gstcornor.com/gst-news-details.php?id=20375
✓ https://www.livemint.com/Politics/OuTNv0usNfIiRBklKa5B1O/GST-rates-to-be-
between-5-and-28.html
✓ http://14.99.188.242:8080/jspui/bitstream/123456789/13397/1/1NH18MBA66.pd
f
✓ https://blog.saginfotech.com/gst-impact-on-common-
man#:~:text=Positive%20Impact%20of%20GST%20on%20the%20Common%20
Man&text=GST%20reduced%20the%20burden%20of,will%20be%20a%20bit%2
0cheaper.
✓ https://icai.org/new_post.html?post_id=165#:~:text=The%20Institute%20of%20C
hartered%20Accountants%20of%20India%20(ICAI)%20is%20a,Chartered%20A
ccountancy%20in%20the%20country.

70
❖ QUESTIONNAIRE

Name:

E-mail ID:

1. Gender :
o Male
o Female

2. Age:
o 18 – 25
o 25 -35
o 35 & above

3. Education:
o Under graduation
o Graduation
o Post-graduation
o Any Other qualification

4. Occupation:
o Student
o Employee
o Businessman
o Any other

71
5. Monthly income:
o Below 10000
o 10000 – 20000
o 20000 – 30000
o 30000 & above

6. Which commodities, in your opinion, are most impacted by the GST?

o Durable Goods
o Non-Durable Goods
o Semi-Finished Goods
o Finished Goods
o Normal Goods

7. Which goods and services are most impacted by the good and service
tax?
o Routine Household Goods
o Electronic Items
o Entertainment services
o All of the above
o None of this

8. Which of these goods and services ought to be tax-exempt?

o Mineral Water
o Butter & Ghee
o Pharmaceuticals & Medical supplies
o All of the above
o None of this
72
9. Does the Goods and Services Tax work to improve consumer
spending power?
o Strongly Agree
o Agree
o Neutral
o Disagree
o Strongly Disagree

10. The very significant correlation between “Necessary Routine

Household products and income” is demonstrated by the GST act.
o Strongly Agree
o Agree
o Neutral
o Disagree
o Strongly Disagree

11. Does GST eliminate the impact of cascading taxes on goods and
services?
o Strongly Agree
o Agree
o Neutral
o Disagree
o Strongly Disagree

73
12. The risk of tax fraud and evasion is decreased by the GST.
o Strongly Agree
o Agree
o Neutral
o Disagree
o Strongly Disagree

13. Does the government profit from eliminating the value-added tax?
o Strongly Agree
o Agree
o Neutral
o Disagree
o Strongly Disagree

14. Does the place any accounting burden on businessmen?

o Strongly Agree
o Agree
o Neutral
o Disagree
o Strongly Disagree

74
15. Consuming electronic goods is encouraged by the goods & services
tax.
o Strongly Agree
o Agree
o Neutral
o Disagree
o Strongly Disagree

16. According to your observation, how does the GST rate affect
comparable goods?
o Strongly Agree
o Agree
o Neutral
o Disagree
o Strongly Disagree

17. The GST has a direct impact on every consumer, according to the
Income Tax Act.
o Strongly Agree
o Agree
o Neutral
o Disagree
o Strongly Disagree

75