A

PROJECT REPORT ON

" A STUDY OF GOODS AND SERVICES TAX"

SUBMITTED TO

SAVITRIBAI PHULE PUNE UNIVERSITY

IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR AWARD OF THE

DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

BY
KOMAL TATHOD
(MBA, FINANCE)

UNDER THE GUIDANCE OF

DR. PRADIP THOMBARE

SINHGAD INSTITUTE OF MANAGEMENT PUNE

ACADEMIC YEAR

(2021-2023)
 DECLARATION

I Komal Shashikant Tathod the undersigned, hereby declare that the project report
entitled,

“A Study OF Goods and Service Tax” written and submitted by me to the Savitribai
Phule Pune University, Pune in partial fulfillment of the requirement for the award
of degree of MBA under the guidance of Dr. Pradip Thombare, is my original
work except the topics on organizational profile and the conclusion drawn therein
are based on the material collected by myself.

Place: Pune Komal Shashikant Tathod

Date:
 INDEX

Chapter Particular Page

No.
Executive Summary 1

Chapter:1 Introduction 2

Chapter 2 Profile of the Company 9

Chapter 3 Research Methodology 14

Chapter 4 Data Interpretation 18

Chapter 5 Findings 39

Chapter 6 Conclusion 42

Bibliography 44

Annexure 46
 ACKNOWLEDGEMENT

It gives me indeed a great pleasure to present this project based “A Study

of Goods and Services Tax”. To the Savitribai Phule Pune University. I
am really thankful to the university to give us such an opportunity to
present this project.

I am very thankful to Dr. Pradip Thombare, my project guide of SIOM,

Pune for her co-operation and valuable guidance in completing the project.

I would also like to thank Mr. Sumit Kanhed, Director of E-Gram

Solution’s Pvt. Ltd. for their valuable guidance and support on completion
of this project in its presently.

I have done my work with my helpful team member. Every task very
knowledgeable and interesting for me.
 Executive summary

With the advent of Goods and Service tax (GST) in India proposed from July 1st 2017, the
biggest and most impactful change in Indian indirect taxation happened. The GST will replace
the existing indirect taxes on consumption and will be applied on both goods and services. For
goods, it will be levied destination based, whereas for services, it will be levied consumption
based.

Although it, may prove to be advantageous in the long run, it is possible that it may affect the
business and stability. The aim of the project is to understand what Fast moving consumer
goods (FMCG) Retailers and Wholesalers think about GST and its effect on the business.
Secondary as well as primary research was conducted to find out what retailers think about
GST and aspects related to that. Growing awareness, easier access, and changing lifestyles
have been the key growth drivers for the sector

56 Retailers and Wholesalers were selected at random from across Delhi and were interviewed
using a questionnaire having different type of multiple-choice questions. All responses were
collected and analyzed. A study on the hypothesis was conducted so that a clearer picture could
be obtained.

1
 CHAPTER: 1
INTRODUCTION

2
1.The Goods and Service Tax (GST) is considered to be one of the great reformations
implemented in India. It is a comprehensive, multi-stage, destination-based tax that will be
levied on every value addition. Introduction of GST is an important restructuring in indirect
taxation in India. It is an indirect tax, throughout India, to replace several other taxes levied by
the central and state Governments. It will consolidate all state economies under one roof. The
basic idea is to create a single, cooperative and undivided Indian market to make the country
stronger and powerful. In the light of above development, it is very important to analyze the
provisions of the draft law in detail and assess its impact on various sectors. 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.
Under GST various indirect taxes would be subsumed and hence it is going to result in a simpler
tax regime especially for Industries like FMCG.
1.1 Benefits of GST on the Indian economy
• Removal of bundled indirect taxes such as VAT, CST, Service tax, CAD, SAD, and Excise.
• Less tax compliance and a simplified tax policy compared to current tax structure.
• Removal of cascading effect of taxes i.e., removes tax on tax.
• Reduction of manufacturing costs due to lower burden of taxes on the manufacturing sector.
Hence prices of consumer goods will be likely to come down.
• Lower the burden on the common man i.e., public will have to shed less money to buy the
same products that were costly earlier.
• Increased demand and consumption of goods.
• Increased demand will lead to increase supply. Hence, this will ultimately lead to rise in the
production of goods.
• Control of black money circulation as the system normally followed by traders and
shopkeepers
will be put to a mandatory check.
• Boost to the Indian economy in the long run.

3
1.2 Effects of GST on Indian economy

• Reduces tax burden on producers and fosters growth through more production. The earlier tax
structure pumped with myriad tax clauses, prevented manufacturers from producing to them
• optimum capacity and retards growth. GST took care of this problem by providing tax credit to
the manufacturers.
• Different tax barriers, such as check posts and toll plazas, lead to wastage of unpreserved items
being transported. This penalty transforms into major costs due to higher needs of
buffer stock and warehousing costs. A single taxation system will eliminate this
roadblock.
• There is more transparency in the system as the customers will know exactly how much taxes
they are being charged and on what base.
• GST added to the government revenues by extending the tax base.
• GST provides credit for the taxes paid by producers in the goods or services chain. This is
expected to encourage producers to buy raw material from different registered dealers and is
hoped to bring in more vendors and suppliers under the purview of taxation.
• GST removes the custom duties applicable on exports. The nation’s competitiveness in foreign
markets increased on account of lower costs of transaction

4
 2. Literature Review

Empowered committee of finance ministers (2009), introduced their first discussion paper on
GST in India which analyses the structure and loopholes if any in GST. Vasanta Gopal (2011)
in the article GST in India, A big leap in the indirect taxation system discussed the impact of
GST on various sectors of the economy. The article further stated that GST is a big leap and a
new impetus to India's economic change. The constitution 115 amendment bill, 2011. Bird
(2012) summarizes in the article the GST/HST- creating an integrated sales tax in a federal
country the impact of GST will be on Canada. Garg (2014) in the article named basic concepts
and features of goods and services tax in India analyses the impact and GST on Indian tax
scenario and concluded that it will strengthen out free market economy.

Under the study, Kaur. M, et.al (2016), mainly focuses on what are the impacts of GST after
its implementation, the difference between the present indirect taxes and GST and also benefits
and challenges of GST after its implementation. Research being a qualitative research analysis
on how various goods and services are being taxed under GST. Researches use the consumer
price index which is a statistical estimate constructed using the prices of items collected
periodically. With the help of CPI researcher analysis, the significant impact of GST on various
items which comes unto 20-25%. Researchers conclude stating that GST would reduce the tax
burden and also play inactive role in the growth and development of our country.

Aurobindo Panda (KNT school of Law), Atul Patel (KIIT school of law), “THE IMPACT OF

GST (goods and service tax) ON THE INDIAN TAX SCENE (2010) AT SSRN” The research
paper analyses how GST would impact on Indian tax scenario. The authors have

given a brief history of Indian taxation and its structure. Background of GST outside India as

well as in India is also discussed. Authors concluded that GST would be beneficial for the

industry and the consumers. It would lead to an increase in revenue for the government.

5
In the study Monika Sherawat, et.al (December 2015) focuses on GST IN INDIA, A KEY TAX
REFORM for international journal of research- This research presents an overview of GST
concept. It explains the features and its live line of implementation in India. The paper also
highlights the advantages and disadvantages of GST in India. The author concludes that GST
fulfils the requirement of the simplified, user-friendly and transparent tax system. The author
also states that with the coming of GST, it will lead to higher more employment opportunities
and flourish GDP by 1-15 %.

Dr Mohan Kumar, et.al (December 2017) talks about GST AND ITS PROBABLE IMPACT
ON THE FMCG INDUSTRY IN INDIA, for the international journal of research in finance
and marketing. This paper analyzes the impact of the FMCG industry. The fast-moving
consumer goods (FMCG) sector of India compromises more than 50% of the food and beverage
industry. And another 30% from personal and household care. Presently the peak tax cost for
industry players amount to approximately 27% i.e. (excise duty of 12.5% and VAT ranging
from 12-15%) under the GST regime, its proposed that the revenue neutral rate would be in the
range of 16-19%.

R Shireman Naik et.al (December 2017) discuss ON PERSPECTIVE IMPACT OF GST ON

FMCG SECTOR IN INDIA”, for international journal of research in Business studies.

The fast-moving consumer goods (FMCG) segments are the fourth largest sector in the Indian

economy. The sector is likely to see a significant impact once the goods and service tax (GST)

bill is passed as the companies set warehouses across the states in a bid to have a more tax

efficient system. FMCG is one such sector directly having its impact on the large public. It is
very important to study the possible positive and negative impact of GST implementation on
the FMCG sector.

6
 Need for study

Fast Moving Consumer Goods (FMCG) goods are popularly named as consumer-packaged
goods. Items in this category include all consumables (other than groceries/pulses) people buy
at regular intervals. FMCG is also one of the fastest growing sectors among all the sectors in
the Indian economy. 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.

In this sector GST would have an impact on the pricing, working capital, contracts with
vendors and customers etc. The sale of retailers, wholesalers and the monthly budget of
common people regarding fast moving consumer goods (FMCG) should have an impact of
GST. Moreover, the concept of GST awareness among common man is an important matter to
be analyzed.

FMCG goods have faced an increased rate of tax after GST certain big players like Nestle
,HUL and P&G have been impacted by GST.

7
 Objectives of the study:

1. To understand the concept of GST.

2. To obtain a comprehensive overview of consumer’s, wholesaler’s and retailer’s awareness and
perceptions of GST.
3. To study about FMCG
4. To find out the impact of GST on sales of retailers and wholesalers.
5. To analyze the impact of changes in the tax rates of fast-moving consumer goods on consumers.
Is it positive or negative.
6. To analyze the issues in filing GST

8
 CHAPTER 2

COMPANY PROFILE

9
E-Gram Solutions Private Limited.

2.1 Company Overview:

E-gram Solutions Private Limited is a Private incorporated on 23 February 2018. It is

classified as non-Govt company and is registered at Registrar of Companies, Pune. Its
authorized share capital is RS. 100,000 and its paid-up capital is RS. 100,000. It is involved
in Business activities.

E-gram Solutions Private Limited's Annual General Meeting (AGM) was last held on N/A
and as per records from Ministry of Corporate Affairs (MCA), its balance sheet was last filed
on N/A.
Directors of E-gram Solutions Private Limited are Sumit Vilas Kanhed and Shilpa Deepak
Soni.

E-Gram Solutions Pvt. Ltd. is headquartered in Pune and

Promoted by eminent Professionals with track record of
consistent performance. The team has worked with
renowned advisory firms like EY, PwC, KPMG, Deloitte,
Citibank, BDO, BNP Paribus, Haribhakti & Co., Kirtane
& Pandit etc., across various services including Corporate Finance, Direct and Indirect
Taxation, Transaction, Internal Audit, Transfer Pricing, Risk Management and Assurance
Services. At E-Gram, we take pride in our ability to provide best in - class integrated services
to our clients. our services attract clients from different classes, ranging from owner-managed
business to any large that can help them in achieving their strategic objectives.

We help our clients in maximizing their performance by leveraging our expertise, so that they
thrive even in adversity and are torch bearers of their respective industry. E-Gram is built on
the passion to envisage the possibility of success over the probability of default. There is a
perfect blend of various minds and strong research which helps the clients to make a sound
decision.

10
E-Gram aims to channelize the financial truths into a winning pitch. The practice targets to
become a strategic partner to entrepreneurs and enterprises to help expand businesses beyond
their existing roots, professionalize their operations and enhance their Capital Efficiency.

11
2.2 Vision:

To become a trusted National GST SERVICE PROVIDERS 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.

2.3 Mission:

➢ Provide common Registration, Return and

➢ Payment services to the Tax payers.
➢ Partner with other agencies for creating an efficient and user-friendly GST Eco-system.
➢ Encourage and collaborate with GST Suvidha Providers (GSPs) to roll out GST Applications for
providing simplified services to the customers.

2.4 Values:

➢ Inclusiveness
➢ Efficiency
➢ Transparency
➢ Commitment
➢ Collaboration
➢ Excellence
➢ Innovation
➢ Accountability

12
2.5 Company Achievement:

E-Gram is India's fastest growing "GST Service Provider Company” “Attempting to provide
better GST solutions via technology and reduce the cost via automation. We help you to
register your Business anywhere in India to manage GST compliance at your fingertips”.

Company Details:

CIN U74999PN2018PTC174907

Company Name E-GRAM SOLUTIONS PRIVATE LIMITED

Company Status Active

ROC ROC-Pune

Registration Number 174907

Company Category Company limited by Shares

Company Sub Category Non-govt company

Class of Company Private

Date of Incorporation 23 February 2018

Age of Company 0 years, 6 month, 8 days

Activity Business activities N.E.C

Click here to see other companies involved in same activity.

13
 CHAPTER 3

RESEARCH METHODOLOGY

14
Research is a logical and systematic search for new and useful information on a particular topic.
Research methodology is a systematic way to solve a problem. It is a science of studying how
research is to be carried out. Essentially, the procedures by which researchers go about their
work of describing, explaining and predicting phenomenon are called research methodology.

3.1 Process of research methodology -

• Research design
• Population
• Instruments
• Questionnaire design
• Data collection
• Data analysis

3.2 Research design

The design in this research is a descriptive design to examine the impact of GST on Indian
economy as a whole and specifically on FMCG sector. Descriptive research aims to accurately
and systematically describe a population, situation or phenomenon. A descriptive research
design can be using a wide variety of quantitative and qualitative methods to investigate one
or more variables. The data was collected from various retailers and wholesalers of different
regions in Delhi by making a structured questionnaire. The data was filled by the respondents
through offline google form. The data also includes various tables s to aid the reader in
understanding the data distribution and hence provide a better and simplified extraction on
impact of GST on Indian economy and FMCG sector.

15
3.3 Scope of the project-

The project covers possible impact of GST on FMCG sector. It also explains the perspective
positives and negatives of GST implementation to FMCG sector. The project highlights various
problems faced by retailers and wholesalers while filing GST. They are also asked about the
effect of GST on the prices of raw materials and products. A questionnaire of 18 questions was
used to gauge the awareness of GST amongst retailers and wholesalers of FMCG. The
interview was for 15-20 minutes. Conclusion has been drawn after analysis of combines
process.

3.4 Type of research-

The project is descriptive in nature as it describes the various attributes of GST and its impact
on Indian economy in general and on FMCG specifically.

3.5 Method of data collection-

Primary data collected through sample survey from retailers and wholesalers of FMCG shops.
So, for this purpose I have most popular tool of primary data collection through direct
communication. The tool I have used is a structured questionnaire.

3.6 Questionnaire design

In this research, the questionnaire was designed in closed- ended questions format. All the
questions were multiple choice questions. They are easy to understand and the respondents
didn’t need much time on reading the questions again and again. The questions were straight
forward and quick to respond. Closed- ended questions come in a variety of forms and they are
usually categorized based on the need to have specific options for the respondents, so that they
can select them without any hesitation. When the data was obtained and compared,

these closed ended questions provided better insight. Closed – ended questions collect data that
can be used to draw generalized conclusions based on statistical analysis.

16
3.7 Statistical tools-

• MS Excel: pictorial and graphical representation of data

• MS Word: preparation of project and other reports

3.8 Sample-

While deciding about the sample of research, it is required from the research's point to pay
attention to these under mentioned points

1. Sample units-a decision has to be taken concerning a sampling unit before selecting a sample,
sampling unit may be a geographical area, so in this research sampling unit is New Delhi
2. Source of data- data required for the study was collected through primary sources
(market survey)
3. Sampling size- This refers to the number of items to be selected from the universe to constitute
a sample. This is a major problem for the researcher. The size of sample should neither be
excessively large or small, it should be optimum. This size of population must be kept in view
for this also limits the sample size. Sample size in this project. Sample size in this project is 56.

3.9 Data Analysis Method

Method of data analysis are primarily determined by the hypothesis to be tested or research

questions to be answered. According to our project data is analyzed through hypothesis testing.

We have used Chi-Square test to determine whether there is a significant relationship between

two categorical variables.

17
 CHAPTER: 4

DATA ANALYSIS

18
BRIEF OVER VIEW ON GST:

Overview on GST in India:

The Constitution (122nd Amendment) Bill, 2014, seeks to amend the Constitution

of India to facilitate the introduction of Goods and Service Act. It is the Indirect

Tax charged on local consumption and is borne by end consumers. It is collected at

each stage of the production and distribution chain by registered vendors, who

have to account for the tax on the value that they have added to goods and services.

France is the first country to introduce GST.

Almost 160 countries have introduced GST in some form.

While countries such as Singapore and New Zealand tax virtually everything at a single rate,

Indonesia has five positive rates, a zero rate and over 30 categories of exemptions.

The authority to levy tax is derived from the

Constitution of India which allocates the power to levy various taxes between

Centre and State.

19
Need for GST:

India ‘s recent progress towards economic growth stems from reforms undertaken

after the 1991 fiscal crisis, which lifted India from decades of slow growth under

Socialist rule and offered an opportunity to improve living conditions in the

immense, poor country. At the same time, much had changed in India after the

balance of payments crisis of 1991.

Indian policies became more positive towards promoting export and allowing

Foreign capital to participate in the process of India ‘s growth. Globalization and

liberalization have become the order of the day. The interdependence of economies

in their move for development compelled the Governments of all the countries to

follow the globalization policies adopted by the major economies of the world. To

survive and grow in this economic order, rational and competitive tax policies are

being adopted by every country.

India has also fallen in line with the requirement and has been initiating modifications in indirect taxes.

The recent proposals of Goods and Services Tax (GST) are considered as path-breaking in

the economic restructuring in general and in the taxation area in particular.

As the revenue to the government is increasing its figures from indirect taxes year by year,

this change will further boost the economy in a positive way which is necessary for the

international competence and globalizing the market and economy.

20
Various Studies on GST:

Chief Economic Advisor Committee: -

In December, 2015, Chief Economic Advisor (CEA) Arvind Subramanian,

released a comparative study of GST implementations in the federal systems

around the world. ‗Report on the Revenue Neutral Rate and Structure of Rates for

12

the Goods and Services Tax (GST) ‘. His report focused on the experiences of

European Union, Canada, Brazil, Indonesia, China (a unitary Nation) and

Australia. Subramanian found that most of these countries were facing ‗serious

challenges ‘in working with the GST.

Reserve Bank of India: -

The Reserve Bank of India too studied the GST implementations in various

countries and incorporated its findings in the report titled: ‗State Finances: A Study

of Budgets of 2016-17‘and released in May 2017. The RBI took notes from the

GST experiences of Argentina, Australia, Brazil, Canada, Malaysia, New Zealand

and Russia. It found flaws in all the GST models. On the basis of the global

experience, the RBI listed some of the risks that GST may bring to India in the new

taxation regime.

21
GST to be major test of Digital India success:

On July 1, 2015, the Prime Minister launched the Digital India programmed with the

objective of creating a participative, transparent and responsive government. And

on January 16, 2016, the much-talked-about Start-Up India, stand up India

initiative, aimed at encouraging new ventures and creating jobs, was kicked off

amidst much fanfare.

Without doubt, these are some of the most-important initiatives of the government

expected to transform the corporate sector. Along with these initiatives, there is yet

another game changer, the Goods and Services Tax (GST). All three are linked.

While Digital India and Start-Up India complement each other, GST is crucial for the success of

both these initiatives.

22
4.2 Analysis of the data

1. Your gender?

Gender Count

Male 11

Female 46

Gender

19%

81%

Male Female

INTERPRETATION

For the above Pie- chart 46 people out of 74 (80% approx.) were males which means that most
of the wholesalers and retailers in the FMCG sector are Males whereas 46 are Females.

23
 2. Are you a wholesaler or retailer of FMCG?

Particular Count

Retailer 47

Wholesaler 25

Social Service 1

Cafe 1

50

45

40

35

30

25

20

15

10

0
Retailer Wholesaler Social Service Cafe

INTERPRETATION

For the number of wholesalers (30) and retailers (27) is almost equal.

24
 3. Your age group?

Age Group Count

10 yrs-25 yrs. 28

26 yrs-50 yrs. 34

Above 50 yrs. 12

35

30

25

20

15

10

0
10 yrs-25 yrs 26 yrs-50 yrs Above 50 yrs

INTERPRETATION

In the age group of most retailers and wholesalers is between 26 years – 50 years where as 18
people above 50 years and 19 people between 10 years and 25 years.

25
 4. How many employees do you have?

Particular Number Of Employee

Less than 5 employees 32

5-15 employees 28

More than 15 employees 14

Number Of Employee

19%

43%

38%

Less than 5 employees 5-15 employees More than 15 employees

INTERPRETATION

In the above pie-chart the greatest number of employees (33) that a wholesaler and retailer has
is between 5 and 15 employees whereas least number of employees (11) are more than 15
employees and 13 have less than 5 employees

26
 5. What percentage of your goods get expired?

Particular Number of Good Expire

0%-5% 56

6%-16% 18

More than 17% 0

Chart Title
60

50

40

30

20

10

0
0%-5% 6%-16% More than 17%

INTERPRETATION

For 45 sellers 0%-5% of the goods get expired on the other hand for 8 sellers 6%-16% of the
goods get expired and the only 4 sellers the percentage of goods expired is more than 17%

27
 6. Do you have a GST number?

Particular Count

Yes 63

No 5

COUNT
Yes No

7%

93%

INTERPRETATION

In the above pie-chart 54 people have a GST number whereas 3 people do not have a GST
number this shows the awareness of people.

28
 7. Is GST a good step by the government?

Particular Count

No 14

Yes 60

Count
70

60

50

40

30

20

10

0
No Yes

INTERPRETAION

Most of the people believe that GST is a good step by the government (40). Whereas 14 people
believe that it is not a good step that the government took.

29
 8. Has GST affected your business?

Particular Count

Yes 32

No 42

Count

Yes No

INTERPRETATION

According to the above pie-chart 32 people believe that their business has been affected due to
GST and 42 believe that it hasn’t.

30
 9. Have you received GST refund?

Particular Count

Yes 28

No 45

50

45

40

35

30

25

20

15

10

0
Yes No

INTERPRETATION

As in the above Coolum 74 people have never received a GST refund and 28 people have
received a GST refund.

31
 10. Do you think that GST has made FMCG expensive?

Particular Count

Strongly agree 5

Agree 24

Neutral 33

Disagree 12

Strongly Disagree 0

Count

0% 7%
16%

32%

45%

Strongly agree Agree Neutral Disagree Strongly Disagree

INTERPRETATION

Out of 74 respondents 33 i.e. 45% are neither agree or disagree that GST has made FMCG
expensive. Only 5 respondents are strongly agree that GST has made FMCG expensive.

32
 11. Should FMCG be given relief under GST as they are daily use?

Particular Count

Strongly Agree 37

Agree 17

Neutral 37

Disagree 13

Strongly Disagree 4

Chart Title
40
35
30
25
20
15
10
5
0
Particular Strongly Agree Agree Neutral Disagree Strongly
Disagree

Series1 Series2

INTERPRETATION

Out of 74 respondents, a majority of 37 respondent thinks that FMCG should be given relief
under GST as they are daily use.

33
 12. Has the purchasing power of consumer reduced?

Particular Count

Strongly Agree 3

Agree 18

Neutral 7

Disagree 20

Strongly Disagree 26

26
20
18

7
3

STRONGLY AGREE NEUTRAL DISAGREE STRONGLY

AGREE DISAGREE

INTERPRETATION

According to these graphs out of 74 respondents, 26 respondents are strongly disagreeing with
the purchasing power of consumer reduced.

34
 13. Have the prices of raw materials increased?

Particular Count

Yes 34

No 40

Yes No

46%
54%

INTERPRETATION

Out of the 74 respondents’, are not agree with the statement of the price of raw materials
increased.

35
 14. After GST has the Credit period increased for FMCG?

Particular Count

Yes 36

No 38

38
36

YES NO

INTERPRETATION

Most of the people believe that GST has the credit period increased for FMCG (36). Whereas
38 people believe that it is not a good step that the government took.

36
 15. How has your exempt been with GST?
Particular Count

Good 20

Fair 34

Poor 20

34
20

20

GOOD FAIR POOR

INTERPRETATION

Out of 74 respondents, 34 responses are fair for has the exempt been with GST.

37
 16. Is GST a way for the government to earn more taxes?

Particular Count

Strongly Agree 5

Agree 14

Neutral 40

Disagree 14

Strongly Disagree 1

INTERPRETATION

According to the above pie-chart most of the people (30) are neutral and don’t have an opinion
on it whereas 12 people agree that it is a way to make more taxes 10 people strongly agree 2
people disagree and 3 people strongly disagree

38
CHAPTER:5

FINDINGS

39
 FINDINGS

• It can be found from the above discussion that GST will provide relief to
wholesaler and retail 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
center and sates majorly through widening of tax base and improvement in tax
compliance.

• It can be further finding that GST have a positive impact on various sector and

• Industry Centre has decided to review the existing exemption from central
excuse duty so that list of goods exempts from CGST and SGST list and 99 items
exempted from VAT are taken off from both the components of GST VAT has to some
extent reduced tax evasion and frauds

40
CHAPTER:6

CONCLUSION

41
 Conclusion

GST will bring in transparent and corruption-free tax administration, removing the current
shortcomings in indirect tax structure. GST is business-friendly as well as consumer-friendly.
GST in India is poised to drastically improve the positions of each of these stakeholders. We
need a change in the taxation system which is better than earlier taxation. This need for change
leads us to ‘need for GST’.

GST will allow India to better negotiate its terms in the international trade forums aimed at
increasing the taxpayer base by bringing SMEs and the unorganized sector under its
compliance. This will make the Indian market more stable than before and Indian companies
can compete with foreign companies.

GST is a recent policy introduced. GST aims at simpler tax regime and transparency in all
transaction. FMCG sector which is an important player in the market sector has been impacted
by GST to some extent. This research concludes that GST has an impact on various aspects of
FMCG companies. Since it has only been three years from when the GST law came into force,
the extent or degree of such impact cannot be completely fathomed. It would require more time
evaluate whether GST would prove to be beneficial to FMCG retailers and wholesalers.

After questioning 56 retailers and wholesalers about GST we can conclude that their businesses
have been affected due to GST.

According to our analysis we have concluded that retailers and wholesalers who file GST on
their own face problems while filing GST. It is a new way of filing tax so traditional business
have issues while filing GST.

The increase in prices of raw material of FMCG has effect on the price of goods therefore the
price of raw material has a direct relation on the sales and the hiked price ultimately is paid by
the consumers We also found out that if the government provides relief on FMCG the
purchasing power of the Consumer will be affected as the prices will fall down the purchasing
power will go up.

The purchasing power also has relationship with the credit period. GST is followed by many
top economies in the world and hopefully it will bear fruit to the Indian economy as well.

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BIBLIOGRAPHY

43
Bibliography

Dash. A (2017) “Positive and Negative impact of GST on Indian Economy”, International
Journal of Management and Applied Science, ISSN: 2394-7926 Volume-3, Issue-5, pp160-
162.

Dang Priya Jha, et al., (2004) An empirical view of the different types of consumer
promotions in India, working paper, Indian institute of management, Ahmedabad. [3]
Jayashree R., R Kotnal., (2017) influence of „GST‟ on the fast moving consumer goods ,
International Journal of advanced Research and Development, Volume 2; Issue 6 pp12-15

Chavan, R. (2017). A study on impact of goods and service tax on Indian industries with
reference to FMCG sector.

http://www.gstcouncil.gov.in/

https://cleartax.in/s/gst-consumer-fmcg

https://sinewave.co.in/blog/how-gst-has-impacted-the-fmcg.aspx

https://www.ibef.org/industry/fmcg.aspx

https://kb.icai.org/pdfs/PDFFile5b432d754ab853.80651823.pdf

https://cleartax.in/s/gst-rates

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ANNEXURES

Questionnaire

Name:

Q1. Your gender

A. Male B. Female. C. Other

Q2. Age group

A. 10-25 B.26-50 C. Above 50

Q3. Are you a wholesaler or retailer or FMCG?

A. Wholesaler B. Retailer

Q4. How many employees do you have?

A. 0-5 B. 5-15. C. More than 15

Q5. What percentage of your goods get expired?

A. 0%-5%. B. 6%-16%. C. More than 17%

Q6. Do you have a GST number?

A. Yes B. No

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Q7. Is GST a good step taken by the government?

A. Yes B. No

Q8. Has GST effected your business?

A. Yes. B. No

Q9. Do you file GST yourself?

A. Yes B. No

Q10. Do you face problems while filing GST?

A. Yes. B. No

Q11. Has the consumption of FMCG affected due to GST?

A. Yes. B. No

Q12. Have you ever received GST refund?

A. Yes. B. No

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Q13. How has your experience been with GST?

A. Good. B. Fair. Poor

Q14. Do you think that GST has made FMCG expensive?

A. Strongly agree
B. Agree
C. Neutral
D. Disagree
E. Strongly disagree

Q15. Should FMCG be given relief under GST as they are daily use ?

A. Strongly agree
B. Agree
C. Neutral
D. Disagree
E. Strongly disagree

Q16. Is GST a way for government to take more taxes?

A. Strongly agree
B. Agree
C. Neutral
D. Disagree
E. Strongly disagree

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Q17. Has the purchasing power of consumers reduced?

A. Strongly agree
B. Agree
C. Neutral
D. Disagree
E. Strongly disagree

Q18. Have the prices of raw materials increased?

A. Yes. B. No

Q19. After GST has the credit period increased for FMCG?

A. Yes. B. No

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