RETAILER’S PERCEPTION TOWARDS

IMPLEMENTATION OF GOODS AND SERVICES

TAX SYSTEM

PROJECT REPORT
SUBMITTED TO SCHOOL OF SOCIAL SCIENCES

SUBMITTED BY: UNDER THE SUPERVISION OF:

Harshita Bhat (416-BCH-COM-19) Dr. Ramandeep Kour

19040540011 (University roll no.) Assistant Professor

Department of Commerce

School of Social Sciences

Cluster University, Jammu

 SCHOOL OF SOCIAL SCIENCES

CLUSTER UNIVERSITY OF JAMMU

CERTIFICATE
This is to certify that the project report entitled “RETAILERS PERCEPTION TOWARDS
IMPLEMENTATION OF GOODS AND SERVICE TAX SYSTEM” being submitted by
Harshita Bhat to Department of Commerce, School of Social Sciences for the reward of
B.Com Honours- Semester 3rd, is a record of bonafide document work carried out by the
respective candidate under the able guidance and supervision of Dr. Ramandeep Kour.

It is further approved and certified by the following signatures:-

________________ _________________ __________________

Dr. Ramandeep Kour Miss Prinka Dogra Dr. Sindhu Kapoor

(Project Coordinator) (Co-Supervisor) (Dean)

School of Social Sciences

Cluster University, Jammu

Date: ____________

I
 SCHOOL OF SOCIAL SCIENCES

CLUSTER UNIVERSITY OF JAMMU

ACKNOWLEDGEMENT

It is certified that I Harshita Bhat submit the project report entitled “Retailers Perception
Towards Implementation Of Goods And Service Tax System” to best of my knowledge
and ability in lieu of the award for B.Com Honours Semester 3 rd.. I hereby thank the honoured
Project Coordinator and Co-Supervisor for their effective coordination and supervision of the
project report.

II
 PREFACE

Goods and Service Tax is all set to be a game changer for the Indian economy. The tax is
expected to reduce the concept of ‘tax on tax’, increase the gross domestic product of the
economy and reduce prices. . In India, there are different indirect taxes applied on goods and
services by central and state government. GST is intended to include all these taxes into one tax with
seamless ITC and charged on both goods and services. As a part of our course curriculum and in
order to gain the practical knowledge in the field of management, we are required to make a
report on “Retailers perception towards implementation of Goods and Service Tax
system”. The purpose of this training is to expose the students and managements science to
real business situation.

The main objective of this study is to find out the retailers perception towards
implementation of Goods and Service Tax system

In the study of this project we had a great experience of various strategies that can be
applied in the development of the project. Constructive criticism and feedback are cordially
invited.

 The first chapter entitled ‘Introduction’ traces the meaning of retailer’s perception
towards the implementation of Goods and Service tax.
 The second chapter presents ‘Review of Literature’. It is a vital exercise to know
the extent of existing research.
 The third chapter entitles ‘Research design and methodology’ discussed the
objective and hypothesis of the study.
 The fourth chapter entitled ‘Demographic Representation’. Here we discussed the
demographic profile of the respondents.
 The fifth chapter entitled ‘Findings and Recommendations’. Here we compiled all
the findings from the study.

III
 CONTENTS

S.NO. CONTENTS Page No.

Certificate I
Acknowledgement II
Preface III
List of contents IV
List of tables V
List of Figures VI
1 INTRODUCTION 1-13
2 REVIEW OF LITERATURE 14-19
3 RESEARCH METHODOLOGY 20-23
4 DATA ANALYSIS AND INTREPRETATION 24-43
5 FINDINGS AND RECOMMENDATIONS 44-47
6 ANNEXURE 48-50
7 QUESTIONNAIRE 51-52
8 BIBLIOGRAPHY 53

IV
 List of Tables

Table 4.1 Frequency distribution of Gender

Table 4.2 Frequency distribution of Age

Table 4.3 Type of Business

Table 4.4 Burden of GST on respondents

Table 4.5 Change in demand

Table 4.6 Transition to GST

Table 4.7 Issue in compliance with e-bill mechanism

Table 4.8 Issues faced in claiming refund

Table 4.9 Legal formalities

Table 4.10 GST will be beneficial in long run

Table 4.11 Difficulty in understanding GST

Table 4.12 Confusion in implementation of GST

Table 4.13 GST a fair system

Table 4.14 GST guide is lengthy and difficult to understand

Table 4.15 System beneficial to both government and retailers

Table 4.16 GST helped in easy movement of goods

Table 4.17 GST facilitates ease of doing business

Table 4.18 GST facilitates reduction of overall tax

Table 4.19 GST caused change in business after its implementation

V
 List of Figures

Figure 4.1 Bar Graph for Gender

Figure 4.2 Bar Graph of Age

Figure 4.3 Bar Graph of Type of Business

Figure 4.4 Pie Chart of Burden of GST on respondents

Figure 4.5 Pie Chart of Change in demand

Figure 4.6 Pie Chart of Transition to GST

Figure 4.7 Pie Chart of Issue in compliance with e-bill mechanism

Figure 4.8 Pie Chart of Issues faced in claiming refund

Figure 4.9 Pie Chart of Legal formalities

Figure 4.10 Pie Chart of GST will be beneficial in long run

Figure 4.11 Pie Chart on Difficulty in understanding GST

Figure 4.12 Pie Chart on Confusion in implementation of GST

Figure 4.13 Pie Chart on GST a fair system

Figure 4.14 Pie Chart on GST guide is lengthy and difficult to understand

Figure 4.15 Pie Chart on System beneficial to both government and retailers

Figure 4.16 Pie Chart on GST helped in easy movement of goods

Figure 4.17 Pie Chart on GST facilitates ease of doing business

Figure 4.18 Pie Chart on GST facilitates reduction of overall tax

Figure 4.19 Pie Chart on GST caused change in business after its implementation

VI
IMPACT OF GST
ON RETAILERS

CHAPTER- 1
INTRODUCTION

VII
 CHAPTER 1

INTRODUCTION

1.1 Introduction

Taxation is the inherent power of the state to impose and demand contribution upon persons,
properties, or right for the purpose of generating revenues for public purposes. Taxes are
enforced proportional contributions from persons to property levied by the law making body
of the state by virtue of its sovereignty for the support of the government and all public needs.
Tax is today an important source of revenue for the government in all the countries. More
than 3000 years ago, the inhabitants of ancient Egypt and Greece used to pay tax,
consumption taxes and custom duties. Income tax was first introduced in India in 1860 by
James Wilson who becomes Indians First Finance Member. In order to meet the losses
sustained by the government on account of military mutiny of 1857. In 1918 A New Income
Tax bill was passed and which was further again replace in 1922. Finally, The Ministry of
Law and Finance the Income Tax was passed in 1961 and brought came in force on 1st April
1962. and this is also known as the Financial Year in Current Era. I e. (01.04.18 –
31.03.2019)

All governments require payment of money taxes from people. Government use revenues to
pay soldiers and police to build dams and roads, to operate schools and hospitals, to provide
food to the poor and medical care facilities etc and also hundreds of other purposes without
taxes to fund its activities, govt could not exist. So, taxation is the most important source of
revenues for modern government typically according for 90% or more of their income. The
reason for levy of taxes is that they constitute the basic source of revenue to the government.
Revenue so raised is utilized for meeting the expenses of government like defence, provision
of education, health care, Infrastructure facilities like roads, dams etc.

1.1.1 Reasons of Taxation-

1. Provide the basic facilities for every citizen of country.

2. Finance government multiple projects and schemes.

3. Protection of Life.

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4. Responsibility of citizen to the Nation.

1.1.2 Meaning of Tax:

The word Tax came from Latin word “Taxo , Tax are '' which means to asses or estimate. Tax
can be defined in the following ways: “The compulsory payments made to governments
associated with certain activities or a general purpose, compulsory contribution by the people
to public treasury to meet the expenditure of government is called Tax.” A specific amount of
money demanded by government from its public levied on their income, sales, wealth etc.
Taxes are the price we pay for a civilized society. Tax in general, is the imposition of
financial charge upon an individual or a company by the govt of India or their respective state
or similar other functional equivalents in a state. The computation and imposition of the
varied taxes prevalent in the country are carried on by the Ministry of Finance Department of
Revenue.

1.1.3 Essentials Characteristics of Tax:

1. It is an enforced Contribution.

2. It is generally payable by Money.

3. It proportionate in character, usually based on ability to pay.

4. It is levied on person and property with the jurisdiction of the state.

5. It is levied for public purpose.

6. It is commonly required to be paid a regular intervals.

1.2 GST- GOODS AND SERVICES TAX

Goods and Services Tax (GST) is an indirect tax (or consumption tax) imposed in India on

the supply of goods and services. It is a comprehensive multistage, destination based tax:
comprehensive because it has subsumed almost all the indirect taxes except few; multi-staged
as it is imposed at every step in the production process, but is meant to be refunded to all
parties in the various stages of production other than the final consumer and as a destination
based tax, as it is collected from point of consumption and not point of origin like previous
taxes.

IX
Goods and services are divided into five different tax slabs for collection of tax - 0%, 5%,
12%, 18% and 28%. However, petroleum products, alcoholic drinks, and electricity are not
taxed under GST and instead are taxed separately by the individual state governments, as per
the previous tax regime. There is a special rate of 0.25% on rough precious and semi-precious
stones and 3% on gold. In addition a cess of 22% or other rates on top of 28% GST applies
on few items like aerated drinks, luxury cars and tobacco products. Pre-GST, the statutory tax
rate for most goods was about 26.5%, Post-GST, most goods are expected to be in the 18%
tax range. The tax came into effect from July 1, 2017 through the implementation of One
Hundred and First Amendment of the Constitution of India by the Indian government. The
tax replaced existing multiple flowing taxes levied by the central and state governments.

The tax rates, rules and regulations are governed by the GST Council which consists of the
finance ministers of centre and all the states. GST is meant to replace a slew of indirect taxes
with a federated tax and is therefore expected to reshape the country's 2.4 trillion dollar
economy, but not without criticism.[3] Trucks' travel time in interstate movement dropped by
20%, because of no interstate check posts.[4]

1.2.1 History of GST in INDIA

In the Indian System, first time discussion on GST has been started in 2000. In 2000,
The Vajpayee Govt. started discussion on GST by setting up an empowered committee. The
committee was headed by Asim Dasgupta (FM of West Bengal).

Later on in 2002 to 2004, The Kelkar Task Force on Implementation of Fiscal responsibility
& Budget Mgmt. (FRBM) Act, 2003 and suggested a comprehensive Goods & Service Tax.

In 2006, A proposal to introduce a national level GST by 1st April 2010 was first mooted in
Budget of FY 2006-07.

In 2007, In May, EC (empowered committee) of state FMs, on request, started work on GST
roadmap. Further in Nov, The Joint Working Group submitted its report to the EC on 19th
Dec.

In 2008, EC finalized views over GST and submitted report named “A model and roadmap
for GST in India.

In 2009, First discussion paper on GST released by EC.

X
In 2010, Mentioned in speech of FM – “GST to be introduced in April 2011”.

In 2011, The Constitution 115th amendment bill introduced in Lok Sabha for levying of GST
on all goods & services except specified goods.

In 2013- In Aug, Standing Committee submitted its report on GST. In Nov, EC rejected
Govt’s proposal to include petroleum products.

In 2014- The Constitution 122th amendment bill presented in Lok Sabha or levy of GST
on 19th Dec 2014.

In 2015 – The Constitution 122th amendment bill passed in Lok Sabha for levy of GST
on 6th May 2015.

In 2016 – The Constitution 122th amendment bill passed in Rajya Sabha for levy of GST on
3rd Aug 2016. Further, 8th Aug 2016, in Lok Sabha, unanimously passed the 122nd
Constitutional Amendment Bill as amended by the Rajya Sabha with all 443 members voting
in favor.

The Goods and Services Tax (GST), which has replaced the Central and State indirect taxes
such as VAT, excise duty and service tax, was implemented on July 1, 2017.

In this article, let us understand the differences between VAT and GST and their
implications.

GST has eliminated the cascading effect of taxes on the economy

1.2.2 Disadvantages of VAT:

 Cascading effect of taxes

 It was not possible to claim Input Tax Credit (ITC) on service under VAT
 Different VAT rates in different states
 Different VAT laws in every states

1.2.3 Purpose of GST:

 Designed to be a single, comprehensive, destination-based taxation concept that will

unify the entire country in terms of how the tax is collected, GST has revolutionized
the Indian taxation system.

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  Single Umbrella Tax Rate: GST shall replace a number of indirect taxes being levied
by union and state government.
 Removing Cascading Effect: GST is intended to remove Tax on Tax Effect and
provides to common national market for Goods and Services.
 GST will also help to build a transparent and will increase efficiency in tax
administration.
 To boost our economy and enable us to compete at the global front and also to foster a
common market across the country.
 Only three accounts; CGST, SGST, IGST have to be maintained. So it will be
Simplified and cost saving system as procedural cost reduces due to uniform
accounting for all types of taxes.

1.2.4 Salient Features of GST

The salient features of GST are as under:
i. The GST would be applicable on the supply of goods or services as against the
present concept of tax on the manufacture and sale of goods or provision of services.
It would be a destination-based consumption tax.
ii. It would be a dual GST with the Center and States simultaneously levying it on a
common tax base. The GST to be levied by the Center on intrastate supply of goods
and / or services would be called the Central GST (CGST) and that to be levied by the
States would be called the State GST (SGST).
iii. The GST would apply to all goods other than alcoholic liquor for human
consumption and five petroleum products, viz. petroleum crude, motor spirit (petrol),
high speed diesel, natural gas and aviation turbine fuel. It would apply to all services
barring a few to be specified.
iv. Tobacco and tobacco products would be subject to GST.
v. The GST would replace the following taxes currently levied and collected by the
Center: a. Central Excise duty b. Duties of Excise (Medicinal and Toilet Preparations)
c. Additional Duties of Excise (Goods of Special Importance) d. Additional Duties of
Excise (Textiles and Textile Products) e. Additional Duties of Customs (commonly
known as CVD) f. Special Additional Duty of Customs (SAD) g. Service Tax h.
Central Surcharges and Cesses so far as they relate to supply of goods and services.
vi. The CGST and SGST would be levied at rates recommended by the GST Council.

XII
vii. There would be a floor rate with a small band of rates within which the States may fix
the rates for SGST.
viii. The list of exempted goods and services would be common for the Center and the
States which would be finalized by GST Council.
ix. Tax payers shall be allowed to take credit of taxes paid on inputs (input tax credit)
and utilize the same for payment of output tax. However, no input tax credit on
account of CGST shall be utilized towards payment of SGST and vice versa. The
credit of IGST would be permitted to be utilized for payment of IGST, CGST and
SGST in that order.
x. Exports shall be treated as zero-rated supply. No tax is payable on export of goods or
services but credit of the input tax related to the supply shall be admissible to
exporters and the same can be claimed as refund by them.
xi. Import of goods and services would be treated as inter-State supplies and would be
subject to IGST in addition to the applicable customs duties. The IGST paid shall be
available as ITC for payment of taxes on further supplies.
xii. The laws, regulations and procedures for levy and collection of CGST and SGST
would be harmonized to the extent possible. 

1.2.5 Types of Categories under GST rate The GST tax is levied based on Revenue Neutral
Rate. For the purpose of imposing GST tax in India, the goods and services are categorized in
to four.

These are four categories of goods and services are follows:

Exempted Categories under GST in India:

The GST and council and other GST authorities notifies list of exempted goods. Such goods
are not fallen under payment of GST tax. The authorities may modify or amend the list time
to time by adding deleting any item if required by notification to public.

Essential Goods and Services for GST in India:

Essential Category of goods and services are charged very lower GST rate. Essential goods
and services are the goods and services for necessary items under basic importance.

XIII
Standard Goods and services for GST in India:

A major share of GST tax payers falls under this category of Standard Goods and Service. A
Standard rate is charged against the goods and services under this category.

Special Goods and Services for GST tax Levy:

Under special category of goods and services, GST rates would be high. Precious metals
including luxury items of goods and services fall under special goods and services for GST
rate implementations.

1.2.6 GST rates in India at a glance:

Exempted categories:

Commonly used Goods and Services: 5%

Standard Goods and Services fall under 1st Slab: 12%

Standard Goods and Services fall under 2nd Slab: 18%

Special category of Goods and Services including Luxury Goods: 28%

1.2.7 Taxes subsumed:

GST subsumed the following central and state taxes: -

CENTRAL TAXES SUBSUMED STATE TAXES SUBSUMED

 Central excise Duty (except five  State value added Tax (VAT)/Sales
petroleum and tobacco products) Tax (except five petroleum products
and alcoholic liquor for human
consumption)
 Additional Excise Duty  Entertainment Tax (other than the
tax levied by the local bodies)
 Service Tax  Central Sales Tax (levied by the
Centre and collected by the states)
 Additional Customs Duty commonly  Octroi and entry tax
known as Countervailing Duty
 Special additional duty of customs  Purchase tax
 Luxury Tax
 Taxes on lottery, betting and
gambling

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1.2.8 Components of GST

There are three components of GST as follows: -

 Central Goods and Services Tax (CGST):

Central Goods and Services Tax or CGST is the indirect tax levied by the Central
Government. It is levied on the transaction of goods and services which are undertaken
within the state i.e. intrastate. The tax collected under the head “CGST” is payable to the
central government treasury.

The CGST is charged to compensate the central government for previously existed indirect
taxes such as

 Central Excise Duty,

 Service Tax,
 Duties of Custom,
 Surcharges,
 Cesses, etc.

The CGST is charged along with SGST and at the same rates. This is done as per the Dual
GST model followed in India, where both central and state governments have their separate
taxation legislatures

 State Goods and Services Tax (SGST)

State Goods and Services Tax or SGST represents the tax imposed by the State Government.
SGST is levied on the transaction of intrastate sales of goods and services, i.e. sales made
within a state.

SGST is charged along with and at the equal rates that of CGST on a good or service. The tax
revenue under SGST goes to the State Government treasury or the eligible Union Territory,
where the consumption of goods or service has taken place.

 Integrated Goods and Services Tax (IGST)

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IGST is levied on all interstate supply of goods and services by the Central Government.
Unlike, CGST, SGST, & UTGST which are levied upon the supply of goods or services
within a state.

IGST has provided a standardization to taxation on the supply of goods and services made
outside the state. This applies both on a supply made outside the state and those made outside
the country.

The rate of IGST would always be approximately equal to the CGST rate plus SGST rate.

1.3 GST AND REATIL BUSINESS

Retail business in India is a key pillar of the economy, accounting for about 10% of GDP.
The Indian retail market is estimated to be more than US$ 600 billion and one of the top five
retail markets in the world by economic value. The imminent implementation of Goods &
Services Tax (GST) is expected to result in greater transparency, an improved flow of credit,
and reduced trade barriers from a tax perspective. The timely release and revision of draft
GST model law, GST rules and documentation templates reflect the government’s
commitment and keenness to implement the GST law in India in 2017. It is also widely
agreed that GST will usher in a series of changes to how businesses will operate and the
Retail Industry will be no exception. This thought piece highlights some of the key areas
impacted and a number of changes that the industry will need to imbibe over the coming
months to ensure that GST is effectively implemented.

“I think that the passage of the Goods and Services Tax is seen as a very favourable
development by Retailers headquartered in India and by global Retailers considering
expansion into India. The move is seen as business friendly and a step towards making it
easier to do business in India.”

– Nancy Millett, Consumer & Industrial Products, Deloitte Global

Tax Leader

Below five factors will significantly change the dynamics of the retail sector in India:
a. Reduced taxes – In the current tax structure, most of the retail products are subject to 30
% indirect taxes on average. This includes excise duty, VAT, CST, service tax on
warehousing, consulting and rent, Octroi and entry tax. The main impact of GST on retailers
will be a significant reduction of the tax burden on the retailers.

XVI
b. Seamless Input tax credit – In the current tax structure, input tax credit is available on
VAT but not available on service tax and import duty. In the proposed GST regime, there will
be set off on taxation starting from producer’s point to the consumer point. GST will make an
impact by eliminating the cascading effect of taxes thereby reducing the total tax burden on
the retail sector.

c. Increased Supply chain efficiency –Major impact of GST will be on the warehouse

networks of retail industries. As CST is abolished, Industries will have no motivation to
operate warehouses in each state wherever they operate. This will lead to 20 % – 30 %
consolidation of warehouses. Transportation will benefit due to state boundaries becoming
insignificant. The long queues and wait time at check posts and state boundaries will be
reduced
further reducing the lead-time. The impact of GST will be evident on supply chains, as their
designs would be efficiency-oriented and not in alignment with the taxation system.

d. Tax on gifts and promotional items – As per the model GST law, any supply without any
consideration will attract tax. It is a common practice in Indian retail sector to offer free
products for promotion or one plus one free offers. In the current taxation system; these free
products, samples and gifts were tax-free. Once GST is implemented, such gifts will also be
considered for tax and the retailers would have to rethink their promotional strategy.

e. Better Opportunities & Growth of Retail Market – Upon implementation of GST,

analysts predict unification of markets. Thus, biggest of the impacts of GST will be in the
widening of potential markets for the retailers. Retailers would be ready to explore markets
across diminished boundaries leading to better growth of the retail market.

1.4 Challenges of GST implementations:

a. With respect to Tax Threshold

The threshold limit for turnover above which GST would be levied will be one area which
would have to be strictly looked at. First of all, the threshold limit should not be so low to
bother small scale traders and service providers. It also increases the allocation of
government resources for such a petty amount of revenue which may be much more costly
than the amount of revenue collected. The first impact of setting higher tax threshold would
naturally lead to less revenue to the government as the margin of tax base shrinks; second it
XVII
may have on such small and not so developed states which have set low threshold limit under
current VAT regime.

b. With respect to nature of taxes

The taxes that are generally included in GST would be excise duty, countervailing duty, cess,
service tax, and state level VAT among others. Interestingly, there are numerous other states
and union taxes that would be still out of GST.

c. With respect to number of enactments of statutes

There will two types of GST laws, one at a center level called ‘Central GST (CGST)’ and the
other one at the state level - ‘State GST (SGST)’. As there seems to have different tax rates
for goods and services at the Central Level and at the State Level, and further division based
on necessary and other property based on the need, location, geography and resources of each
state.

d. With respect to Rates of taxation

It is true that a tax rate should be devised in accordance with the state’s necessity of funds.
Whenever states feel that they need to raise greater revenues to fund the increased
expenditure, then, ideally, they should have power to decide how to increase the revenue.

e. With respect to tax management and Infrastructure

It depends on the states and the union how they are going to make GST a simple one. Success
of any tax reform policy or managerial measures depends on the inherent simplifications of
the system, which leads to the high conformity with the administrative measures and policies.

1.5 Need of the study

The need of the study is as under:
 This research will help in determining the level of understanding of Goods
and Services Tax (GST).
 It will help in analysing the perception of retailers towards Goods and Services
Tax (GST).
1.5.1 Why are we studying this topic :

 To find out the impact of unified taxation system on the retail sector of the society.

XVIII
  To examine the retailer feedback on the various changes introduced by GST.
 To get reasons responsible for the adverse effect of GST on retailers, if any.
 To analyze and provide suggestions and corrective measures to help retailers to cope
up with new indirect taxation system of India.

1.6 Conclusion

The GST system is basically structured to simplify the multiple indirect tax system in India.
A well-designed GST is an attractive method to reduce the tax burden. This study traced out
the fact in the study region that retailers have given mixed opinion about the implementation
GST in the study region and they have thought that in future days this move will be beneficial
for retail traders. Added to this, few respondents have given politically motivated views and
stated that central government move of implementation of GST negatively impacted on sales
volume and income of retail business.. It is clear from the field that retailers have not very
much angered with the central government move of implementation of GST in the study
region. GST will become good and simple, only when the entire country works as a whole
towards making it successful.

XIX
CHAPTER- 2
REVIEW OF
LITERATURE

XX
 CHAPTER-2

REVIEW OF LITERATURE

2.1 Literature Review

S.no. Author Objective Data Findings Limitations

Collection

1. Menon and To study on Sample size for It was found that Respondent’s
Ali (2016) public opinion the study is 50. 64% of the response may or
towards GST Data analysis respondents may not be
Bill. was done argued that GST is correct. Some
through not a fair tax and respondents
percentage 52% agreed that refused to
method and government had disclose the fact
presented in given enough due to lack of
graphs, awareness before time and interest.
diagrams and implementation of The data are
charts. GST collected only
from 50 general
public due to time
constraint.
2. Bindal and To highlight the The research Findings showed The current tax
Gupta (2018) impact of GST paper is based transparency in system puts
on Indian on empirical collection of negative impact
economy. To study. It is a indirect taxes on
explain the work type of benefiting both the the growth rate,
mechanism of descriptive government and consumption,
GST in India research paper. people of India demand and the
inflation rate and
tax rate in India.
3. Amit Sharma To study the Data is It was found that GST Services
(2018) challenges of collected GST would cause have turned out to

XXI
 GST and Impact through competitiveness be costly which
of Goods and descriptive and ease in doing has influenced
Service Tax research which business thereby family unit
(GST) on Indian is based on increasing overall spending plan of
Economy and secondary data economic growth. layman.
also to know the of sources such
benefits of GST as journals,
in India context. articles,
newspapers and
magazines.
4. Sreekumar To find out the Here primary It was found that Due to one type
and Chithra impact of GST and secondary there is a high of Tax i.e. GST It
(2016) on sales of data are used degree of positive will remove
retailers and to for this project. correlation economic
analyze the The sampling between before distortions and
impact of method used in and after GST contribute
changes in the this project is monthly towards the
tax rates of fast Convenience expenditure of development of a
moving Sampling. The retailers. common national
consumer goods tools and market.
on consumers analysis used in
this study
includes tables,
simple bar
diagram, line
diagram, pie
diagram etc.
5. Pegu (2017) To examine the The type of data It was found that GST has caused
possible impact used is primary GST will bring increase in cost
of GST in and secondary. positive impact due to software
Indian economy Sampling and helps to boost purchase and
method made it up Indian expertise help.
convenient. economy

XXII
6. Ajay Kumar To know the The entire It was found that GST bill was
(2017) features of GST source of through introduced in the
Bill. To collection of implementation of financial year
understand the data is dual model of thus it will mean
benefits that the secondary that GST it will result increase in
economy will includes in operational costs.
going to have. government
Generating more
websites,
employment
various journals
opportunities.
and articles,
publication and
conference
papers too.
7. Arun (2017) To study the The study is Findings showed Incumbent
implementation exploratory in that the transition increase of the
of GST on retail nature and of current taxation cost of some
business secondary data system into commodities -
practices was collected unified taxation The tax rate has
through system across the been increased
available nation has for many
literatures in benefited the retail products, thus
referred business increasing their
journals, market costs.
research
agencies and
search engines.
8. Kour et al To enquire the It has been It was found that There were
(2016) impact of GST carried out with GST has a increase in
after its the help of dynamic role in operating cost for
implementation secondary data the growth and small businesses.
collected from development of Post
published the country. implementation
research papers, period has forced

XXIII
 websites, for the adoption
journals etc. of software
modification or
purchase of new
software. It will
lead to increase in
expenses.
9. Parthasarathy To understand The primary Findings showed GST has de-
(2015) the impact of and secondary that 47% of the shackled India of
GST on E- data were used respondents its complex
Commerce in this study. argued that indirect tax
Sector and The samples changes in GST structure and
Online were selected policies must be enabled a single
Consumers from the done. New unified indirect
population of strategies can be tax structure
Coimbatore followed by online subsuming
city. companies to majority of the
increase their indirect taxes in
consumers. India, which has
reshaped the
India’s indirect
tax structure.
10. Kaur (2018) To study the The data for the Through the study This tax revision
need of GST. To study were it was found that will affect the
study the impact gathered from there was fall in fine dining
of GST on the secondary prices of two restaurant
Indian economy sources such as wheelers, small industry which
journals, cars, midsized cars has already seen
articles and essential significant
published items, footwear, pressure on its
online and building materials sales due to
offline on and education, macro
various healthcare are environment

XXIV
 newspapers and going to be slowdown.
websites. exempted.

CHAPTER- 3
XXV
 RESEARCH
DESIGN AND
METHODOLOGY

CHAPTER-3
RESEARCH DESIGN AND METHODOLOGY

3.1 Introduction
Research methodology is a process used to collect information and data for the purpose of
making business decisions and comprises the theoretical analysis of the body of methods and
principles associated with a branch of knowledge. It is the specific procedures or techniques
used to identify select, process and analyse information about a topic.

3.2 Objectives of the study

The following are the objectives of the present study-
 To analyse retailer’s perception regarding goods and service tax.

XXVI
  To assess retailer’s view regarding importance of goods and service tax in Jammu.
 To find out the problems faced by the retailers due to new taxation system.
 To suggest the measures for the effective implementation of GST.

3.3 Scope of the study

In the study data collected from both primary sources and secondary sources.
 The purpose of the study is to investigate the perception of retailers having business in
Raghunath Bazaar and Gandhi Nagar area of Jammu to know about their expenditure
pattern and the variation.
 The respondents selected are of mixed group which will give wider difference in
understanding.

3.4 Research design

The research has been conducted to know the impact of redefined taxation system of India on
Retailers
Sample area: Raghunath Bazaar and Gandhi Nagar area of Jammu
Sample size: 30 retailers
Sampling technique: Convenience Sampling Technique

3.4.1 Nature and Source of Information

To collect the requisite information, both the secondary and primary sources were used.
Data collection plays a very crucial role in the statistical analysis.
• Primary data: Primary data is data that is collected by a researcher from first hand
sources, using methods like surveys, interviews or experiments. It is collected with
the research project in mind, directly from primary sources. Primary data for this
study is collected by preparing questionnaire and retailers were requested to fill them.
• Secondary data: The data that is collected by someone other than the primary user is
known as secondary data. The secondary data for this study consists of information
from the internet, journals and articles.

3.4.2 Statistical Tool Applied

XXVII
The statistical tools used for the collection and analyses of data in this project are pie charts,
tables, percentages, etc.

3.4.3 Research Tool Applied

Appropriate tools were applied to analyse the data.

Frequency Distribution
A frequency distribution is a representation, either in a graphical or tabular format, that
displays the number of observations within a given interval. Frequency distributions are
typically used within a statistical context. Generally, frequency distribution can be associated
with the charting of a normal distribution. A frequency distribution can be represented in the
form of frequency tables, histograms or bar charts.

3.5 Limitations of the study

1. The study was confined to Jammu district only.

2. The research is cross-sectional in nature
3. Sample size of 30 retailers has been used due to time limitations.
4. Unwillingness of retailers to fill the questionnaires might have affected the results.

CHAPTER-4

XXVIII
 DATA ANALYSIS
AND
INTERPRETATION

XXIX
 CHAPTER-4

ASSESSING THE RELATIONSHIP BETWEEN IMPLENTATION OF

GOODS AND SERVICES TAX AND ITS IMPACT ON RETAILERS

4.1 Analysis of Demographic Profile

4.1.1 Gender:
The sample included majority of male respondents (73%) and 23% are
female respondents.

Table. 4.1: Frequency distribution of Gender

Gender Frequency Percentage

Male 22 73
Female 8 27
Total 30 100

Gender
25

20

15

10

0
Male Female

Figure 4.1: Bar Graph for Gender

4.1.2 Age:

XXX
 12 of the contacted respondents were from the age group of 20 to 30, 6 were
from the age group of 31 to 40, 8 were from the age group of 41 to 50 and the remaining
4 were from the age group of 51 and above.

Table. 4.2: Frequency Distribution of Age

Age Frequency Percentage

20-30 years 12 40
31-40 years 6 20
41-50 years 8 26
51 and above years 4 14
Total 30 100

AGE
14

12

10

0
20-30 yr 31-40 yr 41-50 yr 51 and above yr

Figure 4.2: Bar Graph for Age

4.1.3.Type of Business:

15 of the contacted respondents had partnership business, 14 were

sole proprietor and remaining 1 had Joint Hindu business.

XXXI
 Table. 4.3: Frequency Distribution of Type of Business

Type of Business Frequency Percentage

Partnership 15 50
Sole Proprietorship 14 46
Joint Hindu business 1 4
Total 30 100

Type of Business
16

14

12

10

0
Partnership Sole proprietorship Joint hindu business

Figure 4.3: Bar Graph for Type of Business

4.2 Analysing the Retailers’ Perception towards Implementation of GST

In present section we are analysing the various perception of Retailers on single unified
indirect taxation system.

XXXII
4.2.1. Burden of GST on respondents.

Majority of respondents,70% retailers think that GST has not burdened the people and
30% think that GST has burdened the people.

Table 4.4: Burden of GST on respondents

Particulars Frequency Percentage

Yes 9 30
No 21 70
Total 30 100

Yes
30%

Yes No

No
70%

Figure 4.4: Pie Chart of Burden of GST on respondents

4.2.2. Change in demand.

Table 4.5 shows that 43% retailers think that GST has affected the demand of their
product and 57% think GST hasn’t affected the demand of their product.

Table 4.5: Change in demand

XXXIII
 Particulars Frequency Percentage
Yes 13 43
No 17 57
Total 30 100

Yes
43%
Yes
No
No
57%

Figure 4.5 : Pie Chart of Change in demand

4.2.3. The transition to GST regime.

Following Table 4.6 shows that the transition to GST for 57% retailers was difficult, for
23% retailers it was smooth and for 20% retailers it was very difficult.

Table 4.6: Transition to GST

Particulars Frequency Percentage

Smooth 7 23

XXXIV
 Difficult 17 57
Very difficult 6 20
Total 30 100

Very Difficult Smooth

20% 23%

Smooth
Difficult
Very Difficult

Difficult
57%

Figure 4.6: Pie Chart of Transition to GST

4.2.4. Issue in compliance with e-bill mechanism.

Figure 4.7 shows that 70% retailers are not facing any specific issue in compliance where
as 30% are facing issue in compliance.

Table 4.7: Issue in compliance with e-bill mechanism

Particulars Frequency Percentage

Yes 9 30
No 21 70
Total 30 100

XXXV
 Yes
30%

Yes
No

No
70%

Figure 4.7: Pie Chart of Issue in compliance with e-bill mechanism

4.2.5. Issues faced in claiming refund.

Table 4.8 shows that 87% retailers disagree and 13% agree that they face issues while
claiming refund under GST regime

Table 4.8: Issues faced in claiming refund

Issues faced Frequency Percentage

Yes 4 13

XXXVI
 No 26 87

Total 30 100

Yes
13%

Yes
No

No
87%

Figure 4.8: Pie Chart of Issues faced in claiming refund

4.2.6. Legal formalities.

Figure 4.9 shows that 33% retailers disagree and 67% agree that they GST increased the
legal formalities

Table 4.9: Legal formalities

Particulars Frequency Percentage

Agree 10 33
Disagree 20 67
Total 30 100

XXXVII
 Disagree
33%

Agree
Disagree

Agree
67%

Figure 4.9: Pie Chart of Whether Legal formalities have increased

4.2.7. GST will be beneficial in long run.

Figure 4.10 shows that majority of the respondents, 90% retailers think GST will be
beneficial for long run and 10% think GST will not be beneficial for long run

Table 4.10: GST will be beneficial in long run

Particulars Frequency Percentage

Yes 27 90
No 3 10
Total 30 100

XXXVIII
 No
10%

Yes
No

Yes
27
90%

Figure 4.10: Pie Chart of GST will be beneficial in long run

4.2.8. Difficulty in understanding GST.

Table 4.11 shows that 37% retailers face difficulty in understanding GST and 63% do not
face any difficulty in understanding GST.

Table 4.11: Difficulty in understanding GST

Particulars Frequency Percentage

Yes 19 37
No 11 63
Total 30 100

XXXIX
 Yes
37%

Yes
No

No
63%

Figure 4.11: Pie Chart of Difficulty in understanding GST

4.2.9. Confusion in implementation of GST.

As Figure 4.12 shows that 40% retailers had confusion in implementation of GST, 37%
did not have any confusion in implementation of GST and 23% neither agree nor disagree
that there was confusion in implementation of GST.

Table 4.12: Confusion in implementation of GST

Particulars Frequency Percentage

Agree 12 40
Disagree 11 37
Neither agree nor disagree 7 23
Total 30 100

XL
 Neither agree nor disagree
23%

Agree
40%
Agree
Disagree
Neither agree nor disagree

Disagree
37%

Figure 4.12: Pie Chart of Confusion in implementation of GST

4.2.10. GST a fair tax system.

Table 4.13 shows that 20% retailers think GST is a fair system and 80% think GST is not
a fair system.

Table 4.13: GST a fair system

Particulars Frequency Percentage

Yes 6 20
No 24 80
Total 30 100

XLI
 Yes
20%

80%

No Yes

Figure 4.13: Pie Chart of Is GST a fair system

4.2.11. GST guide is lengthy and difficult to understand.

Table 4.14 shows that 27% retailers think GST guide is lengthy and difficult to
understand , 27% think that GST guide is not lengthy and difficult to understand and 56%
neither agree nor disagree on the fact that GST guide is lengthy and difficult to understand.

Table 4.14: GST guide is lengthy and difficult to understand

Particulars Frequency Percentage

Agree 5 17
Disagree 8 27
Neither agree nor disagree 17 56
Total 30 100

XLII
 Agree
17%

Agree
Disagree
Neither agree nor disagree
Disagree
Neither agree nor disagree 27%
57%

Figure 4.14: Pie Chart of GST guide is lengthy and difficult to understand

4.2.12. System beneficial to both government and retailers.

Table 4.15 shows that retailers think GST is 83% beneficial to both government and
retailers, Sales tax is 14% beneficial to both government and retailers and Service tax is 3%
beneficial to both government and retailers.

Table 4.15: System beneficial to both government and retailers

Particulars Frequency Percentage

GST 25 83
Sales tax 4 14
Service tax 1 3
Total 30 100

XLIII
 Service tax
3%

Sales tax
13%

GST
Sales tax
Service tax

GST
83%

Figure 4.15: Pie Chart of System beneficial to both government and retailers

4.2.13. GST helped in easy movement of goods.

Table 4.16 shows that 70% retailers agreed that GST helps in easy movement of goods,
20% disagreed that GST helps in easy movement of goods and 10% can’t say about the fact
that GST helps in easy movement of goods.

Table 4.16: GST helped in easy movement of goods

Particulars Frequency Percentage

Yes 21 70
No 6 20
Can’t say 3 10
Total 30 100

XLIV
 Yes No Can't say

Figure 4.16: Pie chart on GST helped in easy movement of goods

4.2.14. GST facilitates ease of doing business.

Figure 4.17 shows that 40% retailers disagree that GST facilitates ease of doing business
and 60% agree that GST facilitates ease of doing business.

Table 4.17: GST facilitates ease of doing business

Particulars Frequency Percentage

Agree 18 60
Disagree 12 40
Total 30 100

XLV
 Disagree Agree
40% 60%

Agree Disagree

Figure 4.17: Pie Chart on GST facilitates ease of doing business

4.2.15. GST facilitates reduction of overall tax.

Table 4.18 shows that 20% retailers disagree, 37% agree and 43% neither agree nor
disagree that they face issues while claiming refund under GST regime.

Table 4.18: GST facilitates reduction of overall tax

Particulars Frequency Percentage

Agree 11 37
Disagree 6 20
Neither agree nor disagree 13 43
Total 30 100

XLVI
 Agree Disagree Neither agree nor disagree

Figure 4.18: Pie Chart on GST facilitates reduction of overall tax

Q4.2.16. GST caused change in business after its implementation.

Table 4.19 shows that 63% retailers disagree and 37% agree that GST caused change in
business after its implementation.

Table 4.19: GST caused change in business after its implementation

Particulars Frequency Percentage

Yes 27 37
No 3 63
Total 30 100

XLVII
 Yes No

Figure 4.19: Pie Chart on change in business after implementation of GST

CHAPTER – 5
SUMMARY OF
MAJOR FINDINGS
XLVIII
 AND
SUGGESTIONS

XLIX
 CHAPTER – 5

SUMMARY OF MAJOR FINDINGS AND SUGGESTIONS

This chapter deals with the major findings that have emerged after data analysis in the
previous chapter. It also proposes several important suggestions for the adequate and efficient
implementation of GST to reduce the adverse effect of its implementation on various sectors
of the society including retailers.

5.1 Major Findings

From the data analysis, it has been noted that-

 Majority 50% respondents had ‘Partnership Business’ followed by 46% of the

respondents were ‘Sole Proprietors’ and 4% of the respondents had ‘Joint Hindu
Business’.
 Majority 43% of the respondents are still in the ambiguity that whether GST has
helped in the reduction of overall tax or not where as 37% of the respondents stated
that GST has facilitated the reduction of overall taxes.
 Majority 83% of the respondents have stated that implementation of GST is beneficial
to both Government and Retailers.
 Majority 70% of the respondents are of the opinion that implementation of ‘one tax
for all’ system- GST has not burdened the people followed by 30% of the respondents
who think that GST has created an additional burden on the people.
 Majority 70% of the respondents are of the opinion that there is no significance issue
in compliance with e-bill mechanism.
 Mass-media has played a vital role in creating awareness regarding GST among the
retailers.
 There exists a positive relationship between the implementation of GST and
facilitation of ease of doing business.
 There is a slight difference between the opinion of the retailers who think GST has
created confusion among the customers where majority 40% of the respondents agree
and 37% disagree with the aforesaid statement.

L
  There is a positive response from the retailers that most of them are of the opinion that
GST will be beneficial for long run.
 There is not much difference between the perception of the retailers who agree that
‘GST has affected the demand of the product’ and those who disagree with the
statement.
 There is a positive impact between the impact of Goods and Services Tax (GST) and
the retailers.

5.2 Suggestions

The study has helped us to generate various implications which are helpful to retailers and
also in the effective implementation of GST which are as follows-

 Retailers are aware about the GST system but they lack prominence about rules.
Government should find a way to help the Retailers in understanding the rules for
GST implementation.
 For Successful implementation of GST system, it is necessary for the retailers need to
upgrade their IT framework
 FMCG Companies should aid retailers for promotional activities and they should
come up with a scheme to motivate retailers to sell products in the higher tax bracket.
Huge discounts should be offered to retailers for the products which has higher tax
brackets.
 Creating awareness about the GST among retailers through Seminars, Awareness
classes etc.
 Processes of GST must be reduced to so that business can operate efficiently and
effectively.
 Make the public aware about the benefits of GST system for economic growth.
 Improvement of IT facility helps the retailers to handle the tax Procedures more
easily.
 Providing adequate time for filing returns will help to understand GST much better.
 Web portal should be updated and modify in order to help more users to access at
same time.

LI
5.3 Future Research

 Longitudinal study could be conducted.

 The same study can be conducted in other sectors to generalize the concept.
 Larger sample should be taken for better understanding of the relationship between
the Goods and Services Tax and the retailers.
 More outcomes can be taken into account e.g. extent of negative and positive impact
of GST , effective IT framework, higher tax bracket etc. for better understanding of
the concept.

LII
ANNEXURE

LIII
 ANNEXURE
DEMOGRAPHIC PROFILE

NAME OF COLLEGE: ………………………

DEPARTMENT: ………………………….

1. Gender: Male/Female
2. Age : ………… years
3. Type of business: ………………….

QUESTIONS YES NO NEITHER

YES NOR NO
Burden of GST on 9 21
respondents
Change in demand 13 17
Issue in compliance with 9 21
e-bill mechanism

Issues faced in claiming 4 26

refund
Legal formalities 10 20
GST will be beneficial in 27 3
long run
Difficulty in 19 11
understanding GST
Confusion in 12 11 7
implementation of GST
GST a fair system 6 24
GST guide is lengthy and 5 8 17
difficult to understand
GST helped in easy 21 6 3
movement of goods
GST helped in easy 18 12
movement of goods
GST facilitates reduction 11 6 13
of overall tax
GST caused change in 27 3

LIV
business after its
implementation

LV
 QUESTIONNAIRE
A STUDY ON THE RETAILERS PERCEPTION TOWARDS
IMPLEMENTATION OF GOODS & SERVICES TAX SYSTEM
This questionnaire is related to the implementation of GST in India. Kindly spare some
of your valuable time and answer the following questions:
Name-
Age-
Gender-
Name of business-
Type of business-

1) From where did you first come to know about GST?

o Friends and Family
o Mass Media
o Online
o Others
2) Do you think GST has burdened the people?
o YES
o No
3) Has the introduction of GST affected the demand of your product?
o Yes
o No
4) The transition to GST regime was :
o Smooth
o Difficult
o Very Difficult
5) Are you facing any significant issue in compliance with e-bill mechanism?
o Yes
o No
If yes (please specify) ____________________________________________
6) Are you facing any issues in claiming refund under GST regime?
o Yes
o No
If yes (please specify) ____________________________________________
7) Do you agree that GST has increased the legal formalities
o Agree
o Disagree

LVI
 If yes (please specify) ____________________________________________

8) Do you think GST will be beneficial in the long run?

o Yes
o No
9) Is GST very difficult to understand?
o Yes
o No
If yes, please specify the reason _______________________________
10) The newly implemented GST confused the customers:
o Agree
o Disagree
o Neither agree nor disagree
11) Is GST a fair tax system?
o Yes
o No
12) The language written in the GST guide is lengthy and not user friendly?
o Agree
o Disagree
o Neither agree nor disagree

13) Which system do you think is more beneficial to both government and retailers?
o GST
o Sale tax
o Service tax

14) GST has helped in easy movement of goods?

o Yes
o No
o Can’t say

15) The Implementation of GST has facilitated ease of doing business?

o Agree
o Disagree

16) The implementation of GST has facilitated in reduction of overall tax?

o Agree
o Disagree
o Neither agree nor disagree

17) Is there any change in business sales post- GST implementation?

LVII
 o Yes
o No
o If yes, please specify the reason ______________

BIBLIOGRAPHY

 Menon and Ali, Mohammad (2016), “Awareness and Perception of Taxpayers

towards Goods and Service Tax (GST) Implementation”. International Journal of
Academic Research in Business and Social Sciences, 75-93.
 Sreekumar P. G., Chithra R (2016), “A Study on the Impact of GST in FMCG
Sector”. IOSR Journal of Business and Management (IOSR-JBM).
 Parthasarathy, Shwetha (2015), “A study on impact on GST on e-commerce sector
with special reference to Coimbatore city”. International Journal of Creative
Research Thoughts (ICJRT).
 Bindal, Meenakshi and Gupta, D.C., (2018), “Impact of GST on Indian Economy”.
International Journal of Engineering and Management Research. [Pg.: 143-148].
 Bikram, Pegu (2017), “The Proposed GST and Indian Economy”. International
Journal of Interdisciplinary Research in Science Society and Culture.
 Kaur, J. (2016), “Goods and service tax (GST) and its impact”. International Journal
of Applied Research, Vol. 2, Issue 8, 385-387.
 Kankipati, Ajay Kumar (2017), “A Journey of Goods and Services Tax (GST) and
Structural Impact of GST on the Growth of GDP in India”. Advances in Sciences and
Humanities. Vol. 3, No. 5, 2017, pp. 50-53.
 SHARMA, Dr. Amit (2018) “Impact of Goods and Services Tax (GST) on Indian
Economy”. Journal of Business Management & Quality Assurance (e ISSN 2456-
9291), [S.l.], v. 2, n. 1, p. 15-23, June 2018. ISSN 2456-9291.
 B K, Dr.Arun and Hemanth (2017), “Impact of GST on Retail Business practices in
India”. International Journal of Research in Economics and Social Sciences
(IJRESS).
 Kour et al (2016), “Impact of Goods and Service Tax after implementation”. Global
Journal of Management and Business Research Volume XVIII Issue II Version I.

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LIX