A Study on GST Impact on Selected Industry with Reference to Tumkur City

Chapter-1

Introduction

Introduction to Tax

A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer by a
government organization in order to fund government spending and various public expenditures. A
failure to pay, along with evasion of or resistance to taxation, is punishable by law. Taxes consist of
direct or indirect taxes and may be paid in money or as its labor equivalent. The first known taxation
took place in ancient Egypt around 3000-2800bc

Most countries have a tax system in place to pay for public, common, or agreed national needs and
government functions. Some levy a flat percentage rate of taxation on personal annual income, but
most scale taxes based on annual income amounts. Most countries charge a tax on an individual’s
income as well as on corporate income. Countries or subunits often also impose wealth taxes,
inheritance taxes, gift taxes, property taxes, sales taxes, payroll taxes or tariffs.

In economic terms, taxation transfers wealth from households or businesses to the government. This
has effects that can both increase and reduce economic growth and economic welfare. Consequently,
taxation is a highly debated topic.

Meaning of Tax

A compulsory contribution to state revenue, levied by the government on workers’ income and business
profits, or added to the cost of some goods, service, and transactions.

A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer by a
government organization in order to fund government spending and various public expenditures. A
failure to pay, along with evasion of or resistance to taxation, is punishable by law.

Definition of Tax

According to Prof. Taylor “ Taxes are compulsory payments to governments without Expectations of
direct return or benefit to the tax payer”.

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Tax Benefits

Tax benefits refers to the economic bonus which applies to certain accounts or investments that are, by
statute, tax-reduced, tax-deferred, or tax free. Examples of tax advantaged accounts and investments
include retirement plans, education savings accounts, medical savings accounts, and government bonds.
Government establish tax advantages to encourage private individuals to contribute money when it is
considered to be in the public interest.

The term tax benefit generally refers to any tax law that provides you with an opportunity to reduce
your tax bill when you satisfy certain eligibility requirements. A tax benefit comes in different forms,
such as a deduction, exclusion or credit. The amount of tax you can save also depends on the type of tax
benefit you claim because they each offer a different from of savings.

• Tax Deductions

A tax deduction is a deduction that lowers a person or organization’s tax liability by lowering their
taxable income. Deductions are typically expenses that the taxpayer incurs during the year that can be
applied against or subtracted from their gross income in order to figure out how much tax is owed.

Tax deduction is a reduction of income that is able to be taxed and is commonly a result of expenses,
particularly those incurred to produce additional income. Tax deductions are a form of tax incentives,
along with exemptions and credits. The difference between deductions, exemptions and credits. Is that
deductions and exemptions both reduce taxable income, while credits reduce tax.

• Tax Credit
A tax credit is a tax incentive which allows certain taxpayers to subtract the amount of the credit they
have accrued from the total they owe the state. It may also be a credit granted in recognition of taxes
already paid or a form of state support

A tax credit is an amount of money that tax payers can subtract directly from taxes owed to their
government. Unlike deductions, which reduce the amount of taxable income, tax credits reduce the
actual amount of tax owed. The value of a tax credit depends on the nature of the credit; certain types
of tax credits are granted to individuals or businesses in specific locations, classifications, or industries.

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• Tax Exemption
Tax exemption is the reduction or removal of a liability to make a compulsory payment that would
otherwise be imposed by a ruling power upon persons, property, income, or transactions. Tax-exempt
status may provide complete relief from taxes, reduced rates, or tax on only a portion of items.

Tax exemption generally refers to a statutory exception to a general rule rather than the mere absence
of taxation in particular circumstances, otherwise known as an exclusion. Tax exemption also refers to
removal from taxation of a particular items rather than a deduction.

Importance of Taxes

Governments impose charges on their citizens and businesses as a means of raising revenue, which is
then used to meet their budgetary demands. This includes financing government and public projects as
well as making the business environment in the country conducive for economic growth.

Purpose of Taxes
The levying of taxes aims to raise revenue to fund governing or to alter prices in order to affect demand.
States and their functional equivalents throughout history have used the money provided by taxation to
carry out many functions. Some of these include expenditures on economic infrastructure ( roads, public
transportation, sanitation, legal systems, public safety, education, health-care system), military,
scientific research, culture and the arts, public works, distribution, data collection and dissemination,
public insurance, and the operation of government itself. A government’s ability to raise taxes is called
its fiscal capacity.
When expenditures exceed tax revenue, a government accumulates debt. A portion of taxes may be
used to fund welfare and public services. These services can include education systems, pensions for the
elderly, unemployment benefits, and public transportation, energy, water and waste management
systems are also common public utilities.
According to the proponents of the chartalist theory of money creation, taxes are not needed for
government revenue, as long as the government in question is able to issue fiat money. According to
this view, the purpose of taxation is to maintain the stability of the currency, express public policy
regarding the distribution of wealth, subsidizing certain industries or population groups or isolating the
costs of certain benefits, such as highways or social security.

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Different Types of Taxes

There are two types of taxes namely, direct taxes and indirect taxes. The implementation of both the
taxes differs. You pay some of them directly, like the cringed income tax, corporate tax, and wealth tax
etc while you pay some of the taxes indirectly, like sales tax, service tax, and value added tax etc.

Taxes

Direct Tax Indirect Tax

Income Tax Sales Tax

Securities Service Tax

Transaction Tax

Value Added Tax

Wealth Tax

Customs Duty
Gift Tax

Excise Duty

Capital Gains
Tax
Goods and
Service Tax

Corporate Tax

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However, apart from these two traditional taxes, there are other taxes also, which has been affected to
serve a specific agenda by the country’s central government. ‘ other taxes’ are imposed on both the
taxes, direct and indirect tax like the currently launched Swatch Bharat cess tax, infrastructure cess tax,
and krishi kalyan cess tax among others.

1. Direct Tax

As stated earlier, you pay these taxes directly. The government levy such taxes directly on an individual
or an entity and it cannot get transferred to any other person or entity. There is only one such
federation that winks at the direct taxes, i.e. the central board of direct taxes (CBDT) governed by the
department of revenue. The CBDT has, to assist it with its sense of duties; the backup of several acts
that preside over several aspects of the direct taxes.

• Income Tax

Income tax act is also called the IT act,1961. Income tax in India is governed by the rules set by this act.
The income taxed by this act can be generated from any source such as profits received from salaries
and investments, owing a property or a fixed deposit. It also decides the savings from your income via
investments and the tax slab for your income tax.

Income tax is one of the most popular and least implicit taxes. It such a tax, which is imposed on your
income in a fiscal year. There are a lot of facets to the income tax, like taxable income, reduction of the
taxable income, tax slabs, tax deducted at source (TDS), etc. This tax is pertinent to both the companies
and individuals. For individuals, the amount they pay against the tax is based on the tax bracket they
breeze in. This slab or tax decides the tax that an individual has to pay depending upon their annual
income and spreading from no tax to 30 percent for the higher income groups.

• Securities Transaction Tax

It is not a tough nut to crack to know about the proper trading on the stock market, and exchange
securities, you stay still to make an extensive sum of money. This too is a mine of income but has its own
tax that is called as the securities transaction tax. How is this levied? This tax is levied by combining the
share’s price and the tax. This means every time you purchase or sell a share, you make payment of this
tax. All the securities traded on Indian stock exchange, have this affixed with them.

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• Wealth Tax

The wealth tax act came into effect in the year 1951 and is in charge of the taxation linked with an
individual’s net wealth, a Hindu unified family (HUF) or a company. The easiest computation of wealth
tax was:

If the net wealth of an individual exceed rs.30 lakhs, than 1 percent of the exceeded amount is payable
as a tax. It was put to an end in the budget that was announced in 2015. Since then, it has been
substituted with a surcharge of 12 percent on the individuals that generate an income more than rs. 1
crore p.a. it is also pertinent to the companies, which have generated revenue of over rs. 10 crores p.a.
the fresh guidelines radically raised the sum the government would accumulate in taxes as disparate the
amount they would accumulate via wealth tax.

• Gift Tax

This act was brought into existence in the year 1358 and assured that if a person received gifts or
presents, valuables or monetary, he has to pay a tax on those gifts. The tax on aforementioned gifts was
sustained at 30 percent but it was put to an end in the year 1998. Originally, if a gift was given, and it
was somewhat like shares, jewellery, property etc it was subject to tax. As per the new rules, the
present given by the members of the family like parents, spouse, uncles, aunts, sisters and brothers are
not subject to tax. Even presents you receive from the local authorities are also exempted from such
taxes. If somebody, other than that of the exempted entities, presents you anything which has a value
beyond rs 50000 then the whole gift amount is subject to tax.

• Capital Gains Tax

Capital gains tax is payable whenever you get a considerable sum of money. It could be from the sale of
any property or from an investment. This is generally of two types, namely long-term capital gains from
the investment made for a period of more than 36 months and short-term capital gains from the
investments made for not more than 36 months. The tax that is applicable for each of these is also
different since short-terms gains tax is computed basis the income bracket, which you fall in and the
long-term capital gain tax is 20 percent. The interesting thing about the capital gain tax is that the profit
does not always should be in the money form. It could also happen to be barter in kind in this the worth
of the exchange will be taken into consideration for taxation.

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• Corporate Tax

The income tax a company pays from its revenue earned by it is called a corporate tax. The corporate
tax also has a slab of its own, which decides the amount of tax to be paid. For instance, a domestic firm
that earns revenue of not more than rs. 1 crore p.a. will not have to pay such tax. It is also made known
as a surcharge and it is different for distinct revenue brackets. This tax is also different for the
international companies where this tax may be 41.2 percent of the revenue earned by the company is
not more than rs.10 million and above. There are four types of corporate taxes. They are Minimum
alternative tax, Fringe benefits tax, Dividend distribution tax and Banking cash transaction tax.

2. Indirect Tax

The taxes levied on goods and services are referred to as indirect taxes. They are different from direct
taxes as they are not imposed on an individual who shells out them directly to the Indian government,
they are as an alternative, imposed on the products and an intermediary selling the product, collects
them. The most trivial examples of the indirect taxes are sales tax, taxes levied on imported goods, value
added tax (vat), etc. Such taxes are imposed by summating them with the price of the product or service
that likely to push the price of the product up.

• Sales Tax

The tax imposed on the sale of any product is called sales tax. This product can be anything produced in
India itself or imported and can also cover services provided. The sales tax is levied on the on the
product’s seller who then passes it to the individual who buys the said product with this tax summated
to the product’s price. The constraint with this tax is that such a tax is imposed on a particular product
that means if the product is re-sold; the seller cannot apply sales tax on it. Fundamentally, all the states
in India follow their individual sales tax act and a percentage native to them is charged. Besides this,
other additional charges such as works transaction tax, purchase tax, and the similar taxes are levied in a
few states. This is also one reason that sales tax was considered as one of the largest revenue producers
for a number of state governments. In addition, the sales tax is imposed under both the state and
central legislation.

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• Service Tax

Service tax is applicable on services provided by companies. Unlike sales tax, it is not charged on every
sale. This tax is charged with on a monthly or quarterly basis. Service providers pay this tax once their
customers clear their bills.

• Value Added Tax

Value added tax (VAT), popularly known as commercial tax is not chargeable on the commodities, which
are zero rated for food and necessary drugs or those falling under exports. Vat is imposed at all the
steps of the supply chain, from manufacturers to distributors to the end user.

The vat was a tax imposed at the prudence of the state government of the country. Not all the states
put it into practice when it was announced. The vat is imposed on several goods that were sold in the
state and the state itself decided the amount to tax.

• Customs Duty

While you buy anything that requires being imported from abroad, you are applied a charge on it and
that is known as the customs duty. It is applied to all the products, which come in via air, sea or land.
Although you acquire products bought in different country to India, you will be charged a customs duty.

• Excise Duty

The excise duty is such a tax that is imposed on all the manufactured goods or the produced goods in
India. This tax varies from customs duty as it is chargeable only on the things that are produced in India
and is also called the central value added tax or CENVAT. The government collects this tax from the
manufacturer of goods, also from the entities, which receive manufactured products and provide work
for people to transport the products from manufacturer to them.

The central excise rule framed by the central government of India suggests that every individual that
manufactures or produces any ‘excisable goods or products’, or who stockpile such products in a depot,
will have to make payment of the duty- chargeable on these goods. Under this scheme, no excisable
products, on which some duty is payable will be permitted to move without making payment of duty
from any point, where they are manufactured or produced.

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• Goods And Services Tax

The goods and services tax was introduced in 2017. This tax is applied at the consumption stage. Gst is
applied at every stage of the supply chain wherever consumption takes place.

The goods and services tax (gst) is a value-added tax levied on most goods and services sold for
domestic consumption. The gst is paid by consumers, but it is remitted to the government by the
businesses selling the goods and services. In effect, gst provides revenue for the government.

Advantages of Direct Tax

• Equitable
The burden of direct taxes cannot be shifted. Hence equality of sacrifice can be attained through
progression. Of course, the very low incomes can be exempted. This cannot be achieved- by taxes on
commodities which fall with equal force on the rich and the poor. The tax raises the price of the commodity,
and the price of a commodity is the same for every person, rich or poor.

• Economical
The cost of collection of direct taxes is low. They are mostly collected “at the source”. For instance,-the
income tax is deducted from an officer’s pay every month. This saves expense. The employer acts as an
honorary tax collector. This means great economy.

• Certain
In the case of a direct tax, the payers know how much is due from them and when. The authorities also
know the amount of revenue they can expect. There is certainty on both sides. This minimizes corruption
on the part of collecting officials.

• Elastic
If the State suddenly stands in need of more funds in an emergency, direct taxes can well serve the
purpose. The yield from income tax or death duties can be easily increased by raising their rate. People
cannot stop dying for fear of paying death duties.

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• Productive
Another virtue of direct taxes is that they are very productive. As a community grows in numbers and
prosperity, the return from direct taxes expands automatically. The direct taxes yield a large revenue to the
State.

• A means of developing civic sense

In the case of a direct tax, a person knows that he is paying a tax, he feels conscious of his rights. He claims
the right to know how the Government uses his money and approves or criticizes it. Civic sense is thus
developed. He behaves as a responsible citizen.

Disadvantages of Direct Taxes

• Inconvenient
The great disadvantage of a direct tax is that it pinches the payer. He ‘squeaks’ when a lump sum is taken
out of his pocket. The direct- taxes are thus very inconvenient to pay. Nobody can help feeling the pinch.
• Evadable
The assesses can submit a false return of income and thus evade the tax. That is why a direct-tax is “a tax
on honesty.” There is a lot of evasion. Many of those who should be paying taxes go scot-free by concealing
their incomes.

• Arbitrary
If taxes are progressive, the late of progression has to be fixed arbitrarily; and if proportional, they fall
more heavily on the poor. Thus, both are bad. The rate of taxes depends upon the whim of the Finance
Minister. This is arbitrary.

• Disincentive

If the taxes are too heavy, they discourage saving-sand investment. In that case the country will suffer
economically. A high level of taxation discourages investment and enterprise in the country. It inflicts a lot
of damage, on business.

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Advantages of Indirect Taxes

• The Poor Can Contribute

They are the only means of reaching the poor. It is a sound principle that every, individual should pay
something, however little, to the State. The poor are always exempted from paying direct taxes. They can
be reached only through indirect taxation.

• Convenient
They are convenient to both the tax-prayer and the State. I he tax-payers do not feel the burden much
partly because an indirect tax is paid in small amounts and partly because it is paid only when making
purchases. But the convenience is even greater due to the fact that the tax is “price-coated”.

It is wrapped in price. It is like a sugar-coated quinine pill. Thus, a tobacco tax is not felt when it is included
in the price of every cigarette bought. It is convenient to the State as well which can collect the tax at the
ports or at the factory.

• Broad-based
Indirect taxes can be spread over a wide range. Very heavy direct taxation at just one point may produce
harmful effects on social and economic life. As indirect taxes can be spread widely, they are more
beneficial and suitable.

• Easy Collection
Collection takes place automatically when goods are bought and sold. A dealer collects the tax when he
charges a price. He is an honorary tax collector.

• Non-evadable
They cannot be evaded, as they are a part of the price. They can be evaded only when the taxed article is
not consumed, and ‘his may not always be possible’.

• Elastic
They are very elastic in yield, imposed on necessaries of life which have an inelastic demand. Indirect taxes
on necessaries yield a large revenue, because people must buy these things.

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• Equitable
When imposed on luxury or goods consumed by the rich, they are equitable. In such cases, only the .Veil-
to-do will pay the tax.

• Check Harmful Consumption

By being imposed on harmful products, they can check consumption of harmful commodities. That is why
tobacco, wine and other intoxicants are taxed.

Disadvantages of Indirect taxes

Indirect taxes have some disadvantages too, which are as follows
• Regressive
Indirect taxes are not equitable. For instance, salt tax in India fell more heavily on the poor than on the rich,
as it had to be paid at the same rate by all. Whether a rich man buys a commodity or a poor man, the price
in the market is the same for all. The tax is wrapped in the price. Hence, rich and poor pay the same
amount, which is obviously unfair. They are thus; regressive.

• Uncertain
Unless indirect taxes are imposed on necessaries, we cannot be sure of the revenue yield. In the case of
goods, with an elastic demand, the tax might not bring in much revenue. The tax will raise the price and
contract the demand. When the thing is not purchased, the question of the tax payment does not arise.

• Raising Prices Unduly

They cause the price of an article to rise b; more than the tax. A fraction of the money unit cannot be
calculated, so ever middleman tends to charge more than the tax. This process is cumulative.

• Uneconomical
The cost of collection is quite heavy. Every source o production has to be guarded. Large administrative
staff is required to administer such taxes. This turns out to be a costly affair.

• No Civic Consciousness
These taxes do not develop civic consciousness, because many times the tax-payer does not even know
that he is paying tax. The tax is concealed in the price.

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• Harmful to Industries
They discourage industries if raw materials are taxed. This will raise the cost of production and impair their
competitive capacity.

Introduction to GST

In the year 2000,the then prime minister introduced the concept of gst and set up a committee to
design a gst model for the country. In 2003, the central government formed a taskforce on fiscal
responsibility and budget management, which in 2004 strongly recommended fully integrated ‘GST’ on
national basis .

Subsequently, the then union Finance Minister, shri p. Chidambaram, while presenting the union budget
(2006-2007), announced that Gst would be introduced from April 1, 2010. since then, Gst missed several
deadlines and continued to be shrouded by the clouds of uncertainty.

The talks of ushering in Gst, however, gained momentum in the year 2014 when the NDA government
tabled the constitution (122nd Amendment) Bill, 2014 on Gst in the parliament on 19th December, 2014.
The LokSabha in the passed to bill on 6th May, 2015 and RajyaSabha on 3rd August, 2016. Subsequent to
ratification of Bill by more than 50% of the States, Constitution (122 nd Amendment) Bill, 2014 received
the assent of the president on 8th September, 2016, which paved the way for introduction of Gst in
India.

In the following year, on 27th March, 2017, the Central Gst legislations – Central Goods and services Tax,
2017, Integrated Goods and Services Tax Bill, 2017, Union Territory Goods and Services Tax Bill, 2017
and Goods and Services Tax (compensation to States) Bill, 2017 were introduced in LokSabha. LokSabha
passed these bills on 29th March, 2017 and with the receipt of the president’s assent on 12 th April, 2017,
the Bills were enacted. The enactment of the Central Acts was followed by the enactment of the state
GST laws by various state legislatures. Telangana, Rajasthan, Chhattisgarh, Punjab, Goa and Bihar were
among the first ones to pass their respective state Gst laws. By 30 th June, 2017, all states and union
Territories had passed their respective UTGST Acts except Jammu and Kashmir. with effect from 1 st July
2017, the historic Indirect tax reform – Gst was introduced. Gst law was extended to Jammu and
Kashmir on 8th July, 2017. GST is a path breaking indirect tax reform which attempts to create a common
national market. GST has subsumed multiple indirect taxes like excise duty, service tax, VAT, CST, luxury
tax, entertainment tax, entry tax, etc.

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VAT and GST are often used inter- changeably as the latter denotes comprehensiveness of VAT by
coverage of goods and services. France was the first country to implement VAT/GST in 1954. presently,
more than 160 countries have implemented VAT/GST in some from or the other because this tax has the
capacity to raise revenue in the most transparent and neutral manner. Most of the countries follow
unified GST i.e., a single tax applicable throughout the country. However, in federal polities like Brazil
and Canada, a dual GST system is prevalent. under dual system, Gst is levied by both the federal and the
state governments. India has adopted dual Gst model because of its unique federal nature.

Meaning of GST

Goods and services tax (gst) is an indirect tax used 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 a few state taxes. Multi-staged as it is, the gst 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, it is collected from point of consumption and
not point of origin like previous taxes.

Rate Slab Items

0.25% Cut and semi-polished stones are included under this tax slab.
5% Household necessities such as edible oil, sugar, spices, tea, and coffee are
included. Coal, mishit/mithai and life-saving drugs are also covered under
this gst slab.
12% This includes computers and processed food
18% Hair oil, toothpaste and soaps, capital goods and industrial intermediaries
are covered in this slab.
28% Luxury items such as small cars, consumer durables like ac and refrigerators,
premium cars, cigarettes and aerated drinks, high-end motorcycles are
included here.

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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 system. 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 rates, rules and regulations are governed by the gst council which consists of the finance
ministers of the central government and all the states. The 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 its implementation has received criticism. Positive outcomes of the gst includes the travel
time in interstate movement, which dropped by 20%, because of disbanding of interstate check posts.

Types of GST

There are four gst types namely

• Central goods and services tax (CGST)

• State goods and services tax (SGST)
• Integrated goods and services tax (IGST)
• Union territory goods and services tax (UTGST)

GST

Intra-State GST Inter-State GST

SGST CGST IGST UTGST

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• State Goods And Services Tax

The state goods and services tax or SGST is a tax under the gst regime which is applicable on intra-state
(within the same state) transactions. In case of intra-state supply of goods or services, both state gst and
central gst are levied. However, the state gst is levied by the state on the goods or services that are
purchased or sold within the state.

• Central Goods And Services Tax

Central goods and services tax or CGST is a tax under the gst regime which is applicable on intrastate
(within the same state) transactions. The CGST is governed by the CGST act. The revenue earned from
CGST is collected by the central government.
• Integrated Goods And Services Tax

The integrated goods and services tax or IGST is a tax under the gst regime that is applied on the
interstate (between 2 states) supply of goods or services as well as on imports and exports. The igst is
governed by the IGST act. Under IGST, the body responsible for collecting the taxes, is the central
government. After the collection of taxes, it is further divided among the respective states by the central
government.

• Union Territory Goods And Services Tax

The union territory goods and service tax or UTGST is the counterpart of state goods and services tax
which is levied on the supply of goods or services in the union territories of India. The UTGST is
applicable on the supply of goods or services in Andaman and Nicobar islands, Chandigarh, daman Diu,
Dadra and Nagar Haveli, and Lakshadweep. The UTGST is governed by the UTGST act. The revenue
earned from UTGST is collected by the union territory government. The UTGST is a replacement for the
SGST in union territories. Thus, the UTGST will be levied in addition to the CGST in union territories.

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Benefits of GST

• Gst eliminates the cascading effect of tax

• Higher threshold for registration
• Composition scheme for small businesses
• Simple and easy online procedure
• The number of compliances is lesser
• Defined treatment for e- commerce operators
• Improved efficiency of logistics
• Unorganized sector is regulated under gst

Limitation of GST

• Increased costs due to software purchase

• Not being gst- compliant can attract penalties
• Gst will mean an increase in operational costs
• Gst came into effect in the middle of the financial year
• Adapting to a complete online taxation system
• SMEs will have a higher tax burden

GST rates on Selected Industry

Gst has been imposed by the government in order to enhance the economic growth. Since its
implementation it is influencing various sectors of Indian economy. Indian economy consists of mainly
three sectors. Comprising agriculture, industry and service sector.

Pharmaceuticals

Indian pharmaceutical sector is currently third largest in the world in terms of volume. As population
grows, the need for healthcare services increases. This has led to more revenues from pharmaceutical
sector. Once gst gets into action, these taxes would get subsumed. Gst is a unified tax systems across
the nation which will bring ease in doing business and minimize the cascading effect of various taxes.

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Percentage Pharmaceutical Products

0% 1. Human blood and its components,
2. All type of contraceptives.
5% 1. Animal or human blood vaccines,
2. Diagnostic kits for detection of all types of hepatitis
12% 1. Desferrioxamine injection or deferiprone, 2. Cyclosporine, 3.medicaments
(including veterinary medication) used in bio-chemic system and not a
bearing a brand name, 3. Oral re-hydration salts, 4. Drugs or medicines
including their salts and esters and diagnostic test kits, specified in list 3: (1.
Allopurinol 2. Amrinone 3. Amifostine 4. Baclofen 5. Cefoperazone 6.
Desferrioxamine etc) or list 4 (1. Asparaginase, 2. Anti-Haeomophilic factor
concentrate (vii & ix), 3. Blood group sera, 4. Calcium folinate, 5. Cyanamide)
5. Formulations manufactured from the bulk drugs specified in list 1 (1.
Streptomycin, 2. Isoniazid, 3. Thiacetazone, 4. Ethambutol, 5. Sodium pas )
18% All goods not specified else where
1. Glands and other organ for organ- therapeutic uses, dried, whether or not
powdered, extracts of glands or other organ or of their secretions for organ-
therapeutic uses, not elsewhere specified or included
2. Animal blood prepared for therapeutic, prophylactic or diagnostic uses:
antisera and other blood fractions and modified immunological products,
whether or not obtained by means of biotechnological processes, toxins
cultures of micro- organisms ( excluding yeasts) and similar products
3. Medicaments consisting of two or more constituents which have been mixed
together for therapeutic or prophylactic uses, not put up in measured doses
or informs or packings for retail sale including Ayurvedic, Unani, Siddha,
homoeopathic or bio-chemic system medicaments.
28% Nicotine Polacrilex gum

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Automobile

Gst rates for automobile sector have been set at 28% in addition to cess which varies from 1% to 15%
based on the segment, engine size type (petrol/diesel) and size of the for the creation of state
compensation corpus. Currently automobile industry pays number of indirect taxes like excise,
infrastructure cess, import duty, VAT and CST.

There would be a marginal impact on two wheelers as it is going attract base tax rate of 28% against the
existing rate of 30.2%. and for bikes with engine capacity of more than 350 cc like KTM and Royal Enfield
will attract cess of 3% in addition to base rate 28% under Gst resulting into prices of premium bikes
going up in some states. The impact will be limited as this segment accounts for limited share in the
industry sales TVS, HMSI, Suzuki motorcycle India and Yamaha have already reduce their prices to pass
the Gst benefits to its customers.

Under Gst small petrol cars of less than 4 meters and 1200 cc and small diesel cars of less than 4 meters
and 1500 cc engine attract base rate of 28% with cess of 1% and 3% respectively as against the old rate
of 30.2% to 33.5% which depicts the marginal tax savings.

Cars larger than 4 meters under indirect taxes were levied at 51.6%. but under gst the rate is fixed at
43% which shows the positive impact. Electric cars would get a relaxation as tax levied under gst is at
12% against the existing rate of 20.5%.

Large passenger vehicles and SUV’S were taxed at 43% against 55% in pre gst system. To rectify this
anomaly on September 9th the gst council decided to hike cess on larger cars by 5% and on SUV’S by 7%
taking total Gst incidence to 48% and 50% respectively.

This will definitely increase the prices of this vehicles. Under the indirect tax system free goods and
services provided by car manufacturers were not liable for taxation but under gst free services would
also be eligible for taxation. Even on the vehicle booking advance on the date of receipt dealer is
required to pay the gst. Overall for automobile industry gst impact is marginal in nature.

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FMCG

It is one of the fourth largest and fast growing sectors in India. Fast moving consumer goods are those
which are consumable on regular basis under gst there is a shift in the demand for products from
unbranded one’s to branded products and would also improve the supply chain efficiency with the
consolidation of storage hub.

Percentage Items
0.25% Cut and semi-polished stones.
5% Household necessities such as edible oil, sugar, spices, tea, and coffee(
except instant) are included. Coal, mishit/mithai (Indian sweets) and life-
saving drugs.
12% This includes computers and processed food.
18% Toothpaste, hair oil, soap, capital goods and industrial intermediaries.
22-24% Indirect regime and premium category.
28% Small cars, consumer durables like ac and refrigerators, premium cars,
cigarettes, paints, skin care, aerated drinks, high-end motorcycles.

The impact is depending on the product mix composition like for example Colgate is the biggest
beneficiary as its 80% of sales come from toothpaste Paints industry is going to have marginal impact as
the tax rate is 28% against 25% -26%. Items of mass consumption like detergents, shampoos and
deodorants which are used daily are going to hit very hard. On aerated beverages tax of 28% plus cess
of 12% is imposed under gst as against 34% to 35%. Hence, there is a marginal increase in the prices of
aerated drinks. Fmcg players are going to have mixed impact as they have a broader portfolio.

Services

The service sector, also called tertiary sector, is the third of the three traditional economic sectors. The
other two are the primary sector, which covers areas such as farming, mining and fishing, and the
secondary sector which covers manufacturing and making things. The service sector provides services,
rather than producing material commodities. Activities in the service sector include retail, banks, hotels,
real estate, education, health, social work, computer services, recreation, media, communications,
electricity, gas and water supply.

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Percentage Service
0% Chargeable services offered on basic savings bank deposit (BSBD) account opened
under the PMJDY ( Pradhan Mantri Jan Dhan Yojana)
Hotel accommodation for transaction value per unit per day beings Rs. 1000 or less
5% Working for printing of newspapers, Goods transported in a vessel from outside
India, Renting a motor cab without fuel cost, Transport services in AC contract/
stage or radio taxi, Transport by air (scheduled)/air travel for purpose of pilgrimage
via chartered/non- scheduled flights, Tour operator services, Leasing of aircrafts,
Print media ad space
12% Rail transportation of goods in containers from a third party other than Indian
Railways, Air travel excluding economy, Food/ drinks at restaurants without AC/
heating or liquor license, Renting of accommodation for more than Rs. 1000 and less
than Rs. 2500 per day, Railway Wagons, Coaches, rolling stock(without refund of
accumulated input tax credit/ITC), Construction of building for the purpose of sale,
IP rights on a temporary basis, Movie tickets less than or equal to Rs.100, Chit fund
services by foremen, Hotel accommodation for transaction value per unit per day
ranging between Rs. 1001 to 7500
18% Food/drinks at restaurants with liquor license, Food/drink at restaurants with
AC/heating, Outdoor catering, Renting for accommodation for more than Rs.2500
but less than Rs. 5000 per day, Hotel accommodation for transaction value per unit
per day being Rs.7501 or more, Circus Indian classical drama, Supply of works
contract, Movie Tickets over Rs.100, Supply of food, shamiyana, and party
arrangement
28% Entertainment events- amusement facility water parks, theme parks, joy rides,
merry- go- round, race course, go- carting, casinos, ballet, sporting events like IPL,
Race club services, Gambling, Food/drinks at AC 5- star hotels

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Chapter 2

Research Design

Introduction to Research

Research is “creative and systematic work undertaken to increase the stock of knowledge”. It involves
the collection, organization, and analysis of information to increase understanding of a topic or issue. A
research project may be an expansion on past work in the field. To test the validity of instruments,
procedures, or experiments, research may replicate elements of prior projects or the project as a whole.
The primary purposes of basic research are documentation, discovery, interpretation, and the research
and development of methods and system for the advancement of human knowledge. Approaches to
research depend on epistemologies, which vary considerably both within and between humanities and
sciences. There are several forms of research : scientific, humanities, artistic, economic, social, business,
marketing, practitioner research, life, technological, etc. The scientific study of research practices is
known as meta-research.

Meaning of Research

Research means search for knowledge. It aims at finding out truth. Art of scientific investigation way of
thinking, critically examining aspects of daily life. Fact finding process. Research is a process steps used
to collect and analyse information to increase our understanding of a topic or issue.

Definition of Research

According to Clifford woody (Kothari 1998) research comprises of, “defining and redefining problems,
formulating hypothesis or suggested solutions; collecting organizing and evaluating data; making
deductions and reaching conclusions to determine whether they fit the formulating hypothesis.”

According to Redman and Mory (1923), defined research is a “systematized effort to gain new
knowledge”.

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Research Methodology

Research methodology is a way to systematically solve the research problem. It may be understood as a
science of studying how research is done scientifically. In it we study the various step that are generally
adopted by a researcher in studying his research problem along with the logic behind them. It is
necessary for the researcher to know not only the research methods/techniques but also the
methodology.

Stages of Research

• Identify the problem

• Review the literature
• Clarify the problem
• Clearly define terms and concepts
• Define the population
• Develop the instrumentation plan
• Collect data
• Analyze the data

Review of Literature

A literature review or narrative review is a type of review article. A literature review is a scholarly paper
that presents the current knowledge including substantive findings as well as theoretical and
methodological contributions to a particular topic. Literature reviews are secondary sources and do not
report new or original experimental work. Most often associated with academic oriented literature,
such reviews are found in academic journals and are not to be confused with book reviews, which may
also appear in the same publication.

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1. A.D. Manjunath ( February 2021) “ A study on impact of Gst on fmcg companies in India” The
method of study is descriptive research and the data was collected through primary data According
to the data analysis of financial statement most of the company’s sales and net profit has significant
impact after implementing gst. Nestle India ltd, Marico ltd, ITC ltd, HUL, Godrej, Dabur and Britannia
have significant impact on Gst. Manpas and p & g do not have significant impact on gst. Gst came
into effect in middle of the financial year. As gst was implemented on the 1 st of July 2017, businesses
followed the old tax structure for the first 3 months and gst for the rest of the financial year. Most of
the people does not know about gst, people thinks we pay extra money to the government but CGST
,SGST and IGST are nothing but new names for central excise/ service tax, vat and cst Increased cost
due to software purchase and increase in operational cost. Gst is an online taxation system. As
earlier business is switching from pen and paper invoicing and filling to online returns filling and
making payments. This is tough for some smaller business to adapt to.
2. Mr. Arun Gautam, Dr.Gaurav Lodha, Dr. Rohit Bansal, Dr. M.L.Vadera ( January 2020) “How fast gst is
moving the Indian fmcg sector :empirical study According to the expectation of price reduction
highest rank is provided to sanitary napkins. Companies such as patanjali, ITC, HUL, and Marico have
either slashed the prices of goods or increased the volume of the product, extending the tax benefits
to consumers under the gst system.
3. Arun Gautam, Shivani Kampani, Gaurav Lodha, Vader M L ( August-2019) “Public policy of gst in
India: a study on pharmaceutical sector with special reference to healthcare” Broadly speaking the
impact of gst on the country has been mostly positive and progressive. The industry specialists have
confidence that after the enactment of gst, customers and industry players have entered a win-win
situation. The healthcare industry has profited from the gst inaction as it has diminished the
complexities and various obstacles to the extension of trade. The healthcare sector, including
medical tourism, is on the way of expanded profitability and promising development in the near
future.
4. Dr. Manisha Shinde ( March 2019) “ A study of impact and challenges of gst on various constituents
of Indian economy” Different indirect taxes will reduces by gst since there will be no hidden taxes it
brings about transparency. Due to one type of tax i.e. gst it will remove economic distortions and
contribute towards the development of a common national market. It is a huge step in support of
realizing make in India and digital India initiative.

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5. Sreekumar P.G., Chithra R (September 2018) “ A study on the impact of gst in fmcg sector with
special reference to Palakkad district, Kerala Among 30 respondents 70% are female. 63.33% of the
respondents are employed and 26.67% are doing business as occupation and remaining are home
makers. Almost half of the respondents are having their monthly family income blow10000 and
another portion between 10000 to 20000 and a few remaining is above 20000. Most of the
consumers are having awareness about the implementation of gst for fmcg. Around 3/4th Of The
Respondents Major Portion Of Them Are In The Opinion That Gst Would Probably Beneficial To
Consumers. An elevated proportion of the respondents believe that gst will cause higher price of
goods. More than partially the respondents are in the opinion that government will make change in
the tax rate of goods. According to the expectation of price reduction highest rank is provided to
sanitary napkins. The monthly consumption expenditure of consumers is not reduced after gst.
There is a high degree of positive correlation between before and after gst monthly expenditure.
6. Abhishek Mehrotra And Dr. Rosy Kalra(June 2018) “ Impact of goods and service tax on Indian
economy” The total Indian market has been unified due to one tax. It has also facilitated in seamless
movement of the goods and the services across the states with the additional benefit in reduction in
the overall costing of the product. It has brought reasons to rejoice for both, the end customers as
well as the businessman or the restaurant owner. This will also help to boost the restaurant industry
in the coming period. The suppliers, the manufacturers, the wholesalers and the retailers are now
able to recover the tax incurred on the input due to introduction of input tax credit. This has also
reduced the cost of doing business, thus enabling the manufacturers compete with the competitive
pricing strategy in the international and national market. The gst has also formed uniformity
between the states in tax point of view regardless of the place of manufacturing and place of
consumption. It has also irradiated the cascading and the double taxation which has enabled better
compliance through lower burden of tax on the goods and the services.
7. Mathew Abraham (2018) “A customer centric study on gst in insurance and automobile sector” The
findings of the study indicate that the customers having good perception that gst concept brings
lucidity in taxation structure and is comparatively better than value added tax ( VAT) in India. In the
last two decades, the customers tastes and preferences have been rapidly changing in the
automobile and insurance industry due to the technological development. The government should
provide more awareness programme and training on gst concept. The merits and demerits of gst
system have been ranked appropriately by the customers.

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8. Nallala Roopa and Dr. s. Aruna (2018) “ Comprehensive measures of the impact of goods and
services tax (GST) on Indian economic development with a special reference to automobile industry”
The gst has been valuable for the end shopper, seller, just as the producer. The impact of gst on the
automobile industry for each fragment is as given beneath, try to investigate Purchaser: As you can
see from over, the general tax rate exacted on automobiles as of now, has decreased altogether
when contrasted with the rates material before gst. Because of the valuable conclusion proprietor
needs to pay a lower tax sum than before the presentation of gst. Vendors/shippers: Before the gst,
dealers and merchants can’t guarantee VAT and extract obligation, but now after the gst
incorporation importers and sellers in the automobile industry are getting all the advantages from
the new tax system as they can guarantee the tax paid. Makers: The current gst frame work
subsumes all past taxes that diminish the general expense of assembling. Hence, carmakers
additionally getting all the advantages from the new tax system. They are additionally arriving at
more customers. The presentation of gst has been an extraordinary help in automobile segments it
is an advantageous advance on the grounds that, other than the vehicle, administrations and
guarantees offered via carmakers are like wise taxed, and there is a rebate in pretty much every
stage. Some of then were not taxed before yet now nearly everything is being taxed under the gst
framework. Anybody can see that the gst system centres around the utilization state more than the
inception state, which gives a way better development structure for the automobile industry.
9. Prof. Ranjana Upashi (2017) “ Study on effect of goods and services tax on different sectors in India
Fmcg players are going to have mixed impact as they have a broader portfolio. There is an increase
of 1% in tax rate under gst on home appliances. Post gst Ayurvedic medicines are going to become
costlier. Fare charges for economy class is going to be cheaper to make flying by air affordable to
masses. Marginal increase in the prices of ac, first class train tickets and transportation of goods by
railways. Customer has to pay more for availing financial services. Gst impact is marginally lower to
restaurants since tax rate has decreased and even there is benefit of input tax credit is available.
With the availability of input tax credit and reduction in the taxes for cement, bricks, iron
construction sector is going to get benefit. In order to discourage smoking along with 28% base rate
of tax cess is also fixed on cigarettes. There is adverse effect on oil and gas sector. New gst rates will
tax telecom companies higher by a couple of percentage points and that may impact the profitability
of the industry. Gst impact is marginal on two wheelers, small petrol/ diesel cars and premium bikes
would cost more.

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Title of The Study

“A study on gst impact on selected industry with reference to Tumkur city”

Statement of Problem

To analysis the gst impact on fmcg, pharmaceuticals, services, & automobile . Whether the gst is
impacting in positive way or in negative way.

Objectives of The Study

• To analyze the impact of gst on register dealer in fmcg, pharmaceuticals, services, & automobile
industry.
• To analyze retailers perception towards GST regime.
• To study the need and the importance of GST in Indian economy.
• To study role of Selected Industry in Indian economy.
• To study the impact of GST implementation on Indirect Tax payers.

Need of The Study

A gst is replacing various indirect taxes used to be levied by central and state government, it has an
impact on all most all the sectors of Indian economy. It is very important to study the possible positive
and negative impact of gst implementation of gst implementation on selected industry.

Scope of The Study

The present study was conducted to analyze the Impact of GST on Selected Industry of Indian with
reference to Tumkur City with sample size of 100 respondents. It covered the opinions of the retailers .
It brought to light the impacts of GST on Selected Industry.

Method of Research

This study is descriptive in nature because here we have explained the probable impact of gst on
selected industry. Where the primary data was collected directly from respondents through a structured
questionnaires

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Sampling Design

To carry out this project convenient method has been used.

Sample Population

The sample population is Tumkur city

Sample Size

The total sample size for the data collection for the study was 100 respondents and the survey was
conducted in Tumkur city.

Sample Technique

Questionnaires were the tools for data collection. The questionnaires is based on the objective of the
study.

Sources of Data

The data was collected through Primary data by the form of questionnaire and secondary data from
websites, journals.

Period of The Study

The period of the study May2021- September2021.

Plan of Analysis

The research uses various tools like

• charts
• Tables

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Limitation of The Study

• This study is subject to five months.

• The present COVID- 19 situation is the main limitation.
• This study covers only Indirect Tax goods and services and does not include Direct Tax.
• The present study is restricted to Tumkur District.

Chapter Layout

The study is presented in ‘5’ chapters

Chapter 1: Introduction

Introduction to Tax, meaning of Tax, Tax benefits, importance of Taxes, importance of Taxes in society,
purpose of Tax, different types of Taxes, advantages of direct Tax, disadvantages of direct Tax,
advantages of indirect Taxes, disadvantages of indirect Taxes, introduction to GST, meaning of GST,
types of gst, benefits of GST, limitation of GST, GST rates on selected industry.

Chapter 2: Research design

Introduction to research, meaning of research, definition of research, research methodology, stages of

research, review of literature, statement of the problem, objectives of the study, need of the study,
scope of the study, method of research, sampling design, sources of data, period of the study, plan of
analysis, limitations of the study.

Chapter 3: Company profile

FMCG industry in India- introduction, market size, investment/developments, government initiatives,

road ahead, Pharmaceuticals industry in India- introduction, market size, investments and recent
developments, government initiatives, road ahead, Services industry in India- introduction, market size,
industry developments, government initiatives, road ahead, Automobiles industry in India- introduction,
market size, investments, government initiatives , achievements, road ahead.

Chapter 4: Data analysis and data interpretation

This chapter deals with an analysis of data by the information collected through the questionnaire from
respondents.

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Chapter 5: Findings, suggestions and conclusion

This chapter includes findings, suggestions and conclusion have been drawn based on the analysis.

Bibliography

Webliography

Annexure

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Chapter-3

Industry Profile

Pharmaceuticals Industry in India

Introduction

India is the largest provider of generic drugs globally. Indian pharmaceutical sector supplies over 50% of
global demand for various vaccines, 40% of generic demand in the us and 25% of all medicine in the UK.
Globally, India ranks 3rd in terms of pharmaceutical production by volume and 14 th by value. The domestic
pharmaceutical industry includes a network of 3,000 drug companies and ~10,500 manufacturing units.
India enjoys an important position in the global pharmaceuticals sector. The country also has a large pool
of scientists and engineers with a potential to steer the industry ahead to greater heights. Presently, over
80% of the antiretroviral drugs used globally to combat AIDS (Acquired Immune Deficiency Syndrome) are
supplied by Indian Pharmaceutical firms.

Market Size

According to the Indian economic survey 2021, the domestic market is expected to grow 3x in the next
decade, India’s domestic pharmaceutical market is estimated at US$42 billion in 2021 and likely to reach
US$ 65 billion by 2024 and further expand to reach~ US$120-130 billion by 2030. India’s biotechnology
industry comprising biopharmaceuticals, bio- services, bio-agriculture, bio- industry, and bioinformatics.
The Indian biotechnology industry was valued at US$64 billion in 2019 and is expected to reach US$ 150
billion by 2025. India’s drugs and pharmaceuticals exports stood at US$17.57 billion inFY21 (From
December 2020 to April 2021).

Investments and Recent Developments

The Union Cabinet has given its nod for the amendment of existing foreign direct investment (FDI) policy in
the pharmaceutical sector in order to allow FDI up to 100% under the automatic route for manufacturing of
medical devices subject to certain conditions. The drugs and pharmaceuticals sector attracted cumulative
FDI inflow worth US$17075 billion between April 2000 and December 2020 according to the data released
by department for promotion of industry and internal trade (DPIT).

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Some of the recent developments/investments in the Indian pharmaceutical sector are as follows

• In April 2021, national Pharmaceutical pricing authority (NPPA) fixed the price of 81 medicines
including off-patent anti-diabetic drugs allowing due benefits of patent expiry to the patients.
• In February 2021, aurobindo pharma announced plans to procure solar power from two open
access projects of NVNR power and infra in Hyderabad. The company will acquire 26% share capital
in both companies with an US$ 1.5 million investment. The acquisition is expected to be completed
by the end of march 2021.
• In February 2021, the Telangana government partnered with active to open a ‘Fast Trak’ lab to
strengthen the biopharma industry of the state.
• In February 2021, Glen mark pharmaceuticals limited launched SUTIB, a generic version of sunitinib
oral capsules, for the treatment of kidney cancer in India.
• In February 2021, Natco pharma launched brivaracetam for the treatment of epilepsy in India.
• In February 2021, the Russian ministry of health allowed glen mark pharmaceuticals to market its
novel fixed- dose combination nasal spray in Russia.
• In January 2021, the central government announced to set up three bulk drug parks to make
chemicals compounds or active pharmaceutical ingredients (APIs) for medicines and reduce their
imports from China.

Government Initiatives

Some of the initiatives taken by the government to promote the pharmaceutical sector in India are as
follows

• To achieve self- reliance and minimise import dependency in the country’s essential bulk drugs,
the department of pharmaceuticals initiated a PLI scheme to promote domestic manufacturing by
setting up Greenfield plants with minimum domestic value addition in four separate ‘Target
segments’ with a cumulative outlay of Rs 6,940 crore (US$ 951.27 million) from FY21 to FY30.
• In February 2021, the Punjab government announced to establish three pharma parks in the state.
Of these, a pharma park has been proposed at bathinda, spread across ~1,300 aces area and
project worth ~Rs 1,800 crore (US$245.58 million). Another medical park worth Rs.180 crore (
US$24.56 million) has been proposed at Rajpura and the third project, a Greenfield project, has
been proposed at wazirabad, fatehgarh sahib.

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• Under union budget 2021-22, the ministry of health and family welfare has been allocated Rs.
73,932 crore (US$ 10.35 billion) and the department of health research has been allocated Rs
2,663 crore (US$365.68 billion). The government allocated Rs 37,130 crore (US$5.10 billion) to the
‘National Health Mission’. PM Atmanirbhar Swasth Bharat Yojana was allocated Rs 64,180 crore
(US$ 8.80 billion) over six years. The ministry of AYUSH was allocated Rs. 2,970 crore (US$ 407.84
million), up from Rs 2,122 crore (US$291.39million).

Road Ahead

Medicine spending in India is project to grow 9 12% over the next five years, leading India to become one
of the top 10 countries in terms of medicine spending. Going forward, better growth in domestic sales
would also depend on the ability of companies to align their product portfolio towards chronic therapies
for diseases such as cardiovascular, anti- diabetes, anti- depressants and anti- cancers, which are on the
rise. The Indian government has taken many steps to reduce costs and bring down healthcare expenses.
Speedy introduction of generic drugs into the Indian pharmaceutical companies. In addition, the thrust on
rural health programmes, life saving drugs and preventive vaccines also augurs well for the pharmaceutical
companies.

Automobiles Industry in India

Introduction

In 2020, India was the fifth- largest auto market, with~ 3.49 million units combined sold in the passenger
and commercial vehicles categories. It was the seventh largest manufacturer of commercial vehicles in
2019. The two wheelers segment dominate the market in terms of volume owing to a growing middle class
and a young population. Moreover, the growing interest of the companies in exploring the rural markets
further aided the growth of the sector. India is also a prominent auto exporter and has strong export
growth expectations for the near future. In addition, several initiatives by the government of India and
major automobile players in the Indian market is expected to make India a leader in the two-wheeler and
four- wheeler market in the world by 2020.

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Market Size

Domestic automobiles production increased at 2.36% CAGR between FY16-20 with 26.36 million vehicles
being manufactured in the country in FY20. Overall, domestic automobiles sales increased at 1.29% CAGR
between FY16-FY20 with 21.55 million vehicles being sold in FY20. Two wheelers and passenger vehicles
dominate the domestic Indian auto market. Passenger car sales are dominated by small and mid-sized cars.
Two wheelers and passenger cars accounted for 80.8% and 12.9% market share, respectively, accounting
for a combined sale of over 20.1 million vehicles in FY20. Two- wheeler sales stood at 1,195,445 units in
march 2021, compared with 1,846,613 units in march 2020, recording a decline of 35.26%. Passenger
vehicle (PV) sales stood at 279,745 units in march 2021, compared with 2,17,879 units in march 202,
registering a growth of 28.39%. As per federation of automobile dealers associations (FADA), PV sales in
December 2020 stood 271,249 units, compared with 218,775 units in December 2019, registering a 23.99%
growth. Overall, automobile export reached 4.77 million vehicles in FY20, growing at a CAGR of 6.94%
during FY16-FY20. Two wheelers made up 73.9% of the vehicles exported, followed by passenger vehicles
at 14.2%, three wheelers at 10.5% and commercial vehicles at 1.3%. EV sales, excluding E-rickshaws, in
India witnessed a growth of 20% and reached 1.56 lakhs units in FY20 driven by two wheelers. According to
NITI Aayog and rocky mountain institute (RMI) India’s EV finance industry is likely to reach Rs 3.7 lakhs
crore (US$50 billion) in 2030. A report by India energy storage alliance estimated that EV market in India is
likely to increase at a CAGR of 36% until 2026. In addition, projection for EV battery market is forecast to
expand at a CAGR of 30% during the same period. Premium motorbike sales in India recorded seven-fold
jump in domestic sales, reaching 13,982 units during April- September 2019. The luxury car market is
expected to register sales of 28,000-33,000 units in 2021, up from 20,000 units sold in 2020. The entry of
new manufacturers and new launches is likely to propel this market in 2021.

Investments

In order to keep up with growing demand, several auto makers have started investing heavily in various
segments of the industry during the last few months. The industry has attracted foreign direct investment
(FDI) worth US$25.40 billion between April 2000 and December 2020, according to the data released by
department for promotion of industry and internal trade (DPIT).

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Some of the recent/ planned investments and developments in the automobile sector in India are as
follows

• In 2019-20, the total passenger vehicles sales reached ~2.8 million, while~2.7 million units were
sold in FY21.
• In February 2021, the Delhi government started the process to set up 100 vehicle battery charging
points across the state to push adoption of electric vehicles.
• In January 2021, Fiat Chrysler Automobiles (FCA) announced an investment of US$250 million to
expand its local product line-up in India.
• A cumulative investment of ~Rs 12.5 trillion (US$180 billion) in vehicle production and charging
infrastructure would be required until 2030 to meet India’s electric vehicle (EV) ambitions.
• In January 2021, Lamborghini announced it is aiming to achieve sales in India higher than the 2019-
levels, after recovering from pandemic-induced disruptions.
• In January 2021, Tesla, the electric car maker, set up a R&D centre in bengaluru and registered its
subsidiary as Tesla India motors and energy private limited.
• In November 2020, Mercedes Benz partnered with the state bank of India to provide attractive
interest rates, while expanding customer base by reaching out to potential HNI customers of the
bank.
• Hyundai Motor India invested~ Rs 3,500 crore (US$993 million) commitment made by the
company to the Tamil Nadu government in 2019.
• In October 2020, kinetic green, an electric vehicles manufacturer, announced plan to set up a
manufacturing facility for electric golf carts besides a battery swapping unit in Andhra Pradesh. The
two projects involving setting up a manufacturing facility for electric golf carts and a battery
swapping unit will entail an investment of Rs. 1,750 crore (US$236.27 million).
• In October 2020, Japan bank for international cooperation (JBIC) agreed to provide US$1 billion
(Rs. 7,400 crore) to SBI (State Bank of India) for funding the manufacturing and sales business of
suppliers and providing auto loans for the purchase of Japanese automobiles in India.
• In October 2020, MG Motors announced its interest in investing Rs. 1,000 crore (US$135.3 million)
to launch new models and expand operations in spite of the anti-china sentiments.
• In October 2020, Ultraviolet automotive, a manufacturer of electric motorcycle in India, raised a
disclosed amount in a series B investment from Go Frugal Technologies, a software company.

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• In September 2020, Toyota kirloskar motors announced investments of more than Rs 2,000crore
(US$272.81 million) in India directed towards electric components and technology for domestic
customers and exports.
• During early September 2020, Mahindra & Mahindra singed a MoU with Israel- based REE
automotive to collaborate and develop commercial electric vehicles.
• In April 2020, TVS Motor Company bought UK’s iconic sporting motorcycle brand, Norton, for a
sum of about Rs. 153 crore (US$21.89 million), making its entry into the top end (above 850cc)
segment of the superbike market.
• In March 2020, Lithium Urban Technologies partnered with renewable energy solutions provider,
fourth partner energy, to build charging infrastructure across the country.
• In January 2020, Tata Auto comp Systems, the auto- components arm of Tata group entered a joint
venture with Beijing- based prestolite electric to enter the electric vehicle (EV) components
market.

Government Initiatives

The government of India encourages foreign investment in the automobile sector and has allowed 100%
foreign direct investment (FDI) under the automatic route.

Some of the recent initiatives taken by the government of India are

• In union budget 2021-22, the government introduced the voluntary vehicle scrap page policy, which
is likely to boost demand for new vehicles after removing old unfit vehicles currently plying on the
Indian roads.
• In February 2021, the Delhi government started the process to set up 100 vehicle battery charging
points across the state to push adoption of electric vehicles.
• The union cabinet outlaid Rs 57,042 crore (US$7.81 billion) for automobiles and auto components
sector in production- linked incentive (PLI) scheme under the department of heavy industries.
• The government aims to develop India as a global manufacturing centres and a research and
development (R&D) hub.
• Under NATRIP, the government of India is planning to set up R&D centres at a total cost of
US$388.5 million to enable the industry to be on par with global standards.

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• The ministry of heavy industries, government of Indian has shortlisted 11 cities in the country for
introduction of EVs in their public transport systems under the FAME (Faster Adoption and
Manufacturing of (Hybrid) and Electric Vehicles in India) scheme. The government will also set up
incubation centre for start-ups working in the EVs space.
• In February 2019, the government of India approved FAME-II scheme with a fund requirement of Rs
10,000 crore (US$1.39 billion) for FY20-22.

Achievements

Following are the achievements of the Indian automotive sector.

• In H1209, automobile manufacturers invested US$501million in India’s auto-tech start-ups

according to venture intelligence.
• Investment flow into EV start-ups in 2019 (till end of November) increased nearly 170% to reach
US$397 million.
• On 29th July 2019, inter- ministerial panel sanctioned 5,645 electric buses for 65 cities.
• NATRIPs proposal for “Grant-In-Aid for test facility infrastructure for EV performance certification
from NATRIP implementation and sanctioning committee (PISC) on 3rd January 2019.
• Under NATRIP, following testing and research centres have been established in the country since
2015.
• International Centre for Automotive Technology (ICAT), Manesar
• National Institute for Automotive Inspection, Maintenance & Training (NIAIMT),Silchar
• National Automotive Testing Tracks (NATRAX), Indore
• Global Automotive Research Centre (GARC), Chennai
• SAMARTH Udyog- Industry 4.0 centres: ‘Demo cum experience’ centres are being set up in the
country for promoting smart and advanced manufacturing helping SMEs to implement industry 4.0
(automation and data exchange in manufacturing technology).

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Road Ahead

The automobile industry is supported by various factors such as availability of skilled labour at low cost,
robust R&D centres, and low- cost steel production. The industry also provides great opportunities for
investment and direct and indirect employment to skilled and unskilled labour. Indian automotive industry
(including component manufacturing) is expected to reach Rs 16.16-18.18 trillion (US$251.4-282.8 billion)
by 2026. The Indian auto industry is expected to record strong growth in 2021-22, post recovering

Fmcg Industry in India

Introduction

Fast-moving consumer goods ( FMCG) sector is India’s fourth largest sector with household and personal
care accounting for 50% of fmcg sales in India. Growing awareness, easier access and changing lifestyles
have been the key growth drivers for the sector. The urban segment ( accounts for a revenue share of
around 55%) is the largest contributor to the overall revenue generated by the fmcg sector in India.
However, in the last few years, the fmcg market has grown at a faster pace in rural India compared to
urban India. Semi-urban and rural segments are growing at a rapid pace and fmcg products account for
50% of the total rural spending.

Market Size

The retail market in India is estimated to reach US$1.1 trillion by 2020 from US$840 billion in 2017, with
modern trade expected to grow at 2025% per annum, which is likely to boost revenue of fmcg companies.
Revenue of fmcg sector reached Rs.3.4 lakhs crore (US$52.75 billion) in FY18 and is estimated to reach
US$103.7 billion in 2020. From October 2020 to December 2020, the fmcg market rose 7.1% driven by food
items, health, hygiene and rural areas. Rise in rural consumption will drive the fmcg market. it contributes
around 36% to the overall fmcg spending. In the third quarter of FY20 in rural recovery of 10.6% due to
various government initiatives ( such as packaged staples and hygiene categories); high agricultural
produce, reverse migration and a lower unemployment rate.

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Investments/ Developments

The government has allowed 100% FDI in food processing and single-brand retail and 51% in multi- brand
retail. This would bolster employment, supply chain and high visibility for fmcg brands across organised
retail markets thereby bolstering consumer spending and encouraging more product launches. The sector
witnessed healthy FDI inflows of US$17.8% billion from April 2000 to September 2020.

Some of the recent developments in the fmcg sector are as follows

• In April 2021, Rasna launched affordable immunity boosting syrup concentrates, comprising vitamin
E, B12, B6, Selenium and Zinc.
• In March 2021,ITC Ltd. Launched milkshakes and cakes to expand in categories such as chocolates
and staples.
• In March 2021, sanjay ghodawat group launched RIDER, an energy drink. It is available across all
modern retail formats such as supermarkets, general stores and e- commerce platforms.
• In February 2021, Nestle India announced plans to reach ~1.2 lakhs villages (with each having
population of over 5,000) over the next 2-3 years.
• In February 2021, Food and snack company, haldiram’s partnered with Africa’s future life to bring
its nutritional food product range to India. The two companies launched a range of four products-
smart foods, smarts oats and ancient grains, crunchy granola and high protein.
• In January 2021, Tata consumer products announced that it is looking for ways to add more of its
beverages’ portfolio on to a direct-to-consumer plat form to capture the urban online market.
• In January 2021,Tata consumer products introduced two new products, Tata tea tulsi green and
Tata tea gold care, and reformulated its existing Tetley green tea, with added Vitamin C.
• In January 2021, Dabur India decided to foray into the ‘Cow ghee’ category. These product will be
prepared from milk sourced from indigenous cows bred in Rajasthan.
• In January 2021, Del Monte has launched a special 1 litre pouch pack in India, priced at Rs. 250
(US$3.42), thereby making olive oil affordable to consumers.
• In January 2021, Fmcg businesses in India are planning to expand their oral care portfolio by
entering new and niche categories such as mouth sprays, Ayurvedic mouth cleansers and
mouthwashes to meet the rising consumer demand for hygiene products.

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• In December 2020, Godrej consumer products limited (GCPL), under its godrej proclean brands, has
ventured into home cleaning products to meet the rising demand for cleaning and hygiene products
among Indian consumers. The home cleaning products segment, which includes branded floor,
toilet and bathroom cleaners, is estimated to be~ Rs. 2,600 crore (US$354.05 million).
• Fmcg companies are focusing on strengthening their e- commerce engagement. An Ayurveda baby
care range has been introduced by Dabur, which will be sold only on e- commerce platforms. With
its contribution expanding from 1.5% to 5.6% the e- commerce division of the group has more than
doubled over the previous year. Similarly, in the first quarter of FY21, Marico’s e- commerce sector
has grown 37% YoY, while Emami’s e- commerce business doubled to > 100%.

Government Initiatives

Some of the major initiatives taken by the government to promote the fmcg sector in India are as follows:

• On November 11, 2020, union cabinet approved the production – linked incentive (PLI) scheme in
10 key sectors (including electronics and white goods) to boost India’s manufacturing capabilities,
exports and promote the ‘Atmanirbhar Bharat’ initiative.
• Developments in the packaged food sector will contribute to increased prices for farmer and
reduce the high levels of waste. In order to provide support through the PLI scheme, unique
product lines- with high – growth potential and capabilities to generate medium – to large –
scale jobs – have been established.
• The government of India has approved 100% FDI in the cash and carry segment and in single –
brand retail along with 51% FDI in multi- brand retail.
• The government has drafted a new consumer protection bill with special emphasis on setting up an
extensive mechanism to ensure simple, speedy, accessible, affordable and timely delivery of justice
to consumers.
• The goods and services tax (GST) is beneficial for the fmcg industry as many of the fmcg products
such as soap, toothpaste and hair oil now come under the 18% tax bracket against the previous rate
of 23-24%. Also gst on food products and hygiene products have been reduced to 0-5% and 12-18%
respectively.
• Gst is excepted to transform logistics in the fmcg sector into a modern and efficient model as all
major corporations are remodelling their operations into larger logistics and warehousing.

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Road Ahead

Rural consumption has increased, led by a combination of increasing income and higher aspiration levels.
There is an increased demand for branded products in rural India. The rural fmcg market in India is
expected to grow to US$220 billion by 2025 from US$23.6 billion in FY18. On the other hand, with the
share of unorganised market in the fmcg sector falling, the organised sector growth is expected to rise with
increased level of brand consciousness, augmented by the growth in modern retail. Another major factor
propelling the demand for food services in India is the growing youth population, primarily in urban
regions. India has a large base of young consumers who from majority of the workforce, and due to time
constraints, barely get time for cooking. Online portals are expected to play a key role for companies trying
to enter the hinterlands. Internet has contributed in a big way, facilitating a cheaper and more convenient
mode to increase a company’s reach. The number of internet users in India is likely to reach 1 billion by
2025. It is estimated that 40% of all fmcg consumption in India will be made online by 2020. The online
fmcg market is forecast to reach US$45 billion in 2020 from US$ 20 billion in 2017. It is estimated that India
will gain US$ 15 billion a year by implementing gst. Gst and demonetisation are expected to drive demand,
both in the rural and urban areas, and economic growth in a structured manner in the long term and
improved performance of companies within the sector.

Services Industry in India

Introduction

The services sector is not only the dominant sector in India’s GDP, but has also attracted significant foreign
investment, has contributed significantly to export and has provided large-scale employment. India’s
services sector covers a wide variety of activities such as trade, hotel and restaurants, transport, storage
and communication, financing, insurance, real estate, business services, community, social and personal
services, and services associated with construction.

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Market Size

The services sector is a key drive of India’s economic growth. The sector contributed 55.39%
to India's gross value added at current price in fy20# . GVA at basic prices at current price in the
second quarter of 2020-2021 is estimated at rs. 42.80 lakhs crore (us$ 580.80 billion) , against rs 44.66
lakhs crore (us$ 633.57 billion) in the second quarter of 2019-20, showing a contraction of 4.2%. According
to RBI, in February 2021, service exports stood at us$17.54 billion while imports stood at us$ 10.61 billion.
Nikkei India service purchasing managers index (PMI) decreased to 54.6 in march 2021 from 55.3 February
2021.

Industry Developments

Some of the developments in the services sector in the recent past are as follows

• The services* category in India attracted cumulative foreign direct investment (fdi) worth us$ 85.86
billion between April 2000 and December 2020. The services category ranked 1 st in fdi inflow as per
data released by the department for promotion of industry and internal trade (DPIT).
• In April 2021, the ministry of education and university grants commission started a series of online
interactions with stakeholders to streamline forms and processes to reduce compliance burden in
the higher education sector, as a follow-up to the government’s focus on ease of doing business to
enable ease of living for stakeholders.
• On March 17, 2021, the health ministry’s e sanjeevani telemedicine service crossed 3 million (30
lakhs) Teleconsultations since its launch, enabling patient - to - doctor consultations from the
confines of their home and doctor - to - doctor consultations.
• In April 2021, Elon musk’s space x has started accepting pre- orders for the bets version of its star
link satellite internet service in India for a fully refundable deposit of us$ 99. Currently, the
department of telecommunications (dot) is screening the move and more developments will be
unveiled soon.
• In December 2020, a cohort of six health-tech start-ups AarogyaAI, BrainsightAI, fluid AI, in med
prognostics, wealthy therapeutics, and onward assist - have been selected by the India Edison
accelerator, fuelled by GE healthcare. India Edison accelerator, the company’s first start- up
partnership programme focused on Indian mentors, creates strategic partners to co- develop
healthcare solutions.

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• The Indian healthcare industry is expected to shift digitally enabled remote consultations via
Teleconsultations. The telemedicine market in India is expected to increase at a CAGR of 31% from
2020 to 2025.
• In December 2020, gamma skills automation training introduced a unique robotics and automation
career launch programme for engineers, an industry 4.0 hands- on skill learning centre located at
IMT Manesar, Gurgaon in Haryana.
• In December 2020, the ‘IGNITE’ programme was initiated by Siemens, BMZ and MSDE to encourage
high- quality training and technical education ‘IGNITE’ aims to develop highly trained technicians,
with an emphasis on getting them ready for the industry and future, based on the German dual
vocational educational training (DVET) model. By 2024, this programme aims to upskill~40,000
employees.
• In October 2020, Bharti Airtel entered cloud communications market with the launch of business-
centric ‘Airtel IQ’

Government Initiatives

The government of India recognises the importance of promoting growth in services sector and
provides several incentives across a wide variety of sectors like health care, tourism, education,
engineering, communications, transportation, information technology , banking finance and
management among others.

The government of India has adopted few initiatives in the recent past, some of these are as follows

• Under Union Budget 2021- 2022 The Government Allocated Rs 7,000 crore ( US$ 963.97 million ) to
the Bharat Net programme to boost digital connectivity across India.
• FDI limit for insurance companies has been raised from 49% to 74% and 100% for insurance
intermediates.
• On January 15, 2021, the third phase of Pradhan Mantri Kaushal Vikas Yojana ( PMKVY) was
launched in 600 districts with 300+ skill courses. Spearheaded by the Ministry of Skill development
and entrepreneurship, the third phase will focus on new- age and COVID- related skills. PMKVY 3.0
aims to train eight lakhs candidates.

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• In January 2021, the department of telecom, government of India, signed an MOU with the Ministry
of communications, government of Japan, to strengthen cooperation in the areas of 5g
technologies, telecom security and submarine optical fibre cable system.
• On November 4, 2020, the union cabinet, chaired by the prime minister, Mr. Narendra Modi,
approved to sign a memorandum of understanding (MOU) between the ministry of communication
and Information Technology and the department of Digital, culture, media and sports (DCMS) of
united kingdom government to cooperate in the field of telecommunications/ information and
communication technologies (ICTs).
• In October 2020, the government selected Hughes communications India to connect 5,000 village
Panchayats in border and Naxal- affected states and island territories with satellite broadband
under Bharat Net Project by March 2021.
• In September 2020, the government announced that it may infuse Rs. 200 billion (US$ 2.72 billion)
in public Sector banks through recapitalisation of bonds
• In the next five years, the Ministry of Electronics and Information Technology is working to increase
the contribution of the digital economy to 20% of GDP. The government is working to build cloud-
based infrastructure for collaborative networks that can be used for the creation of innovative
solutions by AI entrepreneurs and Start-ups.
• On Independence day 2020, Prime Minister Mr. Narendra Modi announced the National Digital
Health Mission (NDHM) to provide a unique health ID to every Indian and revolutionise the
healthcare Industry by making it easily accessible to everyone in the country. The policy draft is
under ‘ public consultation’ until September 21, 2020.
• In September 2020, the government of Tamil Nadu announced a new electronics and
manufacturing policy aligned with the old policy to increase the state’s electronics output to US$
100 billion by 2025. Under the policy, it aims to meet the requirement for incremental human
resource by up skilling and training> 100,000 people by 2024.
• Government of India has launched the national broadband mission with an aim to provide
broadband access to all villages by 2022.

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Road Ahead

By 2023, healthcare industry is expected to reach US$132 billion. India’s digital economy is estimated to
reach US$1 trillion by 2025. By end of 2023, India’s IT and business services sector is expected to reach
US$14.3 billion with 8% growth. The implementation of the goods and services tax has created a common
national market and reduced the overall tax burden on goods. It is expected to reduce costs in the long
run- on account of availability of GST input credit, which will result in the reduction in prices of services.

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Chapter-4

Data analysis and data interpretation

Introduction to data analysis

Data analysis is a process of inspecting, cleansing, transforming, and modelling data with the goal of
discovering useful information, informing conclusions, and supporting decision making. Data analysis
has multiple facets and approaches, encompassing diverse techniques under a variety of names, and is
used in different business, science, and social science domains. In today’s business world, data analysis
plays a role in making decisions more scientific and helping businesses operate more effectively.

Introduction to data interpretation

Data interpretation is the process of making sense out of a collection of data that has been processed.
This collection may be present in various forms like bar graphs, line charts and tabular forms and other
similar forms and hence needs an interpretation of some kind. Here we will learn about data
interpretation with the help of many important techniques and examples. We will learn about data
interpretation with the help of many important techniques and examples. We will see how we can make
sense out of the graphical data and other forms of it. We shall learn to use it to solve the most common
questions that are present in this section of the quantitative aptitude.

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Table no: 4.1

Classification of the respondents on the basis of age group

Age No of respondents Percentage

Below 20 0 0%
Between 21-40 52 52%
Between 41-60 44 44%
Above 61 4 4%
Total 100 100%

Analysis

Table 4.1 shows the no of respondents classified on the basis of age group, 0 respondents belongs to the
age group below 20 years, 52 respondents belongs to the age group between 21-40, 44 respondents
belongs to the age group between 41-60, and 4 respondents belongs to the age group above 61.

From the above analysis the majority of the respondents are between 21-40 age group it can be
analysed that majority of registered dealers are in the age group of 21-40.

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Chart no 4.1

Classification of the respondents on the basis of age group

Below 20
Between 21-40
44 52 Between 41-60
Above 61

Interpretation

Chart 4.1 shows the no of respondents classified on the basis of age group, 0% of the respondents
belongs to the age group below 20 years, 52% of the respondents belongs to the age group between 21-
40, 44% respondents belongs to the age group between 41-60, and 4% respondents belongs to the age
group above 61.

From the above graph it can be found 52% of the respondents are between 21-40 age group and it can
be analysed that majority of registered dealers between 21-40 age group.

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Table no 4.2

Classification of the respondents on the basis of qualification

Qualification No of respondents Percentage

SSLC 7 7%
PUC 16 16%
Graduate 61 61%
Post graduate 11 11%
Others 5 5%
Total 100 100

Analysis

Table 4.2 shows the no of respondents classified on the basis of qualification, 7 respondents belongs to
SSLC, 16 respondents belongs to PUC, 61 respondents educational qualification are graduate , 11
respondents belongs to the post graduate, and 5 respondents belongs to the other qualification.

From the above analysis it can be found 61 of the respondents are graduates and it can be analysed that
majority of registered dealers are graduates.

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Chart no 4.2

Classification of the respondents on the basis of qualification

11% 5%

16%
61%

SSLC
PUC
Graduation
Post Graducation
Others

Interpretation

Chart 4.2 shows the no of respondents classified on the basis of qualification, 7% respondents belongs
to SSLC, 16% respondents belongs to PUC, 61% respondents educational qualification are graduate ,
11% respondents belongs to the post graduate, and 5% respondents belongs to the other qualification.

From the above graph the majority 61% of the respondents are more graduates and it can be analysed
that majority of registered dealers are the graduates.

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Table no 4.3

Classification of the respondents on the basis of annual income

Income No of respondents Percentage

Less than 500000 84 84%
500000-1000000 16 16%
1000000-2000000 0 0%
Above 2000000 0 0%
Total 100 100

Analysis

Table 4.3 shows the no of respondents classified on the basis of annual income 84 respondents belongs
to the less than 500000, 16 respondents belongs to the 500000-1000000, 0 respondents belongs to the
1000000-2000000, and 0 respondents belongs to the above 2000000.

From the above analysis the majority of the respondents are 84 and there annual income is less than
500000.

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Chart no 4.3

Classification of the respondents on the basis of income

0% 0%

16%

Less than 500000

500000-1000000
1000000-2000000
Above 2000000

84%

Interpretation

Chart 4.3 shows the no of respondents classified on the basis of annual income 84% respondents
belongs to the less than 500000, 16% respondents belongs to the 500000-1000000, 0% respondents
belongs to the 1000000-2000000, and 0% respondents belongs to the above 2000000.

From the above graph it can be found 84% of the respondents are majority of income is less than
500000.

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Table no 4.4

Classification of the respondents on the basis of area

Area No of respondents Percentage

Rural 0 0%
Urban 100 100%
Total 100 100%

Analysis

Table 4.4 shows the no of respondents classified on the basis of area 100 respondents are living in urban
area and zero respondent in rural area.

From the above analysis the majority of the respondents are urban area.

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Chart no 4.4

Classification of the respondents on the basis of area

Area
0%

Rural
Urban

100%

Interpretation

Chart 4.4 shows the no of respondents classified on the basis of area 100% respondents are living in
urban area and 0% respondents are rural.

From the above graph it can be found 100% of the respondents are living in urban area.

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Table no 4.5

Table showing the respondents opinion getting to know about GST

Particulars No of respondents Percentage

Family/friends 19 19%
Online source 12 12%
Media 65 65%
Other 4 4%
Total 100 100%

Analysis

Table 4.5 shows the no of respondents classified on the basis of knowing about GST are 19 respondents
belongs to the family & friends, 12 respondents belongs to the online source, 65 respondents belongs to
the media, 4 respondents belongs to other source.

From the above analysis the majority of the respondents are belongs to the media.

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Chart no 4.5

Chart showing the respondents opinion getting to know about gst?

4
19

Family/ Friends
Online Source
12
Media
Others

65

Interpretation

Chart 4.5 shows the no of respondents classified on the basis of knowing about GST are 19%
respondents belongs to the family & friends, 12% respondents belongs to the online source, 65%
respondents belongs to the media, 4% respondents belongs to other source.

From the above graph it can be found that majority are 65% of the respondents knows information
through the media.

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Table no 4.6

Table showing the respondents opinion on support GST

Particulars No of respondents Percentage

Yes 86 86%
No 14 14%
Total 100 100%

Analysis

Table 4.6 shows that 86 respondents perspective is that they support GST, 14 respondents say that
they don’t support GST.

From the above analysis the majority of the respondents perspective is that they support GST.

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Chart no 4.6

Chart showing the respondents opinion on support GST

14%

Yes
NO

86%

Interpretation

Chart 4.6 shows that 86% respondents point of view is that they support GST, 14% respondents say
that they don’t support GST.

From the above graph the majority 86% respondents perspective is that they support GST.

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Table no 4.7

Table showing the respondents opinion on aware of GST regime

Particulars No of respondents Percentage

Full 6 6%
Half 34 34%
Almost 30 30%
Just 24 24%
Frequently 6 6%
Total 100 100%

Analysis

Table 4.7 shows the no of respondents classified on the basis of GST regime are 6 respondents are full
aware of GST regime, 34 respondents are half aware, 30 respondents are almost aware, 24 respondents
are just aware of GST regime , and 6 respondents are frequently aware of GST regime.

From the above analysis the majority of the respondents are half aware.

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Chart no 4.7

Chart showing the respondents opinion on aware of GST regime

6% 6%

Full
24%
Half
34%
Almost
Just
Frequently

30%

Interpretation

Chart 4.7 shows the no of respondents classified on the basis of GST regime are 6% respondents are fully
aware of GST regime, 34% respondents are half aware, 30% respondents are almost aware, 24%
respondents are just aware of GST regime , and 6% respondents are frequently aware of GST regime.

From the above graph it can be found 34% of the respondents are only half aware of GST regime.

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Table no 4.8

Table showing the respondents opinion on Tax reforms for India

Particulars No of respondents Percentage

Agree 77 77%
Disagree 16 16%
Strongly agree 7 7%
Strongly disagree 0 0%
Total 100 100%

Analysis

Table 4.8 shows the no of respondents classified on the basis of tax reforms for India, 77 respondents
are agreed to the tax reforms, 16 respondents are disagree to the tax reforms, 7 respondents are
strongly agree, and zero respondents are strongly disagree to the tax reforms.

From the above analysis the majority of the respondents are agreed to the tax reforms.

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Chart no 4.8

Chart showing the respondents opinion on Tax reforms for India

0%

7%

16%
Agree
Disagree
Strongly agree
Strongly disagree

77%

Interpretation

Chart 4.8 shows the no of respondents classified on the basis of tax reforms for India, 77% respondents
are agreed to the tax reforms, 16% respondents are disagree to the tax reforms, 7% respondents are
strongly agree, and 0% respondents are strongly disagree to the tax reforms.

From the above graph it can be found 77% of the respondents are agreed the tax reforms in India.

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Table no 4.9

Tables shows GST improves on revenue growth to the state and country

Particulars No of respondents Percentage

Agree 58 58%
Disagree 9 9%
Neither agree nor disagree 33 33%
Total 100 100%

Analysis

Table 4.9 shows that, 58 respondents are agreed that GST improves the revenue growth to the state and
country, 9 respondents are disagreed that GST improves the revenue growth to the state and country,
33 respondents are neither agree nor disagree that GST improves the revenue growth to the state and
country.

From the above analysis the majority of the respondents are agreed that GST improves the revenue
growth to the state and country.

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Chart no 4.9

Chart showing the respondents opinion of GST Improves on revenue growth to the
state and country

33%

58%

9%

Agree disagree Neither agree nor disagree

Interpretation

Chart 4.9 shows that, 58% respondents are agreed that GST improves the revenue growth to the state
and country, 9% respondents are disagreed that GST improves the revenue growth to the state and
country, 33% respondents are neither agree nor disagree that GST improves the revenue growth to the
state and country.

From the above graph it can be found 58% of the respondents are agreed the revenue growth.

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Table no 4.10

Table showing the respondents opinion belongs to which system is more beneficial for
both government and people

Particulars No of respondents Percentage

Gst 78 78%
Other 22 22%
Total 100 100%

Analysis

Table 4.10 shows the no of respondents classified on the basis of which system is more beneficial for
both government and people, 78 respondents are more benefits from GST and 22 respondents are get
benefits from others system.

From the above analysis the majority of the respondents are more benefits from GST.

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Chart no 4.10

Chart showing the respondents opinion belongs to which system is more beneficial for
both government and people

22%

GST
other

78%

Interpretation

Chart 4.10 shows the no of respondents classified on the basis of which system is more beneficial for
both government and people, 78% respondents are more benefits from GST and 22% respondents are
get benefits from others system.

From the above graph the majority of 78% of the respondents were agreed to GST system get more
beneficial to the government and people.

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Table no 4.11

Table showing the respondents opinion belongs to GST will burden to the consumer as
well as retailers.

Particulars No of respondents Percentage

Agree 41 41%
Disagree 45 45%
Strongly agree 8 8%
Strongly disagree 6 6%
Total 100 100%

Analysis

Table 4.11 shows the no of respondents classified on the basis of GST is burden to the consumer as well
as retailers, 41 respondents agreed the GST is burden to the consumer as well as retailers, , 45
respondents disagree the GST is burden to the consumer as well as retailers, 8 respondents strongly
agree, and 6 respondents strongly disagree.

From the above analysis the majority of the respondents are disagree the GST is burden to the
consumer as well as retailers.

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Chart no 4.11

Chart showing the respondents opinion belongs to GST will burden to the consumer as
well as retailers.

6%
8%

41%

45%

Agree Disagree Strongly agree Strongly disagree

Interpretation

Chart 4.11 shows the no of respondents classified on the basis of GST is burden to the consumer as well
as retailers, 41% of respondents agreed the GST is burden to the consumer as well as retailers, , 45%
respondents disagree the GST is burden to the consumer as well as retailers,, 8% respondents strongly
agree, and 6% respondents strongly disagree.

From the above graph it can be found 45% of the respondents are not ready to accept the burden of
GST to the consumer as well as retailer.

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Table no 4.12

Table showing the respondents opinion belongs to GST has increased the tax burden on
industry in India.

Particulars No of respondents Percentage

Agree 24 24%
Disagree 33 33%
Strongly agree 4 4%
Strongly disagree 4 4%
Neutral 35 35%
Total 100 100%

Analysis

Table 4.12 shows the no of respondents classified on the basis of GST increased the Tax burden on
industry in India , 24 respondents are concede the increased the Tax burden on industry in India, 33
respondents are refused that the GST increased the Tax burden on industry in India , 4 respondents are
strongly agreed the GST has increased the Tax burden in Indian industry , 4 respondents are strongly
disagree, and 35 respondents are belongs to the neutral.

From the above analysis the majority of the respondents are refused that the GST increased the Tax
burden on industry in India.

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Chart no 4.12

Chart showing the respondents opinion belongs to GST has increased the tax burden on
industry in India

24%
35%

33%
4%
4%

Agree Disagree Strongly agree Strongly disagree Neutral

Interpretation

Chart 4. 12 shows the no of respondents classified on the basis of GST increased the Tax burden on
industry in India , 24% respondents are concede the increased the Tax burden on industry in India, 33%
respondents are refused that the GST increased the Tax burden on industry in India, 4% respondents
are strongly agreed the GST has increased the Tax burden in Indian industry, 4% respondents are
strongly disagree, and 35% respondents are belongs to the neutral.

From the above graph the majority 35% of the respondents are unbiased opinion of GST increased the
Tax burden on industry in India.

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Table no 4.13

Table showing the respondents opinion on present opinion on GST slab rate

Particulars No of respondents Percentage

Good 78 78%
Bad 10 10%
Very good 11 11%
Very bad 1 1%
Total 100 100%

Analysis

Table 4.13 shows the no of respondents classified on the basis of GST slab rate , 78 respondents are
accepted the GST slab rate is good, 10 respondents are refused the GST slab rate is bad, 11 respondents
are believe have the GST slab rate is very good and 1 respondents having very bad opinion.

From the above analysis the majority of the respondents are accepted the GST slab rate is good.

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Chart no 4.13

Chart showing the respondents opinion on present opinion on GST slab rate

1%

11%

10%
Good
Bad
Very good
Very bad

78%

Interpretation

Chart 4.13 shows the no of respondents classified on the basis of GST slab rate , 78% respondents are
accepted the GST slab rate is good, 10% respondents are refused the GST slab rate is bad, 11%
respondents are believe have the GST slab rate is very good and 1 respondents having very bad
opinion.

From the above graph the majority 78% of the respondents are accepted the present slab rate of GST.

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Table no 4.14

Table showing the respondents opinion on what will be the effect of GST on the
industry in India

Particulars No of respondents Percentage

Positive 31 31%
Negative 12 12%
No Impact 31 31%
Don’t Know 26 26%
Total 100 100%

Analysis

Table 4.14 shows the no of respondents classified on the basis of effect of GST on the industry in India
31 respondents are considered the GST has effected on the Indian industry in positive way, 12
respondents are considered the GST has effected on the Indian industry in negative side, 31
respondents are propose the GST has effected on the Indian industry is not impacting and 26
respondents are not know the GST has effected on the Indian industry.

From the above analysis the majority of the respondents are considered the GST has effected on the
Indian industry in positive way.

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Chart no 4.14

Chart showing the respondents opinion on what will be the effect of GST on the
industry in India

26%
31%
Positive
Negative
No Impact
Don’t Know

12%
31%

Interpretation

Chart 4.14 shows the no of respondents classified on the basis of effect of GST on the industry in India
31% respondents are considered the GST has effected on the Indian industry in positive way, 12%
respondents are considered the GST has effected on the Indian industry in negative side, 31%
respondents are propose the GST has effected on the Indian industry is not impacting and 26%
respondents are not know the GST has effected on the Indian industry.

From the above graph the majority 31% of the respondents are considered the GST has effected on the
Indian industry in positive way.

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Table 4.15

Table showing the respondents opinion belongs to think all the sectors need to be
registered under GST regime

Particulars No of respondents Percentage

Yes 69 69%
No 31 31%
Total 100 100%

Analysis

Table 4.15 shows the no of respondents classified on the basis of opinion on all sectors need to be
registered under GST regime, 69 respondents are agreed to think all the sector required to registered
under GST regime, 31 respondents are not agreed to think all the sector required to registered under
GST regime.

From the above analysis the majority of the respondents are agreed to think all the sector required to
registered under GST regime.

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Chart no 4.15

Chart showing the respondents opinion belongs to think all the sectors need to be
registered under GST regime

31%

69%

Yes No

Interpretation

Chart 4.15 shows the no of respondents classified on the basis of opinion on all sectors need to be
registered under GST regime, 69 respondents are agreed to think all the sector required to registered
under GST regime, 31 respondents are not agreed to think all the sector required to registered under
GST regime .

From the above graph the majority 69% of the respondents are accepted to think all the sector
required to registered under GST regime .

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Table no 4.16

Table showing the respondents opinion about Indian industry

Particulars No of respondents Percentage

Yes 82 82%
No 18 18%
Total 100 100%

Analysis

Table 4.16 shows the no of respondents classified on the basis of Indian industry , 82 respondents are
concede that they know about Indian industry, 31 respondents are don’t know about Indian industry .

From the above analysis the majority of the respondents are concede that they know about Indian
industry.

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Chart no 4.16

Chart showing the respondents opinion about Indian industry

18%

yes
No

82%

Interpretation

Chart 4.16 shows the no of respondents classified on the basis of Indian industry , 82% respondents are
concede that they know about Indian industry, 31% respondents are don’t know about Indian industry .

From the above graph the majority 82% of the respondents are concede that they know about Indian
industry.

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Table no 4.17

Table showing the respondents opinion which sectors of Indian industry fits for your
business

Particulars No of respondents Percentage

FMCG 11 11%
Pharmaceutical 12 12%
Service 27 27%
Automobiles 13 13%
Others 37 37%
Total 100 100%

Analysis

Table 4.17 shows the no of respondents classified on the basis of sectors 11 respondents are considered
the FMCG, 12 respondents are considered the pharmaceutical, 27 respondents are deemed the service
13 respondents considered automobiles, and 37 respondents are accepted the other sectors.

From the above analysis the majority of the respondents are accepted the other sectors.

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Chart no 4.17

Chart showing the respondents opinion which sectors of Indian industry fits for your
business

11%

37% 12% FMCG

Pharmaceutical
Service
Automobiles
Others
27%

13%

Interpretation

Chart 4.17 shows the no of respondents classified on the basis of sectors 11% respondents are
considered the FMCG, 12% respondents are considered the pharmaceutical, 27% respondents are
deemed the service 13% respondents considered automobiles, and 37% respondents are accepted the
other sectors.

From the above graph the majority of the respondents from other sectors that is 37%.

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Table no 4.18

Table showing the respondents opinion on registered dealers under GST system

Particulars No of respondents Percentage

yes 67 67%
No 33 33%
Total 100 100%

Analysis

Table 4.18 shows the no of respondents classified on the basis of registered dealers under GST system
67 respondents are of course they accepted registered dealers under GST system, 33 respondents are
not registered dealers under GST system.

From the above analysis the majority of the respondents are accepted registered dealers.

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Chart no 4.18

Chart showing the respondents opinion on registered dealers under GST system

33%

yes
No

67%

Interpretation

Chart 4.18 shows the no of respondents classified on the basis of registered dealers under GST system
67% respondents are of course they accepted registered dealers under GST system, 33 respondents are
not registered dealers under GST system.

From the above graph the majority of the respondents 67% respondents are accepted registered dealers
under GST system

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Table no 4.19

Table showing the respondents opinion on the scheme in which you have taken the
GST registration

Particulars No of respondents Percentage

Regular scheme 13 13%
Composition Scheme 34 34%
Casual taxable person 20 20%
Total 100 100%

Analysis

Table 4.19 shows the no of respondents classified on the basis of scheme 13 respondents taken the
regular scheme, 34 respondents are taken the composition scheme, 20 respondents are taken the
casual taxable person.

From the above analysis the majority of the respondents are taken the composition scheme and most of
the respondents are registered dealer.

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Chart no 4.19

Chart showing the respondents opinion on the scheme in which you have taken the
GST registration

19%
30%

Regular scheme
Composition scheme
Casual taxable person

51%

Interpretation

Chart 4.19 shows the no of respondents classified on the basis of scheme 13% respondents taken the
regular scheme, 34% respondents are taken the composition scheme, 20 respondents are taken the
casual taxable person.

From the above graph the majority 34% of the respondents had taken the composition scheme under
GST registration.

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Table no 4.20

Table showing the respondents opinion on which type of GST rate is applicable for your
business

Particulars No of respondents Percentage

0% 28 28%
5% 38 38%
12% 26 26%
18% 8 8%
28% 0 0%
Total 100 100%

Analysis

Table 4.20 shows the no of respondents classified on the basis of GST rates is applicable for your
business , 28 respondents are considered the 0% GST rates, 38 respondents are considered 5% GST
rates, 26 respondents are considered 12% GST rates, 8 respondents are considered 18% GST rates and 0
respondents are belongs to the 28% GST rates.

From the above analysis the majority of the respondents are considered 5% GST rates.

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Chart no 4.20

Chart showing the respondents opinion on which type of GST rate is applicable for your
business

0%

8%

28%

26%

38%

0% 5% 12% 18% 28%

Interpretation

Chart 4.20 shows the no of respondents classified on the basis of GST rates is applicable for your
business , 28% respondents are considered the 0% GST rates, 38% respondents are considered 5% GST
rates, 26% respondents are considered 12% GST rates, 8% respondents are considered 18% GST rates
and 0 %respondents are belongs to the 28% GST rates..

From the above graph the majority 38% respondents are considered 5% GST rates.

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Table no 4.21

Table showing the respondents opinion on monthly turnover

Particulars No of respondents Percentage

25000-100000 80 80%
100001-500000 20 20%
500001-5000000 0 0%
5000001-10000000 0 0%
Total 100 100%

Analysis

Table 4.21 shows the no of respondents classified on the basis of monthly turnover 80 respondents
belongs to the 25000-100000, 20 respondents belongs to the 100001-500000, 0 respondents belongs to
the 500001-5000000, and 0 respondents belongs to the 5000001-10000000 monthly turnover.

From the above analysis the majority of the respondents are belongs to the 25000-100000.

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Chart no 4.21

Chart showing the respondents opinion on monthly turnover

20%

80%

25000-100000 100001-500000 500001-5000000 5000001-10000000

Interpretation

Chart 4.21 shows the no of respondents classified on the basis of monthly turnover 80% respondents
belongs to the 25000-100000, 20% respondents belongs to the 100001-500000, 0% respondents
belongs to the 500001-5000000, and 0% respondents belongs to the 5000001-10000000 monthly
turnover.

From the above graph it can be found 80% of the respondents are 25000-100000.

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Table no 4.22

Table showing the respondents opinion on transaction of GST in every sector is

Particulars No of respondents Percentage

Easy 38 38%
Difficult 52 52%
Very easy 07 07%
Very difficult 03 03%
Total 100 100%

Analysis

Table 4.22 shows the no of respondents classified on the basis of transaction of GST in every sector, 38
respondents are decide the transaction of GST is easy in every sector, 52 respondents are said the
transaction of GST is Difficult, 7 are agreed the transaction of GST is very easy in every sector and 3
respondents are accepted the transaction of GST is very difficult in every sector.

From the above analysis the majority of the respondents are the transaction of GST is Difficult.

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Chart no 4.22

Chart showing the respondents opinion on transaction of GST in every sector is

3%
7%

38% Easy
Difficult
Very easy
Very difficult
52%

Interpretation

Chart 4.22 shows the no of respondents classified on the basis of transaction of GST in every sector, 38%
respondents are decide the transaction of GST is easy in every sector, 52% respondents are said the
transaction of GST is Difficult, 7% are agreed the transaction of GST is very easy in every sector and 3%
respondents are accepted the transaction of GST is very difficult in every sector

.From the above graph it can be found 52% of the respondents are said difficult.

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Table no 4.23

Table showing the respondents opinion on experience using GST regime

Particulars No of respondents Percentage

Poor 48 48%
Best 25 25%
Good 26 26%
Excellent 1 1%
Total 100 100%

Analysis

Table 4.23 shows the no of respondents classified on the basis of experience using GST regime, 48
respondents are said poor experience using GST regime, 25 respondents are told best experience using
GST regime, 26 respondents opinions are good, and 1 respondents is said excellent experience using
GST regime.

From the above analysis the majority of the respondents are poor experience using GST regime.

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Chart no 4.23

Chart showing the respondents opinion on experience using GST regime

1%

26%
Poor
48% Best
Good
Excellent

25%

Interpretation

Chart 4.23 shows the no of respondents classified on the basis of experience using GST regime, 48%
respondents are said poor experience using GST regime, 25% respondents are told best experience
using GST regime, 26% respondents opinions are good, and 1% respondents is said excellent experience
using GST regime.

From the above graph the majority 48% of the respondents are said poor experience while using GST
regime.

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Table no 4.24

Table showing the respondents opinion on GST is helpful for Indian industry

Particulars No of respondents Percentage

Agree 39 39%
Disagree 19 19%
Strongly agree 6 6%
Strongly disagree 4 4%
Neither agree nor disagree 32 32%
Total 100 100%

Analysis

Table 4.24 shows the no of respondents classified on the basis of GST is helpful for Indian industry, 39
respondents are concede the GST is helpful for Indian industry , 19 respondents are refused the GST is
not helpful for Indian industry, 6 respondents are accepted strongly that the GST is helpful for Indian
industry , 4 respondents are not agreed the GST is not helpful for Indian industry , and 32 respondents
are neither agree nor disagree.

From the above analysis the majority of the respondents are concede the GST is helpful for Indian
industry.

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Chart no 4.24

Chart showing the respondents opinion on GST is helpful for Indian industry

Agree

32% Disagree
39%
Strongly agree

Strongly disagree
4%
6% Neither agree nor
disagree
19%

Interpretation

Chart 4.24 shows the no of respondents classified on the basis of GST is helpful for Indian industry, 39%
respondents are concede the GST is helpful for Indian industry , 19% respondents are refused the GST is
not helpful for Indian industry, 6% respondents are accepted strongly that the GST is helpful for Indian
industry , 4% respondents are not agreed the GST is not helpful for Indian industry , and 32%
respondents are neither agree nor disagree

From the above graph it can be found 39% of the respondents are agreed the GST is helpful for Indian
industry.

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Table no 4.25

Table showing the respondents opinion on GST will influence your modes of use

Particulars No of respondents Percentage

Yes 72 72%
No 28 28%
Total 100 100%

Analysis

Table 4.25 shows the no of respondents classified on the basis of GST will influence your modes of use
72 respondents are agreed the GST is influence their modes of use, 28 respondents not agreed the GST
is influence their modes of use.

From the above analysis the majority of the respondents are agreed the GST is influence their modes of
use.

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Chart no 4.25

Chart showing the respondents opinion on GST will influence your modes of use

28%

Yes
No

72%

Interpretation

Chart 4.25 shows the no of respondents classified on the basis of GST will influence your modes of use
72% respondents are agreed the GST is influence their modes of use, 28% respondents not agreed the
GST is influence their modes of use.

From the above graph the majority 72% respondents are agreed the GST is influence their modes of
use.

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Table no 4.26

Table showing the respondents opinion on GST will affect your modes of use

Particulars No of respondents Percentage

Extremely 15 15%
Frequently 26 26%
Occasionally 50 50%
Completely 9 9%
Total 100 100%

Analysis

Table 4.26 shows the no of respondents classified on the basis of GST affect your modes of use, 15
respondents are accepted extremely GST will influence their modes of use , 26 respondents are agreed
frequently GST will affect their modes of use, 50 respondents are the occasionally GST will influence
their modes of use, 9 respondents belongs to the complete GST will influence their modes of use.

From the above analysis the majority of the respondents are the occasionally GST will influence their
modes of use.

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Chart no 4.26

Chart showing the respondents opinion on GST will affect your modes of use

9%
15%

26%

50%

Extremely Frequently Occasionally Completely

Interpretation

Chart 4.26 shows the no of respondents classified on the basis of GST affect your modes of use, 15%
respondents are accepted extremely GST will influence their modes of use , 26% respondents are
agreed frequently GST will affect their modes of use, 50% respondents are the occasionally GST will
influence their modes of use, 9% respondents belongs to the complete GST will influence their modes of
use.

From the above graph it can be found 50% of the respondents are the occasionally GST will influence
their modes of use.

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Table no 4.27

Table showing the respondents opinion on kinds of expenditure will be affected by GST
regime

Particulars No of respondents Percentage

Necessary goods 33 33%
Electronic goods 28 28%
Luxury goods 5 5%
Others 34 34%
Total 100 100%

Analysis

Table 4.27 shows the no of respondents classified on the basis of kinds of expenditure will be affected
by GST regime, 33 respondents of expenditure will affect on the necessary goods, 28 respondents of
expenditure will affect on the electronic goods, 5 respondents will affect on the luxury goods. 34
respondents on the other goods of expenditure will be affected by GST regime.

From the above analysis the majority of the respondents are the other goods of expenditure will be
affected by GST regime.

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Chart no 4.27

Chart showing the respondents opinion on kinds of expenditure will be affected by GST
regime

34% 33%
Necessary goods
Electronic goods
Luxury goods
Others

5%

28%

Interpretation

Chart 4.27 shows the no of respondents classified on the basis of kinds of expenditure will be affected
by GST regime, 33% respondents of expenditure will affect on the necessary goods, 28% respondents of
expenditure will affect on the electronic goods, 5% respondents will affect on the luxury goods. 34%
respondents on the other goods of expenditure will be affected by GST regime.

From the above graph it can be found 34% of the respondents are other

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Table no 4.28

Table showing the respondents opinion on the introduction of GST in India has affected
the demand for the product/ service

Particulars No of respondents Percentage

Positively 41 41%
Negative 12 12%
No impact 30 30%
Don’t know 17 17%
Total 100 100%

Analysis

Table 4.28 shows the no of respondents classified on the basis of introduction of GST in India has
affected the demand for the product/ service, 41 respondents had positive impact on affected the
demand for the product/ service ,12 respondents had impact negative, 30 respondents has no impact
and 17 respondents are don’t know.

From the above analysis the majority of the respondents are had positive impact on affected the
demand for the product/ service.

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Chart no 4.28

Chart showing the respondents opinion on the introduction of GST in India has affected
the demand for the product/ service

17%

41% Positively
Negative
No impact

30% Don’t know

12%

Interpretation

Chart 4.1 shows the no of respondents classified on the basis of introduction of GST in India has affected
the demand for the product/ service, 41% respondents had positive impact on affected the demand for
the product/ service ,12% respondents had impact negative, 30% respondents has no impact and 17%
respondents are don’t know.

From the above graph it can be found 41% of the positively impact on affected the demand for the
product/ service of GST in India.

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Table no 4.29

Table showing the respondents opinion on after the implementation of GST with regard
to prices of the products in every sector

Particulars No of respondents Percentage

Increased in price 19 19%
Decreased in price 5 5%
No changes in price 39 39%
Fair and uniform 37 37%
Total 100 100%

Analysis

Table 4.29 shows the no of respondents are classified on the basis of after the implementation of GST
with regard to prices of the products in every sector, 19 respondents are propose to Increased in price
of the product, 5 respondents are expect to decreased in price of product, 39 respondents are consider
no changes in price of the product and 37 respondents are allow to fair & uniform price of the product.

From the above analysis the majority of the respondents are allow to fair & uniform price of the
product.

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Chart no 4.29

Chart showing the respondents opinion on after the implementation of GST with regard
to prices of the products in every sector

19%

37% Increased in price

5%
Decreased in price
No changes in price
Fair and uniform

39%

Interpretation

Chart 4.29 shows the no of respondents are classified on the basis of after the implementation of GST
with regard to prices of the products in every sector, 19% respondents are propose to Increased in price
of the product, 5% respondents are expect to decreased in price of product, 39% respondents are
consider no changes in price of the product and 37% respondents are allow to fair & uniform price of
the product.

From the above graph it can be found 39% of the respondents are declare to no changes in price of the
product.

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Table no 4.30

Table showing the respondents on introduction of GST in India is actually implementing

in Industry.

Particulars No of respondents Percentage

Yes 77 77%
No 23 23%
Total 100 100%

Analysis

Table 4.30 shows the no of respondents classified on the basis of introduction of GST in India is actually
implementing in Industry are 77 respondents are agreed to GST in India to implement in Industry and
23 respondents are not agreed to GST in India to implement in industry.

From the above analysis the majority of the respondents are agreed to GST in India to implement in
Industry.

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Chart no 4.30

Chart showing the respondents opinion on introduction of GST in India is actually

implementing in Industry

23%

77%

Yes No

Interpretation

Chart 4.30 shows the no of respondents classified on the basis of introduction of GST in India is actually
implementing in Industry are 77% respondents are agreed to GST in India to implement in Industry and
23% respondents are not agreed to GST in India to implement in industry

From the above graph the majority 77% of the respondents are agreed to introduction of GST in India is
actually implementing in Industry.

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Chapter – 5

Findings , Suggestions and Conclusion

Findings

• Large number of respondents are under the qualification of the graduation and 16 of the
respondents are PUC and 11 of the respondents are post graduation 7 of the respondents are
10th and remaining 5 of respondents are under other qualification. We can conclude that most of
the respondents who are literate under the graduation.
• In our study it is clear shows that most of the respondents are aware of GST through media only
and 19 respondents are aware of GST from family and friends. we can say media is the fast
technology nowadays so the majority of the respondents are Know about GST from media.
• Among 100 respondents most of the respondents are only half aware of GST procedure because
GST has introduced in past 5 years some of the respondents are adjusting to GST regime.
• Most of the respondents are agreed is very good Tax reforms for India. Reducing the level of
taxation is very helpful for the Tax payer.
• Majority 78 respondents were agreed to GST system get more beneficial to the government and
people because the most beneficial will be in terms of reduction in the overall tax burden on
goods and services for the end customer.
• Majority of the respondents are not ready to accept the burden of GST to the consumer as well
as retailer because they think GST will reduce the tax burden.
• majority 31 of the respondents are considered the GST has effected on the Indian industry in
positive way and also same respondents are said no impacting on the Indian industry.
• Majority of the respondents are serving in other industry they didn’t specified sector.
• Among 100 respondents most of the respondents are registered dealer under GST system and in
that majority respondents are taken composition scheme.
• 38 respondents are considered 5% GST rates and 28 respondents are considered the 0% GST
rates.

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• In our study it is clear that nearly 80 of the respondents have monthly turnover between 25K to
1L and only 20 of the respondents are having monthly turnover between 1L to 5L we can
conclude that most of the respondents are less turn over are doing small business as compared
to other respondents.
• Most of the respondents says poor experience for using GST.
• 39 respondents are concede the GST is helpful for Indian industry and 32 respondents are
neither agree nor disagree.
• Majority of the respondents are the occasionally GST will influence their modes of use.
• Among 100 respondents majority 34 respondents preferred on the other goods of expenditure
will be affected by GST regime.
• Among 100 respondents most of the respondents had positive impact on the introduction of
GST in India has affected the demand for the product/ service.
• Majority of the respondents are 39 respondents are consider no changes in price after the
implementation of GST with regard to prices of the products in every sector.

Suggestion

• Retailers are aware about the GST system but they lack importance about rules.
• Government should start the GST awareness programme to know the proper regime for using the
GST to retailers.
• The government should look after the urban side so that they start business in remote area.
• Government should tell each and every sector of the business to register under GST regime,
because he/she is legally recognized as supplier of goods & services.
• compare to other Tax system GST is very good Tax reforms to India, because to evolve a tax system
to meet the requirements of international competition.
• most of the respondents are register dealer so the impact of GST will not burden to retailer.
• Government and Indian economy should find a way to help the retailers in understanding the
procedure for GST.
• Government should take necessary actions to create awareness about the Pros and cons of GST
among consumer and retailers.
• Necessary steps should be taken by the officials to ensure that all retailers are making their
registration in GST in proper manner.

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• The Government must assess the way by which the GST rates are accomplish, so that there is a
provision for price reduction.
• The central and the state government should be in proper understanding and cooperative with each
other for the successful implementation of GST.
• Well maintenance of the GSTN portal is required to enable proper flow.

Conclusion

Under GST various indirect Taxes are subsumed and it would result in a simples tax regime
especially for industries like FMCG, Pharmaceutical, service and automobiles. Apart from this
simplification of tax compliances, the rate of tax will also have a significant impact on selected
sector. GST has mixed impacting in positive way for some sectors most of the retailers are agreed
GST is very helpful for Indian industry. However the government is making efforts to
continuously reduce the tax rates for basic goods and simplifying the GST procedure of return
filling. Improvement of limits of registration and composition schemes has positively benefited
the tax payers as well as government.

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