“A PROJECT REPORT ON PERCEPTION TOWARDS GST”

Submitted in Partial Fulfilment for the Award of the Degree of

(M.B.A) 2021-2023

Submitted By: Sunil Verma

University PRN: 2128100669

BHARATI VIDYAPEETH DEEMED TO BE UNIVERSITY, PUNE

SCHOOL OF DISTANCE EDUCATION, PUNE
Academic Study Centre - BVIMR, New Delhi
An ISO 9001:2008 Certified Institute
NAAC Accredited Grade “A” University
 DECLARATION

I Sunil Verma, M.B.A 3rd Semester would like to declare that the project report entitled

“A PROJECT REPORT ON PERCEPTION TOWARDS GST” Submitted to Bharati

Vidyapeeth University Pune, School of Distance Education Pune, and Academic Study
Centre BVIMR New Delhi in partial fulfilment of the requirement for the award of the
degree. It is an original work carried out by me under the guidance of Mr.Yashwant
Kumar.

All respected guides, faculty member and other sources have been properly acknowledged
and the report contains no plagiarism.

To the best of my knowledge and belief the matter embodied in this project is a genuine
work done by me and it has been neither submitted for assessment to the University nor to
any other University for the fulfilment of the requirement of the course of study.

SUNIL VERMA

Student Name with Signature

 ACKNOWLEDGEMENT

The project entitled “A PROJECT REPORT ON PERCEPTION TOWARDS GST” Was

Challenging assignment for me as it required an improved environment, extensive
endeavour and all necessary support. I take this as an opportunity to express my gratitude
to Mr. YASHWANT KUMAR, my project guide for her able guidance, cooperation and
out of the box thinking without which this project would not have completed successfully.
The successful progression of my project also gives me the opportunity to acknowledge
and appreciate the staff of the college that provided me much needed stimulating
suggestion and encouragement in order to steer this project towards its completion
 CONTENTS

S. No Topic Page No.

1 CHAPTER 1: 1-14
INTRODUCTION
2. CHAPTER 2: 15-17
RESEARCH METHODOLOGY
3. CHAPTER 3: 18-35
CONCEPTUAL DISCUSSION

4. CHAPTER 4: 36-45
DATA ANAYLSIS
5 CHAPTER 5: 46-47
FINDINGS & CONCLUSIONS

6 CHAPTER 6: 48-49
SUGGESTIONS
 LIST OF TABLES

Serial No Tables Page No

1 Table showing Classification of respondents on the basis of 36
Age
2 Table showing response of what are the Qualification of 37
respondents?
3 Table showing response of Income Range 38
4 Table showing response of what’s your occupation 39
5 Table showing response What’s your perception towards 40
GST
6 Table showing response of Does GST has increased various 41
legal formalities
7 Table showing response of Does –‘GST has increased tax 42
burden on a Layman
8 Table showing response of Is GST really difficult to 43
understand?
9 Table showing response is GST beneficial in long run? 44
10 Table showing response of Does GST is affecting small scale 45
business very badly

v
 LIST OF CHARTS

Serial No Charts Page No

1 Chart showing Classification of respondents on the basis of 36
Age
2 Chart showing response of what are the Qualification of 37
respondents?
3 Chart showing response of Income Range 38
4 Chart showing response of what’s your occupation 39
5 Chart showing response What’s your perception towards 40
GST
6 Chart showing response of Does GST has increased 41
various legal formalities
7 Chart showing response of Does –‘GST has increased tax 42
burden on a Layman
8 Chart showing response of Is GST really difficult to 43
understand?
9 Chart showing response is GST beneficial in long run? 44
10 Chart showing response of Does GST is affecting small 45
scale business very badly

vi
CERTIFICATE

vii
 CHAPTER 1- INTRODUCTION

KPMG entities in India are established under the laws of India and are owned and managed
(as the case may be) by established Indian professionals. Established in August 1993, the
KPMG entities have rapidly built a significant competitive presence in the country. Today we
operate from offices across 14 cities including in Ahmedabad, Bengaluru, Chandigarh,
Chennai, Gurugram, Hyderabad, Jaipur, Kochi, Kolkata, Mumbai, Noida, Pune, Vadodara
and Vijayawada.

KPMG entities have a domestic client base of over 2700 companies. Our global approach to
service delivery helps provide value-added services to clients.

Our differentiation is derived from a rapid performance-based, industry-tailored and

technology-enabled business advisory services delivered by some of the leading talented
professionals in the country. KPMG professionals are grouped by industry focus and our
clients are able to deal with industry professionals who speak their language. Our internal
information technology and knowledge management systems enable the delivery of informed
and timely business advice to clients

OUR HISTORY

When the industrial revolution of the late eighteenth and nineteenth century helped transform
accounting into a profession, KPMG’s founding fathers were center stage, pioneering the
industry.

William Barclay Peat

William Barclay Peat (the P in KPMG) started his career in accountancy at just 17, working
for Robert Fletcher & Co. He quickly rose through the ranks, and in 1891, Peat assumed
leadership of the firm, and renamed it William Barclay Peat & Co.

James Marwick

In 1897, the US firm Marwick, Mitchell & Company got its start in New York City. The
company was formed by James Marwick (the M in KPMG) and Roger Mitchell – both
Scottish immigrants. It wasn’t easy establishing a firm in the city – many thought there was
no place or need for accountants, but the two soon built a strong reputation.

1
Piet Klynveld

Meanwhile, in 1917 Piet Klynveld (the K in KPMG) opens small accounting firm in
Amsterdam. Jaap Kraayenhof joins and firm becomes Klynveld Kraayenhof & Company
(KKC). By the time Klynveld passed away in 1946, he left behind the largest accounting firm
in the Netherlands.

Reinhard Goerdeler

The last of our founding fathers, Reinhard Goerdeler (the G in KPMG) comes into the story
almost half a century later in 1953, when he joined Deutsche Treuhand

History of KPMG member firms within the MESA region

Our local member firms have an illustrious history and over the years have grown in both
scale and repute, to reach the position they are in today.

In chronological order, these member firms have a history dating back to:

 The local member firm in Sri Lanka – 1897

 The local member firm in Egypt - 1942
 The local member firm in Bangladesh - 1962
 The local member firm in Bahrain - 1968
 The local member firm in Pakistan - 1969
 The local member firm in Lebanon - 1969
 The local member firm in Oman – 1974
 The local member firm in the United Arab Emirates - 1973
 The local member firm in Qatar - 1977
 The local member firm in Saudi Arabia - 1992
 The local member firm in Kuwait - 2005
 The local member firm in Jordan – 2009

2
KPMG Vision
Our aim is not to be the biggest professional services firm. Our vision is to be the best
professional services firm. For KPMG in India, being the clear choice means that:
 Our people are extraordinary;
 Our Clients see a difference in us; and
 The public trusts us.
We believe that living our principles — and living our story — will set us apart.
We hope KPMG in India will be your Clear Choice.

Our Culture
 We recognise potential, nurture talent and reward high performance.
 We provide an environment where you are encouraged to fulfil your sense of purpose and
drive lasting change. This shared belief and our culture of gratitude will see you get
recognised for your talents and be appreciated for the perspective you bring to your teams
and clients.
 We are an open, inclusive and diverse workplace in which everyone can invest in
themselves and be their best.
 If this feels like a culture in which you can thrive and make a difference, reach out to us
and we would love to know more about you.

Objectives
Bring out the best in our people
At the core of KPMG in India's vibrant culture are a set of values that seek to bring out the
best in our people. Through commitment to our people, our values, embracing our diversity
and our responsibility to our communities, we aim to create an environment in which our
people are proud to work, equipped with a rich pool of talent to support our clients'
businesses.
Integrity. We do what is right.
Excellence. We never stop learning and improving.
Courage. We think and act boldly.
Together. We respect each other and draw strength from our differences.
For Better. We do what matters.

3
MISSION
KPMG's mission is to turn knowledge and understanding of information, industries and
business trends into value for our firms' clients, our people and the capital markets.

Functions
 Fighting Financial Crime. Trader Surveillance. ...
 Optimizing operations with KYC Managed Services.
 Increasing efficiency with MRM managed services.
 Architecting Risk and Operational Transformation. Model Risk Management. ...
 Anticipating Emerging Technology Risk.
 IT advisory services.
 Governance, Risk & Compliance Services. ...
 Forensic.
 Finance
 Advisory

Product and Services of KPMG

1. Audit and Assurance

Financial statement audits give assurance over information used by investors and the capital
markets. At KPMG we act in the public interest and the capital markets. Our professionals
inspire trust in data and financial information and our focus on innovation delivers efficiency
and value to our clients.
We are committed to providing exceptional audits by introducing transformational
technologies that have the ability to reshape the audit process and exceed expectations.
By leveraging the power of evolving technologies to deliver quality audits and fresh insights,
KPMG is a leader in driving the future of audit.

2. Tax & Legal

Attitudes to tax are changing. Organizations of all sizes are ever more exposed to new trends
in tax regulation, not just locally but globally. The world around us has changed dramatically

4
in recent years, with geopolitical shifts and technological innovation; globalization, on the
one hand, and protectionism, on the other; various tax reforms and regulatory change; new
business and consumer demands and the emergence of previously unseen types of business
models. These shifts and the resulting complexities and pressures are felt even more acutely
in the wake of COVID-19.
As a tax leader operating in this new reality, you are expected to be not only a technical
specialist, but also a brand ambassador and trusted advisor to your business and board as you
work to protect the organization, boost performance, drive digital transformation and
contribute to the sustainability goals of the organization. Our award-winning global network
of tax professionals is here to help.

We work with many Fortune 500 organizations, multinational enterprises, as well as Family
Offices, and entrepreneurs. We are united by our values, governed by our Global Tax
Principles, and driven by our purpose to inspire confidence and empower change by
delivering the modern tax services and data-driven solutions needed today. Our professionals
work with you to define and build an ideal target operating model, improve compliance
processes, engage in discussions around responsible tax, manage complex transactions, and
add more value to the business and beyond.

3. Advisory
Advisory works with the world’s leading organizations to create and protect the sustainable
value of their business.
Deal advisory
KPMG’s integrated team of specialists works at deal speed to help you find and drive value
throughout your transformation and transaction lifecycle.Highrise buildings
Consulting
KPMG’s consulting professionals can help you build a modern, intelligent and resilient
business that delivers better results for people and the planet.
Strategy
Innovation to results – KPMG’s Global Strategy Group provides a new perspective on how to
design and implement strategies that win in today’s market.

5
4. Private enterprise
Passion, it’s what drives entrepreneurs, it’s also what inspires KPMG Private Enterprise
advisers to help you maximize success. You know KPMG, you might not know KPMG
Private Enterprise. KPMG Private Enterprise advisers in member firms around the world are
dedicated to working with you and your business, no matter where you are in your growth
journey – whether you’re looking to reach new heights, embrace technology, plan for an exit,
or manage the transition of wealth or your business to the next generation. Working with
KPMG Private Enterprise, you’ll gain access to a trusted advisor – a single point of contact
who shares your entrepreneurial mindset. With access to KPMG’s global resources and
alliance network, we’ll help you drive your business forward and meet your goals. Your
success is our legacy.

SWOT analysis of KPMG

SWOT analysis of KPMG analyses the brand by its strengths, weaknesses, opportunities &
threats. In KPMG SWOT Analysis, the strengths and weaknesses are the internal factors
whereas opportunities and threats are the external factors.

SWOT Analysis is a proven management framework which enables a brand like KPMG to
benchmark its business & performance as compared to the competitors. KPMG is one of the
leading brands in the management & consulting sector.

The article below lists the KPMG SWOT, competitors and includes its target market,
segmentation, positioning & USP. Let us start the KPMG SWOT Analysis:

For KPMG, SWOT analysis can help the brand focus on building upon its strengths and
opportunities while addressing its weaknesses as well as threats to improve its market
position.

KPMG Strengths

The strengths of KPMG looks at the key aspects of its business which gives it competitive
advantage in the market. Some important factors in a brand's strengths include its financial
position, experienced workforce, product uniqueness & intangible assets like brand value.
Below are the Strengths in the SWOT Analysis of KPMG :

6
1. KPMG employs 180,000 people spread over 150 countries
2. KPMG have an extensive geographic reach
3. There revenues are spread over various industries

4. KPMG is a top-of-the-mind consulting which has expertise in audit, tax, and advisory

5. Publishes many international knowledge and analytical publications

6. KPMG has been actively involved in sponsorship of many events

7. It is among the Big four auditors

8. KPMC has won several awards in the consulting, outsourcing, tax solutions etc categories

9. The brand has focused on marketing through advertisements and sponsorships to boost its
brand image.

KPMG Weaknesses

The weaknesses of a brand are certain aspects of its business which are it can improve to
increase its position further. Certain weaknesses can be defined as attributes which the
company is lacking or in which the competitors are better. Here are the weaknesses in the
KPMG SWOT Analysis:

1. Being a top consulting brand, sometimes it is unapproachable due to its high expertise and
fees

2. Tough competition from big industry consultants as well as other knowledge consulting
agencies means limited market share growth for KPMG

KPMG Opportunities

The opportunities for any brand can include areas of improvement to increase its business. A
brand's opportunities can lie in geographic expansion, product improvements, better
communication etc. Following are the opportunities in KPMG SWOT Analysis:

1. There are enormous growth prospects in emerging markets for KPMG

2. Increasing the spending on infrastructure may spur demand for advisory services

3. Acquisition of smaller firms can strengthen KPMG's position in the industry

7
KPMG Threats

The threats for any business can be factors which can negatively impact its business. Some
factors like increased competitor activity, changing government policies, alternate products or
services etc. can be threats. The threats in the SWOT Analysis of KPMG are as mentioned:

1. Easing regulatory restrictions could foster competition

2. Recession would hinder the growth of business

3. Increasing competitor business means reduction in KPMG's market share

KPMG Competitors
There are several brands in the market which are competing for the same set of
customers. Below are the top 9 competitors of KPMG:

1. McKinsey and Company

2. Accenture
3. Ernst and Young
4. PwC PricewaterhouseCoopers
5. Deloitte Consulting
6. Boston Consulting Group BCG
7. A T Kearney
8. Booz and Company
9. Bain & Company

8
Organizational Structure

9
Environmental Scanning

The purpose of the scan is the identification of opportunities and threats affecting the
business for making strategic business decisions. As a part of the environmental scanning
process, the organization collects information regarding its environment and analyzes it to
forecast the impact of changes in the environment. This eventually helps the management
team to make informed decisions

Environmental scanning should primarily identify opportunities and threats in the

organization’s environment. Once these are identified, the organization can create a strategy
which helps in maximizing the opportunities and minimizing the threats. Before looking at
the important factors for environmental scanning, let’s take a quick peek at the components
of an organization’s environment.

 Socio-Cultural Environment

The social values and culture of an environment play a huge role in the functioning of the
company. So when the social environment changes it can have a direct or indirect effect on
the company.

For example in recent time society has seen a shift, and people no longer retire at 60. They
work five to ten years more after sixty. So this has had a huge impact on companies.

Cultural forces also have a significant impact on the success of a company in the long run.
Especially in a country like India where the cultural influences are strong and complicated.

 Technological Environment

In the times we live in, technology is constantly changing it is important that the business can
keep up with the changes. Technology does not only confine to computers and IT services. It
includes products, manufacturing processes, techniques etc.

The technological developments can be a huge advantage for a firm. But at the same time of
the technology used by the firm becomes obsolete due to such developments, then it can also
be a threat to the firm

10
 Economic environment

The economic conditions of the economy and the performance of a business have a very
close relationship. A business depends on the economy for all its inputs and factors of
production. It also sells its products and services in the same market.

A market is never in one stable condition. It is always in a flux. If there is a boom in the
market then all businesses will benefit from the favorable conditions. The income will be
higher, rate of interests will be low, new capital will be available etc. Also, the opposite is
also true in case of a bust.

 Political and Legal Factors

The political environment of a country is the combination of three branches of the

government – legislature, executive and the judiciary. The political environment of a country
will mainly depend on the political beliefs and ideologies of the party in power at the state
and central levels.

The legal environment refers to the rules, laws, regulations, and judgments etc. that affect the
functioning of a business. And this will also include the taxation laws and the Budget for the
given year. So stable legal and political government is really important if the business and the
economy as a whole has to succeed.

 Environmental issues

Environmental issues are effects of human activity on the biophysical environment, most
often of which are harmful effects that cause environmental degradation Environmental
protection is the practice of protecting the natural environment on the individual,
organizational or governmental levels, for the benefit of both the environment and humans.
Environmentalism is a social and environmental movement that addresses environmental
issues through advocacy, legislation education, and activism.

Environment destruction caused by humans is a global, ongoing problem. Water pollution

also cause problems to marine life. Most scholars think that the project peak global world

11
population of between 9-10 billion people, could live sustainably within the earth's
ecosystems if human society worked to live sustainably within planetary boundaries.

The bulk of environmental impacts are caused by the wealthiest populations in the globe
consuming too much industrial goods. The UN Environmental Program, in its "Making Peace
With Nature" Report in 2021, found addressing key planetary crises, like pollution, climate
change and biodiversity loss, was achievable if parties work to address the Sustainable
Development Goals.

Porter’s Five Forces Model of Competition

Michael Porter (Harvard Business School Management Researcher) designed various vital
frameworks for developing an organization’s strategy. One of the most renowned among
managers making strategic decisions is the five competitive forces model that determines
industry structure. According to Porter, the nature of competition in any industry is
personified in the following five forces:

 Threat of new potential entrants

 Threat of substitute product/services
 Bargaining power of suppliers
 Bargaining power of buyers
 Rivalry among current competitors

The five forces mentioned above are very significant from point of view of strategy
formulation. The potential of these forces differs from industry to industry. These forces
jointly determine the profitability of industry because they shape the prices which can be
charged, the costs which can be borne, and the investment required to compete in the
industry. Before making strategic decisions, the managers should use the five forces
framework to determine the competitive structure of industry.

Risk of entry by potential competitors: Potential competitors refer to the firms which are not
currently competing in the industry but have the potential to do so if given a choice. Entry of
new players increases the industry capacity, begins a competition for market share and lowers

12
the current costs. The threat of entry by potential competitors is partially a function of extent
of barriers to entry. The various barriers to entry are-

 Economies of scale
 Brand loyalty
 Government Regulation
 Customer Switching Costs
 Absolute Cost Advantage
 Ease in distribution
 Strong Capital base

Rivalry among current competitors: Rivalry refers to the competitive struggle for market
share between firms in an industry. Extreme rivalry among established firms poses a strong
threat to profitability. The strength of rivalry among established firms within an industry is a
function of following factors:

 Extent of exit barriers

 Amount of fixed cost
 Competitive structure of industry
 Presence of global customers
 Absence of switching costs
 Growth Rate of industry
 Demand conditions

Bargaining Power of Buyers: Buyers refer to the customers who finally consume the product
or the firms who distribute the industry’s product to the final consumers. Bargaining power of
buyers refer to the potential of buyers to bargain down the prices charged by the firms in the
industry or to increase the firms cost in the industry by demanding better quality and service
of product.

Strong buyers can extract profits out of an industry by lowering the prices and increasing the
costs. They purchase in large quantities. They have full information about the product and the
market. They emphasize upon quality products. They pose credible threat of backward
integration. In this way, they are regarded as a threat.

13
Bargaining Power of Suppliers: Suppliers refer to the firms that provide inputs to the
industry. Bargaining power of the suppliers refer to the potential of the suppliers to increase
the prices of inputs( labour, raw materials, services, etc) or the costs of industry in other
ways.

Strong suppliers can extract profits out of an industry by increasing costs of firms in the
industry. Suppliers products have a few substitutes. Strong suppliers’ products are unique.
They have high switching cost. Their product is an important input to buyer’s product. They
pose credible threat of forward integration. Buyers are not significant to strong suppliers. In
this way, they are regarded as a threat.

Threat of Substitute products: Substitute products refer to the products having ability of
satisfying customers needs effectively. Substitutes pose a ceiling (upper limit) on the
potential returns of an industry by putting a setting a limit on the price that firms can charge
for their product in an industry.

Lesser the number of close substitutes a product has, greater is the opportunity for the firms
in industry to raise their product prices and earn greater profits (other things being equal).

The power of Porter’s five forces varies from industry to industry. Whatever be the industry,
these five forces influence the profitability as they affect the prices, the costs, and the capital
investment essential for survival and competition in industry.

This five forces model also help in making strategic decisions as it is used by the managers to
determine industry’s competitive structure.

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 CHAPTER 2- RESEARCH METHODOLOGY

Statement of Problem
To Creating an attractive, safe, competitive, transparent environment.
Identify and define the common or unique business terminology used at the worksite.
Apply finance concepts to problems and issues within industry. Produce high quality
documents utilizing Word, Excel, Access or PowerPoint. Analyze any legal obligations,
principles, and rules associated with the organization. Identify and analyses a target
market. Identify and report on issues affecting diversity. To look deep into the
fundamentals of the company as well as the concerned industry.

Objectives of study
 To analyze the perception regarding Goods and Services (GST).
 To assess the view regarding the importance of GST.
 To find out the perception and the views on new implemented taxation system.
 To understand current tax system in India.

Value of Study
The findings of this study would benefit a wide spectrum of stakeholders it would also assist
policy makers in developing policies Further, the study would be useful to everyone as it would
generate more areas of further research in the discipline of taxation industry in the respective
industry.

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

15
Research Design:
A good research design has characteristics like problem definition, time required for
research project and estimate of expenses to be incurred, the function of research design is to
ensure that the required data which is collected should be collected accurately and
economically. A research design is purely and simply the framework for a study that guide
the collection and analysis of data. Two basic types of research design is used in this report –
● Exploratory Research:
The exploratory study is particularly helpful in breaking broad and vague problems into
smaller into more precise statement. Exploratory Research is also used to increase the
familiarity with the problem under investigation.
● Descriptive Research:
It is the design that one simply describe something such as demographic characteristics of
people. A descriptive study requires a clear specification of who, what, when and why the
research is conducted.
This is the research design of the study and then it comes to develop the research plan, which
means that what to do before going for the actual interpretation

Data Collection:
Data collection is the process to gather information about the relevant research topic. The
task of data collection begins after a research problem has been identified and the research
design has been chalked out. While deciding the method of data collection to be used for the
study, the researcher should keep in mind two types of data:

1. Primary Data
2. Secondary Data

Primary Data: Survey Method (Questionnaire)

The data has been collected by administering a structured schedule of questions. The
questions are generally framed by 5 point Likert Scale and answers by respondents in the
form of Agree, Disagree, Neutral, Strongly Agree and Strongly Disagree.

16
For the present study purpose questionnaire method is used to collect primary data. This
questionnaire is self-administered questionnaire and it is divided into 2 sections- Section A
and Section B .
Section A consists of the questions regarding Personal Information. For example : Name,
Age, Gender , Qualification, Marital Status, Occupation.
Section B consists of the questions which fulfil the research objectives.

Secondary Data:
This type of data has already been collected by someone else and has already pass through
statistical process. This type of data has been collected from the following sources:
Sources of Collection of Secondary Data;
❖ Internet

❖ Books

❖ Newspapers

❖ Magazines

Sample Size:
Sample Size refers to the number of items to be selected from universe to constitute a
sample. The sample size should be optimum as it should fulfil the objective of the research.
The sample size of the study is 50. The responses was captured from respondents on a 5
Point Likert Scale

Limitations of the study:

 Due to the limited time period, limited data have been collected.
 Due to the shortage of time, sample size is restricted to 50
 All headings covered in the report are based on the information given by various sources
of secondary data. Thus there may be possibility having other important aspects being
left out or not taken into consideration
 Conclusion drawn may not be appropriate and reliable as the source of data collection is
secondary in nature like newspaper, articles, various books, web links, etc.
 The project studies the tax planning for individual assessed to income Tax.

17
 The Study relates to non-specific and generalized tax planning, eliminating the need of
sample/population analysis.

CHAPTER 3- CONCEPTUAL DISCUSSION

LITERATURE REVIEW

The proposed GST has changed the whole scenario of indirect tax system. GST has already
unified all the indirect taxes and created a smooth national market. GST helped the economy
to grow in more efficient manner by improving the tax collection.

GST was first introduced in France in 1954 and now it is followed by 140 countries. Most of
the countries followed unified GST while some countries like Brazil, Canada follow a dual
GST system where tax imposed by central and state both. In India, also dual system of GST
is proposed including CGST and SGST.

●According to Tan and Chin-Fat- Malaysian understanding regarding GST was still low.
Based on study conducted by Dijawadi and Fahr pointed out that knowledge about tax is
important to increase the thrust of authorities and citizens

●Ehtisham Ahmed and Satya Poddar – ‘ Goods and service tax reforms and
intergovernmental consideration in India’ that GST provides transparent tax system with
increase in output and productivity of economy in India.

●According to Patil – ‘ Public awareness towards GST was low when the GST was
introduced because of the lack of familiarity with the system.

●Saira et al – Based on the history of implementation by other countries around the world
have received the positive impact in terms of their revenue

●Dr. R Vasanthagopal- Conducted a study on GST in India : A big leap in Indirect Tax
System and concluded that switching to seamless GST from current complicated indirect
system in India will bring a positive step in Indian Economy .

●According to Torgler- Tax morale is important to taxpayer awareness. On the other hand
research by Tekeli using multiple regression analysis show that tax morale has insignificant

18
relationship on tax awareness. Takeli conclusion is supported by the study regarding cause
and consequences of tax morale.

●Research by Mustapha and Palil- Stated that the influence of compliance behavior towards
individuals awareness has been proven in various researches . From the findings of Razak
and Adafula, Santi they found the taxpayers awareness is significantly associated with tax
compliance and this is also supported by study Jatmiko.

●Pall et al- Study by using multiple regression analysis , the researchers out that there are
significant relationship between awareness and tax knowledge . When individuals have
knowledge related to tax systems , people will be more willing to respect the tax system and
improved individual awareness. Further, Jatmiko also conclude that awareness can be
developed from the knowledge and understanding .

●Djawadi and Fahr- This study is pointed out that knowledge about tax is important to
increase the thrust of authorities and citizens.

●Pinki, Supriya Kamma and Richa Verma – Goods and Service Tax is a panacea for indirect
tax system in India and concluded that the new NDA government in India is positive towards
the implementation of GST and it is beneficial for central government , state government and
as well as consumer in the long run .

●Agogo Mawuli- GST is not good for low income countries and does not provide broad
based growth to poor countries. The rate of GST should be less than 10%.

A survey was ready for estimating the viability of preparing and improvement. The essential
information gathered by straightforward irregular testing by utilizing polls was organized,
changed over in to rate and showed both in table as well as by graphical portrayal for
examination. In light of the information, Translations were made. The poll utilized for
completing overview is remembered for the annexure.

●Jai Prakash – He mentioned that the GST at the central and State level are expected to give
more relief to industry, trade, agriculture and consumers through a more comprehensive and
wider coverage of input tax set off and service tax set off , subsuming of several taxes in the
GST and phasing out CST .

●International Journal of Scientist Research and Management – Girish Garg Assistant

Professor from PGDV College University of Delhi has published paper titled’ Basic Concepts

19
and Features of Goods and Service Tax in India . He has given the outline of GST and what
does this tax system wants to achieve with threats and challenges and opportunities that the
free market economy can bring .

●Mohammad Ali Roshidi- Conduct a study on ‘ Awareness and perception of tax payers
towards good and service tax implementation’ . The study attempts to find out what level of
awareness and perception to GST taxpayers in India .

●International Journal of Innovative Studies in Sociology and Humanities – A study on

impact of GST after implementation Milan Deep Kaur and his co authors Assistant Professor
from Himachal Pradesh University talks about the impact of GST and implementation of it ,
its benefit and challenges . He also emphasizes that GST have changed things in current
situation.

●Vineet Chauhan – Conduct a study on ‘ Measuring Awareness about implementation of

GST ‘ . A study survey of small business unit of Rajasthan State in India. The study seeks to
evaluate the awareness of small business owners about GST difficulties they face . 148 small
business owners were analyses in order to identity the awareness about GST from Rajasthan
State and the kind and extent of relief provided and the implementation of provision under
GST law.

●Poonam – The biggest problem in Indian tax system like Cascading effect and tax evasion,
distortion can be minimized by implementing GST . After amalgamation of local state and
central taxes competitiveness of industry and company have increased . The extra revenue
which was generated from broaden tax base structure have been utilized foor the growth of
nation .

●Times of India – It is stated that the Sweets makers are confused with fixing the tax for their
products as the ingredients used in the sweets are taxed separately as raw material and
finished goods taxing is different . Plain Burfi is 5% taxed but chocolaye burfi is fixed with
28%. Plain burfi mixed with other dry fruits is of 12%. The taxingsystem makes the Sweet
markers to get confused on how much GST is to fixed for which product.

●Times of India – It stated that the GST implementation across different places for the same
product has wider differences which the consumer are unaware, resulting them in surprise .
Example- Rasmalai sold in counter at a shop is taxed with 5% but if it is served in the hotel it

20
is taxed with 18% this has resulted in differences of consumer shopping to purchase the
similar product ,

INTRODUCTION OF TOPIC

It is an indirect tax used in India on the supply of 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.

The reference of GST was first made in the Indian budget in 2006-07 by the Finance Minister
Mr P. Chidambaram as a single centralized Indirect Tax.

The 122th Amendment Bill 2014 was introduced on December 19, 2014 and passed on May
06, 2015 in the lok sabha and yet to be passed in the Rajya Sabha .

Former Late Finance Minister’ Arun Jaitley introduced GST in 2017.

Types of Goods and Services in India

1) CGST – CGST is a Central Goods and Service Tax levied by the center. CGST is a
tax levied on Intra State supply of both goods and services by the central government
and governed by the CGST Act.
2) SGST- SGST is a state goods and service tax levied by the State. SGST is a tax levied
on Intra State supplies of both goods and services by the State Government and
governed by the SGST Act .
3) IGST- Under IGST , IGST is a tax levied on all Inter-State supplies of goods and
services and governed by the IGST Act. IGST will be applicable on any supply of
goods and services in both cases of import into India and export from India.
4) UTGST –UTGST is Union Territory Goods and Service Tax. UTGST is only
applicable when any goods or services or both are consumed in the given 5 regions of
India that includes Andaman and Nicobar Island , Dadra & Nagar Haveli,
Lakshadweep , Pondicherry and Daman & Diu

21
Features of GST –

●Subsuming of 17 taxes at Central and State Level.

●One Tax, One Nation

●No differentiation in Goods and Services

●No Tax on Tax

Benefit of GST –

1) Easy Compliance – A robust and comprehensive IT system would be the foundation of

GST regime in India. All taxpayer services such as registrations, returns, payment

2) Uniformity Tax Rates & Structures/Development of Common National Market –GST

ensures that indirect tax rates and structures are common across the country. It would
increase the certainty and ease of doing business.

3) Removal of Cascading Effect –

A seamless flow of tax-credit throughout the value chain and across boundaries of states,
would ensure that there is minimal cascading of taxes. This would reduce the hidden cost of
doing business.

4) Boost to Exports –

Subsuming of major taxes in GST, complete and comprehensive set off of tax paid on goods
and services would reduce the locally manufactured goods and services. This will increase
the competitiveness of Indian goods and services in the International Market and give boosts
to Indian Exports.

5) Competitiveness-

22
Reduction in transactions cost of doing business would eventually lead to an improved
competitiveness for the trade & industry.

A robust and comprehensive IT system would be the foundation of GST regime in India. All
taxpayer services such as registrations, returns, payment.

Impact of Goods & Service Tax on Various Industries-

1) Food Industry –

Considering the standard rate of 18% of GST, every restaurant bill payer can save around Rs.
55 on the bill of Rs. 2,200. If we see the effective rate of tax under the current system, it ends
up to around 20.5% which will come down to 18% with the GST effect.

2) Housing and Consumption Industry –In India, the construction and housing sector need to
be included in the GST tax base because the construction sector is a significant contributor to
the national economy.

3) FMCG Sector-

India’s fast-moving consumer goods (FMCG) has grown consistently during the past years.
Implementation of proposed GST and opening FDI are expected to fuel the growth and raise
industry’s size.

4) Rail Sector –

There have been suggestions for including the rail sector under the GST umbrella to bring
have the added benefit of ensuring that all inter- state transportation of goods can be tracked
through the proposed IT network.

5) Financial Services –

In most of the countries GST is not charged on the financial services. In New Zealand, most
of the services are covered expect financial services as GST. Under the service tax, India has
followed the approach of bringing virtually all financial services. GST also includes financial
services.

6) Information Technology –

23
Domestic supply of software should also attract GST on the basis of mode of transaction.
Hence, if the software is transferred through electronic form, it should be considered as
Intellectual Property and regarded as a service. And if the software is transmitted on media or
any other tangible property, then it should be treated as goods. GST will also help in uniform,
simplified and single Taxation system and thereby reduced prices

Challenges of GST implementation –

✔ With the respect to nature of taxes

The taxes that are generally included in GST would be excise duty , cess, service tax and
state level VAT among others . There are numerous other taxes that still not included or out
of GST .

✔ With the respect of Rates of Taxation

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

✔ With respect to tax management and infrastructure

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

✔ With respect to Tax Threshold

The threshold limit for turnover above which GST would be levied will be one area which
would have to be strictly looked at.

Benefits of GST

1) Make in India

✔ Will help to create a unified common national market for India giving boost to foreign
investment and Make in India campaign.

24
✔ Will prevent cascading of taxes as Input Tax Credit will be available across goods and
services at every stage of supply.

✔ It will generate more employment and thus increase in GDP with gainful employment
leading to economic growth.

✔ It will also eradicate poverty by generating more employment and more financial
resources.

✔ Uniform SGST and IGST rates will reduce the incentive for evasion by eliminating rate.

2) Ease of doing Business

✔ Simple tax regime with fewer exemptions

✔ Reductions in the multiplicity of taxes that are at present our indirect tax system leading to
simplification and uniformity.

✔ All interaction through the common GSTIN portal so less public interface between the

Taxpayer and the tax administration.

✔ Common procedures for registration of taxpayer, refund of taxes, uniform format of tax
return, common tax base, common system of goods and services will lend greater certainty to
taxation system .

3) Benefit to Customers

✔ Final price of goods are expected to be lower due to seamless flow of input tax credit
between the manufacturer, retailer and service supplier.

✔ Average tax burden on companies is likely to come down which is expected to reduce

Prices and lower prices means more consumption.

25
Current issues

1. Agility and Change Management

Volatility will expand through 2021, forcing financial services businesses to demonstrate
continued agility through change management. We saw businesses quickly and effectively
move to remote working during 2020.

Ensure your governance and management routines demonstrate your capacity to identify,
manage and mitigate risk. This includes documenting your change management practices in
order to satisfy regulators amidst continued and more permanent remote working, embracing
more flexible operating models, continuing consolidation, and the use of expanded digital
platforms.

Key steps to effectively integrate organisational change include:

 Identify change drivers: Conduct horizon scanning to monitor change drivers (e.g. new
acquisitions, products, delivery channels and regulatory obligations). Identify and link
these changes to your existing lines of business, products and risk data.
 Assess impacts: Assess the impacts of new or changed regulatory obligations; determine
gaps in coverage or consistency and opportunities for convergence; analyse the
downstream effects to your people, processes, and technology.
 Design strategy: Identify short-term and long-term goals; develop processes to effectively
embed change, including training and communication plans for impacted stakeholders;
design dashboard reporting and management protocols.
 Implement changes: Update and enhance policies and procedures, map templates, process
flows, risk control self-assessment and testing programs; enhance existing technology
infrastructure; and communicate key changes to your staff and stakeholders.
 Continuous monitoring and improvement: Review monitoring and testing procedures;
review KPI/KRI data and assess complaint data; determine enhancement opportunities,

26
 review your remediation approach for identified issues; and continue to streamline and
simplify your business operations.

2. Technological Challenges

As regulators refine their risk-based approach to supervision, the quantity and quality of
information that they require regulated businesses to provide will continue to increase.

Any transformative technology has risks as well as benefits; using technology to mitigate the
costs of operating in the CDs and to reduce operational risk are no different. Financial
services businesses will need to ensure that they have sufficient understanding of their system
capabilities and controls.

Consolidation of businesses continues in all three of the CDs, consolidators should be ready
for the challenges that post-acquisition integration poses.

Key technology actions to consider:

 As regulators’ requirements for data evolve, focus on your system’s ability to be able to
meet these requirements accurately and efficiently, and consider such requirements in any
new system developments.
 Define the areas of your business impacted by your respective IT systems and determine
the risks that this may pose.
 Develop a roadmap and strategy to measure and assess your control environment for
technology systems.
 Assess exposure to integration risks and define your strategic goals to mitigate them, for
example the use of parallel systems until full integration is complete.
 Integrate technology risk management within your broader risk strategy.

3. Core Risk Management

27
In 2021, risk management foundation and culture will be tested. An effective three line of
defence model will be fundamental to regulatory supervision and enforcement. Be prepared
for critical assessment of the adequacy of your enterprise wide risk management frameworks.

Key risk management actions to consider:

 Evaluate existing core risk management activities, framework, and coverage for
effectiveness.

 Carry out post project reviews to ensure regulatory obligations are met or exceeded.
 Evaluate existing risk frameworks for scalability to support firm strategy and growth
objectives.
 Review recent changes to business operating models to ensure new or elevated risks are
adequately accounted for in risk assessments.
 Evaluate your existing your internal control environment scope, coverage and
responsibilities; strengthen any identified gaps or potential exposures and escalate any
significant issues.
 Review and cleanse existing data; assess the quality of that data to support data driven
assessments.
 Support your enterprise and operational risk priorities through the use of technology, data
and skilled technology risk professionals.

4. Operational resiliency and cyber security

Financial services businesses using digital platforms need to continuously demonstrate

resilience and control effectiveness against expanded cyber and vulnerability threats. Be
prepared for more focus on the protection of proprietary data, customer data, core processes,
and exposure from third parties.

Key risk management actions to consider in order to maintain stability and respond to
regulatory pressures:

 Embed operational resilience as a key criterion across all management decisions and
business activities.

28
 For critical business services, in addition to scenario execution and impact tolerances,
consider assessing business as usual service resilience and service level assessments of all
threat vectors.
 Adopt the NIST (National Institute of Standards and Technology) cybersecurity
framework to enable you to assess and improve your ability to prevent, detect, and
respond to cyber-attacks.

 Consider assessing cyber and enterprise risks quantitatively based on frequency and loss
magnitude using the FAIR (Factor Analysis of Information Risk) methodology.
 Risk assess and then revisit thresholds and permissions (high risk to low) to ensure
appropriate thresholds have been set.

5. Compliance risk

Compliance risk remains an area of key focus in 2021. The challenges of increased local and
extra-territorial regulation, coupled with limited resource, continue to place growing pressure
on compliance functions within financial services businesses. Leaders of regulated
businesses face a mandate that increasingly includes culture, conduct and data privacy, as
well as the existing focus on financial crime.

Key compliance risk actions to consider:

 Increase the frequency at which you refresh risk assessments in order to account for the
new environment.
 Increase the frequency at which you refresh and validate risk and compliance core data.
 Strengthen the integration of compliance within the business, taking advantage of
opportunities to embed compliance resources and new functionalities alongside large
operational shifts.
 Maintain consistent horizon scanning for changes in regulations which may impact your
business, including both local and international regulation.
 Consider evolving consumer and investor standards when managing regulatory risks and
client expectations

6. Fraud

29
Regulators will focus on areas of expanded risk in the current economic cycle, including
fraud, insider threat and conflicts of interest. Be prepared with expanded data analytics and
improved communication, reporting and collaboration across functional groups to help in the
prevention and detection of potential misconduct. Develop cohesive connections between
fraud, cybersecurity and financial crime teams within all three lines of defence.

Key fraud actions to consider:

 Strengthen fraud and employee misconduct controls, including digital surveillance, and
fraud prevention programs that address ongoing remote working conditions and staff
constraints.
 Align preventive, detective, and reactive capabilities with the risk profile of your business
and clients.
 Revisit target operating models and responsibilities to remove internal friction and
duplication of effort between first and second line operations.
 Operationalise fraud processes and technology through integration of advanced
technology tools, including enhanced analytics capabilities.
 Respond to rapid changes in threats with automation and new capabilities; integrate ethics
and compliance efforts for scalability and continued sustainability.
 Improve communication, reporting and collaboration across functional groups responsible
for preventing, detecting, investigating and reporting potential fraud.
 Aggregate risks and losses across all business lines and develop appropriate metrics to
monitor change

7. Financial Crime

Financial crime remains a key focus area for regulators in the CDs in 2021. Criminals will
take every opportunity to exploit a company’s weaknesses, and the pandemic has provided an
ideal opportunity for criminals to use the disruption within businesses to their advantage,
bringing expanded risk in AML, sanctions and terrorist financing.

Ensure that you utilise technology, data analytics and real-time surveillance to identify
potentially suspicious activity.

30
Key financial crime actions to take:

 Leverage data and technology to improve and streamline your risk assessment and
transaction monitoring processes.
 Continue to scan the horizon for developments in the evolution of financial crime and
regulatory responses.

 Align preventive, detective, and reactive capabilities with the risk profile of the company
and its customers
 Develop cohesive connections between fraud, cybersecurity, and financial crime teams
within all three lines of defence.
 Enhance processes and procedures to be able to respond to rapid changes in threats.
 Develop financial crime capabilities that are both scalable and effective, with suspicious
activity reporting that provides adequate and meaningful information.

8. Transparency

International efforts to increase tax transparency will continue. Campaign groups will
continue to apply pressure to national governments to introduce public registers of beneficial
ownership, and jurisdictions around the world will continue to develop their local registers.
Covid 19 has caused a number of issues in respect of substance, for example boards that have
not been able to meet in the appropriate jurisdiction. Be prepared to meet these challenges
and act quickly on new advice and requirements in the jurisdictions you transact in and with.
Those who make best use of their data will have an advantage.

 Key transparency actions to take:

 Continue to scan the horizon for new developments such as DACS6. Engage with your
clients to understand how these developments will affect their future requirements.
 Transparency adds another dimension to your relationship with your clients; ensure that
you understand how the services you provide fit into the transparency of the overall
structure.
 Align your new business, risk management, compliance and internal audit process
processes to new requirements and threats to your clients’ privacy.

31
 Develop cohesive strategies for using your data to satisfy the requirements of revenue
services and your clients.

9. ESG and climate

ESG will move from being seen as solely “doing good” to a key driver of value, risk and
opportunity. Be prepared for stakeholders and regulators to expect financial services
businesses to identify and refine ESG and climate-specific risks. Adopt standard data,
analysis, and disclosure practices and develop a roadmap to measure progress and impacts.

Key climate and ESG actions to consider:

 Define your approach/responsibilities to ESG and climate risk, including customer and
third-party relationships, across strategies, policies, practices, and mandates.
 Develop an ESG roadmap and strategy; establish targets and timelines to incorporate
climate risk and ESG decision making and reporting.
 As global standards evolve, identify the tools required to assist with the horizon scanning
to forecast ESG risk; establish policies, controls and risk management processes to
mitigate climate and ESG-related risks, including reputational risks, through proactive
monitoring and identification.
 Align internal definitions with evolving expectations to include climate risk and ESG-
related impacts (e.g., what “ESG” encompasses, what is “green”, what is “sustainable”).

History and Development of Company

In 1818, John Moxham opened a company in Bristol.James Grace and James Grace Jr.
bought John Moxham & Co. and renamed it James Grace & Son in 1857. In 1861, Henry
Grace joined James Jr. and the company was renamed James & Henry Grace; the firm
evolved to become Grace, Ryland & Co.

32
William Barclay Peat joined Robert Fletcher & Co. in London in 1870 at the age of 17 and
became head of the firm in 1891, renamed William Barclay Peat & Co. by then. In 1877,
Thomson McLintock founded Thomson McLintock & Co in Glasgow. In 1897, Marwick
Mitchell & Co. was founded by James Marwick and Roger Mitchell in New York City. In
1899, Ferdinand William LaFrentz founded the American Audit Co., in New York. In 1923,
The American Audit Company was renamed FW LaFrentz & Co.

In about 1913, Frank Wilber Main founded Main & Co. in Pittsburgh. In March 1917, Piet
Klijnveld and Jaap Kraayenhof opened an accounting firm called Klynveld Kraayenhof &
Co. in Amsterdam.

In 1925, William Barclay Peat & Co. and Marwick Mitchell & Co., merged to form Peat
Marwick Mitchell & Co.

In 1963, Main LaFrentz & Co was formed by the merger of Main & Co and FW LaFrentz &
Co. In 1969 Thomson McLintock and Main LaFrentz merged forming McLintock Main
LaFrentz International and McLintock Main LaFrentz International absorbed the general
practice of Grace, Ryland & Co.

In 1979, Klynveld Kraayenhof & Co. (Netherlands), McLintock Main LaFrentz (United
Kingdom / United States) and Deutsche Treuhand-Gesellschaft (Germany) formed KMG
(Klynveld Main Goerdeler) as a grouping of independent national practices to create a strong
European-based international firm. Deutsche Treuhand-Gesellschaft CEO Reinhard
Goerdeler (son of leading anti-Nazi activist Carl Goerdeler, who would have become
Chancellor if Operation Valkyrie had succeeded) became the first CEO of KMG. In the
United States, Main Lafrentz & Co. merged with Hurdman and Cranstoun to form Main
Hurdman & Cranstoun

In 1987, KMG and Peat Marwick joined forces in the first mega-merger of large accounting
firms and formed a firm called KPMG in the United States, and most of the rest of the world,
and Peat Marwick McLintock in the United Kingdom.

In the Netherlands, as a consequence of the merger between PMI and KMG in 1988, PMI tax
advisors joined Meijburg & Co. (The tax advisory agency Meijburg & Co. was founded by
Willem Meijburg, Inspector of National Taxes, in 1939). Today, the Netherlands is the only

33
country with two members of KPMG International: KPMG Audit (accountants) and Meijburg
& Co (tax consultants).

In 1991, the firm was renamed KPMG Peat Marwick, and in 1999, the name was reduced
again to KPMG.

In October 1997, KPMG and Ernst & Young announced that they were to merge. However,
while the merger to form PricewaterhouseCoopers was granted regulatory approval, the
KPMG/Ernst & Young tie-up was later abandoned

New development of company and industry

1. Measuring Stakeholder Capitalism

Environment, Social and Governance considerations (ESG) has become a top priority on
investors’ and corporates’ agendas. Boards and executives increasingly see ESG as
imperative to long-term value creation and the need to meet investor demand for comparable
ESG measurements and disclosures, in a way that drives value for an organization.

Commissioned by the World Economic Forum’s International Business Council (IBC), the
white paper Measuring Stakeholder Capitalism - Towards common metrics and consistent
reporting of sustainable value creation outlines a recommended set of 21 core metrics and 34
expanded metrics to further the road towards a global harmonized reporting system.

Developed in collaboration with Bank of America, KPMG and the other Big Four
organizations, the initiative reflects an extensive consultation process with corporates,
investors, standard setters, NGOs, and international organizations, that provide a common set
of existing disclosures that lead us towards a coherent and comprehensive global corporate
reporting system.

2.Taskforce for the Mobilization of Capital for Clean Energy Transition in Emerging
Economies

The world needs a clear path toward zero net emissions. We understand the decarbonisation
of electricity systems and expansion of renewable energy across the world is a critical step

34
toward this goal. In support of this, Mike Hayes Global Head of Climate Change &
Decarbonisation for KPMG IMPACT & Global Head of Renewables, KPMG International,
participates on this taskforce that is focused on understanding the real barriers to mobilizing
capital into emerging economies and coming up with new and innovation solutions.

Driving the agenda of the taskforce forward and together with the Alliance of CEO Climate
Leaders, KPMG has co-authored a briefing paper highlighting the significant economic and
emission reduction benefits that can arise if steps are taken to remove the barriers that exist to
the implementation of corporate power purchase agreements (CPPAs) in emerging
economies. Read the briefing here.

In an additional contribution to the outputs of the group, a proposal put forth by KPMG
IMPACT designed to mobilize capital for climate action that was taken on by the Taskforce,
has been issued as a thought leadership paper by the Forum. Net-zero equity is a new
investment concept designed to mobilize capital that is prepared to accept highly uncertain
financial returns to fund the most challenging elements of the climate agenda. The idea is that
the uncertain financial returns will be more than compensated by the positive impact on the
climate agenda that will be created.

3. Digital Payments

Payments is now one of the most critical priorities for business leaders on the global stage.
The past few years has seen an exponential rise in activity in the payments arena, across a
number of spectrums. The aim of this project is to accelerate the adoption of interoperable
and inclusive digital payments globally to promote trade and commerce.

Courtney Trimble, Principal, Payments and Digital Transformation, Financial Services, has
joined the Advisory Committee - a principal-level body of 30 of the foremost leaders in the
space that we will consult with to inform the strategic vision and direction of the project.

35
 CHAPTER 4- DATA ANALYSIS

The data collected from various respondents have to do analysis for drawing conclusions. So,
in this efforts have been made to analyse and interpret the collective data towards perception
of customers on Goods and Service Tax through questionnaire.

First of all, data is collected and have been presented in tabular form and there after it is
analysed with the help of percentage and Pie Charts

Q1. Classification of respondents on the basis of Age?

Options Response In Percentage (%)

Below 25 5 10
25-30 16 32
Above 40 29 58
Total 50 100

TABLE 3.1 - Table showing Classification of respondents on the basis of Age

CHART 3.1 – Chart showing Classification of respondents on the basis of Age

36
Interpretation From the above table and figure it is clear that majority of respondents that is
58% are above 40 years, whereas 32% belongs to 25-40 years and the rest 10% are below 25
years. Thus it can be concluded that the majority of the respondents are above 40 years.

Q2. What are the Qualification of respondents?

Options Response In Percentage (%)

Graduation 29 38
Post-Graduation 11 22
Any other 20 40
Total 50 100

TABLE 3.2 - Table showing response of what are the Qualification of respondents?

CHART 3.2 - Chart showing response of under which Heads Of What are the
Qualification of respondents?

Interpretation:- From the above table and figure it is depicted that the majority of
respondents are 40% belongs to other areas like metrics, secondary schools etc .whereas 38%
of respondents are graduates and 22% are post graduates.

37
Q3.What Is Your Income Range?

Options Response In Percentage (%)

< 3 Lakhs 20 41
3-5 Lakhs 27 53
More than 5 Lakhs 3 6
Total 50 100

TABLE 3.3 - Table showing response of Income Range

Response

< 3 Lakhs 3-5 Lakhs More than 5 Lakhs

CHART 3.3 - Chart showing response of Income Range

Interpretation:- From above chart, it is analyse that, Less than Rs 3 lakhs 40.4% , Rs 3 lakhs
to Rs 5 lakhs 53.2% and More than 5 lakhs 6.4% these are the income range of respondent.

38
Q4. What’s your occupation?

Options Response In Percentage (%)

Business 30 60
Service 8 16
Professional 5 10
Any other 7 14
Total 50 100

TABLE 3.4 - Table showing response of what’s your occupation

CHART 3.4 - Chart showing response of what’s your occupation

Interpretation:- From above chart, it is analyse that 93.6% Respondent tax consultant is
notify the various provision and submission of all tax and 6.4% tax consultant is not notify
the various provision and submission of all tax..

39
Q5. What’s your perception towards GST? “Classification of respondents on the basis
of their perception regarding ‘GST is a good Tax reform for India”

Options Response Percentage

Strongly Agree 28 56
Agree 15 30
Neutral 6 12
Disagree 1 2
Strongly Disagree - -
Total 50 100

TABLE 3.5 - Table showing response What’s your perception towards GST

CHART 3.5 - Chart showing response What’s your perception towards GST

Interpretation:- Above chart depicted that majority of the respondents satisfied

with the statement of taxation reform is good for India. 56% of respondents are
strongly agree with the statement, 30% are agree whereas 12% respondents are
neutral . Hence, it can be concluded that the majority of respondents are agree

40
 with the statement.

Q6.Does GST has increased various legal formalities? Classification of respondents on

the basis of their perception regarding GST implementation

Options Response In Percentage (%)

strongly agree 21 42
Agree 21 42
Neutral 8 16
Total 50 100

TABLE 3.6 - Table showing response of Does GST has increased various legal
formalities

CHART 3.6 - Chart showing response does GST has increased various legal
formalities

Interpretation- Above Chart depicted that majority of the respondents satisfied

with the statement after implementation of GST has increased various types of

41
 formalities. 42% respondents are strongly agree and 42% are agree and 14% are
neutral . So, it is concluded that majority of the respondents satisfied with the
statement.

Q7. Does –‘GST has increased tax burden on a Layman?

Options Response In Percentage (%)

Yes 26 52
No 19 38
Not sure 5 10
Total 50 100

TABLE 3.7 - Table showing response of Does –‘GST has increased tax burden on a
Layman

Response

Yes No Not sure

CHART 3.7 - Chart showing response of Does –‘GST has increased tax burden
on a Layman

Interpretation:- According to above table, it shows the majority of the respondents

i.e. 52% are agree with this statement and 10% are neutral and also 38% are
disagree with the statement . 16% are strongly agreed. So, it can be concluded that

42
 majority of the respondents said that GST has increased the burden of a common
man.

Q8. Is GST really difficult to understand?

Options Response In Percentage (%)

Yes 39 78
No 8 16
Not Sure 3 6
Total 50 100

TABLE 3.8 - Table showing response of Is GST really difficult to understand?

Response

Yes No Sometimes

CHART 3.8 - Chart showing response of Is GST really difficult to understand?

Interpretation:- Above table and figure depicted that majority of respondents i.e.
78% are agree, 30% are neutral,6% are strongly agree with the statement. Another
16% disagree and. Hence, it can be concluded that the maximum respondents are
agree .It shows that in initial stage, the GST is very difficult to understand

43
Q9. Is GST beneficial in long run?

Options Response In Percentage (%)

Yes 46 92
No 4 8
Total 50 100

TABLE 3.9 - Table showing response is GST beneficial in long run?

Response

Yes No

CHART 6.9 - Chart showing response of is GST beneficial in long run?

Interpretation: - From the above table and figure it is concluded that 92%
respondents responds GST is beneficial in long run. Rest does not agree. Hence,
majority of respondents responds in a positive manner.

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Q10 Does GST is affecting small scale business very badly?

Response No of Respondents Percentage

Strongly Agree 9 18
Agree 10 20
Neutral 25 50
Disagree 6 12
Strongly Disagree 0 0
Total 50 100

TABLE 3.10 - Table showing response of Does GST is affecting small scale business
very badly?

CHART 3.10 - Chart showing response of Does GST is affecting small scale business
very badly?

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Interpretation:- According to above table, it shows that majority of respondents are i.e. 50%
are neutral, 20% are agreed, 18% are strongly agreed. This data represents GST has already
put a normal impact on small business firms and also impacts medium firms.

CHAPTER 5- FINDINGS &CONCLUSION

FINDINGS

After Data Analysis and Interpretation, below are the findings of the study:

●Most of the respondents are Male.

●Majority of the respondents i.e. 58% comes under the age group above 40 years and 32%
comes under 25-40 years.

●More than 60% respondents comes under Businessmen Category.

●Most of the respondent’s perception are very positive towards GST as they are aware of
GST through mass media.

●56% of the respondents agree that GST is a good tax reform for India and it is a turning

Point of taxation system.

●Most of the customer’s perception is that GST is very beneficial in long run for the
economy.

●Maximum 50% of respondents responds that GST has increased the legal formalities.

●Majority of the people have perception that they still need more clarity on GST.

●Most of the customer’s opinion on GST is that it is a fair tax and also GST is a compliance
tax.

At the end of this study, we can say that that given the rising standards of Indian individual
and upward economy of the country, prudent tax planning beforehand is must for all the
citizens to make the most of their incomes. However ,them is of tax savings instruments
planning horizon would depend on an individual’s total taxable income and age in the
particular financial year.

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CONCLUSION

The government should put more effort to ensure that the businessmen, customers and small
business owners to have a clear understanding and develop a positive perception towards
GST. Good understanding among businessmen, customers, small business owners is
important as it can generate a positive perception towards the taxation policy.

The government could initiate and promote an extensive publicity programs which could help
to create awareness and generate positive perception in understanding the rationale and
importance of GST in India.

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 CHAPTER 6- SUGGESTIONS

Reduction in Number of Tax Slabs Rates

To begin with let’s talk about drastic changes in tax rates that are bothering the taxpayers.
There is an invariable need to put a halt on the changes in tax rates and decide the rate
structure that is static for a few years. Adding on to that increasing the tax rates is not an ideal
solution for grabbing more revenue especially in the era of an economic slowdown. In short,
there is a need for a simplified tax structure of only three tax slabs. Either we need to merge
12% & 18% or 5% & 12% slabs into one.

Effortless Input Tax Credit Claims

An urgent restoration of the Input Tax Credit system is indeed an invariable requirement.
GST on all the businesses should be seen as setoff in line with global practices. And if
restrictions on credit is not possible then the denial of say 5% of total input taxes should be
made an option for the taxpayers without there being an urgent need for detailed expense
analysis.

Spreading the GST Net

There is still a huge crowd away from paying GST (Goods and Services Tax) keeping the fact
as their primary concern, the GST council meeting should find out ways to bring in real
estate, petroleum and electricity sectors under its umbrella. The GST net could be expanded
gradually starting from industrial fuels like Aviation Turbine Fuel (ATF) and natural gas.

Renovating ITC System

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Restriction on cash flow in the market has adversely affected businesses. The ITC that is
acquired at the state level by several businesses is subject to tax payment in some other state.
At central GST, a national pool has to be considered in addition to allowing an offset against
income tax. An excess amount in input tax can be dispersed as a refund to the taxpayers.

Practical Targets for GST Collection

As per the government’s data, monthly GST collection is a little more than Rs. 1 lakh crore in
the current financial year and therefore the revenue target is missed by large numbers.
Revenue collection is important but it cannot define the spontaneity of the GST system which
totally depends on the smooth function of businesses and widened tax base.

Hope is revived with the commencement of new e-invoicing under GST practice which will
allow real-time tracking of ITC claimed by a business based on invoices of B2B transactions.

Including Some Exempted Goods In GST Regime:

Some goods & services like electricity, real estate, and petroleum are out of GST structure.
As they are out of GST bracket, the input tax credit benefits cannot be utilized by the
segments involved in the process and so it is a loss for them. In addition, these sectors are out
of the indirect tax system at the mercy of state government. Some sectors such as oil and gas
are demanding to be included in the GST. Even experts suggest that the right way to
implement GST is to put all the sectors under the bracket of GST, but it would take some
time to implement the required tweaks to the system.

Let E-waybill Go Away

The industry demands to let the GST e-way bill go, which is a digitally generated instrument
to move the goods worth Rs. 50,000 or more. As GST Council has postponed the
implementation of e-way until April 2018, the experts say the GST is a consumption tax so it
doesn’t require to add the movement of goods in the bracket of GST.

49
 REFERENCES/BIBLIOGRAPHY

Web

⮚ www.gstindia.com

⮚ www.gstn.org

⮚ https://en.wikipedia.org

⮚ www.financialexpress.com

⮚ www.cbec.gov.in

⮚ www.gstcouncil.gov.in

⮚ http://Wittgenstein

⮚ www.comtax.up.nic.in

Books

▪Sharma Publication- Concept of Tax, Structure of Tax, Indian Taxation System – Indirect
Tax Textbook , BCOM .

▪CR Kothari –Research Methodology – Concept and Meaning of Research, Sampling,

Methods and Techniques of Data Collection –BBA , BCOM Textbooks

▪Pinki, Supriya, Richa Verma- Goods and Service Tax – Panacea for Indirect Tax System in
India

▪Agogo Mawuli- ‘ Goods and Service Tax ‘

▪Kumar Nitin- ‘ GST in India : A way forward’ Global Journal of Multi Disciplinary Studies.

▪Gupta Nishita-Goods and Service Tax : Its Implementation on Indian Economy

50
 ANNEXURE

SECTION -A
1. What is your gender?
a) Male
b) Female

2. In which Age Group you belongs to?

Below 25
b) 25-40
c) Above 40

3. What is your Occupation?

a) Businessmen
b) Servicemen
c) Professional
d) Any other

4. What is your Qualification?

a) Graduation
b) Post- Graduation
c) Any other Qualification

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SECTION B
Kindly tick your Perception regarding the Goods and Service Tax.
S.N Strongly Strongly
Statements Agree Neutral Disagree
o Agree Disagree
GST is a good Tax
1          
Reform in India
GST has increased
2 the various legal          
formalities
GST has increased
3 the tax burden on          
common man
GST is very difficult
4          
to understand
GST is beneficial in
5          
long run
GST affects small
6          
business very badly

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