A PROJECT REORT ON

A STUDY OF THE IMPACT OF GST ON COMMON MAN

SUBMITTED TO GANGADHAR MEHER UNIVERSITY

PAPER-DSE-IV

UG COMMERCE, SEM-VI

SUBMITTED BY

ANKITA PRADHAN
ROLL NO-UBC20COM-O93

GUIDED BY

DR. SHYAMA CHARAN ACHARYA

PROFESSOR OF COMMERCE

SCHOOL OF COMMERCE

GANGADHAR MEHER UNIVERSITY, AMRUTA VIHAR,

SAMBALPUR

2023

1
 DECLARATION

I, ANKITA PRADHAN, a student of B.com Semester-VI, school of commerce,

Gangadhar Meher University, Amruta Vihar, Do hereby declare that the project report
entitled, “A STUDY OF THE IMPACT OF GST ON COMMOM MAN” submitted by me
under the guidance of Shyama Charan Acharya, Assistant Professor, School Of Commerce
Gangadhar Meher University, Amruta Vihar, Sambalpur, Odisha For the degree of bachelor
of commerce is my original work and other’s ideas, contents and materials used in the study
have been duly cited and acknowledged. This project report has not been published or
submitted to any other university/ institution for award of any other degree. I have taken of
utmost care and diligence to make it error free and i will be extremely sorry if any Erroneous
information being found out in my work. I will be completely responsible of such act.
However, if any errors identified the same may kindly be intimated.

SIGNATURE OF SUPERVISOR SIGNATURE OF CANDIDATE

2
 CERTIFICATE

Odisha-768004

Dr. Shyama Charan Acharya

(Professor of Commerce)

School Of Commerce,
Gangadhar Meher University,
Amruta Vihar, Sambalpur,

CERTIFICATE

This is to certify that the project report entitled, “A Study on the Impact of
GST on Common Man” has been submitted by Ankita Pradhan under my
guidance and supervision for partial fulfilment of the requirements for the
award of the degree of Bachelor of Commerce.

SIGNATURE OF SUPERVISOR HEAD OF THE DEPARTMENT

(School of commerce) (School of commerce)

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 ACKNOWLOGEMENT

I express my deep sense of my gratitude to Dr. Shyama Charan Acharya

UG department of commerce Gangadhar Meher University for his constant
encouragement, inspiration, permission, valuable advice, consistent guidance
and enlightened direction in preparing the “A STUDY ON THE IMPACT OF
GST ON COMMON MAN” I am highly thankful to my esteemed faculty.

Lastly I would like to thanks my family and friends for their constant
and encouragement to complete my dissertation work.

ANKITA PRADHAN
B.com UG-VI SEMESTER
UBC20COM-093
GANGADHAR MEHER UNIVERSITY
SAMBALPUR

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 CONTENTS

CHAPTER 1: INTRODUCTION
1.1 Introduction
1.2 Significance Of The Study
1.3 Review Of Literature
1.4 Research Gap
1.5 Objective Of The Study
1.6 Scope Of The Study
1.7 Data And Methodology

CHAPTER 2: THEORETICAL ANALYSIS ON THE SUBJECT UNDER

STUDY
2.1 GST Impact on Consumer
2.2 Good and Services under Different GST Rates

CHAPTER 3: EMPIRICAL ANALYSIS

CHAPTER 4: DATA ANALYSIS AND INTERPRETATION

CHAPTER 5: FINDINGS, SUGGESTION AND CONCLUSION

5.1 Summary of the Project Report
5.2 Major Findings of the Study
5.3 Suggestions
5.4 Policy Implication
5.5 Limitations of the Study
5.6 Conclusion

BIBLIOGRAPHY/ REFERENCES

5
CHAPTER 1:

INTRODUCTION

1.1 INTRODUCTION
GST is known as the good and service tax. The introduction of goods and service tax (GST)
as a single taxation system is considered to be a major tax reform in the country. Goods and
services tax is an indirect tax in India that has replaced a nos. of indirect taxes such as
central excise duty, additional excise duty, service tax, surcharge and cess, and central sales
tax imposed by the central govt. as well as VAT, Entertainment Tax, Entry Tax,
consumption tax imposed by state governments.

the “one nation, one tax” act was passed by parliament on march 29 2017 and came into
effect on July 1,2017. It is a multi stage, destination based tax that applied to all value
addition. it is a tax that is collected on supply of goods and services. GST was implemented
to make the country’s single domestic indirect tax system clear, detail and understandable.
the final consumer will bear only the GST charge by the last dealer in the supply chain with
setoff benefits at all previous stages . The purchase decisions of consumer are largely
influenced by their purchasing power. Tax limit of the purchasing power of consumer. The
study of consumer’s behavior is of fundamental importance to marketer as it helps them in
understanding the buying pattern of consumers and affect of taxes on purchasing behavior
is equally important for consumer.

(FIG-1)

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1.2 SIGNIFICANCE OF THE STUDY

To overcome the difficulties of multiple taxes and its cascading effect which is a burden on
common man, Indian govt. introduced new indirect tax system that is goods and service tax
(GST). GST have three kinds of taxes that is central, state and integrated GST that will help
to tackle inter-state transaction. This paper tries to find out how far people are aware about
the concept of GST and the satisfaction level of consumer of GST.

1.3 REVIEW OF LITERATURE

Girish Garg (2014)- In this study “basic concept and features of goods and service tax in
India” has found that, GST is combination of supply of various product and the provision
or various services. All the sectors of financial system have felt the impact of GST. The
major parts SMEs, EXIM, the professionals and the consumer are almost directly suffering
due to impact of GST. His opinion that improves the nations revenue collection and also
boosts our countries’ economic development. Krishnan Kumar (2017)-“A study on
consumer perception towards GST (GST)”- has stated that the consumer have not yet got
complete understanding about the basic concept of GST. So, the researcher has suggested
to make more efforts to create basic awareness about the concept of GST .if further more
suggested that there is need to provide training programme for the professional of almost
all the sectors.
Anshu Ahuja (2017)-In her study titled “perception of people towards good and
service tax” has envisaged that the GST is going to be fruitful in the process of the
reduction of tax. It is also believed that it will work as a transparency system and a little too
the researcher concluded by saying that farmers and the small businessman should
definitely provided with the tax relaxation. It will surely help in avoiding the unfavorable
impacts tend to be caused by GST on their levels of income.
Gowtham Ram Kumar (2017)-“Impact of GST on consumer spending ability in
Chennai city”. In his research work, the researcher has come to a conclusion that the
implementation of the GST affects the buyers spending ability and also it paved the way for
a steep rise in the inflation level and also in reduction in price. Finally he concluded by
suggesting to organizations that usually transfer the input tax credits to the buyer.
Manoj Kumar Agarwal (2017)-In his research paper titled “people’s perception
towards GST – an empirical study” found that, the people feel that GST has increased the
legal compliances and it will increase the tax collection of the govt. he further found that,
the GST has increased the tax burden of businessmen and suggested that efforts should be
7
made on the part of the government to ensure people have a proper understanding of the
goods and services tax implemented in India.
Chaitra, V, (2019), -Impact of GST on spending behaviors of the consumers,
International Journal of Management, the present study aims to analyze the relationship
between income and spending behavior and to measure the impact of GST on spending
behaviors. To throw light on tax rates for goods under GST to analyze the relationship
between income and spending behavior of consumers. Indian Government authorities can
reduce the GST rates applicable to essential commodities to help the consumers to spend
more on essential commodities as the impact of GST is more on essential items. Lifestyle
choices of people will determine whether their outflows will grow or decline in the coming
months with the effect of GST. Therefore, this study focuses on determining the
relationship between GST and spending behavior of the consumers. This paper will throw
light on tax rates under GST and also the impact of GST on spending behavior.
Suresh Babu, G., & Sridevi, K, 2019, Impact of GST (Goods and services tax) on
consumers. International Journal of Financial Management and Economics. This paper is
based on exploratory research technique and the data cited in this paper was collected via
secondary sources like, various websites and the literature review from journal papers,
annual reports, newspaper reports and wide collection of magazine-based articles on GST.
Different tax experts and economists have given their opinion on the long-term benefits of
goods and services tax for India. Thus, there is a need to study the impact of GST on
consumer regarding the GST in India. One thing is for certain that, it will bring down the
prices and leading to increasing the demand for goods and services which would benefit to
the consumers, but not everything will become cheaper. Tax, S, (2020), GOODS AND
SERVICES TAX AND CONSUMER BUYING BEHAVIOUR – GOWTHAM
RAMKUMAR, DR.S. CHITRA/2020.This study seeks to benefit taxation researchers and
FMCG companies. Indirect taxes critically impact their decisions and this will help to
designing successful pricing strategies to win over their competitors in the market. This
research will provide a basic framework for taxation researchers on the mechanism in
which the consumers alter their buying behavior because of the changes in the indirect
taxes. Further, FMCG companies can understand how. To analyze the demographic profile
of the respondents, to portray consumer perceptions about goods and services tax and
consumer behavior, to identify the relationship between goods and services tax and
consumer behavior and to suggest measures on designing successful business strategies.
Data was collected by primary sources with structured questionnaire. ANOVA results.

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 This study seeks to identify the relationship between GST and buying behavior of
consumers with reference to FMCG sector. GST is included in the selling price, FMCG
companies should take due care in formulating their pricing strategies.

1.4 RESEARCH GAP

There are various research gap understanding of GST (good and service tax) for the common
man. It is a complex and constantly evolving area, and there are many research gap related to
how it affects the common man. Some of the major research gaps are:-

Lack of awareness:-one of the major research gaps is the lack of awareness among the
common man about the GST. Many people are still unaware of basic concept and provision
of GST, and how it impacts their daily lives.

Understanding the effect of GST on prices: - GST affects the prices of goods and services
that are commonly used by a common man, such as food items, clothing and transportation.
This research could analyze the changes in prices after the implementation of gst and
compare with them prices before GST.

Understanding of compliance:-another research gap is the lack of understanding of

compliance requirement related to GST. Many small businesses and individual are still
struggling to comply with GST regulation, which could be due to lack of knowledge or
complicated procedure.

GST and the digital divide:-GST compliance requires digital literacy and access to
technology .therefore, there is a need to study the digital divide and how its affect the
common man’s ability to comply with GST regulation. This research could suggest measures
to bridge the digital divide and increase digital literacy among the common man .overall,
there is a need for more research on GST for the common man bridge this research gap and
improved understanding of the impact of GST on various aspect of the economy.

1.5 OBJECTIVES OF THE STUDY

To evaluate the GST on goods and services
To analyze the impact of GST on common man

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1.6 SCOPE OF STUDY
GST is having different impact on different goods and services used by consumers. As the
consumer are placed last in the supply chain and the end user of such goods and services, it is
important to know how consumers have an effect of GST.

1.7 DATA AND METHODOLOGY

This study is based exploratory research and the data cited in this paper was collected via
secondary sources like various websites and literature review from journal papers, annual
reports, newspaper report and wide collection of magazine based articles on GST. The
secondary data for the study collected from various sources like journals, websites, and
magazines.

CHAPTER 2:

THEORETICAL ANALYSIS ON THE SUBJECT UNDER STUDY

In India, the maximum population is of the middle class where people either belong to service
class or they depend on agriculture for their living. In this scenario, the most important
question is what the impact of GST on consumer? There are lot of questions in the mind of
consumers in these days such as, is there anything new for him or it’s like an old material in a
new package? Is there any tax relaxation for him in new tax provision or it will increase the
prices of goods and services for him?

As soon as the GST came into effect, it would not be wrong to say that, this revolutionary
move had impacted the lives of many. In fact, people are still struggling to understand what
actually GST is all about. As & when a new reform or bill comes & a new law is imposed, it
surely leaves its impact especially on the common man. It is ultimately the common man who
is directly or indirectly affected by the implementation of any new tax. GST will benefit them
but for the common man it is not that simple.

This is because GST will have different good and services used by the consumers. One thing
is for certain that, it will bring down prices leading to increasing demand of goods and
services which would benefit individual companies, but not everything will become cheaper.
so, it is important to view the effect of GST from consumers stand point whose focus is
primarily in pricing of various consumer product and services in GST.

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 2.1 GST IMPACT ON CONSUMER

GST impact on consumers

Table 1: List Of Daily Need Items

DAILY NEED ITEMS GST RATE

%
Hair Oil 18%
Tooth Paste 18%
Soaps 18%
Spectacles Lens 12%
Steel Utensils 5%
Napkins 12%
Tooth Powder 12%
Led Light 12%
Brooms Sticks 5%
Milk Beverages 12%
Mineral Water 18%
Rusk &Toasted Bread 5%

Table 2: List of Dearer Goods

DEARER GOODS GST RATE

%
Bread, butter, ghee& cheese 12%
Agarbatti 12%
Jam and jellies 18%
chocolates 28%
Pastries and cakes 18%
Instant coffee 28%
Sanitary napkins 12%
Razors 28%
Shaving cream &hair cream 28%

Table 3: list of consumers durable

CONSUMERS DURABLES GST RATE

%
AC 28%
Washing machine 28%
Coolers 28%
Refrigerators 28%
Cell phones 12%

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 Source: The Economic Times, July 1st, 2018(table 1, 2, 3 are followed)

Table 4: list of utility

UTILITY BILLS GST RATE %

Telecoms 18%
Insurance 18%
Coaching class 18%
Jewellery 3%
Leather bags 28%
Wrist watches 28%
furniture 28%

Table 5: list of leisure

LEISURE GST RATE %

Movie tickets (>Rs 100) 28%
5 star restaurants 28%
A/C alcohols serving restaurants 18%
Air tickets (economy) 5%
Average room tariff(Rs 2.5k-7.5k) 18%
Average room tariff(>Rs7.5k) 28%

Source: The Economic Times, July 1st, 2018 (table 4, 5 are followed)

2.2 GOODS AND SERVICES UNDER DIFFERENT GST RATES

GST rates have been divided into 5 parts - 0% (exempted), 5%, 12%, 18% & 28%.

The goods and services which are exempted from GST/Zero tax in GST:
The items that are exempted from GST / Zero GST tax are like Jute, fresh meat, fish
chicken, eggs, milk, butter milk, curd, natural honey, fresh fruits and vegetables, flour, besan,
bread, Prasad, salt, bindi, Sindoor, stamps, judicial papers, printed books, newspapers,
bangles, handloom, Bones and horn cores, bone grist, bone meal, etc.; hoof meal, horn meal,
Cereal grains hulled, palmyra jaggery, salt – all types, kajal, children's' picture, drawing or
coloring books, human hair. Hotels and lodges with tariff below Rs 1,000 service has been
exempted under GST.
The Goods and Services which are charged at 5% GST
Items that have 5% GST are fish fillet, apparel below Rs 1000, packaged food items, foot
wear below Rs 500, cream, skimmed milk powder, branded paneer, frozen vegetables, coffee,
tea, spices, pizza bread, rusk, kerosene, coal, medicines, Cashew nut, Ice and snow, bio gas,

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insulin, agarbatti, kites, postage or revenue stamps, stamp-post marks, first-day covers.
Railways, air transport, small restaurants also will be under the 5% category because their
main input is petroleum, which is outside GST ambit.

The Goods and Services which are charged at 12% GST

Apparel above Rs 1000, frozen meat products, butter, cheese, ghee, dry fruits in packaged
form, animal fat, sausage, fruit juices, bhutia, namkeen, ayurvedic medicines, tooth powder,
color books, picture books, umbrella, sewing machine, cell phones, ketchup, diagnostic kits,
exercise books and note books, spoons/forks, skimmers, cake servers, fish knives, tongs,
spectacles, corrective, playing cards. Services like State run lotteries, non-AC hotels, business
class air ticket, fertilizers, work Contracts would also fall under 12% GST.

The Goods and Services which are charged at 18% GST Majority of the items fall under
the GST slab rates. Footwear costing more than Rs 500, bides patta, biscuits, flavored refined
sugar, pasta, cornflakes, pastries and cakes, preserved vegetables, jams, sauces, soups, ice
cream, instant food mixes, mineral water, tissues, envelopes, tampons, note books, steel
products, printed circuits, camera, speakers and monitors, kajal pencil sticks, headgear and
parts thereof, aluminum foil, weighing machinery other than electric or electronic. Under
services, A/C hotels that serve liquor, telecom services, IT services, branded garments and
financial services would attract 18% GST.

The Goods and Services which are charged at 28% GST Bides, chewing gum, molasses,
chocolate not containing cocoa, waffles and wafers coated with chocolates, pan masalas,
aerated water, paint, deodorants, shaving creams, after shave lotions, hair shampoo, dye,
sunscreen, wallpaper, ceramic tiles, water heater, dishwasher, weighing machine, washing
machine, ATM, vending machines, vacuum cleaner, shavers, hair clippers, automobiles,
motorcycles, aircraft for personal use etc., would attract with 28% GST rates.

Goods and services under different GST rates (FIG.2)

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 Items exempted under GST (FIG.3)

CHAPTER 3: EMPIRICAL ANALYSIS

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Goods and service tax (GST) is value added tax levied on most goods and services in India.
The GST has replaced a complex system of multiple indirect taxes levied by the central and
state govt. the impact of GST on common man in India has been a topic of much debate since
its introduction. Several empirical analysis have been conducted to analyze the impact of
GST on common man. Some of them are following:-

Impact on prices- GST has led to reduction in prices of certain goods and services, while it
has increased the prices of some others. For instance, the prices of essential items such as
food grain, milk and health care services have not increase significantly. However, the prices
of luxury good such as cars and high-end electronics have increased due to higher tax rate
under the gst regime.

Impact on inflation- the impact of GST on inflation has been mixed. Some studies suggest
that GST has led to a temporary increase in inflation due to the initial disruption caused by
the transition to the new tax regime. However, in the long run, GST is expected to have a
positive impact on inflation as its simplifies the tax system and reduces the cascading effect
of taxes.

Impact on the economy- GST is expected to have a positive impact on the Indian economy in
the long run. It is expected to improve tax compliance, increase govt. revenue, and simplify
the tax system. This, in turn, is expected to boost investment productivity, and economic
growth.

Impact on small businesses- GST has had a significant impact on small businesses, especially
those that operate in the unorganized sector. The compliance requirement under GST has
increased the burden on small businesses, leading to a decline in profit.

In conclusion, the impact of GST on common man in India has been mixed. While it has led
to a reduction in prices of certain essential good and services, it has also increase the burden
of small businesses. However, in the long run, GST is expected to have a positive impact on
the Indian economy and benefit to common man.

CHAPTER 4:

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 DATA ANALYSIS AND INTERPRETATION

A) DEMOGRAPHIC INFORMATION ABOUT THE RESPONDENTS.

The study analyzed the various demographic factors of the respondent such as gender,
age, income, educational qualification and profession.

GENDER

31.8 FEMALE
MALE

68.2

Gender of the respondent

AGE

18.2 20-40
40-60
ABOVE 60

77.3

Age of the respondent

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 EDUCATIONAL QUALIFICATION

22.7
UNDER GRADUATE
POST GRADUATE
DOCTRATE
9.1
68.2

Educational qualification of the respondent

PROFESSION
GOVERNMENT EM-
18.2 22.7 PLOYEES
STUDENTS
OTHERS

59.1

Profession of the respondent

MONTHLY INCOME

13.6 RS 20000-30000
RS 30000-50000
RS 50000-100000
18.2
50 NO INCOME

18.2

Monthly income of the respondent

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 B) CONSUMER AWARNESS ON THE CONCEPT OF GST

Q.1 DO YOU THINK YOU PAY TAX WHEN YOU BUY A GOOD FOR
SERVICE ?
Out of 23 responses.

4.5
9.1

YES
NO
MAY BE

86.4

INTERPRETATION-this shows that about 80% of the respondent are aware that
they are paying tax while they buy a good or service. Remaining 20% are paying tax
without having the knowledge that they pay tax while they buy a good or service.
Q.2 GST IS ________ BASED TAX?
Out of 23 responses.

21.7

DESTINATION
BASED TAX
8.7 ORIGIN BASED
TAX
NO IDEA
69.6

INTERPRETATION: 69.6% of the respondents are aware that GST is destination

based tax. 25% of the respondent thinks that GST is a origin based tax and the rest are
not aware about the nature of GST. This shows that most of the consumers don’t
know about which state is collecting the GST

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 Q.3 GST IS ______________ TAX? Out of 23 responses.

8.7 8.7

DIRECT TAX
INDIRECT TAX
GOODS TAX
SERVICES TAX

78.3

INTERPRETATION: 78.3 respondents are aware about that GST is a indirect

tax.8.7 are misconceived it as a direct tax. and the rest respondent have mentioned it
as goods tax. This shows that consumers are still confused about the nature of GST.

Q.4 GST HAS SUBSUMED OR REPLACED WHICH OF THE FOLLOWING

OLD TAXES? 23 RESPONSES

8.7
ENTRY TAX
26.1 CENTRAL EXCISE DUTY
17.4 VAT
SERVICE TAX
LUXURY TAX
CUSTOM DUTY
CENTRAL SALES TAX

34.8

INTERPRETATION: 34.8 respondents are aware that GST has replace the service
tax. About 26.1 are ware that vat is replaced by GST. So, it can be seen that most of
the consumer are not very clear about the taxes which replaced by GST

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 Q.5 WHETHER MRP (MAXIMMUM RETAIL PRICE) OF GOOD IS
INCLUSIVE OF ALL TAXES INCLUDING GST? 23 responses

39.1
YES
47.8 NO
MAY BE

13

INTERPRETATION: 47.8 % of the respondents are aware of the mrp is inclusive of

GST. 13% of the respondent is not aware of this fact. This lack of awareness will be
misused by the retailer by charging GST upon MRP at a price more than MRP.

Q.6: DO YOU KNOW THERE ARE DIFFERENT RATE OF GST FOR

DIFFERENT GOODS AND SERVICES? 23 responses

39.1
YES
47.8 NO
MAY BE

13

INTERPRETATION: 47.8% of the respondent are aware about the rate of GST for
different goods and services. 13 are of the respondent are not aware about the rate of GST for
different goods and services.

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Q. 7 SELECT THE GOODS WHICH YOU THINK ARE EXEMPTED
FROM GST? 23 responses

ALL OF THE BELOW

VEGETABLES OIL
SUGAR
DOMESTIC LPG
EGG Series1
RICE
UNBRANDED WHEAT/MAIDA
MILK

0 10 20 30 40 50 60 70

INTERPRETATION: this shows that most of the consumers are aware about the
exemption.

Q.8 SELECTS THE GOODS WHICH YOU THINK ARE EXEMPTED

FROM GST? 23 responses

RESTAURANT SERVICES
CHARITABLE SERVICES
JUDICIAL SERVICES
GOVT. SERVICES EXCEPT
POSTAL & OTHERS

0 5 10 15 20 25 30 35 40

INTERPRETATION: most of the respondents are not aware about the exemption in the
above graph.

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Q.9 DO YOU THINK TAX BURDEN REDUCED DUE TO THE
IMPLEMENTATION OF A SINGLE TAX GST? 23 responses

39.1
YES
47.8 NO
MAY BE

13

INTERPRETATION: 47.8% of the respondents accept that an overall tax on a good has
been reduce after GST 39.1 %of the respondents don’t accept the same.

Q.10 DO YOU THINK THE SUPPLIER ARE NOT PASSING THE

BENEFIT OF GST TO THE END CUSTOMER? 23 responses

39.1
YES
47.8 NO
MAY BE

13

INTERPRETATION: 47.8% of the respondents fell that supplier are not

passing benefit to the consumer. 13 % of the respondents are not aware of it.

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CHAPTER 5:

FINDING, SUGGESTION AND CONCLUSION

5.1 SUMMARY OF THE PROJECT REPORT

The Goods and Services Tax (GST) was implemented with the goal of making One Nation,
One Tax a reality in India. It is a ground-breaking reform in the Indian indirect tax system.
GST was implemented with effect from 1st July, 2017 by Shri. Narendra Modi, Hon'ble
Prime Minister of India. Unlike Value Added Tax and Service Tax, GST is a tax on the
supply of goods and services. It has subsumed various indirect taxes like VAT, Sales Tax,
Service Tax etc., which were prevailing before its implementation. There are four types of
GST based on the type of transaction and the authority levying it viz., Central Goods and
Services Tax (CGST), State Goods and Services Tax (SGST), Union Territory Goods and
Services Tax (UTGST) and Integrated Goods and Services Tax (ITGST). GST was imposed
as a Good and Simple Tax but in reality there were a lot of confusions among consumers
regarding the implementation of GST in India. This paper tries to find out how far people are
aware about the concept of GST and the satisfaction level of consumers on GST and its
impacts by carrying out an empirical research. This paper finally gives suggestions to the
government for increasing the awareness among consumers on GST as a concept and its
positive impacts.

5.2 MAJOR FINDINGS OF THE STUDY

About three-fourth of the consumers only have the knowledge that they pay tax while they
buy a good or service. The remaining consumers are unaware of the fact that they pay a tax
while buying a good.

The consumers are unaware of the nature of GST that is whether it is a direct or an indirect
tax or if it is a destination based or origin-based tax. The level of awareness of the GST has
not reached a satisfactory level till date. Most of the respondents were unclear on the rates of
GST on different goods and services.

The study found that most of the people have a neutral opinion regarding GST. Most of the
people still don’t have proper knowledge about MRP is inclusive of GST

It is due to the lack of information on GST; the respondent had a high negative perception of
the impact of implementation of GST.

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5.3 SUGGESTIONS

Providing adequate & relevant fundamentals information of GST is necessary for a better
understanding of the principle of GST. This can be done by organizing seminar, group
discussions, among the educated persons like legal professionals students, community of
people, etc.

Organize GST programme and make courses must be provided by the government various
institute and companies to educate the people all around.

Government can telecast advertisement in such a way that it creates awareness on the concept
of GST for the welfare of public which may reach to the most of unaware people.

Creating short film contest regarding awareness of GST in social media and by telecasting
short films or ads regarding Awareness of GST among public.

5.4 POLICY IMPLICATIONS

The goods and service tax (GST) is a tax system that has policy implication for the common
man in India are following:

Increase in price-GST has resulted in some increase in prices of goods and services, which
can impact the common man’s budget.

Increase in tax compliance-GST has simplified the tax system and made it easier for tax
payer to comply with tax laws. The common man can benefit from this by avoiding the
multiple taxes.

Boost to organize –GST has encouraged business to move from the informed sector to the
formal sector, as compliance with GST regulations requires proper record-keeping and
accounting. This can benefit the common man by creating more job opportunities in the
formal sector and providing better working condition.

In conclusion, there are may be some initial challenges in adjusting the new tax system. The
implementation of GST has had significant policy implication for the common man with
positive and negative impacts.

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5.5 LIMITATION OF THE STUDY
The study uses only secondary data .therefore, limitation of the sources apply to this study.

The study deals with data made available and therefore it may not judge the entire scenario.

Data given by the primary data (questionnaire) may not be correct because it fills by my
friends, family, and the data collected from this questionnaire may be miss leading to some
reader.

5.6 CONCLUSION

GST is one of the revolutionary reforms which had a great impact on India and its taxation
system. Its implementation had diverse effects based on the type of goods and services had
become cheaper and few goods and services became more costly after the implementation.
The implementation of goods and services tax (GST) is a long term strategic plan
incorporated by the government to ease the indirect taxation in India.

Thus, GST would be the biggest tax reform that would cover many taxes in a single blanket
tax system. there is no doubt that GST would benefit everyone in the economy, but common
people will be benefited after the benefit being taken by the business houses from outbreak of
the GST. Let us hope GST leaves a positive impact and helps to boost of economy and
country’s growth and development.

25
BIBLIOGRAPHY/ REFERENCES

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Rayka} {Subject: Commerce/Account} Vol.5, Issue: 11, November:2017.

International Journal of Innovative Research In Science, Engineering And Technology

(Ijirset) Vol.10, Issue 11, November 2021

International Journal Of Legal Science And Innovation Vol.4 Issue 1

Kaav International Journal Of Economics, Commerce And Business Management.

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