A

PROJECT
REPORT ON
“THE IMPACT OF GST ON FINANCIAL MARKET”
UNDER THE GUIDANCE OF

Prof. Sarika Jagtap

SUBMITTED BY

Ms. Nanekar Vaishnavi Naresh

IN PARTIAL FULFILMENT OF

“BACHELOR OF BUSINESS ADMINISTRATION”

(BBA)

SUBMITTED TO SAVITRIBAI PHULE UNIVERSITY OF PUNE

THROUGH

RAJMATA JIJAU SHIKSHAN PRASARAK MANDAL’S

ARTS, COMMERCE AND SCIENCE
COLLEGE, LANDEWADI, BHOSARI, PUNE-39
ACADEMIC YEAR 2024-25
 RAJMATA JIJAU SHIKSHAN PRASARAK MANDAL’S
Art’s,Commerce& Science College
(Id.-PU/PN/ACS/161/2001) (Jr.Index No.-J.11.16.026)
(Affiliated to University of Pune and approved by S.E.,H.E.,Govt. of Maharashtra)
Opp. Amphenol Company, Near DattaMandir,Landewadi,Bhosari,Pune -411039.
Tel : 020-27124910 Fax: 020-27124338 e-mail: [email protected]
Web:www.rjspm.org
Hon.Mr.VilasraoLande (M.L.A.) Mr.Sudhir Mungase Mr.Ajitbhau Gavhane
President Secretary Treasurer

CERTIFICATE

This is to certify that the project report titled is to “THE IMPACT OF GST ON
FINANCIAL MARKET” is prepared by Ms. Nanekar Vaishnavi Naresh, student of
Bachelor of Business Administration has successfully and satisfactory carried out
project work.
The project is submitted in partial fulfillment of BBA in the academic year
2024 -2025 as per rules of the Savitribai Phule Pune University.

Project Guide Principal

Place – Pune
Date –

Internal Examiner External Examiner

 ACKNOWLEDGEMENT

I am extremely grateful to Rajmata Jijau Shikshan Prasark Mandal’s ACS college for
having prescribed this subject work as a part of academic requirements in the
Bachelor of Business Administration (T.Y.BBA) course. I wish to express a special
thanks to our project guide “Prof. sarika jagtap”,without whose guidance that project
may not have taken shape.

I would like to thank all those who have directly or indirectly helped us towards the
execution of this project with full sincerity. Sincere thanks to all.
 DECLARATION

I Ms. Nanekar Vaishnavi Naresh student of BBA -3 , hereby declare that the
project work titled “THE IMPACT OF GST ON FINANCIAL MARKET” which
has been submitted to Savitribai Phule Pune University is an original work of the
undersigned and has not been reproduced from any other source. I further declare that
the material obtained from other sources has been duly acknowledged in the report.

Date: Name Of Student

Place: Nanekar Vaishnavi Naresh
 INDEX

SR. NO.
CONTENTS
1.
1.1. INTRODUCTION TO THE STUDY
1.2. OBJECTIVES OF THE STUDY
1.3. TYPES OF TAXES UNDER GST
1.4. NEEDS AND IMPORTANCE OF GST
1.5. FEATURES
1.6. IMPACT OF GST ON VARIOUS SECTOR

2. 2. RESEARCH METHODOLOGY
2.1. INTRODUCTION
2.2 OBJECTIVE OF STUDY
2.3. LIMITATION OF STUDY
2.4. HYPOTHESIS OF THE STUDY

3. DATA ANALYSIS, INTERPRETATION

3.
3.1. ANALYSIS BASED ON PRIMARY DATA
3.2. FINDINGS
3.3. ANALYSIS BASED ON SECONDARY DATA

4.
4. CONCLUSIONS AND SUGGESTIONS
4.1. CONCLUSION
4.2. FINDINGS
4.3. SUGGESTION
5. 5. BIBLIOGRAPHY
1.1 INTRODUCTION TO THE STUDY:

GST-
Goods and service tax (GST) is an indirect tax which was introduced in India on 1st
July 2017 and was applicable throughout India which replaced multiple cascading
taxes levied by the central and state governments. It was introduced as the constitution
(One hundred and first Amendment) Act 2017, following the passage of constitution
122ndAmendment Bill. The GST is governed by a GST council and its chairman is the
Finance Minister of India. GST was initially proposed to replace a slew of indirect
taxes with a unified tax and was therefore set to dramatically reshape the country’s 2-
billion-dollar economy. The rate of GST in India is between double to four times that
levied in other countries like Singapore.

The GST combines a number of Central and State taxes listed in Table 1. In some
ways, the reform is a unique experiment in both Central and State governments giving
up their tax autonomy in favors of harmonization of the domestic consumption tax
system. The GST comprises of a Central GST (CGST), State GST (SGST) and Inter-
state GST (IGST). The tax is designed to be destination based and the revenue from
inter-state transactions is put in the IGST account and eventually distributed according
to destination through a clearing house mechanism. The Constitution was amended to
create GST as a joint tax of the Centre and States (Article 269 A), to be administered
by a new Constitutional body – the GST Council chaired by the Union Finance
Minister and with Finance Ministers or other ministers nominated by each of the States
and Union Territories with legislatures as Members.
The GST is the proposed Indirect tax system which is levied on the manufacture, sale
and the consumption of goods and services. It will replace all the indirect tax systems
such as sales tax and value added tax. The main purpose of GST is to bring about the
single uniform system of taxation in the manufacture, sale and the consumption of
goods and services in India. The GST is said to reduce the level of Tax evasion and
the corruption and it also reduces the tax burden of the public.
 1.2 OBJECTIVES OF THE STUDY

❖ To study About the concept of GST.

❖ To study about the need and the Importance of the Goods and Service Tax

❖ To study about the impact of GST on Various sectors in Indian economy.

❖ To study the reduction of the Tax evasion and Corruption.

❖ To study how a single system of taxation can absorb various Indirect taxes.

❖ To study how the prices of goods removed by having an uniform system of taxation over the

country.
 1.3 TYPES OF TAXES UNDER GST

1.3.1.Central Goods and Services Tax (CGST):

It is the GST levied on the ‘Intra -State’ supply of goods or services by the
Centre. CGST stands for Central Goods and Services tax. It replaced all the previous
taxes under the Central Government. Some examples of such taxes are central
surcharges & cess and central excise duty. CGST is levied on the movement of goods
within a state.

1.3.2State Goods and Services Tax (SGST):

It is the GST Levied on the ‘Intra -State’ supply of goods or services by the
State. The GST collected by the State Government is known as SGST, which is
applicable on transactions within its geographical boundaries. Under the new tax
regime, previous state taxes like entertainment tax, VAT, and State Sales tax became
non - functional.

1.3.2.Union Territory Goods and Services Tax (UTGST):

It is the GST levied on the supply of goods and services that takes place in any
of the Union Territories of India. UTGST stands for Union Territory Goods and
Services tax, applicable to the transaction of goods and services in the Union Territories.
It is levied on the supply of products in Andaman and Nicobar Islands, Lakshadweep,
Daman Diu, Chandigarh, and Dadra and Nagar Haveli.

1.3.3.Integrated Goods and Services Tax (IGST):

It is the GST levied on the ‘Inter-State’ supply of goods or services and is

collected by the Centre. IGST is the sum total of CGST and SGST/UTGST and is levied
by center on all interstate supplies. IGST stands for Integrated Goods and Services tax.
It is generally applicable during interstate transactions, i.e., transactions between two
different states. Among the types of GST, it’s levied on supplies of products and
services between two states and even on exports and imports.
 STRUCTURE OF GST

GST Council has specified multi-tier tax structure of 0%, 5%, 12%, 18% and 28% as
applicable to different categories of goods and services. The latest category list is as
under:

(1) No Tax Category

It includes goods like sanitary napkin, deities made of stone, raw material used in
rooms, and fortified milk, fresh fruits & vegetables. It also includes services like hotels
and lodges who carry a tariff below Rs 1000.

(2) 5% Tax Category

It includes goods like skimmed milk powder, fish fillet, frozen vegetables, tea, coffee,
spices, pizza bread, kerosene, coal, fertilizers, electric vehicles and so on. Services like
railways and airways are also included.

(3) 12% GST Category

It includes good like frozen meat products, butter, cheese, ghee, pickles, sausages &
fruit juices, jewelry box, ayurvedic & homeopathy medicines, wooden frames for
painting and photographs. Business Class air tickets and movie tickets below Rs 100
also fall in this category.

(4) 18% GST Category

Preserved vegetables, flavored refined sugar, cornflakes, pasta, past ries and cakes,
detergents are some notable items in this category. It also includes services of
restaurants located inside hotels with tariffs between Rs 2500 and Rs 7500 and above,
outdoor catering & movie tickets priced above Rs 100.

(5) 28% GST Category

This includes over 200 goods, mainly sunscreen, pan masala, automobiles, dishwasher,
vending machines. Services like five-star hotels with tariff exceeding Rs 7500.Imports
of Goods and Services will be treated as inter-state supplies and IGST will be levied
on import of goods and services into the country. The incidence of tax will follow the
destination principle and the tax revenue in case of SGST will accrue to the State where
the imported goods and services are consumed.
1.4 NEEDS AND IMPORTANCE OF GST:

 The study helps the companies to understand the tax burden on consumers
which affects the sales.
 The study will also help the companies to understand the experience and
expectation of the consumers related to the price.

 GST is aimed at reducing corruption and sales without receipts.

 GST reduces the need for small companies to comply with excise, services
tax and VAT.

 The possibility of tax evasion is minimized completely with GST coming into action.

 To bring about the uniformity in the System of Indirect taxation. To remove the
cascading effects of Tax.
 To bring about the economic integration. Generally, the Taxes are imposed
at various rates among various states in India. So there is a huge loss of
revenue to the central as well as state government. Through GST a uniform
tax rate is followed all over the country and so that there will no such loss
of revenue.

 Reduces complexities and increases more number of economic transactions.

 The he main aim of GST is to bring about the single tax system which will
reduce the cost of production for the manufacturers, So that it will be a big
boost for those producers who made their products at lower cost and involves
in international trade that is exports.
 The Single Tax system, the tax burden for starting industrial units will be
reduced; As a result, when more industries were created it will ultimately
result on more employment.

 Through GST the government receives more amount of Tax revenue which will
be utilized for the services to the public

 As there is more transparency in the system of GST and since it is a system of

single taxation, the chances of corruption will be very low.

 The Country is said to have one market economy, as through GST the
number of numerous markets divided by various tax will be avoided. To
avoid the Tax burden of the common consumers and the public by making
it into a single tax system.
 1.5. FEATURES:
 GST is applicable on ‘supply’ of goods or services as against the present concept on
the manufacture of goods or on sale of goods or on provision of services.

 GST is based on the principle of destination-based consumption taxation as against

the present principle of origin-based taxation.

 It is a dual GST with the Centre and the States simultaneously levying tax on a
common base. GST to be levied by the Centre would be called Central GST(CGST)
and that to be levied by the States would be called State GST (SGST).

 CGST, SGST & IGST would be levied at rates to be mutually agreed upon by the
Centre and the States. The rates would be notified on the recommendation of the GST
Council.

 Tobacco and tobacco products would be subject to GST. In addition, the Centre
would have the power to levy Central Excise duty on these products.

 Tax Can be deposited by internet banking, NEFT / RTGS, debit / credit card and
over the counter.

 Concept of TDS for certain specified categories.

 Concept of TCS for E-Commerce Companies.
 Refund to be granted within 60 days.
 Provisional release of 90% refund to exporters within 7 days.

1.6. IMAPACT OF GST ON VARIOUS SECTOR

The GST is said to have a positive impact on the economy as a whole. But when it
comes to sectoral-wise classification, the GST have both positive as well as negative
impact on each of the sectors. Here are some sectors given and its GST is given below.

1. Technology (Information technology and ITeS)

The GST system of indirect taxation has made the duty on the manufacturing goods
from 14% to 18-20%. As a result, the prices of the software products will be at high
which will give either a neutral or slightly negative impact on the Technology Sector
as a whole. But they will be benefited through the reduction of tax and benefits of other
industries and can somewhat mitigate it.

2. Pharmaceuticals

Presently, the Pharmacy companies are paying taxes around 15-20%. Since, there is
 no clear picture of tax treatment for Pharmacy if it is less than 15% it would be a
positive impact on the Sector but if it is above 15%then it will cause some slight
negative impact.

3. Financial Services

The Financial services such as banking, Stock Trading firms are currently paying
14.5% as VAT which is likely to be increased to 18 to 22% in the near future under
the GST regime. And the services are likely to be costlier.

4. Food sector:
This year Indian restaurant sector will create direct employment for 5.8 million people
and contribute a whooping INR 22,400 crores by way of taxes to the Indian economy.

Before GST implementation the hospitality and restaurant industry were overwhelmed
by multiple taxes (Service tax, VAT and luxury tax). In Food and

beverages bills, service tax is applied on 40% of the bill or 5.8% apart from VAT.

With the growing organized food services industry and coming up of new food
ordering and delivery start-ups, the market is worth 2.5 Lakh crore and would
contribute significantly to the revenues of the country.

ISSUES THAT ARE BEEN FACED IN THE GST

SCENARIO KEY ISSUES:
1.HIGHER COMPLIANCE COSTS:

With the introduction of the Model GST Law, the same casts an obligation on every
electronic commerce operator for the collection of tax at source and deposit applicable
GST when the payments are to be made to the suppliers. These scenarios will surly
increase the responsibility and the burden on electronic commerce operators owing to
their large vendor base

2. Availability of Credit only when Tax is paid:

The Credit can only be claimed on taxes that have to be paid to the credit of the
government.
 3.Discounts on Post-Supply:
Discounts on after effective supply are included in the 'transaction value' only in cases
where such post-sale discount, as per agreement, is known at or before the time of
supply, and specifically linked to relevant invoices. Under the VAT Regime, VAT
authorities are focused on insisting to include these discounts in the assessable value
and e-commerce retailers in general, so as to avoid disputes on the charge VAT on

non-discounted price.

With the introduction of the regulations requirements, the online seller community has
compelled the same to embrace GST regime. Scroll down to check the compliance:

 No threshold for GST registration

 No Benefit under Composition Scheme
 Tax Collection at Source by Marketplace Operator
 The government has taken steps to simplify the tax constitution by the introduction
of GST & promoting trade followed by keeping a check on tax evasion. Scroll to
know how Implementation of GST will impact E-commerce marketplaces:
 Standard Pricing with Standard taxesBlocked Working Capital issue faced by Online
marketplaces
 Separating out Unregistered merchants from e-commerce
 Compliance issue in case of returns and refunds

PROBLEMS IN IMPLEMENTING GST

There are certain challenges and problems in implementing the GST in India. Some
of them are as follows.

1. There is no such clear picture about the GST both to the government and to the general
public.

2. There is no cooperation between the Central government and the state government in
implementing the GST. Even though, if implemented the levy of Tax remains on the
part of the state.

3. The Revenue Neutral Rate (RNR) is the key factor responsible for the effective
implementation of GST. But under GST, we could not say that the revenue remains
same as that of the current system of taxation.
4. Even though the government said that they will pay the loss of revenue to the state
government, it will be again imposed on the general people in some other forms.

5. It involves massive cost on the training of the staff of the Taxation department.

6. Lack of political support. The Bill must be passed in the Rajya Sabha for its successful
implementation.
 2.RESEARCH METHODOLGY
SAMPLING METHOD 1.SIMPLE RANDOM SAMPLING
METHOD
2.CONVENIENT
SAMPLING METHOD
SAMPLE SIZE 30

METHODS OF DATA COLLECTION 1.PRIMARY

2. SECONDARY
PRIMARY DATA 1.QUESTIONAIRE
2.OBSERVATION

SECONDARY DATA 1.JOURNALS

2.MAGAZINES
3.ARTICLES
METHODS OF DATA ANALYSIS PIE CHARTS & GRAPHS

2.1. INTRODUCTION :

The study focused on comprehensive study of secondary data collected from

various books, National and International journals, government reports published
from various website which focused on various aspects of Goods and Service tax.
The model GST law also provides for including certain transactions made without
consideration within the scope of supply.

The present research is exploratory in nature. Since GST is a new phenomenon in

India, there are hardly any studies in this area. Especially there is a huge gap of
empirical and behavior studies on GST in India. The study tries to find the
significance of popular perception regarding GST.

It is the design that one simply describes something such as demographic

characteristics of people. The descriptive study typically concerned with
determining frequency with which something occurs or how two variables very
together.

The period cover in the present study is from 2016-17 to 2020-21 i.e. the
implementation of demonetization and GST and after. This paper is based on
secondary data. The Study is completely descriptive and analytical based on
Journals articles, News Papers, RBI reports, research papers, a review paper is
used. The present paper aims to identify and discuss a no of critical issues related
to demonetization and GST. This paper tries to find out the cost and benefits bear
by the Indian economy due to the twin blow of Demonetization and GST
implementation as well. The paper also tries to find out the expected rate of growth
of the economy after the Demonetization and GST. Finally, the study tries to
conclude that how it would be disrupted and benefits the economy in the long run.

The demonetization and GST were the two powerful strokes taken by the
government of India to solve the emerging issue which persisted in the country.
Both Demonetization and GST can be regarded as game-changers of India's
Financial Market. The motive behind the Demonetization is to remove corruption
as well as improve the cashless payment system in the country. On the other hand,
the main motive behind the introduction of GST is to remove the cascading effect
of tax on the cost of goods and services. It was believed that demonetization and
GST would change the future path of the Indian economy.

All research in a major GST only focuses on the process of law and the impact
on the general consumer market in primary India. However, in the current study,
the impact of the GST on the industry had occurred. This study is descriptive in
nature and it used the exploratory technique. The data for the study were gathered
from the secondary sources such as journals, articles published online and offline
on various newspapers and websites. Present tax system allows is diversity of
taxes, the introduction of GST is likely to unique it. Many areas of Services which
are untaxed. After the introduction of GST they will also get covered.

2.2.OBJECTIVE OF STUDY
 To understand the impact on both Primary as well as Secondary market. To
understand the impact on various sectors of market.
 To understand the benefits as well as the problems faced by both small
scale and large organizations.
 To compare the expected impact with the actual impact.
 To study the short term and long-term impact of GST on Indian financial markets. To
study the challenges and benefits of implementation of GST.

 GST, one of the main ones, eliminate all taxes (VAT), income tax and VAT .
GST has replaced multiple indirect taxes, which were existing under the previous
tax regime. The advantage of having one single tax means every state follows the
same rate for a particular product or service. Tax administration is easier with the
Central Government deciding the rates and policies.

2.3.LIMITATION OF STUDY:

Although the study was carried out with extreme enthusiasm and careful planning
there are several limitations which handicapped the research viz.

TIME CONSTRAINTS: The time stipulated for the project to be completed is

less and thus there are chances that some information might have been left out,
however due care is taken to include all the relevant information needed.

SAMPLE SIZE: Due to time constraints the sample size was relatively small and
would definitely have been more representative if I had collected information
from more respondents

ACCURACY: It is difficult to know if all the respondents gave accurate

information; some respondents tend to give misleading information.

VALIDITY : GST rates may vary in future and the policies will keep changing
so data does not provide foresee of what the impact will be on the financial
markets after the changes

Every scientific study has certain limitations and the present study is no more exception.
These are:

❖ The sample size was small and cannot be applied to the entire population.
❖ GST is new launched tax system so some complications are faced by the
peoples.

❖ The sample size is very small compared to the total population of the region.

❖ The study was conducted with the basic assumption that the information
given by the respondent is factual and represents their true feelings and
behavior.

❖ It is very difficult to check the accuracy of the information provided.

❖ it is difficult to draw realistic conclusions based on the survey
 2.4. HYPOTHESIS OF THE STUDY

 NULL HYPOTHESIS
There is no significant difference between the abnormal returns of stocks
between pre and post GST in India.

 ALTERNATIVE HYPOTHESIS
There is significant difference between the abnormal returns of stocks between
pre and post GST in India.

NEED OF THE STUDY

GST is the concept of bringing about the uniformity in the taxation system of a
country since, it has-been in operation on many countries this is somewhat new
to India. So, this enables a person to clearly understand the concept of GST and
its impact on the price of various products. This study focus is to make a common
man to have a basic idea about the Goods and Service Tax.

DIRECTION OF FUTURE RESEARCH

All the above Studies in GST have said only about the legal procedures and their
General impact on the Indian Consumer market as a whole. But in the Current
study, the GST’s impact on certain selected industries has been shown in specific.
This study provides way for the future researchers, students and academicians to
have an understanding of the concept of the GST and through this any researcher
can identify, analyze the changes in the GST future rates with that of the present
rates.

ABSTRACT:

GST that is Goods and Service Tax is the latest kind of Indirect Tax which is
proposed to be in force from 1st July, 2017 which is already in force on many
countries around the world and they all were considering it as their sales Tax
system. The GST will be the levied on the manufacture, sale and the consumption
of goods and services in India. It is said to be the biggest form of reform in the
indirect taxation aspect ever since 1947.The council of the GST will be headed by
the Union Finance Minister that is currently Arun Jaitley
 3.DATA ANALYSIS AND INTERPTITETION:

The GST is mainly implemented to remove all other taxes like VAT (Value -
Added Tax), Excise duty and Sales Tax. The Tax will be very much useful for the
consumers in the aspects of payment of Taxes that is, we all have to pay separate
tax at state level and at central level for the goods and services purchased and after
the GST there will be only one tax to be paid for the goods and services consumed
which is the Goods and Services Tax (GST). This paper brings out about the
overview of the concepts of GST and its impact and implications on the various
Industries in the Indian Economy. Through this paper we can be in a position to
understand about the concepts, objectives, impact and the implications of the
Goods and Service Tax in India.

3.1ANALYSIS BASED ON PRIMARY DATA

3.1.1.IMPACT ON AUTOMOBILE SECTOR:
Before GST implementation and unification of taxes, we had a series of indirect
taxes in India, wherein every state had their own indirect tax structure. Now, after
GST implementation, all these taxes have been subsumed to one tax.

Impact of GST on automobile sector particularly is considered as a positive

thing as manufacturers of automobiles will have to pay reduced taxes and
ultimately customers will also be benefited. Before GST, various taxes such as
sales tax, road tax, sector tax, VAT, motor vehicle tax, registration duty, etc.
were imposed. All of these have been subsumed to GST on automobile services.
GST tax on automobiles has significantly reduced the cost of transporting goods,
as transportation anywhere in India doesn’t pass through check posts or various
taxes. It has, in fact, reduced the price of automobiles across the country when
compared to the prices before GST.

3.1.2.IMPACT ON HOSPITALITY SECTOR

According to a report, demystifying the Indian Online Traveler, Indian hotel
industry is expected to observe a growth of USD 13 billion by the year 2020.
Another data says that foreign tourist arrival (FTA) observed an increase to
10.66 Lakh in January 2018 as compared to 9.83 Lakh in January 2017.

Both the statistics show that the Indian hotel industry is one of the fastest growing
sectors of the country. However, GST impact on hospitality sector is both good and
 bad. On the one hand, it is expected to attract more customers because of decreased
rates for end-users. On the other hand, the complicated compliance structure is
being frowned upon.Although the unified tax regime may have long-term benefits,
it is still receiving high criticism from around the country. Most of the hotels have
to pay 18% GST, which is the second highest tax slab available.

Although the unified tax regime may have long-term benefits, it is still receiving
high criticism from around the country. Most of the hotels have to pay 18% GST,
which is the second highest tax slab available.

3.2 FINDINGS
3.2.1.Positive Impact of GST on MSMEs

 Low Rates Taxes

With the application of GST, industries having a turnover between Rs.10 and 50
lakh have to pay levies at lower rates, thereby, getting an enormous relief from
tax burdens.

 Reduction in Logistics Cost and Time

GST enactment reduced time and money required for Interstate movement as
their duties got eliminated. Also, this diminishes costs of retaining large stocks
due to ease in free movement of goods.

 Creating a Uniform Platform

GST levies taxes on stock transmissions and neutralizes the impact of
contributed taxes through the input credit too, thus, removing all tax
differentiation and bringing small and medium businesses to par with large-
scale industries.

3.2.2.Negative Impact of GST on MSMEs Burden of Lower

Threshold
GST bill has improved the threshold limit from 10 lakh to 20 lakh generally and
from 4 lakh to 10 lakh for North-eastern states, due to which any service provider
or retailer is subject to the tax levy. Earlier, the central expunge threshold was
INR 1.5 crore. Now, as the threshold is low, most MSMEs have to pay a lump
sum of their investment towards tax in the near, foreseeable future.
  Lack of Tax Differentiation for Luxury Items and Services
The GST implementation has the function of tax neutrality, which though
beneficial in other areas, does not differentiate between luxury
and normal items and services.

 Tax Structure
Simplification of the tax structure is one of the major pillars of the GST regime.
With its introduction, the practice of charging differential tax rates on goods
(excluding fuel) across various states came to an end. Keeping the 'One Nation
One Tax' adage in mind, goods are broadly classified into 4 tax-slabs. Moreover,
several essential goods of mass consumption have been declared tax- free.

It is important to note that all types of fuel have been kept out of the ambit of GST
as taxes on fuel serve as a huge contributor of tax for the central and state
governments and used by them to manage fiscal positions. Any major reduction
in these taxes would put a considerable strain on the government's ability to
manage national and state finances.

 Increase in the Number of Registered Tax Payers

Another reason for implementing GST was to formalize the economy and bring
more traders under the tax net. The Economic Survey result released in January
2018 has revealed that 34 lakh businesses registered for a GST number during the
first 6 months of GST. This has increased the number of taxpayer’s base by 50%.
Besides the immediate registrations, several unregistered dealers are also
expected to obtain GST numbers as enterprises continue to show preference
towards registered entities.

 Elimination of the Cascading Effect of Taxes

As per the GST rules, a trader can claim credit for the taxes he has paid on goods
and services used for his goods. This is beneficial to the final customer as they are
paying taxes on just the final goods and not a double tax, i.e., the tax paid by the
trader on the input materials and on the final product as well.

This has made several goods such as textiles, daily consumables like soap, and
construction material like cement and paints cheaper.

.
3.3.ANALYSIS BASED ON SECONDARY DATA

DATA ANALYSIS AND INTERPRETATION OF DATA:

The total sample was categorized on the basis of age into four major segments
.Out of 98 respondents, 43.9% were between 20 – 30 years age span , 16.3%
were below 20 years, 27.6% were between 30-40 years. And 12.2% were above
60 years.

Out of the total 98 respondents 43.9% were having positive view when asked
whether introduction of GST has affected the Indian Financial Market., 33.7%
were having Negative view and 22.4% were having diplomatic view stating it
Out of the total 101 respondents that responded on the questionnaire,
57.4% were female respondents and about 42.6% were Male respondents .

Out of the total 100 respondents, 74% respondents answered “yes” when asked
if implementing GST will cause any change in Indian Financial markets and
26% respondents were having an opposite view.
Out of the total 101 respondents, 52.5% respondents were of the view that
GST will burden the Indian Financial Markets, rest 47.5% were having a
contradictory view.

Out of the total 101 respondents, 56.4% were of the view that Indian
Financial Market was not ready for implementing the GST system. Rest
43.6% respondents were having a positive view.
Out of the total 85 respondents, 42.4% respondents were expecting GST to
be applied after 3 years, 35.5% respondents were expecting after 1 year
and rest 22.4% were having different views.

Out of the total 101 respondents, 73.3% were of the view that any change
in the GST will be reflected in the stock price and its demand and rest
26.7% were having an opposite view.
Out of the total 100 respondents, 51% were facing some or the other issues
in stock trading while 49% respondents didn’t find any issues.

Out of the total 100 respondents, 44% respondents were having a

satisfactory i.e an average experience in Indian Financial Market after the
implementation of GST, 36% were having a good experience and rest 20%
respondents were having a bad experience.
Out of the total 101 respondents, 67.3% were of the view that the Indian
Financial Market apply the GST laws fairly and rest 32.7% were having a
contradictory view.

Out of the total 101 respondents, 42.6% were not having a diplomatic stance
when asked whether the GST will burden the people in Indian Financial
market, 29.7% answered “NO” and rest 27.7% answered with a “YES”.
Out of the total 98 respondents 66.3% were of the view that GST in Indian
Financial Market will be easier to comply with and rest 33.7% were having a
contradictory view.
4.CONCLUSION AND SUGGESSTIONS:

4.1.CONCLUSION

GST has affected the entire economy and markets with cost of production going
high in all the sectors. As the cost goes high the profit lowers so the companies
raise the prices of the products and services in order to cover the cost that has
increased due to these taxes. Whereas in some cases the tax rate which was earlier
charged is seen to be lowered by GST, but the GST panel may increase the tax
rate in such items in the coming days. It has affected various sectors of financial
markets as the profits are hit by the Indirect Tax reform. This has also led to
volatility in the stocks of some companies.

The proposed GST regime is a half-hearted attempt to rationalize indirect tax

structure. More than 150 countries have implemented GST. The government of
India should study the GST regime set up by various countries and also their
fallouts before implementing it. At the same time, the government should make
an attempt to insulate the vast poor population of India against the likely inflation
due to implementation of GST. Efficient formulation of GST will lead to resource
and revenue gain for both Centre and States majorly through widening of tax base
and improvement in tax compliance. It can be further concluded that GST also
have a positive impact on various sectors and industry. Although implementation
of GST requires concentrated efforts of all stake holders namely, Central and State
Government, trade and industry. Thus, necessary steps should be taken.

The GST is very crucial tax reform since independence of India, so it must be
better handled with utmost care and analyzed well before implementing it. And,
the government both central and state have to conduct awareness programmed
and various literacy programmed about GST to its various stakeholders. Although
the GST implementation aims to upsurge the taxpayer base, largely SMEs into its
opportunity, it presents a problem of compliance and related charges for them.
Nevertheless, GST will make the MSMEs more competitive in the long run and
will make the playing arena level between big enterprises and them. Additionally,
the Indian MSMEs would be able to compete with the
international market goods and competition coming from cheap price epicenters
such as China, Philippines, and Bangladesh and actually thrive in the world
market scenario.

After a thorough analysis of the above literature it can be concluded that GST will
provide relief to producers and consumers by subsuming the several indirect taxes
in India. The Study of literature indicates that the implementation of Goods and
Services Tax helps in better utilization of resources and makes the taxation system
environment friendly. The taxes for both Centre and States will be collected at the
point of sale. Both will be charged on the manufacturing cost. Individuals will be
benefited by this as prices are likely to go down. The lower price of goods
increases consumption and more consumption leads to higher production thereby
leading to economic growth and development of the country.

It is therefore suggested that there be provided a suitable clarification that in cases

where registration is taken only for the purpose of section 9(3) i.e. payment of tax
under reverse charge the provisions of section 9(4) will not be triggered.

It is suggested that it be suitably clarified that in case a dealer receives interest the
he would be eligible for opting Composition Scheme. Similar clarity is also
required for inclusion/exclusion of non-operational income e.g. interest/dividend
while calculating aggregate turnover for computing limit of Rs. 20 L for
registration purpose u/s 22 & 24 of CGST Act,2017. Section 2(30) of the CGST
Act, 2017 defines Composite supply as a supply made by a taxable person to a
recipient consisting of two or more taxable supplies of goods or services or both,
or any combination thereof, which are naturally bundled and supplied in
conjunction with each other in the ordinary course of business, one of which is a
principal supply.

4.2.FINDINGS:
There is not much of primary data for my study in this project so I had to study
the secondary data and come to the conclusion and suggest an opinion on how the
implementation of GST could have been a much better Indirect Tax reform.
However when I collected some Primary Data from my Family, Friends and
colleagues I could understand how the consumer in India is affected by the new
indirect tax that I prepared the conclusion based on the behaviour of consumer
towards the new indirect tax and not by the behaviour of investor towards the new
indirect tax.
 4.3.SUGGESTIONS

To provide literacy and awareness about the GST Effective spending on efficient
Tax administration staff Well maintenance and frequent follow ups of GSTN
(Goods and Service Tax Network) portal for better relationship with various
stakeholders. In order to avoid the unnecessary loss of revenue to the state
government, the central government may think about the considerable percentage
of GST which will be helpful for all stakeholders of GST. Consent from all states
and suggestions from every state for betterment of GST and the source of Tax
revenue. The government should take care about the RNR which should not affect
the tax revenue to any government either central or state. The loss of Tax revenue
should be managed and compensated properly through proper diversification of
funds without burden to anyone. The Central and the State government should be
in proper understanding and cooperative with each other for the successful
implementation of GST. All the Tax Professionals and general merchants
involved in the Business should be given training and basic knowledge about the
Goods and Services Tax.
It is suggested that in case where the person wishing to opt for Composition
Scheme holds such goods in stock which have been purchased in the course of
inter-State trade or commerce or imported from a place outside India or received
from his branch situated outside the State or from his agent or principal outside
the State, he be allowed to opt for Composition Scheme upon payment of
appropriate applicable tax under GST.

It is clarified that whether caterer or banquet hall may claim composition scheme
as it has been raised by such industries as Government in the press releases
announce for the Restaurant only where in law does not stop it.
5.BIBLIOGRAPHY:

1. www.cleartax.com
2. www.wikipedia.com
3. www.moneycontrol.com
4. www.economictimes.com
5. www.timesofindia.com
6. www.investopedia.com
7. www.quora.com
8. www.services.gst.in