02415903921 Nitin PPT.pptx

1. A Study on Impact of GST on Spending Behavior of
Consumers in Retail Industry at PHDCCI
Under Guidance of
Dr. Upasana Diwan
Associate Professor, RDIAS
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By
Nitin Fulara
Enrollment No. 02415903921
MBA, Semester 3rd (MB)
Batch 2021– 2023
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2. CONTENTS
•Introduction of the study
•Literature Review
•Research Methodology
•Data Analysis and Results
•Discussions
•Implications
•Conclusion
•Plagiarism report
•References of LR
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3. INTRODUCTION OF THE STUDY
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Goods & Service Tax (GST) is the type of indirect tax in India and it charges for
supply of goods, services, consumption of goods & sale of goods.
It is a wide ranging, multistage, goal based tax. Wide-ranging: because it combines
all other indirect taxes. Multi-staged: Because it charged at every level in the
production process. Goal-based tax: Because it is charged from a point of
consumption not like previous taxes when indirect taxes charged tax on tax.
GST rates in India for various goods and services are divided into four slabs: 5%
GST, 12% GST, 18% GST, and 28% GST.

4. Before GST in India we paid the "Value added tax" (VAT) & many other indirect taxes.
VAT was abolished and GST brought to India.
The law of GST originated from France in the year 1954. Later, 159 countries
implemented GST in several forms. In many countries, “value added tax” (VAT) is the
alternative for GST that has the same purpose of a unified taxation system.
the idea of GST was first considered in India during 2000 and later, GST was implemented
in the midnight of June 30, 2017, with effect from July 1st, 2017.
BACKGROUND OF THE STUDY
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5. 5
Literature Review
Around 20 studies have been reviewed for the purpose of problem formulation.
Literature Review has given significant inputs. Some of the research papers related
to my topic are based on impact of goods and services tax (gst) on customers,
Consumers buying behaviour, “Customer Perception towards GST Rates and etc.
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Author Year Title Abstract
Dr. S.
Chitra2
2021 Impact of Goods and
Services Tax on Fmcg
Sector
The Purpose of this research paper is
to examine the functional
relationship between goods and
services tax and purchasing power of
fast moving consumer goods
consumers.
Dr.
Krishnamo
orthi M. ,
Dr.T.K.
Murugesan
2021
Customer Perception
towards GST Rates on
Home Appliances.
The aim of this paper is to
understand the impact of GST on the
consumption of home appliances by
the households.

6. 6
Theoretical Concepts
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y Sanjay Kumar
Yadav 2020
Factors involving Purchase
and Consumption of a
Customer come under GST
products
The data was collected using a
questionnaire, and the results revealed
that the level of awareness is low, and
that the introduction of GST is
perceived as neither favorable nor
unfavorable
Chandrasekara
n Padmavathy 2020
Goods and Services Tax
(GST): An extension to
theory of planned behavior
This paper extends the literature on
GST by proposing the potential impact
of GST awareness and trust in
government on consumer behavioral
intentions.
gowtham
ramkumar
2020 “goods and services tax and
consumer buying behavior
this research paper seeks to the study
the how goods and services tax alters
the buying behavior of consumers.

7. To study the Goods & Service Tax Act.
To analyze the consumer's spending behavior and to understand it.
To study how GST impacts the people.
Research Hypothesis
I presumption and estimate some main things about “Impact of GST on
spending Behavior of Consumer in India”
Such as:
H0: I presume there is no any relation between Income & Spending
behavior of consumers. (Ho – Null Hypothesis).
H1: there is a specific relation between Income & Spending behavior of
consumers.(H1 – Alternative Hypothesis).
Objectives of study
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8. Research
Methodology
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9. Research Design
For the purpose of the study, required statistics was collected from primary sources. The
primary data was collected from Questionnaire.
The research design is used for analysing and studying the impact of GST on spending behavior
of consumers in Retail Industry.
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Research Design The sample design is a descriptive study in
nature which will help to understand the
impact of GST on spending behavior of
consumers.
Population Definition The Survey is conducted in Delhi by
questionnaire with the help of the internet
and I distributed the questionnaire through
the internet (Social Media, Mails Etc.) to
understand the “Impact of GST on
spending behavior of consumers in retail
industry”.

10. I approached a total number of 200 Consumers in overall area population of India, to
distribute the questionnaire for the purpose of collecting the primary data regarding to
my Research topic that name as “Impact of GST on spending behavior of consumer in
India” but out of which I received in return back only 105 questionnaire (101 was
complete and 4 was incomplete) which were filled by the respondents.
Data Analysis tools & techniques
I used a major statistical tool like: - Factor analysis to test and find the hypothesis and
Reliability Statistics. The statistical design used in this study is factor analysis with Varimax
rotation. The rotation is based on Varimax, a part of Principal Component Analysis. The
grouping of factors is based on Eigenvalues and variances.
Sampling Details (Unit, Size, Technique)
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11. DATA ANALYSIS
AND
RESULTS
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12. From the above table, Kaiser-Meyer Value is 0.514 which is greater than 0.5. It is concluded that the
measure of sampling adequacy is good for factor analysis.
significance level for the Bartlett’s test below 0.05 suggest there is substantial correlation in the data.
H0: I presume there no any relation between Income & Spending behavior of consumers. (Ho – Null
Hypothesis). To test this assumption, we have applied table-1. From the table it is clear that p
significance and hence null hypothesis is rejected.
Factor Analysis and reliability Statistics
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13. Communalities indicate the amount of variance in each variable that is accounted for. Initial
communalities are estimates of the variance in each variable accounted for by all components or
factors. For principal components extraction, this is always equal to 1.0 for correlation analyses.
The values in the extraction column indicate the proportion of each variable’s variance that can be
explained by the retained factors. Variables with high values are well represented in the common
factor space, while variables with low values are not well represented. They are the reproduced
variances from the factors that we have extracted. We can find these values on the diagonal of the
reproduced correlation matrix.
Communalities
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14. Rotated Component Matrix
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The rotated component matrix, sometimes referred to as the loadings, is the key
output of principal components analysis. It contains estimates of the correlations
between each of the variables and the estimated component. In above table we
have four variables out of four, three is dependent and one is independent.

15. Alpha value of above
0.5 is acceptable. The
tables of dependent
variables show value of
0.750, 0.998, 0.675
which indicates a
higher level of internal
consistency of the
scores generated by the
variables used for the
study. Independent
variable shows value of
.721 which also
indicates a higher level
of internal consistency.
Reliability Statistics
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Variables Cronbach’s Alpha
Attitudes .750
Subjective Norms .998
Behavior Control .675
Behavioral Intention .721

16. * Goods and service tax decreased the consumers spending ability.
* GST eliminates the cascading tax effect on products and services.
* GST reduces the possibility of tax evasion and frauds.
* There are significance relations between Income & Spending Behavior
of consumers.
* I find a significance relation of GST between the Income & Necessary
daily routine goods Or Essential Commodities.
* Goods and Service Tax Act don’t motivate consumers to consume
goods.
* Government did well by ending Value Added Tax.
Findings
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17. Indian Government should reduce the Goods & Service tax for some necessity
goods and services and other commodities, which needs in daily routine life to
motivates and help the consumers and peoples to spend their money to consume
the more essential commodities, goods and services.
Government should improvise in different types of GST slab rates.
Government should reduce 18% GST levied on Medical and Pharmaceutical
Supplies.
Government should increase the GST on Alcohol and Tobacco Products.
Implications
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18. Total Variance Explained
CONCLUSION
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GST is the effective tool to generate the money for both types of
Government “Central & State Govt.” GST finished and eliminates the extra
tax Burdon and also finished the cascading effects on taxes because GST is
the single taxation system it combines all types of indirect taxes under the
single roof and GST charge only for the consumption of goods & Services.
GST reduces the possibility of tax evasion and frauds also help to reduce the
black transaction. I didn’t get any relation between Income &Superfluous
items like: (Wine, Beer, Rum, Whiskey, Tobacco Items and Drug items.)
Peoples still Use these types of goods significantly. According to my Research
Study overall percentage of Success about GST is good; GST also gives
positive effect on educated peoples who have proper knowledge about GST.
it helps to motivate the consumers to buying the essential items &Services
significantly and GST not affect the consumers to spend their money to
buying largely essential goods & services significantly, and Goods & Service
Tax is beneficial for consumers.

19. PLAGIARISM REPORT
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20. Ramkumar, M. G. (2021). Impact Of Goods And Services Tax On Fmcg Sector. Turkish Journal of
Computer and Mathematics Education (TURCOMAT), 12(11), 158-164.
Krishnamoorthi, M., Murugesan, T. K., & AM, M. A. (2021). Customer Perception towards GST Rates
on Home Appliances. The COVID-19: BUSINESS TRENDS, CHALLENGES AND
OPPORTUNITIES, 138.
Yadav, S. K., Nayan, R., & DU, R. C. Factors involving Purchase and Consumption of a Customer
come under GST products.
Padmavathy, C. (2020). Goods and services Tax (GsT): an exTension To Theory of planned
behaviour. Global Management Review, 14(1), 1-8.
Dey, S. K., Kishore Nanda, C., & Pathy, M. (2021). Impact of Goods and Services Tax (GST) on
Costumers' Perception in Odisha: An Empirical Study. Sanjeeb Kumar Dey, Ch. Sudipta Kishore
Nanda and Madhumala Pathy, Impact of Goods and Services Tax (GST) on Customers’ Perception
in Odisha: An Empirical Study, International Journal of Management, 11(12), 2020.
GOWTHAM RAMKUMAR, D. S. C. (2020). GOODS AND SERVICES TAX AND CONSUMER
BUYING BEHAVIOUR–A STUDY. PalArch's Journal of Archaeology of Egypt/Egyptology, 17(6),
2777-2787.
Gunasekaran, N., Rajeshwari, M., & Ranjitha, S. A STUDY ON IMPACT OF GOODS AND SERVICE
TAX ON COMMON MAN. Edited Volume on-Theme 1: Government Policies Since 2014, 47.
References of LR
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21. THANK YOU
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