MBA Research Project Report on GST - Title as "Impact of GST on Spending Behaviour of Consumer in India"

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Research Project Report
ON
Impact of “GST” on Spending Behavior of Consumer in India
At
“CH. RANBIR SINGH UNIVERSITY, JIND”
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE
AWARD OF DEGREE OF
MASTER OF BUSINESS ADMINISTRATION (MBA)
SESSION 2018-2020
UNDER THE GUIDANCE: SUBMITTED BY: - ROHIT
Dr. JASVIR SURA (Finance) MBA – Final (4th SEMESTER)
(Asst. Prof.) UNI. - ROLL NO: - 1801024
DEP. ROLL NO: - 18831
Department of Management
Faculty of Commerce &Management
CRSUNIVERSITY JIND.

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CONTENTS
Title Page No:
DECLARATION 3
ACKNOWLEDGEMENT 4
PREFACE 5
ABSTRACT/SUMMARY 6
INTRODUCTION OF TOPIC 7-21
➢ Meaning & Definitions
➢ Types of GST
➢ Slab Rates of GST
➢ Summary & Table of Impacted Goods, Service
STATEMENT OF THE PROBLEM 22-23
OBJECTIVE OF STUDY 24-25
HYPOTHESIS 26-27
REVIEW OF LITRATURE 28-30
RESEARCH METHDOLOGY 31-36
DATA ANALYSIS 37-41
FINDINGS, SUGGESTION & LIMITATION OF STUDY 42-45
CONCLUSION 46-47
BIBLIOGRAPHY 48-49
➢ References
ANNEXTURE/APPENDIX 50-58
➢ Questionnaire

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Declaration
I Do here by declare that this MBA - (FINANCE)- RESEARCH REPORT titled as
“Impact of GST on Spending Behavior of Consumer in India “has been submitted
in the partial fulfillment of the Masters in Business Administration, CH. RANBIR
SINGH UNIVERSITY JIND, is an a original piece of work. It has neither been
published nor submitted any ware before.
ROHIT S/O SH. MOHAN LAL SIGNATURE

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ACKNOWLEDGEMENT
Initially I might want to express and pay my & respects to omnipotent god, who
offered his favors on me and gave me mental fortitude and right sort of condition for
fulfillment of my REPORT.
This MBA - RESEARCH report is an indispensable piece of my course.
At the start I recognize my profound feeling of appreciation to my branch of the
board for his important direction.
I accept this opportunity to offer my massive thanks towards my venture guide
Dr. JASVIR SURA (Asst. Prof.) MBA - (Finance) At Ch. RANBIR SINGH
UNERVISITY JIND, HARYANA. Who gave me the opportunity to do Research
onImpact of “GST” on Spending Behaviour of Consumer in India.
I would also like to express my gratitude to Prof. SK SINHA DEAN &
CHAIRPERSON of the department for his kind encouragement.
I also acknowledged the moral help and support of my teachers of the department,
Dr. AJMER SINGH, Dr. JASVIR SURA, Dr. RACHNA SRIVASTAV, Dr.
ARUN KUMAR, Dr. KRISHAN KUNDU, and Ms. PREETI GUPTA for their
continuous help in developing this MBA- Research Report.
Last but not least, this Research report would be incomplete without extending my
special thanks to all those who directly or indirectly helped me.

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PREFACE
In the Project Research Report I described my experience during the MBA-
(FINANCE) Research project title as Impact of GST on Spending Behavior of
Consumer in India. The Project Research Report contains an overview of Research
Project & University Campus activities, tasks and project I have completed during
my MBA.
In this Research Report I also describe and explain my objective, learning objectives
& goals, which I have set during the period of MBA - (2 Yr.) at CRS UNIVERSITY
JIND, HARYANA.
MBA-Research Project helps me a lot in inculcating good work culture. It provides
the linkage between the student and industry in order to develop the awareness&
skills of industrial approach to problem solving based on broad understanding of the
plant, hardware procedure and method of activity or modern association.
My Research project has enabled me to have broader knowledge about this system
and what are the methods and techniques policy adopted for GST and How GST
Impact on Spending Behavior of Consumer in India. My Research Project also
provided an opportunity to gain practical knowledge through this Research report; I
have tried to summarize all my observation experience and knowledge acquired in
this MBA - (Finance) Research Report.

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ABSTRACT
Goods & Service Tax (GST) is the type of indirect tax in India which replaced all
other indirect taxes and it charge for supply of goods, services, consumption of
goods & sale of goods. Before GST in India we paid the “Value added tax” (VAT)
& many other indirect taxes. VAT was charge for goods on each and every phase,
from creation to the retail location& costs. But in other hand we have GST, GST
finished and eliminates the cascading tax effect. Cascading effect means when
there is tax on tax carried on a product at every step and level of the scale. GST is
charge by State Government & Centre Government for goods & services.GST
start in India as 1st
July/2017 by the Parliament of India. GST give Tax reliefs to
all the peoples who pay for Indirect Taxes to Government and GST also impact on
spending ability of consumers and peoples. The spending ability of consumer
influences the buying/purchasing decision of consumer. How they spend their
money on products & service after came the GST in India. GST affects the
consumer by both way Positive & Negative. In some of the cases GST give the
positive effect and in some cases it gives negative effect.
The current Research study aims to analyze the relationship between income and
spending behavior of consumer in India & to measure the “Impact of GST on
spending behavior by consumer in India”
I have used in this research project Observational Factor Analysis to test the
hypothesis in the study and I show the performance by using Histogram Pillars.
The research shows me the result that there is very strong relation between Income
&White Goods (Large Electronic Items), Sports Equipments, and Other Needy
Equipment by Profession, but no relation between the Income and Some very
main Necessary Goods & Services. Like:- Wheat, Rise, Vegetables, Cheese Ghee,
Butter, Biscuits, Chocolates, Packing Water, Milk, Toothpaste, Clothing, Fashion
items, Foot Wares, Bathing Soap, Other Soap, Shampoo, Conditioner, Hair Oil,
Cream, Cosmetic, washing Powder, Fruits, Dry Fruits, Vegetables, Medicines, Hair
Oil, Pharmaceuticals & Medical Services, Narcotics, Drug Items, Tobacco Products,
Wine, Rum, Beer, Whiskey, Soft Drinks (Coke, Pepsi, Tropicana Etc.), Fast Food,
News Paper, Magazines, Mobile recharge, Wi-Fi/Internet Connections,
Entertainment, Doctor Charges, Advocate Fees, Artist Charges (Singers/Musicians,
Actor, Painter and any other.) and Concerts Fees (Music Concert, Comedy Shows,
Other.) Etc.

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INTRODUCTION
OF
THE TOPIC
(Impact of GST on Spending Behaviour
of Consumer in India)

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1.INTRODUCTION
Goods & Service Tax (GST) is the type of indirect tax in India and it charge 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 the all
other indirect taxes. Multi-staged: Because it charged at every level in the
production process. Goal-based tax: Because it charged from a point of
consumption not like previous taxes when indirect taxes charged tax on tax.GST are
majorly categorized into five slabs rates in India for collection of Goods & Service
Tax - 0%, 5%, 12%, 18%, 28% and 31%. Before GST in India we paid the
“Value added tax” (VAT) & many other indirect taxes. VAT was abolished and
GST brought to India. VAT was utilization charge put on an item at whatever point
esteems are included at each phase of gracefully chain, from creation to the retail
location and costs. But in other hand we have GST, GST is very easy effective as
compare to VAT & GST also finished and eliminates the cascading effect.
Cascading effect means when there is tax on tax carried on a product at every step
and level of the scale.
VALUE ADDED TAX (VAT) is the process of charging indirect tax by production
to retail. VAT is used in more than 160 Countries and it is most commonly used in
European Union and it is less progressive to Income Tax.
GOODS & SERVICE TAX (GST) GST is an Indirect Tax which replaced all other
indirect Taxes in India. GST is charge by State Government & Centre Government
for goods & services. GST start in India as 1st
July /2017 by the Parliament of India
But the GST Act was passed in the Indian Parliament on 29th
March/2017 and the
Act came into effect on 1st
July/2017, GST gives Tax reliefs to all the peoples who
pay for Indirect taxes to Government and GST also finished and eliminates the
cascading effect.
❖ Cascading effect means when there is tax on tax carried on a product at every
step and level of the scale.

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1.1. Definitions:
❖ Goods & Service Tax is the process of charging and collecting the indirect
tax by peoples for goods and service it charge for supply of goods, services,
consumption of goods & sale of goods. (ROHIT – MBA (Finance) 2018-2020 -
CRSU, JIND.)
❖ Goods & Service Tax is the type of indirect tax which is use to collect the
tax by peoples for the consumption of goods and services. (ROHIT – MBA
(Finance) 2018-2020 - CRSU, JIND.)
1.2. CHARACTERISITICS & KEY POINTSOF GST
*GST came in India after Eliminates the Value Added Tax (VAT).
*VAT was abolished and GST brought in India.
*GST is a solo tax on the supply of Goods & Services.
*It replaced all and other applicable indirect taxes.
*GST also finished and eliminates the cascading effect of tax.
*GST finished the Double Tax System for Goods & Services.
*GST eliminates the double counting issues in computing the National Income.

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*GST charged by the last vendor in supply chain.
*GST single-handedly replaced Seventeen other indirect taxes.
✓ Excise Duty
✓ Service Tax & Service tax additional duties of customers at central level
✓ Countervailing Tax
✓ Special Countervailing Tax
✓ Value Added Tax (VAT)
✓ Central Sales Tax (CST)
✓ OCTROI
✓ Entertainment Tax
✓ Entry Tax
✓ Purchase Tax
✓ Luxury Tax
✓ Advertisement Tax
✓ Taxes Applicable on Lotteries
✓ Other surcharge for supply of goods & service, Etc.
*For conducting the programmes of GST we have to upgrade the Tally ERP 9
Software to ERP 9+ or any New Software which support GST Programmes.
*GST need to provide the training to workers and employees to maintain the
workload of GST.
*GST increase the operating cost of business for some time, because they need to
hire the professional for GST to understand the work of GST.
*GST reduces the possibility of tax evasion and frauds.
*GST encourages the suppliers to pay the taxes.
*It generates more revenue for Government.
*GST provides goods and services at same price level at every place in India.
*GST registration required for the dealers if there annually turnover exceeds
Rs.20 lakhs.

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1.3. GST REGISTRATION NUMBER FORMAT
It is known as Goods & Service Tax Investigation Number (GSTIN) the GSTIN
comprises of 15 digits. The initial 2 digits can run from 01-35 and show the state
code for the enlistment according to the Indian Census of 2011. The following 10
digits are the PAN number of the GST enlisted substance.
State Code - PAN Number - Any Numeric Key - Any Alphabet Key & Any Check
Sum Digit (NUMRIC or ALPHABET)

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For Example:
❖ Checksum Digit Mean: It Stand for any Alphabetic or any Numeric Key,
Checksum Digit can range between (0- 9) or (A – Z).
1.4. TYPES OF GST:
There are 4 GST types specifically “Central Goods and Services Tax” (CGST),
“Integrated Goods and Services Tax” (IGST), “State Goods and Services Tax”
(SGST) and “Union Territory Goods and Services Tax” (UTGST). The tax
assessment rate under every one of them is extraordinary.
1. Central Goods & Service Tax (CGST)
2. State Goods & Service Tax (SGST)
3. Integrated Goods & Service Tax (IGST)
4. Union Territory Goods & Service Tax (UTGST)

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1) Central Goods and Service Tax (CGST): The Central Goods and Services
Tax of CGST is a duty under the GST system which is material on intrastate
(inside a similar state) exchanges. The CGST is represented by the CGST Act.
The income earned from CGST is gathered by the Central Government.
For Example: if a merchant from Maharashtra has offered products to a client in
Maharashtra worth Rs.10, 000, at that point the GST appropriate on the exchange
will be halfway CGST and somewhat SGST. On the off chance that the pace of GST
charged is 18%, it will be isolated similarly as 9% CGST and 9% SGST. The
aggregate sum to be charged by the dealer, for this situation, will be Rs.11, 800.
Out of the income earned from GST under the head of CGST, for example Rs.900
will go to the Central Government as CGST.
2) State Goods & Service Tax (SGST): The State Goods and Services Tax or
SGST is a duty under the GST system which is appropriate on intrastate (inside
a similar state) exchanges. If there should be an occurrence of intrastate
flexibly of products or potentially benefits, both State GST and Central GST are
collected. In any case, the State GST or SGST is exacted by the state on the
merchandise and additionally benefits that are bought or sold inside the state.
It is administered by the SGST Act. The income earned through SGST is
exclusively asserted by the individual state government.
For example: if a dealer from Haryana has offered products to a client in
Haryana worth Rs.15,000, at that point the GST material on the exchange will be
somewhat CGST and mostly SGST. On the off chance that the pace of GST charged
is 18%, it will be isolated similarly as 9% CGST and 9% SGST. The aggregate sum to
be charged by the dealer, for this situation, will be Rs.17, 700. Out of the income
earned from GST under the head of SGST, for example Rs.1350 will go toward the
Haryana state government as SGST.

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3) Integrated Goods & Service Tax (IGST): The Integrated Goods and
Services Tax or IGST is an expense under the GST system that is applied on the
interstate (between 2 states) gracefully of products or potentially benefits just
as on imports and fares. The IGST is administered by the IGST Act. Under IGST,
the body answerable for gathering the expenses is the Central Government.
After the assortment of charges, it is additionally separated among the
individual states by the Central Government.
For example: if a dealer from Punjab has offered merchandise to a client in
Rajasthan worth Rs.25,000, at that point IGST will be relevant as the exchange is
an interstate exchange. In the event that the pace of GST charged on the products
is 18%, the dealer will charge Rs.29, 500 for the merchandise. The IGST gathered
is Rs.4500, which will be setting off to the Central Government.
4) Union Territory Goods & Service Tax (UTGST): The Union Territory
Goods and Services Tax or UTGST is the accomplice of State Goods and
Services Tax (SGST) which is requested on the quickly of product and also
benefits in the Union Territories (UTs) of India. The UTGST is appropriate on
the gracefully of products as well as administrations in Andaman and Nicobar
Islands, Chandigarh, Daman Diu, Dadra and Nagar Haveli, and Lakshadweep.
The UTGST is represented by the UTGST Act. The income earned from UTGST is
gathered by the Union Territory government. The UTGST is a trade for the
SGST in Union Territories. In this way, the UTGST will be imposed
notwithstanding the CGST in Union Territories.

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1.5. Difference between different types of GST
TYPES Authority Transactions
Applicable
on Goods &
Services
Collected
By
Priority to
Use Tax
Credit
CGST Central
Government
Within a single
state, i.e.
intrastate
Central
Government
CGST, IGST
SGST State Govt. Within a single
state, i.e.
intrastate
State Govt. SGST, IGST
IGST Central &
State Govt.
Between two
unique states or
a state and a
Union Territory,
for example.
Central
Government
IGST, CGST,
SGST
UTGST Union
Territory
Govt.
Within a single
Union Territory
(UT)
Union
Territory
Govt.
UTGST, IGST

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1.6. Benefits of GST:
1. GST reduce the tax Burdon of indirect taxes.
2. It reduces the overall price of consumer’s goods.
3. GST reduce the cascading tax effect& double tax system for products and
service. (Cascading tax means tax on tax.)
4. GST Eliminates the Double, triple tax counting issues in computing the
national income.
5. Reduction in multiplicity of indirect taxes.
6. It reduced the black transaction.
7. GST is easy in counting as compare to VAT.
8. GST reduces the possibility of tax evasion and frauds.
9. GST encourages the suppliers to pay the taxes.
10.It generates more revenue for Government.
11. It saves the time & costs.
ETC.
1.7. Limitations of GST:
1. Increase the operational cost: GST Increase the operative cost of small
types of business.
2. Increase the extra work Burdon (Especially for business from home and
small business entity.
3. Some peoples consider GST to be a Burdon and waste of money.
4. GST increase the cost due to maintain the work.
5. Increase the cost due to purchasing of GST software: Because GST is the
online taxation system.
6. Higher tax Burdon on SMEs.
ETC.

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1.8. Objectives of GST:
1. To finished the frauds and blacking of tax and the possibility of tax evasion.
2. To eliminates the cascading effect of tax. (Tax on tax- would be to eliminate
the doubly taxation).
3. To save the extra expense of peoples.
4. To reduced the extra tax Burdon.
5. To encourages the suppliers to pay the taxes.
6. To provides goods and services at same price level at every place in India.
7. To generates the more revenue for government.
ETC.

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1.9. Slab Rates under GST taxes: As on (1st
April, 2020)
GST are majorly categorized into six slabs rates in India for collection of Goods &
Service Tax - 0% - 0.25%, 5%, 12%, 18%, 28%, 31%. (As on (1st
April, 2020)
Goods & Service Tax Slab Rates List of 2020: - (0%, 5%, 12%, 18%, 28% and 31%)
Charges to be subsumed under GST are Excise Duty, Service Tax, Central Sales Tax,
Surcharge and Fees, VAT, Taxes on Lottery, Luxury Tax, Entry Tax, Entertainment
Tax (These are the pieces of Central Tax and State Tax).

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1.1O.Table of Impacted Goods and Service
This is the summary of impacted goods and services which express the opinion &
preference of the peoples in India and show how consumer impacted by GST on
their spending behaviour.
Items, Products & Services Opinions of Consumers Suggestions
Essential Commodities
And Necessary
Items/Service.
Wheat
Rise
Toothpaste
Clothing
Bathing Soap, Shampoo, Hair oil
Cosmetic, Grooming Items
Foot wares
Face Cream, Face wash, Talc
Washing Powder
Books, Stationery
Fruits, Dry Fruits
Biscuits, Chocolates
Vegetables
Packing Water
Soft Drinks
Egg Trays
Butter, Ghee, Cheese
Packing Milk
News Paper, Magazines
Medical Services, Chemists,
Pharmaceuticals
Soft Drinks
High Tax Rates for Some
Commodities
Slabs Rates should reduce for
daily routine goods/services
and essential commodities.
Comfort Items
Wi-Fi, Internet Services
Entertainment Services
Electronic Items
Sports Equipments
Very High Tax Rates for
these types of commodities
Government should minimise
the slab rates for these all
types of items/services.
Superfluous
Foods at 5 Star Hotels,
Restaurants, Fast Food
Narcotics, Drug Items, Tobacco
Wine, Rum, Whiskey, Beer Etc.
High tax rates for Foods at
5 Star Hotels, Restaurants,
and Fast Food. But tax rates
is less for Narcotics, Drug
Items, Tobacco, Wine, Rum,
Whiskey, Beer Etc.
Government should maximise
the slab rates for Wine, Beer,
Rum, Narcotics, Drugs, and
Tobacco items.
But Government should
minimise the tax rates for
Foods at 5 Star Hotels,
Restaurants, and Fast Food.

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STATEMENT
OF
THE PROBLEM

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2. Statement of the Problem
GST is a solo tax on the supply of Goods & Services. It combines the all other
indirect taxes, single-handedly GST replaced Seventeen other indirect taxes.
Excise Duty, Service Tax, Countervailing Tax, Special Countervailing Tax, Value
Added Tax (VAT), Central Sales Tax (CST), Service tax additional duties of
customers at central level, OCTROI, Entertainment Tax, Entry Tax, Purchase Tax,
Luxury Tax, Advertisement Tax, Taxes Applicable on Lotteries, Sur Charge on
supply & goods, etc. The GST replaced these all types indirect taxes single
headedly under the single roof and GST also finished & eliminates the
cascading tax effect and double, triple counting issues in computing the national
income. According to my research “Peoples of our country is very serious and
concern about this issue” and I have got mix experience of all types of peoples in
my research study. GST impacts the consumers spending ability by both sides
positively & as well as negatively. According to my research study the research
shows me the result that there is very strong relation between Income & Electronic
items, Sports Equipment and Other Needy Equipment by Profession, but I did
not get any strong relationship about very main necessary and other types of goods
and services, Like: No relation between the Income and Some very main
Necessary Goods & Services Like:- Wheat, Rise, Toothpaste, Clothing, Fashion
items, Foot Wares, Bathing Soap, Other Soap, Shampoo, Conditioner, Hair Oil,
Cream, Cosmetic, washing Powder, Fruits, Dry Fruits, Vegetables, Medicines, Hair
Oil, Soft Drinks (Coke, Pepsi, Tropicana Etc.), Fast Food, News Paper, Magazines,
Mobile recharge, Wi-Fi/Internet Connections, Entertainment, Doctor Charges,
Advocate Fees, Artist Charges (Singers/Musicians, Actor, Painter and any other.)
and Concerts Fees (Music Concert, Comedy Shows, Other.) and I also did not get
any relation between income & unnecessary goods and services, which not liked
by all types of peoples Like:- Tobacco, Wine, Rum, Beer and any Drug items,
Etc. My overall research study has given me a mixed experience of peoples which
affect many types of products and services, According to peoples preference GST
may lower price for Daily routine household items and services, But GST should
be high tax rates on unnecessary products &service, like:- Drug items, Wine,
Rum, Beer, Tobacco etc. GST should be lower rates also for Medicines and
medical treatments & Services.

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OBJECTIVE OF
STUDY

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3. OBJECTIVES OF THE STUDY
The current Research study aims to analyze the relationship between income and
spending behavior of consumer in India & to measure the impact of “GST on
spending behavior by consumer in India”
1. To understand the Goods & Service Tax Act.
2. To know the consumers spending behaviour and to understand it.
3. To understand how GST gives impacts the peoples.
4. To know the products & services those have been the greatest impact due
to GST.
5. To know the opinions of consumers about different types of GST slab rates.
ETC.

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HYPOTHESIS

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4. HYPOTHESIS
I presumption and estimate some main things about “Impact of GST on
spending Behaviour of Consumer in India”
Such as:
1.HO: I presume there is no any relation between Income & Spending
behaviour of consumers. (Ho – Null Hypothesis)
2.HO: I presume that peoples still spend their money significantly on
consuming the goods & services. (Ho – Null Hypothesis)
3.HA: Factors of buying behaviour for consumers/peoples &
Businessmen not differs the significantly. (H1 – Alternative
Hypothesis)
ETC.

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REVIEW OF LITRATURE

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5. LITRATURE REVIEW
• Agrawal Yogesh Kailashchandra (2017) the study Objective was to explain the
mechanism of GST and its effects on Indian Economy. The researcher
highlighted the positive and negative impact of GST in Indian Economy and
explained the working mechanism of GST in India. He concluded that GST is
at the infant stage in India which will take some time to experience GST
effects on Indian Economy.
• V. Chitra, (2019) Objective of the study was to analyse the relationship
between “Income & Spending Behaviour of Consumer in India after adopting
the GST” & to Measure the “Impact of GST on Spending Behaviour of the
Consumers in Chennai” and data collected in this research paper threw the
Questionnaire, and Surveys, the researcher were approached 120
consumers in South Chennai to filled out the questionnaire regarding data
collection and out of this was received 114 questionnaire and finally
researcher selected 100 questionnaire. This research paper analyse the data
threw the ANOVAs and Factor analysis Statistical tools. This study conclude
that there is no relationship between income and spending behaviour of
consumer and GST show the negative impact on Essential items and Services.
• Dani S Shefali, (2016) made an endeavour to comprehend why the proposed
GST system may hamper the development and improvement of the nation.
He brought up that the proposed GST system is an indifferent endeavour to
excuse circuitous assessment structure. Further, the legislature should
consider the GST system set up by different nations and furthermore their
aftermaths previously actualizing in our nation.
• Gupta Archit, (29th March 2017) the objective of the study was to examine
the “Impact of GST on common man” and GST is actualized, the greater part
of the difficulties of the current circuitous charge system will be an account
of the past. India will turn into a solo market where goods can move openly
across state outsides, consistence will be simpler, and expenses of every day
goods will reduce.

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• AMULYA M, (Sep. 2019) “The study examines the Impact of GST on Spending
Habits of the Consumers in Mysore” And Researcher were collected the data
to find relation between income & spending habits of consumer threw the
questionnaire and researcher find 80 response regarding the topic and
researcher collected other topic related information threw the newspaper,
previous article and books. The study concludes GST is beneficial for
consumers and it eliminates the economic distortion in taxation.

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RESEARCH
METHODOLOGY

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6. RESEARCH METHODOLOGY
I Researched and redefined the problems about topic “Impact of GST on Spending
Behavior of Consumer in India” which is already defined and the movement from
known to unknown terms & facts by many Researchers but I found many new
things and peoples suggestions about the topic.
I Conduct the research study threw the both types of data “Primary & Secondary
data” and after collecting the data by both side I prepared my Research design and
Sample size.

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6.1 Research Design
We have Some major types of Research design with the help of which we
can prepared the research design and framework.
Such as:
1. Exploratory Research Design
2. Descriptive Research Design
3. Causal Research Design
❖ I used “Exploratory Research Design & Casual Research Design” both to
conduct the research on the topic of “Impact of GST on spending behavior of
consumer in India” and after conducting this research I found very valuable
and unique result about the topic.
Exploratory Research Design I used to examine and investigates the issues and
problems about my research topic, which problems and issues faced by peoples
and consumers in India.I conducted exploratory study in India from many states
and cities by the questionnaire with 5 Time Likert Scale Pattern.
And Causal Research Design I used to focus on the analysis of situation and
specific problems.
❖ I also used a major statistical tool like: - Factor analysis & ANOVA to
test and find the hypothesis. *(See Data Analysis & Interpretation)

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6.2 Area/Scope of Study & Sample Unit
The Survey is conducted in all over the India’s many largest States and
cities (Delhi, Haryana, Mumbai, Chandigarh, Kolkata, Utter Padres,
Bihar, Rajasthan, Goa, Puna Etc.) by the questionnaire with the help of
internet and I distributed the questionnaire threw the internet (Social
Media, Mails Etc.) to understand the “Impact of GST on spending
behaviour of consumer” and here is the Sample units are the
consumers who spent their money to buying the different types of
goods and services to fulfil their needs and wants.
6.3 Sample Size
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 behaviour of consumer in India” but
out of which I received in return back only 180 questionnaire (150 was
complete and 30 was incomplete) which were return by the consumer,
and finally I select the 120 questionnaire which I was found very
useful and effective.
❖ And finally I prepared the sample size of 120 questionnaires. So
sample size for study was prepared of 120 questionnaires papers.
❖ And we use the “5 Time Likert Scale” Pattern in Questionnaire.
a) Strongly Disagree
b) Disagree
c) Neutral
d) Agree
e) Strongly Agree

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6.4 Methodology
I conducted “Exploratory study” in India from many states and cities by
the questionnaire with likert scale pattern.
Demographic Profiles
Particular Sub-
Category
Find Q.%
Questionnaire
Incomplete complete Selected %
Gender Male
Female
Total
88 48.9%
92 51.1%
180 100%
18
12
30
70
80
150
60 50%
60 50%
120 100
Age Bellow 18
18-25
25-30
30-40
Above 40
Total
09 05%
63 35%
54 30%
45 25%
09 05%
180 100%
01
12
06
11
Nil
30
08
51
48
34
09
150
06 05%
48 40%
36 30%
24 20%
06 05%
120 100%
Occupation Student
Gov Emp.
Pvt Emp.
Slf Emp.
Bus Man
House
mk
Total
72 40%
18 10%
36 20%
27 15%
18 10%
09 05%
180 100%
10
03
06
06
03
02
30
62
15
30
21
15
07
150
48 40%
12 10%
24 20%
18 15%
12 10%
06 05%
120 100%
Family-
Income
Blw - 2 Lc
2 Lc – 3
Lc
3 Lc – 5
Lc
5 Lc – 10
Lc
10 lakh +
Tota
18 10%
54 30%
63 35%
27 15%
18 10%
180 100%
03
09
10
04
04
30
15
45
53
23
14
150
12 10%
36 30%
42 35%
18 15%
12 10%
120 100%

36
6.5 Source/Methods of Data Collection
I used the both types of data collection source and methods, Such as:
1. Primary Data Collection Sources:
2. Secondary Data Collection Sources:
• Primary Data Collection Sources: I collected the primary data and
fresh data by:
✓ Questionnaires
✓ Surveys &
✓ Interviews.
• Secondary Data Collection Sources: I collected the secondary data by
many different types of sources, Like:
✓ University Library Books
✓ Internet (Google, Websites, YouTube & Social Media Etc.)
✓ By Books
✓ By Published Articles
✓ By Scholars Thesis & Research
✓ News Papers &Magazines, Etc.

37
DATA ANALYSIS
&
INTERPRETATION

38
7. DATA ANALYSIS& INTERPREATATIONS
I used ANOVAs Test and Factor Analysis to Test & Find the Hypothesis and analyse
the data because I find huge quantity of data in my research study and I Compared
the variables between groups which I collect to conduct my research Study on the
topic “Impact of GST on Spending Behaviour of Consumer in India” and show the
comparison of different types of commodities & services with the help of
Histogram Chart.
The Study found that response near about 48% from Male and nearly 52% from
Female. 05% peoples between Age Group bellow 18 year, 35% peoples between
18-25 year age group, 30% peoples between 25-30 age group, 25% peoples
between 30-40 year age group and 05% peoples from 40+ year age group. And in
between 40% were Students, 10% were Govt. Employee, 20% were Private
employee, 15% were Self Employed, 10% were Businessmen, and 05% were House
maker. From which I found 10% peoples whose annual income is less than 2 lakhs,
30% peoples annual family income is 2-3 lakhs, 35% people’s family annual income
is 3-5 lakhs, 15% peoples family annual income is 5-10 lakhs, and 10% peoples
family annual income is more than 10 lakhs.

39
7.1. Factor Analysis of Data
I identified total 27 Variables with 3 Components to measure the “Impact of GST
on Spending Behaviour of Consumer in India” here the result of Factor Analysis by
using the variables, As Followings:
Table showing the result of variables
Sr.
No Items/Service or
Variables
Components
(a)
Essential
Items
(No
Relation
B/W
Income
but
Negative
Impact)
(b)
Comfort
Items
(Strong
Relation
B/W
Income
but
Negative
Impact)
(c)
Superfluous
Items
(No Relation
B/W
Income & No
Negative
Effect)
1. Wheat, Rise ✓
2. Toothpaste ✓
3. Clothing ✓
4. Bathing Soap, Shampoo, Hair oil ✓
5. Cosmetic, Grooming Items ✓
6. Foot wares ✓
7. Face Cream, Face wash, Talc ✓
8. Washing Powder ✓
9. Books, Stationery ✓
10. Fruits, Dry Fruits ✓
11. Biscuits, Chocolates ✓
12. Vegetables ✓
13. Packing Water ✓
14. Soft Drinks ✓
15. Egg Trays ✓
16. Butter, Ghee, Cheese ✓
17. Packing Milk ✓
18. News Paper, Magazines ✓
19. Medical Services, Chemists, Pharmaceuticals ✓
20. Soft Drinks ✓
21. Wi-Fi, Internet Services ✓
22. Entertainment Services ✓
23. White Goods/Large Electronic Items ✓
24. Sports Equipments ✓
25. Foods at 5 Star Hotels, Restaurants, Fast Food ✓
26. Narcotics, Drug Items, Tobacco ✓
27. Wine, Rum, Whiskey, Beer Etc. ✓

40
7.2. INTERPREATATION: From the above table it clears that first factor with 20
variables consists ‘Essential Items/Services; the second factor with 4 variables
consist the ‘Comfort Items; and final 3rd
factor with 3 variables consists the
‘superfluous items’.
• There is no Relation between Income and Essential commodities but
Negative Impact of GST on these types of products/services.
• There is very strong relationship between Income & Comfort items and also
found very strong negative impact of GST on these types of
products/services.
• There is no relation of income with ‘Superfluous items’ and these types of
commodities not impacted by GST.
*The Study found more impact of GST on Essential Items more than
Comfort & Superfluous items. But still peoples have to consume the
Essential items because these types of commodities include necessity
daily routines items/services.

41
7.4. Comparison of Different types of commodities and services with
the help of Histogram Statistical Analysis Chart:
Series 1: Show the Impact of GST on Routine Necessary Commodities or Essential Items. It
means no relation between Income & Routine Necessary Goods & Services.
(HO) & (Negative impact of GST.)
Series 2: Show the Impact of GST on Electronic items, Sports Equipments, Entertainment, Wi-
Fi & Internet Services and other Durable Goods and Electronic Goods/Services or Comfort Items.
It means these types of items and services bought less by consumers after adopting GST but in this
Category (Wi-Fi, Internet & Entertainment) still using significantly.
(H1& HO) & (Negative impact of GST.)
Series 3: Show the impact of GST on Narcotics and Drug items and other Product/Services or
Superfluous Items. Like: (Wine, Whiskey, Beer, Rum, Drugs, and Tobacco Products Etc.) and
series 3rd
mean these types of items and services not affected by GST and Peoples still consuming
these types of commodities/Services like before adopting GST.
(HO) & (No Negative Impact)
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
Year 2017 Year2018 Year 2019 Year 2020
Series 1
Series 2
Series 3

42
FINDINGS,
SUGGESTIONS &
LIMITATIONS

43
8. FINDINGS
In this Research Report I find some major issues and Terms which needs
to improvise and innovate. Such as:
✓ GST affects on the “Electronics items & Sport Equipments”
after adopting the GST in India peoples reduced their buying
ability related to these types of products.
✓ GST increase the operating cost for small units of business
because they have to maintain GST work and have to carry the
software Etc. That’s why some products & services provide by
the seller on higher cost.
✓ I find the No relation of GST between the Income & Necessary
daily routine goods Or Essential Commodities.
✓ And also No relation between Income &Narcotics and Drug
items. That’s why Peoples has still significantly used of
unnecessary products like: Beer, Wine, Rum, Whisky, Tobacco
Products & Drug items Etc.

44
9. SUGGESTIONS
✓ 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.
✓ Indian Government should maximise the Tax rates for some
following items and services, Such as:
o Beer
o Wine
o Rum
o Whiskey
o Narcotics
o Tobacco Products
o Drug Items&
o Other Unnecessary Products
o Etc.

45
10. LIMITATIONS OF STUDY
Undertaking this Research study I faced some major issues &problems.
The Study has several limitations. As Followings:-
1. Covid-19: it was the big issue to complete the research study due to
the Corona Virus because that time I have no proper resource to
utilise, No guidance of Professors/Teachers, and no anyone helped
me to complete the research work.
2. Lack of information: I didn’t find any good article by the
researcher & scholars to collect the information about the topic.
3. Lack of education about GST: Peoples and consumers have no
proper knowledge about Goods & Service Tax that’s why it was the
difficult task to find outs the people’s views about GST.
4. Lack of Time: My MBA Research study project time period was
very short.
5. Limitations of Funds: I didn’t have financial support to conduct
my MBA Research Study.
6. Short Sample Size: My study is limited by the sample size; my
sample size is very small.
7. Lack of Proper Guidance: It is the big limitation to conduct the
Research Study because my university didn’t provide me proper
guidance under the experts of research.

46
CONCLUSION

47
11. CONCLUSION
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. But GST gives negative impact on some
peoples who have no proper knowledge about GST & indirect taxes. And
Goods & Service Tax has also Negative impact on consumer spending
behaviour towards the “comfort items/commodities” Like: (Electronic
items, Sports Equipments, Internet Services, and Broadband
Connections Etc.) and Essential Commodities/Necessary daily routine
products & service. But 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.

48
BIBLIOGRAPHY
✓References
(Impact of GST on Spending Behaviour of
Consumer in India)

49
12. BIBLIOGRAPHY
References:
1. https://en.wikipedia.org/wiki/Goods_and_Services_Tax_(India)
2. https://www.gstindia.com/basics-of-gst-implementation-in-india
3. https://www.policybazaar.com/financial-tools-calculators/gst-calculator
4. https://www.youtube.com/watch?v=3eotPsfp9q4
5. https://www.youtube.com/watch?v=9W4RCg4OnSM
6. Dr. AMULYA M,(Sep. 2019)“Impact of GST on Spending Habits of the
Consumers in Mysore” Assistant Professor, B.N. Bahadur Institute of
Management Sciences University of Mysore, Manasagangothri, Mysore.
7. Gupta Archit, (29th March 2017) “GST- impact on common man” Financial
Express.
8. Dani S Shefali, (2016) “A Research Paper on “Impact of Goods and Service
Tax (GST) on Indian Economy”, Business Economic Journal, volume 7,
9. Dr. V. Chitra, (July-2019) “Impact of GST on Spending Behaviour of the
Consumers” International Journal of Management, Head, Department of
Commerce (Honours), Shri S.S. Shasun Jain College for Women, Chennai,
India .
10.Dr. Yogesh Kailashchandra Agrawal (2017) "Goods and Services Tax and
Its Impact on Indian Economy"

50
ANNEXTURE/APPENDIX
✓Questionnaire
(Impact of GST on Spending Behaviour of
Consumer in India)

51
13. APPENDIX
QUESTIONNAIRE
This Questionnaire Prepared regarding to collect the data about “IMPACT OF GST
ON SPENDING BEHAVIOUR OF CONSUMERS IN INDIA” so please fill the
questionnaire very carefully and choose the option which suits you the most.
NAME: ........................
GENDER:
• Male
• Female
• Transgender
• Prefer not to say
AGE:
• Bellow 18 Year
• 18 - 25
• 25 - 30
• 30 – 40
• Above 40 Year
PLACE: .......................
DEPARTMENT: (if any)............................
OCCUPATION:
• Student
• Government Employee
• Private Employee
• Self Employed
• Businessman
• Home Maker

52
Q-1. Goods and service tax is Effective to increase the consumers spending
ability.
• Strongly Disagree
• Disagree
• Neutral
• Agree
• Strongly Agree
Q-2. GST Act is show the very strong relationship between "Income & Electronic
Items".
• Disagree
• Neutral
• Agree
• Strongly Agree
Q-3. GST Act is Decrease the consumer buying ability for "Sports Equipments".
• Disagree
• Neutral
• Agree
• Strongly Agree
Q-4. GST Act is show the very strong relationship between "Necessary Routine
Household Products and Income".
• Disagree
• Neutral
• Agree
• Strongly Agree

53
Q-5. Goods and Service Tax Act motivates to consumers to consume the
electronic items.
• Disagree
• Neutral
• Agree
• Strongly Agree
Q-6. GST eliminates the cascading tax effect on products and services?
• Disagree
• Neutral
• Agree
• Strongly Agree
Q-7. Goods & Service tax affects on which items and services the most?
• Routine Household goods
• Electronic Items
• Entertainment Services
• (a) & (b) Both
• None of these
Q-8. GST reduces the possibility of tax evasion and frauds.
• Disagree
• Neutral
• Agree
• Strongly Agree

54
Q-9. GST slab rates should be increased to more than 12% for "Egg Tray".
• Disagree
• Neutral
• Agree
• Strongly Agree
Q-10. 12% GST levied on Medical and Pharmaceutical Supplies. Should it be
reduced?
• Disagree
• Neutral
• Agree
• Strongly Agree
Q-11. Which of the following items and services is most effected by Goods and
Service Tax.
• Telephone Services
• Tobacco Products
• Sports Equipment
• Electronic Items
• (c) & (d) Both
Q-12. GST rates should be reduced for Beer, Wine, Rum, Whiskey, Brandy and
Vinegar from 28% rates.
• Disagree
• Neutral
• Agree
• Strongly Agree

55
Q-13. GST rates should be increased to more than 28% for Tobacco Products.
• Disagree
• Neutral
• Agree
• Strongly Agree
Q-14. GST rates should be reduced for Entertainment events-amusement
facility, water parks, theme parks, joy rides, merry-go-round, race course, go-
carting, casinos, ballet, sporting events like IPL from 28% taxes.
• Disagree
• Neutral
• Agree
• Strongly Agree
Q-15. GST should be reduced for food/drinks at AC 5-star hotels from 28% slab
rates.
• Disagree
• Neutral
• Agree
• Strongly Agree
Q-16. Some people consider GST to be a burden, but according to the
Government of India it remains the indirect taxes.
• Disagree
• Neutral
• Agree
• Strongly Agree

56
Q-17. Goods and Service Tax would eliminate the remaining indirect taxes and
reduces the cost of products.
• Disagree
• Neutral
• Agree
• Strongly Agree
Q-18. Which of these items & services should be tax free?
• Mineral Water
• Butter & Ghee
• Pharmaceuticals & Medical Supplies
• (a),(b) & (c)
• None of these
Q-19. Peoples have reduced drug consumption due to Goods and Service Tax.
• Disagree
• Neutral
• Agree
• Strongly Agree
Q-20. Did the government do well by ending Value Added Tax?
• Disagree
• Neutral
• Agree
• Strongly Agree

57
Q-21. As per the Income Tax Act, GST is directly affected to all the consumer of
India.
• Disagree
• Neutral
• Agree
• Strongly Agree
Q-22. Is there any accounting Burdon of GST on Businessman?
• Disagree
• Neutral
• Agree
• Strongly Agree
Q-23. Currently GST rate for Wine, Beer, Rum, Whiskey, Brandy & Vinegar is
28% Slab, as per your observation what should be the slab rate for these type of
items?
• 05%
• 12%
• 18%
• More than 28%
• 28% Sufficient
Q 24. As per your Observation rate of GST is impact on Substitute Goods?
• Disagree
• Neutral
• Agree
• Strongly Agree

58
Q-25. As per your Observation GST impact on which goods the most?
• Durable Goods
• Non Durable Goods
• Semi Finished Goods
• Finished Goods
• Normal Goods
SIGNATURE
Suggestion & Feedback:
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