A STUDY ON IMPACT OF THE GST ON THE DEMAND OF FOR BMW 320d AND SUGAR

1. A STUDY ON THE IMPACT OF THE GST
ON THE DEMAND FOR BMW 320d
(LUXURY GOOD) AND SUGAR
(NECESSARY GOOD)

2.  Goods and Services Tax (GST) is an indirect tax which
was introduced in India on 1 July 2017 and was
applicable throughout India which replaced multiple
cascading taxes levied by the central and state
governments
 goods and services are taxed at the following rates,
0%, 5%, 12% ,18% and 28%
 The GST is governed by a GST Council and its
Chairman is the Finance Minister of India
INTRODUCTION

3. Types of GST

4. INDUSTRY PROFILE
The automotive industry in India is one of the largest in the world with an annual
production of 23.96 million vehicles in FY (fiscal year) 2015–16, following a growth of 2.57
per cent over the last year. The automobile industry accounts for 7.1 per cent of the
country's gross domestic product (GDP).
BMW India is a 100% subsidiary of the BMW Group and is headquartered in Gup has its
sight set firmly on the premium sector of the Indian automobile marketrgaon (National
Capital Region).
The wide range of BMW activities in India include a manufacturing plant in Chennai, a
parts warehouse in Mumbai, a training center in Gurgaon NCR and development of a
dealer organization across major metropolitan centers of the country. With its three
brands, BMW, MINI and Rolls-Royce, the BMW Group

5. OBJECTIVE
1. To know the percentage of taxation on BMW 320d in the
month before
and after introducing GST.
2. To know the difference in sales of BMW 320d India in the
month after introducing GST.
3. To know the percentage of taxation on Sugar in the month
before and after introducing GST.
4. To know the difference in sales of Sugar in the month after
introducing GST.

6. METHODOLOGY
SOURCES OF DATA
Primary Data
The study is mainly based on primary data. The data for this study has collected from
the Showroom of BMW 320d Calicut and Super Bazaar Hyper Market, Calicut.
Secondary Data
The study shall make use of secondary data from various sources like books,
journals, magazines, websites etc.
Sampling Method
Convenient sampling method is used for the data collection.
TOOLS AND TECHNIQUES USED FOR THE STUDY
Presentation Tool
• Graph

7. Data analysis
TAX RATE BEFORE AND AFTER THE IMPLEMENTATION OF GST FOR BMW 320d
42.00%
42.50%
43.00%
43.50%
44.00%
44.50%
45.00%
before GST After GST
TAX RATE
TAX RATE

8. TAX RATE BEFORE AND AFTER THE IMPLEMENATION OF GST FOR SUGAR
0
1
2
3
4
5
6
7
8
before GST after GST
TAX RATE
TAX RATE

9. CONCLUSION
1. The Tax rate before introducing GST for BMW 3-series 320d was 44.50%.
2. The Tax rate after introducing GST for BMW 3-series 320d is 43%.
3. Sale of BMW 3-series 320d has increased due to the price reduction of almost 5%
in total rate of Tax.
4. The Tax Rate for Sugar before the introduction of GST was 8%.
5 The Tax Rate for Sugar after the introduction of GST is 5%.
6. Since, sugar is a necessary good, there is no much increase in sales even though
the tax rate was decreased from 8% to 5%.

10. SUGGESTIONS
1.The tax rate on necessary goods like Sugar has to be reduced so as to accommodate it
even for the low income group.
2. It is advisable to increase the tax rate for Luxury Vehicles like, BMW 3-series 320d
since it’s not going to affect the economy much, because it is a luxury