gst impact analysis

1. GOODS AND SERVICES TAX
IMPACT ON BUSINESS
STUDY OF IMPACT ON EMPLOYEES IN
RELIANCE RETAIL LIMITED [RELIANCE

2. GOODS AND SERVICES TAX
 “One nation one tax”
 It was first implemented in France in 1954
 Structured for efficient tax collection, reduction
in corruption, easy inter-state movement of
goods etc.
 Levied on all transactions happening during the
entire manufacturing chain.
 Thereby making India a UNIFIED MARKET
 Facilitate Indian businesses to be globally
competitive

3. CGST, SGST AND IGST
 CGST or CENTRAL GOODS AND SERVICES TAX
It is the tax rate levied on the INTRA-STATE SUPPLY
of goods and services by the center or central
government.
 SGST or STATE GOODS AND SERVICES TAX
It is the tax rate levied on the INTRA-STATE SUPPLY
of goods and services by the state government.
 IGST or INTEGRATED GOODS AND SERVICES TAX
It is levied on inter-state supply of goods and
services which is collected by Centre. IGST is also
APPLICABLE ON IMPORTS.

4. RELIANCE RETAIL LIMITED
[RELIANCE MARKET]
COMPANY PROFILE

5. RELIANCE MARKET
Reliance
Market’s
strong own
brand
portfolio
further
brings
relevant
offerings to
its shelves
thereby
providing a
large variety
of core and
complimenta
ry products.
 Traditional retail is characterized by presence of
over 15 million KIRANA SHOPS in the country.
These shops operate their retail business on a
fragmented distribution network with the presence
of a number of intermediaries.
 RELIANCE MARKET, the wholesale CASH AND
CARRY store chain of RELIANCE RETAIL LIMITED.
 It aims at supporting their growth and providing
them with a modern distribution system.
 Reliance Retail opened the first Reliance Market in
2011 and since then Reliance Market has grown
rapidly expanding to 37 cities and serving over 2.5
million member partners.

6. OBJECTIVE OF THE STUDY
 PRIMARY OBJECTIVE
 Decoding the impact of goods and services tax on
retail sector
 SECONDARY OBJECTIVES
 To analyze the business situation.
 To learn project planning practices after GST
implementation of the company.
 To study the application of the theoretical
knowledge of GST in actual organization.

7. RESEARCH METHODOLOGY
 PRIMARY DATA
The primary data taken in this project is
collected from the employees of Reliance
Retail through questionnaire and interview.
 SECONDARY DATA
The secondary data collected for this project
report was from the website of the organization
itself and some other relevant websites.

8. DATA ANALYSIS AND INTERPRETATION
 WHY DO YOU SUPPORT GST?
6
20
8
7
5
0
5
10
15
20
25
Broad Tax
Base
Stable Tax
income
Retain Govt.
Reserves
Improve
Economy
Other
Numberofrespondents
Reasons

9. DATA ANALYSIS AND INTERPRETATION
 WHY YOU DO NOT SUPPORT GST?
12
5
4
3
0
2
4
6
8
10
12
14
Gap between
rich and poor
Increased
Prices
Negative
Impact on
Industries
Other
Numberofrespondents
Reasons

10. DATA ANALYSIS AND INTERPRETATION
 WHAT WILL BE THE IMPACT OF GST ON THE RETAIL
INDUSTRY IN THE LONG RUN?
0
10
20
30
40
50
60
POSITIVE NEGATIVE NO IMPACT
53
12
5
Numberofrespondents
Impact of GST

11. FINDINGS
 65 % of the sample respondents were in support
of GST
 The majority of respondents who were in support
of GST agreed that GST will result in a Stable tax
income
 It has been observed that the majority of the
remaining respondents who were not in support of
GST agreed that it will increase the gap between
the rich and the poor
 It is seen that 76% of the sample respondents
said that GST will have a positive impact on the
retail industry in the long run whereas, 14% of the
respondents agreed that it will have a negative
impact

12. SUGGESTIONS
 The company must conduct regular workshops
and training sessions in order to enhance the
understandability of the Goods and Services
Tax amongst the staff of the organization
 The employees should be provided clear
information about the pros and cons of the
Goods and Services Tax.
 The organization must take feedbacks from
the employees from time to time, so as to
ascertain their opinion on Goods and Services
Tax

13. LIMITATIONS
 Limited respondents as a base
 Research limited to one organization only
 Lack of Expertise
 Time constraints
 Bias and hesitation of the respondents
 Unwillingness of providing information, the
respondents filled the questionnaire casually

14. CONCLUSION
 The Goods and Services Tax is a much
needed tax reform, and if implemented
correctly can do wonders for India’s economy
 GST is not a new phenomenon.
 Goods and Services Tax rationalizes the whole
bucket of indirect taxes and attempts to unify
most of them to make for a destination base
tax
 It is estimated that the GDP of the country will
rise by 1 to 2%.

15. SUBMITTED BY:
SHREYA DIKSHIT
IMBAF4
ROLL NO.: 1140677046
GOODS AND SERVICES TAX IMPACT ON
BUSINESS