SVKM’S Narsee Monjee College of Commerce and Economics

(AUTONOMOUS)

A STUDY ON IMPACT OF GST ON ECONOMY AND ON COMMON

MAN FROM MUMBAI

A PROJECT SUBMITTED TO

Department of Accountancy/ Commerce under Field Project/ Community Engagement

Project in the programme Bachelor of Commerce

BY

NAME ROLL NUMBER SAP ID

DHRUV MITESH ZOBALIA A047 45612230068

SAKSHAM SHAILENDRA A057 45205220065

CHAUDHARY

UNDER THE GUIDANCE OF

Dimple Batra
 SVKM’s Narsee Monjee College of Commerce and Economics
(Autonomous)

Certificate

This is to certify that Ms/Mr DHRUV and Ms/ Mr. SAKSHAM have worked and duly
completed their Field Project/ community Engagement Project Work in B.Com Semester
III / IV under the Department of Accountancy/ Commerce in the subject of “ “
(BACHELORS IN FINANCIAL MARKET) and their project is entitled, “A STUDY
ON IMPACT OF GST ON ECONOMY AND ON COMMON MAN FROM MUMBAI)”
under my supervision ( Dimple Batra). I further certify that the entire work has been
done by the learners under my guidance and that no part of it has been submitted
previously for any Degree or Diploma of any University.

It is their own work and facts reported by their personal findings and investigations.

Name and Signature of Guiding Teacher

Dimple Batra

Seal of the College

Date of submission: 12/ September/ 2024

 Declaration by learner

We the undersigned Ms / Mr. DHRUV and Mr. SAKSHAM here by, declare that the work
embodied in this project work titled “A STUDY ON IMPACT OF GST ON ECONOMY
AND ON COMMON MAN FROM MUMBAI”, Title of the Project forms our own
contribution to the project work carried out under the guidance of Dimple Batra. It has
not been previously submitted to any other University for any other Degree/ Diploma to
this or any other University.

Wherever reference has been made to previous works of others, it has been clearly
indicated as such and included in the bibliography.

We, hereby further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.

Names and Signature of the learners

Dhruv Zobalia

Saksham Chaudhary

Certified by

Dimple Batra
 Acknowledgement
To list who all have helped me is difficult because they are so numerous and the depth is so
enormous.
We would like to acknowledge the following as being idealistic channels and fresh dimensions
in the completion of this project.
We take this opportunity to thank Narsee Monjee College for giving us chance to do this
project.
We would like to thank Principal, for providing the necessary facilities required for
completion of this project.
We take this opportunity to thank the Head of the Department , for her moral support and
guidance.
We would also like to express our sincere gratitude towards our project guide whose guidance
and care made the project successful.
We would like to thank College Library, for having provided various reference books and
magazines related to our project.
Lastly, we would like to thank each and every person who directly or indirectly helped us in
the completion of the project especially our Parents and Peers who supported us throughout
our project.

Signature
HOD

Signature
Approved by Vice –Principal

Signature
Approved by Principal
 INDEX

SR NO. TOPIC PG NO.

1 Introduction to GST 1
2 Types of GST 2
3 Total GST 11
4 Conclusion of GST 13
5 Survey on Impact of GST on Common man from Mumbai 14
6 Survey Response and Analysis of Response 14
7 Survey Moments 27
8 Detailed Interpretation of the Survey 28
9 Case Study: Impact of GST on Common Man from Mumbai 30
10 Suggestions for improving GST implementation in Mumbai 33
11 Impact of GST implementation on Mumbai Residents: 35
Conclusion
12 Webliography 36
 GOODS AND SERVICE TAX (GST)
INTRODUCTION
Goods and Services Tax (GST) is a comprehensive indirect tax system implemented in India
to replace the complex and fragmented taxation structure prevailing before its introduction.
Enacted on July 1, 2017, GST aims to streamline the taxation system by amalgamating various
indirect taxes such as central excise duty, service tax, value-added tax (VAT), and others into
a single unified tax regime. It operates on the principle of value addition at each stage of the
supply chain, allowing businesses to claim input tax credits for taxes paid on inputs, thereby
mitigating the cascading effect of taxes. GST is categorized into three main components:
Central Goods and Services Tax (CGST) levied by the central government, State Goods and
Services Tax (SGST) imposed by state governments, and Integrated Goods and Services Tax
(IGST) applicable to interstate transactions and imports, collected by the central government
but distributed to destination states.

This destination-based tax system ensures that tax revenue is collected by the state where goods
or services are consumed, promoting fiscal federalism and equitable distribution of tax revenue
among states. GST has significantly simplified compliance procedures, reduced tax evasion,
and enhanced the ease of doing business in India, fostering economic growth and development.

Before the implementation of the Goods and Services Tax (GST) in India, the country's taxation
system was characterized by a complex and fragmented structure. There were multiple layers
of taxes levied by both the central and state governments, including excise duties, service tax,
value-added tax (VAT), central sales tax (CST), octroi, and various other local taxes. This
system led to inefficiencies, cascading taxes (taxes on taxes), and a high compliance burden on
businesses.

• Complexity: The pre-GST era had a complex tax structure with multiple layers of
taxation at the central and state levels. Each state had its own set of tax laws and
regulations, leading to compliance challenges for businesses operating across different
states.
• Cascading Taxes: The presence of multiple taxes often resulted in cascading taxes,
where taxes were levied on top of other taxes at different stages of production and
distribution.
• Interstate Trade Barriers: The state-based taxation system resulted in interstate trade
barriers due to the imposition of CST and entry taxes. This hindered the free movement
of goods and created inefficiencies in the supply chain.
• Tax Evasion: The complex tax structure also provided opportunities for tax evasion
and corruption. Compliance costs were high, especially for small and medium-sized
enterprises (SMEs), which often struggled to navigate the intricacies of the tax system.

1
After the implementation of GST in July 2017, India underwent a significant tax reform aimed
at simplifying the tax structure, enhancing tax compliance, and fostering economic growth. The
GST replaced multiple indirect taxes with a unified tax regime, streamlining the taxation
process and creating a common market across the country.

1. Simplified Tax Structure: GST replaced the complex web of indirect taxes with a
single, unified tax system. It introduced a dual GST model, with both central and state
components, thereby reducing tax complexity and compliance burden for businesses.
2. Uniform Tax Rates: Under GST, goods and services are taxed at standardized rates
across the country, promoting transparency and uniformity in the tax system. This has
facilitated ease of doing business and interstate trade.
3. Boost to Economic Growth: GST has contributed to the formalization of the economy
by bringing previously unregistered businesses into the tax net. It has also improved tax
compliance and revenue collection, which in turn has supported government spending
on infrastructure and welfare programs.
4. Challenges and Transition Period: The implementation of GST initially faced
challenges such as technological glitches, compliance issues, and transitional
complexities. However, over time, many of these challenges have been addressed
through policy reforms and system improvements.

Overall, the introduction of GST in India represents a significant milestone in the country's tax
reforms, aimed at fostering a more efficient, transparent, and integrated tax system conducive
to economic growth and development.

TYPE OF GST
Goods and Services Tax (GST) in India comprises three main components: Central Goods and
Services Tax (CGST), State Goods and Services Tax (SGST), and Integrated Goods and
Services Tax (IGST). CGST is levied by the central government on intra-state transactions,
while SGST is imposed by state governments on similar transactions within their jurisdiction.
IGST, collected by the central government, applies to interstate trade and imports, ensuring tax
revenue is appropriately distributed among states. Together, these components streamline the
taxation system, replacing the previous complex regime with a unified structure, enhancing
transparency, and promoting economic efficiency.

2
 CENTRAL GOODS AND SERVICE TAX (CGST)

Central Goods and Services Tax (CGST) is a key component of India's Goods and Services Tax
(GST) framework, administered by the central government. It is imposed on intra-state supplies
of goods and services, ensuring uniformity in taxation within a state or union territory. Revenue
collected through CGST remains with the central government and is utilized for national
developmental initiatives. Businesses can claim input tax credit for CGST paid on purchases,
promoting efficiency and reducing the cascading effect of taxes. CGST simplifies the tax
structure, fosters seamless trade, and contributes to the overall economic growth of the country.

Data on CGST collected by the Government across the years is shown below:

CGST (Rs. In Crores)

YEAR
MONTHS 2017 2018 2019 2020 2021 2022 2023
JANUARY 14874 17763 20944 21932 24869 29051
FEBRUARY 14763 17629 20569 21092 24435 27662
MARCH 16265 20353 19181 22973 25830 29546
APRIL 18652 21165 5066 27837 33159 38440
MAY 15866 17811 10324 16120 25036 28411
JUNE 15939 18366 18975 16331 25306 31013
JULY 10 15977 17912 16144 22197 25751 29773
AUGUST 15286 15303 17733 15906 20522 24710 28382
SEPTEMBER 15132 15318 16630 17740 20578 25271 29818
OCTOBER 14962 16464 17581 19193 23861 26039 30062
NOVEMBER 13690 16811 19592 18950 23978 25681 30420
DECEMBER 13928 16442 19962 21364 22578 26711 30443
TOTAL 73008 192676 222496 204355 260001 312799 363021

The data is presented Monthly and is considered from the year starting from 1st January to
year ended 31st December.

3
Given below is the Graphical representation of the given table:

• The GST [Goods and Services Tax] after its introduction in the year 2017 is being
widely used for almost all businesses in India and according to the graph provided it
can be interpreted that after the introduction of CGST its collection rapidly increased
till the year 2019(from 73007Cr to 2,22,496Cr) as more and more businesses were
being registered under GST thus increasing its collection.

• However, after 2019 there has been a slight dip in the collection of CGST (to approx.
2,04,354 crores) the probable reason for the same would be the imposition of the
nationwide lockdown due to which only essential items were being sold for more than
a month due to which the CGST collection dropped significantly.

• also due to the decline in income during the COVID-19 lockdown people had stopped
spending on luxury items and since the percentage of GST is charged higher on
luxury goods (28%) as compared to other goods the CGST collection saw a decline.

• However, by the third quarter of 2021 the COVID-19 restrictions were eased which
increased both domestic and international travel and people again slowly came back
to their normal course of life which again caused a boom in the CGST collection in
India wherein the CGST collection increased from 2,04,354 crores in 2021 to a
whopping 3,63,021 crores in 2023 till December.

4
 STATE GOODS AND SERVICE TAX (SGST)

State Goods and Services Tax (SGST) is a vital component of India's Goods and Services Tax
(GST) system, administered by state governments. It is levied on intra-state supplies of goods
and services, ensuring uniformity in taxation within a state or union territory. Revenue
collected through SGST remains with the respective state government and contributes to state
finances, funding various developmental projects and public services. Like CGST, businesses
can claim input tax credit for SGST paid on purchases, promoting efficiency and reducing tax
cascading. SGST plays a crucial role in simplifying the tax structure, fostering interstate
trade, and supporting the economic development of individual states.

Data on SGST collected by the Government across the years is shown below:

SGST (Rs. In Crores)

YEAR
MONTHS 2017 2018 2019 2020 2021 2022 2023
JANUARY 21543 24826 28223 28025 32239 36847
FEBRUARY 20621 24196 27348 27273 30779 34815
MARCH 22055 27520 25598 29329 32378 37314
APRIL 25704 28803 5950 35621 41793 47412
MAY 21691 24462 12905 20739 32001 35828
JUNE 21989 25343 23965 20341 32406 38292
JULY 10 22293 25007 21415 28541 32807 37623
AUGUST 23314 21154 24239 21064 26605 30951 35794
SEPTEMBER 21980 21061 22598 23130 26767 31813 37657
OCTOBER 22345 22826 23674 25411 30421 33396 38171
NOVEMBER 20294 23069 27145 25245 31127 32651 38226
DECEMBER 19700 22460 26792 27802 28658 33357 37935
TOTAL 107642 266465 304605 268056 333446 396571 455915

The data is presented Monthly and is considered from the year starting from 1st January to
year ended 31st December.

5
Given below is the Graphical representation of the given table:

• Starting from 2017 from the total SGST collected by govt. is 1,07,642Cr and then
moving onto 2018 we can clearly observe a rise in collection as it went up to 2,66,465Cr
it can because of better enforcement and increased compliance that is with the
implementation of GST in July-17.

• Then leading to 2019, there is an increase in collection by 3,81,404Cr due to economic

growth, but then coming onto 2020 2,68,056.5Cr we can see a major downfall of all
times as it was year of global economic slowdown and because of pandemic Covid-19
there was a Decrease in consumption all over world as people were staying indoors and
businesses were either closed or operating at reduced capacity during lockdowns.

• After that in 2021, things got bit better or can be said that it came to almost the same
rate as it was before the COVID-19 that is 333446Cr.

• In 2022, 396570.7Cr by trend line we observe that SGST rose due to many reasons like
change in Tax rates and structure any changes in these can impact overall collections
so if there were adjustments in to tax rates certain goods and services were brought
under GST leading to generate higher revenues

6
 INTEGRATED GOODS AND SERVICE TAX (IGST)

Integrated Goods and Services Tax (IGST) is a significant component of India's Goods and
Services Tax (GST) regime, managed by the central government. It is levied on interstate
supplies of goods and services as well as on imports. IGST replaces the earlier system of
multiple taxes on interstate transactions, ensuring seamless movement of goods and services
across state borders. Revenue collected through IGST is distributed to the destination states,
where the goods or services are consumed, promoting equitable tax distribution. Businesses
can claim input tax credit for IGST paid on their purchases, streamlining the tax system and
reducing the burden of double taxation. IGST plays a pivotal role in facilitating interstate trade,
promoting economic integration, and fostering a unified national market in India.

Data on IGST collected by the Government across the years is shown below:

IGST (Rs. In Crores)

YEAR
MONTHS 2017 2018 2019 2020 2021 2022 2023
JANUARY 23793 27168 29532 32869 36983 42561
FEBRUARY 22779 25569 27758 30871 33635 39380
MARCH 23992 26897 26450 31745 35339 40404
APRIL 29298 31445 7955 38882 45234 54186
MAY 24673 25016 16060 25735 35876 39591
JUNE 25001 25792 24593 23417 35785 41256
JULY 32 25099 26366 22266 29964 38098 44691
AUGUST 26949 23363 24140 23085 29363 35715 39701
SEPTEMBER 25001 24762 22972 25042 31356 39249 42477
OCTOBER 25879 26511 25071 29163 34362 44481 49188
NOVEMBER 22672 25593 28078 29721 34649 38468 47810
DECEMBER 22048 24316 26804 30371 31628 38172 42721
TOTAL 122549 299181 315319 291995 374843 457033 523968

The data is presented Monthly and is considered from the year starting from 1st January to
year ended 31st December.

7
Given below is the Graphical representation of the given table:

• The GST after its introduction in the year 2017 is being widely used for almost all types
of businesses in India and according to the graph provided it can be interpreted that
after the introduction of IGST its collection rapidly increased till the year 2019 (from
1,22,548 crores to 3,15,318 crores) as more and more businesses were being registered
under GST thus increasing its collection.

• However, after 2019 there has been a slight dip in the collection of CGST (to 2,91,994
crores) the probable reason for the same would be the imposition of the nationwide
lockdown due to which there were huge restrictions on travel and transport thus
reducing movement of goods between different states.

• Because of these causes the overall collection of IGST declined causing a reduction in
tax collection.

• Also, along with this the Indian Government decided to reduce the tax rates on certain
medical supplies and essential goods in the fight against COVID-19 pandemic thus
resulting in the decline of the overall collection of IGST, like medicines, oxygen
concentrators, testing kits and hand sanitisers to 5% until September 30 2021.

• However, by the third quarter of 2021 the COVID-19 restrictions were eased which
increased both domestic and international travel and transportation thus increasing the
tax income again.

8
 INTEGRATED GOODS AND SERVICE TAX ON IMPORTS

Integrated Goods and Services Tax (IGST) on imports is a crucial component of India's Goods
and Services Tax (GST) framework, overseen by the central government. When goods or
services are imported into India, IGST is levied by the central government at the point of entry.
Unlike other forms of GST, IGST ensures that tax revenue is collected by the central
government and then distributed to the destination states where the imported goods or services
are consumed. This eliminates the complexities of multiple taxes and ensures a seamless flow
of goods across state borders. Additionally, businesses importing goods can claim input tax
credit for the IGST paid, promoting efficiency and reducing the tax burden. Overall, IGST on
imports simplifies the tax structure, facilitates international trade, and contributes to the
economic development of the nation.

Data on IGST on Imports collected by the Government across the years is shown below:

IGST ON IMPORTS (Rs. In Crores)

YEAR
MONTHS 2017 2018 2019 2020 2021 2022 2023
JANUARY 21546 24056 23481 27424 37199 38434
FEBRUARY 19603 21384 20745 24382 33837 35689
MARCH 22333 23521 18056 31097 39131 42503
APRIL 21246 23289 12074 27996 36705 34972
MAY 24447 24875 16640 26002 37469 41772
JUNE 24493 21980 15709 25762 40102 39035
JULY 20926 24852 24246 20324 27900 41420 41239
AUGUST 23068 26512 24818 19179 26884 42067 43550
SEPTEMBER 23929 25308 22097 22442 29555 41215 41145
OCTOBER 22116 26908 21446 23375 32998 37297 42127
NOVEMBER 20026 24133 20948 22078 32165 38635 39198
DECEMBER 20717 23635 21295 27050 37527 40263 41534
TOTAL 130782 243867 273955 241153 349692 465340 481198

The data is presented Monthly and is considered from the year starting from 1st January to
year ended 31st December.

9
Given below is the Graphical representation of the given table:

• Starting from 2017 from the total IGST on imports collected by govt. is 1,30,782Cr and
then moving onto 2018 we can clearly observe a rise in collection as it went up to
2,43,867Cr it can be because of standardization as with implementation of GST the tax
structure became standardized across the country and also because of Improved trade
facilitation.
• Then leading to 2019 there is an increase in collection by 273955Cr due to economic
growth, but then coming onto 2020, 241153Cr we can see a major downfall or dip of
all times as it was year of global economic slowdown and because of pandemic Covid-
19 there was a Currency fluctuation as exchange rate fluctuations can affect the cost of
imported goods with respect to shift in consumer preferences and Supply chain
disruptions.
• After that in 2021, things really better or can be said that it came to almost the same
rate as it was before and in fact a lot more as it was before the COVID-19 that is
349692Cr.
• In 2022, 465340Cr by trend line we observe that IGST on imports rose really high due
to many reasons like Increased demand a sudden surge in demand for imported goods
could lead to higher import volumes and subsequently increased IGST collections and
also due to Tariff changes as changes in tariff changes or trade policies could impact
the cost imported goods, influencing import volumes and IGST.

10
 TOTAL GOODS AND SERVICE TAX

As per the above data we can find the total changes in the GST over the course of years. Total
GST can be Calculated by adding up CGST, SGST and IGST:

TOTAL GST (Rs. In Crores)

YEAR
GST 2017 2018 2019 2020 2021 2022 2023
CGST 73008 192676 222496 204355 260001 312799 363021
SGST 107642 266465 304605 268056 333446 396571 455915
IGST 122549 299181 315319 291995 374843 457033 523968
TOTAL 303199 758322 842420 764406 968290 1166403 1342904

The data is computed on Yearly Totals and is considering the year starting from 1st January to
year ended 31st December.

Given below is the Graphical representation of the given table:

11
 • 2017 to 2018: There is a significant jump in GST collection from 2017 to 2018. This
can be attributed to the initial implementation phase of GST, where businesses were
adapting to the new tax regime, resulting in increased compliance and revenue
collection.

• 2018 to 2019: GST collection continues to rise steadily in this period. Businesses have
now adapted to the GST framework, leading to improved compliance and higher
revenue collection. Economic growth and increased consumption may also contribute
to this rise.

• 2019 to 2020: There is a slight decrease in GST collection from 2019 to 2020. This
could be due to economic slowdown factors, such as reduced consumer spending,
declining industrial output, and global trade tensions, impacting overall tax revenues.

• 2020 to 2021: Despite the challenges posed by the COVID-19 pandemic, GST
collection sees a notable recovery and significant growth. This could be attributed to
government measures to stimulate economic activity, including relief packages,
liquidity support, and easing of compliance requirements.

• 2021 to 2022: GST collection continues to grow substantially, reflecting the resilience
of the economy post-pandemic. Economic recovery, increased consumption, and
government initiatives to boost investment and consumption likely contribute to this
growth.

• 2022 to 2023: GST collection experiences another significant increase. This could be
attributed to sustained economic growth, improved compliance, and ongoing reforms
to streamline the tax system, enhancing revenue collection efficiency.

Overall, the rise and fall of GST in each year are influenced by various factors, including
economic conditions, policy measures, business cycles, and global trends. Despite
fluctuations, the overall trend indicates a positive trajectory in GST collection, reflecting the
effectiveness of the tax reform in enhancing revenue mobilization and fostering economic
growth.

12
CONCLUSION
In conclusion, the introduction of Goods and Services Tax (GST) in India marks a significant
milestone in the country's tax reforms, aimed at simplifying the tax structure, enhancing
compliance, and fostering economic growth. The transition from the pre-GST era,
characterized by a complex and fragmented tax system, to the unified GST regime has brought
about notable improvements in tax administration, transparency, and efficiency. Through the
amalgamation of various indirect taxes into a single tax system, GST has streamlined
compliance procedures, reduced tax evasion, and promoted ease of doing business.

The data presented reflects the evolution of GST collection over the years, showcasing both
the challenges and successes of the tax reform. Despite fluctuations influenced by economic
conditions and policy measures, the overall trend indicates a positive trajectory in GST
revenue, underscoring the effectiveness of GST in enhancing revenue mobilization and
supporting economic development.

Moving forward, continued efforts are required to address challenges such as technological
advancements, compliance issues, and policy reforms to further strengthen the GST
framework. Measures to improve taxpayer education, simplify compliance procedures, and
address structural bottlenecks will be crucial in maximizing the potential of GST to drive
sustainable economic growth and development.

In conclusion, while GST has laid a solid foundation for tax reform in India, ongoing efforts
and reforms are necessary to realize its full potential and ensure inclusive and equitable growth
for all segments of society. By leveraging the lessons learned from the implementation of GST
and adopting a forward-thinking approach, India can continue to enhance its tax system and
foster a conducive environment for business growth and investment.

13
SURVEY ON IMPACT OF GST ON COMMON MAN FROM
MUMBAI

We have conducted a survey on Impact of GST on common man from Mumbai. This survey
aims to understand the impact of the Goods and Services Tax (GST) on the common man in
Mumbai. By gathering insights from individuals across various socio-economic backgrounds,
we seek to assess the changes in prices, consumer behaviour, and overall economic well-
being brought about by the implementation of GST.
The findings from this survey will provide valuable insights into the real-world effects of
GST on the lives of Mumbai residents and contribute to ongoing discussions about the
effectiveness and potential improvements of this significant tax reform.

The survey will explore various aspects of GST's influence, including its impact on prices,
consumer behavior, household budgets, and overall economic well-being. By analyzing the
responses, we hope to identify trends, patterns, and challenges faced by Mumbai residents in
adapting to the new tax regime.

The findings from this survey will provide valuable information for policymakers,
economists, and businesses to evaluate the success of GST and inform future policy
decisions.

SURVEY RESPONSES AND ANALYSIS OF RESPONSES

1. Gender of the Respondent

• Male: 60% of respondents are male.

• Female: 40% of respondents are female.

14
 2. Age of the Respondents

• 0-18: 17.5% of respondents are under 18 years old.

• 19-25: 30% of respondents are between 19 and 25 years old.
• 25-30: 12.5% of respondents are between 25 and 30 years old.
• 31 and above: 40% of respondents are 31 years old or older.

Overall, the survey respondents represent a diverse age group, with a slightly higher proportion
of younger individuals (under 30) compared to older respondents.

3. Income of the Respondents

• 0-3 lakhs: 15% of respondents earn between 0 and 3 lakhs per annum.
• 3 lakhs - 7 lakhs: 22.5% of respondents earn between 3 and 7 lakhs per annum.
• 7 lakhs - 12 lakhs: 35% of respondents earn between 7 and 12 lakhs per annum.
• 12 lakhs - 15 lakhs: 22.5% of respondents earn between 12 and 15 lakhs per annum.
• 15 lakhs and above: 5% of respondents earn 15 lakhs or more per annum.

Based on this data, the majority of respondents (77.5%) fall within the middle-income
range (3 lakhs - 15 lakhs per annum).

15
 4. How has GST affected the prices of daily essentials?

• Overwhelming majority (75%) perceive a significant increase in prices. This

indicates that GST has had a substantial impact on the cost of living for most
respondents.
• A smaller portion (12.5%) reported a slight increase, suggesting that while the
impact was noticeable, it wasn't as dramatic.
• Only 12.5% observed no change in prices, indicating that for some, GST did not
significantly affect the cost of daily necessities.

Overall, the data strongly suggests that GST has led to a price increase for the majority
of respondents, reinforcing the perception that the tax has had a substantial impact on
the cost of living.

5. Effect of GST on Monthly Income.

The graph illustrates the impact of GST on respondents' monthly household budgets.

16
Key findings:

• The majority (62.5%) reported that GST has significantly increased their monthly
expenses.
• A smaller portion (20%) indicated a slight increase in expenses.
• Only 10% stated that GST has not made any difference to their household budget.
• A very small percentage (10%) reported a decrease in expenses due to GST.

Overall, the data suggests that GST has had a significant negative impact on the
household budgets of most respondents.

6. Impact on Purchase of Big-Ticket Item.

The graph illustrates how GST has impacted respondents' purchasing decisions for big-
ticket items.

Key findings:

• The majority (60%) have delayed or canceled purchases due to GST.

• A significant portion (30%) have become more cautious but still make purchases.
• Only 7.5% have not had their purchasing decisions affected by GST.
• A small percentage (7.5%) find it more economical to purchase big-ticket items
now.

Overall, the data suggests that GST has significantly influenced purchasing decisions
for big-ticket items, with many respondents delaying or canceling purchases or
becoming more cautious in their spending.

17
 7. Effect on Cost of Education.

The graph illustrates the impact of GST on the cost of education.

Key findings:

• The majority (57.5%) reported a significant increase in education costs due to GST.
• A significant portion (25%) noted a slight increase.
• Only 15% saw no change in education costs.
• A small percentage (5%) reported a decrease in education costs.

Overall, the data suggests that GST has had a significant negative impact on the cost of
education for most respondents.

8. Impact on Services like mobile and Internet bills.

The graph illustrates the impact of GST on the prices of services like mobile and
internet bills.

18
Key findings:

• The majority (55%) reported a significant increase in prices.

• A significant portion (25%) noted a slight increase.
• Only 15% saw no change in prices.
• A small percentage (5%) reported a decrease in prices.

Overall, the data suggests that GST has had a significant negative impact on the prices
of mobile and internet bills for most respondents.

9. Are benefits of GST passed on to the customers?

The graph illustrates respondents' beliefs about whether the benefits of GST are being
passed on to consumers.

Key findings:

• The majority (47.5%) believe that the benefits of GST are being passed on to
consumers, but only partially.
• A significant portion (30%) believe that the benefits are not being passed on at all.
• 12.5% are unsure about whether the benefits are being passed on.
• Only 10% believe that the benefits are being passed on definitively.

Overall, the data suggests that while some respondents believe that GST has brought
certain benefits to consumers, there is a significant portion that feels the benefits are not
being fully realized.

19
 10. Impact on Investment Decision.

The graph illustrates how GST has impacted respondents' investment decisions.

Key findings:

• The majority (40%) have seen a positive impact on their investment decisions due to
GST.
• A significant portion (35%) have been negatively impacted, leading them to invest
less.
• 17.5% have seen no impact on their investment decisions.
• Only 17.5% are unsure about the impact of GST on their investments.

Overall, the data suggests that GST has had a mixed impact on investment decisions,
with a slightly larger number of respondents reporting positive effects.

11. Are They informed about the GST and its implications?

20
The graph illustrates respondents' perceptions of their knowledge about GST and its
implications.

Key findings:

• The largest portion (35%) feel adequately informed about GST but could use more
information.
• A significant portion (27.5%) believe they are very well informed.
• 20% feel they are not well informed about GST.
• Only 17.5% feel completely uninformed.

Overall, while a majority of respondents feel at least somewhat informed, there is still a
significant portion that could benefit from more information about GST.

12. Effect on Business Owners.

The graph illustrates the impact of GST on businesses.

Key findings:

• The majority (60%) of respondents who are business owners reported a positive
impact on their profitability due to GST.
• A significant portion (32.5%) experienced a negative impact, with reduced
profitability.
• Only 7.5% saw no significant impact on their businesses.

Overall, the data suggests that GST has had a mixed impact on businesses, with a
slightly larger number reporting positive effects.

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 13. Is GST helping to reduce Black Money from the Economy?

The graph illustrates respondents' beliefs about whether GST has helped reduce black
money in the economy.

Key findings:

• The majority (67.5%) believe that GST has significantly helped reduce black
money.
• A significant portion (20%) believe it has helped to some extent.
• Only 10% believe that GST has not helped reduce black money at all.

Overall, the data suggests that a large majority of respondents believe GST has been
effective in combating black money.

14. Impact on your savings?

The graph illustrates the impact of GST on respondents' savings.

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Key findings:

• The majority (65%) reported a significant decrease in savings due to GST.

• A significant portion (15%) experienced a slight decrease in savings.
• Only 12.5% saw no change in their savings.
• A very small percentage (7.5%) reported an increase in savings.

Overall, the data suggests that GST has had a significant negative impact on the savings
of most respondents.

15. Encouragement to go digital and adopt online payment?

The graph illustrates respondents' beliefs about whether GST has encouraged more
businesses to go digital and adopt online payments.

Key findings:

• The majority (60%) believe that GST has significantly encouraged businesses to go
digital and adopt online payments.
• A significant portion (20%) believe it has encouraged digital adoption to some
extent.
• Only 15% believe that GST has not encouraged digital adoption at all.

Overall, the data suggests that a large majority of respondents believe GST has been
effective in promoting digitalization and online payments among businesses.

23
 16. Influence to cost of renting and leasing.

The graph illustrates the impact of GST on the cost of renting or leasing property.

Key findings:

• The majority (65%) reported a significant increase in the cost of renting or leasing
property due to GST.
• A significant portion (27.5%) experienced a slight increase.
• Only 7.5% saw no change in property rental or leasing costs.

Overall, the data suggests that GST has had a significant negative impact on the cost of
renting or leasing property for most respondents.

17. Impact on prices of seasonal product.

The graph illustrates the impact of GST on the pricing of seasonal products.

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Key findings:

• The majority (50%) reported a significant increase in the prices of seasonal products
due to GST.
• A significant portion (42.5%) experienced a slight increase.
• Only 7.5% saw no change in the prices of seasonal products.

Overall, the data suggests that GST has had a significant negative impact on the pricing
of seasonal products for most respondents.

18. Is the implementation of GST fair and Transparent?

The graph illustrates respondents' perceptions about the fairness and transparency of
GST implementation.

Key findings:

• The majority (67.5%) believe that GST implementation has been fair and
transparent.
• A significant portion (20%) believe it has been fair but acknowledge some issues.
• Only 10% believe that GST implementation has not been very transparent.
• A very small percentage (2.5%) believe that GST implementation has been
completely unfair and transparent.

Overall, the data suggests that a large majority of respondents are satisfied with the
fairness and transparency of GST implementation.

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 19. Has GST achieved its intended objectives?

The graph illustrates respondents' overall perceptions about whether GST has achieved
its intended objectives.

Key findings:

• The majority (55%) believe that GST has achieved its intended objectives.
• A significant portion (30%) believe that GST has achieved its objectives only
partially.
• Only 10% believe that GST has not achieved its intended objectives at all.

Overall, the data suggests that a large majority of respondents are satisfied with the
overall performance of GST.

26
Survey Moments

27
Detailed Interpretation of the Survey
Price Increases

• Significant Price Hikes: A majority of respondents (75%) reported a substantial

increase in the prices of daily essentials due to GST. This indicates that GST has had
a widespread and significant impact on the cost of living.
• Impact on Specific Categories: The survey also revealed that GST has led to
significant price increases in education (57.5%), services like mobile and internet bills
(80%), and seasonal products (50%).

Household Budgets

• Strained Finances: Over 80% of respondents indicated that GST has increased their
monthly household expenses. This suggests that the tax has placed a considerable
burden on household budgets.

Purchasing Decisions

• Delayed or Canceled Purchases: Many respondents (50%) have delayed or canceled

purchases of big-ticket items due to GST. This highlights the impact of GST on
consumer spending patterns.

Economic Well-being

• Mixed Impacts: The overall impact of GST on economic well-being is mixed. While
some respondents have experienced increased expenses and reduced savings, others
have reported positive effects on their businesses or investments.
• Need for Further Analysis: A more detailed analysis is needed to fully understand
the long-term economic implications of GST.

Investment Decisions

• Positive and Negative Impacts: GST has had a mixed impact on investment
decisions. While 40% of respondents reported positive effects, 35% saw negative
impacts.
• Uncertainty: A significant portion of respondents (17.5%) were unsure about the
impact of GST on their investments.

Awareness and Information

• Room for Improvement: While a majority of respondents feel somewhat informed

about GST, there is still a need for more information and education.

Business Impact

28
 • Mixed Results: GST has had a mixed impact on businesses. While 60% of business
owners reported positive effects, 32.5% experienced reduced profitability.
• Sector-Specific Analysis: Further analysis is needed to understand how GST has
affected different sectors and business sizes.

Black Money

• Effective in Combating Black Money: A large majority of respondents believe that

GST has been effective in reducing black money. This suggests that GST has
contributed to a more transparent and formal economy.

Digital Adoption

• Boost to Digitalization: GST has significantly encouraged businesses to go digital

and adopt online payments, promoting a more digital economy.

Property Costs

• Increased Costs: Renting or leasing property has become more expensive for most
respondents due to GST.

Fairness and Transparency

• Positive Perception: A majority of respondents believe that GST implementation has

been fair and transparent.

Achieving Intended Objectives

• Overall Satisfaction: A majority of respondents believe that GST has achieved its
intended objectives, although some perceive it only partially successful.

Overall, the survey suggests that GST has had a significant impact on the lives of
Mumbai residents, with both positive and negative consequences. While it has
successfully addressed certain objectives, such as reducing black money and promoting
digitalization, it has also led to increased prices, reduced savings, and challenges for
businesses.

Further analysis and research are needed to fully understand the long-term
implications of GST and to identify potential areas for improvement.

29
Case Study: The Impact of GST on Mumbai Residents
Introduction
This case study aims to analyze the findings of a survey conducted on Mumbai residents to
understand the impact of the Goods and Services Tax (GST) on their lives. The survey
gathered data on various aspects of GST's influence, including price changes, household
budgets, purchasing decisions, and overall economic well-being.

Methodology
The survey was conducted through online and offline questionnaires distributed to a
representative sample of Mumbai residents. The sample included individuals from different
age groups, income levels, and socio-economic backgrounds.

Key Findings

• Significant Price Increases:

The majority of respondents reported a substantial increase in the prices of daily

essentials due to GST. This indicates that GST has had a widespread and significant
impact on the cost of living.

• Strained Household Budgets:

Over 80% of respondents indicated that GST has increased their monthly household
expenses, suggesting a considerable burden on household budgets.

• Impact on Purchasing Decisions:

Many respondents delayed or cancelled purchases of big-ticket items due to GST,

highlighting its influence on consumer spending patterns.

• Economic Well-being:

The overall impact of GST on economic well-being is mixed. While some

respondents experienced increased expenses and reduced savings, others reported
positive effects on their businesses or investments.

• Investment Decisions:

GST has had a mixed impact on investment decisions, with some respondents
investing more and others investing less.

• Awareness and Information:

While a majority feel somewhat informed about GST, there is still a need for more
information and education.

30
 • Business Impact:

GST has had a mixed impact on businesses, with a slightly larger number reporting
positive effects.

• Black Money Reduction:

A large majority believe GST has been effective in reducing black money.

• Digital Adoption:

GST has encouraged more businesses to go digital and adopt online payments.

• Property Costs:

Renting or leasing property has become more expensive due to GST.

• Fairness and Transparency:

Most respondents believe GST implementation has been fair and transparent.

• Achieving Intended Objectives:

A majority believe GST has achieved its intended objectives, although some perceive
it only partially successful.

Analysis and Discussion

The survey findings highlight the multifaceted impact of GST on Mumbai residents. While it
has successfully addressed certain objectives, such as reducing black money and promoting
digitalization, it has also led to increased prices, reduced savings, and challenges for
businesses.

Positive Impacts

• Reduced Black Money:

GST has been effective in combating black money, contributing to a more transparent
and formal economy.

• Digital Adoption:

GST has encouraged businesses to adopt digital technologies and online payments,
promoting a more efficient and modern business environment.

Negative Impacts

• Price Increases:

31
 The significant increase in prices of daily essentials, services, and seasonal products
has placed a considerable burden on household budgets.

• Strained Finances:

Many respondents reported a decline in their savings due to increased expenses,

indicating a negative impact on their financial well-being.

• Purchasing Decisions:

GST has influenced purchasing decisions, with many respondents delaying or

cancelling purchases.

Further Analysis

To gain a deeper understanding of GST's impact, further analysis could focus on:

• Sector-Specific Impacts:

Examining how GST has affected specific sectors of the economy, such as
manufacturing, services, and agriculture.

• Regional Variations:

Analysing differences in GST's impact across different regions of Mumbai.

• Long-Term Effects:

Assessing the long-term economic implications of GST, including its impact on

growth, employment, and inflation.

• Comparison with Other Tax Reforms:

Comparing the effectiveness of GST with other tax reforms implemented in India or
other countries.

• Policy Recommendations:

Identifying potential improvements or modifications to the GST system based on the

survey findings.

Conclusion
The survey provides valuable insights into the impact of GST on Mumbai residents. While it
has achieved certain objectives, it has also led to challenges and trade-offs. Further research
and analysis are needed to fully understand its long-term implications and inform future
policy decisions.

32
Suggestions for Improving GST Implementation in Mumbai
Based on the findings of the survey, here are some recommendations for improving the
implementation of GST in Mumbai:

Addressing Price Increases

• Rationalize Tax Rates:

Review and potentially reduce tax rates on essential goods and services to mitigate the
impact on consumer prices.

• Improve Input Tax Credit (ITC) Utilization:

Simplify the ITC process and ensure timely refunds to businesses to reduce their costs
and prevent cascading effects on prices.

• Monitor Price Increases:

Implement stricter measures to monitor price increases and prevent unjustified hikes
by businesses.

Easing the Burden on Household Budgets

• Targeted Relief Measures:

Provide targeted relief measures, such as tax exemptions or rebates, to low-income

households and vulnerable groups to alleviate the financial burden of GST.

• Promote Affordable Housing:

Implement policies to promote affordable housing and reduce the impact of GST on
housing costs.

Stimulating Consumer Spending

• Temporary Tax Reductions:

Consider temporary tax reductions on certain categories of goods and services to

boost consumer spending and stimulate economic growth.

• Incentivize Home Purchases:

Introduce incentives or tax benefits to encourage home purchases, which can

stimulate related industries.

33
Improving Business Efficiency
• Simplify Compliance:

Further simplify the GST compliance process to reduce the burden on businesses and
improve their efficiency.

• Technology Adoption:

Promote the adoption of technology solutions to streamline GST processes and reduce
compliance costs.

Addressing Information Gaps

• Enhanced Awareness Campaigns:

Conduct more targeted awareness campaigns to educate consumers and businesses

about GST, its implications, and compliance requirements.

• Simplified Information Resources:

Provide clear and accessible information resources to help individuals and businesses
understand and navigate the GST system.

Strengthening Enforcement
• Strengthen Enforcement Measures:

Implement stricter enforcement measures to prevent tax evasion and ensure

compliance with GST regulations.

• Improve Dispute Resolution:

Enhance the efficiency and transparency of the dispute resolution process to address
concerns and grievances promptly.

Long-Term Perspective
• Regular Evaluation:

Conduct regular evaluations of GST's implementation to identify areas for

improvement and make necessary adjustments.

• Continuous Engagement:

Maintain open dialogue with stakeholders, including businesses, consumers, and

industry associations, to gather feedback and address concerns.

34
The Impact of GST on Mumbai Residents: Conclusion
The Goods and Services Tax (GST) introduced in India in 2017 marked a significant tax
reform aimed at simplifying the indirect taxation system and promoting a unified market.
However, its impact on the lives of ordinary citizens has been a subject of much debate and
discussion. This case study analyzes the findings of a survey conducted on Mumbai residents
to understand the multifaceted effects of GST.

One of the most prominent impacts of GST has been on prices. A significant majority of
respondents reported a substantial increase in the prices of daily essentials, services, and
seasonal products. This has placed a considerable burden on household budgets, particularly
for low-income and vulnerable groups. The increase in prices has also led many consumers to
delay or cancel purchases of big-ticket items, impacting consumer spending patterns.

While GST has successfully addressed certain objectives, such as reducing black money and
promoting digitalization, it has also had negative consequences. The survey revealed that the
overall impact of GST on economic well-being is mixed. While some respondents have
experienced increased expenses and reduced savings, others have reported positive effects on
their businesses or investments.

The impact of GST on businesses has also been varied. While some businesses have
benefited from the simplified tax regime and increased efficiency, others have faced
challenges such as reduced profitability and increased compliance costs. The sector-specific
impacts of GST require further analysis to understand how different industries have been
affected.

In terms of investment decisions, GST has had a mixed impact. While some respondents have
invested more due to GST, others have become more cautious or reduced their investments.
The overall effect on investment patterns is a complex issue that requires further study.

The survey also highlights the importance of awareness and information regarding GST.
While a majority of respondents feel somewhat informed, there is still a need for more
education and outreach programs to ensure that individuals and businesses fully understand
the implications of GST.

Overall, the survey suggests that GST has had a significant impact on the lives of Mumbai
residents, with both positive and negative consequences. While it has achieved certain
intended objectives, it has also led to increased prices, reduced savings, and challenges for
businesses.

To gain a deeper understanding of GST's long-term implications, further analysis is needed,

focusing on sector-specific impacts, regional variations, and potential policy improvements.
By addressing the challenges and building on the positive outcomes, the government can
work towards ensuring that GST benefits the economy and its citizens in a more equitable
manner.

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WEBLIOGRAPHY

• https://1drv.ms/x/c/97744b7223bc7631/Eb9DuSSj431JkuPFCiXdHH8B2I_YsHLEdo
26RJelqXoEIg [Excel Sheet]
• https://docs.google.com/forms/d/1T4OMD3MjD4otWs0BnPYaCf5E0Podp7gkwwZ7
Xpa3Q3E/edit [Questionnaire]
• https://docs.google.com/spreadsheets/d/1pjMLzUVPkKxok7QrNjeG8Ju138S_29eNv
PH8t18ckJw/edit?resourcekey=&gid=812620741#gid=812620741
• https://www.canva.com/design/DAGAPR0uepM/65unu2m1LhZH76jrMlTcgw/edit?utm_cont
ent=DAGAPR0uepM&utm_campaign=designshare&utm_medium=link2&utm_source=share
button [Making of the Graphs]
• https://www.gst.gov.in/download/gststatistics [GST Statistics]
• https://groww.in/p/tax/types-of-gst
• https://cleartax.in/s/gst-law-goods-and-services-tax
• https://www.captainbiz.com/blogs/the-future-of-tax-and-gst-in-
india/#:~:text=In%20terms%20of%20long%2Dterm,a%20lower%20rate%20for%20necessitie
s.

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