A STUDY ON IMPACT OF GST IN DAY TO DAY

LIFE
A Project Report Submitted in partial fulfillment for the award of the Degree of
MASTER OF BUSINESS ADMINISTRATION

Submitted by
Muthukarthikeyan K
Reg. No: 952623631033

Under the Guidance of

Mrs. N. Jothi Kala, MBA, M.Sc

S. Veerasamy Chettiar College of Engineering and Technology

Coimbatore
ABSTRACT
Goods and Services Tax (GST), implemented on July 1, 2017, marked a major shift in India's
indirect tax framework. This study explores the impact of GST on day-to-day life, particularly
focusing on the financial behavior of individuals in Coimbatore. Through a structured survey
involving 100 respondents, the study evaluates awareness levels, the effect on household
budgets, and perceptions regarding the price changes post-GST. The project was conducted
during an internship at Jerlak Endeavours Pvt. Ltd., where practical insights into the GST system
and consumer responses were observed. The findings suggest that while awareness about GST is
relatively high, its financial burden on essential commodities remains a concern for lower and
middle-income households.
CHAPTER I: INTRODUCTION
The Goods and Services Tax (GST) is a comprehensive tax levied on the manufacture, sale, and
consumption of goods and services throughout India. This unified tax system has replaced a
complex web of indirect taxes previously imposed by the central and state governments. The
introduction of GST has affected consumers, businesses, and service providers by modifying
pricing, billing, and tax reporting procedures.

This project focuses on analyzing how GST has influenced the financial decisions and daily
expenses of individuals in Coimbatore. It includes survey data collected from the general public,
particularly examining household spending patterns, price sensitivity, and tax literacy.
CHAPTER II: MAIN THEME OF THE PROJECT

2.1 Objectives of the Study

• To evaluate public awareness of GST in Coimbatore.
• To study the financial impact of GST on daily consumption.
• To identify how GST affects individual and household budgets.
• To assess consumer perception of pricing under GST.
• To suggest improvements in GST implementation and communication.

2.2 Scope of the Study

The scope of the study is limited to individuals in Coimbatore. It focuses on the day-to-day
financial impact of GST on consumers across different income groups. The study uses both
primary and secondary data sources to understand how GST has altered purchasing patterns,
service usage, and financial planning.

2.3 Limitations of the Study

• The study is limited to Coimbatore city and may not reflect trends across India.
• Data is collected from 100 respondents; larger samples may show more varied results.
• Responses are subject to individual awareness levels and biases.
• The research duration is limited by academic deadlines.

2.4 Review of Literature

1. Mehta, P. (2021) found that GST improved tax compliance but created confusion in pricing.
2. Sharma, R. (2020) concluded that GST burden on consumers increased for essentials.
3. Economic Times (2022) reports noted GST's success in widening the tax net.
4. IIM Bangalore study (2019) linked GST reform with reduced logistical delays.
5. Rao, M. (2023) emphasized the need for awareness drives to educate public on GST slabs.

CHAPTER III: DATA ANALYSIS AND INTERPRETATION

This chapter presents the results of a survey conducted among 100 residents of Coimbatore to
understand the impact of GST on their day-to-day financial behavior.
Table 1: Awareness of GST
Option Number of Respondents Percentage
Yes 85 85.0%
No 15 15.0%
Interpretation: This table shows the response to 'awareness of gst'. It reflects the general opinion
and perception of respondents on the subject.

Table 2: Do you receive GST bill during purchases?

Option Number of Respondents Percentage
Always 35 35.0%
Sometimes 50 50.0%
Never 15 15.0%
Interpretation: This table shows the response to 'do you receive gst bill during purchases?'. It
reflects the general opinion and perception of respondents on the subject.

Table 3: GST impact on price of daily items

Option Number of Respondents Percentage
Increased 60 60.0%
Decreased 10 10.0%
No Change 30 30.0%
Interpretation: This table shows the response to 'gst impact on price of daily items'. It reflects the
general opinion and perception of respondents on the subject.

Table 4: Awareness about GST slabs

Option Number of Respondents Percentage
Yes 40 40.0%
No 60 60.0%
Interpretation: This table shows the response to 'awareness about gst slabs'. It reflects the general
opinion and perception of respondents on the subject.

Table 5: Impact on monthly household budget

Option Number of Respondents Percentage
Increased 55 55.0%
Decreased 15 15.0%
No Change 30 30.0%
Interpretation: This table shows the response to 'impact on monthly household budget'. It reflects
the general opinion and perception of respondents on the subject.

Table 6: Has GST simplified taxation?

Option Number of Respondents Percentage
Yes 45 45.0%
No 30 30.0%
Not Sure 25 25.0%
Interpretation: This table shows the response to 'has gst simplified taxation?'. It reflects the
general opinion and perception of respondents on the subject.

Table 7: Do you support the current GST system?

Option Number of Respondents Percentage
Yes 50 50.0%
No 50 50.0%
Interpretation: This table shows the response to 'do you support the current gst system?'. It
reflects the general opinion and perception of respondents on the subject.
Table 8: Effect of GST on service charges
Option Number of Respondents Percentage
Increased 70 70.0%
Same 20 20.0%
Reduced 10 10.0%
Interpretation: This table shows the response to 'effect of gst on service charges'. It reflects the
general opinion and perception of respondents on the subject.

Table 9: Understanding of GST in bills

Option Number of Respondents Percentage
Clear 30 30.0%
Confusing 70 70.0%
Interpretation: This table shows the response to 'understanding of gst in bills'. It reflects the
general opinion and perception of respondents on the subject.

Table 10: Do you think GST is beneficial long-term?

Option Number of Respondents Percentage
Yes 55 55.0%
No 25 25.0%
Maybe 20 20.0%
Interpretation: This table shows the response to 'do you think gst is beneficial long-term?'. It
reflects the general opinion and perception of respondents on the subject.
CHAPTER IV: FINDINGS, SUGGESTIONS AND CONCLUSION

4.1 Findings
• 85% of respondents are aware of GST, showing a high awareness level among the public.
• Only 35% of respondents always receive a GST bill, highlighting irregular billing practices.
• 60% reported increased daily item prices post-GST, indicating cost sensitivity.
• 60% are unaware of different GST slabs, reflecting a need for education.
• Over 50% say their monthly household budgets have increased due to GST.
• Public opinion is split regarding GST’s long-term benefits.

4.2 Suggestions
• Increase public education campaigns on GST slab structures.
• Mandate GST bill issuance by all retail outlets.
• Simplify the GST structure for better understanding and implementation.
• Provide tax awareness training programs for consumers and businesses.
• Explore reducing GST on essential commodities to ease public burden.

4.3 Conclusion
This study reveals that GST has significantly impacted the financial behavior of individuals in
Coimbatore. While it streamlined tax compliance and increased national revenue, its impact on
the daily expenses of common people is perceived as mixed. The study calls for better
communication, transparency, and simplification of the tax regime to ensure GST’s long-term
success.
BIBLIOGRAPHY
• Mehta, P. (2021). GST Reform Review. Taxation Journal.
• Sharma, R. (2020). Consumer Impact of GST. Indian Finance Review.
• Rao, M. (2023). Public Perception of Indirect Taxes. Economic Weekly.
• Ministry of Finance Reports (2017–2023). Government of India.
• Business Standard, The Economic Times – GST Opinion Columns.
• IIM Bangalore Working Paper Series on GST Implementation.
• Primary data collected from 100 respondents in Coimbatore.
APPENDIX

Survey Questionnaire
1. Are you aware of GST?
2. Do you receive GST bill during your purchases?
3. What is your opinion on the effect of GST on prices of daily items?
4. Are you aware of GST tax slabs (5%, 12%, 18%, 28%)?
5. Has GST increased your monthly household budget?
6. Do you find GST bills clear and understandable?
7. Has GST simplified the taxation system?
8. What sector do you think is most affected by GST?
9. Do you support the GST system?
10. Do you think GST is beneficial in the long run?