“A study on The Impact of Goods and Service Tax (GST) on Middle Income

Earners with reference to Pune city”

Research Proposal Submitted

By
Praveen Suryavanshi
1) Title
“A study on The Impact of Goods and Service Tax (GST) on Middle Income Earners with
reference to Pune city”

2) INTRODUCTION :
Good and service act was passed in Lok Sabha on 29 th March 2017 and came into effect
on 1st July 2017. GST act has changed the entire taxation system of India. With the
implementation of GST, prices of many goods have changed. This had affected mainly the
middle income earners. GST simplified a slew of indirect taxes with a unified tax and is
therefore expected to dramatically reshape the country's 2.4 trillion dollar economy. With
the introduction of GST there is a drastic change in the prices of many goods, some goods
have increased some have decreased. This change in prices had affected the middle income
earners. Some sectors will get cheap and some will be affected this all will affect the saving
level of the middle class. The consumers are worrying of the significant price increases on
basic needs when the GST has fully implemented. With the relatively high living costs in
Pune, significant price increases due to GST is considered as another burden for middle
class and lower income earners. Therefore, the main objective of this study is to identify
the impact of GST on middle and lower income earners particular on their purchasing
behavior (consumptions), savings and future financial planning. This study is expected to
suggest a proposal to the relevant authorities on the social and economy impacts on those
groups.

3) LITERATURE REVIEW

Goods and Service Tax (GST) is an indirect tax (or consumption tax) levied in India on
the sale of goods and services. GST is levied at every step in the production process, but is
refunded to all parties in the chain of production other than the final consumer. Goods and
services are divided into five tax slabs for collection of tax - 0%, 5%, 12%,18% and
28%. Petroleum products, alcoholic drinks, electricity, and real estate are taxed separately
 by the individual state governments. There is a special rate of 0.25% on rough precious and
semi-precious stones and 3% on gold. In addition a cess of 22% or other rates on top of
28% GST applies on few items like aerated drinks, luxury cars and tobacco products. Pre-
GST, the statutory tax rate for most goods was about 26.5%, Post-GST, most goods are
expected to be in the 18% tax range. The tax came into effect from July 1, 2017 through
the implementation of One Hundred and First Amendment of the Constitution of India by
the Modi government. The tax replaced existing multiple cascading taxes levied by
the central and state governments. The tax rates, rules and regulations are governed by the
GST Council which comprises finance ministers of centre and all the states. GST
simplified a slew of indirect taxes with a unified tax and is therefore expected to
dramatically reshape the country's 2.4 trillion dollar economy. Trucks travel time in
interstate movement dropped by 20%, because of no interstate check posts.

4) NEED FOR THE STUDY

 To understand the term GST.

 This study will help to understand the different Tax slabs and its effect on prices of many
goods.
 This study will help middle earners to plan their monthly budget properly.

5) STATEMENT OF THE RESEARCH PROBLEMS:

A study of The Impact of Goods and Service Tax (GST) on Middle Income earners.

6) OBJECTIVES OF THE STUDY :

The objectives of the proposed study are:

 1) To Study the Impact of GST on middle class people.
2) To obtain a comprehensive overview on consumer readiness, perceptions and
acceptance of GST;
3) To analyze the households‘ potential consumptions (purchases) behavior after GST is
introduced

7) RESEARCH HYPOTHESIS

1) Negative impact of GST on savings of middle class people.

8) RESEARCH METHODOLOGY:

A) Sampling Design:

The sample universe for this research will be all the middle class people in Pune city.

B) Sources and Methods of Collection of Data:

The applied methodology of the study is the use of the questionnaires. The participants are the
people that are middle income earners in Pune city. The participants are allowed to answer on the
basis of their earning. Participants will be classified on the basis of their age, gender, and earning
levels etc.

The researcher seeks to collect the data through primary as well as secondary sources.

i) Primary Data:

- Questionnaire:

It will be collected through structured Questionnaire.

ii) Secondary Data:

It will be gathered through the following sources:-
- Use of library-
Relevant data will be collected through books, journals, newspapers, etc.
- Use of Internet-
Internet will be extensively used to seek data from the websites of various Institutes.
- Published/ Unpublished data-
-
- .
C) Methods of Analysis and Statistical Tools:
Both Qualitative and Quantitative methods of analysis will be used by the researcher. Sophisticated
statistical tools like SPSS will be used for the analysis purpose.

D) Scheme of the study:

Pilot questionnaire will be prepared

Pilot survey

Preparation of final questionnaire

Collection of secondary data

Collection of primary data (filling of questionnaires & interviews)

Data analysis

Result (findings) & discussion

 Summary & conclusions

Suggestions

Firstly a pilot study will be conducted and then the questionnaire will be finalized.

9) SCOPE OF THE STUDY:

1) The research is restricted to only selected middle class from Pune Region.

2) This study is based on the data collected for the years 2018-2021.

10) LIMITATIONS OF THE STUDY

1) The geographical restriction: The data collected only from Pune.

2) Sample size for the present study will be 200 Middle class earners.

3) Conclusion will be on the basis of primary and secondary data.

11) STUDY PLAN:

Sr. No. Particular Duration

1 Introduction 1 month
2 Literature Review 3 months
3 Pilot Study 6 months
4 Preparation of Questionnaire 2 months
5 Collection of Data 6 months
6 Analysis of Data 3 months
7 Findings, Conclusion and recommendations 4 months
8 Preparation and Submission of Thesis 2 Months

12) CHAPTER SCHEME:

Chapter 1 – Introduction – In this chapter the rationale behind the selection of topic, need
and importance of the topic etc. will be discussed in detail. A brief discussion on the research
theme will also be included here.

Chapter 2 – Scope of the study – The need, scope and limitation of the study will be
discussed in detail.

Chapter 3 – Literature review - The researcher would discuss about the research that has
been carried out relating to the theme of research..

Chapter 4 – Research Methodology - The data collected through the questionnaires will be
studied for analysis. The appropriate statistical tools will be used.

Chapter 5 - Data Analysis - The data collected from management authorities will be
analyzed in this chapter. The data collected from faculty will be analyzed in this chapter.

Chapter 6 – Findings, Conclusion and recommendations–.

Bibliography

Annexure