ADVISORY BOARD PROF. JAVED KHAN President, Oriental Education Society, Mumbai. PROF. AZEEM KHAN General Secreatary, Oriental Education Society, Mumbai MR. WASEEM KHAN Managing Director, Oriental Institute of Management EDITORIAL BOARD DR. MENON SREEDHARAN Director, Indira Institure of Business Management DR. K. G. DAWANI Director, Oriental Institute of Management DR. RASHMI SONI Associate Professor at K. J. Somaiya Institute of Management Studies & Research Mumbai. DR. RAVINDRA PRATAP GUPTA CEO, Oriental Institute of Management EDITOR SHAKTI AWASTHI Asst. Professor, Oriental Institute of Management Printed by KUNAL CREATIVE ARTS Shop No. 38, Jai Jawan Market, Sector - 17, Vashi, Navi Mumbai - 400 703. Tel.: 4013 4143 | Mob.: 9892346012 PARIVARTAN - JOURNAL OF MANAGEMENT RESEARCH EDITORIAL The present issue comprise of seven quality research papers in the field of management education. Parivartan is continuously showing its presence in the management research and catering the food for the intellectual minds. Parivartan has given the chance to the new researchers as well, who threw their desire to innovate and contribute. Today's research becomes the reality of tomorrow. As rightly said you Can Have the best Strategy and the best building In the world, but if you don't have the capacity to innovate and research you can never sustain yourself in the competition. With the passage of time, Parivartan is showing its international presence as well, hope the present issue will be successful in evoking new thoughts towards management research. Ms. Shakti Awasthi Editor VOLUME-6 ISSUE-I JAN - JULY 2017 PARIVARTAN - JOURNAL OF MANAGEMENT RESEARCH INDEX Page No. 1. An Understanding on Goods & Services Tax and the practical aspects 1-5 involved in Indian Scenerio Anil Joshi, ICWA 2. Consumer Perceptions of Food Franchise-An Analysis of Brand KFC 6-12 Dr. Ravindra Pratap Gupta, CEO - OIM 3. Challenges And Acceptability of E-Payment Gateway in Rural India 13-22 Sampurna Nand Mehta, Research Scholars University of Mumbai 4. Digital Banking in India and its Furthering in Financial Inclusion 23-30 Ms. Shebazbano S Khan, Assistant Professor (Finance) 5. Business Transition Plan for MSME Units 31-38 Imtiaz Khan, Freelance Academician & Trainer 6. Expansion Strategies of a Departmental Commercial Company 39-50 José G. Vargas-Hernández (University of Guadalajra - Maxico) 7. A Research Paper on Dynamic Pricing and Yield Management with special 51-57 reference to mobile telecommunications Prof. Raghavendra Bendigeri, Assistant Professor VOLUME-6 ISSUE-I JAN - JULY 2017 PARIVARTAN JOURNAL OF MANAGEMENT RESEARCH An Understanding on Goods & Services Tax and the practical aspects involved in Indian Scenerio Anil Joshi, ICWA ABSTRACT: Abstract: Through the present article, the various aspects that can make the understanding of the concept of GST simple are discussed along with various international practices, nuances of GST in India &its some other nitty-gritties. The impact of GST on the end consumer is widely discussed with an example. Introduction: Since last many months we have One, direct tax which is charged on the income been hearing about GST mainly in newspapers. of the tax payer & hence there is a direct In fact if we stretch our memories little more, impact on the person (examples: income tax, we will remember that this is being discussed corporate tax) & Second which is on the in our country for last many years! So what products or services which indirectly becomes is this GST all about & why it has created so a cost to the end consumer (examples: excise much noise in the country? Why has our duty, customs duty, sales tax/VAT, service tax). Finance Ministry been sweating on this issue GST i.e. Goods & Services Tax falls under to ensure that it gets implemented finally? Indirect Tax category. The following article is an attempt to touch Before we go on to understand the nitty-gritties upon the basics of the GST & to explain how of GST, let us have a quick glance at the current it is a game changer for our country. scenario of major Indirect taxes in India. The present article is an exploratory work There is Excise Duty which is a tax on the done to quench the thirst for knowledge manufacture of goods (which is chargeable towards better understanding of GST, which at the time of dispatch). There is VAT (Value has become quintessential for each and Added Tax) which is a tax on the sale of goods everybody paying taxes. The aspects covered within the state (intra-state) plus there is Central in the present study are as follows: Sales Tax which is on the inter-state sale of To understand the concept of GST & key goods & then there is Service Tax which is a nuances involved. tax on the rendering of services. To protect To know about the international practices the domestic market there is Customs duty around GST. which is on the import of goods. Thus you will notice that there is plethora of Indirect To understand the administrative taxes which also leads to the imposition of mechanism in the form of GST Council. tax on tax (which we will discuss later) thereby To find out the impact of GST on the increasing the cost to the end consumer & end consumer in terms of the pricing. also creating lot of paperwork, red-tapism, There are two types of taxes in the world. increased litigation & so on. GST is going VOLUME-6 ISSUE-I 1 JAN-JULY 2017 PARIVARTAN JOURNAL OF MANAGEMENT RESEARCH to replace all these indirect taxes (except respective State. When there is inter-state customs duty) into one single tax. So no more sale of goods (goods sold from one state to multiplicity of indirect taxes. Effectively there another), instead of CGST & SGST, there will will be majorly only 2 indirect taxes. GST be Integrated GST (IGST, which is effectively & Customs Duty. equal to the sum of CGST & SGST). IGST GST is going to subsume (replace) primarily will be also applicable on the import of goods the following taxes. in addition to Customs duty. Central level Taxes subsumed: Excise Duty, Constitutional Amendment: Service Tax, Central Sales Tax & some other Those who have been tracking the evolvement surcharges & cesses. While Customs Duty of GST in India must have read about the will not be subsumed, additional customs duty Constitutional Amendment that was passed (which is called as CVD. This is charged on earlier to make the GST effective. Some of imports to balance the price in the importing you may wonder why there was a need to change country to counter the negative effect of the constitution to impose GST?One of the subsidies offered by exporting country to reasons was from the point of view of protect the domestic industry) & Special empowerment of the respective government. additional duty of customs (which is called So far by constitution, states were not allowed as SAD and it is mainly to counter the effect to charge taxes on services & central of Sales Tax or VAT which is otherwise payable government was not allowed to charge tax by local manufacturers) will be subsumed by on sale of goods intra-state. With the GST. implementation of GST which is going to have State level taxes subsumed :VAT, dual concept (Central GST as well as State Entertainment tax (except the one charged GST) the tax will have to imposed by Central by local bodies), Octroi, Local Body tax (LBT), as well as State Government for goods as well Luxury Tax, Taxes on lottery, betting & as services. Therefore in order to authorize gambling& other state cesses & surcharges the respective governments to levy taxes on related to supply of goods & services. goods as well as services, there was need to amend the constitution of India. The Dual Concept of GST: amendment also authorizes the President of our Country to set up GST Council which is In a country like India where we have Central an apex body. as well as State Governments, imposition of any new tax is not a matter of simplicity because Elimination of tax on tax: there arises a question of revenue sharing. Earlier I mentioned that GST will help to In order to find the way out, India has devised remove the cascading effect of taxes. Currently a unique model of dual GST concept. It simply the duplication of tax occurs because of means that both the governments i.e. Central different taxes at various stages. E.g. You have & State will levy tax on goods & services. excise duty on manufacture (which is under Therefore you have Central GST (CGST) & the domain of Central Government) & VAT State GST (SGST). For example, when goods on sales (which is under the domain of are produced &sold in the same state, there respective states). Therefore when the goods will be CGST as well as SGST charged. CGST are sold, credit of Excise duty paid is not will go to Centre & SGST will go to the allowed while imposing VAT. In other words, VOLUME-6 ISSUE-I 2 JAN-JULY 2017 PARIVARTAN JOURNAL OF MANAGEMENT RESEARCH VAT is charged on the price inclusive of Excise European Union: Called as VAT which is Duty. Thus there is tax on tax. With the regulated by EU directives, the major one introduction of GST, this anomaly will be being sixth VAT directive introduced in the removed because there is going to be only year 1977. one tax i.e. GST for which credit will be allowed There are 160 countries in the world which on the input tax (GST paid on input). Thus have implemented GST. effectively with the elimination of cascading effect of taxes, it will help reducing the level GST Council: of prices in general.