GST has been implemented in India for one year. A survey found that most respondents believe GST was the right decision and are satisfied with its overall implementation. Specifically: - 83% believe GST was the right step. Nearly two-thirds are satisfied with the overall implementation. - GST has had a positive impact on employment and demand for goods and services. - Respondents were satisfied with many aspects of GST like registration, invoices, record keeping. However, some were less satisfied with penalties, interest rates and certain refund processes.

1. 30 June 2018
Transition to GST: A year into the system

3. Transition to GST: A year into the system 1
Contents
Highlights 21.
Overview 32.
2.1 Employment and Demand Generation 3
2.2 Overview Index 4
Detailed Feedback 53.
3.1 Valuation 5
3.2 GST Rates and Classification 5
3.3 Impact of GST on Prices 6
3.4 Refunds 6
3.5 Impact of GST on Logistics, Transportation and Warehousing 6
3.6 Impact of Introduction of E-way Bill 7
Annexure 8

4. Transition to GST: A year into the system 2
Transition to GST
1. Highlights
TRANSITION TO GST
HighlightsHighlightsHighlightsHighlights
‘
MAJORITY OF THE RESPONDENTS (83%) BELIEVE THAT
IMPLEMENTATION OF GST WAS A STEP IN THE RIGHT DIRECTION
NEARLY TWO THIRDS OF THE RESPONDENTS (65%) ARE SATISFIED WITH THE OVERALL
IMPLEMENTATION OF GST
SATISFIED WITH THE OVERALL PROCESS OF REFUNDS
SATISFIED WITH THE OVERALL PROCESS OF IMPLEMENTATION OF THE E-
WAY BILL
• satisfied with ease
in registration
process (additions)71%
• satisfied with the overall
Input Tax Credit process63%
• satisfied with the
overall provisions
of valuation of
supply of GST
72%satisfied
with the
penalty
provisions
50%
satisfied
with the
rate of
interest
52%
70% of the
respondents
are satisfied
with the
format of the
invoices
61% of the
respondents
are satisfied
with the
overall
process of
filing returns
64% of the
respondents
feel that
maintenance
of records is
easier under
GST
59
%
TRANSITION TO GST
HighlightsHighlightsHighlightsHighlights
‘
MAJORITY OF THE RESPONDENTS (83%) BELIEVE THAT
IMPLEMENTATION OF GST WAS A STEP IN THE RIGHT DIRECTION
NEARLY TWO THIRDS OF THE RESPONDENTS (65%) ARE SATISFIED WITH THE OVERALL
IMPLEMENTATION OF GST
SATISFIED WITH THE OVERALL PROCESS OF REFUNDS
SATISFIED WITH THE OVERALL PROCESS OF IMPLEMENTATION OF THE E-
WAY BILL
• satisfied with ease
in registration
process (additions)71%
• satisfied with the overall
Input Tax Credit process63%
• satisfied with the
overall provisions
of valuation of
supply of GST
72%satisfied
with the
penalty
provisions
50%
satisfied
with the
rate of
interest
52%
70% of the
respondents
are satisfied
with the
format of the
invoices
61% of the
respondents
are satisfied
with the
overall
process of
filing returns
64% of the
respondents
feel that
maintenance
of records is
easier under
GST
59
%
TRANSITION TO GST
HighlightsHighlightsHighlightsHighlights
‘
MAJORITY OF THE RESPONDENTS (83%) BELIEVE THAT
IMPLEMENTATION OF GST WAS A STEP IN THE RIGHT DIRECTION
NEARLY TWO THIRDS OF THE RESPONDENTS (65%) ARE SATISFIED WITH THE OVERALL
IMPLEMENTATION OF GST
SATISFIED WITH THE OVERALL PROCESS OF REFUNDS
SATISFIED WITH THE OVERALL PROCESS OF IMPLEMENTATION OF THE E-
WAY BILL
• satisfied with ease
in registration
process (additions)71%
• satisfied with the overall
Input Tax Credit process63%
• satisfied with the
overall provisions
of valuation of
supply of GST
72%satisfied
with the
penalty
provisions
50%
satisfied
with the
rate of
interest
52%
70% of the
respondents
are satisfied
with the
format of the
invoices
61% of the
respondents
are satisfied
with the
overall
process of
filing returns
64% of the
respondents
feel that
maintenance
of records is
easier under
GST
59
%

5. Transition to GST: A year into the system 3
2. Overview
GST, the single taxation regime, was implemented a year back and though
there were some initial implementation issues, as is the case with any system
for the first time, it is safe to say that the GST has been the biggest tax
reform of Independent India.
As per a survey conducted by the Confederation of Indian Industry (CII), a
significant majority of the respondents (83%) have lauded the government
for implementing GST saying that it was a correct decision taken by the
government. Further, nearly 42% of the respondents have indicated a positive
impact of GST on their sales, followed closely by around 40% of respondents
who have not experienced any changes in their sales.
2.1 Employment and demand generation
GST has had a positive impact on employment, with over one-third of the
respondents indicating an increase in employment. Less than 10% of the
respondents indicated a decrease in employment. This trend is reflected in
the demand for goods and services, with 78% of the respondents witnessing
an increase or no change in demand for goods post GST implementation.
Similarly, 90% of the respondents witnessed an increase or no change in
demand for services post GST implementation.
TRANSITION TO GST: A YEAR INTO THE SYSTEM
2
Overview
GST, the single taxation regime, was implemented almost a year back and though there were some initial
implementation issues, as is the case with any system for the first time, it is safe to say that the GST regime
has been a step in the right direction.
As per a survey conducted by the Confederation of Indian Industry (CII), a significant majority of the
respondents (83%) have lauded the government for implementing GST saying that it was a correct
decision taken by the government. Further, nearly 42% of the respondents have indicated a positive
impact of GST on their sales, followed closely by around 40% of respondents who have not experienced
any changes in their sales.
Employment and demand generation
GST has had a positive impact on employment, with over one-third of the respondents indicating an
increase in employment. Less than 10% of the respondents indicated a decrease in employment. This
trend is reflected in the demand for goods and services, with 78% of the respondents witnessing an
increase or no change in demand for goods post GST implementation. Similarly, 90% of the respondents
witnessed an increase or no change in demand for services post GST implementation.
Yes
83%
No
2%
Too early
to
comment
15%
Was GST the right step?
42%
10%
40%
8%
Positive
impact
Negative
impact
No Change Too early to
comment
Impact of GST on sales
Was GST the right step? Impact of GST on sales

6. Transition to GST: A year into the system 4
2.2 Overview index
Satisfaction was high across the spectrum on GST implementation issues.
Respondents gave positive feedback on several aspects of the GST including
registration, format of invoices, overall process of filing of returns and
maintenance of records. An overview highlighting the satisfaction index score
for some of the selected indicators from the survey is presented below.
TRANSITION TO GST: A YEAR INTO THE SYSTEM
3
Overview index
Satisfaction was high across the spectrum on GST implementation issues. Respondents gave positive
feedback on several aspects of the GST including registration, format of invoices, overall process of filing
of returns and maintenance of records. An overview highlighting the satisfaction index score for some of
the selected indicators from the survey is presented below.
3.1 3.0 2.9 2.8 2.8 2.8 2.7 2.7 2.6 2.5 2.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
Registration/Additionof
business
Formatofinvoices
Provisionsofvaluationof
supply
ProcessofFilingofReturns
OverallGST
implementation
Easymaintenanceof
recordsunderGST
OverallprocessofITC
OverallE-wayBill
implementation
Processofrefundunder
GST
Satisfiedwithpenalty
provisions?
Satisfiedwithrateof
interest?
Satisfaction Index: OverviewSatisfaction Index: Overview

7. Transition to GST: A year into the system 5
3. Detailed Feedback
This section details the impact on select areas following the implementation
of GST.
3.1 Valuation
The respondents showed a high level of comfort with the provisions on
valuation: A vast majority of 72% were either fully or somewhat satisfied
with the provisions. More detailed questions were asked on the level of
satisfaction with different kinds of valuation. These include valuation of B2B,
B2C as well as inter-branch/ self-supply. Valuation of imports and exports as
well as supply from 100% EOUs were considered satisfactory. The results are
depicted in the graph below.
3.2 GST Rates and Classification
On products coverage under GST, 87% of the respondents indicated that their
products were listed while only 13% said that their products are not listed/
classified. Respondents were largely satisfied with the exemptions provided
on supply of goods and services, relatively less satisfied with exemption on
imports while exemption on exports was satisfactory.
Satisfaction Index: Valuation
2.9 3.0 2.9 2.9 2.8
3.0 2.9 3.0 2.9
2.7
2.9
1.0
1.5
2.0
2.5
3.0
3.5
4.0
Overallprovisionsofvaluation
ofsupplyunderGST
Areyoucomfortablewith
valuationofB2Bsupplyunder
GST
Areyoucomfortablewith
valuationofB2Csupplyunder
GST
Areyoucomfortablewith
valuationofinter-branch/
self-supply
Areyoucomfortablewith
valuationofsupplyforJob
Work
Areyoucomfortablewith
valuationofsupplyfrom100%
EOU
Areyoucomfortablewith
valuationofimports
Areyoucomfortablewith
valuationofexports
Areyoucomfortablewith
valuationofused
machinery/capitalgoods
Areyoucomfortablewith
valuationofusedmotor
vehicles
Areyoucomfortablewith
valuationofothercapital
goods

8. Transition to GST: A year into the system 6
TRANSITION TO GST: A YEAR INTO THE SYSTEM
GST Rates and Classification
On products coverage under GST, 87% of the respondents indicated that their products were listed while
only 13% said that their products are not listed/classified. Respondents were largely satisfied with the
exemptions provided on supply of goods and services, relatively less satisfied with exemption on imports
while exemption on exports was satisfactory.
Impact of GST on Prices
GST has had a positive impact on the price movements of supplies. One-third of the respondents
witnessed a downward movement in the wholesale process of their supplies. Similarly, nearly 30% of the
Overallprovisi
valuationofs
underGS
Areyoucomfo
withvaluation
supplyunder
Areyoucomfo
withvaluation
supplyunder
Areyoucomfor
withvaluationof
branch/self-su
Areyoucomfor
withvaluation
supplyforJob
Areyoucomfor
withvaluatio
supplyfrom100
Areyoucomfo
withvaluatio
imports
Areyoucomfo
withvaluatio
exports
Areyoucomfor
withvaluationof
machinery/ca
Areyoucomfor
withvaluationof
motorvehicl
Areyoucomfort
withvaluationof
capitalgood
Yes
87%
No
13%
Are the Products manufactured by you
listed/classified 2.9 2.8 2.8 3.0
1.0
2.0
3.0
4.0
GST
exemptions
forsupply
ofservices
GST
exemptions
forsupply
ofgoods
GST
exemptions
forimports
GST
exemptions
forexports
3.3 Impact of GST on Prices
GST has had a positive impact on the price movements of supplies. One-
third of the respondents witnessed a downward movement in the wholesale
process of their supplies. Similarly, nearly 30% of the respondents witnessed
a fall in retail prices of supplies. A majority witnessed no change in their
supply prices.
Consequent to GST, the end-consumer benefited with one-third of the
respondents indicating a fall in their selling prices.
3.4 Refunds
Respondents were largely satisfied with the overall process of refunds. Process
of refund of IGST on goods export was more satisfactory as compared to the
process of refund of IGST on services export. Specific satisfaction index for
each is provided in the graph below.
Satisfaction Index: Refunds
Satisfaction Index: ExemptionsProduct coverage under GST
2.6
2.8 2.8 2.6 2.5
1.0
2.0
3.0
4.0
Overallprocessof
refundunderGST
Processofrefund
ofIGSTpaidon
exportgoods
Processofrefund
ofIGSTpaidon
serviceexport
Processofrefund
ofInvertedtax
accumulation
Processofany
otherrefundslike
tax,interest,
penalty,feeetc.

9. Transition to GST: A year into the system 7
3.5 Impact of GST on Logistics, Transportation and Warehousing
While GST has resulted in enhancing efficiency: nearly two-thirds of the
respondents have indicated a reduction in transportation time, on account
of absence of state barriers. The impact on reducing logistics-related costs
has been more muted. Around a third have witnessed reduction in logistics,
warehousing, insurance and distribution costs.
3.6 Impact of Introduction of E-way Bill
Respondents showed high level of satisfaction for the overall implementation
process of E-way Bill. Responses sought on specific issues around E-way Bill
system like exemptions, generation, validity, endorsement, value limits and
cancellation among others were also positive. Details on the specifics presented
in the satisfaction index graph below.
Satisfaction Index: E-way Bill
2.7 2.7
2.8
2.7 2.8 2.7
2.8 2.8 2.8 2.8 2.9
1.0
1.5
2.0
2.5
3.0
3.5
4.0
OverallProcessof
implementationofe-wayBill
Exemptionsundere-wayBill
Processofgenerationofe-way
Bill
Processofgenerationofbulke-
wayBill
Processofendorsementofe-way
BilltoTransporter
Validityperiodofe-wayBill
sufficient
Valuelimitforgenerationofe-
waybill
Provisionsofacceptance/
rejectionofe-wayBillby…
Provisionsofcancellationofe-
wayBill
Processofgenerationofe-way
billforjobworksupply
Exemptionofe-wayBillfor
transportationupto50KM

10. Transition to GST: A year into the system 8
Annexure
1. Respondent Profile
The survey sample consists of above 200 firms of varying sizes. Major
proportion of the firms (46%) have an annual turnover of more than Rs
100 crore, 29% have a turnover between Rs 5 crore to Rs 100 crore, 11%
have reported turnover between Rs 1.5 crore to Rs 5 crore and 13% have a
turnover of less than Rs 1.5 crore. Sectoral break-up shows that 75% of the
firms belong to the manufacturing sector while the remaining 25% are from
the services sector.
2. Methodology
The survey was administered electronically to around 300 respondents.
Respondents were asked to select an option for each question.
Indices were computed as the weighted average of the number of respondents
selecting an option. Weights have been allocated as under:
– Fully satisfied: weight of 4 (Max)
– Somewhat satisfied: weight of 3
– Somewhat dissatisfied: weight of 2
– Not satisfied: weight of 1 (Min)

12. The Confederation of Indian Industry (CII) works to create and sustain an environment
conducive to the development of India, partnering industry, Government, and civil society,
through advisory and consultative processes.
CII is a non-government, not-for-profit, industry-led and industry-managed organization,
playing a proactive role in India’s development process. Founded in 1895, India’s
premier business association has around 9000 members, from the private as well as
public sectors, including SMEs and MNCs, and an indirect membership of over 300,000
enterprises from around 265 national and regional sectoral industry bodies.
CII charts change by working closely with Government on policy issues, interfacing with
thought leaders, and enhancing efficiency, competitiveness and business opportunities
for industry through a range of specialized services and strategic global linkages. It also
provides a platform for consensus-building and networking on key issues.
Extending its agenda beyond business, CII assists industry to identify and execute
corporate citizenship programmes. Partnerships with civil society organizations carry
forward corporate initiatives for integrated and inclusive development across diverse
domains including affirmative action, healthcare, education, livelihood, diversity
management, skill development, empowerment of women, and water, to name a few.
As a developmental institution working towards India’s overall growth with a special focus
on India@75 in 2022, the CII theme for 2018-19, India RISE : Responsible. Inclusive.
Sustainable. Entrepreneurial emphasizes Industry’s role in partnering Government to
accelerate India’s growth and development. The focus will be on key enablers such as
job creation; skill development; financing growth; promoting next gen manufacturing;
sustainability; corporate social responsibility and governance and transparency.
With 65 offices, including 9 Centres of Excellence, in India, and 11 overseas offices in
Australia, Bahrain, China, Egypt, France, Germany, Iran, Singapore, South Africa, UK,
and USA, as well as institutional partnerships with 355 counterpart organizations in
126 countries, CII serves as a reference point for Indian industry and the international
business community.
Confederation of Indian Industry
The Mantosh Sondhi Centre
23, Institutional Area, Lodi Road, New Delhi – 110 003 (India)
T : 91 11 45771000 / 24629994-7 • F : 91 11 24626149
E : info@cii.in • W : www.cii.in
Reach us via our Membership Helpline: 00-91-11-435 46244 / 00-91-99104 46244
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