GST Impact Study on a Small Business
For a two-person shop, GST is not a policy debate. It is a monthly routine: matching purchase invoices against a supplier's filings, deciding whether a kurta priced at ₹980 sits in the 5 percent slab or the 12 percent one, paying tax on stock months before a customer pays for it, and choosing between two schemes that nobody ever properly explained. Most of the crores of businesses registered under GST in India are exactly this size, and the distance between how the tax is taught in a B.Com classroom and how it is lived behind a counter in Karol Bagh is where this project sits.
The intern runs a complete impact study on one such business: Rangoli Fabrics, a fictional dress-material and readymade garment retailer with roughly ₹68 lakh of annual turnover. They interview the owner with written consent, reconstruct three months of purchases and sales as an anonymised ledger in google-sheets, map twelve product lines to HSN codes and rate slabs, then compute the shop's effective tax rate on sales, its input credit utilisation and its true compliance cost in both rupees and hours. A comparison model tests the composition scheme against the regular scheme at three turnover levels to find the point where the answer flips. The findings become a case study report drafted in google-docs, alongside a one-page GST cheat sheet and a compliance calendar designed in canva for shopkeepers who will never read a fifteen-page report.
Indirect tax literacy is one of the few things a commerce student can demonstrate rather than claim, and it is the first thing accounting firms, GST practices and finance teams probe in an interview. The intern also comes away with skills that transfer well beyond tax: designing an interview, handling somebody else's financial data responsibly, anonymising a dataset before publishing it, and translating a regulation into one page a busy person will actually use.
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