DECLERATION

I do hereby declare that the project titled "IMPLEMENTATION OF GST" submitted to Jatiya
Kabi Birakishore Govt. college, Cuttack, Odisha for 6th semester UG CBCS examination 2019 in
commerce is an original piece of work done by me and it has not been published elsewhere or
submitted for any other Degree or Diploma in full or in part.

Place:-

Date: - Hemraj Raj

Amrita Dwivedy

M.com, CA (Inter).CS (Inter)

Lecturer in Commerce

Department of Commerce

J.K.B.K Govt. College

Cuttack-753003

E-mail- amritadwivedy@gmail.com

CERTIFICATE
This is to certify that the project entitled “IMPLEMENTATION OF GST"

Submitted by Hemraj Raj of +3 3rd year, Commerce bearing Roll No. BC16-138 is a record of an
independent research work carried out by him under my guidance and supervision. His work is
original. This has not been submitted elsewhere for the award of any Degree or Diploma.

Place:-

Date: - Amrita Dwivedy

2
 ACKNOWLEDGEMENT
I would like to express my gratitude to my teacher miss Amrita Dwivedy, Department of
Commerce Jatiyakabi Birakishore Govt. College, Cuttack who gave me the amazing opportunity
to do this wonderful project titled “IMPLEMENTATION OF GST”. Your advice on both
research as well as my career has been invaluable.

I express my sincere thank to the co-coordinator of Commerce Dr.Sanjibani Pattanayak,

Department of Economics, as well as our principal, Dr.Madhusmita Mishra of Jatiyakabi
Birakishore Govt. College Cuttack for allowing me to conduct the project and permitting me to
present this work.

A special thanks to my family. Words can’t express how grateful I am to my parents and siblings
who helped me a lot in finalizing this project within the limited time frame. At the end I would
also like to thank all my friends who supported me in writing and inspired me to strive toward
my goal.

Hemraj Raj

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 ABSTRACT
Goods and Service Tax (GST) is a destination base indirect tax collected by central as well as
state government to meet the public expenditure as a part of important mechanism of fiscal
system of a nation. Good and Service tax is comprehensive indirect levy on the manufacture, sale
and consumption of Goods and Service with a input tax credit facility on output tax liability at
the national and state level in an uniform modus. The Government GST regime seeks to replace
excise duty, import duties, VAT and service tax regulations, along with other cess and
surcharges, with three separate legislations namely CGST, SGST and IGST. GST is applicable
on all transactions of goods and service, and it to be paid to the accounts of the Centre and the
States separately. The biggest advantage of GST is economic unification of India. The
implementation of GST has removed the cascading affects of the earlier tax reform.GST was
came into effect from the date 1st of July 2017. In this study an attempt has been made to study
the implementation of GST and public opinion regarding the implementation of the GST. A set of
questionnaire was set on the online mode with the help of Google forms.

For the collection of the primary data to study the perception of the citizen on the
implementation of the GST Graphs, tables, and percentage method of analysis has been used to
study the implementation of GST and consumers perception on it.

Key words:- Indirect tax, GST, CGST, SGST, IGST, Consumer’s perception

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 CONTENTS

PAGES -

CHAPTER – 1 INTRODUCTION ON GST 6 – 17

CHAPTER – 2 LITERATURE REVIEW 18 – 22

CHAPTER – 3 RESEARCH METHEDOLOGY 23 – 25

CHAPTER – 4 DATA ANALYSIS & INTERPRETATION 26 – 39

CHAPTER – 5 FINDINGS, SUGGESTIONS & CONCLUSION 40 – 42

BIBLIOGRAPHY 43

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 CHAPTER-1

INTRODUCTION ON GOODS AND

SERVICE TAX

6
INTRODUCTION ON GST
GST (goods and service tax) is a comprehensive tax levy on manufacture, sales and consumption
of goods and service at national level.

G- GOODS

S- SERVICE

T-TAX

GST is a tax on goods and service with value addition at each stage having comprehensive and
continuous chain of set of benefit from the producer’s/service provider’s point up to the retailers
level where only the final consumer should bear the tax. Through a tax credit mechanism, GST is
collected on the value added goods and service at each stage of sales or purchase in the supply
chain.

GST is paid on the procurement of goods and services can be set off against that payable on the
supply of goods or service. But being the last person in the supply chain, the end consumer has to
bear the tax and so, in many respects, GST is like a last point RETAIL TAX.

France was the first country to introduce GST in 1954. Worldwide almost 150 countries have
introduced GST in one or the other forms since now. Most of the countries have a unified GST
system. Brazil and Canada follow a dual system of GST. In China GST applies only to goods
and the provisions of repairs replacement and processing services

These are GST rates of some of the countries:-

COUNTRY RATE
Australia 10%
France 19.6%
Canada 5%
Germany 19%
Japan 5%
Singapore 7%
New Zealand 15%

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Basically, GST is a value added tax levied at all points in the supply chain with credit allowed
for any tax paid on inputs acquired for use in making the supply. It is indirect tax that brings
most of the taxes imposed on most goods and service, on manufacture, sale and consumption of
goods and service, under a single domain at the national level. It would apply to both goods and
services in a comprehensive manner with exemptions restricted to a minimum and it is payable at
the final point of consumption.

Rate of GST

Australia
12%
New Zealand
19%

Singapore
France
9%
24%
Japan
6%

Germany
24% Canada
6%

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Events That Led To The Introduction Of
GST In India
Indian’s flagship tax reform, the Goods and Service (GST), was rolled out from July 1 2017 with
the objective of one nation, one tax. This has evolved over more than a decade of discussion,
deliberation and debate, going all the way back to the year 2004, when the financial advisor of
the then finance minister first proposed the dual-GST model. The event that led to the
introduction of GST is explained below.

JULY 16, 2004:- A task force headed by Dr.Vijay Kelkar, advisor to then finance minister put
forward a recommendation on the need for a national GST. In the report, he proposed the dual-
GST structure, with a central GST of 12% to replace the central VAT and a standard state GST
of 8% to replace VAT levied by states.

February 28, 2006:-GST appears in the Budget speech. Setting an ambitious deadline of April
1, 2010 for GST implementation, finance minister said the Empowered Committee of finance
ministers will prepare a road map for GST.

November 28, 2006:-A report submitted by a working group formed by the empowered
committee of the state finance minister was discussed in the EC.

December 12, 2008:- the government of India presented its comments on the report of the EC.

January 21, 2009:- Proposal to set up a committee of principal secretaries, secretaries of

finance/taxation and commissioners of trade taxes of the states was accepted, and a working
group was formed.

March 2009:-A report released by the department of economic affairs, GST reforms and
intergovernmental Consideration in India discussed the need for, and objective of the GST
reform. The report considered essential questions on the design and implementation of the tax
reform.

October 19, 2009:- Agreement reached between then finance minister and the Empowered
Committee to phase out the central sales tax. (CST)

February 26, 2010:-Date of proposed implementation of GST shifted from April 1, 2010 to
April 1, 2011. A technology Advisory Group for Unique Project (TAGUP) with Nandan
Nilekani as chairman proposed.

March 22, 2011:- GST bill (115th Constitutional Amendment Bill, 2011) introduced in Lok
Sabha. The bill gave concurrent taxing power to both the Center and States, and suggested the

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creation of a Goods and Service Tax council and a Goods and Service Tax Dispute Settlement
Authority.

March 28, 2013:- The Goods and Service Tax Network (GSTN) were incorporated as a non-
profit, private limited company.

May 18, 2014:- The GST Bill lapsed with the dissolution of the 15th Lok Sabha.

December 19, 2014:-Seven months later, the new finance minister introduced the Constitution
Amendment GST Bill 2014 in the Lok Sabha.

May 6, 2015:- 122nd Constitutional Amendment Bill was passed in the Lok Sabha.

December 4, 2015:- Chief Economic Advisor released report on the revenue netral rate and
structure of rates for GST.

June 14, 2016:- The empowered committee of state finance minister gave its in-principle
approval to the Model GST Law.

August 3, 2016:- The 122nd constitutional Amendment Bill, 2014 was unanimously approved by
the Rajya Sabha with amendments.

August 8, 2016:- Amendments made by Rajya Sabha on August 3 were adopted and the bill was
passed again by the Lok Sabha.

August and September 2016:- Over the two month, 23 states assemblies had introduced and
approved the GST bill.

September 8, 2016:- President gave his approval to the GST bill, notified as the Constitution
Act, 2016. Article 368 of the Indian Constitution mandates that any constitutional amendments
needs to ratified by at-least one-half of the State Legislature, after being passed by both houses
of the parliament, before they can be presented for the President’s assent.

September 12, 2016:- Cabinet approves creation of GST Council and its Secretariat.

September 22 and 23, 2016:- First GST Council meeting held in New Delhi, in which draft
rules of procedures and conduct of business in the council, a timetable for the implementation of
GST, thresholds for exemption and composition under GST and draft GST Compensation Law
are discussed.

October 18 and 19, 2016:-Tax rates under the GST regime are discussed at the 3rd meeting of
the GST council.

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November 26, 2016:- Revised Model GST Law, 2016 draft IGST Law and draft GST
Compensation Law released.

March 20, 2017:- the union cabinet approved amendments the four GST bills: the CGST Bill,
IGST Bill, UTGST Bill and the Compensation Bill.

March 22, 2017:- The cabinet approves amendments in the Customs Act, 1962; the Customs
tariff Act, 1975 and the Central Excise Act 1944 to abolish cesses and surcharges on various
goods and services to facilitate implementation of GST.

March 25, 2017:- President gave his nod for the GST bills to be placed before the parliament.
The CBEC (Central Board of Excise and Customs) is renamed CBIC (Central Board of Indirect
Taxes and Customs).

March 29, 2017:- All four GST bills passed as Money Bills in the Lok Sabha.

March 31, 2017:-Date for migration of the Central Excise and Service Tax to GST extended
from 31st march, 2017 to 30th April 2017.

April 6, 2017:-All the four Central GST bills are passed in the Rajya Sabha without
amendments. Along with them the Taxation Laws Bill, 2017 was passed.

April 12, 2017:- With the president’s assent, the four bills now become Acts of Parliament.
Central Goods and Service Tax Act, 2017; Integrated Goods and Service Tax Act, 2017; Union
Territory Goods and Service Tax Act, 2017 and the Goods and Service Tax (Compensation to
States) Act, 2017

May 18 and 19, 2017:- At the 14th meeting of the GST Council in Srinagar, the final tax slabs at
nil, 5, 12, 18, and 28 were announced, fitment of products into these slots was discussed and
rates for GST Compensation cess approved.

June 18, 2017:-To ease the transition to the new GST regime for the taxpayer, the GST council
at its 17th meeting in New Delhi announced for the first two months after GST implementation,
the tax would be payable based on a simple return, form GSTR-RB.

June 21, 2017:- All the states except Jammu and Kashmir passed SGST law.

July 1:- GST rolled out.

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 Salient Features of GST
1. Levy of Tax:
The State GST (SGST) and Central GST (CGST) shall be levied on all the transactions of goods
and services, concurrently.
2. Utilization of Levy:
Levies from State GST (SGST) & Central GST (CGST) shall form part of State and the Centre
respectively and no cross-utilization shall be allowed.
3. Availability of Tax Credit:
In respect of taxes paid on any supply of goods or services or both used or intended to be used in
the course business.
4. Destination based Tax:
The GST is a destination based tax on consumption of Goods and Services. Hence the credit of
SGST shall be transferred to the Destination State in the form of Integrated GST (IGST). IGST
will be imposed on all Inter-State Transactions.
5. Assessment:
Registered person will be allowed himself to assess the taxes payable under the GST Laws and
furnish a return for each Tax Period.
6. Threshold Limit:
There shall be a taxable limit (presently, `. 10 Lakhs in North Eastern States & `. 20 Lakhs in rest
of the county)
7. Composition Scheme
The GST Laws will provide a composition scheme for small dealers (presently, turnover of `. 75
Lakhs).
8. GSTIN or GST Identification Number
Every registrants or dealers (including Exporters and Importers) shall be given a PAN based TIN
number which shall be a common to the both the State GST and Central GST.
9. Compensation to States
The GST Laws provides for payment of compensation to the States for loss of revenue, if any,
arising out of implementing of the Goods and Services Tax for a period of 5 years.

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10. The GST Council
The Council is a quasi – judicial body of States and the Centre, represented by the State Finance
Ministers or Taxation Ministers and the Finance Minister of India. The key role of this Council is
to make recommendations on various provisions of GST Laws to the State and the Centre.
11. Anti-Profiteering Measures –
It is expected the GST Laws will bring down the prices of goods and services once implemented.
To ensure the pass of such benefits to end users or the customers, the government has put anti-
profiteering measures.
12. Transition
Elaborate ‘Transitions Provisions” for smooth transition of existing tax payers to new Indirect Tax
Regime provided.
It is expected that the GST Laws or new indirect tax regime, brings benefits to all the stakeholders’
viz. industry, government and the citizens. Further, lower the cost of goods and services, boost the
economy and make our products and services globally competitive

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 Need For GST in India

• MAKING TAX STRUCTURE SIMPLE: - Before Implementation of GST

there was multiple numbers of taxes paid by consumers, with GST, one single tax
is to be paid, which is much easier to understand. For business, accounting
complexities will be reduced resulting in less paperwork, which will save both
time and money.
• Increase in tax revenue: - Simple tax structure will bring more tax payer into tax
net and in return it will provide more revenue for the Government.
• Removal of cascading effects: - Before GST there was a problem of Cascading
in Indirect Taxation. Cascading of tax means a tax on tax. It is a situation where,
the consumer has to bear the load of tax on tax and inflationary prices as a result
of it. The implementation of GST would remove this Cascading effects.
• Competitive pricing: - GST eliminates all the other indirect taxes and this will
effectively means that tax amount paid by end users (consumers) will reduce. As
in Economics, lower will the price, more will be the demand for those products,
results in more consumption of goods, which will be benefited to companies.
• Boost to export: - If Indian market will be competitive in pricing, then more and
more foreign players will try to enter the market, which result in more number of
exporters and benefits to Indian market. GST is much needed in the countries
lacking transparency and with complex taxation system.

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 Objectives of GST

The Goods and Service Tax is a unified tax for the entire Nation. The primary objective of GST
is to replace a lot of others indirect and direct taxes like the VAT, Service Tax, Luxury Tax, etc.
and thereby eliminating the tax complexities. The other important objects are as follows.
• To bring all taxpayer into one unified system.
• To create Transparency in the total indirect tax system.
• To reduce the complexities in the tax determination, administration and collection.
• To eliminate classification dispute between goods and service.
• To ensure free movement of Goods across the country without any additional tax.
• To save taxpayer form paying taxes on taxes and removing the cascading effects.
• To prevent unhealthy competition among states regarding taxes and revenue.
• To ensure availability of input tax credit.
• To harmonize the tax base and tax administration mechanism in the entire country.

Advantages and Disadvantages of GST

15
The Goods and Services Tax (GST) is an indirect, destination based tax that has replaced many
of the earlier indirect taxes levied in the country. GST has combined central and state level taxes,
which will benefit the Indian markets and boost the economy. While the implementation of GST
has been advantageous, there have been some disadvantages also.

The Advantages are:

· With one GST, taxes are simplified for businesses and made compliance easier.

· Increase in revenue for government with an increase in taxable persons.

· Reduce logistics and inventory costs in the long term

· Availability of input tax credit on capital goods.

· Consumer friendly as there will be only one tax, which means less deception about unnecessary
taxes added to a bill.

· International acceptance and recognition

· Reduction in corruption and tax evasion and GDP Growth

· A 2% reduction in the tax on cars and phones, which will benefit the end consumer.

· The interstate levy revenue previously consumed by supplier state will now be transferred to
receiving state, as GST is destination based. This will aid in development of
backward/developing states.

The Disadvantages are:

· Experts feel GST (CGST, SGST, and IGST) is just a new name for old taxes.

· Telecom, airlines and banking affected as the old services tax was at 15%, whereas under GST
it is now 18%, raising costs for the industries.

· Binding business by-laws in the control of the central and state governments.

· Earlier goods used by disabled people such as Braille paper, hearing aids, motorized
wheelchairs etc. were tax free, however under GST these items are taxable.

· Higher tax for banking and insurance services

· Due to complexities of GST many rewards programs have been suspended

· Launched during mid financial year resulting in complications and confusions.

Types of GST
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 There are three different types of GST:
1. CGST (Central Goods and Service Tax)
CGST to be levied by the Central Government
2. SGST/UTGST (State Goods and Service Tax) (Union territory Goods and Service Tax)
SGST to be levied by the state Government
UGST to be levied by the Union Territory
3. IGST (integrated Goods and Service Tax)
IGST to be levied by both Central and State government commonly
SGST is levied along with CGST on the supply made by a registered person within a State.
Just as SGST is levied along with CGST on the supply made by registered person within a State,
UTGST is levied along with CGST on the supply made by a registered person within a Union
Territory.
However, in no case, both SGST and UTGST are levied on an invoice of supply of goods or
services or both. It is either SGST or UTGST along with CGST is to be levied on the invoice.
IGST is levied on Import or Inter-State supply of goods or services or both. IGST is to be
equivalent to sum total of CGST and SGST/UTGST.

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 CHAPTER-2
LITERATURE REVIEW

Review of Literature

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A literature review is an account of what has been published on a topic by accredited scholars
and researchers. Keeping in view the objective of study, the following literatures have been
reviewed for its consideration.

Poirson (2006) the author in this has studied the Indian tax system from the perspective of
how effective it is towards encouraging growth of the economy. The author has compared the
Indian tax system to other countries and concluded that Indian economy is highly indirect tax
dependent, effective tax rates and productivity are lower, and marginal tax rates are higher. The
study has concluded that indirect taxes are a big contributor of total taxes which can be
regressive, effective tax rates are lower and marginal effective tax rates are high. The proposed
tax reforms including introduction of GST is expected to improve tax productivity and reduce the
marginal effective tax rates. However, the author states that businesses which rely on borrowing
or external funds would continue to be having high marginal taxes.

Halakhandi (2007) GST was supposed to be introduced in India way back in 2010. It has
been getting postponed due to various reasons major one being getting to a consensus between
the various states and the centre for compensation. The author in the paper has discussed the
existing laws in India for indirect taxes, the VAT laws in various states with their advantages and
disadvantages, impact of proposed GST, compliances under the proposed GST, etc. The author
has also used various numerical examples to demonstrate cost effectiveness of GST.

Ahmad (2009) the authors in this have discussed the proposed GST to be introduced in India,
specifically in relation to the place of supply rules for services to be adopted, the method to apply
dual GST. The authors have discussed the options to introduce the dual GST in India which
could be Concurrent Dual GST, National GST or State GST. Under the concurrent dual GST the
better option was the one where GST is applied on both goods and services. The other option
explored was whether the Central GST would be on goods and services but state GST would be
only on goods. This option also recommended one single return with both CGST and SGST
details and PAN based registration. Given the difficulties in identifying the state where SGST on
services is payable, one more variant of dual GST was where the centre collects SGST on behalf
of states and then apportioning it on some scientific basis. The national GST is combining state
and centre taxes with any one body collecting taxes and then distributing depending on some
agreed basis. The third model where the CGST and SGST would coexist that mainly requires a
constitutional amendment so that states can tax services and centre can tax goods. Further the
place of supply of services needs to be robust to allow decision on which state would collect the
SGST especially in case of intangible services. The authors then discuss the various rates
available to tax, the slab structures, exemptions, etc. The paper concludes that whilst GST is
much awaited all these issues need to be addressed for it to be effective.

NCAER (2009) In this, the authors have pointed out that the introduction of GST in India
would lead to benefits like increase in efficiency in use of energy, increase in general economic
welfare, increase in the exports, increase in the GDP, increase in the return on capital, optimum

19
returns and allocation of the factors of production, reduction in general price level, etc. The paper
has stated how indirect taxes have always been a major contributor in the GDP in India as
compared to most countries forming a part of the study. Similarly in India, indirect taxes form
major part of the total taxes collected in the economy. The paper further states that with the
introduction of GST, resources would be used better; the tax could become environment friendly.
Further, the recommended rate for the comprehensive GST is 6-10 %. It is also suggested that
there should be fewer taxes, most indirect taxes should be subsumed within the GST, and there
should be very few exemptions. The paper also studies the impact of the proposed GST on the
imports, tax collections, exports, etc.

Khan et al. (2013) the authors have in this has presented the importance of GST in India, its
relevance in generating additional revenue for states and its benefit as a transparent tax. The
paper also discusses various steps which could be taken to improve the proposed GST like lesser
exemptions, more comprehensive coverage of all taxes into GST, etc. The paper discusses the
various proposed provisions of GST and their implications. GST is proposed to be introduced
with CGST, SGST and IGST. ITC of each can be set off only against the output of the same tax.
Further central government will collect IGST from the exporting state and transfer it to the
importing state. The total rate will be a sum of the CGST and SGST rates. Further for different
products different rates will apply. For e.g. – for essential products the CGST and SGST rates
will be lower. The classification of the goods/services as essential or otherwise will be same for
CGST and SGST. The paper also discusses global provisions of GST and tries to draw
similarities with the proposed GST in India.

Garg (2014) GST is the most logical steps towards the comprehensive indirect tax reform in
our country since independence. GST is livable on all supply of goods and provision of services
as well combination thereof. All sectors of economy i.e. the industry, business including Govt.
departments and service sector shall have to bear impact of GST. All sections of economy viz.,
big, medium, small scale units, intermediaries, importers, exporters, traders, professionals and
consumers shall be directly affected by GST. One of the biggest taxation reforms in India – the
Goods and Service Tax (GST) is all set to integrate State economies and boost overall growth.
GST will create a single, unified Indian market to make the economy stronger. Experts say that
GST is likely to improve tax collections and Boost India’s economic development by breaking
tax barriers between States and integrating India through a uniform tax rate. Under GST, the
taxation burden will be divided equitably between manufacturing and services, through a lower
tax rate by increasing the tax base and minimizing exemptions.

Mohammad Ali (2016) in his paper titled “Awareness and Perception of Taxpayers towards
Goods and Services Tax (GST) Implementation” the study attempts to find out what level of
awareness and perception to GST taxpayers in Malaysia. This study only consists of 256 civil
servants of the secondary school teachers in the area Kuala Kangsar, Perak. Data collected using

20
questionnaires. The results showed that the level of awareness was moderate and the majority of
respondents give a high negative perception to the impact of GST. This eventually causes the
majority of respondents did not accept the implementation of GST in Malaysia.

Vineet Chouhan (2017) in his article titled “Measuring Awareness about Implementation of
GST: A Survey of Small Business Owners of Rajasthan” the study seeks to evaluate the
awareness of the Business owners about GST and the difficulties they would face in case of the
current awareness about it. 148 Small business owners were analyzed in order to identify the
awareness about GST from Rajasthan State and the kind and extent of relief provided and the
implementation of the provisions under the GST law. The study has revealed that there is a lack
of awareness amongst the Small business owners regarding the GST and its rules.

K. R. Sakthi Devi (2017) conducted a study on “Awareness of Taxpayers towards GST

Implementation” .This study attempts to find out what level of awareness and Satisfaction to
GST taxpayers. The sample consists of 150 taxpayers in Coimbatore District. Data collected
using questionnaires. The results showed that the level of awareness was moderate and the
majority of respondents give a high negative impact towards GST. This eventually causes the
majority of respondents did not accept the implementation of GST.

(Sanusi et al, 2015). Under GST, the taxation burden will be divided equitably between
manufacturing and services, through a lower tax rate by increasing the tax base and minimizing
exemptions. India is a federal country where both the Centre and the States have been assigned
the powers to levy and collect taxes through appropriate legislation. It has been proposed that
there would be a "Dual GST "model in India, taxes will be levied by both centre (Central GST)
and state (State GST) on Goods and Services. Hence, a dual GST would be according to the
Constitutional requirement of fiscal federalism.

(Vasanthagopal, 2011) Studied "GST in India: A Big Leap in the Indirect Taxation
System", and found that the positive impacts are dependent on a neutral and rational design of
the GST, balancing the conflicting constitutional amendment. GST would be a big rise in the
indirect taxation system and also give a new impetus to India's economic change. It is also noted
that, buoyed by the success of GST, more than 160 countries have introduced GST in some form
to other and is fast becoming the preferred form of indirect tax in the Asia Pacific region

Ehtisham Ahmed and Satya Poddar (2009) studied “Goods and Service Tax Reforms
and Intergovernmental Consideration in India” and found that GST introduction will provide
simple and transparent tax system with increase in output and productivity of economy in India.
But the benefits of GST are critically dependent on rational design of GST.
Nitin Kumar (2014) studied, “Goods and Service Tax- a Way Forward” and concluded that
implementation of GST in India help in removing economic distortion by current indirect tax
system and expected to encourage unbiased tax structure which is indifferent to geographical
locations.

21
Pinki, Supriya Kamma and Richa Verma (July 2014) studied, “Goods and Service
Tax- Panacea For Indirect Tax System in India” and concluded that the new NDA government in
India is positive towards implementation of GST and it is beneficial for central government ,
state government and as well as for consumers in long run if its implementation is backed by
strong IT infrastructure.

Agogo Mawuli (May 2014) studied, “Goods and Service Tax-An Appraisal” and found
that GST is not good for low-income countries and does not provide broad based growth to poor
countries. If still these countries want to implement GST then the rate of GST should be less than
10% for growth.

Neha and Manpreet Sharma describes about GST in their research paper titled “A study
on Goods and Service Tax in India”. They tried to find out the benefits of GST and current status
of GST in India. According to them we are moving towards GST due to faults in our current
indirect tax structure. Our current indirect tax structure is unable to increase the competitiveness
of industries. Both the authors’ emphasis on the benefits of GST

22
 CHAPTER-3
RESEARCH
METHODOLOGY

Introduction Research Methodology

Research is a logical and systematic search for new and useful information on a particular topic.
Research methodology is a systematic way to solve problem. It is a science of studying how
research is to be carried out. Essentially, the procedures by which researcher goes about their
work of describing, explaining and predicating phenomenon are called research methodology.

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RESEARCH DESIGN-
It is a plan of action before starting a research. The research design used for the study is
descriptive in nature. A good research design has characteristics viz, problem definition, time
required for the research project and estimate of the expenses to be incurred the function of
research design is to ensure that the required data are collected and they are collected
economically. A research design is purely and simply the framework for a study that guide the
location and analysis data. In this project the two basic types of research design are used.

1st
Exploratory Research
All research projects must start with exploratory research. This is a preliminary phase and is
absolutely essential in order to obtain a proper definition of the project in hand. The major
emphasis is on the discovery if ideas and insights. The exploratory study is particularly helpful in
breaking broad and vast problems into smaller, more precise sub problem statement. Exploratory
research is also used to increase the familiarity with the project under investigation

2nd
Descriptive Research
It is the design that one simply describes something such as demographic characteristic of
people. The descriptive study is typically concerned with determining frequency with which
something occurs or how variables vary together. A descriptive study requires a clear
specification of who, what, when, and why apex of the research. It requires formulation of more
specific hypothesis and the testing these through statistically inference technique.

Developing a Research Plan

The present study is exploratory in nature. Since GST is a new tax reform in Indian, there are
hardly ant studies in this area. Specially the Empirical and behavior studies on GST in Indian
The data for this study has been collected through self administration. Due to time limitation and
other constrains direct personnel interview study is used. A structured questionnaire was framed
as it consumes less time duration and it is very important form the point of view of information it
is easier to tabulate and interpret. Moreover respondents prefer to give direct answer.

SOURCES OF DATA
The correct information is the key to success. Data information is of tow types; Primary Data and
Secondary Data. Primary data information is collected by researcher or person himself where as
secondary data is collected by other but utilized by the researcher.

Primary Data: The study is largely based on the primary data collected through the structured
Questionnaire Method.
The questionnaire was divided into two sections Section A consist of personal information and
the Section B consisted of the question which fulfill the research objectives.

Secondary Data: This type of data has already been collected by some else and has already
passed through statistical process. This type of data has been collected from the following
sources

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 ➢ Internet
➢ Books
➢ Journals
➢ Magazines

Both primary and secondary data has been used in this research project.

SAMPLING SIZE-
The Sample size for the study is 50.

SAMPLING METHOD-
Convenient sampling technique is used for data collection. The sampling was judgment sampling

DATA COLLECTION
Data collection is the process to gather information about the relevant topic research, which is to
be done. Data collection usually takes place early in an improvement project, and is often
formalized through data collection plan.

TOOL FOR DATA COLLECTION-

Questionnaire is used for collection of data.
Questionnaire is a research instrument consisting of a series of questions and other prompts for
the purpose of gathering information for respondents. Although they are often designed for
statistical analysis of the responses.
Link of the questionnaire: -
(HTTP://docs.google.come/forms/d/e/1/FAIpQLSdDNT12_G2ayoYXtNs2Ebzlr1ihLhnkT2rVV
DDpHzbVBgqZJQ/viewform )

TOOLS FOR DATA ANALYSIS-

Data analysis was done through percentage method and presented in graphs, diagrams and
charts.

Limitations of the Study-

• Respondent’s response may or may not be correct.

• Some respondents refused to disclose the fact due to lack of time and interest.

• The data’s are collected only from 50 general public due to time constraint.

• Some respondents may have filled the questionnaire with some kind of influence which
would not provide true data or influenced data.

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 CHAPTER-4
DATA
ANALYSIS
AND
INTERPRETATION

DATA ANALYSIS AND INTERPRETATION

26
DATA ANALYSIS

The data collected from various respondents have to analysis for the drawing conclusion. So in
this chapter effort has been made to analysis and interprets the collected data toward the opinion
Of the public on implementation of the new tax reform in Indian GST. (Good And Service tax)

First of all the data collected is presented in the tabular for and then the data have been shown on
the pie chart with the percentage.

TABLE 4.1- An attempt has been made to classify the respondents on the basis of Gender

Table 4.1
Classification of the respondents on the basis of the gender
Serial no. Gender Number of respondents Percentage
1 Male 30 60%
2 Female 20 40%

Source – information from primary source.

Gender
Male Female

40%

60%

Interpretation – The table number 4.1 clearly shows that the maximum number of respondents
were male. The chart shows that 60% of male have responded to the questionnaire where as only
40% of the female have responded to the questionnaire.

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TABLE 4.2 – An attempt has been made to classify the respondent on the basis of their Age
factor.

Table 4.2
Classification of the respondents on the basis of age

Serial .no Age group Number of respondents Percentage %

1 18 – 22 33 66%
2 23 – 27 6 12%
3 27 and above 11 22%

Source – the source of above information is the primary source.

Age group

18 - 22 23 - 27 27 and above

22%

12%

66%

Interpretation – the above given data and figures clearly shows that the maximum respondents
were of age group 18 to 22 that is 66%. Then it is 22% response from the age group above 27.
And 12% of response was from the age group 23 to 27. Hence it can be concluded that the
maximum respondents were between 18 to 22 years of age.

TABLE 4.3 – An attempt has been made to classify the designation of the respondents. The
designations were – 1:- Students, 2:- Paid jobs, 3:- Business, 4:- Professional job.

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 Table 4.3
Classification of respondents on the basis of their designation
Serial no. Designation Number of respondents Percentage %
1 Student 34 68%
2 Paid job 4 8%
3 Business 5 10%
4 Professional job 7 14%

Source – the source of information is the primary source that is questionnaire

DESIGNATION
students paid job business professional job

14%

10%

8%

68%

Interpretation: - The above figures and the data make it clear that the maximum respondent that
is 68% is student. 8% of them are from the paid job, 10% of the respondents are from business
background and 14% of the respondents are from professional background.

TABLE 4.4 – An attempt is made to classify the respondents on the basis, whether they do
possess some idea about the tax reform GST or not.

29
 Table 4.4
Classification of respondents on the basis of their awareness about the GST

Serial no Statement Number of respondents Percentage %

1 Yes 44 88%
2 No - -
3 May be 6 12%

Source – The source of the information is the primary source the questionnaire

Awareness
Yes No May be

0% 12%

88%

Interpretation-

The above data and figure helps us to interpret that the major number of the respondents
tends to have some awareness about the tax reform GST. 88% of the respondents have idea about
the tax reform GST, there was also 12% response to the option may be. It could be because much
of the respondents were between the age group 18 to 22 where they might have not been
introduced to the term GST.

TABLE 4.5 - An attempt has been made to know the source of information of the
respondents. The source from where they have got to know about the tax reform GST.

30
 Table 4.5

Source of the information

Serial no. Source Number of respondents Percentage %

1 Newspaper 12 24%
2 Online 16 32%
3 Seminar/classes 12 24%
4 Mass media 7 14%
5 others 3 6%
Source – The source of the data and figures is primary. That is questionnaire.

Source of the information

Newspaper Online Seminar/classes Mass media Others

6%

14% 24%

24%

32%

Interpretation –

From the above figures and data it can be interpreted that major source of information
about GST among the respondents is an online source of information which is 32%, both
Newspaper and Seminar/classes is the source of information for respondents 24% each. 14% of
the respondents have gained knowledge about GST from Mass media. And rest 6% from other
sources.

TABLE 4.6- An attempt has been made to know whether the respondents know about the
proposed tax rates or not.

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 Table 4.6

Knowledge about proposed rate of GST

Serial no. Statement Number of Percentage %

respondents
1 Yes 37 74%
2 no 13 26%

Source – The source of the information is the primary source.

Knowledge about proposed rate of GST

No
26%

Yes
74%

Interpretation –

From the figures and data it can be concluded that major respondents knew about the
proposed rate of GST that 74% of the respondents. Only 26% of the respondents do not have any
idea regarding proposed rate of GST.

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 TABLE 4.7 – An attempt is made to know if the respondents are satisfied with the
proposed rate of tax or not.

Table 4.7

Is proposed rate satisfactory?

Serial no Statement Number of respondents Percentage %

1 Yes 32 64%
2 no 18 26%

Source – The source of the information is the primary source.

Is proposed rate satisfactory

Yes No

36%

64%

Interpretation –

From the above data it can be concluded that 64% of the respondents finds the tax rate
satisfactory. 36% of them are not satisfied with the proposed tax rate.

TABLE 4.8 – An attempt is made to find that whether GST affects the consumption
behavior or not.

33
 Table 4.8

Does GST affect consumption behavior?

Serial no Statement Number of respondents Percentage

1 Yes 38 76%
2 No 3 6%
3 May be 9 18%

Source – The source of the information is the primary source.

Does GST affect consumption behaviour

Yes No May be

18%

6%

76%

Interpretation –

Major respondents are with the opinion that GST has affected the consumption behavior
that is about 76%, and 6% thinks that GST has no affect on the consumption behavior. And 18%
of the people are of the view that there is no affect of GST on the consumption behavior.

34
 TABLE 4.9- An attempt has been to know whether the respondent thinks that the GST
has changed the price level or not.

Table 4.9

Opinion on price level after implementation of GST

Serial no Statement Number of respondents Percentage %

1 Increased 22 44%
2 Decreased 17 34%
3 No opinion 11 22%

Source – The source of the information is the primary source.

Price level after implementation of GST

Increased Decreased No opinion

22%

44%

34%

Interpretation –

It can be concluded from the data and figures that the major percentage of respondents
thinks that the implementation of GST has increased the price level, 44% of them thinks so. 34%
of the respondents think that the implementation GST has decreased the price level. 22% of the
respondents think that they are of no opinion on this question.

TABLE 4.10- An attempt was made to know whether, GST has satisfied the main
objective of “ONE NATION, ONE TAX" or not.

35
 Table 4.10

Has GST satisfied “ONE NATION, ONE TAX?”

Serial no Statement Number of respondents Percentage %

1 Strongly agree 32 64%
2 Agree 13 26%
3 Disagree 4 8%
4 Strongly disagree 1 2%

Source – The source of the information is the primary source.

Has GST satisfied “ONE NATION, ONE TAX"

Strongly agree Agree Disagree Strongly disagree

2%

8%

26%

64%

Interpretation –

From the above data it can be concluded that most of the respondents finds GST to be
fulfilling the “ONE NATION, ONE TAX”, about 64% of respondents think so and strongly
agree. 26% of the respondents only agree to it. 8% of the respondents disagree with it and says
that the GST has not satisfied the objective of “ONE NATION, ONE TAX". And only 2% of
them strongly disagree with GST satisfying the objective of ONE NATION ONE TAX.

TABLE 4.11 – An attempt is made to find whether the respondent finds GST to be a fair
tax or not.

36
 Table 4.11

Is GST a fair tax?

Serial no Statement Number of respondents Percentage %

1 Yes 48 96%
2 No 2 4%

Source – The source of the information is the primary source.

Is GST a fair tax.

Yes No

4%

96%

Interpretation

From the above data and figures it can be said that the major respondents find GST to be
a fair tax. 96% of the respondents think GST to be a fair tax. And only 4% of the respondents
think GST is not a fair tax.

37
 TABLE 4.12- an attempt is made to know that, do the respondents think that the
government has provided enough awareness of the tax reform before the implementation of GST
or not.

Table 4.12

Has government provided enough awareness before implementation of GST

Serial no Statement Number of Percentage %

respondents
1 Yes 32 64%
2 No 18 36%

Source – The source of the information is the primary source.

Has government provided enough

information before implementation of GST.
Yes No

36%

64%

Interpretation

64% of the respondents are with the view that the government has provided enough
information about GST before its implementation. And 36% of the respondents said that the
government did not provide enough information before its implementation.

38
 TABLE 4.13 – An attempt is made to know whether the public is in support of GST or
not.

Table 4.12

Do you support GST?

Serial no Statement Number of respondents Percentage %

1 Yes 34 68%
2 No 2 4%
3 May be 14 28%

Source – The source of the information is the primary source.

Do you support GST

28%

Yes
No
May be
4%
68%

Interpretation

Major number of respondents is in support of GST, 68% of them. 28% are of no idea
whether to supports GST or not. And 4% are not in support of GST. This can be used to
conclude that most of the people support GST.

39
 Reasons given by the respondents who do not support were also known. Out of which
50% of them said that GST has increased the cost of living. 41% said that GST is very difficult
to understand and rest of the 9% said that GST has been proven to be burden on common people.

CHAPTER – 5
➢ FINDINGS.
➢ CONCLUSION.
➢ SUGGESTIONS.

40
 FINDINGS OF THE STUDY
After the analysis and interpretation of the data collected these are the following findings.

➢ Most of the respondents where male.

➢ Majority of the respondents come under the age group of 18 to 22, which is about 66 %.
➢ About 68% of the respondents where the students.
➢ 74% of the respondents have knowledge about the proposed rate of GST.
➢ Most of the respondents have positive view point regarding GST.
➢ 96% of the respondent finds GST to be a fair tax.
➢ 64% of the respondents strongly agree that GST has satisfied the main objective of
‘ONE NATION, ONE TAX’.
➢ 64% of the respondents said that the tax rate of GST is satisfactory.
➢ 76% of the respondents has said that implementation of GST has brought about a change
in the consumption behavior.
➢ 44% said that the implementation of GST has increased the price level.
➢ 68% of the respondents are in support of GST. Out of remaining 32% of respondents
28% were of no opinion whether to support GST or not.

Suggestion

• The customers suggested that there should be a transparent and simple transaction
provisions which is smooth and can be understood easily
• Special focus on awareness is required for all the officers, professionals and assesses.
• An expert panel should be formed to recommend modifications to the Constitutions and it
should be published in the mass media
• The public also are not well informed on the benefits of the GST. Therefore, in order to
ensure efficient implementation of the GST, the government should come out with a
proper guideline to the society on the procedures for the implementation of GST
• Lastly, the government must ensure a good management of the income collected from the
GST.

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 CONCLUSUION
This study highlighted the overall implementation of GST. The government to put in more effort
to ensure that the consumers have a clear understanding and a well positive developed perception
toward GST, which would be helpful in better implementation and acceptation of the new tax
reform GST. The implementation of GST is a changing face of India which is a welcome move
and the government should be well equipped for that which is a symptom of fast paced economy .
Findings of this study show that the level of awareness on the benefit of GST among the Indian
are still relatively low. It could be due to the lack of knowledge or information regarding GST.
For this reason, the government should reflect on how to increase the knowledge of GST among
citizen. Furthermore, they should put more effort in delivering information and educating the
citizen regarding GST, so that the citizen will have positive view about this GST
implementation. Positive view of the citizen on the implementation of GST will help the
government in smoothly maintaining the implementation of the GST. The positivity of the
perception of citizen regarding the implementation of the GST is very much important for the
smooth functioning of the new indirect tax system. Government should make every possible
attempt and should take every possible step for the proper awareness of GST whole over the
country to get benefited by the new taxation system.

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 BIBLIOGRAPHY

RESEARCH BOOK

• GOODS AND SERVICE TAX, ONE NATION ONE TAX.

BY – Prafulla Kumar Rout,

Sudhansu Sekhar Panda,
Ganesh Prasad panda

RESEARCH WEBSITE-
www.iosrjournals.org
WWW.GST.in
WWW.Wikipedia.com
www.researchgate.com
www.gstindia.com
www.gstcouncil.com
www.financialexpress.com

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