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A Project Report on Customers Perception Towards

GST ( Goods & Service Tax) in


Distt Hamirpur Himachal Pradesh ( India)

SUBMITTED FOR THE PARTIAL FULFILLMENT OF THE


REQUIREMENT FOR THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

Session 2016-2018

Submitted To : Submitted By :
HP Technical University, Hamirpur Pankaj Sharma
MBA Semester IV
Roll No. (1601028023)

GAUTAM INSTITUTE OF MANAGEMENT & TECHNOLOGY , HAMIRPUR ( HP)

Affiliated To

HIMACHAL PRADESH TECHNICAL UNIVERSITY , HAMIRPUR (HP)


CERTIFICATE

This is to certify that the project report entitled, as A study on Customers Perception Towards
Goods and Service Tax (GST). At Hamirpur District H P. Submitted in partial fulfillment of
requirement for the award of the degree of MASTER OF BUSINESS ADMINISTRATION from
GAUTAM INSTITUTE OF MANAGEMENT & TECHNOLOGY , HAMIRPUR. carried out by
Mr . Pankaj Sharma S/O Sh. Suresh Chand under Roll No. 1601028023 has been carried out
the sucessfull completion of the 4th semester , under my supervision and guidance.

The data reported in it the best of my knowledge data reported is original the assistance and help
receive during the course of this project has duly acknowledged.

Date :........................... Signature

Place …........................ M/S Anjna Kumari

( Project Guide )

II
DECLARATION

I here by Pankaj Sharma , University Roll No. 1601028023 declare that I have done the project
report on the topic A Study on Customers Perception Towards the Goods & Service Tax (GST)
in Hamirpur Distt HP which is submitted as partial fulfillment for the requirement of the degree of
MBA . The data presented in the project is pure. The assistance and help that received during the
course of this investigation has been duly acknowledged . It is further declared that it has an original
piece of work and it is worthy of the consideration for the degree of M.B.A.

Date.................... …........................

Place...................... Pankaj Sharma

Roll No. 1601028023

Course : M.B.A. 4th Semester

III
ACKNOWLEDGEMENT

I am deeply indebted to many people for the sucessful completion of this project . I would like to
take this opportunity and go on record to thank them for their help and support . I am thankful to the
Gautam Institute of Management & Technology for all the support provided for this project .

I express my deep sense of gratuity and sincere feelings of obligation to my Project Guide M/s Anjna
Kumari who has helped me in overcoming many difficulties and who has imparted me the necessary
conceptual knowledge .

I wish to thank all my teachers - for their helpful inputs - insightful comments - steadfast love and
support .

Date …............ Thanking You

Place …............... Pankaj Sharma

IV
PREFACE

This project report has been prepared in partial fullfillment of the requirement for the subject : The
Research Report on the topic “ A Study on Customers Perception towards Goods and Service Tax “
in Hamirpur at Himachal Pradesh..in M.B.A. 4th Semester in the academic year 2017-2018 .

Goods and Service Tax GST is all set to be a game changer for the Indian economy. The tax is
expected to reduce the concept of ‘tax on tax’, increase the gross domestic product of the economy
and reduce prices. In India, there are different indirect taxes applied on goods and services by central
and state government. GST is intended to include all these taxes into one tax with seamless ITC and
charged on both goods and services. For the introduction of GST, the Government needs to get the
Constitution Amendment Bill passed so that the proposed objective of subsuming all taxes and
allowing states to tax subjects in Union list and vice versa is achieved. Without these powers, it is not
legally possible to move towards GST. Conceptually GST is expected to have numerous benefits like
reduction in compliances in the long run since multiple taxes will be replaced with one tax. It is
expected to bring down prices and hence the inflation since it will remove the impact of tax on tax
and enable seamless credit. It is expected to generate revenue for the country as the tax base will
increase as the GST rate will be somewhere around 27% with both goods and services covered. It is
also expected to make exports from India competitive and India a preferred destination for foreign
investment since GST is a globally accepted tax. Unless the issues relating to GST has been
overcome, the GST would become a bare wall without any scripts to describe in future.

v
ABSTRACT

This Project Repor Purpose to examine the key factor that has contributed to the Customers
Perception towards Goods and service Tax (GST) in Hamirpur region of Himachal Pradesh. In this
study, several identificable variables were selected concerning tax knowledge, tax morale, tax
compliance. Using questionaire as a research instrument, 50 sets of questionaires had been
distributed. Multiple regression analysis was used to test cause of relationship among tax knowledge,
tax morale, and tax compliance with tax payer's awareness on GST. The results revealed that all of
three independent variables were found to have significant impact towards the public awareness on
Goods and Service Tax (GST)

First chapter are covers the introduction of the taxation system , background of GST in outside of
india and with in india . Concept of GST , Types of GST , Structure of GST , Impact of GST in
different Sectors and How To file the GST return , GST slab and Benefits of GST.

The Second Chapter i.e. Literature Review it includes more than 20 Studies of different researchers
are analysis carefully .

In the Third Chapter i.e. research methodology highlights the problem statement , scope of study ,
need of study, objective of study , research design , universe of study , sampling design , sample
technique and sample size and data collection methods and limitations of study.

Vii
TABLE OF CONTENTS

Sr. No. Chapters Contents Page No.


1 Cover Page I
2 Certificate II
3 Declaration III
4 Acknowledgment IV
5 Preface V
6 Abstract Vi
7 Table of Contents Vii
8 List of Tables iX
9 List of Figures Xi
10 Abbreviations Xii

11 1 Introduction of the Topic . 1 --- 32


12 Concept of Tax Meaning and Definitions, 2
Features .
13 Types of Taxes 3
14 Structure of Tax 4
15 Taxation System in India. 5
16 Concept Of GST 8
17 Meaning , definitions , features of GST. 5
18 Background of GST in Outside India and with 9
in India
19 The Himachal Pradesh GST Act 2017 11
20 GST structure and Types of GST 12
21 Challenges of GST implementations 15
22 Opportunities of GST 18
23 Impact of GST in different Sectors. 24
24 Benefits Of GST . 28
25 How to File GST Return and Tax Slab of 32
GST .
Sr. No. Chapters Contents Page No.
26 2 Literature Review 33--39

27 3 Research Methodology 40 --- 47


28 Introduction of research methodology 42
29 Problem Statement
30 Need of Study
31 Scope of Study
32 Objective of Study 43
33 Methodology used in study
34 Research Design 45
35 Sample Design
36 Sample Size
37 Data Collection 47
38 Meaning , Types of Data collection
39 Data Analysis Instrument .

40 C.. 0 4 Data Analysis and Interpretation . 48 --- 75


41 Data represents in Tables and Graphs 49
42 Section A 50 – 55
Respondents Informations.
43 Section B 56-- 75
Data Collected from GST Perception

44 C...0 5 Summary 76
45 Findings 77
46 Suggestions 78
47 Conclusion and References 79
48 Questionnaire. 81 – 83

IX
LIST OF TABLES

Table No. Details of Tables Page No.


4.1 Classification of age group of the respondents. 49

4.2 Classification of qualification of the respondents. 50


4.3 Classification on the basis of their Status. 51
4.4 Classification on the basis of Gender. 52
4.5 Classification on the basis of their Occupations. 53
4.6 Classification on the basis of their perception towards statements 54
are follows
4.7 GST is a very good tax reforms for India. 55

4.8 GST has increased the various legal formalities. 56

4.9 GST has increased the tax burden on common man. 57

4.1 India is really ready for GST implementation. 58

4.11 GST has increased the tax burden on businessman. 59

4.12 Govt has imposed GST on people without any preparation. 60

4.13 GST is very difficult to understand . 61

4.14 GST will increased the inflation in the country. 62

4.15 GST is beneficial in Long Term. 63

4.16 GST will increase the Tax collection of GOVT. 64

.4.17 GST will affecting small business very badly. 65

4.18 GST is impacts the customer purchasing power in effectively. 66

4.19 GST affects the Indian capital stock market operations. 67

4.2 GST will cause an increase in the cost of living. 68


Table No. Details of Tables Page No.
4.21 GST is a good method to replace the sales and service tax. 69

4.22 The implementation of GST will result in the products and services 70
to be more expensive.

4.23 The newly Implemented GST confused the customers. 71

4.24 The Goods and Service Tax system is a way for the government to 72
collect revenue to manage an economy.

4.25 Sentences and wording of GST guide is very lengthy and not user 73
friendly.
4.26 Classification of respondents on their response regarding statement 74
GST encourage individuals to save part of their income .

Xi
LIST OF ABBREVATIONS

GST Goods and Service Tax.

SST Sales Tax and Service Tax.

HPCD Himachal Pradesh Custom Department.

INT Intention to GST compliance.

TLE Tax Law and Enforcement.

TK Tax Knowledge.

TSC Tax System Complexity.

CGST Central Goods and Service Tax.

SGST State Goods and Service Tax.

IGST Integrated Goods and Service Tax.

Xii
Chapter 1

Introduction

1.
Concept and Introduction of Tax :

Taxation is the inherent power of the state to impose and demand contribution upon persons ,
properties , or right for the purpose of generating revenues for public purposes.

Taxes are enforced proportional contributions from persons to property levied by the law making
body of the state by virtue of its sovereignty for the support of the government and all public needs.

Brief History of Taxation :

Tax is today an important source of revenue for the government in all the countries . More than 3000
years ago , the inhabitants of ancient Egypt and Greece used to pay tax , consumption taxes and
custom duties. Income tax was first introduced in India in 1860 by James Wilson who become
Indians First Finance Member.

In order to meet the losses sustained by the government on account of military mutiny of 1857. In
1918 A New Income Tax bill was passed and which was further again replace in 1922. Finally, The
Ministry of Law and Finance The Income Tax was Passed in 1961 and brought came in force on 1 st
April 1962. and this is also known as the Financial Year in Current Era. I e. ( 01.04.18 – 31.03.2019)

Taxation System :

Tax system of raising money to finance Government. All governments require payment of money
taxes from people.

Government use revenues to pay soldiers and police to build dams and roads, to operate schools and
hospitals, to provide food to the poor and medical care facilities etc and also hundreds of other
purposes without taxes to fund its activities, govt could not exist.

So, taxation is the most important source of revenues for modern government typically according for
90% or more of their income .

( 2.)
Essentials Characteristics of Tax :

1. It is an enforced Contribution.

2. It is generally payable by Money.

3. It proportionate in character , usually based on ability to pay .

4. It is levied on person and property with the jurisdiction of the state.

5. It is levied for public purpose.

6. It is commonly required to be paid a regular intervals.

Why are Taxes Levied ?

The reason for levy of taxes is that they constitute the basic source of revenue to the government.
Revenue so raised is utilized for meeting the expenses of government like defense, provision of
education , health care, Infrastructure facilities like roads , dams etc.

What are the Reasons of Taxation ?

1. Provide the basic facilities for every citizen of country.

2. Finance government multiple projects and schemes.

3. Protection of Life.

4. Responsibility of citizen to the Nation.

Meaning of Tax :

The word Tax came from Latin word “Taxo , Tax are '' which means To asses or estimate .

Tax can be defined in the following ways :

“ The compulsory payments made to governments associated with certain activities are called Taxes
''

( 3)
“ A general purpose, compulsory contribution by the people to public treasury to meet the
expenditure of government is called Tax ''

“ A specific amount of money demanded by government from its public levied on their income ,
sales, wealth etc. ''

“ Taxes are the price we pay for a civilized society ''

Tax in general, is the imposition of financial charge upon an individual or a company by the govt of
India or their respective state or similar other functional equivalents in a state. The computation and
imposition of the varied taxes prevalent in the country are carried on by the Ministry of Finance
Department of Revenue.

Different Types Of Taxes :

( 4.)
Different Types of Taxes In India :

Prevalence of various kinds of taxes is found in India. Taxes in India can be either direct or indirect.
However, the types of taxes even depend on whether a particular tax is being levied by the central or
the state government or any other municipalities . Following are some of the major Indian
government are :

1. Direct Taxes :

It is names so because it is directly paid to the union government of India. As per a survey, the
Republic of India has witnessed a consistent rise in the collection of such taxes over a period of past
years . The visible growth in these tax collections as well as the rates of taxes reflects a healthy tax
along with better administration of taxation. To name a few of the direct taxes, which are imposed by
the Indian government are :

(I) Banking cash Transaction Tax.

(II) Corporate Tax.

(III) Capital Gains Tax.

(IV) Double Tax Avoidance treaty.

(V) Fringe Benefit Tax.

(VI) Securities Transaction Tax.

(VII) Personal Income-tax.

(VIII) Tax Incentives.

2. Indirect Taxes :

As opposed to the direct taxes, such a tax in the nation is generally levied on some specified services
or some particular goods . An indirect tax is not levied on any particular organization or an
individual. Almost all the activities , which fall with in the periphery of the indirect taxation , are
included in the range starting from manufacturing goods and delivery of services to those that are
meant for consumption. 5.
Usually, the indirect taxation in the Indian Republic is a complex procedure that involves laws and
regulations, which are interconnected to each other. These taxation regulations even include some
laws that are specific to some of the states of the country. The organizations offer services in all or
most of the related fields , some of which are as follows :

(I) Anti Dumping Duty

(II) Custom Duty.

(III) Excise Duty.

(IV) Sales Tax.

(V) Service Tax .

(VI) Value Added Tax . Or VAT

(3) Local Taxes In India :

The most known tax , which is levied by the local municipal jurisdictions on the entry of goods, is
known as the Entry Tax or the Doctor Tax.

(4) Income Tax

Income tax in India includes all income except the agricultural income that is levied and collected by
the central government. This particular income is also shared with the states. The income tax was
incorporated in India from the year 1860.

However, after many alteration, finally with the Indian Income-tax Act , 1922, there was a
revolutionary change brought by the All India Income Tax Committee. The significant as after this
the administration of the Income Tax came under the direct control of the central Government. This
act got amended again in the year 1961 , and the present Income Tax regime in India is still
following the provisions of the act of 1961.

5) Consumption Tax :

Consumption Tax is applicable on the consumption of any type of goods or service. This particular
tax is based on consumption and not on income. The consumption Tax can be regarded as a sales tax,
as this tax is also regressive in nature like the other pure sales taxes. However , there are some
remedies by which the consumption tax can be made progressive in nature.

1.1 Background of Goods and Service Tax Outside India

Goods and Service also known as the value added tax (VAT) or Harmonized sales tax. Following are
some successfully implemented GST models in other countries :

1. France :

a. Rate of GST 19.6%

b. France was the first country to introduced GST in 1954.

World wide , almost 150 countries have introduced GST in one or the other form since now. Most of
the countries have a unified GST System. Brazil and Canada follow a dual system vis a vis India is
going to introduce . In china , GST applies only to goods and the provisions of repairs , replacements
and processing services.

2. Australia :

a. Rates of GST 10%

b. GST is administrated by the tax office on behalf of the Australian Government, and is appropriated
to the states and territories.

c. Every company whose turnover exceeds $ 75000 is liable for registration under GST and in
default 1/11th of the income and some amount is form of penalty.

3. Canada :

a. GST is imposed at 5% in Part ix of the excise tax act . GST is levied on goods and service made
in Canada except items that are either exempt or zero rated.

b. When a supplier makes a zero rated supply, he is eligible to recover any GST paid on purchases
but the supplier who makes a supply of exempt goods he is not eligible take input tax credit on
purchases for the purpose of making the exempt goods and services.

4. New Zealand :

a. Rate of GST 12.5% 8


b. Exceptions are rent collected on residential rental properties, donations and financial services.

Historical Background of Goods and Service Tax in India :

1. Amaresh Baghchi Report , 1994 suggests that the introduction of Value Added Tax will act as
root for implementation of Goods and Service Tax in india.

2. Ashim Dasgupta, 2000 empowered committee, which introduces VAT system in 2005 ,
which has replaced old age taxation system in India.

3. Vijay Kelkar Task Force 2004, it strongly recommended that the integration of indirect taxes
in to the form of GST in India.

4. Announcement of GST to be implemented by 1 st April , 2010 After successfully


implementation of VAT system in India and suggestion various committees and task forces on GST,
the union government first time in union budget 2006-07 announced that the GST would be
applicable from 1st April 2010.

5. The Government has formed various joint working groups of state finance ministers to study
the impact of GST various states.

6. The empowered committees of state finance ministers after various meetings reached on
amicable formula for implementation of GST in India.

7. Task force of finance ministers has submitted their report in December 2009 on structure of
GST in India.

8. In August , 2013 Standing committee on Finance tabled its report on GST Bill.

9. In December, 2014 revised constitution Amendment bill was tabled in Parliament.

10. On June 14, 2016 , the ministry of finance released draft model law on GST in public domain
for views and suggestions .

11. GST bill passed in Rajya Sabha on 3rd August , 2016 the constitution amendment (122nd ) bill
2014 was passed by Rajya Sabha with concern amendments.

a. The changes made by Rajya Sabha were unanimously passed by Lok Sabha. 9
b. After the passage of amendment bill in Rajya Sabha and the charges subsequently ratified and
passed by the lok sabha unanimously, the bill was adopted by a majority of state Legislatures where
in approval by at least 50% of the state Assemblies was required.

c. The final step to the constitution (122nd ) amendment bill, 2014 becoming an act was taken when
the Honorable President of India gave his final assent on September 8, 2016.

12. In 2017 – Four GST related bills become act to following Presidents assent and passage in
parliament:

a. Central GST Bill.

b. Integrated GST Bill .

c. Union Territory GST Bill.

d. GST (compensation to states ) Bill.

13. In 2017 GST Council finalizing the GST Rules and GST Rates.

14. When GST is Applicable – Modi Govt. Want to applicable GST Bill from 1 st July 2017, Due
to a some legal Problems GST Bill is not applicable before 1st July 2017.

THE HIMACHAL PRADESH GOODS AND SERVICES TAX ACT, 2017

Definitions.—In this Act, unless the context otherwise requires

(1) “actionable claim” shall have the same meaning as assigned to it in section 3 of the Transfer of
Property Act, 1882, (4 of 1882.) ;

(2) “address of delivery” means the address of the recipient of goods or services or both indicated on
the tax invoice issued by a registered person for delivery of such goods or services or both;

(3) “address on record” means the address of the recipient as available in the records of the
supplier;

(4) “adjudicating authority” means any authority, appointed or authorized to pass any order or
decision under this Act, but does not include the Commissioner, Revision Authority, the Authority
for Advance Ruling, the Appellate Authority for Advance Ruling, the Appellate Authority and the
Appellate Tribunal;

(5) “agent” means a person, including a factor, broker, commission agent, arhatia, del credere agent,
an auctioneer or any other mercantile agent, by whatever name called, who carries on the business of
supply or receipt of goods or services or both on behalf of another;

(6) “aggregate turnover” means the aggregate value of all taxable supplies (excluding the value of
inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies,
exports of goods or services or both and inter-State supplies of persons having the same Permanent
Account Number, to be computed on all India basis but excludes Central tax, State tax, Union
territory tax, integrated tax and cess;

(7) “agriculturist” means an individual or a Hindu Undivided Family who undertakes cultivation
of land—

(a) by own lab our, or (b) by the lab our of family, or (c) by servants on wages payable in cash or
kind or by hired lab our under personal supervision or the personal supervision of any member of the
family;

(8) “Appellate Authority” means an authority appointed or authorized to hear appeals and referred
to in section 107;

(9) “Appellate Tribunal” means the Goods and Services Tax Appellate Tribunal referred to in
section 109;

(10) “appointed day” means the date on which the provisions of this Act shall come into force;
(11) “assessment” means determination of tax liability under this Act and includes self assessment,
re-assessment, provisional assessment, summary assessment and best judgment assessment;

(12) “associated enterprises” shall have the same meaning as assigned to it in section 92A of the
Income-tax Act, 1961, (43 of 1961)

(13) “audit” means the examination of records, returns and other documents maintained or furnished
by the registered person under this Act or the rules made there under or under any other law for the
time being in force to verify the correctness of turnover declared, taxes paid, refund claimed and
input tax credit availed, and to assess his compliance with the provisions of this Act or the rules
made there under;

(14) “authorized bank” shall mean a bank or a branch of a bank authorized by the Central
Government to collect the tax or any other amount payable under this Act;

(15) “authorized representative” means the representative as referred to under section 116;

(16) “Board” means the Central Board of Excise and Customs constituted under the Central Boards
of Revenue Act, 1963, ( 54 of 1963);

(17) “business” includes––

(a) any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar
activity, whether or not it is for a pecuniary benefit;

(b) any activity or transaction in connection with or incidental or ancillary to sub clause (a);

(c) any activity or transaction in the nature of sub-clause (a), whether or not there is volume,
frequency, continuity or regularity of such transaction; (d) supply or acquisition of goods including
capital goods and services in connection with commencement or closure of business;

(e) provision by a club, association, society, or any such body (for a subscription or any other
consideration) of the facilities or benefits to its members;

(f) admission, for a consideration, of persons to any premises;

(g) services supplied by a person as the holder of an office which has been accepted by him in the
course or furtherance of his trade, profession or vocation;

(h) services provided by a race club by way of totalizator or a license to book maker in such club;
and

(i) any activity or transaction undertaken by the Central Government, the State Government or any
local authority in which they are engaged as public authorities.

13
Concept Of Goods and Service Tax (GST)

Introduction Of GST

The reference of GST was first made in the Indian Budget in 2006-07 by the Finance Minister
Mr. P. Chidambaram as a single centralized Indirect tax. The GST constitution ( 122 nd )
Amendment Bill 2014 was introduced on December 19, 2014 and passed on May 06, 2015 in
the lok sabha and yet to be passed in the Rajya Sabha.

The bill seeks to amend the constitution to introduce Goods and Services tax vide proposed
new article 246 A. This article gives power to Legislature of every state and parliament to
make laws with respect to goods and services tax where the supplies of goods or of service
take place . Recently, Union Minister Mr. Arun Jaitley said that GST could be implemented as
early as January 1, 2016.

Note: The word bill may be interpreted as the constitution (122nd ) Amendment Bill 2014.

14
Meaning Of Goods and Service Tax (GST)

Clauses 366 (12A) of the constitution Bill defines GST as “ goods and service tax” means
any tax on supply of goods, or services or both except taxes on the supply of the liquor for
human consumption. Further the clause 366 (26A) of the Bill defines Services means anything
other than Goods.

Thus it can be said that GST is a comprehensive tax levy on manufacture , sale and
consumption of goods and services at a national level . The proposed tax will be levied on all
transactions involving supply of goods and services, except those which are kept out of its
preview.

Purpose of GST :

The Two Important Purposes of GST are followings:

Single Umbrella Tax Rate:

GST shall replace a number of indirect taxes being levied by union and state government.

Removing Cascading Effect :

GST is intended to remove Tax on Tax Effect and provides to common national market for
Goods and Services.

Types Of Categories under GST rate

The GST tax is levied based on Revenue Neutral Rate . For the purpose of imposing GST tax
in India, the goods and services are categorized in to four.

These are four categories of goods and services are follows :

Exempted Categories under GST in India :

The GST and council and other GST authorities notifies list of exempted goods. Such goods
are not fallen under payment of GST tax. The authorities may modify or amend the list time to
time by adding deleting any item if required by notification to public.

Essential Goods and Services for GST in India :


Essential Category of goods and services are charged very lower GST rate. Essential goods and
services are the goods and services for necessary items under basic importance.

Standard Goods and services for GST in India :

A major share of GST tax payers falls under this category of Standard Goods and Service. A
Standard rate is charged against the goods and services under this category.

Special Goods and Services for GST tax Levy :

Under special category of goods and services, GST rates would be high. Precious metals
including luxury items of goods and services fall under special goods and services for GST rate
implementations.

GST rates in India at a glance :

Exempted categories : 0

Commonly used Goods and Services : 5%

Standard Goods and Services fall under 1st Slab : 12%

Standard Goods and Services fall under 2nd Slab : 18%

Special category of Goods and Services including Luxury Goods : 28%

` 16
15. Types Of Goods and Service Tax in India.

1. CGST ( Central Goods and Service Tax) :GST to be levied by the center.

2. SGST ( State Goods and Service Tax ) : The GST is to be levied by the states is State
GST (SGST) .

3. IGST ( Integrated Goods and Service Tax ) : Integrated GST will be levied by the center
and the states concurrently .

17
Different Taxes are Cover under GST :

1. State taxes which will be subsumed in SGST :

VAT/ Sales Tax.

Luxury Tax.

Entertainment Tax ( unless it is levied by local bodies)

Taxes on Lottery, betting, and gambling.

2. Central Taxes which will be subsumed in CGST :

Central Excise Duty.

Additional Excise Duty.

Service Tax.

The Excise duty levied under the medical and toilet preparation Act.

Additional Customs Duty.

Education Less.

Surcharges.

3. Taxes that will not be subsumed:

Stamp Duty.

Electricity Duty.

Other Entry taxes and Octori Entertainment Tax ( levied by local bodies.)

Basic Customs duty and safeguard duties on import of goods in to India.

Professional Tax.

18
Models of Goods and Service Tax :

`19
Salient Features of GST
The salient features of GST are as under:

(i) The GST would be applicable on the supply of goods or services as against the present concept of
tax on the manufacture and sale of goods or provision of services. It would be a destination based
consumption tax.

(ii) It would be a dual GST with the Center and States simultaneously levying it on a common tax
base. The GST to be levied by the Center on intrastate supply of goods and / or services would be
called the Central GST (CGST) and that to be levied by the States would be called the State GST
(SGST).

(iii) The GST would apply to all goods other than alcoholic liquor for human consumption and five
petroleum products, viz. petroleum crude, motor spirit (petrol), high speed diesel, natural gas and
aviation turbine fuel. It would apply to all services barring a few to be specified

(iv) Tobacco and tobacco products would be subject to GST.

(v) The GST would replace the following taxes currently levied and collected by the Center:

a. Central Excise duty

b. Duties of Excise (Medicinal and Toilet Preparations)

c. Additional Duties of Excise (Goods of Special Importance)

d. Additional Duties of Excise (Textiles and Textile Products)

e. Additional Duties of Customs (commonly known as CVD)

f. Special Additional Duty of Customs (SAD)

g. Service Tax h. Central Surcharges and Cesses so far as they relate to supply of goods and services

(vi) State taxes that would be subsumed under the GST are: a. State VAT b. Central Sales Tax c.
Luxury Tax d. Entry Tax (all forms) e. Entertainment and Amusement Tax (except when levied by
the local bodies) f. Taxes on advertisements g. Purchase Tax

(vii) The CGST and SGST would be levied at rates recommended by the GST Council.
(viii) There would be a floor rate with a small band of rates within which the States may fix the
rates for SGST.

(ix) The list of exempted goods and services would be common for the Center and the States which
would be finalized by GST Council.

(x) An Integrated GST (IGST) would be levied and collected by the Center on inter-State supply of
goods and services. Accounts would be settled periodically between the Center and the States to
ensure that the SGST portion of IGST is transferred to the destination State where the goods or
services are eventually consumed.

(xi) Tax payers shall be allowed to take credit of taxes paid on inputs (input tax credit) and utilize
the same for payment of output tax. However, no input tax credit on account of CGST shall be
utilized towards payment of SGST and vice versa. The credit of IGST would be permitted to be
utilized for payment of IGST, CGST and SGST in that order.

(xii) HSN (Harmonized System of Nomenclature) code shall be used for classifying the goods under
the GST regime. It is being proposed that taxpayers whose turnover is above Rs. 1.5 cores but below
Rs. 5 cores shall use 2 digit code and the taxpayers whose turnover is Rs. 5 cores and above shall use
4 digit code. Taxpayers whose turnover is below Rs. 1.5 cores will not be required to mention HSN
Code in their invoices.

(xiii) Exports shall be treated as zero-rated supply. No tax is payable on export of goods or services
but credit of the input tax related to the supply shall be admissible to exporters and the same can be
claimed as refund by them.

(xiv) Import of goods and services would be treated as inter-State supplies and would be subject to
IGST in addition to the applicable customs duties. The IGST paid shall be available as ITC for
payment of taxes on further supplies.

(xv) The laws, regulations and procedures for levy and collection of CGST and SGST would be
harmonized to the extent possible.

21
Challenges of GST implementations :

1. With respect to Tax Threshold

The threshold limit for turnover above which GST would be levied will be one area which would
have to be strictly looked at. First of all, the threshold limit should not be so low to bother small
scale traders and service providers. It also increases the allocation of government resources for such
a petty amount of revenue which may be much more costly than the amount of revenue collected.
The first impact of setting higher tax threshold would naturally lead to less revenue to the
government as the margin of tax base shrinks; second it may have on such small and not so
developed states which have set low threshold limit under current VAT regime.

2 With respect to nature of taxes

The taxes that are generally included in GST would be excise duty, countervailing duty, cess, service
tax, and state level VAT among others. Interestingly, there are numerous other states and union taxes
that would be still out of GST.

3 With respect to number of enactments of statutes

There will two types of GST laws, one at a center level called ‘Central GST (CGST)’ and the other
one at the state level - ‘State GST (SGST)’. As there seems to have different tax rates for goods and
services at the Central Level and at the State Level, and further division based on necessary and
other property based on the need, location, geography and resources of each state.

4 With respect to Rates of taxation

It is true that a tax rate should be devised in accordance with the state’s necessity of funds.
Whenever states feel that they need to raise greater revenues to fund the increased expenditure, then,
ideally, they should have power to decide how to increase the revenue.

5 With respect to tax management and Infrastructure

It depends on the states and the union how they are going to make GST a simple one. Success of any
tax reform policy or managerial measures depends on the inherent simplifications of the system,
which leads to the high conformity with the administrative measures and policies.

22
Opportunities of GST

1. An end to cascading effects

This will be the major contribution of GST for the business and commerce. At present, there are
different state level and center level indirect tax levies that are compulsory one after another on the
supply chain till the time of its utilization.

2 Growth of Revenue in States and Union

It is expected that the introduction of GST will increase the tax base but lowers down the tax rates
and also removes the multiple point This, will lead to higher amount of revenue to both the states and
the union.

3 Reduces transaction costs and unnecessary wastage's

If government works in an efficient mode, it may be also possible that a single registration and single
compliance will suffice for both SGST and CGST provided government produces effective IT
infrastructure and integration of such infrastructure of states level with the union.

4 Eliminates the multiplicity of taxation

One of the great advantages that a taxpayer can expect from GST is elimination of multiplicity of
taxation. The reduction in the number of taxation applicable in a chain of transaction will help to
clean up the current mess that is brought by existing indirect tax laws.

5 One Point Single Tax

Another feature that GST must hold is it should be ‘one point single taxation’. This also gives a lot of
comforts and confidence to business community that they would focus on business rather than
worrying about other taxation that may crop at later stage. This will help the business community to
decide their supply chain, pricing moralities and in the long run helps the consumers being goods
competitive as price will no longer be the function of tax components but function of sheer business
intelligence and innovation.

6 Reduces average tax burdens

Under GST mechanism, the cost of tax that consumers have to bear will be certain, and GST would
reduce the average tax burdens on the consumers.

7 Reduces the corruption

It is one of the major problems that India is overwhelmed with. We cannot expect anything
substantial unless there exists a political will to root it out. This will be a step towards corruption free
Indian Revenue Service.

Impact of Goods and Service Tax

I. Food Industry

The application of GST to food items will have a significant impact on those who are living under
subsistence level. But at the same time, a complete exemption for food items would drastically
shrink the tax base. Food includes grains and cereals, meat, fish and poultry, milk and dairy products,
fruits and vegetables, candy and confectionery, snacks, prepared meals for home consumption,
restaurant meals and beverages. Even if the food is within the scope of GST, such sales would
largely remain exempt due to small business registration threshold. Given the exemption of food
from CENVAT and 4% VAT on food item, the GST under a single rate would lead to a doubling of
tax burden on food.

II. Housing and Construction Industry

In India, construction and Housing sector need to be included in the GST tax base because
construction sector is a significant contributor to the national economy.

III. FMCG Sector

Despite of the economic slowdown, India's Fast Moving Consumer Goods (FMCG) has grown
consistently during the past three – four years reaching to $25 billion at retail sales in 2008.
Implementation of proposed GST and opening of Foreign Direct Investment (F.D.I.) are expected to
fuel the growth and raise industry's size to $95 Billion by 201835.

IV. Rail Sector

There have been suggestions for including the rail sector under the GST umbrella to bring about
significant tax gains and widen the tax net so as to keep overall GST rate low. This will have the
added benefit of ensuring that all inter – state transportation of goods can be tracked through the
proposed Information technology (IT) network.

V. Financial Services

In most of the countries GST is not charged on the financial services. Example, In New Zealand
most of the services covered except financial services as GST. Under the service tax, India has
followed the approach of bringing virtually all financial services within the ambit of tax where
consideration for them is in the form of an explicit fee. GST also include financial services on the
above grounds only.

VI. Information Technology enabled services

To be in sync with the best International practices, domestic supply of software should also attract
G.S.T. on the basis of mode of transaction. Hence if the software is transferred through electronic
form, it should be considered as Intellectual Property and regarded as a service. And if the software
is transmitted on media or any other tangible property, then it should be treated as goods and subject
to G.S.T. 35 According to a FICCI – Technopak Report. Implementation of GST will also help in
uniform, simplified and single point Taxation and thereby reduced prices.

VII. Impact on Small Enterprises

There will be three categories of Small Enterprises in the GST regime.

Those below threshold need not register for the GST

Those between the threshold and composition turnovers will have the option to pay a turnover based
tax or opt to join the GST regime.

Those above threshold limit will need to be within framework of GST Possible downward changes
in the threshold in some States consequent to the introduction of GST may result in obligation being
created for some dealers. In this case considerable assistance is desired. In respect of Central GST,
the position is slightly more complex. Small scale units manufacturing specified goods are allowed
exemptions of excise up to Rs. 1.5 Cr ores. These units may be required to register for payment of
GST, may see this as an additional cost.

25
Benefits of GST

(A) Make in India

(i) Will help to create a unified common national market for India, giving a boost to Foreign
investment and “Make in India” campaign

(ii) Will prevent cascading of taxes as Input Tax Credit will be available across goods and
services at every stage of supply;

(iii) Harmonization of laws, procedures and rates of tax;

(iv) It will boost export and manufacturing activity, generate more employment and thus increase
GDP with gainful employment leading to substantive economic growth;

(v) Ultimately it will help in poverty eradication by generating more employment and more
financial resources;

(vi) More efficient neutralization of taxes especially for exports thereby making our products more
competitive in the international market and give boost to Indian Exports;

(vi) Improve the overall investment climate in the country which will naturally benefit the
development in the states;

(vii) Uniform SGST and IGST rates will reduce the incentive for evasion by eliminating rate
arbitrage between neighboring States and that between intro and inter-state sales;

(viii) Average tax burden on companies is likely to come down which is expected to reduce prices
and lower prices mean more consumption, which in turn means more production thereby helping in
the growth of the industries . This will create India as a ” Manufacturing hub”.

(B) Ease of Doing Business

(i) Simpler tax regime with fewer exemptions;

(ii) Reductions in the multiplicity of taxes that are at present governing our indirect tax system
leading to simplification and uniformity;

(iii) Reduction in compliance costs - No multiple record keeping for a variety of taxes - so lesser
investment of resources and manpower in maintaining records;

(iv) Simplified and automated procedures for various processes such as registration, returns,
refunds, tax payments, etc;

(v) All interaction to be through the common GSTN portal- so less public interface between the
taxpayer and the tax administration

(vi) Will improve environment of compliance as all returns to be filed online, input credits to be
verified online, encouraging more paper trail of transactions;

(vii) Common procedures for registration of taxpayers, refund of taxes, uniform formats of tax
return, common tax base, common system of classification of goods and services will lend greater
certainty to taxation system;

(viii) Timeliness to be provided for important activities like obtaining registration, refunds, etc;

(ix) Electronic matching of input tax credits all-across India thus making the process more
transparent and accountable.

(C) Benefit to Consumers:

(i) Final price of goods is expected to be lower due to seamless flow of input tax credit between the
manufacturer, retailer and service supplier;

(ii) It is expected that a relatively large segment of small retailers will be either exempted from tax
or will suffer very low tax rates under a compounding scheme- purchases from such entities will cost
less for the consumers;

(iii) Average tax burden on companies is likely to come down which is expected to reduce prices and
lower prices mean more consumption.

27
Perception About Study :

Meaning of Perception

Perception from the Latin word “Perceptio '' is the organization , identification , and interpretation of
sensory information in order to represent and understand the presented information or the
environment .

Based on previous studies , Perception can be made that individual with positive attitude towards tax
, Commonly believed in equality and fairness in the tax system, tax administration and compliance
with the commission of the tax law.

Positive attitude towards customers regarding tax system is important to enable individual have
responsible towards development of country.

Many opinion arise because consumer are interested to know how GST will effect and affect their
interest with some agree and some refuse of GST. Some peoples believed that GST would result in
negative impact on their lives. This is proven by a number of studies related to the implementation of
GST.

GST Return
GST SLAB and Structure Of GST Rates :
32
Chapter 2

Literature Review

33
Literature Review
The proposed GST is likely to change the whole scenario of current indirect tax system. It is
considered as biggest tax reform since 1947. Currently, in India complicated indirect tax system is
followed with imbrication of taxes imposed by unions and states separately. GST will unify all the
indirect taxes under as umbrella and will create a smooth national market. Expert says that GST will
help the economy to grow in more efficient manner by improving the tax collection is it will disrupt
all the tax barriers between states and integrate country by single tax rate.

GST was first introduced by France in 1954 and now it is followed by 140 countries . Most of the
countries followed unified GST while some countries like Brazil , Canada follow a dual GST system
where tax imposed by central and state both. In India also dual system of GST is proposed including
CGST and SGST .

● According to Tan and Chin-Fat (2000) , Malaysian understanding regarding GST was still
low. Based on study conducted by Djawadi and Fahr (2013) pointed out that knowledge about
tax is important to increase the thrust of authorities and also the citizens.

● Tulu (2007) , indicate that other factors such as taxpayers’ attitude or morale found to be the
result of lack of awareness has found to have little impact on taxpayers’ attitude towards
taxation. A lot of individuals or taxpayers might want to comply in full with the tax systems,
but are unable to do so because they are not aware of and lack of understanding their full
obligations. Even they understand their obligations they may not know how to comply with it
because of there is no two way communications between the authorities and taxpayers. Dup
(2014) claimed that the ability of taxpayers to comply with the tax laws have a strong
relationship with tax awareness.

● Ehtisham Ahmed and Satya Poddar (2009) studied , “ Goods and service tax reforms and
intergovernmental consideration in India ” and found that GST introduction will provide
implies 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.

● According to Palil et al. (2010) , Public awareness towards GST is low can happen due to
introduction of GST especially in the early years such as lack of familiarity with the new
system. There are several factors that discouraged customers from accepting GST
implementation in Malaysia and the most important factor among all is a fear of price increase
and will cause the inflation.

● (Saira et al, 2010) , Based on the history of the implementation by the other countries around
the world, most of the countries received a positive impact in terms of their revenue, despite
the success of GST implementation the Malaysian citizens still feel uncertain with the GST,
(Saira et al, 2010). The findings from the study showed that the majority of Malaysians not
convinced with the GST system ,

● Dr. R. Vasanthagopal (2011) , Conducted a study on , “ GST in India : A big leap in the
Indirect Taxation System” and concluded that switching to seamless GST from current
complicated indirect tax system in India will be positive step in becoming Indian economy .
Success of GST will lead to its acceptance by more than 130 countries in world and a new
preferred form of Indirect Tax System in Asia also [2]

● According to Torgler (2011) , tax morale is important to taxpayer awareness. On the other
hand, research by Tekeli (2011) using multiple regression analysis show that tax morale has
insignificant relationship on tax awareness. A Tekeli (2011) conclusion is supported study by
regarding cause and consequences of tax morale.

● Research by Mustapha and Palil (2011) , stated that the influence of compliance behavior
towards individuals’ awareness has been proven in various researches. From the findings of
Razak and Adafula (2013); Santi (2012) they found that taxpayers’ awareness is significantly
associated with tax compliance and this is also supported by study Jatmiko (2006).

● Pall et al. (2013) , study by using multiple regression analysis, the researchers found out that
there are significant relationship between awareness and tax knowledge. When individuals
have knowledge related to the tax systems, people will be more willing to respect the tax
systems and improved individuals’ awareness. Further, Jatmiko (2006) also conclude that
awareness can be developed from the knowledge and the understanding. Palil et al. (2013) and
Jatmiko conclusions is also supported study by Tayib (1998)

35
identified that individuals’ awareness towards the tax system can increase when the
individuals has knowledge about the tax. This makes tax knowledge and tax awareness has
significant relationship and when the individuals or the taxpayers have knowledge about it and
it will make it easier for them to study and follow the tax rules.

● Djawadi and Fahr ( 2013) , This study is pointed out that knowledge about tax is important
to increase the thrust of authorities and citizens.

The researcher used structure equation modelling to examine the relationships between tax
awareness and tax knowledge and researcher found that tax knowledge has positive
relationship with tax awareness . Hence, taxpayers will be more aware about tax system when
they have knowledge and understanding towards the tax system.

● 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 implimentation of GST and it is beneficial for central government ,
state government and as well as for consumers in long run if its implimentation is backed by
strong it infrastructure.

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

● Boonyarat et al. (2014), the researcher used Structure Equation Modelling (SEM) to examine
the relationships between tax awareness and tax knowledge and the researcher found out that
tax knowledge has positive relationship with tax awareness. Hence, taxpayers will be more
aware about tax system when they have knowledge and understanding towards the tax system.

● Nishitha Guptha (2014) in her study stated that implementation of GST in the Indian
framework will lead to commercial benefits which were untouched by the VAT system and
would essentially lead to economic development.

36
● Jai Parkash ( 2014) . in his research study mentioned that the GST at the Central and the
State level are expected to give more relief to industry, trade, agriculture and consumers
through a more comprehensive and wider coverage of input tax set-off and service tax set off,
subsuming of several taxes in the GST and phasing out of CST.

● Venkadasalam (2014) , has analyzed the post effect of the goods and service tax (GST) on
the national growth on ASEAN States using Least Squares Dummy Variable Model (LSDVM)
in his research paper. He stated that seven of the ten ASEAN nations are already implementing
the GST. He also suggested that the household final consumption expenditure and general
government consumption expenditure are positively significantly related to the gross domestic
product as required and support the economic theories. But the effect of the post GST differs in
countries.

● International Journal of Scientist research and management (2014) , Girish Gargh


Assistant Professor from PGDAV College University of Delhi has published paper titled ”
Basic
Concepts and Features of good and service tax in India. In this paper he has given the outline
of GST and what does this tax system wants to achieve with threats and challenges
opportunities that the free market economy can bring.

● Mohammad Ali Roshidi (2016) , conduct a study on “ Awareness and perception of tax
payers towards Goods and Service Tax implementation. The study attempts to find out what
level of awareness and perception to GST taxpayers in Malaysia. This study only consist of
256 civil service servants of the secondary school teachers in the kaula kangsar, Perak. Data
collected using questionnaire. The result shows that moderate and majority of respondents give
a high negative perception to the GST. The eventually causes the majority of respondents did
not accept implementation of GST in Malaysia.

● International Journal of innovative studies in sociology and humanities (2016) , A study


on impact of GST after implementation Milan-deep Kour and his co-authors Assistant
Professor from Eternal University himachal Pradesh talks about the impact of GST and
implementation of it, its benefit and challenges. He also emphasizes that GST is going to
change things in current situation .

37
● Ahamd et al. (2016) , found that the level of awareness of the GST is still not reached a
satisfactory level. This is because the study involved only general questions that should be
known by the respondents as end users. This cause the respondents gave high negative
perception of the impact of implementation of GST. The respondents received less information
and promotion of the authorities. Most of the respondents were unclear whether the
goods and services are not subject to GST. Furthermore, due to the lack of information on
GST, the respondents had a high negative perception. Therefore, the government must
convince that GST will not have a lasting impact on the public as particularly convincing end
users that no increase in prices of goods and services

● Shakwipee ( 2017) , A study conduct on the inquring the level of awareness towards GST
among the small business owners in Rajasthan State, found that the main areas to be focused
include training errors and computer software availability.

● Vineet Chauhan (2017) , Conduct a study on “ Measuring Awareness about implementation


of GST.” A study survey of small business unit of Rajasthan State in India. The study seeks to
evaluate the awareness of the business owners about GST difficulties they face to encase of the
current awareness about it. 148 small business owners were analyses in order to identify the
awareness about GST from Rajasthan state and the kind and extent of relief provided and the
implementation of the provision under GST Law.

● Bar hate (2017) , found that people have no doubt whatsoever regarding the proposed
benefits of GST irrespective of their business type, legal status of business for the reason being they
feel irritated by the present system which appears to be cumbersome. Most respondents believe that
GST will bring monetary gains to their business and do not anticipate any significant boost in tax
compliance costs. Interestingly, respondents expect the spending on tax compliance to go down after
GST is implemented. The lack of information coupled with the apathy towards reforms may paralyze
the speedy implementation of this system especially in small towns where still not a single
orientation programs have been planned and executed till date by competent authorities.

● Poona m (2017) , The biggest problems in Indian tax system like Cascading effect & tax
evasion, distortion can be minimized by implementing GST. After amalgamation of local state and
central taxes competitiveness of industry, exporter and company will increase. The extra revenue
which can be generated from broaden tax base structure can be utilized for the growth of nation. In
economy tax polices play an important role because of their impact on efficiency and equity. Indirect
tax reforms have been as integral part of the liberalization process since new economic reforms.

● Times of India (26 July, 2017) , page no 1&17 it is stated that Sweet makers are confused
with fixing the tax for their products as the ingredients used in the sweets are taxed separately as raw
material and as finished goods the products its taxing is different ex. Plain burfi is 5% taxed but
chocolate burfi is fixed with 28%. Plain burfi mixed with other dry fruits is of 12%. This taxing
system makes the Sweet makers to get confused on how much GST to be fixed for which product.

● Times of India dated ( 27 July , 2017) , stated that the GST implication across different
places for the same product has wider differences which the consumers are unaware, resulting them
in surprise. Ex A Rasamalai sold in counter at a shop is taxed with 5% but if it is served in the hotel
it is taxed with 18% this has resulted in difference of consumers shopping to purchase the similar
products

39
Chapter 3

Research Methodology

40
Research Methodology

Introduction of 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 a problem. It is a science of studying how
research is to be carried out. Essentially, the procedures by which researchers go about their work of
describing , explaining and predicting phenomenon are called research methodology.

About my Research Problem :

The present research is exploratory in nature. Since GST is a new phenomenon in India, there are
hardly any studies in this area. Specially there is a huge gap of empirical and behavior studies on
GST in India. The study tries to find the significance of popular perception regarding GST.

Problem Statement :

The title of Project Report :----- A Study on Customers Perception towards Goods and Service
Tax in Himachal Pradesh , Dist t. Hamirpur

Manufacturer to wholesaler taxing on total bill for the product sold Ÿ Wholesaler to distributor
taxing on total bill for the product sold Ÿ Distributor to Retailer taxing on total bill for the product
sold Ÿ Retailer to Consumer itemized / total bill taxing for the product bought

Need of Study :

The Need of study have to fill the gap that has identified in the privious researchers. Under this study
We know that how much level of understanding the GST and Perception towards GSTas well as
traders , taxpayers concerned by GST.

Scope of the Study :

This study is conducted to find out the views of consumers in Hmirpur District and to know about
their expenditure pattern and the variation. The respondents selected are of mixed group which will
give wider difference in understanding. The scope of the study is limited only to the concerned area
of study which cannot be justified for any other place. 41
Objectives of Study :

➢ To Analysis customers perception regarding Goods and Service Tax (GST).

➢ To Asses Customers view regarding important of GST in Dist t Hamirpur.

➢ To find out the perception and their views on new implemented taxation system.

Research Design :

A good research design has characteristics viz, problem definition , time required for research project
and estimate of expenses to be incurred the function of research design is to ensure that the required
data are collected and they are collected accurately and economically. A research design is purely
and simply the framework for a study that guide the collection and analysis data. In this project the
two basic types of research design are used :

➢ 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 problem in hand. The major emphasis on
the discovery if ideas and insights . The exploratory study is particularly helpful in breaking broad
and vague problems in to smaller, more precise sub problem statements . Exploratory research is also
used to increase the familiarity with the problem under investigation.

➢ Descriptive Research :

It is the design that one simply describe something such as demographic characteristics of people .
The descriptive study is typically concerned with determining frequency with which something
occurs or how two 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 statically inference technique.

This is the research design of the study and then it comes to develop the research plan , which
means that what to do before going for the actual interpretation and it is discussed below .

42
➢ Developing a Research Plan :-

The present research is exploratory in nature. Since GST is a new phenomenon in India, there are
hardly any studies in this area. Specially there is a huge gap of empirical and behavior studies on
GST in India. The study tries to find the significance of popular perception regarding GST.

The data for this research project has been collected through self Administration . Due to time
limitation and other constraints direct personal interview study method is used . A structured
questionnaire was farmed as it consumes less time duration and is very important from the point of
view of information , easier to tabulate and interpret . More ever respondents prefer to give direct
answer.

Development of research plan has the following steps :

➢ Sample Design

➢ Sample Unit

➢ Sample Size

➢ Sample Technique.

Population :- Population means the whole universe of study in which the researcher does his study /
research and the population for my research is people of Dist t Hamirpur town from rural and urban
areas in Himachal Pradesh.

Universe of Study :- For the present study purpose about the Perception of new implemented system
of Goods and Service Tax.

Sample Design :

The complete study of all items in the population is known as a census inquiry. Sample is a group of
few items , which represents the population is or universe from where it is taken.

The Process of Selecting sample have been Multi Stratified in Nature. At the first Stage 2 blocks of
region / area have been selected with the help of convenient sampling. At the 2nd Stage 25
respondents have been selected from these blocks with the help of Simple Random Sampling . The
size of sample is 50 respondents. 43
Sampling Size :

The sample size of the study was 50. The responses were captured from respondents on a 5 point
Likert scale. The area of study was Hamirpur Region.

Sampling Method :

The sampling method was Judgment Sampling (only those respondents were chosen who had some
knowledge about GST)

Data Collection :

Data collection is the process to gather information about the relevant topic research , which is be
Data Collection usually takes place early in an improvement project , and is often formalized through
data collection plan which often contains the following activity :

➢ Pre collection activity on goals , target data , definitions and methods.

➢ Collection of Data.

➢ Presenting findings involving some form of sorting analysis.

For accomplishing the the objective of study, both Primary and Secondary data have been used.Data
Collection through the Primary Data as well as Secondary Data Sources.

Classification of Data :

The correct information is the key to success. Data information is of two types ; Primary Data and
Secondary Data. Primary data is information collected by researcher or person himself where is
secondary data is collected by other but utilized or used by researcher . Data can be classified under
two categories depending upon source utilized . These categories are :

➢ PRIMARY DATA

➢ SECONDARY DATA

44
1. Primary Data : The study is largely based on the primary data which has been collected through
the structured Questionnaire Method.

➢ Using Primary Primary Data Collection Tool :

Questionnaire:-

The data has been collected by administering a structured schedule of questions. The questions are
generally framed by 5 point Likert Scale and answers by respondents in form of Agree , Dis agree ,
Neutral, Strongly Agree and Strongly dis Agree.

The Questionnaire have been prepared for study the customer perception towards the Goods and
Service Tax in Himachal Pradesh , Distt. Hamirpur

For the present study purpose questionnaire method is used to collect the primary data . This
questionnaire is self administrated questionnaire and it is divided into two sections – Section A and
Section B .

➢ Section A consist the questions regarding Personal Information . For Eg. Name , Age ,
Gender , Qualification , Martial Status , Occupation .

➢ Section B Consist the questions which fulfill the research objectives and it contains 20
Questions.

Secondary Data :

This type of data has already been collected by someone else and has already passed through
statistical process. This type of data has been collected from the following resources :

➢ Sources of Collection of Secondary Data

➢ Internet

➢ Books

➢ Journal 45.
➢ Thesis.

➢ News Papers

➢ Govt Gazettes.

➢ Magazines etc.

For this study Primary Data and Secondary data both has been used for research topic.

RESEARCH INSTRUMENTS :

➢ QUESTIONNAIRE

A questionnaire is a research instrument consisting of a series of questions and other prompts for the
purpose of gathering information from respondents . Although they are often designed for Statistical
Analysis of the responses.

RESEARCH PLAN :

Data Source Primary Data

Research Approach Survey

Research Instrument Questionnaire

Method of Contact Personal

Sample Size 50 Respondents

46
Tools of Analysis :

➢ Mathematical Tools :

( a. ) Percentage Method .

➢ Statistical Tools :

( a .) Arithmetic Mean

➢ Mathematical Tools :--

In the present research work , mathematical tools are used . In this method are including the
percentage and simple average has been used to analysis and interpretation or collection of data .

A Percentage frequency distribution is a display of data that specifies the percentage of observations
that exist for each data points. It is particularly useful method of expressing the relative frequency of
survey responses and other data . The mathematical method are using followings tools are given as
below :

➢ ( 1 ) Percentage Method :---

It was used to draw specific inferences from the collected data that fulfill the objective of the
study .

The formula used was :

P = Q/ R * 100

P = Reading in Percentage

Q= Number of respondents falling in specific Category to be measured

R = Total Number of respondents or it is the population.

47
➢ Statistical Tools :

Statistics is an imposing form of mathematics . It is the aggregate of facts affected to a marked extent
by multiplicity of causes , numerically expressed , enumerated or estimated according to a
reasonable standard of accuracy , collected in systematic manner for a predetermined purpose and
place in relation to each other. The followings tools are used in this method are given briefly below
as :

Arithmetic Mean :--

This tool has been used to find out the average of the opinion of the respective. It is most widely used
method of average and can be found out by applying the following formula :

X = Wx
W

Where
Xw = Weighted Arithmetic Mean

X = Variable Values

W = Weighted Attached to variable values .

Limitations of Study :

This study too has its limitations that limits the applicability and validity of study . The limitations
are below

1. The sample size was small and cannot be applied to the entire population .

2. GST is new launched tax system so some complications are faced by the peoples.

48
Chapter 4

Data Analysis & Interpretation

49
DATA ANALYSIS & INTERPRETATION

Data Analysis

The data collected various respondents have to analysis for the drawing conclusion . So in this
chapter efforts have been made to analysis and interpret the collective data towards perception of
customers of Dist Hamirpur ( HP) on “ Goods ans Service Tax '' through questionnaire.

First of all the collected data have been presented in tabular form and there after it is analyzed with
the help of percentage and Pie Charts .

A brief description of analysis and interpretation given below :

50
In Table No. 4.1 An attempt has been made of classify the respondents on the basis of Age factor
.

Table No. 4.1

Classification of respondents on the basis of Age

Sr. No. Age Group No. of Respondents Percentage (%)


1 Below 25 5 10
2 25- 40 16 32
3 Above 40 29 58
Total 50 100
Source : Data Collected from Primary Data through Questionnaire Method.

Classification of respondents on the basis of Age

10%

+
Below 25 25- 40
32%
58% Above 40

Figure 4.1

Interpretation :

From the above table and figure it is clear that majority of respondents that is 58% are above 40
years Where as 32 % belongs to 25 – 40 years are and rest of 10 % are below 25 years. Thus it can
be concluded that there are majority of the respondents are above 40 years.

51
In Table 4.2 An attempt has been made of classify the respondents on the basis of qualification
factor. The qualification have been divided in to Three Categories – Graduation , Post Graduation
and Any other qualification . The description of this as below :

Table No. 4.2

Classification of respondents on the basis of Qualification

Sr no. Qualification No. of Respondents Percentage (%)


1 Graduation 19 38.00%
2 Post Graduation 11 22
3 Any others Metric, Secondary 20 40
and PHD also )
Total 50 100
Sources : Data Collected from Primary Data through Questionnaire Method .

Classification of respondents on the basis of Educational Background

40% 38%
Graduation
Post Graduation
Any other

22%

Figure 4.2

Interpretation :

From the above table and figure it is depicted that majority of respondents ie 40% are related to high
and low background that means other areas, where as 38% are Graduation and 22 % are Post
Graduate. Thus it can be concluded that majority of the respondents are Concerned Graduation and
other Qualifications.

52
In Table 4.3 An attempt has been made of classify the respondents on the basis of Married and Un
Married Status .

Table 4.3

Classification of respondents on the basis of Status

Sr No. Status No. of Respondents Percentage (%)


1 Married 43 86.00%
2 Un Married 7 14.00%
Total 50 100.00%
Source : Data collected from Primary Data through Questionnaire Method

Classification Of Respondents on the basis of Status

Fig.4.3

Interpretation :

From the above table and figure it is clear that majority of respondents are Married i.e. 86 % and rest
of the 14% are Un married. Therefore , According to this observation maximum respondents are
married.

53
Table 4.4 Classify the respondents on the basis of Gender . The Gender are Male and Female .The
description of this as below :

Table No. 4.4

Classification of respondents on the basis of Gender

Sr No. Gender No. of Respondents Percentage (%)


1 Male 45 90.00%
2 Female 5 10.00%
Total 50 100.00%
Sources : Data collected from Primary Sources through Questionnaire Method

Classification of Respondents on the Basis of Gender

Fig 4.4

Interpretation :

From the above table and figures it is show that majority of respondents are Males 90% and Females
are 10% . Thus it can be concluded Males are show in high Interest in business activities.

54
Table No. 4.5 An attempt has been made of classify the respondents on the basis of their Occupation
or Category Basis . The description of this as below :

Table 4.5

Classification of respondents on the basis of Occupation

Sr No. Occupation No. of Respondents Percentage (%)


1 Business Mans 30 60.00%
2 Service Mans 8 16.00%
3 Professionals 5 10.00%
4 Any Customers 7 14.00%
Total 50 100.00%
Sources : Data collection from Primary Sources through the Questionnaire Methods

Classification of Respondents on the Basis of Occupation

Figure 4.5

Interpretation :

From the above table and figure it is depicted that maximum respondents are businessman and as
well as customers are 60 and 14 % respectively. Where as Service man and Professionals are 16 and
10 % Respectively. That it can be concluded that majority of the respondents are doing own
Business. 55
In Table No. 4.6 An attempt has been made of classify the respondents perception towards the
Goods and Service Tax . The Perception level of the respondents has been divided in to Five
categories – Strongly Agree, Agree, Neutral , Dis Agree, Strongly Dis Agree. The description of this
as below

Table No.4.6

Classification of respondents on the basis of their perception regarding “GST is a very Good Tax
reforms for india '' :

Sr No. Response No. of Respondents Percentage (%)


1 Strongly Agree 28 56
2 Agree 15 30
3 Neutral 6 12
4 Dis Agree 1 2
5 Strongly Dis Agree - -
Total 50 100
Source Data collected from primary sources through questionnaire method

Figure 4.6

Interpretation :

Above chart depicted that majority of the respondents satisfied with the statement this taxation
reform in india is very good 56% respondents are strongly agree with this statement and 30% are
agree and also 12 % are neutral . Hence it is concluded that majority of the respondents i.e. 56 % are
strongly agreed and 30% agreed with this statements. 56
Table No. 4.7 An attempt has been made of classify the respondents on the basis of their response
regarding the statement “ GST has increased the various legal formalities . '' The response are
divided into five categories – Strongly Agree, Agree, Neutral , Dis agree and Strongly Dis agreed .
The description of this as below :

Table No. 4.7

Classification of respondents on the basis of their perception regarding the GST implementation.

Sr No. Response No. of Respondents Percentage(%)


1 Strongly Agree 21 42
2 Agree 21 42
3 Neutral 7 14
4 Dis Agree 1 2
5 Strongly Disagree 0 0
Total 50 100
Sources Data collected from primary sources through questionnaire method.

Figure 4.7

Interpretation :

Above Chart depicted that majority of the respondents satisfied with the statement after
implementation of GST has increased various types of formalities . 42% respondents are strongly
agree and also 42 % are Agreed and 14% are also neutral .So it is concluded that majority of the
respondents satisfied this statement. 57
Table No. 4.8 An attempt has been made classify the respondents on the basis of their response
regarding statement “ GST has increased the Tax burden on Common Man''

Table No. 4.8

Classification of respondents on the basis of response of the respondents regarding the statement
GST has increased tax burden on common man.

Sr No. Response No. of Respondents Percentage(%)


1 Strongly Agree 8 16
2 Agree 16 32
3 Neutral 15 30
4 Dis Agree 11 22
5 Strongly Dis agree 0 0
Total 50 100
Sources Data collected by Primary sources through the questionnaire method .

Figure No. 4.8

Interpretation :

According to above table , it is shows that majority of the respondents i.e. 32% are agree with this
statement and 30% are neutral and also 22% are Dis Agree for this statement . 16% are strongly
Agreed. So it is concluded that majority and cum majority peoples are said that GST has increased
the burden of Common man.

58
Table No. 4.9 An attempt has been made of classify the respondents on the basis of their response
towards for India is really ready for GST implementation .

Table No. 4.9

Classification of respondents on the basis of response of respondents regarding India is really ready
for GST implementation

Sr No. Response No. of Respondents Percentage(%)


1 Strongly Agree 7 14
2 Agree 19 38
3 Neutral 14 28
4 Dis agree 8 16
5 Strongly Dis agree 2 4
Total 50 100
Sources Data collected from Primary sources through questionnaire method .

Figure No. 4.9

Interpretation :

From the above table and figures it is concluded that 38% respondents are agree and 14% are
strongly agreed to India is ready for GST implementation and 28% also neutral to this statement but
even 16 and 4 % are Dis agreed also . So it is fair conclusion are majority of the respondents are say
India is ready GST implementation. Hence , results are Positive perception. 59
In Table No. 4.10 An attempt has been made of classify the respondents on the basis of their
statement GST has increased the Tax burden on Businessman. The results are represents on Five
Categories are given Below :

Table No. 4.10

Sr No. Response No. of Respondents Percentage (%)


1 Strongly Agree 12 24
2 Agree 19 38
3 Neutral 13 26
4 Dis agree 6 12
5 Strongly Dis agree 0 0
Total 50 100
Sources Data collected from Primary Sources through questionnaire method .

Figure 4.10

Interpretation :

From the above data table and figure show that maximum respondents are represents that GST has
increased the tax burden on businessman so 38% respondents are Agree and 24% are strongly agree
this statement and also 26 % are neutral but even 12% are Dis Agreed for this statement. Hence , it
is concluded that maximum results are positive nature for this statement .

60
In Table No. 4.11 An attempt has been made of classify the respondents on the basis of their
response regarding the statement Govt. has imposed GST on people without any preparation . The
given data are classified following categories are given below :

Table No. 4.11

Sr. No. Response No. of Respondents Percentage (%)


1 Strongly Agree 6 12
2 Agree 12 24
3 Neutral 22 44
4 Dis Agree 8 16
5 Strongly Dis Agree 2 4
Total 50 100
Sources Data collected from Primary sources through questionnaire method .

Figure No. 4.11

Interpretation :

According to above table , it is shows that majority of respondents are not high satisfied but
maximum respondents are neutral or not sure i.e. 44% and remaining are 24% only Agreed and 12 %
are dis agreed so it is concluded that peoples perception regarding this statement may be positive
and some negative . But above results are some Positive .

61
In Table No. 4.12 An attempt has been made of classify the respondents on the basis of their
response regarding the statement GST is very difficult to understand . The data are given following
Statement are as below :

Table No. 4.12

Sr No. Response No. of Respondents Percentage (%)


1 Strongly Agree 6 12
2 Agree 18 36
3 Neutral 15 30
4 Dis agree 10 20
5 Strongly Dis agree 1 2
50 100
Sources Data collected by Primary Sources through questionnaire method .

Figure No.4.12

Interpretation :

Above table and figure depict that majority of the respondents i.e. 36% are Agree and 30 % are
neutral and also !2% are strongly agree with this statement are GST is very difficult to understand .
Another 20 and 2% are dis agreed with this statement . Hence , it is concluded that maximum
respondents are Agree and neutral stage so result are may be positive . Then it show that in initial
stage is very difficult to understand GST. 62
In Table No. 4.13 An attempt has been made of classify the respondents on the basis of their
perception regarding this statement are GST will increase the inflation ( prices) in the country . The
following statement data are given below as :

Table No. 4.13

Sr No. Response No. of Respondents Percentage(%)


1 Strongly Agree 9 18
2 Agree 6 12
3 Neutral 17 34
4 Dis agree 14 28
5 Strongly Dis agreed 4 8
Total 50 100
Sources Data collected from Primary sources through questionnaire method .

Figure No. 4.13

Interpretation :

From the above table and figure represents that maximum respondents are not sure the inflation
affect of economy or country on GST . Only 18% and 12% peoples are strongly Agree this statement
rest of 34% are neutral and 28 or 8% are Dis Agree this statement.are GST will increase the inflation
of country . So finally it is concluded that The results of this statement is may or may not be
Positive ,but maximum response are Neutral . 63
In Table No. 4.14 An attempt has been made of classify the respondents on the basis of their
response regarding the statement GST is beneficial in Long Term . The description of following data
are given below as :

Table No. 4.14

Classification of respondents on the basis of their opinion regarding the GST beneficial in Long
Term.

Sr No. Response No. of Respondents Percentage (%)


1 Strongly Agree 8 16
2 Agree 25 50
3 Neutral 14 28
4 Dis Agree 3 6
5 Strongly Dis agree 0 0
Total 50 100
Sources : Data collected from Primary sources by questionnaire method.

Figure No.4.14

Interpretation :

From the above figure and table it is concluded that 50% respondents responds GST is beneficial in
Long Term. More than 50 and 16% are agree and Strongly agree with this statement and 28% are
neutral . So Hence, majority of the respondents are provide positive results in this statement. 64
In Table No. 4.15 An attempt has been made of classify the respondents on the basis of their
response regarding this statement GST will increase the Tax Collection of Government . The
following information are collected from this statement are given below :

Table No. 4.15

Sr No. Response No. of Respondents Percentage (%)


1 Strongly Agree 22 44
2 Agree 17 34
3 Neutral 8 16
4 Dis agree 3 6
5 Strongly Dis agree 0 0
50 100
Sources Data Collected from primary sources by questionnaire method .

Figure No. 4.15

Interpretation :

According to above table , it is shows that majority of the respondents i.e. 44 % are strongly Agree
and 34% are Agreed with this statement are GST will increase the Tax collection of GOVT. and 16%
are neutral or 6% are Disagreed also . Hence it is concluded that majority of the respondents are
more than over all 78% are agreed and results are so positive statement.

65
In Table No. 4.16 An attempt has been made of classify the respondents on the basis of their
perception regarding this statement GST is affecting small business very badly . The following
responses are given below as :

Table No. 4.16

Sr No. Response No. of Respondents Percentage (%)


1 Strongly Agree 9 18
2 Agree 10 20
3 Neutral 25 50
4 Dis agree 6 12
5 Strongly Dis agree 0 0
Total 50 100
Sources Data collected from Primary Sources through questionnaire method.

Figure No. 4.16

Interpretation :

According to above table , it shows that majority of the respondents are i.e. 50% are neutral and 20%
are agreed and also 18% are strongly agree for this statement GST affecting small business very
badly . This data represents the GST has normal affect of Small business firms and it affect the
medium business is more than smalls. So it is concluded that majority of the respondents i.e. 50% are
neutral this Statement and results are may be positive nature .

66
In Table No. 4.17 An attempt has been made of classify the respondents on the basis of their
perception regarding statement are GST is impacts Customer Purchasing Power in Effectively . The
description are given as below :

Table No. 4.17

Classification of respondents response on the basis of their perception regarding GST is impact
Customer Purchasing Power Effectively.

Sr No. Response No. of Respondents Percentage(%)


1 Strongly Agree 8 16
2 Agree 12 24
3 Neutral 11 22
4 Dis Agree 19 38
5 Strongly Dis Agree 0 0
Total 50 100
Sources Data collected from Primary Sources by questionnaire method .

Figure No. 4.17

Interpretation :

From the Above data depicted that majority of the respondents are not agree for this statement
Majority of the respondents i.e. 38% are Dis agreed . And 22% are Neutral for this statement .But
Also Further 24% respondents are Agree for this statement, So maximum result are against this
statement . And may be 24% are agree to GST impact the customer purchasing power . Hence ,
results are some may be Negative or Positive . 67
In Table No. 4.18 An Attempt has been made of classify the respondents on the basis of their
perception regarding statement are GST affects the Indian capital stock market operations . The
following description for these statement are show as below :

Table No. 4.18

Classification of respondents on the basis of their perception regarding the GST are affects the Indian
Capital Stock Market Operations :

Sr. No. Response No. of Respondents Percentage (%)


1 Strongly Agree 3 6
2 Agree 4 8
3 Neutral 13 26
4 Dis agree 25 50
5 Strongly Dis agree 5 10
Total 50 100
Sources Data collected from Primary Sources through questionnaire method .

Figure No. 4.18

Interpretation :

From the above table , it shows that majority of the respondents ie. 50% are Dis agree with the
statement are GST affects the Indian capital stock market operations and 26% respondents are
neutral for this statement. So, after all 6 and 8% are strongly agree also. Hence it is concluded that
majority of the respondents more than 50% are Dis Agreed and results are this statement are pure
negative . And some little bit ie. 26% are positive but perception of respondents regarding this
statement are negative this statement . 68
In Table No. 4.19 An attempt has been made of classify the respondents on the basis of their response
regarding the statement .GST will cause an increase in the cost of living . The following statement
description given as below :

Table No. 4.19

Classification of respondents on the basis of response of the respondents regather statement GST will
cause an increase in the cost of living .

Sr No. Response No. of Respondents Percentage (%)


1 Strongly Agree 7 14
2 Agree 10 20
3 Neutral 17 34
4 Dis Agree 14 28
5 Strongly Dis Agree 2 4
Total 50 100
Sources Data collected from primary sources through the questionnaire method.

Figure No. 4.19


Interpretation :----

According to above table , it is shows that majority of the respondents are Neutral i.e. 34% and 28%
are Dis Agreed from the statement of GST will cause an Increase in the cost of living . Results are
not bad because respondents are neutral and some 14 and 20% are agreed also this statement . So it is
concluded that maximum result are satisfactory for this statement . Further respondents are think
little bit changes are their affected cost of living GST positively. 69
In Table No. 4.20 An attempt has been made of classify the respondents on the basis of their
response regarding the statement GST is a Good method to replace the sales and services tax. The
description of this as below :

Table No. 4.20

Sr No. Response No. of Respondents Percentage (%)


1 Strongly Agree 13 26
2 Agree 14 28
3 Neutral 12 24
4 Dis Agree 9 18
5 Strongly Dis Agree 2 4
Total 50 100
Sources : Data collected from primary sources through questionnaire method .

Figure No. 4.20

Interpretation :

Above Chart depicted that majority of the respondents satisfied with the statement of GST is a good
method to replace the sales and service tax . 26% respondents are strongly agree and 28% are agreed
with this statement . Further 24% are neutral and some respondents are Dis agree i.e. 18% are this
statement . Hence , it is concluded that majority of the respondents are show positive perception of
this statement . And maximum results are in favour of this statement.

70
Table No. 4.21 An attempt has been made of classify the respondents on the basis of their response
towards the Implementation of Goods and Services Tax will result in the products or services more
expensive .

Table No. 4.21

Classification of respondents on the basis of response of the respondents regarding the


Implementation of GST will result in the products or services to be more expensive .

Sr. No. Response No. of Respondents Percentage (%)


1 Strongly Agree 7 14
2 Agree 8 16
3 Neutral 20 40
4 Dis Agree 13 26
5 Strongly Dis Agree 2 4
Total 50 100
Sources : Data collected from primary sources through questionnaire method.

Figure No. 4.21

Interpretation :

From above table and figure depict that majority of the respondents i.e. 40% are neutral and 26% are
Dis agree with this statement. Further also 14% and 18% are strongly Agreed in respectively . Hence
it is concluded that the maximum respondents are 40% in neutral and result some may positive or
negative. 71
In Table No. 4.22 An Attempt has been made of classify the respondents on the basis of their
response towards the statement The newly implemented Goods and Service tax confused the
customers . The following description are given below :

Table No. 4.22

Classification of respondents on the basis of response of the respondents regarding the Newly
implemented GST confused Customers

Sr. No. Response No. of Respondents Percentage (%)


1 Strongly Agree 9 18
2 Agree 9 18
3 Neutral 13 26
4 Dis Agree 17 34
5 Strongly Dis Agree 2 4
Total; 50 100
Sources Data collected from Primary Data through questionnaire method.

Figure No. 4.22

Interpretation :

Above Figure depicted that 18% respondents responds Strongly Agree and Agreed regarding this
statement GST confused customers . 26% are neutral regarding this and maximum respondents
respond 34% and another 4% are Dis agreed with this statement . Hence it is concluded that
customers has no confusion for GST implementation and overall maximum result for this analysis
may negative. And less than positive also . 72
In Table 4.23 An attempt has been made of classify the respondents on the basis of their response
towards the statement The GST system is a way for the government to collect revenue to manage an
economy . The description of the followings statements are given as below :

Table No.4.23

Sr No. Response No. of Respondents Percentage (%)


1 Strongly Agree 10 20
2 Agree 19 38
3 Neutral 11 22
4 Dis Agree 9 18
5 Strongly Dis Agree 1 2
Total 50 100
Sources Data Collection from Primary sources through questionnaire method.

Figure No. 4.23

Interpretation

From the above table and Figure represents that 38% respondents are strongly Agree and 20%
respondents are Agree with the statement The GST system is away for the govt. to collect revenue to
manage an economy .Further 22%^ respondents are neutral and also 18% are Dis Agree with this
statement. Hence it is concluded that the results are this statement are Positive and show the
perception are positive as well as good . 73
In Table No. 4.24 An attempt has been made of classify the respondents on the basis of their
response towards the The sentence and wording in the GST guide is Lengthy and not user friendly .

Table No. 4.24

Classification of respondents on the basis of their response regarding the Statement are The
sentences and wording in GST guide is lengthy and not user friendly .

Sr. No. Response No. of Respondents Percentage (%)


1 Strongly Agree 6 12
2 Agree 7 14
3 Neutral 22 44
4 Dis Agree 15 30
5 Strongly Dis Agree 0 0
Total 50 100
Sources Data collection from Primary Sources through questionnaire method .

Figure No. 4.24

Interpretation :

According to above table shows that 44% respondents are respond to Neutral Stage and 12% and
14% are strongly agree and Agreed respectively . But the 30% respondents are respond in Dis
Agree or against in this statement are The sentences and wording are GST guide is lengthy and not
user friendly . Hence , it is concluded that the results are these statement are maximum positive only
. 74
In Table No. 4.25 An attempt has been made of classify the respondents on the basis of their
response towards the statement are GST encourage individuals to save part of their Income . The
following description are given as below :

Table No. 4.25

Classification of respondents on the basis of response of respondents regarding the statement GST
encourage individuals to save part of their income .

Sr No. Response No. of Respondents Percentage (%)


1 Strongly Agree 0 0
2 Agree 5 10
3 Neutral 14 28
4 Dis Agree 24 48
5 Strongly Dis Agree 7 14
Total 50 100
Sources Data collection from Primary Sources through questionnaire method .

Figure No. 4.25

Interpretation :

Above figure shows that majority of the responds i.e 48% respondents Dis Agreed with this
Statement and 14% are Strongly Dis Agree with the statement of GST encourage individuals to save
part of their income . And 28 % respondents are neutral and 10% also Agree with this statement .
Hence it is concluded that the maximum respondents are respond in Dis Agreed and result are show
in very low or negative . 75
Chapter 5

Summary

Findings

Suggestion

Conclusion

References

76
Chapter 5

SUMMARY , FINDINGS & CONCLUSION

Summary of the study :

This project report helped me to get deeply understanding the “ Customers Perception towards the
Goods and Service Tax ( GST) of Hamirpur Dist t at Himachal Pradesh .''

The main focus of this study was to asses the perception of customers regarding the Goods and
Service tax in Hamirpur Area Himachal Pradesh. The study is structured of five chapters namely ,
introduction , literature review, research methodology , Data analysis and interpretation and last one
is summary and conclusion .

First chapter are covers the introduction of the taxation system , background of GST in outside of
India and with in India . Concept of GST , Types of GST , Structure of GST , Impact of GST in
different Sectors and How To file the GST return , GST slab and Benefits of GST.

The Second Chapter i.e. Literature Review it includes more than 20 Studies of different researchers
are analysis carefully .

In the Third Chapter i.e. research methodology highlights the problem statement , scope of study ,
need of study, objective of study , research design , universe of study , sampling design , sample
technique and sample size and data collection methods and limitations of study.

The fourth chapter , i.e. Data analysis and interpretation, efforts have been made to analysis the data
with the help of mathematical tools are used percentage method . Data are show in Tables form
which includes response of respondents , total number of respondents and percentage share of
respondents towards the various statements .Interpretation results are shown in Positive and Negative
form .

77
Findings Of The Study :

After Analysis and Interpretation of the data these are followings findings were emerged :

 Most of the respondents are Male .

 Majority of the respondents i.e. 58 % comes under the age group above 40 years and 32%^
are comes under 25- 40 years .

 More than 60% respondents are related to Businessman category.

 The most of respondents perception are very positive towards the GST and they are aware of
GST through the mass media .

 56 % respondents are that opinion GST is very good tax reform for India and it is the turning
point of the taxation system .

 Most of the customers perception that GST is very beneficial in Long Term for economy of
the country and also effect of GDP.

 Maximum 50% respondents are respond GST has increased the various Legal formalities.

 Majority of the peoples have perception that they still need more clarity on GST and opened
that they discuss about GST with others .

 Most of the customers opinion that GST is fair tax . And also GST is predominantly
compliance tax.

78
Suggestions

✔ The customers suggested that there should be a smooth , transparent and simple transition
provisions which is easily understandable.

✔ Special focus on awareness and training of all officers , professionals and assesses should be
given on GST.

✔ Since the public are very clear about GST , any disputes on GST introduction should be
protectively addressed by way of speedy redress .

✔ The people are not well informed on the implementation 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 implementations of GST.

✔ Gradual stages may be employed for the implementation like the agricultural sector, then
industrial and then the service sector.

✔ The relevant authorities especially the customers department must work closely with other
departments like information , Inland Revenue and other enforcement authority ensure good
implementation .

✔ Lastly, the government must ensure a good management of the income collected from the
GST.

CONCLUSION :

This study highlighted the overall overview of GST in Hamirpur Area of HP. The Government to put
in more effort to ensure that Consumers have a clear understanding and develop a positive perception
towards GST , leading to its acceptance . Good understanding among customers is important as it
can generate a positive perception towards the taxation policy . The Himachal Pradesh Custom
Department could initiate and promote an extensive publicity program mes which could help to
create awareness and generate positive perception among customers in understanding the rationale
and importance of GST in India. 79
REFERENCES

1. HTTP ://Wittgenstein

2. www.gstindia.com

3. comtax.up.nic.in

4. https://en.wikipedia.org

5. www.gstn.org

6. www.cbec.gov.in

7. www.financialexpresss.com

8. www.gstcounsil.gov.in

9. Sharma Publication , Topic … “ Concept of Tax , Structure of Tax, Indian Taxation System
'' Indirect Tax Text Book B com Ivth Semester First Edition 2014.

10. Kothari C.R. 2nd Edition (2004) Research Methodology … Topic “ Concept & Meaning Of
Research , Sampling , Methods and Techniques Of Data collection and Tools '' B com , BBA and
MBA and M.com Textbook.

11. Pinki , Supriya Kamna, Richa verma “ Goods and Service Tax”--Panacea For Indirect Tax
System in india ,” Tactful Management Research Journal”, Vol12, issue 10 July 2014

12. Agogo Mawulli “ Goods and Service Tax --- An appraisal Paper presented at the PNG
Taxation Research and Review Symposium. Holiday inn port meoresby, Pg No.29-30 , April 2014

13. Kumar Nitin (2014) “ GST in india : A way forward '' Global Journal of Multi disciplinary
Studies, Vol 3 Issue 6 , May 2014.

14. Gupta Nishita , Goods and Service Tax : Its implementations on Indian economy volume 5
Issue 3 (year 2014 – Pg No. 126—133 .

15. Fabian and Erik Hoelzl , Price , Perception and confirmation bias in the context of a VAT
increase, Journal of Economic Psychology 32 (1) volume 2 Pg No. 131-- 141 in 20

80
QUESTIONNAIRE

A STUDY ON THE CUSTOMERS PERCEPTION TOWARDS GOODS & SERVICE

TAX (GST) OF HAMIRPUR DISTT . HIMACHAL PRADESH

Name : E -mail Id

Contact No.

SECTION A

Please ' Tick ' your choice -----

1. Gender (a) Male (b) Female

2. Status (a) Married ( b) Un Married

3. Age Group :

(a) Below 25

( b) 25 – 40

(c) Above 40

4. Occupation

(a) Businessman

(b) Serviceman

( c) Professional

( d) Any other

5. Qualification :

(a) Graduation

( b) Post Graduation

( c) Any other Qualification 81


SECTION B

Kindly Tick your perception regarding the Goods and Service Tax .

Sr. Statements Strongly Agree Neutral Dis Agree Strongly


No. Agree Dis Agree
1 GST is a very good tax reforms for
India.

2 GST has increased the various legal


formalities.

3 GST has increased the tax burden on


common man.

4 India is really ready for GST


implementation.

5 GST has increased the tax burden on


businessman.

6 Govt has imposed GST on people


without any preparation.

7 GST is very difficult to understand .

8 GST will increased the inflation in the


country.

9 GST is beneficial in Long Term.

10 GST will increase the Tax collection of


GOVT.

11 GST will affecting small business very


badly.

12 GST is impacts the customer


purchasing power in effectively.

13 GST affects the Indian capital stock


market operations.
Sr. Statements Strongly Agree Neutral Dis Agree Strongly
No. Agree Dis Agree
14 GST will cause an increase in the cost
of living.

15 GST is a good method to replace the


sales and service tax.

16 The implementation of GST will result


in the products and services to be more
expensive.

17 The newly Implemented GST


confused the customers.

18 The Goods and Service Tax system is a


way for the government to collect
revenue to manage an economy.

19 The Sentences and wording in the


Goods and Service Tax guide is
lengthy and not user friendly.

20 Goods and Service Tax (GST)


encourage individuals to save part of
their Income.

Sources : Primary Data Collection.

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