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Project Report on GST 2018

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This Project report ON GST in Himachal Pradesh at Hamirpur Distt.

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Project Report on GST 2018

  1. 1. 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)
  2. 2. 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
  3. 3. 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
  4. 4. 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
  5. 5. 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
  6. 6. 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
  7. 7. 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, Features . 2 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 in India 9 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 GST . 32
  8. 8. 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 Respondents Informations. 50 – 55 43 Section B Data Collected from GST Perception 56-- 75 44 C...0 5 Summary 76 45 Findings 77 46 Suggestions 78 47 Conclusion and References 79 48 Questionnaire. 81 – 83 IX
  9. 9. 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 are follows 54 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
  10. 10. 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 to be more expensive. 70 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 collect revenue to manage an economy. 72 4.25 Sentences and wording of GST guide is very lengthy and not user friendly. 73 4.26 Classification of respondents on their response regarding statement GST encourage individuals to save part of their income . 74 Xi
  11. 11. 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. T K 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
  12. 12. Chapter 1 Introduction 1.
  13. 13. 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 1st 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.)
  14. 14. 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)
  15. 15. “ 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.)
  16. 16. 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.
  17. 17. 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
  18. 18. 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
  19. 19. 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 1st 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
  20. 20. 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 1st 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
  21. 21. 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
  22. 22. 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
  23. 23. 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 ( 122nd ) 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
  24. 24. 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 :
  25. 25. 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
  26. 26. 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
  27. 27. 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
  28. 28. Models of Goods and Service Tax : `19
  29. 29. 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.
  30. 30. (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
  31. 31. 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
  32. 32. 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
  33. 33. 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
  34. 34. 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
  35. 35. 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
  36. 36. 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
  37. 37. 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
  38. 38. GST SLAB and Structure Of GST Rates :
  39. 39. 32
  40. 40. Chapter 2 Literature Review 33
  41. 41. 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
  42. 42. 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
  43. 43. 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
  44. 44. ● 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
  45. 45. ● 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
  46. 46. 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
  47. 47. Chapter 3 Research Methodology 40
  48. 48. 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
  49. 49. 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
  50. 50. ➢ 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
  51. 51. 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
  52. 52. 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.
  53. 53. ➢ 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
  54. 54. 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
  55. 55. ➢ 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
  56. 56. Chapter 4 Data Analysis & Interpretation 49
  57. 57. DATAANALYSIS & 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
  58. 58. 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 + 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 10% 32% 58% Below 25 25- 40 Above 40
  59. 59. 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 and PHD also ) 20 40 Total 50 100 Sources : Data Collected from Primary Data through Questionnaire Method . Classification of respondents on the basis of Educational Background 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 38% 22% 40% Graduation Post Graduation Any other
  60. 60. 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
  61. 61. 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
  62. 62. 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
  63. 63. 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
  64. 64. 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
  65. 65. 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
  66. 66. 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
  67. 67. 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
  68. 68. 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
  69. 69. 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
  70. 70. 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
  71. 71. 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
  72. 72. 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
  73. 73. 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
  74. 74. 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
  75. 75. 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
  76. 76. 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
  77. 77. 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
  78. 78. 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
  79. 79. 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
  80. 80. 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
  81. 81. 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
  82. 82. 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
  83. 83. Chapter 5 Summary Findings Suggestion Conclusion References 76
  84. 84. 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
  85. 85. 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
  86. 86. 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
  87. 87. 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
  88. 88. 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

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