GST SCENARIO: THE RESPONSE MATRIX OF STAKE HOLDERS IN

THE TWIN CITY

NAME- NIRUPAMA SAHOO

AREA OF RESEARCH- TAXATION

REGD. NO- RU/MPHIL/2018/501362

INTRODUCTION

GST also known as the goods and service tax is defined as the giant indirect tax structure
designed to support and enhances the economic growth of a country. More than 150 countries
have implemented GST. However the idea of GST in India was mooted by Vajpayee
government in 2000. Initially it was proposed that GST would be introduced from 1stApril,
2010. The Empowered Committee of State Finance Ministers (EC) which had formulated the
design of State VAT was requested to come up with a road map and structure for the GST.
Joint Working Groups of officials having representatives of the States as well as the Centre
were set up to examine Various aspects of the GST and draw up reports specifically on
exemptions and thresholds, taxation of services and taxation of inter-State supplies. Based on
discussions within the EC and between the EC and the Central Government, the EC released
its First Discussion Paper (FDP) on GST in November, 2009. This spelled out the features of
the proposed GST and has formed the basis for discussion between the Centre and the States.

The introduction of Goods and Services Tax on1st of July 2017 was a very significant step in
the field of indirect tax reforms in India. By amalgamating a large number of Central and
State taxes into a single tax, the aim was to mitigate cascading or double taxation in a major
way and pave the way for a common national market. Introduction of GST would also make
Indian products competitive in the domestic and international markets. From the consumer
point of view, the biggest advantage would be in terms of a reduction in the overall tax
burden on goods, around 25%-30%. GST have a positive impact on economic growth of
India because of its transparent, self-policing character, and easy administration.

STATEMENT OF THE PROBLEM

Many advisers and intellectuals try to simplify the system of GST which would lay a positive
effect and also it will be beneficial for different levels of people in our country. Inspite of all
benefits, it has certain problems as people of various kinds have different views and opinion
about the rules, regulations and procedures of GST. It is an issue that some people are still
unaware or confuse with the tax system of GST and ignore to pay tax. So it is necessary to
know whether the stakeholders are aware of the govt’s plan and do they have knowledge on
this issue. In my sense there is certain problems on GST which can be suppressed if it is tried
carefully both by the people and govt.
REVIEW OF LITERATURE
Yadav, A (2017)1 has analyzed on the topic “Impact of Goods and Services Tax (GST) On
Indian economy” in her article. She said that the main idea of GST is to replace the erstwhile
taxes like value added tax, excise duty, service tax and sales tax. The taxation system is very
vital for economy because they maintain equity of income group.

Sankar(2017)2 in his article “GST: Impact and implications on various industries in Indian
economy” gave information about the GST has brought as per the single tax system for the
manufacture and the sale of goods at the both central and the state level in the country.

Research Gap
Many researchers analyzed about GST in prudent manner and they touched the different
aspects on GST. But this paper is based on the new area of research; it is focused on the
awareness level of implementation of current indirect taxation system i.e. GST. Now the
recent buzzword how to simplify the taxation system and what are the ways to maximize the
consumer welfare. This paper also concentrated on the basis of different stake holder’s
perception how to simplify the taxation system.

Relevance Of the study

 It focuses on the existing problem related to the stake holders

 Implementation of GST would be successful if affordable by different level of people
 It helps to reduce economic imbalances in our country.

Objective of the study

 To study the overall concept of GST.

 To analyse the awareness on implementation of GST among the respondents.
 To study the impact of GST on the stake holders.

Research Methodology

The present study will be both analytical and empirical in nature. The research will be based
on both the primary and secondary sources of data. The primary data will be collected from
various stakeholders like govt, public, businessman etc in the twin city (Cuttack and
Bhubaneswar). Well structured questionnaire will be prepared and asked to the targeted
respondents. The secondary data will be collected from the websites of CBEC and other
related websites, newspaper, articles and journal.
The sample size will be 60 which include 30 traders, 20 consumers and 10 tax practiners.

Tools used for analysis

 Percentage
 Chi square test
 Arithmetic mean
 Standard deviation