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AWARENESS AND PERCEPTION OF CONSUMERS TOWARDS GOODS AND SERVICE TAX –

A STUDY WITH REFERENCE TO CONSUMERS OF MANGALURU CITY

INTRODUCTION

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 government and all public needs.

Tax is a mandatory liability for every citizen of the country. There are two types of tax in India i.e.
direct and indirect. Taxation in India is rooted from the period of Manu Smriti and Arthasasta. Present
Indian tax system is based on this ancient tax system which was based on the theory of maximum
social welfare. It was only for the good of his subjects that he collected taxes from them, just as the
Sun draws moisture from the earth to give it back a thousand-fold.

By Kalidas in Raghuvansh eulogizing KING DALIP.

The origin of the word “Tax” is from “Taxation” which means an estimate.

In India, the system of direct taxation as it is known today has been in force in one form or another
even from ancient times. Variety of tax measures are referred in both Manu Smriti and Arthasastra.
The wise sage advised that taxes should be related to the income and expenditure of the subject. He,
however, cautioned the king against excessive taxation; a king should neither impose high rate of tax
nor exempt all from tax.

In India, this tax was introduced for the first time in 1860, by Sir James Wilson in order to meet the
losses sustained by the Government on account of the Military Mutiny of 1857. In 1918, a new income
tax was passed and again it was replaced by another new act which was passed in 1922. This Act
remained in force up to the assessment year 1961-62 with numerous amendments. In constitution
with the Ministry of Law finally the Income Tax Act 1961 has been brought into force with 1 April
1962. It applies to the whole of India and Sikkim (including Jammu and Kashmir).

Since 1962 several amendments of far-reaching nature have made in the Income Tax Act by the Union
Budget every year.

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AWARENESS AND PERCEPTION OF CONSUMERS TOWARDS GOODS AND SERVICE TAX –
A STUDY WITH REFERENCE TO CONSUMERS OF MANGALURU CITY

TAX

Tax is a ‘financial charge’ or deduction from something you get or own or an additional cost added
to something you buy. It is not a penalty or fine for doing something wrong. Normally government
collects taxes so that there is a pot of money to spend on things that benefit society as a whole. This
might be law enforcement, including the police and courts, infrastructure, like roads and pathways,
and administration.

INDIRECT TAX

It is a tax levied by the Government on goods and services and not on the income, profit or revenue
of an individual and it can be shifted from one taxpayer to another. In other words, Indirect Tax is
levied on the person who is making the sale but he can recover the same from the buyer. In some
cases, the Indirect Tax portion is specifically mentioned in the invoice whereas in other cases – the
portion of indirect tax is automatically included in the transaction value and not separately.

Earlier, an indirect tax meant paying more than the actual price of a product bought or a service
acquired. And there was a myriad of indirect taxes imposed on taxpayers.

INDIRECT TAXES IN INDIA

Let’s discuss a few indirect taxes that were earlier imposed in India:

1.Service Tax in India

Service tax is a tax which is levied on the Services provided by an entity. If an entity is providing any
service, they are required to levy Service Tax on the same. This service tax is collected from the
recipient of service and deposited with the Central Govt.

Service Tax is levied on all services except the services specified in the Negative List of Services.
Apart from this, Service Tax Exemption is allowed to Small Scale Service providers if the Total
Value of Services provided by them during the year is less than Rs.10 lakhs.

2.Excise Duty in India

Excise duty is an indirect tax levied on those goods which are manufactured in India. The taxable
event in this case is manufacture and the liability of central excise duty arises as soon as the goods
are manufactured. It is a tax on manufacturing which is paid by the manufacture, who passes its

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AWARENESS AND PERCEPTION OF CONSUMERS TOWARDS GOODS AND SERVICE TAX –
A STUDY WITH REFERENCE TO CONSUMERS OF MANGALURU CITY

incidence on to other customers and recovers the same from them. The rules and provisions as
mentioned in the Central Excise Act, 1944 are applicable for the levy of excise duty in India. This tax
is also levied by the Central Govt.

3.VAT in India

VAT stands for Value Added Tax and is levied on the sale of movable goods in India. VAT is a multi-
point destination-based system of taxation, with tax being levied on value addition at each stage of
transaction in the production/ distribution chain. The term ‘value addition’ implies the increase in
value of goods and services at each stage of production or transfer of goods. VAT is a tax on the final
consumption of goods or services and is ultimately borne by the consumer.

VAT is basically a state subject, derived from Entry 54 of the Sate List, for which the States are
sovereign in taking decisions. The State Governments, through Taxation Departments, are carrying
out the responsibility of levying and collecting VAT in the respective Staes.

4.Customs Duty in India

Customs Duty is a type of Indirect Tax which is levied on goods which are imported into India. In
some cases, it is also levied when the goods are exported from India.

In India, the basic law for levy and collection of customs duty is Customs Act, 1962. It provides for
levy and collection of duty on imports and exports, import/ export procedures, prohibitions on
importation and exportation of goods, penalties, offences, etc.

5.Securities Transaction Tax (STT)

Securities Transaction Tax or STT is a type of Indirect Tax which is levied at the time of sale/
purchase of securities through the Indian Stock Exchanges. These securities include shares, mutual
funds, F&O transactions etc. Securities Transaction Tax was introduced in India by the 2004 Budget
and is applicable with effect from 1st April 2004.The reason for the introduction of Securities
Transaction Tax was to lower the tax on short term capital gains exempted from the levy of any tax.

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AWARENESS AND PERCEPTION OF CONSUMERS TOWARDS GOODS AND SERVICE TAX –
A STUDY WITH REFERENCE TO CONSUMERS OF MANGALURU CITY

6.Stamp Duty

Stamp Duty is an indirect tax levied by the State Govt’s on the transfer of immovable property located
in their state. It is also levied by the Govt on all Legal Documents. The Stamp Duty Rates vary from
State to State.

7.Entertainment Tax

In India, Entertainment Tax is levied on every financial transaction that is related to entertainment
and is reserved primarily for the state governments. Some forms of entertainment on which
entertainment tax is levied include Amusement Parks, Video Games, Arcades, Exhibitions, Celebrity
Stage Shows, Sports Activities etc.

Apart from the above-mentioned Indirect Taxes, there are several other Indirect Taxes in India as
well like Luxury Tax, Sales Tax, Octroi etc.

Tax Structure before GST

 Before the implementation of GST, taxation laws between the Centre and states were clearly
demarcated. There were no overlaps between the fiscal powers, whatsoever. The Centre would
levy tax on goods manufacture, except alcohol for consumption, narcotics, opium, etc.

 The states had the power to charge tax on the sale of goods.

 The Centre would levy the Central Sales Tax that was collected by the originating states.

 The Centre was also levying service tax on all types of services.

 Additionally, the Centre was charging and collecting additional duties of customs on goods that
were imported into or exported from India. This tax was levied in addition to the Basic Customs
Duty. This additional duty of customs is referred to as Countervailing Duty (CVD) and Special
Additional Duty (SAD) and it counter balances excise duties, state VAT, sales tax, and other such
taxes.

The introduction of the GST regime made amendments to the Constitution so that the Centre and
states are empowered at the same time to levy and collect GST. This concurrent jurisdiction of the
states and Centre also requires an institutional mechanism that ensures joint decisions are taken about
the structure and operation of GST.

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AWARENESS AND PERCEPTION OF CONSUMERS TOWARDS GOODS AND SERVICE TAX –
A STUDY WITH REFERENCE TO CONSUMERS OF MANGALURU CITY

STATEMENT OF THE PROBLEM

Goods and service tax was implemented by the government of India on July 1st 2017. Since
implementation it has affected the different sectors of the economy like restaurant, E-commerce
business, manufacturing, Fast Moving Consumer Goods (FMCG), telecom, automobile, textile, retail,
housing etc. since the indirect taxes are subsumed, there is still lot of confusions in the minds of
consumers with regard to GST. With this background this study is undertaken to analyse the
awareness and perception of consumers towards GST.

OBJECTIVES OF THE STUDY

 To understand the concept of GST.


 To analyse the different factors which need to be taken into consideration while purchasing
the product.
 To understand the different awareness programmes conducted by GST council.
 To study the awareness and perception of consumers towards GST in Mangaluru City.
 To give suggestions based on their findings.

RESEARCH METHODOLOGY

Based on the requirements of the study both primary and secondary data is collected. Theoretical part
consists of literature review where the secondary data is collected from the published books, journals.
Internet, and magazines to study the effect of GST. Based on the requirement, the random samples
will be selected and with the help of structured questionnaire method and interview the information
will be gathered from the consumers of Mangaluru city of Dakshina Kannada district who are from
different areas and at the same time expert opinions on the matter will be also taken into consideration.
The data collected from the sample respondents on various aspects has been organized in the tabular
form. Such organised data has been analysed with the help of different statistical tools like average,
percentage etc. for easy understanding of the data and for drawing meaningful conclusion.

SOURCE OF DATA

The data has been collected from both primary and secondary sources.

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AWARENESS AND PERCEPTION OF CONSUMERS TOWARDS GOODS AND SERVICE TAX –
A STUDY WITH REFERENCE TO CONSUMERS OF MANGALURU CITY

The primary data has been collected through questionnaire adopted on the basis of the topic from
the sample respondents covering consumers of Mangaluru city of Dakshina Kannada district. And
the data collected from these respondents are analysed.

The secondary data is collected from various books, journals, magazines. Various websites are also
referred for the collection of the data and at the same time expert’s opinion are also taken into
consideration.

SAMPLE AND SAMPLE SIZE

The samples were selected from Mangaluru city. The sample size is 100. Samples were selected on
random sampling method. The information was gathered by the way of structured interview method
from them.

AREA OF STUDY: MANGALURU CITY

Mangalore is known as (1) Mangaluru in Kannada, (2) Kudla in Tulu, and (3) Kodiyal in Konkani is
the chief port city of the Indian state of Karnataka. It is about 350 kilometers (220 mi) west of the
state capital, Bangalore. Mangaluru lies between the Arabian Sea and the Western Ghats mountain
ranges, and is the administrative headquarters of the Dakshina Kannada (formerly South Canara)
district in south western Karnataka. With its pristine beaches, broad roads and calm localities this
coastal city was declared the eighth cleanest city in India.

SCOPE OF THE STUDY

Scope of the study refers to the boundary within which the study is confirmed to. It gives the boundary
within which the population and sample respondents are included in.

The study is mainly focus on the awareness of consumers towards the goods and services and also its
effect on the consumers buying and spending pattern. GST is expected to give a major relief to
industry, trade, agriculture and consumers through comprehensive and wider coverage of input tax
set off (both goods and services), subsuming of multiple taxes. It will ensure a simpler tax regime
with fewer taxes, rates and exemptions. GST is a best opportunity for consumers that help to increase
the purchasing power. This research will help us to examine the effect of GST on consumer savings
and spending pattern and also about the perception of consumers on changes in prices of goods and
services.

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AWARENESS AND PERCEPTION OF CONSUMERS TOWARDS GOODS AND SERVICE TAX –
A STUDY WITH REFERENCE TO CONSUMERS OF MANGALURU CITY

LIMITATIONS OF THE STUDY

 As the data is collected through primary source there are chances of errors.
 Time constraints while collecting the data as to locate the samples.
 The data collected is restricted to consumers of Mangaluru City only.

LAYOUT OF THE REPORT

This project report on “Awareness and perception of consumers towards Goods and Service Tax”
-A study with reference to consumers of Mangaluru City contains five chapters including summary,
findings, suggestions and conclusion.

The first chapter gives an introduction to the study, objectives, scope, methodology, limitations of
the study and layout of the report.

The second chapter deals with the literature review or perception of different authors towards GST.

The third chapter deals with the overview of Goods and Services Tax in India.

The fourth chapter deals with the collection of data, analysis of the data and the interpretation of it
which is collected through the questionnaire for the purpose of the study.

The fifth chapter deals with the Summary, Findings, Suggestions, and the Conclusion.

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AWARENESS AND PERCEPTION OF CONSUMERS TOWARDS GOODS AND SERVICE TAX –
A STUDY WITH REFERENCE TO CONSUMERS OF MANGALURU CITY

LITERATURE REVIEW

To understand the need of the study and also to find the research gap, there is a need for review of
literature by going through different journals, magazines, news articles and internet sources which
have published the articles related to the topic. It is necessary to go through these articles first so that
we can find the need of conducting the research and with regard to this, various articles of journals,
news from magazines and newspapers on Goods and Services Tax and its effect is considered here.

Author : Harjinder Kaur

Year : March 2019

Title : Public Awareness, Knowledge and Understanding of GST in India

Source : BULMIM Journal of Management and Research (January- June 2019) 4(1): 6- 10

Website : www.indianjournals.com

 Author attempted to explore the awareness, knowledge and understanding of GST in India.
To get a clearer picture on the degree of public awareness, knowledge and understanding of
GST, a study pays specific focus on these areas is necessary and this study aims to review the
consumer’s awareness towards the implementation of GST in India. Evaluated the results
seems to indicate respondents received less information and promotion of the authorities.
Most of the respondents were unclear which goods and services are subject to GST slabs. In
overall, through this study author conclude that GST will play a dynamic role in the growth
and development of our country.

Author : Shetty Deepa Thangam Geeta, Dr. SP Mathiraj, R Saroja Devi,

M Vinoth, N Nagalakshmi

Year : February 2019

Title : “Performance and Consequences of GST for Micro, Small and Medium

Enterprises”

Source : International Journal of Research and Analytical Reviews (IJ RAR)

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AWARENESS AND PERCEPTION OF CONSUMERS TOWARDS GOODS AND SERVICE TAX –
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www.ijrar.org volume 6, Issue 1

Website : www.researchgate.net

 According to authors that MSME is growing sector where enterprises enter and exit the market
frequently, so the implementation of GST has had a great effect on the survival in the market.
For existing enterprises, GST simplified the tax structure, unified the market hence improved
the overall operational efficiencies of MSME, so far the unorganized MSMEs were growing
fast than the organized ones because of the tax avoidance. For a new entrepreneur, the
application of GST, made the registration for taxation easy, relieved them from previous
VAT registration. The goods and services tax (GST) makes the tax system easy and thus
contributing in the growth of the country. Initially there was huge chaos regarding the
enactment of GST, but many successful businesspersons supported it and considered it as a
boon for the long-term development of the nation.

Authors : Dr Sandeep Verma & Mr. Sudip Banerjee

Year : 2018

Title : Issues Arises After Implementation Of GST In India.

Website : https://globaljournals.org/GJHSS_Volume18/2-Issues-Arises%20-after
Implementation.

 Authors highlighted about the challenges faced by Government of India after the
implementation of GST on 1st July, 2017.They said that change is definitely never easy. So it
is important to take a leaf from global economies that have implemented GST before us, and
who overcame the teething troubles to experience the advantages of having a unified tax
system and Government motive should not be collect more and more taxes to increase
revenues but a simple uniform structure of taxation from where all sectors can run smoothly
and grow as per requirement of the economy from where automatically tax collection can
increase.

Author : Gunjan Bhayana

Year : August 2018

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AWARENESS AND PERCEPTION OF CONSUMERS TOWARDS GOODS AND SERVICE TAX –
A STUDY WITH REFERENCE TO CONSUMERS OF MANGALURU CITY

Title : “Goods and Services Tax (GST): Act as a Game Changer and its

Cascading Effect on Indian Economy”

Source : ZENITH International Journal of Multidisciplinary Research ISSN 2231-5780

Vol.8 (8), PG No. 241-247

Website : www.indianjournals.com

 Author thought that GST acts as a game changer in a positive way and It provides good results
in long run only. Though with the implementation of GST, there can be both aspects either
positive or negative. There is no doubt to say that it leads to more documentation work but at
the same time, if it is efficiently handled then, it provides the good results. GST helps to reduce
the heavy tax burden on the consumers and also, it brings transparency in maintaining
accounts and it tends to decline in the operational costs also.

Authors : Anand Nayyar, Inderpal Singh

Year : February 2018

Title : “A comprehensive Analysis of Goods and Services Tax in India”

Source : Indian Journal of Finance, PG. No. 58-73

Website : https://www.researchgate.net

 According to Nayyar and Singh , the word “tax” is derived from Latin word “taxare” meaning
to evaluate. A tax is not a voluntary disbursement or gift, merely an obligatory contribution,
exacted pursuant to legislative authority and is contribution enforced by the government,
whether under the name of fee, tribute, impost, duty, custom, excise, sponsorship, aid, funding
or so forth. Taxation was executed by the first dynasty of the Ancient Egypt Kingdom who
lives around 3000BC – 2800 before Christ. An historical data extracted from the date stated
it was the Pharaoh who carried out consistent excursion of the monarchy, collecting duty
profits from its citizens.

Author : Pallavi Kapila

Title : “GST: Impact on Indian Economy”


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AWARENESS AND PERCEPTION OF CONSUMERS TOWARDS GOODS AND SERVICE TAX –
A STUDY WITH REFERENCE TO CONSUMERS OF MANGALURU CITY

Year : January, 2018

Source : International Journal of Engineering Research and Application

Website : http://www.ijera.com/papers/Vol8_issue1/Part-1/A0801010103

 Authors thought that the implementation of GST had played an important role in the growth
of Indian economy. A uniform and rational taxation system in India would lead to lesser
disruptions in the market economy and more efficient distribution of resources within the
industry in the near future and it would also lead to an increase in Gross Domestic Product
(GDP) and exports of the country enhancing economic welfare and returns to the factors of
production, i.e., land, labour and capital.

Author : Parveen Kumar

Year : November 2017

Title : Concept of Goods and Services Tax in India

Source : Airo National Journal, Volume 12, ISSN: 2321-3914

 According to the author Taxation plays a significant role in the development of the economy.
It can be concluded that GST will bring One Nation and One Tax market. The GST system is
basically structured to simplify past indirect tax system in India. Many indirect taxes like sales
tax, VAT etc., finished because there is one tax system i.e., GST. Current GST system is easy
as compare to past tax system in India. Current GST system simplifies tax hurdles for the
entire economy.

Authors : Dr Yogesh Kailashchandra Agrawal

Year : October 2017

Title : “Goods and Services Tax and Its Impact on Indian Economy”

Source : IOSR Journal of Business and Management( IOSR-JBM) Volume 19, Issue 10,
PG No. 26-30

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AWARENESS AND PERCEPTION OF CONSUMERS TOWARDS GOODS AND SERVICE TAX –
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Website : www.iosrjournals.org

 Author thought that GST is at the infant stage in Indian economy. It will take some time to
experience its effect on Indian economy. GST mechanism is designed in such a way that it is
expected to generate good amount of revenue for both central and state government.
Regarding corporate, businessmen and service providers it will be beneficial in long run. It
will bring transparency in collection of indirect taxes benefiting both the Government and the
people of India.

Authors : Arti, Vinita Kanwal, Divya Pandey, Chandan Kumar Rai and Priyanka Lal

Year : July 2017

Title : “Impact of GST on Agriculture: A Review”

Source : Indian Journal of Economics and Development, Vol. 13, No. 2a: 65-68

Website : www.indianjournals.com

 They concluded that goods and services tax is a single and a broad-based tax levied on goods
and services consumed in an economy. GST is expected to create a business-friendly
environment, as price level and inflation rate go down. This paper is helpful in bringing out
the light on Impact of GST on agriculture Sector. It can be said from the above that GST is
expected to have both positive and negative impact on the farm sector. In case of milk, Tea
and Fertilizer it is expected to show a negative impact. These are the most popular
commodities in India. GST will make tax system more transparent as single tax system is
available to whole country. Agricultural products were subjected to diversity of taxation rates;
as single rate of goods and service tax would help the farmers and also to traders because they
can sell their produce in any part of the country.

Authors : Sheethal K, C Lahari, Chaithanya

Year : March 2017

Title : “Perception of General Public Towards Voluntary Income Disclosure Scheme”

Source : National Conference on “PAY INDIA- 2017, Emerging Tax Reforms and
Implications” ISBN:978-81-930542-4-6

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AWARENESS AND PERCEPTION OF CONSUMERS TOWARDS GOODS AND SERVICE TAX –
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 In this paper the authors concluded that even though disclosure scheme gives an opportunity
to tax evaders by giving then a last chance and since this scheme allows to honor the dishonest,
even it creates the honest tax payers to move towards wrong direction. The voluntary income
disclosure scheme would be successful only if backed by hard information and a
determination to prosecute those who do not come forward. Without these elements’
disclosure schemes will tend to be instruments of misuse by hardened tax evaders and push
even honest taxpayers towards non-compliance.

Author : Shefali Dani

Year : November 2016

Title : “An Impact of Goods and Services Tax on Indian Economy”

Source : Business and Economic Journal, Bus Eco J 7: 264.

 In this research paper the author described that the proposed GST regime is a half-hearted
attempt to rationalize indirect tax structure. The government of India should study the GST
regime set up by various countries and also their fallouts before implementing it. No doubt,
GST will simplify existing indirect tax system and will help to remove inefficiencies created
by the existing current heterogeneous taxation system only if there is a clear consensus over
issues of threshold limit, revenue rate and inclusion of petroleum products, electricity, liquor
and real estate. Until the consensus is reached, the government should resist from
implementing such regime.

Author : Dr. Anita Sharma

Year : November 2016

Title : “GST- A New Beginning In Indian Financial System”

Source : International journal of advanced research in management and social

Sciences, Vol. 5 No. 11

 Author described that to implement the GST in its full-fledged spirit a series of challenges
also have to be faced. The conclusion of paper is that although there are lots of challenges in
implementation of GST in India but the benefits which will be received after implementing it

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properly will outweigh its cost. Hence it should be implemented in its full spirit as early as
possible.

Authors : Tiwari Mahima, Puntambekar G.L

Year : July 2016

Title : Goods And Services Tax In India: Need & Hurdles

Source : International Journal In Management And Social Science,

Vol.4,Issue.7,Pg.No.611-622

Website : www.Indianjournals.Com

 This paper is an attempt to examine the basic feature of proposed GST and to identify its need
in the present era of Globalization. The paper also aims to identify the hurdles in reaching at
a agreeable structure between Central and States. It is expected that the GST would be a game
changing indirect tax reform after independence but its trail in a federal country like India a
major hurdle in implementing the GST. This paper also aims to identify the hurdles and
suggest possible and practical solution to the problem.

Author : Dr Mahesh U Daru

Year : May 2016

Title : “A Critical Appraisal Of GST In India”

Source : International Journal Of Research in IT And Management, Vol. 6, Issue.5,

Pg. No.109-114

Website : www.indianjournals.com

 According to Dr Mahesh, based on the experience of the tax reform and the complexities
involved, it is important to underline the three important issues. First, given that there are 32
actors in the negotiations (29 states, two Union Territories with legislatures and the central
government), it would take considerable time to finalize the structure and operational aspects
of the tax. The structure that would emerge would be based on the consensus reached and it

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is necessary to ensure that the fundamental, sound features of the tax are not compromised. In
fact, the introduction of GST is only the next stage of reform. In that sense, the introduction
of GST will not be a silver bullet and we should keep expectations at a realistic level.

Author : Abhimanyu Sahoo

Year : August 2015

Title : “Goods and Services Tax: A Step towards Indirect Tax Reforms in India”

Source : Asian Journal of Research in Business Economics and Management

Vol. 5, No. 8, PG. No. 58-68

Website : www.indianjournal.com

 Author thought that one of the biggest taxation reforms in India - the Goods and Services Tax,
is all set to integrate state economies and boost overall national growth and welfare. GST will
create a single, unified and level playing Indian market to make the economy stronger. Experts
say that GST is likely to improve tax collections and boost India’s economic development by
breaking tax barriers between states and integrating India through a uniform tax rate. Under
GST, the taxation burden will be divided equitably between manufacturing and services,
through a lower tax rate by increasing the tax base and minimizing exemptions so as to make
the tax structure less burdensome on consumers.

Author : Deepak Kumar Adhana

Year : August 2015

Title : “Goods and Services Tax : A Panacea for Indian Economy”

Source : International Journal of Engineering and Management Research,

Vol. 5, Issue-4, PG. No. 332-338

Website : www.indianjournal.com

 Author concluded that once GST will be introduced and implemented throughout the country
then few years later, a detailed research shall be conducted to see the overall performance of

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GST. Also he said that a comparison will be possible between current taxation system and
proposed GST. This research will help in ascertaining the progress of economy.

Author : Dr Gupta Ankita

Year : July 2015 (Award Winning Paper)

Title : “Problems Of Double Taxation In India-A Case For Progressive GST”

Source : Journal Of Commerce And Management, Vol.6, Issue.3, PG.No.599-619

Website : www.indianjournals.com

 Author concluded that there is an urgent need to look into the Indian tax structure and try to
reform it so as to implement the fair tax regime policy as mentioned in the IT Act 1961 and
also advocated by Chelliah committee in 1992. Government needs to cut down certain
components of Indian tax structure causing double taxation, but at the same time it is also
important to maintain the revenue levels of the government.

Author : Sury M. M

Year : July 2015

Title : National Level Goods and Services Tax: Towards Cooperative Federalism,

Vol.2, Issue.2, Pg.No.1-13

Source : Vision: Journal of Indian Taxation

Website: www.indianjournals.com

 According to author, the GST has been an initiative that has commanded broad consensus
across the political spectrum. It has also been a model of cooperative federalism in practice
with the Centre and states coming together as partners in embracing growth and employment
enhancing reforms. It is a reform that is long awaited and its implementation will validate
expectations of important government actions and effective political will that have, to some
extent, already been priced in. Given the historic opportunity afforded by the GST, the aim
should be to clean up an Indian tax system that has effectively become an exemptions raj with
serious consequences for revenues and governance.

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Author : Saravanan Venkadasalam.

Year : December, 2014.

Title : “Implementation of Goods and Service Tax (GST): An Analysis on ASEAN

States”

“Using Least Squares Dummy Variable Model (LSDVM)”.

Source : International Conference on Economics, Education and Humanities

(ICEEH’14) PG No. 7-9.

 Author 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.

Authors : Pinki, Supriya Kamma and Richa Verma

Year : 10, July 2014

Title : “Goods and Services Tax- Panacea For Indirect Tax System in India”

Source : Tactful Management Research Journal

 They conclude that if GST is successfully implemented it will benefits central and state
governments. As GST is applicable on supply of goods and services, the consumers will also
be served in long run.

Author : Nitin Kumar

Year : May 2014

Title : “Goods and Services Tax in India- A way Forward”

Source : Global Journal of Multidisciplinary Studies

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 Author concluded that implementation of GST in India helps in removing economic distortion
by current indirect tax system and expected to encourage unbiased tax structure which is
indifferent to geographical locations.

Author : Agogo Mawuli

Year : April 2014

Title : “Goods and Services Tax- An Appraisal”

Source : Paper presented at the PNG Taxation Research and Review Symposium,
taxreview.gov.pg

 They found that GST is not good for low income countries and does not provide broad based
growth to poor countries. If still these countries want to implement GST then the rate of GST
should be less than 10% for growth.

Author : Nishitha Guptha

Year : 2014

Title : “Goods and Services Tax: Its impact on Indian Economy”

Source : International Research Journal of Commerce, Arts and Science,


https:/doi.org/10.32804/CASIRJ

 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. Hence GST may usher in the possibility of a collective gain for
industry, trade, agriculture and common consumers as well as for the central government and
state government.

Authors : Dhillon Lakhwinder Kaur, Gandhi Chaitanya

Year : August 2013

Title : “Impact of GST on B Power Projects Pvt Ltd”

Source : Zenith International Journal of Multidisciplinary Research,

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Vol. 3, Issue. 8, PG. No. 73-83

Website : www.indianjournals.com

 Authors concluded that GST will eliminate various taxes. GST might create problem initially
but in the long run, it would make the process of tax collection and payment a lot easier than
present GST system might affect entity of B Gensets Pvt Ltd in a big way. Tax liability would
be considerably reduced for the B group. B group will grow as it would get cheaper raw
materials due to reduced taxes, will be able to offer cheaper gensets to the consumer and hence
the company will see growth in its overall business.

Author : Anshu Jain

Title : “An Empirical Analysis on Goods and Service Tax in India: Possible Impact,

Implication and Policies”

Year : January, 2013

Source : International Journal of Reviews, Surveys and Research, Vol.2, Issue.1

Website : www.ijrsr.com

 Author attempted to explore the impacts, implications, and policies of an introduction


of GST in India. In addition to that, it was stated that finance is an essential factor in
governing the country’s economic growth. The good tax structure and identifying the
evasion also helps the government to spend expenditure on public service and
infrastructure development. Cascading revenue to make a different impact on the firm,
it creates international competitiveness of the negatively affected of production sectors
in the economy. These international factors lead to inefficient allocation of productive
resource in the economy. He told about the Value Added Tax is one of the important
instruments of indirect taxation. Since VAT can be applied on goods and services it
has also termed as goods and service tax (GST) during the last four decades, 130
countries were adopted VAT, which results in 1:5 of world tax revenue. Thus,
indication of other countries, willing to adopt VAT. Taxation policy will grow up
economic efficiency and reduces distortion to efficient resource allocation.

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Author : Mr Herekar.

Title : “Evaluation of impact of goods and service tax (GST)”

Year : 2012.

Source : International Journal of scientific research and management (IJSRM).

 Author told that GST is moved to radical changes on the tax system because the GST will
reduce the government expenditure and will achieve the fiscal consolidation. Finally, the
author concluded that the implementation of a comprehensive GST in India is expected to
lead to efficient allocation of the production factors thus leading to gains in GDP and exports.
This would translate into improve economic welfare and returns to the factors of production
likewise land, labour, and capital.

Author : Yogita Beri

Year : October 2011

Title : “Problems and Prospects of Goods and Services Tax in India”

Source : Economic Affairs, Vol. 56, Issue. 4, PG. No. 353-357

Website : www.indianjournals.com

 Author analyzed that the subsuming of major central and state taxes would reduce the cost of
locally manufactured goods and services. This is likely to increase the competitiveness of
Indian goods and services in the international market and to boost Indian exports.

Author : Yogita Beri

Year : August 2011

Title : “Problems and Prospects of Goods and Services Tax in India”

Source : Economic Affairs, Vol.56, Issue.4, Pg. No. 353-357. Dec. 2011

Website : www.indianjournals.com

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 GST will give more relief to industry, trade and agriculture through a more comprehensive
and wider coverage of input tax set-off and service tax set-off, subsuming of various Central
and State taxes in the GST and phasing out of CST. The transparent and complete chain of
set-offs which will result in widening of tax base and better tax compliance may also lead to
lowering of tax burden on an average dealer in industry, trade and agriculture. The subsuming
of major centre and state taxes would reduce the cost of locally manufactured goods and
services. This is likely to increase the competitiveness of Indian goods and services in the
international market and to boost Indian exports.

Author : Dr. R. Vasanthagopal

Year : April 2011

Title : “GST in India: A Big Leap in the Indirect Taxation System”

Source : International Journal of Trade, Economics and Finance

 Author thought that switching to seamless GST from earlier complicated indirect tax system
in India will be a positive step in booming Indian economy. Success of GST will lead to its
acceptance by more than 150 countries in world and a new preferred form of indirect tax
system in Asia also.

After going through these articles related to GST implementation and its impacts and also regarding
to the perception of the various authors towards the topic from different sources, it gave a theoretical
background for the study and provided guidelines in the planning of research. Authors have analysed
the positive and negative impact of GST after its implementation and before its introduction also
many authors were discussed about its challenges and predicted the probable effects on the different
sectors of the economy. But there were few researches towards the GST effect on Consumers and
awareness of consumers about GST, it is felt that there is a gap to know the effect of GST on the
Consumers in Mangaluru city as least number of studies are conducted towards the topic of
consumers’ awareness towards GST effect on Consumers. And consumers are aware of GST but not
properly aware of rules and regulations of GST, GST identification number, GST portal and GST
rates.

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OVERVIEW OF GOODS AND SERVICE TAX

GST is one indirect tax for the whole nation, which will make India one unified common market.
GST is one of the biggest indirect tax reforms in the country. GST is a single tax on the supply of
goods and services, right from the manufacturer to the consumer. It is a destination-based tax. GST
has subsumed taxes like central excise law, service tax law, VAT, entry tax, Octroi etc. Credits of
input taxes paid at each stage will be available in the subsequent stage of value addition, which makes
GST essentially a tax only on value addition at each stage. The final consumer will thus bear only the
GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages.
Due to non-consensus between central and state government, the proposal is to introduce a Dual GST
regime i.e. Central and State GST. It is expected to bring together state economies and improve
overall economic growth of the nation. GST was firstly introduced in France in 1954, with
introduction of GST France became the first country ever to introduce GST. Its introduction was
requiring because very high sales taxes and tariffs encourage cheating and smuggling. After France
it was adopted by 165 nations including the members of the European Union and ASEAN countries
such as Singapore, Indonesia, Thailand and others. Now, India become 166 th nation to adopt it. In
India France Ministry has placed 122nd Constitution Amendment Bill in Lok Sabha in 19th December,
2014. The Government of India has appointed various committees, task force to give their views to
introduce a vibrant and modern Indirect Tax structure in India. One of the most important benefit of
the move is the mitigation of double taxation or the elimination of the cascading effect of taxation.
GST was first mooted by the then Union Finance Minister in his budget discourse for 2006-07. Our
Constitution empowers the Central Government to levy excise duty on manufacturing and service tax
on the supply of services. Further, it empowers the state Governments to levy sales tax or value added
tax (VAT) on the sale of goods. This exclusive division of fiscal powers has led to a multiplicity of
indirect taxes in the country. Further, many states levy an entry tax on the entry of goods in local
areas. In order to simplify and rationalise indirect tax structures, Government of India attempted
various tax policy reforms at different points of time. A system of VAT on services at the central
government level was introduced in 2002. The states collect taxes through state sales tax VAT,
introduced in 2005, levied on intra state trade and the CST on inter-state trade. This led to the idea of
“One nation One tax” and introduction of GST in Indian financial system.

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HISTORY OF GST IN INDIA

 2000: In India, the idea of adopting GST was first suggested by the Atal Bihari Vajpayee
Government in 2000. The state finance ministers formed an Empowered Committee (EC) to create
a structure for GST, based on their experience in designing State VAT. Representatives from the
Centre and states were requested to examine various aspects of the GST proposal and create reports
on the thresholds, exemptions, taxation of inter-state supplies, and taxation of services. The
committee was headed by Asim Dasgupta, the finance minister of West Bengal. Dasgupta chaired
the committee till 2011.
 2004: A task force that was headed by Vijay L. Kelkar the advisor to the finance ministry, indicated
that the existing tax structure had many issues that would be mitigated by the GST system.
 February 2005: The finance minister, P. Chidambaram, said that the medium-to-long term goal
of the government was to implement a uniform GST structure across the country, covering the
whole production-distribution chain. This was discussed in the budget session for the financial year
2005-06.
 February 2006: The finance minister set 1 April 2010 as the GST introduction date.
 November 2006: Parthasarthy Shome, the advisor to P. Chidambaram, mentioned that states will
have to prepare and make reforms for the upcoming GST regime.
 February 2007: The 1 April 2010 deadline for GST implementation was retained in the union
budget for 2007-08.
 February 2008: At the union budget session for 2008-09, the finance minister confirmed that
considerable progress was being made in the preparation of the roadmap for GST. The targeted
timeline for the implementation was confirmed to be 1 April 2010.
 July 2009: Pranab Mukherjee, the new finance minister of India, announced the basic skeleton of
the GST system. The 1 April 2010 deadline was being followed then as well.
 November 2009: The EC that was headed by Asim Dasgupta put forth the First Discussion Paper
(FDP), describing the proposed GST regime. The paper was expected to start a debate that would
generate further inputs from stakeholders.
 February 2010: The government introduced the mission-mode project that laid the foundation for
GST. This project, with a budgetary outlay of Rs.1,133 crore, computerised commercial taxes in
states. Following this, the implementation of GST was pushed by one year.

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 March 2011: The government led by the Congress party puts forth the Constitution (115th
Amendment) Bill for the introduction of GST. Following protest by the opposition party, the Bill
was sent to a standing committee for a detailed examination.
 June 2012: The standing committee starts discussion on the Bill. Opposition parties raise concerns
over the 279B clause that offers additional powers to the Centre over the GST dispute authority.
 November 2012: P. Chidambaram and the finance ministers of states hold meetings and set the
deadline for resolution of issues as 31 December 2012.
 February 2013: The finance minister, during the budget session, announces that the government
will provide Rs.9,000 crore as compensation to states. He also appeals to the state finance ministers
to work in association with the government for the implementation of the indirect tax reform.
 August 2013: The report created by the standing committee is submitted to the parliament. The
panel approves the regulation with few amendments to the provisions for the tax structure and the
mechanism of resolution.
 October 2013: The state of Gujarat opposes the Bill, as it would have to bear a loss of Rs.14,000
crore per annum, owing to the destination-based taxation rule.
 May 2014: The Constitution Amendment Bill lapses. This is the same year that Narendra Modi
was voted into power at the Centre.
 December 2014: India’s new finance minister, Arun Jaitley, submits the Constitution (122nd
Amendment) Bill, 2014 in the parliament. The opposition demanded that the Bill be sent for
discussion to the standing committee.
 February 2015: Jaitley, in his budget speech, indicated that the government is looking to
implement the GST system by 1 April 2016.
 May 2015: The Lok Sabha passes the Constitution Amendment Bill. Jaitley also announced that
petroleum would be kept out of the ambit of GST for the time being.
 August 2015: The Bill is not passed in the Rajya Sabha. Jaitley mentions that the disruption had
no specific cause.
 March 2016: Jaitley says that he is in agreement with the Congress’s demand for the GST rate not
to be set above 18%. But he is not inclined to fix the rate at 18%. In the future if the Government,
in an unforeseen emergency, is required to raise the tax rate, it would have to take the permission
of the parliament. So, a fixed rate of tax is ruled out.
 June 2016: The Ministry of Finance releases the draft model law on GST to the public, expecting
suggestions and views.

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 August 2016: The Congress-led opposition finally agrees to the Government’s proposal on the
four broad amendments to the Bill. The Bill was passed in the Rajya Sabha.
 September 2016: The Honourable President of India gives his consent for the Constitution
Amendment Bill to become an Act.
 2017: Four Bills related to GST become Act, following approval in the parliament and the
President’s assent:
 Central GST Bill
 Integrated GST Bill
 Union Territory GST Bill
 GST (Compensation to States) Bill
The GST Council also finalised on the GST rates and GST rules. The Government declares that the
GST Bill will be applicable from 1 July 2017, following a short delay that is attributed to legal issues.

TAX STRUCTURE BEFORE GST

 Before the implementation of GST, taxation laws between the Centre and states were clearly
demarcated. There were no overlaps between the fiscal powers, whatsoever. The Centre would
levy tax on goods manufacture, except alcohol for consumption, narcotics, opium, etc.
 The states had the power to charge tax on the sale of goods.
 The Centre would levy the Central Sales Tax that was collected by the originating states.
 The Centre was also levying service tax on all types of services.
 Additionally, the Centre was charging and collecting additional duties of customs on goods that
were imported into or exported from India. This tax was levied in addition to the Basic Customs
Duty. This additional duty of customs is referred to as Countervailing Duty (CVD) and Special
Additional Duty (SAD) and it counter balances excise duties, state VAT, sales tax, and other such
taxes.
The introduction of the GST regime made amendments to the Constitution so that the Centre and
states are empowered at the same time to levy and collect GST. This concurrent jurisdiction of the
states and Centre also requires an institutional mechanism that ensures joint decisions are taken about
the structure and operation of GST.

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CONSTITUTION (ONE HUNDRED AND FIRST) AMENDMENT ACT, 2016

In order to address prevalent issues in taxation, the Constitution 122nd Amendment Bill was put forth
in the 16th Lok Sabha on 19 Dec 2014.

 The Bill suggests levy of GST on all goods and services, except alcohol that humans consume.
 The tax is levied as Dual GST by the Centre and states/union territories. The component levied by
the Centre is Central Tax - CGST, while that levied by the state is State Tax - SGST. The tax levied
by union territories is Union Territory Tax - UTGST.
 The Centre would levy the GST on inter-state trade or imports of services and goods. This tax is
referred to as Integrated Tax - IGST.
 The Central Government will also levy excise duty on tobacco products, in addition to GST.
 The tax on five petroleum products, i.e., high speed diesel, crude, petrol, natural gas, and Aviation
Turbine Fuel (ATF) will be outlined later after a decision is made by the GST Council.
September 2016: A Goods and Services Tax Council (GSTC) was created by the union finance
minister, revenue minister, and ministers of state to take decisions on GST rates, thresholds, taxes to
be subsumed, exemptions, and other features of the taxation system. The state finance ministers
mentioned that the EC would be a platform for states where there would be discussions of their
regional issues. The GST Council is a separate entity that would oversee the implementation of the
GST system.

DECISIONS TAKEN BY GST COUNCIL

Some of the major decisions taken by the GSTC so far are:

 There would be four tax rates under the GST regime, i.e., 5%, 12%, 18%, and 28%. Some goods
and services were also classified as exempt from tax.
 A cess above the peak rate of 28% would be levied on certain sin and luxury goods.
 The administrative control over 90% of taxpayers with turnover less than Rs.1.5 crore would be
with the State tax administration. 10% of control would be with the Central tax administration.
 Administrative control over taxpayers having turnover above Rs.1.5 crore would be equally
divided between the State and Centre tax administration.

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GOODS AND SERVICES TAX NETWORK

Goods and Services Tax Network (GSTN) was set up as a private company in 2013 by the
Government under Section 25 of the Companies Act, 1956. GSTN is expected to offer the front-end
services of registration, payment, and returns to taxpayers. It would also develop back-end technical
modules that will be utilised by 25 states that have opted in.

GSTN has also identified 34 IT and financial technology companies and tagged them as GST Suvidha
Providers (GSPs). These organisations will develop applications that will be used by taxpayers when
they interact with GSTN.

GOODS AND SERVICE TAX IDENTIFICATION NUMBER (GSTIN)

GST Number or GSTIN is essentially your businesses’ legal online identity. Under the GST regime,
once your GST application is done, you are given a 15-digit alphanumeric identification number. This
number is basically to be quoted at all GST Invoices issued to customers. In addition to this, the
ident0fication number is also required for filing GST returns and handling everything related to GST
of a particular business.

Before the implementation of GST, under the taxation system of VAT (Value Added Tax) dealers of
goods were assigned a unique TIN number by the respective tax authorities. In addition to this, service
providers were issued a service tax registration number by the Central Board of Excise and Customs
(CBEC).

The GSTIN aims at consolidating the millions of taxpayers which were registered under varying tax
paying schemes. It has been estimated that over 8 million taxpayers will be migrating from
registration in different forms of taxation.

In this article, we will look at the format of GST identification Number, how to identify, as well as,
verify the GST number. It is important to verify the GST number. Many businesses just put out a fake
GSTIN in order to appear compliant to the GST regulations as it has become necessary.

Businesses put out invoices with accurate CGST and IGST breakup as well to appear tax regulatory.
However, this is fake and the tax shown doesn’t go towards the government. It is more than just tax
evasion and borderlines into a theft.

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GSTIN FORMAT

 The first 2 digits of the 15 digits GSTIN will represent the state code.
 The next 10 digits will be the PAN Number of person or firm engaged in Business.
 As proposed the State Code as defined under the Indian Census 2011 would be adopted in the
GSTIN. As per the terms of the Indian Census 2011, every State has been allotted a unique
two digits code. For 01 for Jammu and Kashmir, 02 for Himachal Pradesh, 03 for Punjab.
 The 13th would represent the number of registrations an entity has within a state under the
same PAN. It will be an alpha-numeric number (first 1-9 and then A-Z) and will be assigned
on the basis of a number of registrations a legal entity (having the same PAN) in the same
state.

KEY FEATURES OF THE GST REGIME

The GST system is characterized by the following features:

1. Levy of GST: The centre will levy Central GST (CGST) and the states will levy State GST (SGST)
on the supply of goods and services within a state. The centre will levy IGST in the case of (i) inter-
state supply of goods and services, (ii) imports and exports, and (iii) supplies to and from special
economic zones.
2. Tax rates: The GST Council will recommend the tax rates with respect to CGST, SGST and IGST.
The tax rates for each CGST and SGST will not exceed 20%. The tax rate of IGST will not exceed
40%. In addition, a cess will be levied on certain goods and services to compensate states for revenue
loss (discussed later). The Central GST Bill allows certain taxpayers with turnover less than Rs 50

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lakh to pay CGST at a flat rate on turnover (composition levy), instead of the value of supply of goods
and services.
3. Date of liability: The liability to pay GST in relation to supply of goods and services will arise on
the date of: (i) issue of invoice, (ii) receipt of payment, whichever is earlier.
4. Exemptions from GST: The centre may exempt certain goods and services from the purview of
GST through a notification. This will be based on recommendations of the GST Council.
5. Taxable amount (value of supply): The GST will be levied on the supply of goods and services,
whose value will include: (i) price paid on the supply, (ii) taxes and duties levied under other tax
laws, (iii) interest, late fee, penalties for delayed payments, among others.
Supply of goods and services
6. Place of supply of goods: The Integrated GST Bill provides separate rules for goods and services
to determine the place (state) of their supply. In cases where a good has been physically moved, the
place of supply will be the final destination of the good. In other cases, the place of supply will be
where the good is received by the recipient.
7. Place of supply of services: Provisions with respect to determining the place of supply of services
vary depending upon the nature of services. For example, place of supply for immovable property
(such as architects designing a building), will be the location of the immovable property. Specific
provisions have also been made for supply of services such as catering, sporting events, transportation
of goods, advertisement, telecommunications, among others.
8. Input tax credit: Every taxpayer while paying taxes on outputs may take credit for taxes paid
earlier by the supplier on inputs. However, this will not be applicable on supplies related to: (i) motor
vehicles when used for personal consumption, (ii) supply of food, health services, etc. unless they are
further used to make a supply.
9. Apportionment of IGST revenue: The IGST collected will be apportioned between the centre
and the state where the goods or services are consumed. The revenue will be apportioned to the centre
at the CGST rate, and the remaining amount will be apportioned to the consuming state.
10. Registration of taxpayers: Every person with a turnover exceeding Rs 20 lakh will have to
register in every state in which he conducts business. This threshold will be Rs 10 lakh for special
category states (i.e. Himalayan and North-Eastern states). A person may have multiple registrations
for different business verticals in a state.

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11. Returns: Every taxpayer should self-assess and file tax returns on a monthly basis by submitting:
(i) details of supplies provided, (ii) details of supplies received, and (iii) payment of tax. In addition
to the monthly returns, an annual return will have to be filed by each taxpayer.
12. Refunds and welfare fund: Any taxpayer may apply for refund of taxes in cases including: (i)
payment of excess taxes, or (ii) unutilised input tax credit. The refund may be credited to the taxpayer,
or to a Consumer Welfare Fund under certain circumstances.
13. Compensation to states on loss of revenue: States will be compensated by the centre for loss of
revenue, due to the implementation of GST. Compensation will be provided for a period of five years
from when the State GST Act comes into force. The compensation will be calculated and provided
in the following way:

i. Projected growth rate and base year: The compensation amount will be calculated using revenue
collections in 2015-16 as the base year. A growth rate of 14% per annum over the base year will be
assumed. The base year tax revenue will consist of the states’ tax revenues from: (i) Value Added
Tax (VAT), (ii) central sales tax, (iii) entry tax, octroi, local body tax, (iv) taxes on luxuries, and (v)
taxes on advertisements, among others. Revenue arising in relation to supply of alcohol for human
consumption and certain petroleum products, will not be accounted in the base year revenue.

ii. Calculation and release of compensation: The compensation payable to a state will be provisionally
calculated and released at the end of every two months. An annual calculation of the total revenue
will be undertaken, which will be audited by the Comptroller and Auditor General of India.

iii. Levy and compensation of GST compensation cess: A GST Compensation Cess may be levied on
the supply of certain goods and services, as recommended by the GST Council. The receipts from the
cess will be deposited in a GST Compensation Fund. The receipts from the cess will be used for
providing compensation to states for loss of revenue due to the implementation of GST. The cess will
be capped at: (i) 135% for pan masala, (ii) Rs 400 per tonne for coal, (iii) Rs 4,170 + 290% per 1,000
sticks of tobacco, and (iv) 15% for all other goods and services including motor cars and aerated
water.

iv. Any unutilised money in the Compensation Fund at the end of the compensation period will be
shared between the centre and states in the following manner: (i) 50% of the fund to be shared between

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the states in proportion of their SGST revenues, and (ii) the remaining 50% will be part of the centre’s
divisible pool of taxes.
14. Prosecution and appeal: For offences such as mis-reporting of: (i) goods and services supplied,
(ii) details furnished in invoices, a person may be fined, imprisoned, or both by the CGST
Commissioner. Such orders can be appealed before the Goods and Services Tax Appellate Tribunal,
and further before the High Court.
15. Transition to the new regime: Taxpayers with unutilised input tax credit obtained under the
current central excise and state VAT laws may utilise it under GST. In addition, businesses may also
avail input tax credit on stock purchased before the implementation of GST.
Other provisions in the Bills
16. Anti-profiteering measure: The central government may by law set up an authority to examine
if reduction in tax rate has resulted in commensurate reduction in prices of goods and services. The
powers of the authority will be prescribed by the government.
17. Compliance rating: Every taxpayer shall be assigned a GST compliance rating score based on
his record of compliance with the provisions of this Bill. The compliance rating score will be updated
at periodic intervals and be placed in the public domain.

TYPES OF GOODS AND SERVICE TAX

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Since GST subsumed indirect taxes of both central government (excise duty, service tax, custom duty,
etc.) and state governments (VAT, Luxury tax, etc.), both the governments now depend on GST for
their indirect tax revenue. Therefore, the GST rate is composed of two rates. Intra-state transactions
will carry one of CGST and one of SGST (in case of state) or CGST and UTGST (in case of union
territory). Therefore, while making an intra-state sale (i.e., sale within the same state), the CGST
collected will go to the central government and the SGST collected will go the respective state
government in which sale is made. Similarly, SGST or UTGST are replaced with IGST when intra-
state transactions are involved.

Hence, you can say that there are four types of GST:

 Central Goods and Services Tax


 State Goods and Services Tax
 Integrated Goods and Services Tax
 Union Territory Goods and Services Tax

 CGST

CGST full form is Central Goods and Service Tax.


CGST refers to the Central GST tax that is levied by the Central Government of India on any
transaction of goods and services tax taking place within a state. It is one of the two taxes charged on
every intrastate (within one state) transaction, the other one being SGST (or UTGST for Union
Territories). CGST replaces all the existing Central taxes including Service Tax, Central Excise Duty,
CST, Customs Duty, SAD, etc. The rate of CGST is usually equal to the SGST rate. Both taxes are
charged on the base price of the product. See the example below to understand it better.

e.g. – In the example above, when Suresh sales a product to Pradeep in the same state (Rajasthan), he
has to pay two taxes. CGST is for the central government while SGST is for the state. The rate of
CGST is 9%, same as SGST. After the application of CGST (9% of Rs 10,000), the final cost of the
product will become Rs 11,800.

As you can probably guess, all the taxes in all the conditions above are borne by the end consumer in
the final cost, not by the manufacturer or the dealer of the product or service. Since GST is levied on
consumption, the state where the product is originally manufactured is not entitled to the tax collected.

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If the manufacturing state levies a tax, the same will be transferred to the consuming state through
the Central government.

 SGST

SGST full form is State Goods and Service Tax.


SGST (State GST) is one of the two taxes levied on every intrastate (within one state) transaction of
goods and services. The other one is CGST. SGST is levied by the state where the goods are being
sold/purchased. It will replace all the existing state taxes including VAT, State Sales Tax,
Entertainment Tax, Luxury Tax, Entry Tax, State Cesses and Surcharges on any kind of transaction
involving goods and services. The State Government is the sole claimer of the revenue earned under
SGST. Let’s understand this with an example.

e.g. – Suresh from Rajasthan wants to sell some goods to Pradeep in Rajasthan. The product,
originally priced at Rs 10,000, will attract GST at 18% rate comprising of 9% CGST rate and 9%
SGST rate. The SGST tax amount here is Rs 900 (9% of Rs 10,000) which is fully claimed by the
Rajasthan State Government. The rate of the product after SGST will be Rs 10,900.

 IGST

IGST full form is Integrated Goods and Service Tax.


Integrated GST (IGST) is applicable on interstate (between two states) transactions of goods and
services, as well as on imports. This tax will be collected by the Central government and will further
be distributed among the respective states. IGST is charged when a product or service is moved from
one state to another. IGST is in place to ensure that a state has to deal only with the Union government
and not with every state separately to settle the interstate tax amounts. Let’s try to understand IGST
with an example.

e.g., – Ramesh is a manufacturer in Rajasthan who sold goods worth Rs 10,000 to Suresh in Rajasthan.
Since it is an interstate transaction, IGST will be applicable here. Let’s assume the GST rate is 18%
for the particular item. So, the IGST amount charged by the Central Government will be Rs 1800
(18% of Rs 10,000), and the refined rate of the product will be Rs 11,800.

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Now, GST is a consumption tax that means only the state where the goods are actually consumed will get
the tax benefits, irrespective of the manufacturing state.

 UTGST (or UGST)

UTGST full form is Union Territory Goods and Service Tax.


The Union Territory Goods and Services Tax, commonly referred to as UTGST, is the GST applicable
on the goods and services supply that takes place in any of the five Union Territories of India,
including Andaman and Nicobar Islands, Dadra and Nagar Haveli, Chandigarh, Lakshadweep and
Daman and Diu. This UTGST will be charged in addition to the Central GST (CGST) explained
above. For any transaction of goods/services within a Union Territory: CGST + UTGST

The reason why a separate GST was implemented for the Union Territories is that the common State
GST (SGST) cannot be applied in a Union Territory without legislature. Delhi and Puducherry UTs
already have their own legislatures, so SGST is applicable to them.

DIFFERENT TAXES ARE COVER UNDER GOODS AND SERVICE TAX

GST is commonly described as indirect, comprehensive, broad based consumption Tax. The Dual
GST which would be implemented in India will subsume many consumption taxes. The objective is
to remove the multiplicity of tax levies thereby reducing the complexity and remove the effect of Tax
Cascading. The objective is to subsume all those taxes that are currently levied on the sale of goods

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or provision of services by either Central or State Government. Subsumation of large number of taxes
and other levies will allow free flow of larger pool of tax credits at both Central and State level.

1. PRINCIPLES OF TAX SUBSUMATION


The various Central, State and Local levies were examined to identify their possibility of being
subsumed under GST. While identifying, the following principles were kept in mind:

 Taxes or levies to be subsumed should be primarily in the nature of indirect taxes, either on the
supply of goods or on the supply of services.
 Taxes or levies to be subsumed should be part of the transaction chain which commences with
import/ manufacture/ production of goods or provision of services at one end and the consumption
of goods and services at the other.
 The subsumation should result in free flow of tax credit in intra and inter-State levels.
 The taxes, levies and fees that are not specifically related to supply of goods & services should
not be subsumed under GST.
 Revenue fairness for both the Union and the States individually would need to be attempted.

2. CENTRAL TAXES TO BE SUBSUMED IN GST


On application of the above principles and various papers which have been released in this regard, it
is deduced that the following Central Taxes should be, to begin with, subsumed under the Goods and
Services Tax:

 Central Excise Duty (CENVAT)


 Additional Excise Duties
 The Excise Duty levied under the Medicinal and Toiletries Preparations (Excise Duties) Act 1955
 Service Tax
 Additional Customs Duty, commonly known as Countervailing Duty (CVD)
 Special Additional Duty of Customs – 4% (SAD)
 Surcharges and Cesses levied by Centre are also likely to be subsumed wherever they are in the
nature of taxes on goods or services. This may include cess on rubber, tea, coffee, national
calamity contingent duty etc.
 Central Sales Tax to be phased out.

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3. STATE TAXES TO BE SUBSUMED IN GST


Following State taxes and levies would be, to begin with, subsumed under GST:

 VAT / Sales tax


 Entertainment tax (unless it is levied by the local bodies)
 Luxury tax
 Taxes on lottery, betting and gambling
 State Cesses and Surcharges in so far as they relate to supply of goods and services
 Octroi and Entry Tax
 Purchase Tax

4. TREATMENT OF SPECIFIC GOODS


The Central Government tabled the 122nd Constitution Amendment Bill, 2014 (‘Bill’) on the
introduction of Goods and Services Tax (‘GST’) before the lower house of Parliament on December
19, 2014. On analysis of the Bill, the Bill contains the following treatment for the following specific
goods:

a) TAX ON SUPPLY OF THE ALCOHOLIC LIQUOR FOR HUMAN CONSUMPTION


As per the proposed amendment to Constitution by the Constitution (122nd Amendment) Bill, 2014,
supply of the alcoholic liquor for human consumption has been excluded from the definition of goods
and service tax. New clause 12A has been inserted in article 366 which defines goods and service tax
as follows:
“Goods and services tax” means any tax on supply of goods or services or both except taxes on the
supply of the alcoholic liquor for human consumption.

Hence, the supply of the alcoholic liquor for human consumption will be out of the GST. Alcohol
products for human consumption would continue to be exclusively taxed by the States. Since the Bill
specifically excludes alcohol products from the ambit of GST, bringing it within GST at a future date
would require another constitutional amendment. CST on inter-state sales of alcohol would also
continue. It therefore appears that the empowerment of States to tax alcohol products is intended to
remain unaltered in the near future.

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b) TAX ON TOBACCO PRODUCTS


Tobacco and tobacco products would be subjected to GST. However, it can be subjected to a separate
excise duty by the Centre.

c) TAX ON PETROLEUM CRUDE/ HIGH SPEED DIESEL/ MOTOR SPIRIT/


NATURAL GAS/ AVIATION TURBINE FUEL
The States would continue as per the current laws to impose Value Added Tax (VAT) on Petroleum
Crude/ High Speed Diesel/ Motor Spirit/ Natural Gas/ Aviation Turbine Fuel on intra-state sales while
inter-state sales would continue to attract Central Sales Tax (CST). These products would be
transitioned into the GST regime from a future date to be notified by the GST Council. It is currently
unclear from the schematics of the Bill whether States would fully discontinue collecting VAT/ CST
on these products from this notified date, or whether the transition would be gradual. The Bill
however also states that these products can be subjected to an excise duty imposed by the Centre; this
levy would be imposed now and even after GST comes into force. Such duty can be in addition to the
applicable VAT or GST imposed.

d) TAX ON NEWSPAPERS AND ADVERTISEMENT THEREIN

GST would be capable of being levied on the sale of newspapers and advertisements therein. This
would give the governments the access to substantial incremental revenues since this industry has
historically been tax free in its entirety.

5. TAXES WHICH ARE NOT TO BE SUBSUMED


GST may not subsume the following taxes within its ambit:

 Basic Customs Duty: These are protective duties levied at the time of Import of goods into India.
 Exports Duty: This duty is imposed at the time of export of certain goods which are not available
in India in abundance.
 Road & Passenger Tax: These are in the nature of fees and not in the nature of taxes on goods
and services.
 Toll Tax: These are in the nature of user fees and not in the nature of taxes on goods and services.
 Property Tax
 Stamp Duty
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 Electricity Duty

GOODS AND SERVICE TAX RATES IN INDIA


The Goods and Services Tax (GST) is currently categorized into five slab rates 0%, 5%, 12%, 18%
and 28% for goods and services. When the GST rates were announced by the GST Council, there
were considerable discussions hitting around the country to understand the applicability across the
various industries, businesses, and sectors.

This structure has drawn quite lot criticisms as well from a long time as it is not implying to its motto
– one nation one tax. Currently, these slab rates have been introduced with an exception of gold and
rough diamonds which are charged different rates.

To clarify such queries, the Finance Minister explained that these five slab rates have been created
considering the poor masses of India. Even the single rate of 15% would have generated an equal
amount of revenue to the Central and state governments, however, this would have increased the
prices of basic goods which will be unaffordable for the common poor people of India. Since GST is
more regressive and based on consumption, a single rate would have concluded that the rich and poor
pay the same amount of taxes. This would create inequalities of wealth issues in India.

Apart from the five slab rates, certain basic goods and services are categorized as 0% tax under
GST regime. These items include the following:

GST Rate 0%

Goods:

Fresh meat, fish, eggs, chicken, milk, curd, buttermilk, natural honey, jute, fresh fruits and vegetables,
flour, besan, bread, Prasad, bindi, salt, kajal, sindoor, newspapers, printed books, judicial papers,
stamps, bangles, jaggery, bones and horn-cores, handloom, bone meal, bone grist, children’s picture
books and drawing books, human hair, cereal grains hulled, unpacked paneer, lassi.

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Services:

Hotels and accommodation services that are below of Rs 1000 tariff value, grandfathering services,
will come under 0% tax bracket.

GST Rate 5%

Goods:

Items such as fish fillets, packaged food products, milk cream, skimmed milk powder, paneer of
branded companies, frozen vegetable packets, coffee (except instant), roasted coffee beans, tea,
cashew nuts, cashew nuts with shell, spices of branded companies, pizza bread, sabudana, kerosene,
coal, stent, medicines (lifesaving medicines), biogas, insulin, life boats, rusk, apparels below Rs 1000,
footwears below Rs 500, raisins, snow and ice, kites, agarbattis, postage stamps, revenue stamps, first
day covers, stamp postmarks, domestic LPG, edible oils, coir mats, floor covering, matting, Indian
sweets.

Services:

Transport services like railways and airways, small restaurants as their main input used in the
restaurants are petroleum which is currently outside the purview of GST regime.

GST Rate 12%

Goods:

Products such as frozen meat products, ghee, cheese, butter, namkeen products, dry fruits in packages,
animal fat, fruit juice packs, sausages, Bhutia, ayurvedic medicines, tooth powder, coloring books
and picture books (except children), agarbattis, cell phones, ketchup & other sauces, umbrella, sewing
machines, exercise books, notebooks, spoons, forks, apparels which are priced above Rs 1000, fish
knives, cake servers, skimmers, ladles, spectacles, corrective, playing cards, board games, carrom
board, all types of diagnostic kits and reagents.

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Services:

Air services for business class tickets, state-run lotteries, hotels that provide Non AC rooms, work
contracts, fertilizers fall under the bracket of 12% tax rate of GST regime.

GST Rate 18%

Goods:

Most items fall under this category. This includes footwears costing more than Rs 500, intangible
products such as trademarks, goodwill, software copyrights, food items such as biscuits (all types),
cakes, pastries, cornflakes, pasta, flavored sugar preserved vegetables (not frozen), sauces, jams, ice-
creams, instant food mix products, soup packets, curry paste, mixed condiments, mineral water,
mayonnaise, mixed salad dressings, mixed seasonings. Cosmetic products such as kajal pencil sticks,
tissues, tampons. Stationery products such as envelopes, notebooks, aluminium foil, weighing
machinery (except electrical or electronic weighing machinery), printers (except the large
multifunction printers), CCTV camera & equipment, optical fibre, bamboo furniture, electrical
transformer, swimming pools, paddling pools.

Services:

Hotels and accommodation services which provide AC rooms and liquor. The room tariff may vary
from Rs 2,500 to Rs 7,500, restaurants inside five-star hotels, telecommunication services,
Information Technology services, branded clothes, financial services provided fall under the bracket
of 18% tax rate of GST regime.

GST Rate 28%

Goods:

The last slab rate is 28%. The luxury items, liquor, and tobacco related products mainly fall under
this bracket. The following items will be taxed under this bracket:

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Chewing gums, Bidis, molasses, waffles and wafers coated with chocolate, paint, aerated drinks, pan
masalas, deodorants, washing machines, shaving creams, after shave, hair shampoos, hair dye,
wallpapers, sunscreen lotions, water heaters, ceramic tiles, ATM machines, vending machines,
shavers, hair clippers, automobiles including high-end motorcycles (including cess), vacuum
cleaners, private aircraft owned for personal use, chocolate which do not contain cocoa.

Services:

Private run lotteries which are authorized by the states, hotels and accommodation services provided
with tariff rates greater than Rs 7,500, 5-star hotel restaurants, cinema theaters, race club betting and
gambling will fall under the bucket of 28% GST rate.

IMPACT OF GOODS AND SERVICES TAX

GST IMPACT ON AUTOMOBILE


 Positive impact
GST eases logistics hurdles, reduces time at check-posts, and subsumes local taxes. With fleet
productivity increasing, operators may not feel the need to expand mid-term. Auto could slightly be
a mixed bag as the impost will vary across categories. With the standardization of GST for
automobiles at 28%, two-wheelers and small and medium cars may face a higher impost. “While this
may be slightly negative for players like Bajaj Auto, Hero MotoCorp, Maruti, etc, we believe that
this will be passed on to consumers,” Angel Broking said. Among the commercial vehicles space,
Ashok Leyland may see higher GST.
 Negative Impact
Transfer of vehicle to other place will be liable for GST if the transfer is in the surge of inter-state
trade. GST registration number is obtained for separate dealerships and the supply transfer between
such dealerships will also be liable for GST.

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GST IMPACT ON BANKING SECTOR


 Positive Impact
Public and private banking industry is the reflection of mixed economy. After GST implementation,
increase in credit pool is witnessed due to availability of GST credits on purchase of goods. Also,
banks witness a rise in operating expenses from this.

 Negative Impact
The banking sector’s net tax rate is 14% and by the effect of GST, the rate increased from 18% to
20%. The effective tax rate for free-based services at banks raised to 18% from the 15%. This
moderately increased costs for loan processing and credit card charges. For every transaction in GST,
the bank needs to determine the place of consumption where GST will be paid.

GST IMPACT ON MANUFACTURING SECTOR


 Positive Impact
The manufacturing sector endures to gain more than losing with the GST implementation of India.
overall reduction in the cascading effect of taxes should have a positive impact on the price of
manufactured products. Read to know more about Impact of GST on Indian Manufacturing.
 Negative Impact
Concerns still arise on specific issues such as the additional 1% original tax, increased cash flow
issues and increased costs owing to exclusion of petroleum fuels from the GST realm. Although Input
Tax Credit will be available to be claimed but its realization will only occur once the final supply is
concluded. This impacts manufacturing segment due to disruptions in cash flow.

GST IMPACT ON AVIATION SECTOR


 Positive Impact
The lowering of tax rate on economy class travel is in accordance with the focus of the Ministry of
Civil Aviation to make flying affordable for the crowds. Also, under GST, airlines can claim input
tax credit on all inputs on the business class; for the economy class, they can claim input tax credit
only on input services.
 Negative Impact
The GST on the economy class air travel has been finalized at 5% and GST on business class air
travel has been announced to be 12%, which is 3% more than the existing service tax rate.

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GST IMPACT ON LOGISTICS


 Positive Impact
The priority for Layered Service Provider (LSP) has remained on tax and administration optimization,
mostly compromising on achieving higher operational efficiency through structured large warehouses
planned in centralized geographic locations that gives better connectivity. FMCGs that are currently
paying around 24-25% of tax, including excise duty, VAT, etc. will only shell out 17-19% with GST,
therefore generating lot of potential for progress and open doors for investment in the industry. The
border checkpoints reduce transport hassles and enable logistics companies to deliver goods more
efficiently and optimize delivery time. This leads to a reduction in distribution costs by 10-15%,
thereby lowering the final price of the goods.
 Negative Impact
State-border checkpoints negatively impact the overall production and logistics time. This accounts
for approximately 60% of a truck’s transit time. These sterile transit hours coupled with regulatory
impediments reduce the efficiency of Indian manufacturers compared to their international
counterparts.

GST IMPACT ON ENTERTAINMENT (5-STAR HOTELS, CASINOS, MULTIPLEXES AND


CINEMAS)
 Positive Impact
Well, the industry for sure doesn’t see a positive impact with the highest tax rate of 28%. It is being
said that this will directly hit the service provided.
 Negative Impact
With the highest tax rate slab of 28%, the sector looks the most upset and says the government has
probably categorized watching movies a ‘sin’.

GST IMPACT ON TELECOM SECTOR


 Positive Impact
The tax rate has been added as 3% on the existing which isn’t a lot of change for the sector.
 Negative Impact
The sector sees it as a bigger impact though and there is a lot of hue and cry for the increased 3%. It
is expected that the call charges and data rates will go up.

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THE CHALLENGES OF IMPLEMENTING GST IN INDIA

Take a look at some of the challenges ahead with regard to GST implementation.
 Clubbing Taxes:
The biggest challenge of GST implementation is bringing all the indirect taxes under one roof,
which is the biggest feature of GST. There has been opposition asking to including purchase tax
by a few states. Other states are reluctant about alcohol, tobacco products coming under GST.
This is due to the fact that a major chunk of state revenue is derived from these products.
 Statutory Requirements:
As the imposition of GST will be delegated to both state and central government, the constitution
has to grant powers to both through an amendment. It is seen as a difficult task as the law expects
at least two-thirds majority from the members of the parliament and that isn’t easy given the
current political scenario of the country.
 Make-shift Arrangements:
State governments are demanding compensation from the central government as they foresee a
major dent in the revenue due to CST losses. This is asked for the first 5 years after the
implementation of GST, for which the central government has agreed to 3 years. A final
conclusion is yet to be drawn.
 Framework for Tax Disputes:
There has to be a uniform legal procedure for tax disputes and litigations to avoid any confusion.
 Defining Inter-State Transactions:
With the transportation services available everywhere, the place of sale and consumption may
not be the same. This makes it difficult to go forward with revenue allocation. Hence, it becomes
important to define procedures to tackle such problems.
 Infrastructure for The Collection Process:
Proper infrastructure has to be designed to track the movement of goods and services between
states, collection and monitoring revenue, identify defaulters etc.
 Determining GST Rates:
This is a major step in ensuring the success of GST. Arriving at rates which are conducive to
both the government and public is will be a daunting task.

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DATA ANALYSIS AND INTERPRETATION


In this chapter the data relevant to the research is gathered from the respondents in the form of
structured questionnaire. The gathered data is presented in the form of tables and the charts. The data
is basically analysed using percentage method.

AGEWISE CLASSIFICTION OF THE RESPONDENTS

The data has been collected with regard to the age-wise classification of the respondents. The
collected data has been provided both through the table 4.1 and chart 4.1.

TABLE 4.1

AGEWISE CLASSIFFICATION OF THE RESPONDENTS

AGE RESPONSES PERCENTAGE


20 and Below 8 8
21-30 47 47
31-40 14 14
41 and Above 31 31
TOTAL 100 100
N = 100 Source: Survey data

CHART 4.1

AGEWISE CLASSIFFICATION OF THE RESPONDENTS

AGE

8, 8%
31, 31%
47, 47%
14, 14%

20 and Below 21-30 31-40 41 and Above

The above table and chart states that, out of 100 respondents, 47% of the respondents are of the age
group 21 to 30 years, while 31% of the respondents are of the age group 41 and above years. The
respondent who belongs to the age group between 31 to 40 years is 14%. The respondents from age
group below 20 years are 8%. Therefore, it is clear that majority of the respondents are of the age
group falling in between 21-30 years.

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GENDERWISE CLASSIFICATION OF THE RESPONDENTS

The data has been collected with regard to the gender-wise classification of the respondents. The
collected data have been provided both through the table 4.2 and chart 4.2

TABLE 4.2

GENDERWISE CLASSIFICATION OF THE RESPONDENTS

GENDER RESPONSES PERCENTAGE


Males 51 51
Females 49 49
TOTAL 100 100
N = 100 Source: Survey data.

CHART 4.2

GENDERWISE CLASSIFICATION OF THE RESPONDENTS

GENDER

49, 49% 51, 51%

Male Female

The data provided in the above table and chart depicts that, out of 100 respondents, 51% of the
respondents are male and the remaining 49% of the respondents are female. Therefore, it is clear that,
male respondents are more compared to female respondents.

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EDUCATIONAL CLASSIFICATION OF THE RESPONDENTS

The data has been collected with regard to the educational qualification of the respondents. The
collected data have been provided both through the table 4.3 and chart 4.3

TABLE 4.3

EDUCATIONAL CLASSIFICATION OF THE RESPONDENTS

QUALIFICATION RESPONSES PERCENTAGE


Post-Graduation 34 34
Graduation 34 34
PUC 4 4

SSLC 25 25
Primary 3 3

TOTAL 100 100

N = 100 Source: Survey data

CHART 4.3

EDUCATIONAL CLASSIFICATION OF THE RESPONDENTS

QUALIFICATION

3, 3%
25, 25% 34, 34%
4, 4%
34, 34%

Post-Graduation Graduation PUC SSLC Other

The above table and chart states that, out of 100 respondents, majority of them i.e., 34% of them have
Post-Graduation degree and 34% of them have completed their Graduation while only 25% of the
respondents are having SSLC and 4% of the respondents are having the qualification of PUC. Only
3% of them have below SSLC. Therefore, it is clear that, majority of the respondents have the
qualification of post-graduation and graduation.

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MARITAL STATUS OF THE RESPONDENTS

The data has been collected with regard to the marital status of the respondents. The collected data
have been provided both through table 4.4 and chart 4.4

TABLE 4.4

MARITAL STATUS OF THE RESPONDENTS

MARITAL STATUS RESPONSES PERCENTAGE


Married 48 48
Unmarried 52 52
TOTAL 100 100
N = 100 Source: Survey data

CHART 4.4

MARITAL STATUS OF THE RESPONDENTS

MARITAL STATUS

Married
Unmarried 48%
52%

Married Unmarried

The above table and chart shows that, out of 100 respondents, 52% of the respondents are unmarried
and remaining 48% of the respondents are married. Therefore, it is clear that majority of the
respondents are unmarried.

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AWARENESS AND PERCEPTION OF CONSUMERS TOWARDS GOODS AND SERVICE TAX –
A STUDY WITH REFERENCE TO CONSUMERS OF MANGALURU CITY

OCCUPATION OF THE RESPONDENTS

The data has been collected with regard to the occupation of the respondents. The collected data has
been provided both through the table 4.5 and chart 4.5

TABLE 4.5

OCCUPATION OF THE RESPONDENTS

OCCUPATION RESPONSES PERCENTAGE


Professionals 7 7
Employed 37 37
Self-employed 14 14
Student 32 32
Others 10 10
TOTAL 100 100
N = 100 Source: Survey data

CHART 4.5

OCCUPATIONWISE CLASSIFICATION OF THE RESPONDENTS

OCCUPATION

10% 7%
32% 37%

14%

Professionals Employed Self-employed Students Others

The above table and chart shows that, out of 100 respondents, 37% of them are employed and 32%
of them are students while 14% of the respondents are Self-employed, only 7% of the respondents
are Professionals. Remaining 10% of them are House Wife, Dairy Farmer, Asha Worker etc. It is
clear that majority of the respondents are employed.

Department of PG Studies in Commerce, University College, Mangalore. Page 49


AWARENESS AND PERCEPTION OF CONSUMERS TOWARDS GOODS AND SERVICE TAX –
A STUDY WITH REFERENCE TO CONSUMERS OF MANGALURU CITY

INCOMEWISE CLASSIFICATION OF THE RESPONDENTS

The data has been collected with regard to the monthly income of the respondents. The collected data
have been provided both through the table 4.6 and chart 4.6.

TABLE 4.6

INCOMEWISE CLASSIFICATION OF THE RESPONDENTS

MONTHLY INCOME RESPONSES PERCENTAGE


<Rs.25,000 P.M 70 70
Rs.25,000 – Rs.50,000 P.M 22 22
Rs.50,000 – Rs.75,000 P.M 5 5
Above Rs.75,000 P.M 3 3
TOTAL 100 100
N = 100 Source: Survey data

CHART 4.6

INCOMEWISE CLASSIFICATION OF THE RESPONDENTS

MONTHLY INCOME

3, 3%
5, 5%
22, 22%

70, 70%

Below25000 25000-50000 50000-75000 75000 above

The above table and chart shows that, out of 100 respondents, 70% of the respondents are having
income of below Rs.25000 per month and 22% of the respondents are having the income of
Rs.25000 to Rs.50000 per month. And 5% of the respondents are having the income of Rs.50000 to
Rs.75000 per month while 3% of the respondents are having above Rs.75000 per month. Therefore,
it is clear that majority of the respondents are having income of below Rs.25000 per month.

Department of PG Studies in Commerce, University College, Mangalore. Page 50


AWARENESS AND PERCEPTION OF CONSUMERS TOWARDS GOODS AND SERVICE TAX –
A STUDY WITH REFERENCE TO CONSUMERS OF MANGALURU CITY

AWARENESS OF CONSUMERS TOWARDS GST

The data has been collected with regard to the awareness of consumers towards the GST. The
collected data have been provided both through the table 4.7 and chart 4.7

TABLE 4.7

AWARENESS OF CONSUMERS TOWARDS GST

AWARENESS RESPONSES PERCENTAGE

Yes 99 99

No 0 0

TOTAL 100 100

N = 100 Source: Survey data

CHART 4.7

AWARENESS OF CONSUMERS TOWARDS GST

AWARENESS OF CONSUMERS

100 100

100
90
80
70
60
50
40
30
20
0 0
10
0
Yes No

Responses Percentage

The above table and chart shows that, out of 100 respondents, 100% of the respondents are aware
of GST. Therefore, it is clear that majority of the respondents are aware of GST.

Department of PG Studies in Commerce, University College, Mangalore. Page 51


AWARENESS AND PERCEPTION OF CONSUMERS TOWARDS GOODS AND SERVICE TAX –
A STUDY WITH REFERENCE TO CONSUMERS OF MANGALURU CITY

SOURCES OF AWARENESS ABOUT GST

The data has been collected with regard to the perception of respondents towards sources of awareness
about GST. The collected data has been provided both through the table 4.8 and chart 4.8

TABLE 4.8

SOURCES OF AWARENESS OF GST

SOURCES RESPONSES PERCENTAGE

Newspaper 49 49
Social media 36 36
Neighbors 1 1
Friends 6 6
Family 6 6
Others 2 2
TOTAL 100 100
N = 100 Source: Survey data

CHART 4.8

SOURCES OF AWARENESS OF GST

60
SOURCES 0F AWARENESS
49 49

40 36 36

20
6 6 6 6
1 1 2 2
0 Responses Percentage
Newspaper Social media Neighbours Friends Family Others

The above table and chart shows that, out of 100 respondents, 49% of the respondents are aware of
GST from newspaper while 36% of them are aware of GST from social media. 1% of them are aware
from neighbours, 6% are from friends, 6% are from family. only 2% of the them are aware of GST
from other sources like TV and subject. Therefore, it is clear that majority of the respondents are
aware of GST from newspaper.

Department of PG Studies in Commerce, University College, Mangalore. Page 52


AWARENESS AND PERCEPTION OF CONSUMERS TOWARDS GOODS AND SERVICE TAX –
A STUDY WITH REFERENCE TO CONSUMERS OF MANGALURU CITY

FREQUENCY OF PURCHASES

The data has been collected with regard to how frequently they do make purchases. The collected
data has been provided both through the table 4.9 and chart 4.9

TABLE 4.9

FREQUENCY OF PURCHASES

FREQUENCY OF RESPONSES PERCENTAGE


PURCHASES
Daily 29 29
Weekly 46 46
Monthly 20 20
Quarterly 5 5
TOTAL 100 100
N = 100 Source: Survey data

CHART 4.9

FREQUENCY OF PURCHASES

FREQUENCY OF PURCHASES

46 46
50

40
29 29
30 20 20
20
5 5
10

0
Daily Weekly Monthly Quarterly

Responses Percentage

The above table and chart shows that, out of 100 respondents, 46% of the respondents do purchases
weekly, while 29% of them making purchases daily, 20% of them do purchases monthly and 5% of
them making purchases quarterly. Therefore, it is clear that majority of the respondents do purchases
weekly.

Department of PG Studies in Commerce, University College, Mangalore. Page 53


AWARENESS AND PERCEPTION OF CONSUMERS TOWARDS GOODS AND SERVICE TAX –
A STUDY WITH REFERENCE TO CONSUMERS OF MANGALURU CITY

RESPONSES TOWARDS PURCHASE OF MAJOR GOODS AND SERVICES

The data has been collected with regard to the purchase of major goods and services by consumers.
The collected data has been provided both through the table 4.10 and chart 4.10

TABLE 4.10

PURCHASE OF MAJOR GOODS AND SERVICES

MAJOR GOODS AND RESPONSES PERCENTAGE


SERVICES
Luxury goods 0 0
Necessary goods 97 97
Entertainment 3 3
TOTAL 100 100
N = 100 Source: Survey data

CHART 4.10

PURCHASE OF MAJOR GOODS AND SERVICES

MAJOR GOODS AND SERVICES

97 97
100

80

60

40

20 0 0 3 3

0
Luxury goods Necessary goods Entertainmnet

Responses Percentage

The above table and chart shows that, out of 100 respondents, 97% of the respondents are purchasing
necessary goods, 3% of them are purchasing entertainment. None of them are purchasing luxury
goods. Therefore, it is clear that majority of the respondents are purchasing necessary goods.

Department of PG Studies in Commerce, University College, Mangalore. Page 54


AWARENESS AND PERCEPTION OF CONSUMERS TOWARDS GOODS AND SERVICE TAX –
A STUDY WITH REFERENCE TO CONSUMERS OF MANGALURU CITY

RESPONSES TOWARDS ORDER FOR THE RECEIPTS OR INVOICES ON EVERY


PURCHASE

The data has been collected with regard to order for the receipts or invoices on every purchase by
consumers. The collected data has been provided both through the table 4.11 and chart 4.11

TABLE 4.11

ORDER FOR THE RECEIPTS OR INVOICES ON EVERY PURCHASE

RECEIPTS OR RESPONSES PERCENTAGE


INVOICES
Yes 63 63
No 37 37
TOTAL 100 100
N = 100 Source: Survey data

CAHRT 4.11

ORDER FOR THE RECEIPTS OR INVOICES ON EVERY PURCHASE

ORDER FOR THE RECEIPTS OR INVOICES

63 63
70
60
50 37 37
40
30
20
10
0
Yes No

Responses Percenatge

The above table and chart shows that, out of 100 respondents, 63% of the respondents are ordering
for the receipts or invoices on every purchase and 37% of them do not order the receipts or invoices.
Therefore, it is clear that majority of the respondents are ordering for the receipts or invoices on every
purchase.

Department of PG Studies in Commerce, University College, Mangalore. Page 55


AWARENESS AND PERCEPTION OF CONSUMERS TOWARDS GOODS AND SERVICE TAX –
A STUDY WITH REFERENCE TO CONSUMERS OF MANGALURU CITY

RESPONSE TOWARDS VERIFICATION OF DEALER UNDER COMPOSITE SYSTEM


OR REGULAR SYSTEM

The data has been collected with regard to whether the dealer is under composite system or regular
system. The collected data has been provided both through the table 4.12 and chart 4.12

TABLE 4.12

VERIFICATION OF DEALER UNDER COMPOSITE SYSTEM OR REGULAR SYSTEM

VERIFICATION OF RESPONSES PERCENTAGE


DEALER
Yes 29 29
No 71 71
TOTAL 100 100
N = 100 Source: Survey data

CHART 4.12

VERIFICATION OF DEALER UNDER COMPOSITE SYSTEM OR REGULAR SYSTEM

VERIFICATION OF DEALER

71 71
80
60
29 29
40
20
0
Yes No

Responses Percentage

The above table and chart shows that, out of 100 respondents, 71% of the respondents told that they
do not verify whether the dealer comes under composite system or regular system and only 29% of
them do verify. Therefore, it is clear that majority of the respondents do not verify whether the dealer
comes under composite system or regular system.

Department of PG Studies in Commerce, University College, Mangalore. Page 56


AWARENESS AND PERCEPTION OF CONSUMERS TOWARDS GOODS AND SERVICE TAX –
A STUDY WITH REFERENCE TO CONSUMERS OF MANGALURU CITY

RESPONSE TOWARDS KNOWLEDGE OF RATES OF GST

In India, the GST rate slabs are 5%, 12%, 18% and 28%. The data has been collected with regard to
the knowledge of consumers towards rates of GST. The collected data has been provided both through
the table 4.12 and chart 4.12

TABLE 4.13

KNOWLEDGE OF RATES OF GST

KNOWLEDGE OF RESPONSES PERCENTAGE


RATES OF GST
Yes 53 53
No 47 47
TOTAL 100 100
N = 100 Source: Survey data

CHART 4.13

KNOWLEDGE OF RATES OF GST

RATES OF GST

53 53
54

52

50
47 47
48

46

44
Yes No

Responses Percentage

The above table and chart shows that, out of 100 respondents, 53% of the respondents told that they
possess the knowledge of rates that are classified by GST council for different goods and services
and 47% of them do not possess the knowledge of rates of GST. Therefore, it is understood that
majority of the respondents possess the knowledge of rates.

Department of PG Studies in Commerce, University College, Mangalore. Page 57


AWARENESS AND PERCEPTION OF CONSUMERS TOWARDS GOODS AND SERVICE TAX –
A STUDY WITH REFERENCE TO CONSUMERS OF MANGALURU CITY

RESPONSE TOWARDS VERIFICATION OF GSTIN IN EVERY INVOICES

The data has been collected with regard to the verification of GSTIN by the consumers. The collected
data has been provided both through the table 4.14 and chart 4.14

TABLE 4.14

VERIFICATION OF GSTIN

VERIFICATION OF RESPONSES PERCENTAGE


GSTIN
Yes 25 25
No 75 75
TOTAL 100 100
N = 100 Source: Survey data

TABLE 4.14

VERIFICATION OF GSTIN

VERIFICATION OF GSTIN

75 75
80
70
60
50
40 25 25
30
20
10
0
Yes No

Responses Percentage

The above table and chart states that, out of 100 respondents, 75% of the respondents told that they
do not verify the GSTIN in every invoice and only 25% of them verify the GSTIN in every invoices.
Therefore, it is clear that majority of the respondents do not verify the GSTIN in every purchase.

Department of PG Studies in Commerce, University College, Mangalore. Page 58


AWARENESS AND PERCEPTION OF CONSUMERS TOWARDS GOODS AND SERVICE TAX –
A STUDY WITH REFERENCE TO CONSUMERS OF MANGALURU CITY

RESPONSE TOWARDS VISIT OF GST PORTAL

The data has been collected with regard to the visit of GST portal by the consumers. The collected
data has been provided both through the table 4.15 and chart 4.15

TABLE 4.15

VISIT OF GST PORTAL

VISIT OF GST PORTAL RESPONSES PERCENTAGE

Yes 16 16
No 84 84
TOTAL 100 100
N = 100 Source: Survey data

CHART 4.15

VISIT OF GST PORTAL

VISIT OF GST PORTAL

84 84
90
80
70
60
50
40
30 16 16
20
10
0
Yes No

Responses Percentage

The above table and chart shows that, out of 100 respondents, 84% of the respondents told that they
have not visited the GST portal and only 16% of them visited the GST portal. Therefore, it is clear
that majority of the respondents have not visited the GST portal.

Department of PG Studies in Commerce, University College, Mangalore. Page 59


AWARENESS AND PERCEPTION OF CONSUMERS TOWARDS GOODS AND SERVICE TAX –
A STUDY WITH REFERENCE TO CONSUMERS OF MANGALURU CITY

RESPONSE TOWARDS SOURCES OF GETTING INFORMATION ABOUT CHANGES


IN GST RATES

The data has been collected with regard to the sources of getting information about changes in GST
rates by the consumers. The collected data has been provided both through the table 4.16 and chart
4.16

TABLE 4.16

SOURCES OF INFORMATION ABOUT CHANGES IN GST RATES

SOURCES OF CHANGES RESPONSES PERCENTAGE


IN GST RATES
Social media 34 34
Friends 7 7
Newspaper 47 47
Family 11 11
Others 1 1
TOTAL 100 100
N = 100 Source: Survey data

CHART 4.16

SOURCES OF INFORMATION ABOUT CHANGES IN GST RATES

SOURCES OF INFORMATION

34 34 47 47
50 7 7 11 11 1 1
0
Social media Friends Newspaper Family others

Responses Percentage

The above table and chart shows that, out of 100 respondents, 47% of the respondents are getting
information about changes in GST rates through newspaper, 34% of them through social media, 11%
of them through family, 7% of them from friends. And only 1% of them are getting information
through another source such as subject. Therefore, it is clear that majority of the respondents are
getting information through newspaper.

Department of PG Studies in Commerce, University College, Mangalore. Page 60


AWARENESS AND PERCEPTION OF CONSUMERS TOWARDS GOODS AND SERVICE TAX –
A STUDY WITH REFERENCE TO CONSUMERS OF MANGALURU CITY

RESPONSE TOWARDS AWARENESS OF CONSUMER PROTECTION ACT

The data has been collected with regard to the awareness of consumers about Consumer Protection
Act. The collected data has been provided both through the table 4.17 and chart 4.17

TABLE 4.17

AWARENESS OF CONSUMER PROTECTION ACT

AWARENESS OF RESPONSES PERCENTAGE


COPRA
Yes 76 76
No 24 24
TOTAL 100 100
N = 100 Source: Survey data

CHART 4.17

AWARENESS OF CONSUMER PROTECTION ACT

AWARENESS OF COPRA

76 76
80

60

40 24 24

20

0
Yes No

Responses Percentage

According to the collected data regarding the respondent’s awareness towards the Consumer
Protection Act, out of 100 respondents, 76% of them are aware of consumer protection act and
remaining 24% are not aware of that. Therefore, it is clear that majority of the respondents are aware
of consumer protection act.

Department of PG Studies in Commerce, University College, Mangalore. Page 61


AWARENESS AND PERCEPTION OF CONSUMERS TOWARDS GOODS AND SERVICE TAX –
A STUDY WITH REFERENCE TO CONSUMERS OF MANGALURU CITY

AWARENESS TOWARDS THE GST PROGRAMMES

The data has been collected with regard to the awareness of respondents towards programmes of GST.
The collected data has been provided both through the table 4.18 and chart 4.18

TABLE 4.18

AWARENESS TOWARDS GST PROGRAMMES

AWARENESS RESPONSES PERCENTAGE

Yes 22 22
No 78 78
TOTAL 100 100
N = 100 Source: Survey data

Here total responses are not equal to 100

CHART 4.18

AWARENESS TOWARDS GST PROGRAMMES

AWARENESS

78 78
80
70
60
50
40
22 22
30
20
10
0
Yes No

Responses Percentage

According to the collected data regarding the respondent’s awareness towards the GST programmes,
out of 100 respondents, 78% of them have not attended any GST related programmes and remaining
22% of them have attended GST related programmes. Therefore, it is understood that majority of the
respondents have not attended GST programmes.

Department of PG Studies in Commerce, University College, Mangalore. Page 62


AWARENESS AND PERCEPTION OF CONSUMERS TOWARDS GOODS AND SERVICE TAX –
A STUDY WITH REFERENCE TO CONSUMERS OF MANGALURU CITY

IF YES

ATTENDED GST PROGRAMMES

The data has been collected with regard to the various GST related programmes attended by the
consumers. The collected data has been provided both through the table 4.18(a) and chart 4.18(a)

TABLE 4.18(a)

ATTENDED GST PROGRAMMES

GST PROGRAMMES RESPONSES PERCENTAGE

Seminars 15 31.91
Workshops 14 29.79
Awareness programs 10 21.28
Conference 8 17.02
TOTAL 47 100
N = 47 MRR=47/22=2.14 Source: Survey data

Here total responses are not equal to 22

CHART 4.18(a)

ATTENDED GST PROGRAMMES

GST PROGRAMMES

31.91 29.79
40 21.28
15 14 17.02
20 10 8

0
Seminars Workshops Awareness Conference
programs

Responses Percentage

The above table and chart shows that, out of 22 respondents, 31.91% of them are attended seminars,
29.79% of them attended workshops, 21.28% of them attended awareness programs and remaining
17.02% of them attended conference. Therefore, it is clear that majority of the respondents are
attended seminars.

Department of PG Studies in Commerce, University College, Mangalore. Page 63


AWARENESS AND PERCEPTION OF CONSUMERS TOWARDS GOODS AND SERVICE TAX –
A STUDY WITH REFERENCE TO CONSUMERS OF MANGALURU CITY

PERCEPTION TOWARDS GST WILL HELP INDIA TO BECOME A DEVELOPED


COUNTRY

The data has been collected with regard to the perception of respondents towards the GST that helps
India to become a developed country. The collected data has been provided both through the table
4.19 and chart 4.19

TABLE 4.19

GST WILL HELP INDIA TO BECOME A DEVELOPED COUNTRY

PERCEPTION RESPONSES PERCENTAGE

Yes 59 59
No 1 1
May be 40 40
TOTAL 100 100
N = 100 Source: Survey data

Chart 4.19

GST WILL HELP INDIA TO BECOME A DEVELOPED COUNTRY

PERCEPTION
59 59
60 40 40
40

20 1 1
0
Yes No May be

Responses Percentage

According to the collected data regarding the respondent’s perception towards GST will help India
to become a developed country, 59% of them told that GST will help India to become a developed
country and 1% of them told that GST will not help India. But 40% of them told that it may or may
not help India to become a developed country. Therefore, it is clear that majority of the respondents
told that GST will help India to become a developed country.

Department of PG Studies in Commerce, University College, Mangalore. Page 64


AWARENESS AND PERCEPTION OF CONSUMERS TOWARDS GOODS AND SERVICE TAX –
A STUDY WITH REFERENCE TO CONSUMERS OF MANGALURU CITY

PERCEPTION TOWARDS GST IS A FAIR TAX

The data has been collected with regard to the perception of respondents towards GST is a fair tax.
The collected data has been provided both through the table 4.20 and chart 4.20

TABLE 4.20

GST IS A FAIR TAX

PERCEPTION RESPONSES PERCENTAGE

Yes 89 89
No 11 11
TOTAL 100 100
N = 100 Source: Survey data

CHART 4.20

GST IS A FAIR TAX

GST IS A FAIR TAX

89 89
90
80
70
60
50
40
30
11 11
20
10
0
Yes No

Responses Percentage

According to the collected data of respondent’s towards GST is a fair tax, 89% of them told that GST
is a fair tax and remaining 11% of them told that GST is not a fair tax. Therefore, it is clear that
majority of the respondents told that GST is a fair tax.

Department of PG Studies in Commerce, University College, Mangalore. Page 65


AWARENESS AND PERCEPTION OF CONSUMERS TOWARDS GOODS AND SERVICE TAX –
A STUDY WITH REFERENCE TO CONSUMERS OF MANGALURU CITY

SATISFACTION WITH PRINCIPLE OF “ONE NATION, ONE TAX”

The data has been collected with regard to the satisfaction of respondents towards the principle of
“One Nation, One Tax”. The collected data has been provided both through the table 4.21 and chart
4.21

TABLE 4.21

SATISFACTION WITH PRINCIPLE OF “ONE NATION, ONE TAX”

SATISFACTION RESPONSES PERCENTAGE

Yes 93 93
No 7 7
TOTAL 100 100
N = 100 Source: Survey data

CHART 4.21

SATISFACTION WITH PRINCIPLE OF “ONE NATION, ONE TAX”

SATISFACTION

92 92.93
100
80
60
40
7 7.07
20
0
Yes No

Responses Percentage

The above table and chart shows, out of 100 respondents, 93% of the respondents are satisfied with
the principle of “One Nation, One Tax” and remaining 7% of them are not satisfied with this principle.
Therefore, it is clear that majority of the respondents are satisfied with the principle of “One Nation,
One Tax”.

Department of PG Studies in Commerce, University College, Mangalore. Page 66


AWARENESS AND PERCEPTION OF CONSUMERS TOWARDS GOODS AND SERVICE TAX –
A STUDY WITH REFERENCE TO CONSUMERS OF MANGALURU CITY

IF NO

REASON FOR DISSATISFACTION

The respondents are asked with whether they are satisfied with the principle of GST. The collected
data have been provided both through the table 4.21(a) and chart 4.21(a)

TABLE 4.21(a)

REASON FOR DISSATISFACTION

REASON RESPONSES PERCENTAGE

Increase the cost of living 1 9.09


Difficult to understand 6 54.55
Burden on the people 4 36.36
TOTAL 11 100
N = 11 MRR=11/7=1.57 Source: Survey data

Here total responses are not equal to 7

CHART 4.21(a)

REASON FOR DISSATISFACTION

REASON
54.55
60
36.36
40
20 9.09 6 4
1
0
Increase the cost Difficult to Burden on the
of living understand people

Responses Percentage

The above table and chart show that, out of 7 respondents, 54.55% of them told that it is difficult to
understand, 36.36% of them told that it is burden on the people, 9.09% of them told that it increases
the cost of living. Therefore, it is clear that majority of the respondents told that it is difficult to
understand.

Department of PG Studies in Commerce, University College, Mangalore. Page 67


AWARENESS AND PERCEPTION OF CONSUMERS TOWARDS GOODS AND SERVICE TAX –
A STUDY WITH REFERENCE TO CONSUMERS OF MANGALURU CITY

PERCEPTION TOWARDS GST IS HELPFUL IN CURBING BLACK MONEY

The data has been collected with regard to the perception of respondents towards GST is helpful in
curbing black money. The collected data has been provided both through the table 4.22 and chart 4.22

TABLE 4.22

GST IS HELPFUL IN CURBING BLACK MONEY

PERCEPTION RESPONSES PERCENTAGE

Strongly disagree 2 2
Disagree 3 3
Neutral 46 46
Agree 41 41
Strongly agree 8 8
TOTAL 100 100
N = 100 Source: Survey data

CHART 4.22

GST IS HELPFUL IN CURBING BLACK MONEY

PERCEPTION

60 46 46 41 41
40
20 3 3 8 8
2 2
0
Strongly Disagree Neutral Agree Strongly
disagree agree

Responses Percentage

The above table and chart show that, out of 100 respondents, 46% of them neutrally agreed that GST
is helpful in curbing black money, 41% of them agreed that it is helpful, 2% of them strongly
disagreed, 3% of them disagreed and remaining 8% of them strongly agreed that it is helpful in
curbing black money. Therefore, it is clear that majority of the respondents neutrally agreed that GST
is helpful in curbing black money.

Department of PG Studies in Commerce, University College, Mangalore. Page 68


AWARENESS AND PERCEPTION OF CONSUMERS TOWARDS GOODS AND SERVICE TAX –
A STUDY WITH REFERENCE TO CONSUMERS OF MANGALURU CITY

PREFERRED TAXATION SYSTEM

The data has been collected with regard to preferred taxation system of the State and Central
Government. The collected data have been provided both through the table 4.23 and chart 4.23

TABLE 4.23

PREFERRED TAXATION SYSTEM

TAXATION SYSTEM RESPONSES PERCENTAGE

Present taxation system 92 92


(GST)
Past taxation system 8 8
TOTAL 100 100
N = 100 Source: Survey data

CHART 4.23

PREFERRED TAXATION SYSTEM

TAXATION SYSTEM

92 92
100
80
60
40
8 8
20
0
Present taxation system (GST) Past taxation system

Responses Percentage

The above table and chart shows that, out of 100 respondents, 92% of the respondents prefer present
taxation system (GST) and remaining 8% of the respondents prefer past taxation system. Hence, from
the data we can say that, majority of the consumers are in support of present GST.

Department of PG Studies in Commerce, University College, Mangalore. Page 69


AWARENESS AND PERCEPTION OF CONSUMERS TOWARDS GOODS AND SERVICE TAX –
A STUDY WITH REFERENCE TO CONSUMERS OF MANGALURU CITY

SATISFACTION WITH CURRENT TAXATION SYSTEM

The data has been collected with regard to the satisfaction of respondents towards the GST. The
collected data have been provided both through the table 4.24 and chart 4.24

TABLE 4.24

SATISFACTION WITH CURRENT TAXATION SYSTEM

LEVEL OF RESPONSES PERCENTAGE


SATISFACTION
Highly dissatisfied 1 1
Dissatisfied 3 3
Neutral 30 30
Satisfied 57 57
Highly satisfied 9 9
TOTAL 100 100
N = 100 Source: Survey data

CHART 4.24

SATISFACTION WITH CURRENT TAXATION SYSTEM

SATISFACTION
57 57
60
50
40 30 30
30
20 9 9
1 1 3 3
10
0
Highly Dissatisfied Neutral Satisfied Highly
dissatisfied satisfied

Responses Percentage

The above table and chart shows that, out of 100 respondents, 57% are satisfied, 30% respondents
are neutral and only 9% of the respondents are highly satisfied with the GST. And 3% are dissatisfied
and 1% are highly dissatisfied. Hence, we can say that majority of the respondents are satisfied with
the current taxation system i.e., GST.

Department of PG Studies in Commerce, University College, Mangalore. Page 70


AWARENESS AND PERCEPTION OF CONSUMERS TOWARDS GOODS AND SERVICE TAX –
A STUDY WITH REFERENCE TO CONSUMERS OF MANGALURU CITY

FINDINGS, SUGGESTIONS AND CONCLUSION

The fourth chapter was all about data analysis and interpretations. After analysing and interpreting
the collected data and summarizing the findings of the study, this chapter deals with the result of the
study or the findings after analysing and interpreting the data. It also deals with the suggestions and
the final conclusion of the study related to “Awareness and perception of consumers towards Goods
and Services Tax – A study with reference to the consumers of Mangalore city”.

FINDINGS

 Out of 100 respondents, majority of the consumers are male (51%) and also consumers were
of the age group of 21 to 30 years that consists of 47% of the total respondents. The
educational qualification it is important to notice that most of them are the holder of post-
graduation and graduation i.e. 34% and 34% respectively. And least were found who are
below SSLC i.e. 3%.
 It is found that majority of the respondents(consumers) in Mangaluru city have monthly
income of Rs.25,000 and below which is according to 47% of the total respondents and only
3% of the respondents responded that the consumer is having the income of 75,000 and above.
 Majority (52%) of the respondents are unmarried and remaining 48% of the respondents are
married.
 Most of them (37%) are employed and 32% of them are students while only 7% of the
respondents are Professionals and 14% of the respondents are Self-employed. Remaining 10%
of them are House Wife, Dairy Farmer, Asha Worker etc.
 Majority (100%) of the respondents are aware of GST, because of sources of awareness such
as newspaper, tv, friends.
 Majority (49%) of the respondents are aware of GST from newspaper while 36% of them are
aware of GST from social media. 1% of them are aware from neighbors, 6% are from friends,
6% are from family. only 2% of the them are aware of GST from other sources like TV and
subject.
 Majority (46%) of the respondents do purchases weekly, while 29% of them making
purchases daily, 20% of them do purchases monthly and 5% of them making purchases
quarterly.

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 Majority (97%) of the respondents are purchasing necessary goods, why because necessary
goods are needed for the day to day working, 3% of them are purchasing entertainment goods.
None of them are purchasing luxury goods.
 Majority (63%) of the respondents are ordering for the receipts or invoices on every purchase
because majority of the consumers are aware of GST and 37% of them do not order the
receipts or invoices.
 Majority (71%) of the respondents told that they do not verify whether the dealer comes under
composite system or regular system because consumers are not very much aware of rules and
regulations of GST and only 29% of them do verify.
 Majority (53%) of the respondents told that they possess the knowledge of rates that are
classified by GST council for different goods and services since most of the consumers are
users of newspaper so they can get to know about rates of GST and 47% of them do not
possess the knowledge of rates of GST.
 Majority (75%) of the respondents told that they do not verify the GSTIN in every invoice
and only 25% of them verify the GSTIN in every invoice.
 Majority (84%) of the respondents told that they have not visited the GST portal since their
awareness level is less and only 16% of them visited the GST portal.
 Majority (47%) of the respondents are getting information about changes in GST rates through
newspaper, 34% of them through social media, 7% of them from friends, 11% of them through
family. And only 1% of them are getting information through other source such as subject.
 According to the collected data regarding the respondent’s awareness towards the Consumer
Protection Act, majority (76%) of them are aware of consumer protection act, consumer right
is an insight into what rights consumer holds when it comes to seller which provides the goods
and remaining 24% are not aware of that.
 According to the collected data regarding the respondent’s awareness towards the GST
programs, majority (78%) of them are attended GST related programs since GST council
conducting several GST programs and remaining 22% of them have not attended any
programs.
 Majority of them (31.91%) have attended seminars, 29.79% of them attended workshops,
21.28% of them attended awareness programs and remaining 17.02% of them attended
conference.

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AWARENESS AND PERCEPTION OF CONSUMERS TOWARDS GOODS AND SERVICE TAX –
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 Majority (59%) of them told that GST will help India to become a developed country and 1%
of them told that GST will not help India. Because GST is a tax which is levied on the supply
of goods and services and it is a single tax system. But 40% of them told that it may or may
not help India to become a developed country.
 According to the collected data of respondent’s towards GST is a fair tax, majority (89%) of
them told that GST is a fair tax because corruption is less compared to past taxation system
and remaining 11% of them told that GST is not a fair tax.
 Majority (93%) of the respondents are satisfied with the principle of “One Nation, One Tax”
and remaining 7% of them are not satisfied with this principle.
 Among the dissatisfied respondents, majority (54.55%) of them told that it is difficult to
understand, 36.36% of them told that it is burden on the people, 9.09% of them told that it
increases the cost of living.
 Majority of the respondents (46%) neutrally agreed that GST is helpful in curbing black
money, 41% of them agreed that it is helpful, 2% of them strongly disagreed, 3% of them
disagreed and remaining 8% of them strongly agreed that it is helpful in curbing black money.
 Majority (92%) of the respondents prefer present taxation system (GST) and remaining 8% of
the respondents prefer past taxation system. Hence, from the data we can say that, majority of
the consumers are in support of present GST.
 Majority of the respondents (57%) are satisfied, about 30% respondents are neutral and only
9% of the respondents are highly satisfied with the GST. And 3% are dissatisfied and 1% are
highly dissatisfied. Hence, we can say that majority of the respondents are satisfied with the
current taxation system i.e., GST.

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AWARENESS AND PERCEPTION OF CONSUMERS TOWARDS GOODS AND SERVICE TAX –
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SUGGESTIONS
 Awareness can be increase by improve communication on GST to the public.
 Although implementation of GST has completed more than two years peoples are not aware
of many things about GST, so tax payer education or public awareness campaign need to be
provided by Central Government. Public Workshops, training and various seminars on GST
must be conducted in all states by their respective State Governments.
 It is suggested that government has to make an effort to provide or add subject about basic
taxation as main subject at schools to educate students at an early age and also the teachers.
This could improve their tax knowledge, tax morale, and could change their perception
towards the tax.
 At present GST has become a bit difficult for small scale industries or local dealers even
though it has better results than the past taxation system. But eventually over years GST would
definitely be the best taxation system in India.

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AWARENESS AND PERCEPTION OF CONSUMERS TOWARDS GOODS AND SERVICE TAX –
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CONCLUSION
These findings indicate 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. Government of India need intense focus on publics’ knowledge and attitude
towards the implementation of GST. Mangalorean’s awareness towards the implementation of GST
was relatively moderate.

GST is the most logical steps towards the comprehensive indirect tax reform in our country since
independence. It brings transparency in collection of indirect taxes benefiting both the Government
and the people of India. As uniform and rational taxation system in India it leads to lesser disruptions
in the market economy and more efficient distribution of resources within the industry and also leads
to an increase in Gross Domestic Product. Goods and Service Tax is leviable on all supply of goods
and provision of services as well combination thereof. All sectors of economy whether the industry,
business including Govt. departments and service sector shall have to bear impact of Goods and
Services Tax for some time as the change is definitely never easy. So it is important to take a leaf
from global economies that have implemented GST before us, and who overcame the teething
troubles to experience the advantages of having a unified tax system and Government motive should
not be to collect more and more taxes to increase revenues but a simple uniform structure of taxation
from where all sectors can run smoothly and grow as per requirement of the economy from where
automatically tax collection can increase. Altogether we can conclude that GST plays a dynamic role
in the growth and development of our country.

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