A PROJECT REPORT ON CUSTOMERS

PERCEPTION TOWARDS GST(Goods and

Services ) IN CHANDIGARH

SUBMITTED TO
PUNJAB TECHNICAL UNIVERSITY, ROPAR
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS
FOR THE DEGREE OF

Bachelor of
Commerce(PROFESSIONAL)
SUBMITTED BY
HARMANPREET KAUR
ROLL NO. 1719689
RAYAT INSITUTE OF MANAGEMENT
RAYAT GROUPS OF INSTITUTIONS
Rail Majra, Ropar
2018-2020

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 LIST OF ABBREVIATIONS
GST Goods and Services Tax.

SST Sales Tax and Services Tax.

INT Intension to GST compliance.

TLE Tax Law and Enforcement.

TK Tax Knowledge.

TSC Tax System Complexity.

CGST Central Goods and Services Tax.

SGST State Goods and Service Tax.

IGST Integrated Goods and Service Tax.

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 Introduction
1. Goods and Services Tax (GST) is an indirect tax (or consumption tax)
imposed in India on the supply of goods and services. It is a comprehensive
multistage, destination based tax. Comprehensive, because it has subsumed
almost all the indirect taxes except few. Multi-Staged as it is imposed at every
step in the production process, but is meant to be refunded to all parties in the
various stages of production other than the final consumer. And destination
based tax, as it is collected from point of consumption and not point of origin like
previous taxes.

2. Goods and services are divided into five different tax slabs for collection of
tax - 0%, 5%, 12%, 18% and 28%. However, petroleum products, alcoholic drinks,
and electricity are not taxed under GST and instead are taxed separately by the
individual state governments, as per the previous tax regime.[citation needed]
There is a special rate of 0.25% on rough precious and semi-precious stones and
3% on gold. In addition a cess of 22% or other rates on top of 28% GST applies on
few items like aerated drinks, luxury cars and tobacco products. Pre-GST, the
statutory tax rate for most goods was about 26.5%, Post-GST, most goods are
expected to be in the 18% tax range.

3. The tax came into effect from July 1, 2017 through the implementation of
One Hundred and First Amendment of the Constitution of India by the Indian
government. The tax replaced existing multiple flowing taxes levied by the central
and state governments.

4. The tax rates, rules and regulations are governed by the GST Council which
consists of the finance ministers of centre and all the states. GST is meant to
replace a slew of indirect taxes with a federated tax and is therefore expected to
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reshape the country's 2.4 trillion dollar economy, but not without criticism.[3]
Trucks' travel time in interstate movement dropped by 20%, because of no
interstate check posts.

Formation:-
5. The reform of India's indirect tax regime was started in 1986 by Vishwanath
Pratap Singh, Finance Minister in Rajiv Gandhi’s government, with the introduction of
the Modified Value Added Tax (MODVAT). Subsequently, Prime Minister P V
Narasimha Rao and his Finance Minister Manmohan Singh, initiated early discussions
on a Value Added Tax (VAT) at the state level. A single common "Goods and Services
Tax (GST)" was proposed and given a go-ahead in 1999 during a meeting between
the Prime Minister Atal Bihari Vajpayee and his economic advisory panel, which
included three former RBI governors IG Patel, Bimal Jalan and C Rangarajan. Vajpayee
set up a committee headed by the Finance Minister of West Bengal, Asim Dasgupta to
design a GST model.

6. The Ravi Dasgupta committee which was also tasked with putting in place the
back-end technology and logistics (later came to be known as the GST Network, or
GSTN, in 2015). It later came out for rolling out a uniform taxation regime in the country.
In 2002, the Vajpayee government formed a task force under Vijay Kelkar to
recommend tax reforms. In 2005, the Kelkar committee recommended rolling out GST
as suggested by the 12th Finance Commission.[6]

7. After the defeat of the BJP-led NDA government in the 2004 Lok Sabha
election and the election of a Congress-led UPA government, the new Finance
Minister P Chidambaram in February 2006 continued work on the same and proposed a
GST rollout by 1 April 2010. However, in 2011, with the Trinamool
Congress routing CPI(M) out of power in West Bengal, Asim Dasgupta resigned as the
head of the GST committee. Dasgupta admitted in an interview that 80% of the task had
been done.

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8. In the 2014 Lok Sabha election, the Bharatiya Janata Party-led NDA government
was elected into power. With the consequential dissolution of the 15th Lok Sabha, the
GST Bill – approved by the standing committee for reintroduction – lapsed. Seven
months after the formation of the then Modi government, the new Finance Minister Arun
Jaitley introduced the GST Bill in the Lok Sabha, where the BJP had a majority. In
February 2015, Jaitley set another deadline of 1 April 2017 to implement GST. In May
2016, the Lok Sabha passed the Constitution Amendment Bill, paving way for GST.
However, the Opposition, led by the Congress, demanded that the GST Bill be again
sent back for review to the Select Committee of the Rajya Sabha due to disagreements
on several statements in the Bill relating to taxation. Finally in August 2016, the
Amendment Bill was passed. Over the next 15 to 20 days, 18 states ratified the
Constitution amendment Bill and the President Pranab Mukherjee gave his assent to it.

9. A 21-member selected committee was formed to look into the proposed GST
laws. After GST Council approved the Central Goods and Services Tax Bill 2017 (The
CGST Bill), the Integrated Goods and Services Tax Bill 2017 (The IGST Bill), the Union
Territory Goods and Services Tax Bill 2017 (The UTGST Bill), the Goods and Services
Tax (Compensation to the States) Bill 2017 (The Compensation Bill), these Bills were
passed by the Lok Sabha on 29 March 2017. The Rajya Sabha passed these Bills on 6
April 2017 and were then enacted as Acts on 12 April 2017. Thereafter, State
Legislatures of different States have passed respective State Goods and Services Tax
Bills. After the enactment of various GST laws, Goods and Services Tax was launched
all over India with effect from 1 July 2017. The Jammu and Kashmir state legislature
passed its GST act on 7 July 2017, thereby ensuring that the entire nation is brought
under an unified indirect taxation system. There was to be no GST on the sale and
purchase of securities. That continues to be governed by Securities Transaction
Tax (STT).

Launch:-
10. The GST was launched at midnight on 1 July 2017 by the President of India, and
the Government of India. The launch was marked by a historic midnight (30 June – 1
July) session of both the houses of parliament convened at the Central Hall of the
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Parliament. Though the session was attended by high-profile guests from the business
and the entertainment industry including Ratan Tata, it was boycotted by the opposition
due to the predicted problems that it was bound to lead for the middle and lower class
Indians.[12][13] It is one of the few midnight sessions that have been held by the
parliament - the others being the declaration of India's independence on 15 August
1947, and the silver and golden jubilees of that occasion.[13] After its launch, the GST
rates have been modified multiple times, the latest being on 22 December 2018, where
a panel of federal and state finance ministers decided to revise GST rates on 28 goods
and 53 services.[14]

Members of the Congress boycotted the GST launch altogether.[15] They were joined by
members of the Trinamool Congress, Communist Parties of India and the DMK. The
parties reported that they found virtually no difference between the GST and the existing
taxation system, claiming that the government was trying to merely rebrand the current
taxation system.[citation needed] They also argued that the GST would increase existing
rates on common daily goods while reducing rates on luxury items, and affect many
Indians adversely, especially the middle, lower middle and poorer income groups.

GST Council:-
GST Council is the governing body of GST having 33 members. It is chaired by the
Union Finance Minister. GST Council is an apex member committee to modify,
reconcile or to procure any law or regulation based on the context of goods and
services tax in India. The council is headed by the union finance minister Nirmala
Sitharaman assisted with the finance minister of all the states of India. The GST council
is responsible for any revision or enactment of rule or any rate changes of the goods
and services in India.

Goods and Services Tax Network (GSTN) :-

The GSTN software is developed by Infosys Technologies and the Information
Technology network that provides the computing resources is maintained by the NIC.
"Goods and Services Tax" Network (GSTN) is a nonprofit organisation formed for
creating a sophisticated network, accessible to stakeholders, government and taxpayers
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to access information from a single source (portal). The portal is accessible to the Tax
authorities for tracking down every transaction, while taxpayers have the ability of
connect for their tax returns.

The GSTN's authorised capital is ₹10 crore (US$1.4 million) in which initially the Central
Government held 24.5 percent of shares while the state government held 24.5 percent.
The remaining 51 percent were held by non-Government financial
institutions, HDFC and HDFC Bank hold 20%, ICICI Bank holds 10%, NSE Strategic
Investment holds 10% and LIC Housing Finance holds 11% .

However, later it was made a wholly owned government company having equal shares
of state and central government..

Criticism:-
Technicalities of GST implementation in India have been criticized by global financial
institutions, sections of Indian media and opposition political parties in India. World
Bank's 2018 version of India Development Update described India's version of GST as
too complex, noticing various flaws compared to GST systems prevalent in other
countries; most significantly, the second highest tax rate among a sample of 115
countries at 28%.[40][40]

GST's implementation in India has been further criticized by Indian businessmen for
problems including tax refund delays and too much documentation and administrative
effort needed.[41] According to a partner at PwC India, when the first GST returns were
filed in August 2017, the system crashed under the weight of filings.[41]

The opposition Congress party has consistently been among the most vocal opponents
of GST implementation in India with party President, and leader of the opposition, Rahul
Gandhi, slamming BJP for allegedly "destroying small businessmen and industries" in
the country.[42] He went on to pejoratively dub GST as "Gabbar Singh Tax" after an ill-
famed, fictional dacoit in Bollywood films.[42] Blaming the implementation of gst as a
"way of removing money from the pockets of the poor", Rahul has lamented it as a "big
failure"[43] while declaring that if Congress Party is elected to power, it will implement a

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single slab GST instead of different slabs. [44] In the run-up to the elections in various
states of India, Rahul has intensified his "Gabbar Singh" jibes on Modi government.

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 Objective of study
Objective of GST 2018:-
The Goods and Services Tax which is being implemented from 1st July, 2017 is proposed
to be a unified tax for the entire nation. The intended objective of GST 2017 is to replace
a lot of other indirect and direct taxes like the VAT, service tax, luxury tax etc. GST is
aimed at being comprehensive with most of the goods and services included in the GST
bill but alcohol and petrol exempted. GST rate is proposed to be 27% which is far higher
than the global standard of 16.4% for similar taxes. Our finance minister, Mr. Arun
Jaitley on several occasions has mentioned that the rate is way too high, whereas some
of the states want the rate to be still higher. In this article, we will look at the primary
objectives of GST 2017 bill.

GST objectives:-
1. Ensuring that the cascading effect of tax on tax will be eliminated.
2. Improving the competitiveness of the original goods and services, thereby
improving the GDP rate too.
3. Ensuring the availability of input credit across the value chain.
4. Reducing the complications in tax administration and compliance.
5. Making a unified law involving all the tax bases, laws and administration
procedures across the country.
6. Decreasing the unhealthy competition among the states due to taxes and
revenues.
7. Reducing the tax slab rates to avoid further clarification issues.

With all of these being very significant objectives of GST, it is still facing a lot of
implementation issues. Some of them are:

1. Complete lack of adaptation mechanisms and trained staff.

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 2. In some cases, the double registration might annoy people. Also, these
registrations result in increase compliances and cost.
3. Unclear estimate of the exact impact of GST.
4. No clear mechanisms to control tax evasion.
5. To Analysis Customers perception regarding Goods and Services Tax
(GST).To Asses Customers view regarding important of GST in
Chandigarh. To find out the perception and their on new implemented
taxation system.

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Research methodology
Research is a logical and systematic search for new and useful information on
a particular topic. Research methodology is a systematic way to solve a
problem. It is a science of studying how research is to be carried out.
Essentially the procedure by which researchers go about the work of
describing , explaining and proceeding phenomenon are called Research
methodology.
About my Research Problem:
The Present research is exploratory in nature .Since GST is a new phenomenon in
India, There are hardly any studies in this area. Specially , there is a huge gap of
empirical and behavior studies on GST in India. The study tries to find the
significance of popular perception regarding GST.

Region of research:-
The geographical area of the research is Chandigarh. Chandigarh the financial
capital of Punjab and hence most of the financial sector companies have their
headquarters in Punjab. Thus Chandigarh would be a good representative for the
purposes of drawing conclusions.

Problem Statement:
The title of project Report: A Study on Customers Perception
towards Goods and Services Tax in Chandigarh.
Manufacturer to wholesaler taxing on total bill for the product sold Y Wholesaler
to distributor taxing on total bill for the product sold Y Distributor to Retailer
taxing on the total bill for the product sold Y Retailer to Consumer itemized/total
bill taxing for the product bought.

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

Scope of the Study:

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

Research Design:
Research Design:
The research would be descriptive, empirical as well as analytical. The design
would be based on the objectives of the study and the hypothesis of the
study. Data in relation to provisions for taxing of financial services would be
collected from the existing law. The data collected through the interviews and
questionnaires will be subject to further statistical methods of analysis.

A good research design has characteristics like problem definitions , time

required for research project and estimate of expenses to be incurred the
function of research design is to ensure that the required data are collected and
they are collected accurately and economically. A research design is purely and
simply the Framework for a study that Guide the collection and analysis data .In
the project the two basic types of research design are used:

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

2. Descriptive research:
It is the design that one simply describes something such as Demographic
characteristics of people. The descriptive study is typically concerned with
determining frequent with which something occurs or how two variables vary
together. A descriptive study requires a clear specification of who, what, when
and why apex of the research. It requires formulation of more specific hypothesis
and the testing these through statically inference technique.
This is the research design of the study and then it comes to develop the research
plans , which means that what to do before going for the actual interpretation
and it is discussed below.

3. Developing a Research Plan:

The present research is exploratory in nature. Since GST is a new phenomenon in
India, there are hardly any studies in this area. Specially, there is a huge gap of
empirical and behavior studies on GST in India. The study tries to find the
significance of popular perception regarding GST.
The data for this research project has been collected through self Administration.
Due to time limitation and other constraints direct personal interview study
method is used. A structured questionnaire was farmed as it consumes less time
duration and is very important from the point of view of information, easier to
tabulate and interpret. More over respondents prefer to give direct answer.

Development of research plan has the following step:

 Sample Design
 Sample units
 Sample Size
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  Sample Techniques

Population:
Population means the whole universe of study in which the researchers does his
study/research and the population for my research is people of District Hamirpur
Town from rural and urban areas in Himachal Pradesh.

Universe of study:
For the present study purpose about the perceptions of new implemented system
of Goods and Services Tax.

Sampling:-
All assesses, accountants and tax professionals related to the financial sector are
the population. The different assesses, accountants and tax professionals selected
- around 40 in number will form the sample. This sample of 40 individuals who
will be interviewed and questionnaires will be sent to and who are located in
Mumbai are selected based on purposive sampling. A larger sample size may not
be practical since the questions to be answered are technical and hence need to
be answered by technical people in the financial services sector. Such people who
are available to provide the response are few and hence the sample size is
restricted to 40 also based on convenient sampling.

The complete study of all items in the population is known as a census inquiry.
Sample is a group of few items, which represents the population is or universe
from where it is taken. The process of selecting sample have been Multi
Stratified in nature. At the first stage 2 blocks of region/area have been selected
with the help of convenient sampling. At the 2nd Stage 25respondents have
been selected from these blocks with the help of Simple Random
Sampling.
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Tools for Data collection:-
The study involves collection of both primary and secondary data. Primary
data is being collected by using the interview schedule and structured
questionnaire. The questionnaire before actual use is put through pilot
testing. The difficulties identified in pilot testing are removed before finalizing
the final questionnaire. This questionnaire will be distributed to the selected
sample. Secondary data is collected through existing legislations, proposed
legislations on GST floated in public domain, published/unpublished reports
on the GST impact in India and globally, various websites on GST and financial
services.

Methods of reporting :-
The data collected will be reported using tables, text, bar diagrams, graphs
and pie diagrams for successful understanding.

Utility of the Research:-

A good tax system would ensure that the country’s resources are utilized in
an most advantageous manner and the country is competitive in the global
trade. In this regard, GST in India would ensure that with seamless ITC the
costs will come down for both the business people and the consumers. It
would lead to an increase in the GDP of the country and proficient use of all
factors of production. Further, financial services sector supplies average 50%
of the total demand in an economy and contributes to almost 20% of the
indirect taxes in an economy. Hence the study of the existing system with the
pros and cons, the impact of GST on the said financial sector, the difficulties
in administrative compliance in the sector and examination of views of
accountants in this relation is pertinent.
Data Collection:
Data collection is the process to gather information about the relevant topic
research, which is be Data Collection usually take place early in an improvement

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project, and its often formalized through data collection plan which often
contains plan which often contains the following activity:

Pre collection activity on goals, target data, definitions and

methods.
Collection of Data.
Presenting findings involving some form of sorting analysis.
For accomplishing the objective of study, both primary and secondary data have
been used. Data Collection through the Primary Data as well as Secondary Data
sources.
CLASSIFICATION OF DATA:
The correct information is the key to success. Data information is of two types:
Primary Data and Secondary Data. Primary data is information collected by
researchers or person himself where is secondary data is collected by other put
utilized or used by researcher. Data can be classified under two Categories
depending upon source utilized. The categories are:

PRIMARY DATA
SECONDARY DATA

1. PRIMARY DATA:
The study is largely based on the primary data which has been collected
through the structured Questionnaire Method.
 Using Primary Data Collection Tool:
Questionnaire:-
The data has been collected by administering a structured schedule of questions.
The questions are generally framed by 5 points like art scale and answers by

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respondents in form of Agree, Disagree, Neutral, Strongly Agree and Strongly
Disagree.

The Questionnaire have been prepared for study the customer perception
towards the Goods and Services in Himachal Pradesh.

For the present study purpose Questionnaires is self administrated questionnaire

and it is divided into two section-Section A and Section B.

1. Section A consists the question regarding personal information. For Example

Name, Age, Gender, Qualification, Martial Status, Occupation.

2.Section B consists the question which fulfill the research objectives.

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

 SOURCES OF COLLECTION OF SECONDARY DATA

 Internet
 Books
 Journal
 Thesis
 Newspaper
 Government Gazettes
 Magazines etc.

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

RESEARCH INTRUMENTS:
 Questionnaire

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A questionnaire is a Research instrument consisting of a series of question and
other prompts for the purpose of gathering information from respondents.
Although , they are often designed for statistical Analysis of the responses.

RESEARCH PLAN:
Data source Primary Data
Research Approach Survey
Research Instrument Questionnaire
Method of Contact Personal

TOOLS OF ANALYSIS:
Mathematical Tools:
(a.) Percentage Method.
Statistical Tools:
(a.) Arithmetic Mean
MATHEMATICAL TOOLS:
In the present research work, mathematical tools are used. In this method are
including the percentage and simple average has been used to analysis and
Interpretation or collection of data.

A Percentage frequency distribution is a display of data that specifies the

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

(a.) Percentage Method:

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

The formula used was:

P=Q/ R *100
P= Reading in Percentage

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Q=Number of respondents falling in specific category to be measured
R=Total Number of respondents or it is the Population.

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

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

X = Wx

Where

Xw= Weighted Arithmetic Mean

X= Variables Values

W= Weighted Attached to variable values.

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 DATA ANALYSIS &
INTREPRETATION
DATA ANALYSIS
The data connected various respondents have to analysis for the drawing
conclusion. So in this chapter efforts have been made to analysis and interpret
the collective data towards perception of customers of District (HP) on “Goods
and Services Tax” through questionnaire.

First of all the collected data have been presented in tabular form and there after
it is Analyzed with the help of percentage and pie chart.

A brief description of Analysis and Interpretation given below.

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

Table No.4.1

Classification of respondents on the basis of Age

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

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

Classification of respondents on the basis of Age

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 Age

Below 25
25-40
Above 40

Figure 4.1

Interpretation:
From the above table and figure it is clear that majority of respondents that is
58% are above 40 years where as 32% belongs to 25-40 years and rest of 10% are
below 25 years. Thus it can be conclude that there are majority of the
respondents are above 40%.

In Table 4.2 An attempt has been made of classify the respondents on the basis
of Qualification factor. The Qualification have been divided into three categories-
Graduation, post graduation and any other qualification. The description of this as
below

Table No.4.2

Classification of respondents on the basis of Qualification

Sr No. Qualification No of respondents Percentage

1 Graduation 19 38.00
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2 Post Graduation 11 22
3 Any other Metric, 20 40
Secondary and
PHD also)
TOTAL 50 100
Source : Data Collected from Primary Data though Questionnaire Method.

Qualification

Graduation
Post Graduation
Any other Metric

Figure 4.2

Interpretation:

From the above table and figure it is depicted that majority of respondents i.e
40% are related to high and low background that means other areas, where as
38% are graduation and 22% are post graduation. Thus it can be majority
conclude that majority of the respondents are concerned graduation and other
qualification.

In Table 4.3 An attempt has been made of classify the respondents on the basis
of Married and Unmarried status.

Table No 4.3
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 Classification of respondents on the basis of status

Sr No. Status Number of Percentage

respondents
1 Married 43 86.00
2 Unmarried 7 14.00
3 Total 50 100.00
Source: Data collected from Primary Data through Questionnaire
method

Classification of respondents on the basis of status

Married
Unmarried

Figure 4.3

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

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Table 4.4 Classify the respondents on the basis of gender. The Gender are male
and female. The description this as below:

Table 4.4

Classification of respondents on the basis of Gender

Sr No. Gender Number of Percentage

respondents
1 Male 45 90.00
2 Female 5 10.00
Total 50 100

Source: Data collected from Primary sources through Questionnaire

method

Classification of respondents on the basis of Gender

GENDER

Male
Female

Figure 4.4
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Interpretation:
From the above table and figures it is the show the majority of respondents are
Males 90% and Females are 10%. Thus it can be concluded Males and show in
high interest in business activities.

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

Table 4.5

Classification of respondents on the basis of occupation

Sr No. Occupation No. of Percentage (%)

Respondents
1 Business Mans 30 60.00%
2 Service Mans 8 16.00%
3 Professionals 5 10.00%

4 Any Customers 7 14.00%

Total 50 100.00%
Sources: Data collection from Primary Sources through the
Questionnaire method.

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Classification of Respondents on the basis of Occupation
Occupations

Business Mans
Service Mans
Professionals
Any Customers

Figure 4.5

Interpretation:
From the above table and figure it is depicted that maximum respondents are
businessman and as well as customers are 60 and 14% respectively. Whereas
Service man Professionals are 16 and 10% respectively. That it can be concluded
that majority of the respondents are doing own Business.

Table No. 4.6 An attempt has been made of classify the respondents on the basis
of their response towards the implementation of Goods and Services Tax will
result in the product or services more expensive.

Table No 4.6

Classification of respondents on the basis of response of the respondents

regarding the implementation of GST will result in the products and services to be
more expensive.

Sr No. Response No. of Percentage (%)

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 Respondents
1 Strongly Agree 7 14
2 Agree 8 16
3 Neutral 20 40
4 Disagree 13 26
5 Strongly Disagree 2 4
Total 50 100

Source: Data collected from Primary sources through questionnaire method.

Response

Strongly Agree
Agree
Neutral
Disagree
Strongly disagree

Figure No.4.6

Interpretation:
From above table and figure depict that majority of the respondents i.e.40% are
neutral and 26% are disagree with this statement. Further also 14% and 18% are
strongly agreed in respectively. Hence it is concluded that the maximum
respondents are 40% in neutral and result some may positive.
27
 Limitation of study
GST is not good news for all sectors, through. In the current system, many
products are exempted from taxation. The GST proposes to have minimal
exemption list. Currently, higher taxes are levied on almost all items.

 Stamp duty will not fall under the GST regime and will continue to be
imposed by states.

1. Increased compliance costs due to new software:

Businesses have to either update their existing accounting or ERP software to GST
–complaint one or buy a GST software so that they can keep their business going.
But both the options lead to increased cost of software purchase and training of
employees for an efficient utilization of the new billing software.

2.Increased in operational costs:

As we have already established that GST is changing the way how tax is paid,
businesses will now have to empty tax professionals to be GSR- complaint. This
will gradually increase costs for small businesses as they will have to bear the
additional cost of hiring experts.

3.GST came into effect in the middle of the financial year:

As GST was implemented on the 1st of july2017,busineses followed the old tax
structure for the first 3 months (April, May and June),and GST for the rest of the
financial year.

4.GST is on online taxation system:

Unlike earlier, businesses are now switching from pen and paper invoicing and
filling to online GST RETURN filling and making payments. This might be tough for
some smaller businesses to adapt to.

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5.SMEs will have a higher tax burden:
Smaller businesses, especially in the manufacturing sector will face difficulties
under GST. Earlier, only businesses whose turnover exceeds Rs 20lakh will have to
pay GST.

6.No reduction in Tax layers:

Some experts says that CGST (Central GST ), SGST (State GST )are nothing but new
names for Central Excise/Service Tax.VAT and CST. Hence, there is no major
reduction in the number of tax layers.

7.Expensive:
Some retail products currently have only four percent tax on them. After GST,
garments and clothes could become more expensive.

8.Products might not get any cheaper:

The new rate slabs of GST would include a lot of infant industry products which
were previously cheaper due to exemptions but would no longer be.

9.Indigenous Manufacturing:
This is definitely not in line with make in India as the small businesses in the
manufacturing sector will take a hit as the tax exemption has been reduced from
1.5Crores to 20lakhs of turnover for excise duty.

10.Real Estate:
This sector which is the second highest employer in India and contributes 9% to
India’s GDP is going to be hit as the prices are expected to rise, and with RERA
already in place, this sector stands only to lose with GST.

11. Distribution of Revenue:

Taxes find their place in the concurrent list with the Centre and State both
empowered to pay taxes and as such sharing of this revenue from Taxes .
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 FINDINGS OF THE STUDY
After analysis and Interpretation of the data these are following were emerged:

 Most of the respondents are Male.

 Majority of the respondents i.e.58% comes under the age group above 40
years and 32%^ are comes under 25-40 years.
 More than 60% respondents are related to Businessman category.
 The most of Respondents perception are very positive towards the GST and
they are aware of GST through the mass media.
 56%respondents are that option GST is very good tax reform for India and it
is the turning point of the taxation system.
 Most of the Customers perception that GST is very beneficial in Long Term
for economy of the country and also effect of GDP.
 Maximum 50% respondents are respond GST has increased the various
legal formalities.
 Majority of the peoples have perception that they still need more clarity on
GST and opened that they discuss about GST with others.
 Most of the Customers opinion that GST is fair tax. And also GST is
predominantly compliance tax.

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 SUGGESTIONS
The customers suggested that there should be a smooth, transparent and
simple transition provisions which is easily understandable.
Special focus on awareness and training of all officers, professionals and
assesses should be given on GST.
Since the public are very clear about GST, any disputes on GST introduction
should be protectively addressed by way of speedy redress.
The people are not well informed on the implementation of the GST.
Therefore, in order to ensure efficient implementation of the GST, the
government should come out with a proper guideline to the society on the
procedures for the implementation.
Gradual stages may be employed for the implementation like the agricultural
sector, then industrial and then the service sector.
The relevant authorities especially the customers department must work
closely with other departments like information, Inland Revenue other
enforcement authority ensure good implementation.
Lastly, the government must ensure a good management of the income
collected from the GST.

CONCLUSI0N:
This study highlighted the overall overview of GST in Chandigarh. The
Government to put in more effort to ensure that consumers have a clear
understanding and develop a positive perception towards GST, leading to its
acceptance. Good understanding among is customers is important as it can
generate a positive perception towards the taxation policy. The Chandigarh
customs Department could initiate and promote an extensive publicity programs
which could be help to create awareness and generate positive perception among
customers in understanding the rationale and importance of GST in India.

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 REFERENCES
1. HTTP://Wittgenstein

2. www.gstindia.com

3. comtax.up.nic.in

4. https://en.wikipedia.org

5 .www.gstn.org

6 .www.cbec.gov.in

7. www.financialexpress.com

8. www.gstcouncil.gov.in

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