A STUDY ON IMPACT OF IMPLEMENTATION OF

GOODS AND SERVICE TAX AMONG RETAILERS IN

WARORA CITY
Department of Commerce, Dr Ambedkar College of Arts, Commerce and Science, Chandrapur,
maharashtra, India.

Abstract: Goods and Services Tax was implemented by Government of India on 1st July 2017 and all the retailers whose annual
turnover above 40 lakhs is required to file GST return. So, it is important to study retailers’ attitude towards implementation and
return of GST. Good and services Tax Act has radically reshaped Indian economy. The reason behind the implementation was to
simplify the existing taxation system which comprise of various taxes which had created a complex taxation system. The
researcher here tried to understand the impact of GST faced by Small Scale Retailers in warora city and their efforts to get
acquainted with this new tax system. The study is survey based in which data of 50 Small Scale Retailers of warora are collected
through questionnaire. The findings obtained after analysis revealed that though GST is considered as fair tax system but require
more clarity and simplification in procedure.

Keywords: GST System, Retailers.
I. INTRODUCTION
GST stands for Goods and Service Tax. Vishwanath Pratap
Singh who was the 7th Prime Minister of India first
initiated GST act in 1986. After that in 2007, the prevailing
government suggested to deploy GST Act and the proposal
has been presented in Lok Sabha in 2011 and again the
same proposal was presented in Lok Sabha in Dec 2014.
GST Act was passed in 2015 and again Act was passed in
the Lok Sabha on 29th March 2017 After the approval of
Rajya Sabha GST act was launched from 1st July 2017 and
it was referred as 101 Amendment of Constitution. GST has
become a revolutionary change in indirect taxes after
rossing 25 years of economic amelioration.
Goods and Services Tax is an indirect tax which has
replaced many indirect taxes in India such as the excise
duty, VAT, services tax etc. Goods and Services Tax Law
in India is abroad, multi-stage, destination-based tax that is
levied on every value addition. GST is a single indirect tax
for the entire country. Under the GST regime, the tax levied
at every point of sale. In the case of intra- state sales,
Central GST and State CST are charged. All the sales
related to inter-state are chargeable to the Integrated GST
Goods & Services Tax is a comprehensive, multi- stage,
destination-based tax that will be levied on every value
addition. Goods and Service Tax (GST) implemented in
India to bring in the ‘one nation one tax’ system, but its
effect on various industries will be slightly different. The
first level of differentiation will come in depending on
whether the industry deals with manufacturing, distributing
and retailing or is providing a service.
Goods and services are divided into five different tax slabs for
collection of tax, they are 0%, 5%, 12%, 18% and 28%.The
introduction of GST is an important step in the field of
indirect tax reforms in India. By amalgamating a large number
of Central and State taxes into a single tax, GST will mitigate
the ill effects of cascading or double taxation in a major way
towards achievement of common national market.
II. Objectives:
1. To Study the effect of GST on Small Retailers.
2. To study the impact of GST on small Retailers.
3. To study the retailer’s overall attitude towards GST
implementation.
III. Hypothesis:
 H0: GST has no significant impact on Small
Retailers.
 H1: GST has significant impact on Small
Retailers.
 H0: There is no significant relationship between
the educational status and the awareness level
about GST of retailers.
 H1: There is a significant relationship between
the educational status and the awareness level
 about GST of retailers.

IV. Literature Review

 JAIPRAKASH
In his research study mentioned that the GST
at the Central and the State level are expected
to give more relief to industry, trade, agriculture
and consumers through a more comprehensive
and wider coverage of input tax set-off and
service tax set-off, subsuming of several taxes
in the GST and phasing out of GST. Responses
of industry and also of trade have been indeed
encouraging. Thus GST offers us the best is
enjoying steady growth with only mid inflation.

 Mrs. Poonam
in her study stated that the introduction of GST
would be a very significant step in the field of
indirect tax. The cascading or double taxation
effects could be reduced by combining many
central and state taxes. Consumer’s tax burden will
reduce to 25% to 30% after introduction of GST.
After introduction of GST Indian products would
become more competitive in the domestic and
international markets. This tax would instantly
encourage economic growth.

V. RESEARCH DESIGN

The present study is to analyses the impact of GST with

respect to Small Scale Retailers so research was collected
with a sample size of 50 Small Retailers of Warora city
through a structured questionnaire and the sampling
method used is Simple Random Sampling. Secondary
data is collected from government reports, journals,
books and published research papers. The study is
limited
Only warora city.
 VI. DATA ANALYST

I. Data Analysis
6.1 Demographic Profile of the Respondents

Variables Number
Age Below 30 12
30 – 40 10
40-50 20
Above 50 8
Gender Male 40
Female 10
Educational Qualification School Level 21
UG 24
PG 1
Others 4
Income Below Rs.20,000 18
20,001 - 40,000 25
Above Rs.40,000 7
Working Experience Below 1 year 3
1 - 3 years 7
3-6 years 10
6-10 years 15
Above 10 years 15
Nature of Shop Own 25
Lease 10
Rent 15
Total 50
Source: Primary Data

From the table it is clear that the age of the respondents below 30 years are 12, between 30 to 40 years are 10, 40 to 50
years are 20 and above 50 years are 8. From the respondents the maximum retailers are male and the educational
qualification of maximum respondents is Undergraduate and School education followed by Post graduate and some have
done other courses such as D.Ed. Maximum respondents i.e., 30 are doing the business since from 10 years and above and
the shop they run are owned by maximum respondents while few have taken it on rent or lease.
 6.2 Registered under GST
50

40 47

30
Registered under GST
20

10

0 3
Yes No
Source: Primary Data

From the graph it is clear that 47 Small Retailers i.e., 94% are registered under GST and only 3 i.e., 6% did not register
GST as they are new in the market and they have changed the business.

6.3 Effect of GST on Small Retailers

80%
70%
60%
Percentage

50%
40%
30%
20%
10% Tax on gifts
Increase supply Eliminate
0% Indirect taxes Reduction in and
chain cascading
are reduced complexity promotional
efficiency effect of tax
items
Yes 62% 71% 52% 62% 66%
Can’t Say 14% 11% 28% 15% 10%
No 24% 18% 20% 23% 24%
Source: Primary Data

From the above graph it is clear that the GST is going to have a positive effect on Small Retailers as maximum
respondents i.e., 62% are in opinion that the indirect taxes would be reduced, 71% respondents are in opinion that GST
can increase in supply chain efficiency, 52% of respondents are in opinion that there would be reduction in complexity,
62% respondents are in opinion that GST will eliminate cascading effect of tax and 66% respondents are in opinion that
there would be tax on gift items and promotional items.
 6.4 Impact of GST on Small Retailers

AgreeCan’t SayDisagree
90%

70% 71%
66%
52%

22%26%
20% 17%
14% 15%15% 12%
8%
2%

GST is a goodTax payment GST lowers Filing of taxGST lowers

initiationis easy the rate of returns is easythe logistic
Goods and overheads
services
Source: Primary Data

From the above graph it is clear that GST has a significant impact on Small Retailers as more than 90% of retailers are in
opinion that GST is a good initiation, 66% are in opinion that the tax payment is easy, 70% are in opinion that GST will
lower the rate of Goods and Services, 52% say that filing of tax is easy and 71% are in opinion that GST lowers the logistic
overheads. So GST has impact on Retailers towards progression of economy.

So it is clear that the alternate hypothesis is accepted i.e., GST has a significant impact on Small Retailers, but there are
few limitations like they are not so handy to technology so filing of tax returns is not easy as there is requirement of clarity
and simplification of procedure.
 Findings:
 Majority of respondents are between the age group
of 40 – 50.
 Majority of respondents are male.
 Majority of respondents have completed their
Under Graduation.
 Majority of respondents earn between
Rs.20,000 to Rs.40,000 per month
 Majority of respondents have above 6 year
experience.
 Majority of respondents have their own shop.
 94% of respondents are registered under GST.
 Maximum respondents are in opinion that the
indirect taxes would be reduced.
 Majority respondent are in opinion that GST can
increase in supply chain efficiency.
 52% of respondents are in opinion that there
would be reduction in complexity.
 62% respondents are in opinion that GST will
eliminate cascading effect of tax.
 66% respondents are in opinion that there would be
tax on gift items and promotional items.
 90% of respondent are in opinion that GST is a good
initiation.
 66% respondents are in opinion that the tax payment
is easy.
 Majority of respondents are in opinion that GST will
lower the rate of Goods and Services.
 52% of respondent say that filing of tax is easy.
 Majority of respondents are in opinion that GST
lowers the logistic overheads.
 Conclusion
In this present era of globalization there is a need for
systematic tax system and GST will not only bring
transparency but also would promote economic situation of
the country. Earlier every state had its own tax rates which
created a lot of confusion and complicated process and also
there was increase in price of the goods. By replacing the old
tax system with the new tax system will generate reduction in
complexity and reduction in prices of goods.
 SUGGESTIONS
1. Retailers and wholesalers are aware about the GST
system but they lack prominence about rules.
2. For Successful implementation of GST system, it is
necessary for the wholesalers and retailers need to
upgrade their IT framework.
3. Due to decision of government to deploy Tax bracket
which has left some wholesalers and retailers feels
discontent.
4. Initially GST has left a negative impact and also
Demonetization affected wholesaler and retailers quite
badly.
.
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