Title of the Project

A STUDY ON CHALLENGES FACED BY ACCOUNTANTS

DURING GST FILING

A Project Submitted to

University of Mumbai for partial completion of the degree

of B. Com (Accounting & Finance)Under the Faculty of

Commerce

By
Esha Sachin Pawar
230

Under the Guidance of

Mrs. Revati Hunswadkar

B. K. Birla College of Arts, Science and Commerce (Empowered Autonomous), Kalyan

Academic Year 2023-2024
B. K. Birla College of Arts, Science and Commerce (Empowered Autonomous), Kalyan
Department of Management Studies

CERTIFICATE

This is to certify that Esha Sachin Pawar of B. Com (Accounting & Finance)Semester V
(2023-2024) has successfully completed the project on “A Study on Challenges Faced by
Accountants During GST Filing” under the guidance of Mrs. Revati Hunswadkar

PROJECT GUIDE:

COURSE INCHARGE:

INTERNAL EXAMINER:

EXTERNAL EXAMINER:

PRINCIPAL

Seal of the
College

Date of submission:
 Declaration by Student

I, the undersigned Mrs. Esha Sachin Pawar hereby, declare that the work

embodied in this project “A Study on Challenges Faced by Accountants

During GST Filing”, forms my own contribution to the research work carried out

under the guidance of Mrs. Revati Hunswadkar is a result of my own research work

and has not been previously submitted to any other University for any other Degree/

Diploma to this or any otherUniversity.

Wherever reference has been made to previous works of others, it has been clearly

indicated as such and included in the bibliography.

I, here by further declare that all information of this document has been obtained and

presented in accordance with academic rules and ethical conduct.

Name and Signature of the learner

 Acknowledgment

To list who all have helped me is difficult because they are so numerous and the depth
is so enormous.

I would like to acknowledge the following as being idealistic channels and fresh
dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to
do this project.

I would like to thank our Director(Education) and Principal for providing the
necessary facilities required for completion of thisproject.

I take this opportunity to thank our Course Incharge, for her moral support and
guidance.

I would also like to express my sincere gratitude towards my project guide

Mrs. Revati Hunswadkar whose guidance and care made the projectsuccessful.

I would like to thank my College Library, for having provided various reference
books and magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped
me in the completion of the project especially my Parents and Peers who supported
me throughout my project.
 TABLE OF CONTENTS

1 Introduction of the Topic . 1 --- 14

Concept of Tax Meaning and Definitions, Features . 2

Types of Taxes 5
Structure of Tax 6
Taxation System in India. 6
Concept Of GST 7
Types of Categories under GST rate 9

Types of Goods and Service Tax in India 10

GST Return filling process 14

2 Research Methodology 15-25

Introduction of research methodology 19

Problem Statement

Need of Study

Scope of Study

Objective of Study 20
Methodology used in study

Research Design 24
Sample Design

Sample Size

Data Collection 25
Meaning , Types of Data collection

Data Analysis Instrument .

3 Literature Review 26-37

C.. 0 4 Data Analysis and Interpretation . 38 --- 75
Data represents in Tables and Graphs 39
Section A 33 – 42
Respondents Information’s.

Section B 43-- 75
Data Collected from GST Perception

C...0 5 Summary 76

Findings 78

Suggestions 79

Conclusion and References 80

Questionnaire. 81-83
 LIST OF TABLES
Table No. Details of Tables Page No.
4.1 Classification of age group of the respondents. 49

4.2 Classification of qualification of the respondents. 50

4.3 Classification on the basis of their Status. 51
4.4 Classification on the basis of Gender. 52
4.5 Classification on the basis of their Occupations. 53
4.6 Classification on the basis of their perception towards statements are 54
follows

4.7 GST is a very good tax reforms for India. 55

4.8 GST has increased the various legal formalities. 56

4.9 GST has increased the tax burden on common man. 57

4.1 India is really ready for GST implementation. 58

4.11 GST has increased the tax burden on businessman. 59

4.12 Govt has imposed GST on people without any preparation. 60

4.13 GST is very difficult to understand . 61

4.14 GST will increased the inflation in the country. 62

4.15 GST is beneficial in Long Term. 63

4.16 GST will increase the Tax collection of GOVT. 64

.4.17 GST will affecting small business very badly. 65

4.18 GST is impacts the customer purchasing power in effectively. 66

4.19 GST affects the Indian capital stock market operations. 67

4.2 GST will cause an increase in the cost of living. 68

 Table No. Details of Tables Page No.

4.21 GST is a good method to replace the sales and service tax. 69

4.22 The implementation of GST will result in the products and services to be 70
more expensive.

4.23 The newly Implemented GST confused the customers. 71

4.24 The Goods and Service Tax system is a way for the government to 72
collect revenue to manage an economy.

4.25 Sentences and wording of GST guide is very lengthy and not user 73
friendly.

4.26 Classification of respondents on their response regarding statement GST 74

encourage individuals to save part of their income .
Chapter 1

Introduction

1
Concept and Introduction of Tax :
Taxation is the inherent power of the state to impose and demand contribution upon persons ,
properties , or right for the purpose of generating revenues for public purposes.

Taxes are enforced proportional contributions from persons to property levied by the law
making body of the state by virtue of its sovereignty for the support of the government and all
public needs.

Brief History of Taxation :

Tax is today an important source of revenue for the government in all the countries . More than
3000 years ago , the inhabitants of ancient Egypt and Greece used to pay tax , consumption
taxes and custom duties. Income tax was first introduced in India in 1860 by James Wilson who
become Indians First Finance Member.

In order to meet the losses sustained by the government on account of military mutiny of 1857.
In
1918 A New Income Tax bill was passed and which was further again replace in 1922. Finally,
The
Ministry of Law and Finance The Income Tax was Passed in 1961 and brought came in force
on 1st April 1962. and this is also known as the Financial Year in Current Era. I e. ( 01.04.18 –
31.03.2019)

Taxation System :

Tax system of raising money to finance Government. All governments require payment of
money taxes from people.

Government use revenues to pay soldiers and police to build dams and roads, to operate schools
and hospitals, to provide food to the poor and medical care facilities etc and also hundreds of
other purposes without taxes to fund its activities, govt could not exist. So, taxation is the most

2
important source of revenues for modern government typically according for 90% or more of
their income .

Essentials Characteristics of Tax :

1. It is an enforced Contribution.

2. It is generally payable by Money.

3. It proportionate in character , usually based on ability to pay .

4. It is levied on person and property with the jurisdiction of the state.

5. It is levied for public purpose.

6. It is commonly required to be paid a regular intervals.

Why are Taxes Levied ?

The reason for levy of taxes is that they constitute the basic source of revenue to the
government. Revenue so raised is utilized for meeting the expenses of government like defense,
provision of education , health care, Infrastructure facilities like roads , dams etc.

What are the Reasons of Taxation ?

1. Provide the basic facilities for every citizen of country.

2. Finance government multiple projects and schemes.

3. Protection of Life.

4. Responsibility of citizen to the Nation.

3
Meaning of Tax :

The word Tax came from Latin word “Taxo , Tax are '' which means To asses or estimate .

Tax can be defined in the following ways :

“ The compulsory payments made to governments associated with certain activities are called
Taxes''

4
Different Types of Taxes In India :

Prevalence of various kinds of taxes is found in India. Taxes in India can be either direct or
indirect. However, the types of taxes even depend on whether a particular tax is being levied by
the central or the state government or any other municipalities . Following are some of the
major Indian government are :

1. Direct Taxes :

It is names so because it is directly paid to the union government of India. As per a survey, the
Republic of India has witnessed a consistent rise in the collection of such taxes over a period of
past years . The visible growth in these tax collections as well as the rates of taxes reflects a
healthy tax along with better administration of taxation. To name a few of the direct taxes,
which are imposed by the Indian government are :

(I) Banking cash Transaction Tax.

(II) Corporate Tax.

(III) Capital Gains Tax.

(IV) Double Tax Avoidance treaty.

(V) Fringe Benefit Tax.

(VI) Securities Transaction Tax.

(VII) Personal Income-tax.

(VIII) Tax Incentives.

2. Indirect Taxes :

As opposed to the direct taxes, such a tax in the nation is generally levied on some specified
services or some particular goods . An indirect tax is not levied on any particular organization

5
or an individual. Almost all the activities , which fall with in the periphery of the indirect
taxation , are included in the range starting from manufacturing goods and delivery of services
to those that are meant for consumption.

Usually, the indirect taxation in the Indian Republic is a complex procedure that involves laws
and regulations, which are interconnected to each other. These taxation regulations even
include some laws that are specific to some of the states of the country. The organizations offer
services in all or most of the related fields , some of which are as follows :

(I) Anti Dumping Duty

(II) Custom Duty.

(III) Excise Duty.

(IV) Sales Tax.

(V) Service Tax .

(VI) Value Added Tax . Or VAT

3. Local Taxes In India :

The most known tax , which is levied by the local municipal jurisdictions on the entry of goods,
is known as the Entry Tax or the Doctor Tax.

4.Income Tax

Income tax in India includes all income except the agricultural income that is levied and
collected by the central government. This particular income is also shared with the states. The
income tax was incorporated in India from the year 1860.

However, after many alteration, finally with the Indian Income-tax Act , 1922, there was a
revolutionary change brought by the All India Income Tax Committee. The significant as after
this the administration of the Income Tax came under the direct control of the central
6
Government. This act got amended again in the year 1961 , and the present Income Tax regime
in India is still following the provisions of the act of 1961.

5. Consumption Tax :

Consumption Tax is applicable on the consumption of any type of goods or service. This
particular tax is based on consumption and not on income. The consumption Tax can be
regarded as a sales tax, as this tax is also regressive in nature like the other pure sales taxes.
However , there are some remedies by which the consumption tax can be made progressive in
nature.

Concept Of Goods and Service Tax (GST)

Introduction Of GST

The reference of GST was first made in the Indian Budget in 2006-07 by the Finance Minister
Mr. P. Chidambaram as a single centralized Indirect tax. The GST constitution ( 122nd )
Amendment Bill 2014 was introduced on December 19, 2014 and passed on May 06, 2015 in the
loksabha and yet to be passed in the RajyaSabha.

The bill seeks to amend the constitution to introduce Goods and Services tax vide proposed new
article 246 A. This article gives power to Legislature of every state and parliament to make laws
with respect to goods and services tax where the supplies of goods or of service take place .
Recently, Union Minister Mr. ArunJaitley said that GST could be implemented as early as
January 1, 2016.

7
Note: The word bill may be interpreted as the constitution (122nd ) Amendment Bill 2014.

Meaning Of Goods and Service Tax (GST)

Clauses 366 (12A) of the constitution Bill defines GST as “ goods and service tax” means any
tax on supply of goods, or services or both except taxes on the supply of the liquor for human
consumption. Further the clause 366 (26A) of the Bill defines Services means anything other
than Goods.

Thus it can be said that GST is a comprehensive tax levy on manufacture , sale and consumption
of goods and services at a national level . The proposed tax will be levied on all transactions
involving supply of goods and services, except those which are kept out of its preview.

Purpose of GST :

The Two Important Purposes of GST are followings:

Single Umbrella Tax Rate:

GST shall replace a number of indirect taxes being levied by union and state government.

Removing Cascading Effect :

8
GST is intended to remove Tax on Tax Effect and provides to common national market for
Goods and Services.

Types Of Categories under GST rate

The GST tax is levied based on Revenue Neutral Rate . For the purpose of imposing GST tax in
India, the goods and services are categorized in to four.

These are four categories of goods and services are follows :

Exempted Categories under GST in India :

The GST and council and other GST authorities notifies list of exempted goods. Such goods are
not fallen under payment of GST tax. The authorities may modify or amend the list time to time
by adding deleting any item if required by notification to public.

Essential Goods and Services for GST in India :

Essential Category of goods and services are charged very lower GST rate. Essential goods and
services are the goods and services for necessary items under basic importance.

Standard Goods and services for GST in India :

A major share of GST tax payers falls under this category of Standard Goods and Service. A
Standard rate is charged against the goods and services under this category.

Special Goods and Services for GST tax Levy :

Under special category of goods and services, GST rates would be high. Precious metals
including luxury items of goods and services fall under special goods and services for GST rate
implementations.

GST rates in India at a glance :

Exempted categories : 0

9
Commonly used Goods and Services : 5%

Standard Goods and Services fall under 1st Slab : 12%

Standard Goods and Services fall under 2nd Slab : 18%

Types Of Goods and Service Tax in India.

1. CGST ( Central Goods and Service Tax) :GST to be levied by the center.

2. SGST ( State Goods and Service Tax ) : The GST is to be levied by the states is
State GST (SGST) .

3. IGST ( Integrated Goods and Service Tax ) : Integrated GST will be levied by the
center and the states concurrently .

Different Taxes are Cover under GST :

1. State taxes which will be subsumed in SGST :

VAT/ Sales Tax.

10
Luxury Tax.

Entertainment Tax ( unless it is levied by local bodies)

Taxes on Lottery, betting, and gambling.

2. Central Taxes which will be subsumed in CGST :

Central Excise Duty.

Additional Excise Duty.

Service Tax.

The Excise duty levied under the medical and toilet preparation Act.

Additional Customs Duty.

Education Less.

Surcharges.

3. Taxes that will not be subsumed:

Stamp Duty.

Electricity Duty.

Other Entry taxes and Octori Entertainment Tax ( levied by local bodies.)

Basic Customs duty and safeguard duties on import of goods in to India.

Professional Tax.

11
GST Return filling process:--

12
13
14
Chapter 2

Research Methodology

15
Research Methodology

Introduction of Research Methodology :

Research is a logical and systematic search for new and useful information on a particular topic.
Research methodology is a systematic way to solve a problem. It is a science of studying how
research is to be carried out. Essentially, the procedures by which researchers go about their
work of describing , explaining and predicting phenomenon are called research methodology.

About my Research Problem :

The present research is exploratory in nature. Since GST filing is big challenge for small
industries .Specially there is a huge gap of empirical and behavior studies on GST in India. The
study tries to find key points of documentation challenges while filling gst.

Problem Statement :

The title of Project Report :----- A Study on A Study on Challenges Faced by Accountants
During GST Filing and Impact of GST in retail sector.

Ther is some problem faces by retail sector at the time of filling GST like documentation
bases and about due dates of filling returns and this research also determine the impact of GST
at retail sector .and what is the key challenges of gst filling.

Need of Study :

The Need of study have to fill the gap that has identified in the privious researchers. Under this
study We know that what is the documentation challenges of GST filling and to identify the
influences of GST in retail sector as wells filling process of gst return.

Scope of the Study :

This study is conducted to find out thewhat challenges faces by the retailer and what is the
process of GST filling in Faridabad retailers view point . The respondents selected are of mixed
16
group which will give wider difference in understanding. The scope of the study is limited only
to the faridabad area of study which cannot be justified for any other place.

Objectives of Study :

•To identify the challenges in GST filling.

•To understand them process of GST.

•To identify the influences of GST in Retail sector .

• To to study the user friendliness of website of gst.

•To identify the key challenges of GST filling.

Research Design :

A good research design has characteristics viz, problem definition , time required for research
project and estimate of expenses to be incurred the function of research design is to ensure that
the required data are collected and they are collected accurately and economically. A research
design is purely and simply the framework for a study that guide the collection and analysis
data. In this project the two basic types of research design are used :

➢ Exploratory Research :

All research projects must start with exploratory research . This is a preliminary phase and is
absolutely essential in order to obtain a proper definition of problem in hand. The major
emphasis on the discovery if ideas and insights . The exploratory study is particularly helpful in
breaking broad and vague problems in to smaller, more precise sub problem statements .

17
Exploratory research is also used to increase the familiarity with the problem under
investigation.

➢ Descriptive Research :

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

➢ 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 identify the challenges face by retailers while filling
GST.

The data for this research project has been collected through self Administration . Due to time
limitation and other constraints direct personal interview study method is used . A structured
questionnaire was farmed as it consumes less time duration and is very important from the
point of view of information , easier to tabulate and interpret . More ever respondents prefer to
give direct answer.

Development of research plan has the following steps :

➢ Sample Design

18
➢ Sample Unit

➢ Sample Size

➢ Sample Technique.

Population :-Population means the whole universe of study in which the researcher does his
study / research and the population for my research is Retailers of Faridabad rural and urban
area.

Sample Design :

The complete study of all items in the population is known as a census inquiry. Sample is a
group of few items , which represents the population is or universe from where it is taken.

The Process of Selecting sample have been Multi Stratified in Nature. At the first Stage 2
blocks of region / area have been selected with the help of convenient sampling. At the 2nd
Stage 25 respondents have been selected from these blocks with the help of Simple Random
Sampling . The size of sample is 50 respondents.

Sampling Size :

The sample size of the study was 50. The responses were captured from respondents on a 5
point Likert scale. The area of study was Faridabad area.

Sampling Method :

The sampling method was Judgment Sampling (only those respondents were chosen who had
some knowledge about GST)

Data Collection :

19
Data collection is the process to gather information about the relevant topic research , which is
be Data Collection usually takes place early in an improvement project , and is often formalized
through data collection plan which often contains the following activity :

➢ Pre collection activity on goals , target data , definitions and methods.

➢ Collection of Data.

➢ Presenting findings involving some form of sorting analysis.

For accomplishing the the objective of study, both Primary and Secondary data have been
used.Data Collection through the Primary Data as well as Secondary Data Sources.

Classification of Data :

The correct information is the key to success. Data information is of two types ; Primary Data
and Secondary Data. Primary data is information collected by researcher or person himself
where is secondary data is collected by other but utilized or used by researcher . Data can be
classified under two categories depending upon source utilized . These categories are :

➢ PRIMARY DATA

➢ SECONDARY DATA

1. Primary Data : The study is largely based on the primary data which has been collected
through the structured Questionnaire Method.

➢ Using Primary Primary Data Collection Tool :

Questionnaire:-

20
The data has been collected by administering a structured schedule of questions. The questions
are generally framed by 5 point Likert Scale and answers by respondents in form of Agree ,
Dis agree , Neutral, Strongly Agree and Strongly dis Agree.

The Questionnaire have been prepared for study to identify the documentation challenges of
filling GST in Faridabad retailers.
For the present study purpose questionnaire method is used to collect the primary data . This
questionnaire is self administrated questionnaire and it is divided into two sections – Section A
and Section B .

➢ Section A consist the questions regarding Personal Information . For Eg. Name , Age ,
Gender , Qualification , email , monthly income .

➢ Section B Consist the questions which fulfill the research objectives and it contains 15
Questions.

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
 News Papers
 Govt Gazettes
 Magazines etc.

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

21
RESEARCH INSTRUMENTS :

➢ QUESTIONNAIRE

A questionnaire is a research instrument consisting of a series of questions and other prompts

for the purpose of gathering information from respondents .Although they are often designed
for Statistical Analysis of the responses.

RESEARCH PLAN :

Data Source Primary Data

Research Approach Survey

Research Instrument Questionnaire

Method of Contact Personal

Sample Size 50 Respondents

Tools of Analysis :
 Mathematical Tools :

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  Percentage Method .

 Statistical Tools :

 Arithmetic Mean.

➢ Mathematical Tools :--

In the present research work , mathematical tools are used . In this method are including the
percentage and simple average has been used to analysis and interpretation or collection of
data .

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

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

( 1 ) Percentage Method :---

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

The formula used was :

P = Q/ R * 100

23
 P = Reading in Percentage

Q= Number of respondents falling in specific Category to be

measured R = Total Number of respondents or it is the population.

➢ Statistical Tools :--

Statistics is an imposing form of mathematics . It is the aggregate of facts affected to a marked

extent by multiplicity of causes , numerically expressed , enumerated or estimated according to
a reasonable standard of accuracy , collected in systematic manner for a predetermined purpose
and place in relation to each other. The followings tools are used in this method are given
briefly below as :

Arithmetic Mean :--

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

X = Wx/ W

Where
Xw = Weighted Arithmetic Mean
X = Variable Values
W = Weighted Attached to variable values .

Limitations of Study :

This study too has its limitations that limits the applicability and validity of study . The
limitations are below

1. The sample size was small and cannot be applied to the entire population .
24
2. GST is new launched tax system so some complications are faced by the peoples.

Hypothesis :-
Introduction
A null hypothesis is a kind of hypothesis that is used in statistics to indicate that there is no
difference between specific characteristics of a population (or a process that generates data).

A gambler may be interested, for example, in whether a game of chance is fair. If it's fair, then
for both players, the estimated earnings per match are 0. If the game is not equal, then the
predicted earnings for one player are positive and negative for the other.

The gambler collects earnings data from several repetitions of the game to test whether the game
is fair, calculates the average earnings from those results, then checks the null hypothesis that the
predicted earnings are no different from zero.

If the average sample data earnings are far enough from zero, then the gambler rejects the null
hypothesis and assumes the alternative hypothesis, namely that the estimated earnings per match
are different from zero.

If the average sample data earnings are close to zero, then the gambler does not embrace the null
hypothesis. Instead, he may conclude that the disparity between the test average and 0 can be
explained by chance alone.

How Does a Null Hypothesis Function?

The null hypothesis, also called conjecture, implies that every kind of discrepancy is due to
chance between the selected characteristics that you see in a collection of data. For example, if
the estimated gambling game earnings are truly 0, then any discrepancy between the data
average earnings and 0 is due to chance.

Analysts look at rejecting the null hypothesis as it's a clear conclusion. The alternative
hypothesis that the findings are "explainable by chance alone", is a poor assumption, because this
allows variables other than the chance to be at work.

The statistical hypotheses are evaluated using a method in four phases. The first step is for the
analyst to state the two hypotheses in such a way that only one is right. The following step is to
come up with a plan of study, detailing how the data will be analysed.
The third step is to execute the strategy and evaluate the sample data in a physical way. The
fourth and final step is to evaluate the findings and either deny the null hypothesis or assert that
the variations found can only be explained by chance.

25
Chapter 3

Literature Review

26
Literature Review
The proposed GST is likely to change the whole scenario of current indirect tax system. It is
considered as biggest tax reform since 1947. Currently, in India complicated indirect tax system is
followed with imbrication of taxes imposed by unions and states separately. GST will unify all the
indirect taxes under as umbrella and will create a smooth national market. Expert says that GST
will help the economy to grow in more efficient manner by improving the tax collection is it will
disrupt all the tax barriers between states and integrate country by single tax rate.

GST was first introduced by France in 1954 and now it is followed by 140 countries . Most of the
countries followed unified GST while some countries like Brazil , Canada follow a dual GST
system where tax imposed by central and state both. In India also dual system of GST is proposed
including CGST and SGST .

● According to Tan and Chin-Fat (2000) , Malaysian understanding regarding GST was still
low. Based on study conducted by Djawadi and Fahr (2013) pointed out that knowledge about
tax is important to increase the thrust of authorities and also the citizens.

● Tulu (2007) , indicate that other factors such as taxpayers’ attitude or morale found to be the
result of lack of awareness has found to have little impact on taxpayers’ attitude towards
taxation .

● Dr. R. Vasanthagopal (2011) , Conducted a study on , “ GST in India : A big leap in the
Indirect Taxation System” and concluded that switching to seamless GST from current
complicated indirect tax system in India will be positive step in becoming Indian economy .
Success of GST will lead to its acceptance by more than 130 countries in world and a new
preferred form of Indirect Tax System in Asia also.

● Khan M and Shadab(2012) , have mentioned that the significance of Products and Services
Tax in India and its prospects to have healthy competition in present situation and suggests that
it brings transparency in taxation and addresses global perspectives at each state of India
However, in the study made by Mukherjee, S. (2015) there are dark side of cascading effects of
tax regime. Further, study has discussed on implications with the current taxation with State

27
 and Central Government with concurrent effects of taxation. Broadly, it is classified into two
heads namely GST Design and Structure and GST Administration and Institutional. There are
several challenges faced by Government in order to resolve issues on Tax administration
between Central and State across state tax. Finally, the paper addresses the broader perspective
of proposed GST regime.

● Djawadi and Fahr( 2013) , This study is pointed out that knowledge about tax is important to
increase the thrust of authorities and citizens. The researcher used structure equation modelling
to examine the relationships between tax awareness and tax knowledge and researcher found
that tax knowledge has positive relationship with tax awareness . Hence, taxpayers will be more
aware about tax system when they have knowledge and understanding towards the tax system..

● Nitin Kumar (2014) , indicates that the implementation of GST in India would help to remove
economic disruption prevailing indirect tax system which is unbiased tax structure which is
different from geographical locations. This in fact provides opportunities to the concept of
Make in India which would attract new foreign investments.

● Jai Parkash( 2014) , in his research study mentioned that the GST at the Central and the State
level are expected to give more relief to industry, trade, agriculture and consumers through a
more comprehensive and wider coverage of input tax set-off and service tax set off, subsuming
of several taxes in the GST and phasing out of CST.

● Akanksha Khurana (2016) , In the similar line Pradeep Chaurasia et al(2016) have mentioned
that in India, the unified tax system will take the form of a Dual GST to be levied both by
centre and state government. Further, study concludes that there is improvement in Indian
economy in terms of Gross Domestic Product though GST is in nascent stage.

Aamir, (2011) The authors in this paper have studied the composition of direct and indirect taxes
in the total revenue generation for the Government in India and Pakistan over a period of time,
for period 1999-00 to 2008-09. The reason is that indirect taxes increase the inequality between
the rich and poor i.e. it is regressive in nature whereas direct taxes are more progressive. Direct

28
tax or income tax is generally a tax on the income earned. Hence more the income earned higher
is the tax paid. Thus direct taxes are considered as progressive in nature.

However, irrespective of the income levels, indirect taxes which are taxes imbedded in the costs
of goods and/or services consumed are paid by every person/entity rich or poor at the time of
consumption. Thus the tax is considered regressive. Hence a country does better to rely on
direct taxes for its revenue generation so that the progress is better.

The authors have concluded that India relies on direct taxes and Pakistan on indirect taxes for its
revenue generation. The impact of this could be that in Pakistan the inequality between rich and
poor will go on increasing and the labour class will suffer.

Aasness, (2002) The authors in this paper have studied the impact of distributional efficiency of
12 different direct and indirect taxes in the Norwegian Tax system on lowering the inequality in
income and their impact on environment with respect to Norway. The study has then ranked this
distributional efficiency for the 12 different direct and indirect taxes.

For the purpose of the study, the measure of welfare is calculated based on the average standard
of living, the equality of the standard of living and the Sen Welfare which is a combination of the
average standard of living and the equality thereof. The study has found that all tax reforms (the

29
reforms studied are also mentioned in the paper) have a positive impact on both the standard of
living and the factor of Sen-Welfare.

Ahmad, (2009) The authors in the paper have discussed the proposed GST to be introduced in
India, specifically in relation to the place of supply rules for services to be adopted, the method
to apply dual GST i.e. how would the GST operate between states and the centre, the tax rate to
be applied etc. The authors have discussed the options to introduce the dual GST in India which
could be Concurrent Dual GST, National GST or State GST.

Under the concurrent dual GST the better option was the one where GST is applied on both
goods and services. The other option explored was where the Central GST would be on goods
and services but state GST would be only on goods since state to collect GST in services is
difficult to determine. This option also recommended one single return with both CGST and
SGST details and PAN based registration.

Given the difficulties in identifying the state where SGST on services is payable, one more
variant of dual GST was where the centre collects SGST on behalf of states and then
apportioning it on some scientific basis. The national GST is combining state and centre taxes
with any one body collecting taxes and then distributing depending on some agreed basis.

The third model where the CGST and SGST would coexist mainly requires a constitutional
amendment so that states can tax services and centre can tax goods. Further the place of supply
of services needs to be robust to allow decision on which state would collect the SGST especially
in case of intangible services.

The authors then discuss the various rates available to tax, the slab structures, the exemptions etc.
The authors in the paper have also stated how financial services are treated as exempt globally.
Further in India, they are taxed and India also taxes margins in financial trades. The paper
concludes that whilst GST is much awaited all these issues need to be addressed for it to be
effective.

30
Ahmad, (2010) The author in this paper has discussed the efforts of Pakistan Government to
implement General Sales Tax in Pakistan. The author has discussed the existing indirect tax
system in Pakistan, the history of the tax system in Pakistan, the reforms recommended by the
National Taxation Reforms Commission and then highlighted the issues and benefits in the
proposed reforms.

The proposed system is expected to reduce the cascading effect of indirect taxes. The paper
suggests that to reduce the regressive effects of VAT, the VAT rates can be in two slabs, one the
standard rate for all goods and a reduced rate for the preferred goods which are considered as
essentials. The author has also discussed how for successful implementation of VAT it would
become necessary to completely revamp the entire tax administration system. Further a solution
would need to be found for the method to integrate the GST at the state level and national level.

The author also states that for the system to be effective it has been suggested that it not be
introduced in parts sector wise but be introduced at both central and state government level
across all sectors. The paper discusses in detail the services to be exempted, the method of
administration of the tax, the services to be input taxed/zero rated, definition of the base of
taxation i.e. the goods/services covered etc.

Aizenman, (2005) The authors have in the paper studied 44 countries over the period 1970-99 in
respect of the efficiency in collection of VAT. The factors on which the efficiency depends are
the political landscape i.e. political stability, greater political participation, etc. increase VAT
collections.

The other factors considered are the structural factors like the simplicity to evade tax, the
contribution of agriculture to the economy, the openness in business, the level to which the
economy is urbanized etc. The paper studies the correlation between these factors and their

31
impact on VAT collections. The main two factors determining the VAT collections seem to be
the probability of being audited and the penalties one would need to pay for having evaded tax.

Benedict, (2011) The author studies the law provisions dealing with financial services under the
Australian GST law with the intention to verify whether the provisions have been construed
correctly in light of the original purpose of the legislation and how the concerns identified may
be rectified.

The author also examines the provisions followed in Australia to tax financial services
provisions and whether the intention of the legislature in taxing the financial services is apposite.
Through the paper the author has shown how clear-cut drafting of the said provisions has
resulted in literal interpretation of the same by Courts and has therefore resulted in frustration of
the legislative intention behind the provisions.

Bhat, (2014) The author in the paper has discussed e governance of the VAT system in India
with specific reference to Goa and Kerala. India had the system of sales tax which was quite
complicated upto almost 2005. In 2005, lot of states adopted the Value Added Tax instead of
sales tax, Goa and Kerala being two of them. The main advantage of VAT was the availability
of ITC on goods purchased.

The paper is based on studying the understanding of the Vat laws as they are by the common
businesses to which it applies in Goa and Kerala. Further, currently the major compliance under
the VAT systems is undertaken electronically. This includes monthly payments, returns, refunds
etc. The paper also studies the impact and understanding of the said businesses in relation to the
E-governance efficiency of the VAT laws in Goa and Kerala.

It is observed that the move to computerise everything is welcomed by the general public since it
increases the transparency in working. However, people need to be educated on the various
laws. Ideally the government should conduct some training programmes for e-governance to

32
increase its awareness and to reduce the dependence of businesses on professionals for e-
compliances. The study shows that businesses feel that E governance is seen to reduce visits to
the tax office and smoothen compliance. Forms etc. for compliance are easily obtained online.

However, government needs to simplify the laws further to increase compliance. Another issue
identified under the study has been that even with e-governance, the speed of grant of refunds is
slow. This needs to be improved for better compliance.

Bikas, (2013) The authors have studied the VAT rate and the EU economy and also the link
between the VAT and macroeconomic indicators and their influence on the VAT rate. The
authors have tried to identify the factors impacting the VAT collections in the EU countries.

The VAT is considered very important because primarily it is one of the greatest contributors to
government revenue and help fund public spending and it impacts all consumers irrespective of
their status and income. The rate of VAT in different countries of the EU and it impact is one of
the factors studied. The data studied spans from 2004 to 2011. The authors conclude that there
is a positive relation between macroeconomic indicators like Gross Domestic Product, per capita
income and consumption, export, import etc and the VAT rate applicable.

Bird, (2009) The authors in the paper discuss the indirect tax system in Canada, where there is a
federal VAT – the GST, state level VAT administered in some provinces – HST the provincial
sales tax PST, the retail sales tax and in some cases no VAT in the states. Thus multiple taxes,
known by different names like GST, HST, PST and QST operate simultaneously in Canada.

Canada thus has a central or federal level GST and the subnational level HST/PST/RST. The
paper discusses how the system of VAT based on value addition payable on destination based
consumption is working in Canada. In some of the states the tax is administered at a federal
level whereas in some it is only provincial. In the states where the federal administration is

33
followed, the central government administers both the central GST and the provincial sales tax
called HST. The HST is then distributed to the states based on the level of consumption.

In Canada, some states have only GST and some have GST and local sales tax also known as
Provincial Sales Tax and/or retail sales tax. Further under GST the financial services are treated
as exempt services i.e. no ITC available whereas in some of the provinces for eg. in Quebec, they
are treated as zero rated and hence ITC is recoverable.

However the recovery of ITC has certain restrictions. This double system has led to quite a few
issues. The paper has discussed these issues caused by different base/treatment given to the
same products under GST and QST/PST and concluded that in a federal scenario it is advisable
that the base for taxation be same under all taxes.

Bird, (2012) The author traces the history of sales tax in Canada from inception to the current
GST, HST, QST etc. in the federal background i.e. where there is a central government charged
GST or sales tax or VAT and various state province level taxes charged like HST or PST.
Further there are independent VATs charged like QST.

Thus the paper traces the best methods/processes for federal VAT taxation. The paper discusses
various methods to improve the federal taxation. The main principle of VAT is that the credit is
invoice based and the taxability is destination based. Canada originally had Manufacturer’s Sales
Tax or MST which was replaced by GST in 1991.

However, the opposition to the same was so high that the party which introduced GST, lost the
elections in 1993. Later, the new government though promising to eliminate GST, only
introduced a variant in the form of provincial VAT - HST in few provinces where the base for
taxation was similar to the federal GST. These provinces were compensated for the introduction
(unlike Quebec which was not compensated at all). Thus few provinces administered GST and
HST whilst Quebec had GST and QST. The others continued with the Retail Sales Tax or RST.

34
Thus the provinces applying HST had the GST component imbedded in it, were compensated for
administering GST. Quebec administered QST separate from GST. The place of supply rules
are predominantly origin based. Thus the provinces have chosen to have independent
Subnational VATs (QST) or subsumed them with GST – HST.

Borec, (2013) The authors are consultants with PwC Switzerland and have discussed how
assessees may comply with the VAT laws given that the GST is a destination based tax.
Effective 1 January, 2015, the place of supply rules have been modified to change the taxability
of the services like telecommunication/broadcasting etc. in B2C cases from location of service
provider to location of service recipient.
The authors mainly deal with B2C cases where the VAT compliances would need to be done in
the state where the customer is located.

Bovenberg, (1992) The author uses a general equilibrium model to assess different instruments
of indirect taxation in middle income countries. The author has specifically studied Thailand and
studied the impact of these different instruments on the revenue generation for government, their
effectiveness, etc. The paper studies the impact of these instruments in Thailand on its economy
compared with international other similar economies and the effect on the inequality in income
in Thailand. The author has concluded with suggestions on various methods to increase the
effectiveness of indirect taxes.

Brew, (2012) The authors have studied the relation between the mode of collection of VAT
revenues with the target of VAT collection for the municipality of Tarkwa – Nsuaem in West
Ghana. The authors have used questionnaires and interviews to collect the data and then
analysed it using the regression analysis and established that the method of VAT collection in the
said municipality was above average. The study is important because VAT is one of the primary
revenue generators for any Government.

35
Central Excise Act, (1944) The Act deals with excise which is a tax on goods manufactured in
India. The tax is administered by the Central Government. It specifies the goods liable to excise
and the various rates of duties applicable and the abatements/setoff available. It also describes
the method of availing credit of duties paid on purchasing by a manufacturer. It lists out the
various compliances to be undertaken by the tax payer like challans, returns etc.

The Act is a fiscal one relating to tax on manufacture. It also has provisions for availing Cenvat
credit, audit, refund of tax etc. The Act is very relevant because service tax which is not a
separate Act is drawing many of its provisions from this Act. Service tax is levied through the
Finance Act and many of the provisions of the Central Excise Act are made applicable to service
tax.

Relevant provisions for the financial services industry drawn from this Act are section 11B –
Claim for refund of duty, Section 11 BB- Interest on delayed refunds, various provisions relating
to appeals, procedure thereof, matters referred to settlement commissions, their powers, duties,
orders etc.

Central Sales Tax Act, 1956 This Act administers the sales tax on interstate sale of goods. It is
particularly relevant because it shows how currently the state of origin or the state from where
the movement of goods commences collects the sales tax on interstate sales. This is different
from the proposed GST where the interstate transactions will pay tax in the state of destination.
Further the taxes under this Act though a subject of central levy is administered by the respective
government and proceeds thereof are kept by the said Government.

This can be relied on whilst devising the system for future GST administration of IGST. Further
ideally after introduction of GST, this Act needs to be repealed to avoid multiplicity of taxes.

36
Cenvat Credit Rules, 2004 These rules are extremely important and relevant since they
contain provisions in relation to amount of Cenvat credit or ITC which can be availed. There
was a Notification 23/2004 C.E.(NT) dated 10 Sep., 2004 issued under section 94 of Finance
Act, 1994 and section 37 of the Central Excise Act, 1944. This overruled the existing Cenvat
Credit Rules, 2002 and Service Tax Credit Rules, 2002 and the rules under reference were
issued.

The rules provided definitions mainly important ones being the capital goods, inputs and input
services as ITC is available on the same. The rules also provide the exclusions to the
definition of each. From a financial services point of view definition of input services and the
exclusions thereto are highly relevant since they determine the eligible ITC for financial
institutions. All other input taxes on exclusions would become costs and result in cascading of
taxes.

The rules also define ‘exempted’ services. This is again relevant as ITC on exempted services
is totally not available irrespective of the eligibility as an ‘input service’. Thus the
classification as ‘exempt’ service results in increase in ITC costs. The rules also specify the
taxes which can be included to avail Cenvat credit eg. Excise duty paid, service tax paid etc.
The rules describe the requirements of the document or invoice based on which ITC can be
availed. It also provides theprovisions and procedure to claim refund of blocked ITC.

The rules then provide the procedure for availment of credit by service providers like banks
who provide both exempted and taxable services as defined under the provisions relating to
service tax. Currently financial institutions are required to avail only eligible credits, not take
credits of tax paid on inputs services purely for exempt services, and of the balance reverse
50%. This flat slab reversal is required as banks provide both exempt and taxable services and
hence are not allowed full credit of ITC. This results in the 50% written off becoming costs for
banks which ultimately results in cascading of taxes. The rules also provide for other things
like transitional provisions, penalty provisions etc.

37
Chapter 4

Data Analysis & Interpretation

38
 DATA ANALYSIS & INTERPRETATION

Data Analysis

The data collected various respondents have to analysis for the drawing conclusion . So in this chapter efforts
have been made to analysis and interpret the collective data towards challenges in GST filling for retail
sectors under Faridabad area on “ Goodsans Service Tax '' through questionnaire.

First of all the collected data have been presented in tabular form and there after it is analyzed with the help of
percentage and Pie Charts .

A brief description of analysis and interpretation given below :

39
In Table No. 4.1 An attempt has been made of classify the respondents on the basis of Age factor
.

Table No. 4.1

Classification of respondents on the basis of Age

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

1 Up to 20 years 1 2

2 21- 30 years 13 26

3 31-40 years 23 46

4 41-50 years 11 22

5 Above 50 years 2 4

total 50 100

40
Source : Data Collected from Primary Data through Questionnaire Method.

Classification of respondents on the basis of Age

Figure 4.1

Interpretation :

From the above table and figure it is clear that majority of respondents that is 46% are 31-40 years Where as
26 % belongs to 21 – 30 years are and rest of 22 % are 41--50 years. Thus it can be concluded that there are
majority of the respondents are 31 to 40 years.

51

41
In Table 4.2 An attempt has been made of classify the respondents on the basis of qualification factor. The
qualification have been divided in to five Categories –up to 10th,12th , 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 Up to 10th 7 14
2 12th 10 20
Graduation 17 34
3 Post graduation 12 24

4 Other qualification 4 8

5 Total 50 100

42
Sources : Data Collected from Primary Data through Questionnaire Method .

Classification of respondents on the basis of Educational Background

Figure 4.2

Interpretation :

From the above table and figure it is depicted that majority of respondents ie 34% are related to high and
low background that means other areas, where as 34% are Graduation and 24 % are Post Graduate. Thus it
can be concluded that majority of the respondents are Concerned Graduation and post graduation.

52

43
In Table 4.3 An attempt has been made of classify the respondents on the basis of Married and Un Married
Status .

Table 4.3

Classification of respondents on the basis of income Status

Sr No. Monthly income No. of Respondents Percentage (%)
1 Up to 20000 11 22
2 20000—50000 22 44
3 50000—100000 12 24
4 100000—200000 3 6

5 Above 200000 2 4

Total 50 100

44
Source : Data collected from Primary Data through Questionnaire Method

Classification Of Respondents on the basis of income Status

Fig.4.3

Interpretation :

From the above table and figure it is clear that majority of respondents having monthly income 20000--50000
i.e. 44% and 24% people having 50000—100000 monthly. Therefore , According to this observation
maximum respondents having monthly income 20000—50000..

45
In Table No. 4.4 An attempt has been made of classify the respondents documentation challenges of GST
Filling. The challenges level of the respondents has been divided in to Five categories – Strongly Agree,
Agree, Neutral , Dis Agree, Strongly Dis Agree. The description of this as below

Table No.4.4

Classification of respondents on the basis of their challenges regarding “Implementation of GST a loss in
sales.”

Sr No. Response No. of Respondents Percentage (%)

1 Strongly Agree 4 8
2 Agree 29 58
3 Neutral 11 22
4 Dis Agree 4 8
5 Strongly Dis Agree 2 4
Total 50 100

46
Source Data collected from primary sources through questionnaire method

Figure 4.4

Interpretation :

Above chart depicted that majority of the respondents agree with the statement that Implementation of GST
cause a loss in sales 58% respondents are Agree with this statement and 22% are neutral and also 8 % are
strongly agree . Hence it is concluded that majority of the respondents i.e. 58% are
Agreed and 8% strongly agreed with this statements.

47
Table No. 4.5An attempt has been made of classify the respondents on the basis of their response regarding
the statement “ Supply chain becomes more effective due to implementation of GST . '' The response are
divided into five categories – Strongly Agree, Agree, Neutral , Dis agree and Strongly Dis agreed .
The description of this as below :

Table No. 4.5.

Sr No. Response No. of Respondents Percentage(%)

1 Strongly Agree 25 50
2 Agree 18 36
3 Neutral 2 4
4 Dis Agree 4 8
5 Strongly Disagree 1 2
Total 50 100

48
Sources Data collected from primary sources through questionnaire method.

Figure 4.5

Interpretation :

Above Chart depicted that majority of the respondents satisfied with the supply chain becomes more
effective due to implementation of GST. 50% respondents are strongly agree and also 36 % are Agreed and
8% are disagree .So it is concluded that majority of therespondents satisfied this statement.
57

49
Table No. 4.6 An attempt has been made classify the respondents on the basis of their response regarding
statement “ GST increased thr price of various commodities.''

Table No. 4.6

Sr No. Response No. of Respondents Percentage(%)

1 Strongly Agree 2 5
2 Agree 34 68
3 Neutral 9 18
4 Dis Agree 4 8
5 Strongly Dis agree 1 1
Total 50 100

50
Sources Data collected by Primary sources through the questionnaire method .

Figure No. 4.6

Interpretation :

According to above table , it is shows that majority of the respondents i.e. 68% are agree with this statement
and 18% are neutral and also 8% are Dis Agree for this statement . 5% are strongly Agreed. So it is concluded
that majority and cum majority peoples are said that GST increased the price of varies commodities.

51
Table No. 4.7 An attempt has been made of classify the respondents on the basis of their response towards
GST will not be helpful in reducing black marketing oggoods .

Table No. 4.7

Sr No. Response No. of Respondents Percentage(%)

1 Strongly Agree 2 4

2 Agree 12 24

3 Neutral 31 62

4 Dis agree 4 8

5 Strongly Dis agree 1 2

Total 50 100

52
Sources : Data collected from Primary sources by questionnaire method.

Fig. 4.7
Interpretation :

From the above table and figures it is concluded that 62% respondents are neutral and 24% are agreed to
India is ready for GST implementation and 8% also disagree to this statement . So it is fair conclusion are
majority of the respondents are saygst will nit helpful reducing black marketing of goods.
.

53
In Table No. 4.8 An attempt has been made of classify the respondents on the basis of their statement GST
does not helps in reduction of tax. The results are represents on Five Categories are given Below :

Table No. 4.8

Sr No. Response No. of Respondents Percentage (%)

1 Strongly Agree 0 0

2 Agree 12 24

3 Neutral 29 58

4 Dis agree 6 12

5 Strongly Dis agree 3 6

Total 50 100

54
Sources Data collected from Primary Sources through questionnaire method .

Figure 4.8

Interpretation :

From the above data table and figure show that maximum respondents are represents that GST does not helps
in reduction of tax so 58% respondents are neutral and 24% areagree this statement and also 12 % are
disagree for this statement. Hence , it is concluded that maximum results are positive nature for this statement
.

55
In Table No. 4.9 An attempt has been made of classify the respondents on the basis of their response regarding
the statement Creating different invoices with different rates has increased the burden on small and medium
enterprices . The given data are classified following categories are given below :

Table No. 4.9

Sr. No. Response No. of Respondents Percentage (%)
1 Strongly Agree 28 56
2 Agree 13 26
3 Neutral 5 10
4 Dis Agree 4 8
5 Strongly Dis Agree 0 0
Total 50 100

56
Sources Data collected from Primary sources through questionnaire method .

Figure No. 4.9

Interpretation :

According to above table , it is shows that majority of respondents are high satisfied maximum respondents are
strongly agree are 56% . only 26% Agreed and 8 % are dis agreed so it is concluded that peoples perception
regarding this statement may be positive . But above results are some Positive .

57
In Table No. 4.10 An attempt has been made of classify the respondents on the basis of their response
regarding the statement Invoice wise reporting has work manforce . The data are given following Statement
are as below :

Table No. 4.10

Sr No. Response No. of Respondents Percentage (%)

1 Strongly Agree 27 54
2 Agree 13 26
3 Neutral 6 12
4 Dis agree 4 8
5 Strongly Dis agree 0 0
50 100

58
Sources Data collected by Primary Sources through questionnaire method .

Figure No.4.10

Interpretation :

Above table and figure depict that majority of the respondents i.e. 54% are strongly Agree and 12 % are
neutral and also 26% are agree with this statement . 8% are dis agreed with this statement .Hence , it is
concluded that maximum respondents are strongly Agree and agreel stage so result are may be positive .

59
In Table No. 4.11 An attempt has been made of classify the respondents on the basis of their perception
regarding this statement are Filling 3 returns per month puts an extra burden on small retailers . The following
statement data are given below as :

Table No. 4.11

Sr No. Response No. of Respondents Percentage(%)
1 Strongly Agree 28 56
2 Agree 15 30
3 Neutral 4 8
4 Dis agree 2 4
5 Strongly Dis agreed 1 2
Total 50 100

60
Sources Data collected from Primary sources through questionnaire method .

Figure No. 4.11

Interpretation :

From the above table and figure represents that maximum respondents are sure that 3 return filling gives extra
burdan .56 % peoples are strongly Agree this statement rest of 30% are agree and 8% are neutral on this
statement .

61
In Table No. 4.12An attempt has been made of classify the respondents on the basis of their response
regarding the statement GST portal does not update with current ammendments . The description of following
data are given below as :

Table No. 4.12

Classification of respondents on the basis of their opinion regarding the GST portals.

Sr No. Response No. of Respondents Percentage (%)

1 Strongly Agree 6 12
2 Agree 29 58
3 Neutral 13 26
4 Dis Agree 0 0
5 Strongly Dis agree 2 4
Total 50 100

62
Sources : Data collected from Primary sources by questionnaire method.

Figure No.4.12

Interpretation :

From the above figure and table it is concluded that 58% respondents responds GST does not update with
current ammendments. and 26% are neutral and Strongly agree with this statement are 12% . So Hence,
majority of the respondents are provide positive results in this statement.

63
In Table No. 4.13 An attempt has been made of classify the respondents on the basis of their response
regarding this statement Submission of HSN summary in returns is acrucial task . The following information
are collected from this statement are given below :

Table No. 4.13

Sr No. Response No. of Respondents Percentage (%)
1 Strongly Agree 5 10
2 Agree 28 56
3 Neutral 13 26
4 Dis agree 3 6
5 Strongly Dis agree 1 2
50 100

64
Sources Data Collected from primary sources by questionnaire method .

Figure No. 4.13

Interpretation :

According to above table , it is shows that majority of the respondents i.e. 56 % are Agree and 26% are
neutral with this statement are Submission of HSN summary in return is a crucial task and 10% are st. agree.
Hence it is concluded that majority of the respondents are more than over all 56% are agreed and results are
so positive statement.

65
In Table No. 4.14 An attempt has been made of classify the respondents on the basis of their perception
regarding this statement Different tax rates are confusing for filling return . The following responses are given
below as :

Table No. 4.14

Sr No. Response No. of Respondents Percentage (%)
1 Strongly Agree 12 24
2 Agree 29 58
3 Neutral 5 10
4 Dis agree 3 6
5 Strongly Dis agree 1 2
Total 50 100

66
Sources Data collected from Primary Sources through questionnaire method.

Figure No. 4.14

Interpretation :

According to above table , it shows that majority of the respondents are i.e. 58% are agree and 24% are
strongly agreed and also 10% are neutral for this statement. So it is concluded that majority of the respondents
i.e. 50% are neutral this Statement and results are may be positive nature .

67
In Table No. 4.15 An attempt has been made of classify the respondents on the basis of their perception
regarding statement are GST has increase burden of lot of documentation . The description are given as below
:

Table No. 4.15

Classification of respondents response on the GST has increased the burden of lot of documentation .

Sr No. Response No. of Respondents Percentage(%)

1 Strongly Agree 23 46
2 Agree 16 32
3 Neutral 4 8
4 Dis Agree 4 8
5 Strongly Dis Agree 3 6
Total 50 100

68
Sources Data collected from Primary Sources by questionnaire method .

Figure No. 4.15

Interpretation :

From the Above data depicted that majority of the respondents are strongly agree for this statement
Majority of the respondents i.e. 46% are strongly agreed . And 32% are agree for this statement .But Also
Further 8% respondents are neutral for this statement, So maximum result are against this statement . And
may be 46% arest.agree to GST has increased the burden of lots of documentation. . Hence ,results are some
may be Positive .

69
In Table No. 4.16An Attempt has been made of classify the respondents on the basis of their perception
regarding statement are While filling GST returns , online network is very slow . The following description
for these statement are show as below :

Table No. 4.16

Classification of respondents on the basis of statement online network is very slow.

Sr. No. Response No. of Respondents Percentage (%)

1 Strongly Agree 1 2
2 Agree 9 18
3 Neutral 28 56
4 Dis agree 5 10
5 Strongly Dis agree 7 14
Total 50 100

70
Sources Data collected from Primary Sources through questionnaire method .

Figure No. 4.16

Interpretation :

From the above table , it shows that majority of the respondents ie. 56% are neutral with the statement are
GST online network is very slow and 18% respondents areagree for this statement. So, 14% are strongly
disagree and results are this statement are pure neutral.

71
In Table No. 4.17 An attempt has been made of classify the respondents on the basis of their response
regarding the statement .GST portal does not update the taxpayers profile in time . The following statement
description given as below :

Table No. 4.17

Classification of respondents on the basis of response of the respondents regarding GST portal does not
update the taxpayers profile in time .
Sr No. Response No. of Respondents Percentage (%)
1 Strongly Agree 7 14
2 Agree 10 20
3 Neutral 27 54
4 Dis Agree 4 8
5 Strongly Dis Agree 2 4
Total 50 100

72
Sources Data collected from primary sources through the questionnaire method.

Figure No. 4.17

Interpretation :----

According to above table , it is shows that majority of the respondents are Neutral i.e.54% are neutral from
the statement. Results are not bad because respondents are neutral and 20% are agreed also this statement .
So it is concluded that maximum result are satisfactory for this statement .

73
In Table No. 4.18 An attempt has been made of classify the respondents on the basis of their response
regarding the statement Pdf files does not generate easily. The description of this as below :

Table No. 4.18

Sr No. Response No. of Respondents Percentage (%)
1 Strongly Agree 0 0
2 Agree 15 30
3 Neutral 24 48
4 Dis Agree 3 6
5 Strongly Dis Agree 8 16
Total 50 100

74
Sources : Data collected from primary sources through questionnaire method .

Figure No. 4.20

Interpretation :

Above Chart depicted that majority of the respondents satisfied with the statement PDF files does not generate
easily . 48% respondents are neutral and 30% are agreed with this statement . Further 16% are strongly
disagree. Hence , it is concluded that majority of the respondents are show neutral of this statement . And
maximum results are neutral of this statement.

75
Chapter 5

Summary

Findings

Conclusion

References

76
SUMMARY , FINDINGS & CONCLUSION

Summary of the study :

This project report helped me to get deeply understanding the “ Documentation challenges of
GST Filling .''
The main focus of this study was to asses the challenges of retailers regarding the Goods and
Service tax filling in Faridabad Area. The study is structured of five chapters namely ,
introduction , literature review, research methodology , Data analysis and interpretation and last
one is summary and conclusion .

First chapter are covers the introduction of the taxation system , background of GST in outside of
India and with in India . Concept of GST , Types of GST , Structure of GST , GST return filling
process.

The Second Chapter i.e. Literature Review it includes more than 10 Studies of different
researchers are analysis carefully .

In the Third Chapter i.e. research methodology highlights the problem statement , scope of study
, need of study, objective of study , research design , universe of study , sampling design ,
sample technique and sample size and data collection methods and limitations of study.

The fourth chapter , i.e. Data analysis and interpretation, efforts have been made to analysis the
data with the help of mathematical tools are used percentage method . Data are show in Tables
form which includes response of respondents , total number of respondents and percentage share
of respondents towards the various statements .Interpretation results are shown in Positive and
Negative form .

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Findings Of The Study :

After Analysis and Interpretation of the data these are followings findings were emerged .

• Majority of the respondents i.e. 46 % comes under 31—40 age group and 22%^ are
comes under 41- 50 years .

• More than 34% respondents arerelated are completed its graduation .

• The most of respondents faces some challenges towards the GST filling and they are
not aware properly GST filling process .

• 68 % respondents are that opinion GST is increases the price of various commodities.

• 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 retail customers opinion that GST filling has some difficult challenges
regarding documentation , filling process , different tax rates etc.

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CONCLUSION :

This study highlighted the overall overview of GST filling challenges by retailers infaridabad
Area of Haryana.. The Government to put in more effort to ensure that tax payers have a clear
understanding of GST filling process and develop a some easiest softwares for GST
fillingbecause retailers are not properly awair about GST filling process for this the hired sone
professionals because of they don’t know the clearly GST filling process . Good understanding
among GST filling is important to all GST fillers or tax payers as wellas it can generate a
positive perception towards the taxation policy .GST implementation effects the supply chain of
goods and services. Gov. should takes some effective steps for this burden on small and medium
enterprices. Different GST filling due dates also give burden to retailers. So it is a
responsibilities to gov. should take some actions for small retailers.

79
REFERENCES

1. HTTP ://Wittgenstein

2. www.gstindia.com

3. comtax.up.nic.in

4. https://en.wikipedia.org

5. www.gstn.org

6. www.cbec.gov.in

7. www.financialexpresss.com

8. www.gstcounsil.gov.in

9. Sharma Publication , Topic … “ Concept of Tax , Structure of Tax, Indian Taxation

System '' Indirect Tax Text Book B com Ivth Semester First Edition 2014.

10. Kothari C.R. 2nd Edition (2004) Research Methodology … Topic “ Concept& Meaning
Of Research , Sampling , Methods and Techniques Of Data collection and Tools '' B com
, BBA and MBA and M.com Textbook.

11. Pinki , SupriyaKamna, Richaverma “ Goods and Service Tax”--Panacea For Indirect
Tax System in india ,” Tactful Management Research Journal”, Vol12, issue 10 July
2014

12. AgogoMawulli“ Goods and Service Tax --- An appraisal Paper presented at the PNG
Taxation Research and Review Symposium. Holiday inn port meoresby, Pg No.29-30 ,
April 2014

13. Kumar Nitin (2014) “ GST in india : A way forward '' Global Journal of Multi
disciplinary Studies, Vol 3 Issue 6 , May 2014.

14. Gupta Nishita ,Goods and Service Tax : Its implementations on Indian economy
volume 5 Issue 3 (year 2014 – Pg No. 126—133 .
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 QUESTIONNAIRE

QUESTIONNAIRE ON GST FILING

Strongly
Sr. Strongly
Statements Disagree Disagree Neutral Agree
No. Agree

Implementation of GST causes a loss

1 in sales.

Supply Chain becomes more effective

2 due to implementation of GST.

GST increased the prices of various

3 commodities.

GST will not be helpful in reducing

4 black marketing of goods.

GST does not help in reduction of tax.

5

Creating different invoices with

different rates has increased the

6 burden on small & medium

enterprises.

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 Invoice wise reporting has increased

7 the work manforce.

Filing 3 returns per month puts an

8 extra burden on small retailers.

GST portal does not updated with

9 current ammendments.

Submission of HSN summary in

10 returns is a crucial task.

Different tax rates are confusing for

11 filing return.

GST has increased the burden of lot of

documentation.
12

While filing GST returns, online

network is very slow.
13

GST portal does not update the

taxpayer's profile in time.
14

Pdf files does not generate easily.

15

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PERSONAL DETAILS –

Your Age group:-

o upto 20 yrs
o 21 - 30 yrs
o 31 – 40 yrs
o 41 – 50 yrs
o above 50 yrs

Your Qualification:-

o upto 10th
o 12th
o Graduation
o Postgraduation
o Other qualification

Your Monthly Income:-

o upto 20,000
o 20,000 – 50,000
o 50,000 – 1,00,000
o 1,00,000 – 2,00,000
o above 2,00,000

83