“A Study On The Public Response Towards GST Implementation With

Special Reference To Bidar District, Karnataka”

SYED KHAJA MOHIUDDIN
Research Scholar
Department of studies and Research in Management,
Gulbarga University, Kalaburagi.
Contact No: 9590082656
E-Mail Id: hyderabad.pecock@gmail.com

ABSTRACT

GST is a tax on value addition at each stage of supply of goods and services. The Goods and
Services Tax (GST) is a vast concept that simplifies the giant tax structure by supporting and
enhancing the economic growth of a country. GST is a comprehensive tax levy on
manufacturing, sale and consumption of goods and services at a national level. The
overarching purpose of the staged collection process of GST is to ensure that the businesses
shall not bear the burden of taxes and enable the flow through of taxes to the final consumers.
On bringing GST into practice, there would be amalgamation of Central and State taxes into a
single tax payment. It would also enhance the position of India in both, domestic as well as
international market. Basically the Framework of GST IS Taxation on destination-based
consumption principles i.e., tax would accrue to the jurisdiction where goods and services are
finally consumed. A uniform and single taxable event of ‗supply‘ would replace multiple
taxable events such as manufacturing (excise), sales (VAT), and services (service tax) as
prevalent under the current regime. Every intra-state transaction of supply of goods and
services would be liable to Central GST (CGST) and State GST (SGST) concurrently. Inter-
state transactions including stock transfers and imports will become liable to Integrated GST
(IGST). This paper ultimately aims to find out the ambiguities in Goods and Service Tax.
Key words: GST, Central taxes, State taxes, Public Awareness, Response, Implementation.
I. Introduction

The citizens of India, pay two types of taxes i.e. Direct and Indirect. Tax paid directly to the
government by the taxpayer like the Wealth Tax, Income Tax, and Corporation Tax is Direct
Tax. Tax which is not directly paid to government but collected from intermediaries which is
levied on the customers like the Sales Tax, VAT, Excise Duty, and Custom Duty is Indirect
Tax.GST is one of the most critical tax reforms in India introduced recently. It is a
comprehensive tax system that will subsume all indirect taxes of State and central
Governments and whole economy into seamless nation in national market. It is expected to
remove the burden of existing indirect tax system and play an important role in growth of
India. GST includes all Indirect Taxes which will help in growth of economy and proves to
be more beneficial than the existing tax system. GST will also help to accelerate the overall
Gross Domestic Product (GDP) of the country. GST is now accepted all over the world and
countries are using it for sales tax system. Here the researcher attempt to understand the
public opinion after the implementation of GST and also provide suggestions based on the
public opinion.

a. Objectives of the study

 To study on public response towards GST Bill.
 To provide suggestions based on the findings of the study.

b. Review of literature
A literature review is an account of what has been published on a topic by accredited scholars
and researchers. Keeping in view the objective of study, the following literatures have been
reviewed for its consideration.

Vineet Chouhan (2017)1 in his article titled “Measuring Awareness about Implementation
of GST” A Survey of Small Business Owners of Rajasthan” the study seeks to evaluate the
awareness of the Business owners about GST and the difficulties they would face in case of
the current awareness about it. 148 Small business owners were analyzed in order to identify
the awareness about GST from Rajasthan State and the kind and extent of relief provided and
the implementation of the provisions under the GST law. The study has revealed that there is
a lack of awareness amongst the Small business owners regarding the GST and its rules.
K. R. Sakthi Devi (2017)2 conducted a study on “Awareness of Taxpayers Towards GST
Implementation”. This study attempts to find out what level of awareness and Satisfaction to
GST taxpayers. The sample consists of 150 taxpayers in Coimbatore District. Data collected
using questionnaires. The results showed that the level of awareness was moderate and the
majority of respondents give a high negative impact towards GST. This eventually causes the
majority of respondents did not accept the implementation of GST.

Mohammad Ali (2016)3 in his paper titled “Awareness and Perception of Taxpayers towards
Goods and Services Tax (GST) Implementation” the study attempts to find out what level of
awareness and perception to GST taxpayers in Malaysia. This study only consists of 256 civil
servants of the secondary school teachers in the area Kuala Kangsar Perak. Data collected
using questionnaires. The results showed that the level of awareness was moderate and the
majority of respondents gave a high negative perception to the impact of GST. This
eventually causes the majority of respondents did not accept the Implementation of GST in
Malaysia.

II. Research Methodology

Research methodology of any study discovers answer to questions through the application of
scientific procedures. Research methodology used for the present study is as follows.

a. RESEARCH DESIGN
It is a plan of action before starting a research. The research design used for the study is
descriptive in nature.

b. SOURCES OF DATA
Primary Data: Here first-hand information was obtained by distributing printed questionnaire
to the respondent.

c. Secondary Data: Secondary data was collected from the books, journals, and the related
website.
d. SAMPLING SIZE
Sample size for the study is 50.

e. SAMPLING METHOD
Convenient sampling technique is used for data collection

f. TOOL FOR DATA COLLECTION

Questionnaire is used for collection of data.

g. TOOLS FOR DATA ANALYSIS

Data analysis was done through percentage method and presented in tables and charts.

III. Limitations Of The Study

 Respondents response may or may not be correct.
 Some respondents refused to disclose the fact due to lack of time and interest.
 The data’s are collected only from 50 general public due to time constraint.

IV. Data Analysis And Interpretation
The Analysis of survey data is an important step in the survey process. Analyzing the
data and interpreting the results are the „reward‟ for the work of collecting the data. It will help
to understand more about the respondent under study, and guide the authorities towards better
decision.
Table 1. Awareness about GST bill

STATEMENT FREQUENCY PERCENTAGE

Yes 40 80%
No 10 20%

Analysis 1. Shows that out of 50 respondents majority of respondent 40% are having
knowledge on new GST bill and 20% are unaware.

Table 2. Sources of information on GST

 SOURCES FREQUENCY PERCENTAGE
Newspaper 9 22%
Mass Media 19 38%
Online 8 20%
Seminar/Classe 11 15%
s
Others 3 5%

Analysis 2. Show that, out of 50 respondents majority of the respondents 38% got information
on GST from mass media, 22% from newspaper, 20% from online , 15% got information from
seminar and 5% from others.

Table 3. Knowledge about the proposed rates of GST

STATEMENT FREQUENCY PERCENTAGE

Yes 39 78%
No 11 22%

From the Analysis 3, it is clear that out of 50 respondents, 78% of respondents know about
the proposed rates of GST and 22% of them are not aware about it.

Table 4. Whether the proposed rate of GST is satisfactory

STATEMENT FREQUENCY PERCENTAGE

Yes 10 20%
No 38 76%
No Opinion 2 4%

Analysis 4. Shows that among the 50 respondents who have knowledge about the GST rates,
majority of the respondents 76% feel that the proposed rates of the GST is not satisfied and
20% among them are satisfied with the proposed rate of GST.

Table 5. Does GST effects consumption behavior

STATEMENT FREQUENCY PERCENTAGE

Yes 40 80%
No 4 8%
 No Response 6 12%

Analysis 5. Shows that the effect of GST on the consumption behavior of the respondents.
Among 50 respondents 80% of them are agreed that the GST effect their consumption
behavior, 8% of respondents are not agreed and the rest of them have no response.

Table 6. Response about the price level changes after the Implementation of GST

STATEMENT FREQUENCY PERCENTAGE

Become High 36 72%
Become Low 2 4%
No Change 8 16%
No Opinion 4 8%

Analysis 6. Shows the price level changes after the Implementation of GST. Out of 50
respondents, majority of them argued that the price become high after the implementation of
GST.

Table 7. Can implementation of GST help India to become a developed country.

STATEMENT FREQUENCY PERCENTAGE

Yes 15 30%
No 8 16%
No Response 27 54%

Analysis 7. Shows that majority of the respondents did not have an response on the statement
Implementation of GST can help India to becomes a developed nation.

Table 8. Satisfaction with the principle of „One Nation One Tax‟

STATEMENT FREQUENCY PERCENTAGE

Satisfied 38 76%
Not Satisfied 8 16%
No Response 4 8%

Analysis 8. Shows the response of the respondents on the principle of “ONE NATION ONE
TAX”. Among 50 respondents majority of the respondents are satisfied.
Table 9. Is GST a fair tax

STATEMENT FREQUENCY PERCENTAGE

Yes 20 40%
No 30 60%

Analysis 9. Show that out of 50 respondents, 40% of respondents argued that the GST is a
fair tax and the rest of them are argued GST is not a fair tax.

Table 10. The Government had given enough awareness before the implementation of
the GST.

STATEMENT FREQUENCY PERCENTAGE

Yes 28 56%
No 22 44%

Analysis 10. Show that out of 50 respondents, 56% of the respondents agreed that the
government had given enough awareness before the Implementation of GST.

Table 11. Respondent who got chance to intimate the government their opinion on GST

STATEMENT FREQUENCY PERCENTAGE

Yes 14 28%
No 35 72%

Analysis 11. Show that out of 50 respondents, 28% respondent said they got chance to
intimate the government their response on GST and 72% respondent state they did not get the
chance for their response.

Table 12. Respondents who support GST

 STATEMENT FREQUENCY PERCENTAGE
Yes 14 28%
No 36 72%

Analysis 12. Show that out of 50 respondents, only 28% of the respondents support GST and
the rest 72% of them are not support GST.

Table 13. Reasons not to support GST

REASON FREQUENCY PERCENTAGE

Increase the cost of living 22 44%
Difficult to understand 8 16%
Burden on the people 15 30%
Others 5 10%

Analysis 13. Show that the reason not to support GST among 50 respondents 44% are not
support GST due to increase the cost of living,16% due to difficult to understand , 30% due
to GST burden on the people and 10% of respondents not support GST due to other reasons.

V. Findings
1. Most of the public respondents are male.
2. It is found that majority of the public are aware of new GST bill.
3. Most of the public are aware of GST through mass media
4. Majority of the public know about the proposed rate of GST.
5. Majority of the public is of the opinion that the implementation of GST will cause higher
price for goods and services.
6. It is found that 76% of the respondents have no opinion on the statement, “Implementation
of GST can help.
7. India become a developed country”
8. The analysis revealed that 68% of the respondents are satisfied with the principle of “One
Nation One Tax”.
9. It is found that 60% of the respondents argued that GST is not a fair tax.
10. It is found that 56% of the respondents agreed that the government had given enough
awareness before implementation of GST.
11. It is found that majority of the respondents are do not support GST.
12. Majority of the respondents argued that the reason not to support GST is due to Increased
the cost of livings.
13. It is found that nobody got chance to intimate the government their response on GST.
14. It is found that 80% of the respondents argued that GST will effects their consumption
behavior.
VI. Suggessions
1. The public suggested that there should be a smooth, transparent a simple transition
provisions which is easily understandable.
2. Special focus on awareness and training of all officers, professionals and assesses should be
given on GST.
3. Any disputes on GST introduction should be pro-actively addressed by way of speedy
redressal of cases.
4. An expert panel should be formed to recommend modifications to the Constitutions and it
should be published for the mass public.
5. The public also are not well informed on the benefits 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 of GST.
VII. Conclusion
Indian Government proposing to implement GST as a tool to increase its revenue and reduce
its deficit. The implementation of GST is a changing face of India which is a welcome move
and the government should be well equipped for that which is a symptom of fast paced
economy. Findings of this study shows that the level of awareness on the benefits of GST
among Indians are still relatively low. It could be due to the lack of knowledge or information
regarding GST. For this reason, the government should reflect on how to increase the
knowledge of GST among citizen. Furthermore, they should put more effort in delivering
information and educating the citizen regarding GST, so that the citizen will have positive
view about this GST implementation.

References
a. Nordiana. R (2012), “The Perception of Taxpayers towards GST
Implementation”Othman Yeop Abdullah Graduate School of Business, University
Utara Malaysia 06020 Sintok, Kedah.
b. Noormahayu (2015),Public Awareness towards Goods and Services Tax (GST) in
Kuala Lumpur, Malaysia, International Academic Research Journal of Social
Science, Vol. 1 ,No. 2, pp. 101 – 106, 2015.
c. Mohamad Ali (2016), Awareness and Perception of Taxpayers towards Goods and
Service Tax (GST) Implementation.International Journal of Academic Research in
Business and Social Sciences, 75-93.
d. S.Muthupandi (2017) “Awareness of Implementation of Goods and Services Tax
(GST) Among College Students in Sivakasi”.
e. Research Scholar, Department of Commerce Ayya Nadar Janaki Ammal College,
Sivakasi, Tamil Nadu, India.
f. Vineet Chouhan (2017), Measuring Awareness about Implementation of GST: A
Survey of Small Business Owners of Rajasthan, Pacific Business Review
International Volume 9 Issue 8, Feb. 2017.
g. Dr. K. R. Sakthi Devi (2017), “A Study on Awareness of Taxpayers Towards
Goods and Services Tax (GST) Interdisciplinary Research in Arts and Humanities,
Volume 2, Issue 1,Page Number 204-206, 2017.