International Journal of Multidisciplinary Research Configuration, ISSN: 2582-8649, Vol. 2, No.1, January 2022 GST: Awareness and Overview in Haveri District Santhosha. C HOD, Department of Economics, MASC College, Haunsbhavi, Karnataka, India-581109 Corresponding Author: [email protected] DOI: 10.52984/ijomrc2109 Abstract: The single tax system reduces transportation time. But, the services of external consultants are used for various tax matters. The country’s taxation system has improved with the help of GST and the government should take more efforts to training and educating public. Due to frequent change in GST law, companies need to change their accounting system. The technical cost and legal cost in GST are very high and not satisfied with available required services of GST. So, transition to GST is very difficult. Some common problems faced by business are increased overhead expense, supply chain structure, excessive compliances and filling, delays in refund, GST filling, decline in business, refund mechanism and rise in input cost. The satisfaction level of GST after implication has not reached the expectation of all Governments, consumers & business. The urgent requirements for improvement in the nation’s interest include rationalizing GST rates, removing excess processes, creating efficiencies and removing debatable aspects. The present study analyzes the awareness and overview of GST in the study area. Key Words: Tax, GST, Revenue, Difficulties, Awareness, Overview, India. Introduction: overview of the GST concepts and its significant implications and impact on The single tax system reduces various Indian businesses. In some transportation time. GST is stands for countries; VAT is the substitute for Goods and service Tax. It is an indirect GST. But, it is a destination based tax tax which came into existence on July levied on consumption of goods and 1, 2017. GST will be implemented in services. France was the first to India in the fields of manufacture, sale introduce GST, Canada is having a and consumption of goods and duel GST system (somewhat similar to services. GST is considered to be as that implemented in India) rate of GST the greatest reform in the aspect of normally ranges between 10-20%. indirect taxation since 1947.This However, it varies from to higher or research paper hopes to bring out an lower in some of the countries. Table-1: List of GST rates applicable in various countries (Ranking according to descending order) Name of the country GST Rates (in %) Netherland 21% UK 20% 87 International Journal of Multidisciplinary Research Configuration, ISSN: 2582-8649, Vol. 2, No.1, January 2022 France 20% Germany 19% India 0%, 5%, 12%, 18% and 28% Russia 18% China 17% Pakistan 17% Mexico 16% New Zealand 15% Australia, Brazil, Indonesia, Korea 10% Japan, Switzerland 8% Thailand, Singapore 7% Malaysia 6% Canada, Jersey 5% Source: central board of Excise and Customs (2019) Review of Literature: Here, the earlier studies Hypothesis of the study: reviewed have been presented as 1. There is no positive opinion follows. about the GST overview. Kiran et al (2019) state that 2. There is no proper awareness with the implementation of GST, about the GST. FMCG sector had really changed. GST alters production-based taxation system to a consumption-based taxation Methodology: system. Consumer buying behaviour is The data were collected from both the sum total of a consumer's attitudes, primary sources as well as secondary preferences, intentions, and decisions sources. The primary data collected regarding the consumer's behaviour in 145 sample units randomly through the market when a product or service is online interview in Hirekeruru and purchased. Manoj (2019) analyzed the Ranebennur taluk of Haveri District significant impact of GST on various and Secondary data collected through sectors. Sreekumar et al (2018) annual reports from the Government, highlight the attitude of customers or websites, newspapers and Journals. consumers in implementing GST. And it has been analyzed with the help of appropriate and suitable tables and Objectives of the study: simple statistical tools have also been For the purpose of the present used in interpretation of data. study have been set the following main objectives: Discussion: 1. To find out the positive and Total revenue collected from negative impact of GST on Pre and Post GST in India has analyzed business below 2. To point out the overall opinion of the respondents about GST in the study area. 88 International Journal of Multidisciplinary Research Configuration, ISSN: 2582-8649, Vol. 2, No.1, January 2022 Figure-1: GST Total revenue collected: 1400000 1222131 1177369 1200000 1000000 861625 800000 709825 740650 CGST SGST 600000 IGST 400000 Total 200000 0 2015-16 2016-17 july 17 - Apr 18 - Apr 19 - Mar 18 Mar 19 Mar 20 The above figure-1 shows that share of Integrated Goods and Services total revenue has increased after Tax (IGST) is very high comparing to implication of GST in India and the CGST and SGST respectively . Figure-2: GST Revenue Trends in Month wise 140000 2017 2018 2019 2020 120000 100000 80000 60000 40000 20000 0 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 140000 2017 2018 2019 2020 120000 100000 80000 60000 40000 20000 0 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 89 International Journal of Multidisciplinary Research Configuration, ISSN: 2582-8649, Vol. 2, No.1, January 2022 The above figure-2 shows that collection of GST has increased at Month wise revenue collection of GST previous stage. in India. The figure highlights that revenue collection is more in the Result: month of November to March over the Table 2 suggests that most of the period of 2017 to 2020 respectively. respondents were in the age group of But the collection of GST has declined 26 - 45 years that is 71.03%. Male due to pandemic impact, lockdown and constituted 63.44% of respondents shutdown of all economical activities whereas female respondents were especially in the month of March to 36.56%. 75.17% of the respondents June 2020 considerably. Even though had below poverty line (BPL) card. in post pandemic, the revenue Majority of respondents were from joint family 67.59%. Table-2: Socio-economic Status of the respondents Characteristics of Number Percentage Respondents Age 15-25 30 20.68 26-35 48 33.1 35-45 55 37.93 45+ 12 8.29 Gender Male 92 63.44 Female 53 36.56 BPL Card Yes 109 75.17 No 39 24.83 Types of Family Nuclear family 47 32.41 Joint family 98 67.59 The table-3 shows that 74.48% well as Pre-GST taxation in the study of respondents are aware about the area and also they felt that they are GST in the study area. But the paying first time taxes to government majority of the respondents (53.79%) after implication of GST in India. are didn’t have tax system in India as Table-3: Awareness about the GST. Awareness Frequency Percentage Yes 108 74.48 No 37 25.52 In the study are, nearly 34 Further, 62.06% opinion that GST is an respondents are having shops and extra burden to business activities and doing small business with using GST remaining 37.31% are saying that GST software to maintain daily transaction. is beneficial to business activities in And they strongly agreed that due to the study area. Only 26.2% are GST implication they faced several satisfied with current rate of GST and problems to run their business notably. more than 80% of respondents are 90 International Journal of Multidisciplinary Research Configuration, ISSN: 2582-8649, Vol. 2, No.1, January 2022 opinion that due GST, price of goods and services has increased in high rate. Fable-3: Single Tax System Reduces Transportation Time and Cascading Effect, Do You Agree With It? 45 40 35 30 25 20 41 38 15 28 27 10 5 11 0 Strongly Agree Neutral Disagree Strongly agree Disagree The above figure reveals they felt that they are paying first 47.58% of respondents are agreed that time taxes to government after single tax system reduces implication of GST in India transportation time and cascading 6. More than 80% of respondents are effect and 26.20% are disagreed, opinion that due GST, price of remaining 26.22% are neutral goods and services has increased in respectively. high rate. 7. 75.86% are agreed that frequently Findings: changing of GST rates causing Major findings of the present study price instability and it will be more have been listed in below. burdens to weak section of the 1. The total revenue of GST has society. increased over the past year. 8. 50.34% of respondents thought 2. 74.48% of respondents are aware that due to GST the price of goods about the GST in the study area. and services will be reduce but in 3. 64.7% are faced high level of recent days the price of goods and problems (out of 34 business services is increasing continuously respondents) while filling and it will be become a more procedure, change in laws and economical burden to their family. refund procedure at the study area. 9. More than 75% of respondents 4. 18.62% are saying that transferred believing rumors/fake news in to GST was smoother and 25.51% Social media about the GST. say that it is difficult to transfer to 10. Ranebennur taluk respondents GST and remaining 55.87% say having more awareness about GST that transferred to GST is very than Hirekerur taluk of Haveri difficult. District. 5. 53.79% are didn’t have tax system 11. Null hypotheses accepted and there in India as well as Pre-GST is no positive opinion about the taxation in the study area and also GST overview in the study area. 91 International Journal of Multidisciplinary Research Configuration, ISSN: 2582-8649, Vol. 2, No.1, January 2022 12. Null hypotheses rejected and there Stakeholders, International is good awareness about the GST Journal of Pure and Applied in the study area. Mathematics,ISSN: 1314- 3395, Volume 119 No. 17 Suggestions: 2018, 2357-2367 Suggestions from our study are 4. Imtiyaz Ahmad Shah and Asif as follows: Tariq (2017) Impact of GST on 1. Government should enlarge Jammu and Kashmir awareness program and Economy, Journal of Advance training campaign about GST. Management Research, ISSN: 2. Government also should 2393-9664 Vol.05 Issue-05. 5 reduce the GST rates on basic Jaiprakash ( 2014)- “Indirect need and daily needs of the Tax Reform in India and a way households. ahead for GST”, IJCCR, Vol 4, Issue 1, January 2014, ISSN Conclusion: No 2249-054X. 5. Kumar P (2013) GST (Challenges and implication in Under GST regime, the indirect Indian context), International tax for various sectors has been Research Journal of classified into a simplified tax system. Management Sociology & Internet technologies help to reduce Humanities, 4(1), 1571-1576. manual intervention of tax authorities. 6. NishithaGuptha (2014) - The different rates given by GST “Goods and Service Tax: its council unify tax structure in India. impact on Indian Economy”, The price depends not only on tax rate on CASIRJ, Volume 5, Issue implementation, but, also it is a part of 3, ISSN2319-9202 factors affecting the product. The 7. Nitin Kumar (2014) - “Goods based on primary data and secondary and Service Tax in India-A data investigation and discussion we Way Forward”, GJMS3(6) can conclude this, the GST council and 8. Kankipati Ajay Kumar(2017) government have to take necessary A Journey of Goods and steps to educate about GST in the Services Tax (GST) and country. StructuralImpact of GST on the Growth of GDP in India, References: Advances in Sciences and 1. Abda S (2015), Effects of Humanities,Pp 50-53.ISSN: goods and services tax on 2472-0941, 3(5). Indian economy, International 9. KiranAjeev, Somasekharan T Education and Research M (2019) a study on the Journal, 3(5), pp584-585. impact of GST in FMCG 2. Dr. R. Vasanthagopal (2011) - sector: a consumer review, Economics and Finance, “GST International Journal of in India: A Big leap in Indirect Research and Analytical Taxation System International Reviews, ISSN – 2348- 1269, Journal of Trade” ,Vol 2. 6(1), PP-213-224. 3. Dr.V.R.Nedunchezhian, Mr. 10. 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