Research Article PERCEPTION of GST in VARANASI DISTRICT of UTTAR PRADESH

International Journal of Agriculture Sciences ISSN: 0975-3710 & E-ISSN: 0975-9107, Volume 10, Issue 20, 2018, pp.-7369-7371. Available online at https://www.bioinfopublication.org/jouarchive.php?opt=&jouid=BPJ0000217

Research Article PERCEPTION OF GST IN VARANASI DISTRICT OF UTTAR PRADESH

MOHAPATRA R.1, JOLIYA P.2*, KAMALVANSHI V.1 AND KUSHWAHA S.1 1Depratment of Agricultural Economics, Institute of Agricultural Sciences, Banaras Hindu University, Varanasi, 221005, India 2ICAR-National Agriculture Science Fund, KAB-I, New Delhi, 110028, India *Corresponding Author: Email - [email protected]

Received: October 15, 2018; Revised: October 25, 2018; Accepted: October 26, 2018; Published: October 30, 2018 Abstract: GST is a revolutionary tax reform introduced in India on 1st July 2017. It promises to infuse fresh vigour into Indian economy by unifying the whole nation into a single market. It eliminates the cascading effect of multiple taxes. It has been a year since its implementation hence it is important to know how people perceive the new tax reform. This research is an exploratory study done in Varanasi by convenient sampling of 100 respondents from Kashi Vidyapeeth Block. To know the perception of people regarding GST, Likert scale and one sample t test is used as the statistical techniques. Keywords: GST, likert scale, one sample t test Citation: Mohapatra R., et al., (2018) Perception of GST in Varanasi district of Uttar Pradesh. International Journal of Agriculture Sciences, ISSN: 0975-3710 & E-ISSN: 0975-9107, Volume 10, Issue 20, pp.- 7369-7371. Copyright: Copyright©2018 Mohapatra R., et al., This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution and reproduction in any medium, provided the original author and source are credited.

Introduction GST-Goods and Services Taxes History of Taxation System of India GST is a destination based consumption taxation system where emphasis is on On the off chance that we break down the history of expense framework, the main supply of goods and services. It paves the way for the realisation of the goal of known arrangement of tax collection was in old Egypt around 3000BC-2000 BC. one nation one tax. It covers the entire gamut of goods and services except these Pharaoh of that time gathered income from the general population. Book of products (crude, petrol, diseal, alcohol, ATF and natural gas) [3]. scriptures likewise said about the distribution of products towards utilization and for diving duty. "Manusmruthy" and "Arthashastra" of India likewise give sign about Features of GST duty instalment. Merchants and Artisans should give 1/5 of their benefits in silver There are three main components of GST- CGST (Central Goods and Services or gold while agriculturists were to pay 1/sixth or 1/eighth or 1/tenth of their Tax), SGST (State Goods and Services Tax) and IGST (Integrated Goods and generation. Arthashastra has said about the timetable, time, way and number of Services Tax). CGST and SGST would be applicable to the intra-state transaction instalments like land income were settled at 1/sixth of the generation. Amid the and the inter-state transaction would be subjected to IGST. There are four tax time of Aurangzeb, he charged assessment on his Hindu subjects by the name slabs for all the goods and services-5%, 12%, 18% and 28%. Rates of CGST and "Jizya". Koutilya additionally depicted in incredible detail the arrangement of SGST would be determined by taking into account the revenue consideration. The assessment organization. In British India Tax framework was first presented in the rates of CGST, SGST and IGST are expected to be equal to revenue neutral rate year 1860 by Sir. James Wilson, first Finance Minister of British India keeping in (RNR). Import of goods and services is subjected to IGST. A common threshold mind the end goal to cover the misfortune maintained by the legislature because exemption of 20 lakhs for both CGST and SGST has been provided for and 10 of the Military Mutiny - 1857. In 1918 another pay assess has actualized and was lakhs for north-eastern states [4-10]. supplanted by another demonstration in 1922. Under British control, they set up managerial and tax collection frameworks. There were two assessments Benefits of GST specifically coordinate expense and aberrant duty. This was stayed in constraint GST will make a common unified market giving a boost to “make in India” up to the evaluation year 1961-62 with various changes now and again. Later campaign and foreign direct investment. There is a reduction in compliance cost. Finance Ministry has presented wage charge Act 1961which was affirmed by the No multiple record keeping, as a result this may lead to decrease in the Parliament. This came in to constrain on first April 1962. This applies to entire investment in the manpower and resources needed for record keeping. Trade and India and Sikkim including Jammu and Kashmir [1]. industry will benefit because of uniform single indirect tax throughout the country and seamless flow of input tax credit. It removes the tax-related barriers at the Apex Body of Taxation in India interstate border. It reduced the logistics cost with more efficient cross-state The central board of revenue under ministry of finance is the apex body charged transportation with improvement in transit time. This will help in removing with administration of both the direct and indirect taxes as a result of Central economic distortions, promotes exports and develop a common national market Board of Revenue Act, 1924.it was further bifurcated into central board of direct [11-15]. taxes (CBDT) and central board of excise and customs (CBEC) with the effect from 1 January 1964 which was brought about by section 3 of the central board of Challenges Faced by GST revenue act, 1963. The direct taxes are looked over by CBDT and indirect taxes Many states are lacking proper infrastructure and manpower to embrace this law by CBEC. Some of the taxes such as property taxes are collected by levied and as it is an IT-driven law. There are many issues regarding registration, carry collected by the municipality [2]. forward of credits, pending refund, review of contracts, change in a taxable event

International Journal of Agriculture Sciences ISSN: 0975-3710&E-ISSN: 0975-9107, Volume 10, Issue 20, 2018 || Bioinfo Publications || 7369 Perception of GST in Varanasi district of Uttar Pradesh

for the incomplete transaction, pending assessments, job work transactions, the survey which shows an increase in indirect taxpayers by 50%. filing of returns etc. India’s public debt is high. There is a unique welfare agenda Table-2 Perceptions of People about GST in Varanasi, N=100 for different states and hence a unified tax regime would not work. India is facing a S Statements Overall Mean high gross fiscal deficit-GDP ratio and hence increasing the tax base may be a 1 GST will increase the tax revenue of the government 4.38 challenge. 2 GST is a good tax reform for India 4.21 3 GST is beneficial in the long run 4.13 4 GST has increased your expenses on luxurious items 4.1 Methodology 5 GST increased the ease of doing business 3.97 Statement of The Problem 6 GST has increased the legal compliances 3.82 The study intends to compute the perception of people regarding GST in Varanasi 7 GST is affecting small business badly 3.47 district of Uttar Pradesh. As GST, a revolutionary tax reform has come into 8 GST has increased prices of most of the commodities 3.29 existence its necessary to know the knowledge and perception of people 9 GST has increased the tax burden on businessman 3.22 10 GST has increased the tax burden on common man 3.1 regarding it. Perception usually defined as the process of interpretation of stimulus 11 GST is difficult to understand 2.99 or else perception may also be defined as the process of interpretation of present 12 GST has affected the purchase of FMCG goods 2.95 stimulus based on past experience. Hence the study is important to know how the 13 India was not ready for the implementation of GST 2.72 people perceive this new tax reform. As a result, the researcher will be able to find The next important aspect which has come out is GST is a good tax reform for out how much people are aware and how much more awareness is needed taking India with a mean value of 4.21 which is because it has increased the into consideration of various stakeholders involved in it [16-23]. transparency to a great extent as everything is recorded and nothing goes out of the ambit of the government. The third most important aspect is that GST is Sampling Design beneficial in long-term with a mean value of 4.13. As this is a new reform initially The study were based on both Primary and Secondary data. Primary data people may face problems regarding its understanding and its functioning, but it is obtained by the interview schedule from 100 respondents of Kashi Vidyapeeth expected that with the due time, they will be able to grasp it and get acquainted block of Varanasi district sampled by the means of convenient sampling while with it. As per the economic survey 2017-18, GDP is expected to grow at a rate of secondary data was collected from books, journals, and websites and so on. 7-7.5% in 2019 overcoming the negative impacts of demonetisation and GST. India has again become the fastest growing economy surpassing China. GST has Tools Used for Analysis increased the expenses on luxurious items has a mean value of 4.1 which has The following statistical tools are used. placed it in the fourth place may be due to a higher tax rate of 28% tax plus cess ➢ Percentage on the luxuries. GST has increased the ease of doing business comes to the fifth ➢ Likert scale place with a mean value of 3.97 as there is a reduction of a multiplicity of taxes. There has been a reduction of compliance costs as there is no multiple record Results and Discussion keeping hence less has to be invested. All the interaction has to be done through The researcher has collected the socio economic profile of the respondents such the GSTN portal – so there will be minimal public interaction. There is a common as age, gender, educational qualifications, occupation and income. The result is procedure for registration of taxpayers, refund of taxes, uniform formats of the tax presented in the [Table-1]. From the above table most of the respondents are return. The sixth important aspect is that GST has increased the legal male (61%). Most of them belonged to the age group of 25-40 years of age (59%). compliances with a mean value of 3.82 which is because all the process has Most of them are graduates (86%). Regarding the income majority of them is become legal. GST is affecting small businesses badly has got a mean value of having income between Rs.40000-Rs.75000 (47%). Majority of respondents are 3.47. According to one of the articles published in the Economic and political salaried (42%). weekly, “huge compliances cost to small businesses may be disproportionate to Table-1 Socio-Economic Profile of Respondents the revenue generated by them. And also mismatching of invoices due to Gender No. of Respondents Percentage technical glitches could hold up the credits, a situation that has been in China and Male 61 61% Female 39 39% Brazil.” This may not be beneficial to the small industries that were previously Total 100 exempted from paying excise duties under small scale industries exemption which Age Groups lets off firm with revenue up to Rs.1.5 crore. GST has increased the tax burden on Below 25 16 16% businessman has got the fifth lowest mean 3.22 because it's actually not true 25-40 59 59% rather than it has made paying taxes easier and has brought transparency to its Above 40 23 23% regime. GST has increased the tax burden on the common man acquires the Total 100 Qualifications fourth lowest place. GST has reduced the taxes on FMCG goods, small cars and U.G. 86 86% others while it has increased the taxes on the luxuries. Hence GST has mixed P.G. 14 14% impact on the common man. GST is difficult to understand acquires the third Total 100 lowest place as most of the people find it easy to understand as all the indirect Income Per Month taxes has been merged into a single tax and due to the various steps were taken Less Than 40000 25 25% 40000-75000 47 47% by the Government for creating awareness has brought a clear image of the new >75000 28 28% tax regime. GST has affected the purchase of FMCG goods has got the second Total 100 lowest score of 2.95 as the taxes of most of the products under FMCG goods has Occupation been reduced. India was not ready for the implementation of GST has got the Bussiness 27 27% lowest mean value of 2.72 which means most of the people have the perception Salaried 42 42% that it was a perfect time for its implementation. Unemployed 31 31% Total 100 Conclusion Source-Primary data From the aforesaid findings, it can be concluded that there is still a lack of [Table-2] shows the statements which were asked of the people and their awareness about the new tax reform and also a deficiency of understanding and respective means. The most important aspect which has come out is that GST has knowledge which can be attributed to various reasons like lack of government increased the tax revenue of the government with the mean value of 4.38 which initiatives towards digitisation, awareness campaigns, lack of internet connectivity, may be due to the awareness about the recent data released in the economic and glitches in GSTIN.

International Journal of Agriculture Sciences ISSN: 0975-3710&E-ISSN: 0975-9107, Volume 10, Issue 20, 2018 || Bioinfo Publications || 7370 Mohapatra R., Joliya P., Kamalvanshi V. and Kushwaha S.

Still people need to be more aware as study has shown that rarely people have Study, 6th International Conference on Recent Trends ion Engineering, basic knowledge about GST. Hence there is a need to take proper steps and Science and Management, 8th January, 2017. initiatives so that people will get know about the benefits of GST and avail it to [19] Prakash D. & Herekar, M. (2012) Indian Streams Research Journal, make it a big success. 2(1). [20] Vasanthagopal R. (2011) International Journal of Trade, Economics Application of research: Study helpful for GST applications and benefits and Finance, 2(2), 144–147. [21] Venkadasalam S. (2014) Implementation of Goods and Service Tax Research Category: Agriculture Socio-economics (GST): An Analysis ofn the ASEAN States using Least Squares Dummy Variable Model (LSDVM) International Conference on Abbreviations: GST-Goods and Services Taxes Economics. Education and Humanities (ICEEH'14) Dec, 10-11. [22] Venkadasalam S. (2014) Implementation of Goods and Service Tax Acknowledgement / Funding: Authors are thankful to Department of Agricultural (GST): An Analysis ofn the ASEAN States using Least Squares Economics, Institute of Agricultural Sciences, Banaras Hindu University, Varanasi, Dummy Variable Model (LSDVM) International Conference on 221005, India. Economics. Education and Humanities (ICEEH'14) Dec, 10-11. [23] Venkadasalam Saravanan (2014) Implementation of Goods and *Research Guide or Chairperson of research: Dr S. Kushwaha Service Tax (GST): An Analysis on the ASEAN States using Least University: Banaras Hindu University, Varanasi, 221005, India Squares Dummy Variable Model (LSDVM)International Conference on Research project name or number: PhD Thesis Economics, Education and Humanities (ICEEH'14) Dec. 10-11, 2014 Bali (Indonesia), 7-9. Author Contributions: All author equally contributed

Author statement: All authors read, reviewed, agree and approved the final manuscript

Conflict of Interest: None declared

Ethical approval: This article does not contain any studies with human participants or animals performed by any of the authors.

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International Journal of Agriculture Sciences ISSN: 0975-3710&E-ISSN: 0975-9107, Volume 10, Issue 20, 2018 || Bioinfo Publications || 7371