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The Goods and services tax, implemented on July 1, 2017, it is regarded as a taxation reform till date implemented in India since independence in 1947. GST was implemented in April 2010 but was postponed due to conflicting of stakeholders and political issues. GST is one of the most critical tax reforms in India which has been long awaiting decision. It is a comprehensive tax system that will subsume all indirect taxes of State and Central Governments and whole economy into a seamless nation in national market.
It is expected to remove the burden of the 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 a blanket of Indirect Tax that will subsume several indirect state and federal taxes such as Value Added Tax (VAT) and Excise Duty and different State Taxes, Central Surcharges, Entertainment Tax, Luxury Tax and many more.
GST was firstly introduced in France in 1954, with the introduction of GST France became the first country ever to introduce GST. Its introduction was requiring because very high sales taxes and tariffs encourage cheating and smuggling. After France it was adopted by 165 nations. Now, India is also going to adopt it. After its implementation in India, India will become 166th nation to adopt it In India before 16 years, in 2000 Shri Atal BihariVajpy brought this system but no one paid attention on it and due to some reasons it was not passed.
On 28th February 2006, finance minister P. Chidambaram had announced the target date for implementation of GST on 1 April, 2010. The Constitution (122nd Amendment) Bill was introduced in the LokSabha by Finance Minister Arun Jaitely, on 19th December 2014, and passed by the house on 6th May 2015. The bill was passed by LokSabha on August 2016. The bill, after ratification by the States, received assent from President Pranab Mukherjee on 8th September 2016. GST bill is brought for the reason that the different taxes paid by us on different rates would be brought under one roof so that all the taxes may get cancelled and only one tax is paid which is GST. Goods and Services Tax (GST) will include one tax one nation; this statement was given by the honorable Prime Minister Mr. Narandra Modi of India. In today’s scenario, we pay 30% to 35% tax on different things but with GST it will be only 18%, which shows it will be beneficial and one main thing that GST will remain similar in all nations.
Rationalization and harmonization of commodity taxation is a serious problem of the Indian tax system the roof of this problem lies in federal structure of the Indian constitution which makes intricate arrangement for the division of taxation powers between the central and state government. The problem has been further compounded by the confrontation politics pursed by different political parties ruling at the Centre and in the states. Many trading communities, enterprises dealer at the general public are not aware of GST in its fullest context. In the existing all tax structure there are problem of dual tax system on commodity. This study makes an attempt to study the GST as its implementation process among 32 district Tirunelveli is one of the popular business and trading district in Tamilnadu. The researcher believes that conducting a detailed and comprehensive study on impact of GST in this district will reflect in Tamilnadu. Hence the research has made an attempt to undertake the research study in the title of “A Study on Impact of Gst in Tirunelveli District”.
The present study has been designed to contain an analysis of GST payer’s problems. In Tamilnadu there are 32 districting the confines to the district of Tirunelveli in Tamilnadu. This study is mainly focused on impact of GST in manufacturer and dealers. Under GST more than 500 commodities were covered from that the researcher has taken only 6 essential commodities such as consumer durables, pharmaceutical product, textile, real estate, cement, small enterprises. Hence the research has focused and analyzed the problem of GST payer and introduction and implementation of GST.
The following are the objectives of the present study.
The study is based on the collection of primary and secondary data was used. The primary data were collected from GST payers in Tirunelveli district with the help of the well-structured questionnaire. The secondary data were collected from the records of sales tax department in Tirunelveli district, journal, magazine, Tirunelveli chamber of commerce and from web sources. The purpose of analysis data as a way of comparing, contrasting and describing such data, descriptive statistics was used. The data collected from both primary and secondary sources were arranged and presented in the tables. The data were analyzed and interpreted with the help of various statistical tools.
The researcher collected primary data through a structured questionnaire for the GST payers in the various businesses. The secondary data were collected from journal, periodicals, books and reports, published articles and also through the data provided by the commercial tax office Tirunelveli, to collect more information relevant to this project. The primary data were collected from the respondents have been classified and tabulated for the purpose of analysis of the data have been scrutinized by using statistical packages for (spss) with appropriate coding for drawing of the inference.
The researcher conducted a pilot study among 30 respondents through the questionnaire. After the pilot study the questionnaire was modified based on the suggestions given by the respondents and the hurdles contributions which were faced by the researcher at the time of the pilot study.
Tirunelveli district has Taluk namely Ambasamudram, Nanguneri, Palayamkottai, Sivagiri, Sankarankoil, Shenkottai, Tenkasi, Radhapuram, Alangulam, Veerakelamputhur, Tirunelveli, among the total number of GST registered the research has 5 percent as sample and therefore of the total population that is 120 respondents (approx.) were selected on the basis of simple random sampling technique.
To give a specific focus to be objectives the following hypotheses have been formulated to analyses the impact of GST.
The study suffers from the respondents recall bias and the inherent limitations of cross-sectional studies namely the absence of proper form of records with the sample GST payers. These had been minimized by suitable interaction as well as cross-checks then and there with the commercial tax office. As the study is based on opinion provided by the sample respondents, result of the study cannot be generalized and should be used with caution.
The main motive of implementing GST is to increase the revenue to the government by preventing tax evasions and unfair trade practices, prevailing in the modern market. The problem has been further computed by the confrontation political parties ruling at the centre and in the states. The GST system is basically structured to simplify current indirect tax system in India. A well designed GST is an attractive method to get rid of deformation of the existing process of multiple taxation also government has promised that GST will reduce the compliance burden at present there will be no distinction between imported and Indian goods & they would be taxed at the same rate. Many indirect Indian taxes like sales tax, VAT etc., will be finished because there will be one tax system i.e. GST, that will face reducing compliance present burden. GST will face many challenges after its implementation and will result to give many benefits. In overall through this study we conclude that GST play a dynamic role in the growth and development of our country.
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