Savitribai Phule Pune University, Pune.

CHAPTER-1: INTRODUCTION

1. Introduction of the Topic

“Impact of GST on Small and Medium Size Entrepreneurs in Daman”
1.1Good and Service Tax

Goods and Service Tax (GST) is an indirect tax (or consumption tax) levied in India on
the sale of goods and services. GST is levied at every step in the supply process, but is
refunded to all parties in the chain of supply other than the final consumer. Goods and
services are divided into five tax slabs for collection of tax - 0%, 5%, 12%, 18% and
28%. Petroleum products, alcoholic drinks, electricity, and real estate are taxed separately
by the individual state governments. There is a special rate of 0.25% on rough precious
and semi-precious stones and 3% on gold. In addition a cess of 22% or other rates on top
of 28% GST applies on few items like aerated drinks, luxury cars and tobacco products.
Pre-GST, the statutory tax rate for most goods was about 26.5%, Post-GST, most goods
are expected to be in the 18% tax range. The tax came into effect from July 1, 2017
through the implementation of One Hundred and First Amendment of the Constitution of
India by the Indian government. The tax replaced existing multiple cascading taxes levied
by the central and state governments. The tax rates, rules and regulations are governed by
the GST Council which comprises finance ministers of centre and all the states. GST
simplified a slew of indirect taxes with a unified tax and is therefore expected to
dramatically reshape the country's 2.4 trillion dollar economy. Trucks travel time in
interstate movement dropped by 20%, because of no interstate check posts.

Type of GST

 CGST-Central GST Bill

 IGST-Integrated GST Bill
 UTGST-Union Territory GST Bill
 SGST-GST (Compensation to States) Bill

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1.2 Overview of Topic

GST will subsume all indirect taxes under one umbrella. So there will be one tax one
nation. The cascading effect of tax will be removed by which manufacturing cost will
reduce and it will lead to low prices of the products. The business owner will not have to
pay different taxes as only GST will be levy across India. The compliance will be made
easy as services like registration, return filing will be done online through use of
information technology. But in India still few people have problem regarding
digitalization and for them GST will be a big challenge to be faced by them and they will
have to pay more charges for the accounting and other miscellaneous charge.

As GST is a biggest tax reform till now in India, which is going to develop the nation by
subsuming all indirect taxes. So it is necessary to have proper knowledge about it, to
know the benefits and challenges of goods and services tax. The researcher under the
study looked forward to know the impact of Good and Service tax on the small and
medium size entrepreneurs of Daman. Thus such conceptual studies shall help to
understand the tax reforms in better way.

1.2.1 Overview Of GST

Currently, the Indirect tax structure in India comprises of several taxes and thus
necessitates a number of compliances. We would first analyse in a capsule form the
major Central and the State laws under the present tax regime: Entry 83 of Seventh
schedule confers the power to Central Government to levy Custom duty (Basic duty +
countervailing duty + Special Additional duty) on “Import of goods” in Indian Territory.
Exports are presently exempted from all the duties to promote foreign exchange earnings
and to make locally produced goods competitive in the export market. Under the
Constitution, Entry 84 of List I of Seventh schedule authorises the levy of Central Excise
duty on “Manufacturing activities”. The activities deemed to be manufacture also attract
the Central Excise levy in view of residual Entry 97 of Union List. The levy of Service
tax is imposed in exercise of the power conferred by Entry 97 of Union List of the
Seventh schedule of Constitution, which is a residuary power. Sec 66B of Finance Act,
1994 accedes levy of service tax on all services except for those forming part of Negative

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list or specifically excluded by any exemption notification. Central Sales Tax (CST) is
imposed on sale or purchase of goods (other than newspapers) occurring in the course of
inter-state trade or commerce vide powers granted by Entry 92A of List I of Seventh
schedule. No credit is available of CST paid on inter-state purchases.

Value added tax (VAT) is imposed on all intra-state sale or purchase of goods. VAT laws
are different in different states leading to voluminous compliance and procedural
requirements for the taxpayer. The introduction of GST would mark a clear departure
from the scheme of distribution of fiscal powers envisaged in the Constitution. Goods &
Service tax (GST) is the most talked about topic in the field of indirect taxation today in
India. It will be a game changing reform for Indian economy by developing a common
Indian market and reducing the cascading effect of tax on the cost of goods and services.
It will impact the Tax Structure, Tax Incidence, Tax Computation, Tax Payment,
Compliance, Credit Utilization and Reporting leading to a complete overhaul of the
current indirect tax system. GST will simplify and harmonise the indirect tax regime in
the country. It is expected to reduce cost of production and inflation in the economy,
thereby making the Indian trade and industry more competitive, domestically as well as
internationally. It is also expected that introduction of GST will foster a common or
seamless Indian market and contribute significantly to the growth of the economy.

Key features of the GST regime

The GST system is characterized by the following features:

 GST is applicable on the “supply” of services or goods as opposed to the earlier

concept of taxation on goods manufacture, sale of goods, or service provision.

 GST is a destination-based tax structure unlike the origin-based structure that existed
previously.

 CGST, IGST, and SGST/UTGST are levied at rates that would be mutually agreed
upon by the states and Centre.

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 GST will replace the central taxes mentioned below:

 Duties of Excise (medicinal and toilet needs)
 Central Excise Duty
 Additional Duties of Excise (Goods of Special Importance)
 Additional Duties of Customs (CVD)
 Service Tax
 Special Additional Duty of Customs(SAD)
 Additional Duties of Excise (Textiles and Textile Products)
 Cesses and surcharges

 GST will subsume the following state taxes:

 Central Sales Tax
 Entry Tax
 State VAT
 Luxury Tax
 Purchase Tax
 Entertainment Tax, except that levied by local entities
 Taxes on lotteries and gambling
 Taxes on advertisements
 State cesses and surcharges

 Taxpayers with annual turnover of Rs.20 lakh are exempt from GST. For special
category states, this cut-off is Rs.10 lakh. An option of compounding is available to
small-scale taxpayers with annual turnover of Rs.50 lakh or below. The choice of
threshold exemption and the compounding scheme are optional.

 Input credit of CGST shall be used only for paying CGST on the output. Similarly,
input credit of SGST/UTGST will be used only for the payment of SGST/UTGST.
Therefore, the two channels of input tax credit cannot be cross-utilised, except for the
payment of IGST for inter-state supplies.

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Benefits of GST Implementation

Key benefits of the GST announcement are detailed below:

 As mentioned above, the GST system will create a common national market that
boosts foreign investment.
 The cascading effect of taxation will be mitigated.
 There will be uniformity in laws, rates of tax, and procedures across states.
 The GST regime is expected to boost manufacturing activities and exports. This
would, in turn, generate more employment and lead to the growth of the economy.
 Indian products would be more competitive in the international markets.
 The GST system is likely to improve the overall investment climate in India.
 Uniformity in the rates of SGST and IGST will reduce tax evasion to a large extent.
 The average sales burden experienced by companies is expected to come down,
thereby increasing consumption and boosting subsequent production of goods.
 GST is a simpler system of taxation with smaller number of exemptions.
 There are automated and simplified methods for processes such as registration,
refunds, returns, tax payments, etc.
 All interactions will be handled by the common GSTN website.
 The input tax credit process will be more accurate and transparent, as electronic
matching will be performed.
 The final price of most goods will be lower when taxation is at the new GST rates.
There will also be a seamless input tax credit flow between the manufacturer, retailer,
and supplier of service.
 A huge segment of small-scale retailers may be either exempt from tax or may benefit
from low tax rates based on the compounding scheme. Consumers will further benefit
if purchases are made from these small retailers.

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CHAPTER-2: LITERATURE REVIEW

2. Literature Review
2.1Theoretical Background:

2.1.1 Good and Services:

Goods and Services Tax (GST) is an indirect tax (or consumption tax) imposed
in India on the supply of goods and services. GST is imposed at every step in the
production process, but is meant to be refunded to all parties in the various stages
of production other than the final consumer.
2.1.2 Entrepreneurs:
Entrepreneurship is the process of designing, launching and running a new
business, which is often initially a small business. The people who create these
businesses are called entrepreneurs

2.1.3 Small Size Entrepreneurs:

Entrepreneurs having total gross sale less than Rs. 20,00,000 are said to be small
size entrepreneurs on the basis of registration for GST. As an individual or firm
having total gross sale less than Rs.20,00,000 are not bound to register for GST.

2.1.4 Medium Size Entrepreneurs:

Entrepreneurs having total gross sale more than Rs. 20,00,000 are said to be
Medium size entrepreneurs on the basis of registration for GST. As an individual
or firm having total gross sale more than Rs.20,00,000 are bound to register for
GST.

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2.2 Literature Review:

 “An Enquiry into the Effect of GST on Real Estate Sector of India”-
Niraj Dhar Dubey, Dr Devesh Kumar, Sitaram Pandey-International
Journal of Trend in scientific research and development ISSN No:
2456-6470 volume-1 Issue-6
 GST is one of the revolutionary changes in the indirect taxation system of India
since its independence. The main objective behind implementing it is to avoid the
duplication of taxes. The focus is on one nation one tax. Further, it aims at
increasing the tax base.
 GST can be considered as simple tax system to work with as it has replaced all
other prevailing Indirect taxes. This tax system aims at removing every possibility
of duplication of taxes.
 It is expected to be a confidence booster for the industry. It will attract the interest
of buyer and investor by bringing more transparency in the taxation system. It will
benefit both buyer and seller of the property.

 “The impact of goods and services tax (GST) in Maharashtra”- Ankit

Jain- Surya The Energy Vol. - 4 Issue -2. April - June 2018. Pg. 01 -
05 ISSN : 2454 9169
 GST addresses the full revenue shortfall of states for three years from inception.
In the fourth year, states were to be compensated to the extent of 75% of their
revenue shortfall and in the fifth year to the extent of 50%. Key challenge is to
ensure benefits of both Centre and State from the GST. While the Centre would
levy and collect the central goods and services tax (CGST), states would levy and
collect the states goods and services tax (SGST) on all transactions within a state.
 A GST council controls the new tax regime across Centre and states; it fixes tax
rates, exemptions and other issues. The Centre’s representatives control a third of
the vote in the council. Two central representatives (Finance Minister and
Minister of State for Finance) account for 33.3% of the vote, while 29 finance
ministers account for the remaining 66.7% vote, according to the 122nd

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Constitutional Amendment Bill passed in the Lok Sabha (lower house of

Parliament).
 Researcher felt that states will face a revenue crisis in short term due to
implementation of GST, however this revenue crunch and shortfall will be taken
care in long term and GST will act as "One Nation One Tax". This tax policy will
help in FDI and greater investment will occur in coming days in the country.
Mumbai being the financial capital of India is expected to benefit maximum from
GST as greater investments will lead to greater tax collection and greater tax
collection will help in development of the nation.

 “Impact of GST On The Indian Economy”- Dr. C. J. Priya,

Harshitha M C- International Journal of Trend in scientific research
and development.- ISSN No: 2456-6470 volume-2 Issue-2
 The Goods and Services Tax (GST) is a vast 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.
 Implementation of GST is one of the best decisions taken by the Indian
government. For the same reason, July 1st was celebrated as Financial
Independence Day in India. The transition to the GST regime which is accepted
by 159 countries would not be easy. Confusions and complexity were expected
and will happen.
 Until now, India was a union of 29 small tax economies and 7 union territories
with different levies unit to each state. It is a much accepted and appreciated
regime because it does away with multiple tax rates by centre and state.

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 “Psychological Impact of GST on Small Business”- Abbul Hasan

Khan- International Journal of Trend in scientific research and
development.- ISSN No: 2456-6470 volume-2 Issue-2
 India is very unique by birth it is known for good hospitality and eco friendly
business environment for small and big player equally by RBI survey almost nine
million SMEs are existed in India.
 GST is biggest reform no doubt about it but my study shows that people are not
ready for this radical change and a lot of confusion is built in the mind and heart
of common people. Despite being noble intention and greater importance given by
world bodies things cannot turn better on the ground.
 Continuous meetings of GST council and in every meeting the results are less or
more as per expectations if there is any election period is near so council reacts
differently than routine one. GST is more than just a tax change. It is also a
‘behavior change’ and its successful implementation will depend on how well we
as a nation adapt to the new requirements of doing business. Post the initial
teething troubles, it is expected that GST will bring in much good for all sectors
and all sections of society.

 “A Review on GST execution and its effects”- Amit Ilager-

International Journal of Trend in scientific research and
development.- ISSN No: 2456-6470 volume-2 Issue-5
 In today’s scenario we pay various taxes i.e. Direct and Indirect taxes, which are
felt as burden on us and due to these taxes the corruption is increasing. So, to
overcome from all these taxation system the Central Government has decided to
make one tax Goods and Services Tax (GST). GST is one of the most critical tax
reforms in India which has been long awaiting decision.
 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

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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 Taxes like Sales Tax, VAT etc., will be finished because there will
be one tax system i.e. GST, that will reduce 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 plays a dynamic role
in the growth and development of our country.

 “GST law and practice with customs & FTP”- V S Datey

 The first announcement for introduction of GST was made in budget speech on
28/02/2006 by the then finance minister, Shri P Chidambaram. It was proposed to
introduce nationwide GST from 1/04/2010. It cannot be achieved due to political
differences.
 Article 279A in constitution of India makes provision for constitution of GST
council. GST council decides policies of GST. It will make recommendations to
union and states relating to GST. Union finance minister is chairman of council.
Decision in GST council will be taken with at least 75% of weighted average
voting in favors of the decision. Union government will have 33.33% voting
power and states will have 66.67% voting power.
 The rates of IGST are nil, 0.1%, 0.25%, 3%, 12%, 18%, 28%. In case of supply
within state, CGST will be 50% of IGST rates and SGST/UTGST for supply
within the state or union territory will be 50% of IGST rates. Central Excise Duty
will continue on petroleum products. Tobacco products will be subject to Excise
Duty plus GST.

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 “Indirect taxes”- Yogendra Bangar, Vandana Bangar, Vineet

Sodhani
 Excise Duty is a duty on excisable goods produced or manufactured in India. Entry
84 of the union list of the 8th schedule to the constitution of India empowers the
central government to levy Excise Duty on all goods except on alcoholic liquors
for human consumption, opium, Indian hemp and other narcotic drugs and
narcotics where the state government has the power to levy Excise Duty.
 Taxable event is the event the happening of which attracts the liability to pay tax.
The taxable event in Central Excise is production and manufacture of excisable
goods. Duty is payable at the time of removal of goods from the factory or
warehouse. The relevant date for determining the rate of duty and tariff valuation
shall be the date of actual removal of goods from the factory or warehouse.
 Though the taxable event for levy of Excise Duty is manufactured or production of
excisable goods but a person shall be liable to pay excise duty at the rate prevalent
at the time of clearance of excisable goods from the factory/ warehouse and not at
the rate prevalent at the time of manufacture.

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CHAPTER-3: RESEARCH METHODOLOGY

3. Research Methodology:
3.1 Research Design:

The research design refers to the overall strategy that you choose to integrate the
different components of the study in a coherent an logical way, thereby, ensuring you
will effectively address the research problem; it constitutes the blueprint for the
collection, measurement and analysis of data.

 Type of Research Design:

i. Descriptive Research Design.
ii. Exploratory Research Design.
iii. Analytical Research Design.
i. Descriptive Research Design:

Descriptive Research is a study designed to depict the participants in an accurate way.

The three main ways to collect the information are: Observational, defined as a method of
viewing and recording the participants. Case study, designed as an in-depth study of an
individual or group of individuals.

ii. Exploratory Research Design:

An exploratory research design is conducted about a research problem when there are
few or no earlier studies to refer. The focus is on gaining insights and familiarity for later
investigation or undertaken when problems are in a preliminary stage of investigation.

iii. Analytical Research Design:

Analytical research is a specific type of research that involves critical thinking skills and
the evaluation of facts and information relative to the research being conducted. From
analytical research, a person finds out critical details to add new idea to the material
being produced.

The Researcher has adopted analytical research for the study.

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3.2 Research Methodology:

A research method is a systematic plan for conducting research. Sociologists draw on a

variety of both qualitative and quantitative research method, including experiment,
survey research, participant observation and secondary data. Quantitative method aims to
classify features count them, create statistical models to test hypotheses and explain
observation. Qualitative methods aim for a complete, detailed description of
observations, including the context of events and circumstances.

3.3 Objective of The Study:

 To study the impact of GST on the Tax liability on Small & Medium size
Entrepreneurs.
 To analyse the challenges in adopting the new tax structure in Indian context.

3.4 Sampling Technique:

 Data Collection

Data collection is the process of gathering and measuring information on targeted

variables in an established systematic fashion, which then enables one to answer relevant
questions and outcomes.

 Definition:

Data collection is the systematic approach to gathering and measuring information from a
variety of sources to get a complete and accurate picture of an area of interest. Data
collection enables a person or organization to answer relevant questions, evaluate
outcomes and make predictions about future probabilities and trends.

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 TYPE OF DATA:

Data are mainly collected by following two methods:

 PRIMARY DATA:

Primary data are those which are collected for the first time. It is type of data which are
collected by the researcher himself. Here the data are being collected by the help of
questionnaire.

 SECONARY DATA:

Secondary data are those data that have already been collected by others. These are
usually in journals, periodicals, dailies, research publications, official’s records etc.

 Sources of data of data collection:

The required data for the study are collected from secondary sources. The data are
collected from the online portal of GST and from the various research papers.

3.5 Scope & Limitation Of The Study:

 Scope:
 Positive or negative impact of the GST on the entrepreneurs can be gathered
through this study.
 The burden of tax liability which will be falling on the small and medium size
entrepreneurs can be gathered.
 Different difficulties which were face by the entrepreneurs by the implication of
new tax structure GST can be gathered.
 The increase or decrease in the price of the product can be gathered through this
study.
 The complications which are faced by the entrepreneurs in their daily working
structure can be gathered.
 The complication of filling and taking input tax credit by the entrepreneurs can be
gathered through this study.

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 Limitation:
 The study is based on the survey done among the entrepreneurs and on the
information taken by the Researcher from the internet sources.
 The study is mainly conducted through the help of selected number of sample and
there can be different opinion regarding GST among different people.
 This study is conducted on the base of specific defined area only.

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CHAPTER-4: DATA PRESENTATION & ANALYSIS

4. Data Presentation & Analysis:

4.1 Criterion used in conducting this study:
This study is based on the 50 sample size which consists of 25 small size
entrepreneurs and 25 medium size entrepreneurs of a Union Territory of Daman.
Their Researcher has gathered the different opinion among different entrepreneurs by
filling a questionnaire from them regarding impact of GST on their daily working
structure and annual tax liability.
4.2 Annual Turnover:
Table No: 1
Sr. No. Particulars No. of Entrepreneurs
1 Small Size 25
2 Medium Size 25

Annual Turnover
BELOW ₹20,00,000 ₹20,00,000 & ABOVE

50% 50%

Graph No: 1

Interpretation:

 Researcher found that the entrepreneurs having the annual turnover below
₹20,00,000 are classified as the small size entrepreneurs and the entrepreneurs
having the annual turnover above ₹20,00,000 are classified as the medium size
entrepreneurs as per threshold/ liability for registration for normal registration.
 Equal size of sample is being selected by the researcher for the purpose of
research.

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4.3 Regular Tax Payer:

Table No: 2

Sr. No Particular Type of Entrepreneur Number No. of Entrepreneurs

Small Size 18
1 Yes 42
Medium Size 24
Small Size 7
2 No 8
Medium Size 1

Regular Tax Payer

Yes No

16%

84%

Graph No: 2

Interpretation:

 Researcher has observed that there are 42 regular tax payers and 8 non regular tax
payers.
 The non regular tax payer was from the small size entrepreneurs and there was no
mandatory of filling GST for them.
 There are very less amount of non regular tax payer even though it is not
mandatory for them to pay tax.

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4.4 Difficulty faced while adopting new tax structure.

Table No: 3

Sr. No Particular Type of Entrepreneur Number No. of Entrepreneurs

Small Size 22
1 Yes 37
Medium Size 15
Small Size 3
2 No 13
Medium Size 10

Difficulty faced while adopting new

tax structure.
Yes No

26%

74%

Graph No: 3

Interpretation:

 Researcher has observed that 74% of the people were facing difficulty while
adopting new tax structure.
 Only 26% entrepreneurs were able to adopt the new tax structure easily.

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4.5 Problem while registration under GST in initial stage:

Table No: 4

Sr. No. Particular Type of Entrepreneur Number No. of Entrepreneurs

Small Size 18
1 Yes 31
Medium Size 13
Small Size 7
2 No 19
Medium Size 12

Problem while registration under

GST in intial stage.
Yes No

38%
62%

Graph No: 4

Interpretation:

 Researcher has observed that 62% of the people were having problem in
registration under GST in the initial stage.
 But due to the instant training and guidance from the various sectors now it is
becoming easy and fast to register.

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4.6 Satisfaction with the present tax structure as compare to the past tax
structure:
Table No: 5

Sr. Type of
Particular Number No. of Entrepreneurs
No Entrepreneur
Small Size 2
1 Very Unsatisfied 2
Medium Size 0
Small Size 3
2 Unsatisfied 6
Medium Size 3
Small Size 7
3 Neutral 8
Medium Size 1
Small Size 8
4 Satisfied 20
Medium Size 12
Small Size 5
5 Very Satisfied 14
Medium Size 9

Satisfaction with the present tax structure as

compare to the past tax structure
20

14

8
6
2

Very Unsatisfied Neutral Satisfied Very Satisfied

Unsatisfied

Graph No: 5

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Interpretation:

 Researcher has observed that 20 entrepreneurs were satisfied with the present tax
structure and 14 entrepreneurs were very satisfied with the present tax structure as
compare to the past indirect tax structure.
 Researcher has observed that 8 entrepreneurs were neutrally satisfied and 6
entrepreneurs were unsatisfied and only 2 entrepreneurs were very unsatisfied.

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4.7 Impact on Business Operation.

Table No: 6

Sr. Type of Number

Particular No. of Entrepreneurs
no Entrepreneur
Small Size 1
1 Very Bad Impact 1
Medium Size 0
Small Size 10
2 Bad Impact 17
Medium Size 7
Small Size 6
3 No Impact 10
Medium Size 4
Small Size 5
4 Good Impact 14
Medium Size 9
Small Size 3
5 Very Good Impact 8
Medium Size 5

Impact on Business Operation.

17

14

10
8

Very Bad Impact Bad Impact No Impact Good Impact Very Good
Impact

Graph No: 6

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Interpretation:

 Researcher has observed that there was a bad impact on 17 entrepreneurs and
there was a good impact on 14 entrepreneurs.
 Researcher has observed that there was a no impact on 10 entrepreneurs and there
was a very good impact on 8 entrepreneurs and only 1 entrepreneur was having
very bad impact on his business.

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4.8 Complication in working structure.

Table No. 7

Sr. Type of No. of

Particular Number
no Entrepreneur Entrepreneurs
Small Size 15
1 Yes 33
Medium Size 18
Small Size 10
2 No 17
Medium Size 7

Complication in working structure.

Yes No

34%

66%

Graph No. 7

Interpretation:

 Researcher has observed that there are 66% entrepreneurs who are still facing
complication in their regular working structure as there are many additional things
attached for presenting data as compare to the old tax structure.
 Only 34% entrepreneurs were having no complication in their working structure.

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4.9 GST rate compare to past tax rate:

Table No. 8

Sr. No Particular Type of Entrepreneur Number No. of Entrepreneurs

Small Size 18
1 Yes 32
Medium Size 14
Small Size 7
2 No 18
Medium Size 11

GST rate compare to past tax rate

Yes No

36%

64%

Graph No. 8

Interpretation:

 Researcher has observed that 64% entrepreneurs think that there is a hike in the
present tax structure of the GST as compare to the past tax structure.
 Researcher has observed that 36% of entrepreneurs think that there is no change
in the present tax structure of the GST as compare to the past tax structure.

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4.10 Impact of GST on Annual Sale of Good and Services:

Table No.9

Sr. Type of Entrepreneur

Particular Number No. of Entrepreneurs
No.
Small Size 3
1 Highly Negative 4
Medium Size 1

Small Size 10
2 Negative 18
Medium Size 8

Small Size 2
3 Neutral 5
Medium Size 3

Small Size 8
4 Positive 21
Medium Size 13

Small Size 2
5 Highly Positive 2
Medium Size 0

Impact of GST on Annual Sale

21
18

4 5
2

Highly Negative Negative Neutral Positive Highly Positive

Graph No.9

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 Savitribai Phule Pune University, Pune.

Interpretation:

 Researcher has observed that 21 entrepreneurs were having positive impact on

the annual sale of the good and services after the implication of new tax structure
GST.
 Researcher has observed that 18 entrepreneurs were having negative impact on
their annual sale of the good and services after the implication of the new tax
structure GST.
 The researcher has observed that 4 entrepreneurs were having highly negative
impact, 5 entrepreneurs were having no impact on their annual sale and 2
entrepreneurs were having highly positive impact on their annual sale of the
good and services after the implication of the new tax structure GST.

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4.11 Problem While Filling Tax in GST

Table No.10

Sr. No Particular Type of Entrepreneur Number No. of Entrepreneurs

Small Size 19
1 Yes 35
Medium Size 16
Small Size 6
2 No 15
Medium Size 9

Problem While Filling Tax in GST

Yes No

30%

70%

Graph No.10

Interpretation:

 Researcher has observed that 70% entrepreneurs are having problem in filling
regular tax in GST.
 Researcher has observed that 30% entrepreneurs are not having problem while
filling tax in GST.

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4.12 Problem while getting Input Tax Credit:

Table No. 11

Sr. No Particular Type of Entrepreneur Number No. of Entrepreneurs

Small Size 12
1 Yes 19
Medium Size 7
Small Size 13
2 No 31
Medium Size 18

Problem while getting ITC

Yes No

38%

62%

Graph No.11

Interpretation:

 Researcher has observed that yet 62% entrepreneurs are having problem while
getting input tax credit.
 The researcher has observed that 38% entrepreneurs do not have any problem
while getting input tax credit.

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 Savitribai Phule Pune University, Pune.

4.13 Increase in Accounting charge of Accountant:

Table No.12

Sr. No Particular Type of Entrepreneur Number No. of Entrepreneurs

Small Size 23
1 Yes 28
Medium Size 5
Small Size 2
2 No 22
Medium Size 20

Accounting charge of Accountant

Yes No

44%

56%

Graph No.12

Interpretation:

 Researcher has observed that 56% entrepreneur’s accountant charge has been
increased as they had to pay more charge to the accountant or had to keep new
person having knowledge regarding GST.
 The researcher has observed that there was a very minute or no impact on the
accountant charges of the 44% entrepreneurs.

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4.14 Comparison of Small Size and Medium Size.

Table No.13

Sr.
No Particular Small Size Medium Size
1 Annual Turnover 25 25
Yes No Yes No
2 Regular Tax Payer 18 7 24 1
Difficulty Faced while adopting
3 new tax structure 22 3 15 10
Problem while registration under
4 GST 18 7 13 12
complication in working
5 structure 15 10 18 7
GST rate as compare to past tax
6 rate 18 7 14 11
7 Problem while filing tax in GST 19 6 16 9
8 Problem while getting ITC. 12 13 7 18
Accounting charges of
9 accountant. 23 2 5 20
1 2 3 4 5 1 2 3 4 5
Satisfaction with the present tax
structure as compare to past tax
10 structure. 2 3 7 8 5 0 3 1 12 9
11 Impact on Business operation 1 10 6 5 3 0 7 4 9 5
12 Impact of GST on annual sale 3 10 2 8 2 1 8 3 13 0

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Chapter-5: FINDINGS & CONCLUSION

5. Findings & Conclusion:

5.1 Findings:
 Researcher gathered that most of the regular tax payer was the medium size
entrepreneur and there were less number of small size entrepreneurs who were
paying tax on a regular basis. (Graph No.2)
 Researcher has gathered that there was a high challenges in adopting new tax
structure in the initial stage(Graph No. 3) and also there working structure has
also been became more complicated as compare to the past tax structure. (Graph
No.7)
 Researcher has gathered that entrepreneurs were facing challenges while getting
registered in the initial stage.(Graph No. 4)
 Researcher has gathered that most of the entrepreneurs are satisfied with the new
tax structure as compare to the old tax structure. (Graph No.5)
 There was a negative impact on the business operation in the initial stage of
introducing GST but after continuous usage it became normal for the business
operation. (Graph No. 6)
 The researcher has gathered that entrepreneurs are having complication in their
daily routine work as compare to pre GST. (Graph No. 7)
 Researcher has gathered that there is a hike in the total tax liability of the
entrepreneurs as the rate of tax on certain goods are higher as compare to the old
tax structure. (Graph No. 8)
 There was a high impact on the annual sale of the goods and services on both
small and medium size entrepreneur.(Graph No.9)
 Researcher has gathered that the entrepreneurs are also facing various problems
like filling tax under GST (Graph No.10) and also have problem while availing
input tax credit. (Graph No.11)
 The accounting charges of small size entrepreneur were high as they were not
having trained person for their accounting work and they have to employ
external accountant for their accounting work. (Graph No.12)

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5.2 Conclusion:
 Researcher concluded that there is various developments happening in the
field of new indirect tax structure as the scenario of GST as compare to today
with the GST when it was introduce are totally different.
 Entrepreneurs are accepting the new change occurred in the history of the
indirect tax structure.
 There are various benefit of GST as compare to the old tax structure and the
new tax structure is also updating GST to make it more user friendly
 Due to the online operation of GST error and fraud can be easily traced;
hence corruption can be reducing to minimum.
 There was a high impact on small size entrepreneurs than the medium size
entrepreneur as they had a less professional or expert in their organization.

5.3 Suggestion:
 The Entrepreneur can go for the special GST training through which their
practical and theoretical knowledge regarding GST can be increased through
which they can do their work easily.
 The Entrepreneur can take advantages of new government scheme
PRADHAN MANTRI KAUSHAL VIKASH YOJNA where a special
training regarding GST is being imparted.
 The Entrepreneur can attend various seminar and workshop regarding
awareness of GST to gain valuable knowledge regarding GST.

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