INTRODUCTION:

Goods and Services Tax is applicable to whole India since 1st July 2017. It was a historical reform in the Indian indirect taxation system. The entire nation came under the single roof for consumption and manufacturing of goods and services. GST has removed the cascading effect of old taxation system and it resulted in decline of cost of goods and services in India. This paper is an attempt to explore level of understanding about common idea of goods and services tax and to evaluate the perspicacity of customers about impact of GST on prices of goods and services. GST has given more contribution than its limitation in favour of the growth of our economy. After execution of GST, government of India has been arranging awareness programme continuously to aware the different stakeholders.

EXISTING LITERATURE:

GST affected the consumption and saving of consumers in Canada over a period of time. It resulted in change of the private spending patterns in Canada (Carvaloh, and Lian, 2010) and similar studies found that GST structure has no significant effect on the spending pattern of the consumers (Gupta, and Agarwal, 2018, Dey. et. al., 2020). GST collection and compliance has affected in the property sector because the number of compliances increased due to introduction of GST (Claus, 2014) and hence in the same way tax collection of govt. of India has increased (Garg, 2014). Retailers and dealers have faced many problems in Eranakulam district because they have no knowledge about GST and lack of sufficient IT infrastructure after execution of GST (George, and Padmadas, 2020) and similar studies found that the retailers supported the government of India for execution of GST (Antony, and Johan, 2020; Priya M G, and Davis, 2020). Introduction of GST brought favourable environment for the cinema industry. It resulted, movie theatres have positively benefited among them (Tony, and Abraham, 2020). Consumer price index groups have no effect before three months and after three months in execution of GST in Australia (Valadkhani, 2005). It was found that GST has load for the insurance products irrespective of govt. or private insurance programmes (Sivaprakash, and Raj, 2017). E-commerce business has occupied the second largest position in the world. Hence after introduction of GST, e-commerce industry has affected largely in MSME sectors in India (Sudhanesh. et.al., 2018). Similarly, GST structure has reduced the operating cost as well as logistic and warehousing cost of e-commerce industries (Kakkar, 2020). GST has no impact on SEZs areas because of duty free region. It facilitated exports as well as setting of manufacturing units in that region (Rastogi, and Agarwal, 2019). GST brought economic wellbeing for the nation as well as strengthens the tax regime in India (Mussaiyid, 2016). After execution of GST, everybody got benefited who were the part of the economy such as consumers and government etc. but it gave most favourable circumstance to the cement industries, media and film industries (Nandagopal, 2017). Similarly, it found that the highest beneficiaries of GST were food and beverages companies but the hotel and restaurant association has requested for reducing the slab rate to GST council (Muralidharan, 2020; Panwar, and Patra, 2017). Hence similar result found about travel and tourism industry (Paul, et al., 2020). GST affected the small and medium enterprises of textile industry in India. It was found that small and medium enterprises have lost their income level and sales volume (Priya M G, and Babu, 2020; Chakraborty, 2018). Similarly, while small businesses faced the new problem, they solved it immediately through its practical work experience. GST has more cost effectiveness then the old taxation system (Ehrich, and Billett, 2006; Agarwal, et al., 2018). The working system of GST has influenced in different cases of FMCG industries. It resulted; GST has affected the pricing and working capital etc. of FMCG companies (Kumar, and Kumar, 2017). Telecom industry has faced many problems from their existence in the market. While introduction of GST, it has affected their pricing and sales volume largely (Benedict, et al., 2020). While a change in the regressive tax structure has affected the welfare of household including zero rated food items for goods and services tax in New Zealand. It concluded that the groups of house-hold have faced similar problems (Ball, et al., 2014; Hassan and Sinning, 2008).

OBJECTIVES OF THE STUDY:

Though numbers of research have been conducted during these forty months on impact of GST on Indian economy in general, few authors or researchers have tried to study on specific sectors also. Most of the papers are theoretical and overall opinion was based on secondary data or media output (Dey and Jena, 2018). The primary objective of this study is to:

· Study the level of understanding about GST among the Customers in Odisha

· Assess their perspicacity about impact of GST on price.

DATA AND METHODOLOGY:

The present study is both analytical and empirical in nature. The sample domain for the study is Odisha state. On the basis of responses, we have categorised the sample under three major cities i.e. Cuttack, Barhampur and Sambalpur and others. These cities are major income generating domain and having most business centres covering eastern and western zones of the State. The sample size is 450 respondents covering three cities. Random sampling method is used to collect data through a structured close ended questionnaire. The questionnaire consists of three parts; part-1 collects the basis profile of the respondents, part-2 consists of thirteen questions to explore their understanding and awareness of GST in general and part-3 consists of fifteen goods and services specific questions to assess their perception regarding impact of GST on spending and cost behaviour. All data have been collected in the month of August and September of 2020. Out of 450 respondents, only 401 respondents were found to have filled up all aspect completely and hence our sample for all practical purpose is 401. In the courses of analysis, various statistical tools like tables, diagrams and techniques like Arithmetic Mean, Standard Deviation, Co-efficient of variation, and Chi-square, etc. have been used to attain the desired objectives. We have used statistical software packages like SPSS, Excel for analysing data.

RESULTS AND DISCUSSION:

To test consistency of the responses, we have used Cronbach’s alpha reliability test and the results are appended in table-1 and table-2. The cronbach’s Alpha value is 0.905 which indicates a high level of consistency for this questionnaire. Further the variance of responses is also very low i.e. 0.009 of the total 15 questions.

Table-1: Reliability Statistics

Cronbach's Alpha	Cronbach's Alpha Based on Standardized Items	N of Items
0.905	0.906	15

Source: Authors calculations

Table-3 provides a descriptive profile of the sample considered in this study. Total 401 respondents have been categorised with various demographic variables. Out of total respondents, 54.4% represents male while the rest are female. Majority of the respondents i.e. 90% of the sample belong to the age group of 18-30 while the rest are above 30 years. So far education is concerned, 62.60% is from the matriculation to graduation level and 36.90% belongs to above graduation level. The reason behind such type of responses is upper age group and below matriculation customers express their unwillingness to participate in this survey. Similarly, 75.1% of total respondents are students, 13.2% are service holders and 9.5% represents business and profession. 72.3% responses are from the retail customers those who purchases for their own domestic consumption and rest are institutional customers.

Descriptive Statistics:

Table-3: Sample Profile

Category	Demographic Profile	No. of Respondents	Percentage
Gender	Male	218	54.4
Gender	Female	183	45.6
Age	18-30	361	90.0
	31-45	33	8.20
	46-60	4	1.00
	Above 60	3	0.80
Educational Qualification	Below Matriculation	2	0.50
	10^th to Graduation	251	62.60
	Above Graduation	148	36.90
Profession	Housewife	9	2.20
	Students	301	75.10
	Service Holders	53	13.2
	Self Employed/Business	12	3.00
	Professional	26	6.50
Geographical Location	Cuttack/Bhubaneswar	220	54.90
	Berhampur	23	5.70
	Sambalpur	16	4.00
	Other	142	35.40
Type of Customers	Retail	290	72.30
Type of Customers	Institutional	111	27.70
Total		401	100.00

Source: Authors calculations

Null Hypothesis-1:

Opinion of common idea of GST is not associated with the demographic profile.

To test this assumption, we have applied chi-square test and results are shown in table-4. From the table it is clear that the p-values are more than 0.05 at 5% level of significance in all demographic profile, we find no evidence to reject null hypothesis. Hence, we conclude that response of common idea about GST is not associated with any demographic profile.

Null Hypothesis-2:

Opinion of knowledge about GST is not associated with the demographic profile.

To test this assumption, we have applied chi-square test and results are shown in table-5. From the table it is clear that p-value with respect to age group (0.001), educational qualification (0.000), profession (0.000), location (0.017) and type of customers (0.000) are less than 0.05 at 5% level of significance and hence null hypothesis is rejected. We conclude that the response of knowledge about GST is associated with demographic profile including age, educational qualification, profession, location and type of customers. While for other demographic aspect i.e. gender the p-value (0.063) is more than 0.05 which indicates that response of knowledge about GST is not associated with demographic profile.

Table-4: Perception of Customers towards Common Idea of GST

Gender	Yes	No	χ2	P-Value
Male	212	6	0.131	0.717
Female	179	4	0.131	0.717
Age Group
18-30	353	8	2.020	0.568
31-45	31	2
46-60	4	0
61 and Above	3	0
Educational Qualification
Up to 10th	2	0	0.274	0.872
10th to Graduation	244	7
Above graduation	145	3
Profession
House wife	8	1	4.112	0.391
Student	294	7
Service holder	51	2
Self employed / business	12	0
Profession	26	0
Place of Stay
Cuttack / Bhubaneswar	217	3	3.025	0.388
Berhampur	22	1
Sambalpur	15	1
Other	137	5
Type of Customer
Retail (Purchased for own consumption)	283	7	.028	0.868
Institutional (Purchased for organisational consumption)	108	3	.028	0.868

Source: Authors calculations

Null Hypothesis-3:

Opinion of respondents about tax as an important determinant for purchase decision is independent of demographic profile.

To test this assumption, we have applied chi-square test and results are shown in table-6. From the table it is clear that p-value with respect to educational qualification (0.004), profession (0.000) and location (0.003) are less than 0.05 at 5% level of significance and hence null hypothesis is rejected. We conclude that the opinion of respondents about tax as an important determinant for purchase decision is dependent of demographic profile. While for other demographic aspect i.e. gender, age group and type of customers, the p-value are more than 0.05 which indicates that the null hypothesis is accepted. It means opinion of respondents about tax as an important determinant for purchase decision is independent of demographic profile.

Table-5: Source of obtaining idea about GST by Customers

Gender	News / Media	Friends / Colleague	Practice / Experience	Market / Seller	χ2	P-Value
Male	99	34	39	46	7.296	0.063
Female	106	27	21	29	7.296	0.063
Age group
18-30	185	61	48	67	29.148	0.001
31-45	17	0	11	5
46-60	3	0	1	0
61 and above	0	0	0	3
Educational Qualification
up to 10th	1	1	0	0	41.761	0.000
10th to graduation	126	48	19	58
above graduation	78	12	41	17
Profession
House wife	7	0	0	2	47.010	0.000
Student	148	60	33	60
Service holder	35	0	14	4
Self employed / business	6	0	3	3
Profession	9	1	10	6
Place of stay
Cuttack / Bhubaneswar	106	36	41	37	20.118	0.017
Berhampur	17	0	2	4
Sambalpur	12	1	3	0
Other	70	24	14	34
Type of Customer
Retail (Purchased for own consumption)	177	24	50	39	72.373	0.000
Institutional (Purchased for organisational consumption)	28	37	10	36	72.373	0.000

Source: Authors calculations

Table-6: Perception of Customers towards Tax Play an important consideration for purchase decision

Gender	Yes, For All Purchases	No, Not All	Yes, For Selected Purchases	No Idea	χ2	P-Value
Male	87	19	106	6	5.328	0.149
Female	63	10	99	11	5.328	0.149
Age group
18-30	140	26	179	16	6.812	0.657
31-45	7	3	22	1
46-60	1	0	3	0
61 and above	2	0	1	0
Educational Qualification
up to 10th	0	1	0	1	19.423	0.004
10th to graduation	98	19	122	12
above graduation	52	9	83	4
Profession
House wife	0	0	5	4	53.449	0.000
Student	125	19	147	10
Service holder	16	5	31	1
Self employed / business	1	3	8	0
Profession	8	2	14	2
Place of stay
Cuttack / Bhubaneswar	81	14	118	7	25.123	0.003
Berhampur	3	1	15	4
Sambalpur	5	4	6	1
Other	61	10	66	5
Type of Customer
Retail (Purchased for own consumption)	103	18	156	13	4.130	0.248
Institutional (Purchased for organisational consumption)	47	11	49	4	4.130	0.248

Source: Authors calculations

Table-7 Paired Samples Test of Opinion on increase cost of services

		Paired Differences					t	df	Sig. (2-tailed)
		Mean	Std. Deviation	Std. Error Mean	95% Confidence Interval of the Difference
					Lower	Upper
Pair 1	Services – Services	2.54167	43.39316	17.71518	208.62833	299.70500	14.347	5	.000

Source: Authors calculations

Table-8 Paired Samples Test of Opinion on increase cost of goods

		Paired Differences					t	df	Sig. (2-tailed)
		Mean	Std. Deviation	Std. Error Mean	95% Confidence Interval of the Difference
					Lower	Upper
Pair 1	Goods – Goods	2.64556	37.45368	12.48456	235.76611	293.34500	21.191	8	.000

Source: Authors calculations

Null Hypothesis-4:

Average customers’ opinions on increase cost of services are equal.

To test this assumption, we have applied paired test and results are shown in table-7. From the table it is clear that p-value (0.000) is less than 0.05 at 5% level of significance and hence null hypothesis is rejected. We conclude that opinion of customers’ regarding increase cost of services after GST differ from customer to customer.

Null Hypothesis-5:

Average customers’ opinions on increase cost of goods are equal.

To test this assumption, we have applied paired t test and results are shown in table-8. From the table it is clear that p-value (0.000) is less than 0.05 at 5% level of significance and hence null hypothesis is rejected. We conclude that opinion of customers’ regarding increase cost of goods after GST differ from customer to customer.

CONCLUSION:

Goods and Services tax is undoubtedly a welcome step in the indirect tax system of our country and it is expected to provide a positive outcome to our economy. Though it is almost four years since its implementation, our economy is still awaiting to get the maximum benefits of this tax reforms. The present global covid-19 pandemic has been the obstacle in our economic development. Form our study, it is clear that more than 95% of customers are aware something about GST and news and electronic means plays an important role in this regard. Further, opinion of respondents about tax as an important determinant for purchase decision is independent of demographic profile. Similarly, opinion of customers’ regarding increase in cost of services and goods after GST vary from customer to customer.

ACKNOWLEDGEMENT:

The authors are thankful for OURIIP Seed Fund Project support to the Odisha State Higher Education Council, Department of Higher Education, Government of Odisha.

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Received on 17.12.2021 Modified on 29.12.2021

Asian Journal of Management. 2022;13(2):155-159.

DOI: 10.52711/2321-5763.2022.00028

	Mean	Minimum	Maximum	Range	Maximum / Minimum	Variance	N of Items
Inter-Item Correlations	.392	.192	.588	.396	3.060	.009	15