A trigonal phase existing only as small patches on chemically exfoliated few layer, thermodynamically stable 1H phase of MoS2 is believed to influence critically properties of MoS2 based devices. This phase has been most often attributed to the metallic 1T phase. We investigate the electronic structure of chemically exfoliated MoS2 few layered systems using spatially resolved (lesser than 120 nm resolution) photoemission spectroscopy and Raman spectroscopy in conjunction with state-of-the-art electronic structure calculations. On the basis of these results, we establish that the ground state of this phase is a small gap (~90 meV) semiconductor in contrast to most claims in the literature; we also identify the specific trigonal (1T) structure it has among many suggested ones.