A

Project Report On
A DETAIL STUDY ON GOOD SERVICE TAX IN INDIA
In the partial fulfillment of the Degree of
BACHELOR OF BUSSINESS
ADMINISTRATION

(SESSION 2021-2024)

SUBMITTED TO: SUBMITTED BY:

MRS.HIMANI MAM GARIMA TYAGI
(Asstt. Professor) BBA(SEM -V)
ROLL NO :210694105016

DEV BHOOMI GROUP OF

INSTITUTION SAHARANPUR
 DECLARATION
I here-by declare that the project with title
―A Detail Study on good service tax in
INDIA‘‘ has been completed by me in
partial fulfillment of Bachelor of Business
Administration degree examination– as
prescribed by Dev Bhoomi Group of Institutions,
Saharanpur and this has not been submitted for
any other examination and does not form the part
of any other course undertaken by me.
 ACKNOWLEDGEMENT

With immense pride and sense of gratitude, I take this

golden opportunity to express my sincere regards to
Deepak Raj Sir, the Director, Dev Bhoomi Group of
Institution Saharanpur.

I am extremely thankful to my Project Guide. I tender

my sincere regards to Himani Mam for giving me
outstanding guidance, enthusiastic suggestions and
invaluable encouragement which helped me in the
Completion of the project.

I will fail in my duty if I do not thank the Non-Teaching

staff of the college for their Co-operation.
I would like to thank all those who helped me in making
this project complete and successful.
 INDEX
S. No. PARTICULARS PAGE No.

1. Introduction

 Introduction of Tax

 Introduction of GST

2. GST Return

3. Research Study

 Objectives

 Needs of study

 Hypothesis

 Scope of the study

4. Research Methodology

5. SWOT Analysis of GST

6. Data Analysis and Interpretation

7. Findings, Conclusion and Limitations

8. Suggestions

9. Bibliography

10. Appendices

 Questionnaire
 CHAPTER 1
INTRODUCTION
 TAX
CONCEPT OF TAX:
A TAX is a compulsory financial charge or some other type of levy imposed
on a taxpayer (an individual or legal entity) by a governmental organization in order to
fund government spending and various public expenditures (regional, local, or national)
and tax compliance refers to policy actions and individual behavior aimed at ensuring
that taxpayers are paying the right amount of tax
at the right time and securing the correct tax allowances and tax reliefs.
The first known taxation took place in Ancient Egypt around 3000–2800 BC.
A failure to pay in a timely manner (non-compliance), along with evasion of or
resistance to taxation, is punishable by law. Taxes consist of direct or indirect taxes and
may be paid in money or as its labor equivalent. Most countries
have a tax system in place, in order to pay for public, common, or agreed national needs
and for the functions of government. Some levy a flat
Percentage rate of taxation on personal annual income, but most scale taxes
is progressive based on brackets of annual income amounts? Most countries charge a
tax on an individual's income as well as on corporate income.
Countries or subunits often also impose wealth taxes, inheritance taxes, estate taxes,
gift taxes, property taxes, sales taxes, use taxes, payroll taxes, duties and/or tariffs. In
economic terms, taxation transfers wealth from households or businesses to the
government. This has effects that can both increase and
reduce economic growth and economic welfare. Consequently, taxation is a highly
debated topic.

MEANING OF TAX: Taxes are mandatory contributions levied on individuals or

corporations by a government entity whether local, regional, or national. Tax revenues
finance government activities, including public works and services such as roads and
schools, or programs such as Social Security and Medicare. In economics, taxes fall on
whoever pays the burden of the tax, whether this is the entity being taxed, such as a
business, or the end consumers of the business‘s goods. From an accounting
perspective, there are various taxes to consider, including payroll taxes, federal and
state income taxes, and sales taxes.

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 IMPORTANT POINTS
 Taxes are mandatory contributions collected by governments.
 The Internal Revenue Service (IRS) collects federal income taxes in the United States.
 There are many forms of taxes and most are applied as a percentage of a monetary
 exchange (for example, when income is earned or a sales transaction is completed).
 Other forms of taxes, such as property taxes, are applied based on the assessed value of a
 held asset.
 Understanding what triggers a tax situation can enable taxpayers to manage their
finances
 to minimize the impact of taxes.

FEATURES OF TAX

 The main characteristic features of a tax are as follows:

 A tax is a compulsory payment to be paid by the citizens who are liable to pay it. Hence,
refusal
 to pay a tax is a punishable offence.
 There is no direct quid-pro-quo between the tax payers and the public authority.
 A tax is levied to meet public expenditure incurred by the government in the general
interest of
 the nation.
 A tax is payable regularly and periodically as determined by the taxing authority.
 A tax is a legal correction.

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TYPES OF TAXS
There are two main categories of taxes, which are further sub-divided into other
categories. The two major categories are direct tax and indirect tax. There are also
minor cess taxes that fall into different sub-categories. Within the Income Tax Act,
there are different acts that govern these taxes.

1.DIRECT TAX
Direct tax is tax that are to be paid directly to the government by the individual or
legal entity. Direct taxes are overlooked by the Central Board of Direct Taxes
(CBDT). Direct taxes cannot be transferred to any other individual or legal entity.

Sub-categories of Direct Taxes

The following are the sub-categories of direct taxes:

 Income tax: This is the tax that is levied on the annual income or the profits which is
directly paid to the government. Everyone who earns any kind of income is liable to
pay income tax. For individuals below 60 years of age, the tax exemption limit is Rs.2.5
lakh per annum. For individuals between the age of 60 and 80, the tax exemption limit is
Rs.3 lakh. For individuals above the age of 80, the tax exemption limit is Rs.5 lakh.There
are different tax slabs for different income amounts. Apart from individuals, legal entities
are also liable to pay taxes. These include all Artificial Judicial Persons, Hindu Undivided
Family (HUF), Body of Individuals (BOI), Association of Persons (AOP), companies,
local firms, and local authorities.
 Capital gains: Capital gains tax is levied on the sale of a property or money received
through an investment. It could be from either short-term or long-term capital gains from
an investment. This includes all exchanges made in kind that is weighed against its value.
Securities transaction Tax: STT is levied on stock market and securities trading. The tax
is levied on the price of the share as well as securities traded on the ISE (Indian Stock
Exchange).
 Prerequisite Tax: These are taxes that are levied on the different benefits and perks that
are provided by a company to its employees. The purpose of the benefits and perks, whether
it is official or personal, is to be defined.
 Corporate tax: The income tax paid by a company is defined as the corporate tax. It is
based on the different slabs that the revenue falls under. The sub-categories of corporate
taxes are as follows

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o Dividend distribution tax (DDT): This tax is levied on the dividends thatcompanies pay
tthe investors. It applies tthe net or gross income that an investorreceives from the
investment.

o Fringe benefit tax (FBT): This is tax levied on the fringe benefits that an employee
receives from the company. This include expenses related taccommodation,
transportation, leave travel allowance, entertainment, retirement fund contribution by
the employee, employee welfare, Employee Stock Ownership Plan (ESOP), etc.

o Minimum Alternative Tax (MAT): Companies pay the IT Department through MAT
which is governed by Section 115JA of the IT Act. Companies that are exempt from
MAT are those that are in the power and infrastructure sectors.

2. INDIRECT TAX
Taxes that are levied on services and products are called indirect tax. Indirect taxes are
collected by the seller of the service or product. The tax is added to the price of the
products and services. It increases the price of the product or service. There is only one
indirect tax levied by the government currently. This is called GST or the Goods and
Services Tax.

GST: This is a consumption tax that is levied on the supply of services and goods in India.
Every step of the production process of any goods or value-added services is subject to the
imposition of GST. It is supposed to be refunded to the parties that are involved in the
production process (and not the final consumer).

GST resulted in the elimination of other kinds of taxes and charges such as Value Added
Tax (VAT), octroi, customs duty, Central Value Added Tax (CENVAT), as well as
customs and excise taxes. The products or services that are not taxed under GST are
electricity, alcoholic drinks, and petroleum products. These are taxed as per the previous
tax regime by the individual state governments.

3. OTHER TAXES
Other taxes are minor revenue generators and are small cess taxes. The various sub-
categories of other taxes are as follows:
o Property tax: This is also called Real Estate Tax or Municipal Tax. Residential and
commercial property owners are subject to property tax. It is used for the maintenance of
some of the fundamental civil services. Property tax is levied by the municipal bodies
based in each city.

o Professional tax: This employment tax is levied on those who practice a profession or
earna salaried income such as lawyers, chartered accountants, doctors, etc. This tax differs
from state to state. Not all states levy professional tax.
o Entertainment tax: This is tax that is levied on television series, movies, exhibitions, etc.
The tax is levied on the gross collections from the earnings. Entertainment tax also
referred as amusement tax.
o Registration fees, stamp duty, transfer tax: These are collected in addition to or as a
supplement to property tax at the time of purchasing a property.
o Education cess: This is levied to fund the educational programs launched and maintained
by the government of India.
o Entry tax: This is tax that is levied on the products or goods that enter a state, specifically
through e-commerce establishments, and is applicable in the states of Delhi, Assam,
Gujarat, Madhya Pradesh, etc.

o Road tax and toll tax: This tax is used for the maintenance of roads and toll infrastructure.

INDIAN TAX STRUCTURE

Tax structure in India is a three-tier federal structure. The central government,
stategovernments, and local municipal bodies make up this structure. Article 256 of the
constitutionstates that ―No tax shall be levied or collected except by the authority of law‖.
Hence, each andevery tax that is collected needs to backed by an accompanying law.
Tax system in India
The tax system in India allows for two types of taxes—Direct and Indirect Tax.
 Direct Tax:
Direct Tax is levied directly on individuals and corporate entities. This tax cannot be
transferred or borne by anybody else. Examples of direct tax include income tax, wealth
tax, gift tax, capital gains tax.
Income tax is the most popular tax within this section. Levied on individuals on the
income earned with different tax slabs for income levels. The term ‗individuals‘ includes
individuals, Hindu Undivided Family (HUF), Company, firm, Co-operative Societies,
Trusts.

Indirect Tax:
Indirect taxes are taxes which are indirectly levied on the public through goods and
services. The sellers of the goods and services collect the tax which is then collected by
the government bodies.
 Value Added Tax (VAT)– A sales tax levied on goods sold in the state. The rate
depends on the government.
 Octroi Tax– Levied on goods which move from one state to another. The rates depend
on the state governments.
 Service Tax– Government levies the tax on service providers.
 Customs Duty– It is a tax levied on anything which is imported into India from a foreign
nation.

BENEFITS OF TAXES
The purpose of taxes is to provide the government with funds for spending without
inflation. Taxes are used by the government for a variety of purposes, some of which are:

 Funding of public infrastructure

 Development and welfare projects
 Defense expenditure
 Scientific research
 Public insurance
 Salaries of state and government employees
 Operation of the government
 Public transportation
 Unemployment benefits
 Pension schemes
 Law enforcement
 Public health
 Public education
 Public utilities such as water, energy, and waste management systems
 Tax is levied on a wide range of income stemming from salary, profits from business,
propertyrental, etc. There are also wealth taxes, sales taxes, property taxes, payroll taxes,
value-added taxes,service taxes, etc.

GST (GOODS AND SERVICES TAX)

INTRODUCTION OF GST

Goods and Services Tax (GST) is an indirect tax (or consumption tax) used in India on the
supply of goods and services. It is a comprehensive, multistage, destination-based tax:
comprehensive because it has subsumed almost all the indirect taxes except a few state
taxes. Multi-staged as it is, the 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 and as a destination-based tax, it is collected from point of consumption and not
point of origin like previous taxes. Goods and services are divided into five different tax
slabs for collection of tax: 0%, 5%, 12%, 18% and 28%. However, petroleum products,
alcoholic drinks, and electricity are not taxed under GST and instead are taxed separately
by the individual state governments, as per the previous tax system. 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 1 July 2017 through the implementation of the One Hundred and First Amendment of
the Constitution of India by the Indian government. The GST replaced existing multiple
taxes levied by the central and state governments. The tax rates, rules and regulations are
governed by the GST Council which consists of the finance ministers of the central
government and all the states. The GST is meant to replace a slew of indirect taxes with a
federated tax and is therefore expected to reshape the country's $2.4 trillion economy, but
its implementation has received criticism. Positive outcomes of the GST includes the travel
time in interstate movement, which dropped by 20%, because of disbanding of interstate
check posts.
HISTORY OF GST OF INDIA

Formation
The reform of India's indirect tax regime was started in 1986 by Vishwanath Pratap Singh,
Finance Minister in Rajiv Gandhi‘s government, with the introduction of the Modified
Value Added Tax (MODVAT). Subsequently, Prime Minister P V
Narasimha Rao and his Finance Minister Manmohan Singh, initiated early discussions
on a Value Added Tax (VAT) at the state level. A single common "Goods and Services Tax
(GST)" was proposed and given a go-ahead in 1999 during a meeting between the Prime
Minister Atal Bihari Vajpayee and his economic advisory panel, which included three
former RBI governors IG Patel, BimalJalan and C Rangarajan. Vajpayee set up a committee
headed by the Finance Minister of West Bengal, AsimDasgupta to design a GST model.

The AsimDasgupta committee which was also tasked with putting in place the
back-end technology and logistics (later came to be known as the GST Network, or GSTN,
in 2015). It later came out for rolling out a uniform taxation regime in the country. In 2002,
the Vajpayee government formed a task force under Vijay Kelkar to recommend tax
reforms. In 2005, the Kelkar committee recommended rolling out GST
as suggested by the 12th Finance Commission. After the defeat of the BJP-led NDA
government in the 2004 Lok Sabha election and the election of a Congress-led UPA
government, the new Finance Minister P Chidambaram in February 2006 continued
work on the same and proposed a GST rollout by 1 April 2010. However, in 2011, with the
Trinamool Congress routing CPI(M) out of power in West Bengal, AsimDasgupta resigned
as the head of the GST committee. Dasgupta admitted in an interview that
80% of the task had been done.
The UPA introduced the 115th Constitution Amendment Bill on 22 March 2011in the Lok
Sabha to bring about the GST. It ran into opposition from the Bharatiya Janata
Party and other parties and was referred to a Standing Committee headed by the BJP's
former Finance Minister Yashwant Sinha. The committee submitted its report in
August 2013, but in October 2013 Gujarat Chief Minister Narendra Modi raised objections
that led to the bill's indefinite postponement. The Minister for Rural Development Jairam
Ramesh attributed the GST Bill's failure to the "single handed opposition of Narendra
Modi".
In the 2014 Lok Sabha election, the Bharatiya Janata Party (BJP)-led NDA government was
elected into power. With the consequential dissolution of the 15th Lok Sabha, the GST Bill
– approved by the standing committee for reintroduction – lapsed. Seven months after the
formation of the then Modi government, the new Finance Minister
ArunJaitley introduced the GST Bill in the Lok Sabha, where the BJP had a majority.
In February 2015, Jaitley set another deadline of 1 April 2017 to implement GST. In
May 2016, the Lok Sabha passed the Constitution Amendment Bill, paving way for
GST. However, the Opposition, led by the Congress, demanded that the GST Bill be again
sent back for review to the Select Committee of the Rajya Sabha due to disagreements on
several statements in the Bill relating to taxation. Finally, in August 2016, the Amendment
Bill was passed. Over the next 15 to 20 days, 18 states ratified
the Constitution amendment Bill and the President Pranab Mukherjee gave his assent to it.

A 21-member selected committee was formed to look into the proposed GST laws.
After GST Council approved the Central Goods and Services Tax Bill 2017 (The
CGST Bill), the Integrated Goods and Services Tax Bill 2017 (The IGST Bill), the
Union Territory Goods and Services Tax ill 2017 (The UTGST Bill), the Goods and
Services Tax (Compensation to the States) Bill 2017 (The Compensation Bill), these Bills
were passed by the Lok Sabha on 29 March 2017. The Rajya Sabha passed these Bills on 6
April 2017 and were then enacted as Acts on 12 April 2017. Thereafter, State Legislatures
of different States have passed respective State Goods and Services Tax Bills. After the
enactment of various GST laws, Goods and Services Tax was launched all over India with
effect from 1 July 2017. The Jammu and Kashmir state legislature passed its GST act on 7
July 2017, thereby ensuring that the entire nation is brought under a unified indirect taxation
system. There was to be no GST on the sale and purchase of securities. That continues to be
governed by Securities Transaction TAX.

Implementation
The GST was launched at midnight on 1 July 2017 by the President of India, and the
Government of India. The launch was marked by a historic midnight (30 June – 1 July)
session of both the houses of parliament convened at the Central Hall of the Parliament.
Though the session was attended by high-profile guests from the business and the
entertainment industry including Ratan Tata, it was boycotted by the opposition due to the
predicted problems that it was bound to lead for the middle and lower class Indians. The tax
was strongly opposed by the opposing Indian National Congress. It is one of the few
midnight sessions that have been held by the parliament - the others being the
declaration of India's independence on 15 August 1947, and the silver and golden jubilees
of that occasion. After its launch, the GST rates have been modified multiple times, the
latest being on 22 December 2018, where a panel of federal and state finance ministers
decided to revise GST rates on 28 goods and 53 services.

Members of the Congress boycotted the GST launch altogether. They were joined by
members of the Trinamool Congress, Communist Parties of India and the DMK. The parties
reported that they found virtually no difference between the GST and the existing taxation
system, claiming that the government was trying to merely rebrand the current taxation
system. They also argued that the GST would increase existing rates on common daily
goods while reducing rates on luxury items, and affect many Indians adversely, especially
the
middle, lower middle and poorer income groups.

WHY WAS GST REQUIRED?

The GST is the biggest and most important tax reform in India. The inclusion of various
indirect taxes into the GST reduces manufacturing and production costs and also aids in
the country's economic growth.

The rates and regulations for VAT varied by state. Also, it's been noticed that states
frequently seek to lower these rates to entice investors. This resulted in loss of revenue
for both the Central government as well as other State governments.

GST, on the other hand, implements standard tax regulations throughout all states,
covering a wide range of businesses. According to a preset and pre-approved formula, the
taxes are distributed between the Central and State governments in this case. Furthermore,
because there is no additional state-levied tax, it is much easier to sell services and goods
uniformly across the country.

FEATURES OF GST
1.SINGLE INDIRECT TAX

GST has been introduced as a single, unified tax reform. It has eliminated many existing
indirect centre and state taxes like Central Value Added Tax, Special Additional Duty of
Customs, Service Tax, and VAT and converted them into a single tax. The elimination of
these indirect taxes has not only made tax compliance easier for businesses but has also
helped in making many of the goods and services more affordable for the consumers.

17
2. INPUT TAX CREDIT SYSTEM
One of the most prominent GST features in India is the input tax credit. If a manufacturer
or service provider has already paid input tax on a purchase, the same can be deducted
from their total output tax liability. The input and output invoices need to match to take
advantage of the tax credit. This helps in removing the cascading tax effect or the
traditional ‗tax-on-tax‘ regime. Moreover, it also helps in reducing tax evasion.

3. GST COMPOSITION SCHEME

SMEs with an annual turnover of up to Rs. 1 crore or Rs. 75 lakhs in specified states can
also voluntarily opt for the composition scheme. With this scheme, the businesses can pay
a fixed GST rate of 1% on their turnover. However, such businesses can then not use the
input tax credit benefit. A business needs to select between whether they want to use the
composition scheme or the input tax credit feature.

4. FOUR-TIER TAX STRUCTURE

GST has a 4-tier tax structure of 5%, 12%, 18%, and 28%. All the goods and services can
only be taxed as per this tax structure. Many of the essential commodities such as food
items do not have any GST.

KEY FEATURES OF GST

Dual Goods and Service Tax

Destination-Based Consumption
Computation of GST on the basis of invoice credit method
Payment of GST
Goods and Services Tax Network (GSTN)
GST on Imports
Maintenance of Records
Administration of GST
Goods and Service Tax Council

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 Dual Goods and Service Tax: CGST and SGST
 Destination-Based Consumption Tax: GST will be a destination-based tax. This
implies that all SGST collected will ordinarily accrue to the State where the consumer of
the goods or services sold resides.
 Computation of GST on the basis of invoice credit method: The liability under the
GST will be invoice credit method i.e. cenvat credit will be allowed on the basis of invoice
issued by the suppliers.
 Payment of GST: The CGST and SGST are to be paid to the accounts of the central and
states respectively.
 Goods and Services Tax Network (GSTN): A not-for-profit, Non Government
Company called Goods and Services Tax Network (GSTN), jointly set up by the Central
and State Governments will provide shared IT infrastructure and services to the Central
and State Governments, tax payers and other stakeholders.
 GST on Imports: Centre will levy IGST on inter-State supply of goods and services.
Import of goods will be subject to basic customs duty and IGST.
 Maintenance of Records: A taxpayer or exporter would have to maintain separate
details in books of account for availment, utilization or refund of Input Tax Credit of
CGST, SGST and IGST.
 Administration of GST: Administration of GST will be the responsibility of the GST
Council, which will be the apex policy making body of the GST. Members of GST Council
comprised of the Central and State ministers in charge of the finance portfolio.
 Goods and Service Tax Council: The GST Council will be a joint forum of the Centre
and the States. The Council will make recommendations to the Union and the States on
important issues like tax rates, exemption list, threshold limits.
TYPES OF GST
The GST types in India, namely, CGST , SGST, UTGST and IGST, have specific taxation
rates. These rates are fixed by the Government of India and will be applicable as decided
by the government.

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How Many Types of GST Are There?
There are three types of GST:

 CGST (Central Goods and Services Tax)

 SGST (State Goods and Services Tax
 UTGST (Union Territory Goods and Services Tax)
 IGST (Integrated Goods and Services tax)

What is SGST?
The State Goods and Services Tax is one of the GST types which the government
of a particular state imposes. The state government taxes goods and services within the
state(intrastate, for example Mysore), and the state government is the sole beneficiary of
the collected revenue.
The SGST replaces various state-level taxes such as lottery tax, luxury tax, VAT,
Purchase tax and salesTax.
However, if the transaction of the goods is interstate (outside the state), then both SGST
and CGST are applied. But, if the goods and services are transactions within the state,
only SGST is imposed.
The rate of GST is equally divided among the two types of GSTs. For instance, when the
traders sell their commodities within their state, they must pay SGST and CGST. The
revenue earned from SGST belongs to the state government and revenue from CGST to
the central government.
The SGST of various goods and services depends on the government notification
published from time to time.

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SGST Rates:

Commodities SGST
Common Groceries such as Tea, Salt, Spices, 2.5%
Sugar, Etc.
Processed foods Electronic goods 6%
Capital Goods, toiletries, etc. 9%
Premium luxury commodities 14%

What is CGST?

The Central goods and Services tax applies to the intrastate (within the state) supply of
goods and services. The central government taxes it. The CGST Act governs this type of
GST. Here, the revenue generated from the CGST is collected along with the SGST and
is divided between the central and state government.

For instance, when a trader makes a transaction within the state, the goods are taxed with
SGST and CGST. The GST rate is divided equally between SGST and CGST, while the
revenue collected under the CGST belongs to the central government.

CGST Rates

Commodities CGST
Common Groceries such as Tea, Salt, Spices, 2.5%
Sugar, Etc.
Processed foods Electronic goods 6%
Capital Goods, toiletries, etc. 9%
Premium luxury commodities 14%

What is IGST?

The Integrated Goods and Services tax is a type of GST, where the tax applies on the
interstate supply of goods and services. This GST type is also imposed on the goods and
services that are imported as well as exported. The IGST Act governs it, and the central
government is responsible for the collection of IGST.

21
The collected IGST is equally divided into central and state government portions. The
State portion of the IGST is provided to the state where the goods and services are received.
The remaining IGST received goes to the central government.
For instance, when the trader makes a supply between two states, the type of tax in this case
would be IGST.

IGST Rates
Commodities IGST
Common Groceries such as Tea, 5%
Salt, Spices, Sugar, Etc.
Processed foods Electronic goods 12%
Capital Goods, toiletries, etc. 18%
Premium luxury commodities 28%

What is UGST?

The Union Territory Goods and Services Tax is a type of GST imposed on the goods and
services in the union territories. This is similar to the SGST but applies only to the union
territories.
The UGST is applicable in Dadra, Nagar Haveli, Chandigarh, Andaman and Nicobar
along with Pondicherry and Delhi. Here the revenue collected by the government belongs
to the Union territory government. As the UGST is a replacement for the SGST, they are
collected along with the CGST.

OBJECTIVES OF GST
The major objectives of GST are
 The elimination of other taxes - The introduction of the GST Act led to the replacement
of other indirect taxes. The major taxes are grouped into the GST.
 Increases compatibility - The tax compliance is easier for MSME or small-scale
businesses. In addition, the presence of a single tax makes the process of filing a return
easier.
 Increases transparency - The GST reduces the chances of corruption and increases
transparency. For example, in businesses there are reduced chances of a false input
tax credit.
 Reduction of price - The GST bill imposes taxes exclusively on the net value-
added part, eliminating the previous tax-on-tax system and reducing the cost of
commodities.
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 Boost the country's revenue - A large tax-to-GDP ratio indicates increased government
revenues, indicating a healthy economy. In addition, a broader tax base and greater tax
compliance can lead to an increased government income from GST operations.
 High efficiency and productivity - The GST in India intends to eliminate logistical
restrictions and the time-consuming filing process for the input tax credit. Furthermore, by
eliminating the entry tax, the productivity levels of businesses are predicted to rise.

GST COUNCIL

GST Council is the governing body of GST having 33 members, out of which 2 members
are of centre and 31 members are from 28 state and 3 Union territories with legislation.
The council contains the following members (a) Union Finance Minister (as chairperson)
(b) Union Minister of States in charge of revenue or finance (as member) (c) the ministers
of states in charge of finance or taxation or other ministers as nominated by each states
government (as member). GST Council is an apex member committee to modify,
reconcile or to procure any law or regulation based on the context of goods and services
tax in India. The council is headed by the union finance minister Nirmala Sitharaman
assisted with the finance minister of all the states of India. The GST council is responsible
for any revision or enactment of rule or any rate changes of the goods and services in India.

GOODS AND SARVICES TAX NETWORKS (GSTN)

The GSTN software is developed by Infosys Technologies and the Information

Technology network that provides the computing resources is maintained by the NIC.
"Goods and Services Tax Network" (GSTN) is a nonprofit organisation formed for
creating a sophisticated network, accessible to stakeholders, government and taxpayers to
access information from a single source(portal). The portal is accessible to the Tax
authorities for tracking down every transaction, while taxpayers have the ability to connect
for their tax returns.
The GSTN's authorised capital is ₹10 crore (US$1.3 million) in which initially the Central
Government held 24.5 percent of shares while the state government held 24.5 percent. The
remaining 51 percent were held by non-Government financial institutions, HDFC and
HDFC Bank hold 20%, ICICI Bank holds 10%, NSE Strategic Investment holds 10% and
LIC Housing Finance holds 11%

23
However, later it was made a wholly owned government company having equal shares of
state and central government.

IMPACT OF GST ON VARIOUS SECTORS

IT
Currently IT sector is paying 14 percent of tax to the authority and subjected to 18 to 20
percent after the imposition of GST. Also an important point to notice here, that the long
disputed issue of canned software taxation will also come to end as their will no difference
arise between goods and services after the GST. Overall impact could be suggested here is
neutral or slightly negative.

Telecom
In the current stage, the Telecom sector is paying 14 percent of tax to the government body,
but the scenario takes the shift after the imposition of GST. The rate arises to 18 percent
and the companies expect to pass the burden on the post-paid customers. There is also a
lower input tax credit in this sector's capex cost. Overall, it seems that this regime will be
negative to the industry and the sector will also be in state where they can't pass the entire
tax burden to the customers especially their prepaid segment.

Automobiles
Currently, automobile sector pays around 30 to 47 percent tax to the Government which is
now expected to range between 20-22 per cent, after the implementation of GST. And the
overall cost cutting can be expected for the end user by around 10 per cent. Transportation
time should also be reduced as the check points and octroi is cleared hands before. Overall
GST will bring a smile into the automobile sector.

Cement
In the current scenario, cement sector is presenting 27 to 32 per cent of their share to the
tax authority. After the rolling out of GST, this will improve the sector growth in various
terms, like transportation by 20-25 per cent and in the warehouse scheme as the
rationalization would be easy in terms of state wise fragmentation and also in the
transportation cost as reduced transit time.

23
Pharmacy
Here, the impact could be neutral as the sector only shares 6 per cent of his share to the tax
authority. The sector also avails the incentives in tax benefits of location wise. There are
various concessional benefits and exemptions held for this sector and will extend till the
expiry of the period. The implications of GST would also try to reduce the logistics cost
and would also try to see in to the matter of inverted duty structure.

Banking and Financial Institutions

The sector is paying 14 percent right now, but not on the interest part of transaction. After
the GST implied, the tax horizon can expand up to 18 to 20 percent on the fee based
transactions. Overall input expense of operations will likely to increase and also hike in
the transactions of financial in nature such as loan processing fees, debit/credit charges,
insurance premiums etc.

IMPACT OF GST ON INDIAN ECONOMY

Reduce tax burden on producers and foster growth through more production. This double
taxation prevents manufacturers from producing to their optimum capacity and retards
growth. GST would take care of this problem by providing tax credit to the manufacturer,

 Various tax barriers such as check posts and toll plazas lead to a lot of wastage for
perishable items being transported, a loss that translated into major costs through higher
need of buffer stocks and warehousing costs as well. A single taxation system could
eliminate this roadblock for them.
 A single taxation on producers would also translate into a lower final selling price for the
consumer.
 Also, there will be more transparency in the system as the customers would know exactly
how much taxes they are being charged and on what base.
 GST would add to government revenues by widening the tax base.
 GST provides credits for the taxes paid by producers earlier in the goods/services chain.
This would encourage these producers to buy raw material from different registered dealers
and would bring in more and more vendors and suppliers under the purview of taxation.
 GST also removes the custom duties applicable on exports. Our competitiveness in
foreign markets would increase on account of lower cost of transaction.
 The proposed GST regime, which will subsume most central and state-level taxes, is
expected to have a single unified list of concessions/exemptions as against the current
mammoth exemptions and concessions available across goods and services.
23
The introduction of Goods and Services Tax would be a very noteworthy step in the field
of indirect tax reforms in India. By amalgamating a large number of Central and State taxes
into a single tax, it would alleviate cascading or double taxation in a major way and pave
the way for a common national market.

ADVANTAGES AND DISADVANTAGES OF GST

ADVANTAGES OF GST
The advantages of GST in India are as follows:

 Creation of Common National Market:

GST aims to create an integrated tax structure with a common market and remove the
economic barriers, paving the way for an integrated economy is the features of GST and
even advantages and disadvantages of input tax credit.

 Boost to Make In India Initiative

GST gives a major boost to the Make In India initiative of the government of India by
making goods and services produced in India competitive in domestic as well as
international markets is the benefits of GST.

 Removal of Cascading Effect and Multilayer taxation

In a layman's language, the cascading effect means charging Tax on Tax. GST is an indirect
tax that has brought most of the indirect taxes under one single umbrella. It provides credit
in the form of an Input Tax credit(ITC) on tax previously paid to ensure that there is no
overlapping of taxes. GST is levied only on the value-added of the goods or services, thus
giving a halt to the multilayer taxation structure.

 Reduction of Litigation
GST aids in the minimizing of litigation costs under different taxation systems as it
establishes clarity towards the taxation assessment and liability. Through documented and
revised structure GST provides a seamless flow of credit amongst business units.

23
 Composition scheme for Small and Medium businesses
Under GST, small businesses that have a turnover of up to 1.5 Crore INR can bring down
their compliance and tax burden by choosing the composition scheme over the regular
structure of GST. They can charge GST at flat rates of 1%, 5%, and 6%.

 Simple and easy online access

The whole procedure of GST (from registration to furnishing of GST returns) is available
online and is easily accessible. It has become quite helpful for new businesses especially, as
they just have to register on a single portal for all their needs.
 Enhanced Efficiency in Logistics
With the implementation of GST, the restrictions on inter-state movement of goods have
reduced considerably. Before GST, logistics companies had to maintain multiple
warehouses in different parts of the country at multiple locations to avoid state-level entry
taxes charged on interstate movements.

 Regulation of the Unregulated Sectors

In the pre-GST times, certain specific businesses in India like the textile and the
construction sectors were highly unregulated and had loopholes for tax evasion. However,
with the implementation of GST, these sectors have been regulated by reducing the burden
of tax compliance and simplifying the taxation structure.

 Automated procedures with great use of IT

There are simplified and automated procedures for various processes such as registration,
return, tax payment, etc and all interaction is through a common GSTN portal.

 Benefits to Agriculture and Industry

GST has given more relief to industry, trade, and agriculture through more comprehensive
and wider coverage of input tax set-off and service tax set-off subsuming several Central
and State taxes in GST.

27
DISADVANTAGES OF GST
Updation of IT Software
Under the GST regime, businesses either need to update their current accounting or ERP
software or purchase GST software to prop up their businesses. This leads to an increase
in IT expenses to the businesses in terms of procuring the GST software and training the
staff for using the software efficiently. However, Masters India, one of the leading GST
Suvidha Providers(GSP) has developed customized GST software and APIs to ease the
compliance procedures for different business users.

 Increased operational expenses

As we have already discussed that GST has changed the way tax is assessed, business
owners require the opinion of the tax experts to remain GST-compliant. However, this has
increased the operational expense of the entity as they are required to bear the extra cost
of employing tax specialists or hiring consultants.

 The increased tax burden on Small and Medium Enterprises (SME's)

Small and Medium businesses, particularly in the manufacturing sector have confronted
various challenges under GST. Before the GST regime, business units having turnover
up to INR 1.5 crore were required to pay the Customs Duty. But under GST any taxpayer
whose turnover surpasses INR 40 lakhs needs to pay the tax. Nonetheless, SMEs with a
turnover of up to 1.5 Crore INR can choose the composition scheme and pay tax on
turnover instead of GST and enjoy lesser compliance. However, the problem is that
businesses who opt for a composition scheme will then not have the facility to claim any
input tax credit (ITC). To smoothen the implementation process of GST, the government
is trying its best to make several changes through various meetings of the GST Council.
The government of India is consistently updating the GST procedures by introducing new
and simplified GST Returns and e-Invoicing.

GST RATES IN INDIA

The GST rate slabs are decided by the GST Council. The GST Council revises the rate slab
of goods and services periodically. The GST rates are usually high for luxury supplies and
low for essential needs. In India GST rate for various goods and services is divided into four
slabs: they are 5% GST, 12% GST, 18% GST, & 28% GST.
The GST rates for various products have been revised several times by the GST council
since the inception of the Goods and Services Tax (GST). The latest rate revision was
brought into effect in the 41st GST Council Meeting which was held on Aug 27, 2020.
Before that, there have been many GST Council Meetings in which certain rate revisions
were introduced.

28
GST RATES ON COVID-RELATED ESSENTIALS
Covid-related essentials Present Revised
GST rate GST rate
Pulse oximeters 12% 5%
Hand sanitisers 18% 5%
Equipment to check body 18% 5%
temperature
Furnaces for cremation and their 18% 5%
installation
Ambulances 28% 12%

GST RATES ON COVID MEDICINES AND TASTING KITS

Covid-related medicines and testing Present Revised GST
kits GST rate rate
Testing kits 12% 5%
Specified inflammatory diagnostic 12% 5%
kits

GST RATES ON OXYGEN AND OXYGEN-RELATED MEDICAL

DEVICES

Oxygen and oxygen-related medical Present Revised GST

devices GST rate rate
Medical grade oxygen 12% 5%
Oxygen concentrator or generator 12% 5%
Ventilators 12% 5%
Mak, canula, or helmet 12% 5%
BiPAP machine 12% 5%
High flow nasal canula device 12% 5%

29
GST RATES ON COVID-RELATED DRUGS

Covid-related drugs Present Revised GST

GST rate rate
Tocilizumab 5% NIL
Amphotericin B 5% NIL
Heparin and other anti-coagulants 12% 5%
Remdesevir 12% 5%
Any other drugs recommended by NA 5%
ministry of health

REVISION OF GST RATES ANNOUNCED IN THE 43RD GST

COUNCIL MEETING

 GST on the export of relief goods to be exempted and will stay in effect until 31 August
2021.
 GST on import of medicine for black fungus, that is Amphotericin B is also placed under
the exemption list.
 Any Covid-related relief item if imported even with the intention of donating to the
government or any relief organization will be exempted from IGST till 31 August 2021.
 Amnesty Scheme was announced by the finance minister to reduce late fee returns.
Small taxpayers can file returns under this scheme.
 A group of ministers will be formed who will submit a report by 8 June 2021 to
determine whether the rates are to be increased or decreased.

30
REVISION OF GST RATES ANNOUNCED IN THE 42ND GST
COUNCIL MEETING

Highlights of the meeting held on 5 October 2020

 Small taxpayers with turnover of less than Rs.5 crore can now file quarterly GSTR-3B
and GSTR-1 where the due date for GSTR-1 will be the 13th day of the month succeeding
the quarter. This new rule came into effect on 1 January 2021. Due to the implementation
of this rule, the number of returns has reduced to 8 from 24.
 The quarterly taxpayers have the option of paying 35% of the net tax liability of the
previous quarter, using an auto-generated challan for the first two months of the quarter.
 For the auto-generation of GSTR-3B, a roadmap is prepared, where the details of the
supplier‘s GSTR-1 will help in auto-populating the ITC. GSTR-1 will help in
Autopopulating the tax liability as well. Hence, it is important to mandatorily file GSTR-1
before filing GSTR-3B. This rule came into effect on 1 April 2021.
 Taxpayers will pay their GST through a simple challan.
 Taxpayers with a turnover of Rs.5 crores and above will have to mention a 6-digit HSN
code. A 4-digit HSN code is to be mentioned by taxpayers with a turnover of less than
Rs.5 crores. This rule came into effect on 1 April 2021.
 Bank accounts which have their PAN linked with Aadhaar will be able to receive
refunds.
 ISRO, Antrix Corporation, and New Space India Limite (NSIL) will receive GST
exemptions to encourage the space launching services in India.
Sanitisers that are non-alcoholic will be continued to be taxed at 18% GST.
 The compensation cess collected till date amounts to Rs. 20,000 crores. This amount was
disbursed to specific states in India by 5 October 2020.
Rs.25,000 crore towards IGST 2017-18 was distributed to specific Indian states.

Highlights of the meeting held on 12 October 2020

 The meeting ended with no unanimity on the issue of borrowing. The states may avail of
the options previously provided to borrow funds.
 The compensation cess will be levied will beyond the 5-year tenure.
 The center cannot borrow in case of shortage of compensation cess fund as it will create
an increase in the yield of G-sec bonds.
 A borrowing calendar has been issued where if the borrowing goes beyond the
sanctioned limit, the G-Sec deals used as a benchmark for every other borrowing will
increase.

29
Cess collected from July 2022 will not be disbursed to states in India and will be used for
the payment of principal and interest. This will help in exempting the state from the burden
of repaying the borrowed amount.

REVISION OF GST RATES ANNOUNCED IN THE 41ST GST

COUNCIL MEETING

The 41st GST Council meeting was chaired by the Union Finance Minister Nirmala
Sitharaman and was held on 27 August 2020. The government will provide an additional
0.5% relaxation in states where the borrowing limit is under the FRBM Act. States can
borrow more due to the injury that has been caused by the coronavirus outbreak. Two
options have been provided to the states to meet the compensation cess shortfall.

REVISION OF GST RATES ANNOUNCED IN THE 40TH GST

COUNCIL MEETING
The 40th GST Council meeting was chaired by the Union Finance Minister Nirmala
Sitharaman and was held on 12 June 2020. As per the meeting, no late fee will be levied
for taxpayers that come under nil tax liability. In case taxpayers file the returns between 1
July 2020 and 30 September 2020, the maximum late fee that can be charged is Rs.500. In
the case of small taxpayers (aggregate turnover of up to Rs.5 crore), the rate of interest has
been reduced to 9% from 18% p.a. for GST returns that are filed for February, March, and
April 2020. However, the returns must be filed before 30 September 2020.

REVISION OF GST RATES ANNOUNCED IN THE 39TH GST

COUNCIL MEETING
The following table reflects the changes in the rates applicable to the goods and services:
Goods or commodities New Rate Old Rate
Handmade matches 12% 5%
Mobile phones 18% 12%
Other handmade matches 12% 18%
Aircraft MRO services 5% along with 18%
full ITC
Announced on 14 March 2020, the rates mentioned above are applicable w.e.f. 1 April
2020.

31
REVISION OF GST RATES ANNOUNCED IN THE 38TH GST
COUNCIL MEETING
The following table reflects the changes in the rates applicable to the goods and services:
Goods or commodities New Rate Old Rate
Sacks of polythene and 18% 12%
polypropylene
State owned lotteries 28% 12%
State authorised lotteries 22% 28%
Woven and non-woven fabrics 18% 12%

Announced on 18 December 2019, the rates mentioned above are applicable w.e.f.
1 January 2020. Rates for the lotteries are applicable w.e.f. 1 March 2020.

REVISION OF GST RATES ANNOUNCED IN THE 37TH GST

COUNCIL MEETING
Announced on September 20th, 2019, the following table reflects the changes introduced in
the rates applicable to the goods and services. These changes are applicable w.e.f. from 1
October 2019.
Goods or commodities New Rate Old Rate
Plates and cups made of tree products Nil 5%
Caffeinated Beverages 28% + 18%
12% cess
Supplies of Railways wagons & coaches 12% 5%
(without the refund of accumulated ITC)
Outdoor Catering (without the ITC) 5% 18%
Diamond Job work 1.50% 5%
Other Job work 12% 18%

32
 Hotels with Room Tariff of Rs.7501 and 18% 28%
above
Hotels with Room Tariff from Rs 1,001 to 12% 18%
Rs 7,500
Woven or non-woven Polyethylene 12% 18%
Packaging bags
Marine fuel 5% 18%
Almond Milk 18% -
Slide fasteners 12% 18%
Wet grinders (consisting of stone as a 5% 12%
grinder)
Dried Tamarind Nil 5%
Semi-precious stones- cut & polished 0.25% 3%
Specified goods for petroleum operation 5% Applicabl
under Hydrocarbon Exploration Licensing e rate
Policy
Cess on Petrol Motor Vehicles (Capacity of 15% 1%
10-13 passengers)
Cess on Diesel Motor Vehicles (Capacity 15% 3%
of 10-13 passengers)

REVISION OF GST RATES ANNOUNCED IN THE 36TH GST

COUNCIL MEETING
The following table reflects the changes in the rates applicable to the goods and services:
Goods or commodities New Rate Old
Rate
Electric chargers 5% 18%
Electric vehicles 5% 12%
These rates were revised on July 27th, 2019 and is applicable w.e.f. August 1st, 2019.

REVISION OF GST RATES ANNOUNCED IN THE 31ST GST

COUNCIL MEETING
33
The following table reflects the changes in the rates applicable to the goods and services:
Goods or commodities New Old
Rate Rate
Vegetables which are preserved provisionally but are 5% NIL
not suitable for immediate consumption
Cooked or uncooked vegetables which are steamed, 5% NIL
frozen or boiled (branded)
Music Books 12% NIL
Parts for manufacturing renewable energy devices - 5%
falling under chapter 84, 85 or 94 of Tariff
Natural cork 5%
12%
Fly ash blocks 12% 5%
Walking sticks 12% 5%
Marble rubble 18% 5%
Agglomerated cork 18% 12%
Cork roughly squared or debugged 18% 12%
Articles of Natural cork 18% 12%
Movie Tickets worth Rs.100 or less 18% 12%
Premium on Third party insurance on Vehicles 18% 12%
Accessories for Handicapped Mobility Vehicles 28% 5%
Power banks 28% 18%
Movie Tickets worth more than Rs.100 28% 18%
Video game consoles, equipments used for Billiards 28% 18%
and Snooker and other sport related items of HSN code
9504
Retreated & used pneumatic Rubber Tyres 28% 18%
Colour Television Sets & monitors up to ―32 Inches‖ 28% 18%
Digital & Video Camera recorders 28% 18%
Pulleys, transmission shafts, cranks and gear boxes 28% 18%

34
 under HSN 8483
Reduction of tax rates on Air travel of pilgrims 28% 18%

COMMODITIES AND SERVICES GST RATES

The GST Council has proposed a four-tier tax structure wherein rates are either nil or very
low so far as essential food items are concerned. The reason for this is that these food
items constitute around 50% of the consumer basket, and contributes significantly towards
ensuring that widespread inflation is kept in check even after the revised tax slabs under
GST have been implemented. Negative items and luxury goods, however, are expected to
be taxed at a considerably higher rate to maintain revenue neutrality for state and central
governments following the implementation of the new GST rates. Other precious metals
are likely to see the implementation of an extra concessional GST tax slab as these metals
are currently taxed at just 1% under VAT.
Following is a table of commodities and services and the GST rates applicable to them:
Commodities / Services GST
Rate
Items that are not listed in any other category, such as electrical 18%
appliances, oil, soaps, etc.
All services like professional charges, fees, insurance, banking, 18%
restaurants, telecom, etc.
Essential farm produced mass consumption items such as wheat, rice, NIL
food grains, etc.
Mass consumption and common use food items like mustard oil, tea, 5%
spices, etc., but not including processed foods
Processed foods 12%
Cars and white goods 28%
De-merits and luxury goods and items that fall under the sin category, 28% +
such as aerated drinks, tobacco, luxury cars, pan masala, etc. CESS

35
 CHAPTER 2
GST RETURNS

36
GST RETURNS
Every registered taxable person shall, for every calendar month or part thereof, furnish, in
such form and in such manner as may be prescribed, a return, electronically, of inward and
outward supplies of goods or services, input tax credit availed, tax payable, tax paid and
other particulars as may be prescribed within 20 days after the end of such month:

Provided that a registered taxable person paying tax under the provisions of Section 8 of
this Act shall furnish a return for each quarter or part thereof, electronically, in such form
and in such manner as may be prescribed, within 18 days after the end of such quarter:

Every registered taxable person, who is required to furnish a return under sub section (1),
shall pay to the credit of the appropriate Government the tax due as per such return not
later than the last date on which he is required to furnish such return.

A return furnish under the sub-section (1) by a registered taxable person without payment
of full tax due as per such return shall not be treated as a valid return for allowing input tax
credit in respect of supplies made by such person. Every registered taxable person shall
furnish a return for every tax period under sub section (1), whether or not any supplies of
goods or services have been effected during such tax period.

Note: Subject to the provisions of Section 25 and 26, if any taxable person after furnishing a
return discovers any omission or incorrect particulars therein, other than as a result of
scrutiny, audit, inspection or enforcement activity by the tax authorities, shall rectify such
omission in the return to be filed r the month or quarter, as the case may be, during which
such omission are noticed, subject the payment of interest, where applicable and as
specified in the Act:

37
TYPE OF GST RETURNS

WHAT ARE THE DIFFERENT TYPES OF GST RETURNS?

Here is a list of all the returns to be filed as prescribed under the GST Law along with the
due dates.

Return Description Frequency Due Date

Form
GSTR-1 Details of outward Monthly 11th*of the next month
supplies With effect from
Of taxable goods and/or October
Services affected. 2018 until September
2020.*Previously, the
Due date was 10th of
the
Next month.

Quarterly 13th of the month

(If Succeeding the quarter.
Opted Was end of the month
under the Succeeding the quarter
QRMP Until December 2020)
scheme)

GSTR- Details of inward Monthly 15thof the next month.

2 supplies
Suspended Of taxable goods and/or
from Services effected
September claiming the input tax
2017 credit.
onwards

GSTR- Monthly return on the Monthly 20thof the next month.

3Suspended basis
from Of finalization of
September2 details of
017 outward supplies and
onwards inward supplies along
with
the payment of tax.

35
GSTR-3B Simple return in which Monthly 20th of the next month
summary of outward from the month of
supplies along with January 2021 onwards^
input tax credit is Staggered^^ from the
declared and payment month of January 2020
of tax is affected by the onwards upto
taxpayer. December 2020.*
*Previously 20th of the
next month for all
taxpayers.
Quarterly 22nd or 24th of the
month next to the
quarter***
GSTR-4 Return for a taxpayer Annually 30th of the month
registered under the succeeding a
composition scheme financial year.
under section 10 of
the CGST Act
(supplier of goods)
and CGST (Rate)
notification no.
02/2019 dated 7th
March 2020 (Supplier
of services).
GSTR-5 Return for a non- Monthly 20th of the next
resident foreign month
taxable person.
GSTR-6 Return for an input Monthly 13th of the next
service distributor to month.
distribute the eligible
input tax credit to its
branches.
GSTR-7 Return for Monthly 10th of the next
government month.
authorities deducting
tax at source (TDS).
GSTR-8 Details of supplies Monthly 10th of the next
effected through e- month.
commerce operators
and the amount of tax
collected at source by
them.
GSTR-9 Annual return for a Annuall 31st December of
normal taxpayer. y next financial year.
GSTR9A Annual return Annuall 31st December of
(Suspend optional for filing by y until next financial year,
35
ed) a taxpayer registered FY only up to FY 2018-
under the 2017-18 19.
composition levy and FY
anytime during the 2018-19
year.

GSTR- Certified Certified 31st December of

9C reconciliation reconcili next financial year.
statement ation
statemen
t

GSTR-10 Final return to be Once, Within three months

filed by a taxpayer when of the date of
whose GST GST cancellation or date
registration is registrati of cancellation
cancelled. on is order, whichever is
cancelle later.
d or
surrende
red.

GSTR-11 Details of inward Monthly 28th of the month

supplies to be following the month
furnished by a person for which statement
having UIN and is filed.
claiming a refund

35
 CHAPTER 3
RELEVANCE OF STUDY

37
GST is aimed at reducing corruption and sales without receipts. GST reduces the need for
small companies to comply with excise, service tax and VAT. GST brings accountability
and regulation to unorganised sectors such as the textile industry.

OBJECTIVESOF THE STUDY

The study has the following objectives:

 To know the GST Rate Structure.
 To grasp the impacts of GST in Indian Economy.
 To identify the sectors stand to lose or gain from the implementation of GST.
 To study the challenges for the implementation of GST in India.

NEED OF THE STUDY

GST is aimed at reducing corruption and sales without receipts. GST reduces the need for
small companies to comply with excise, service tax and VAT. GST brings accountability
and regulation to unorganised sectors such as the textile industry…

HYPOTHESIS

H0- The common people is un aware to GST in India.

H1- common people are aware about GST in India

SCOPE OF THE STUDY

The scope of study is extended to understand the concept of GST, its impact and
implementation in India. Being an explanatory research it is based on the secondary data.
The data collection is done through various sources like newspapers, articles from different
journals and from different websites.

39
 CHAPTER 4
RESEARCH METHODOLOGY

39
TYPE OF RESEARCH AND USED
Research can be classified in many different ways on the basis of methodology of the
research, the knowledge it creates, the user groups, the research problem it investigates, etc.
Following is the methodology that we have used in research.

QUANTITATIVE RESEARCH
In natural and social sciences, and sometimes in other fields, quantitative research is the
systematic empirical investigation of observable phenomena via statistical, mathematical,
or computational techniques. The objective of quantitative research is to develop and
employ mathematical models, theories, and hypotheses pertaining to phenomena. The
process of measurement is central to quantitative research because it provides the
fundamental connection between empirical observation and mathematical expression of
quantitative relationships.

Quantitative research is generally closely affiliated with ideas from 'the scientific method',
which can include:

 The generation of models, theories and hypotheses.

 The development of instruments and methods for measurement.
 Experimental control and manipulation of variables.
 Collection of empirical data.
 Modelling and analysis of data.

TYPES OF DATA USED

Primary data Type of data collection Secondary data Here, we have used both primary and
secondary data while conducting research

What is primary data?

Primary data is the data collected directly by the researchers from main sources through
interviews, surveys, experiments, etc. primary data are usually collected from the source –
where the data originally originated from and are regarded as the best kind of data in
research. In this project questionnaire method for survey is used for collection of primary
data.

40
What is secondary data?

Secondary data is the data that have been already collected by and readily available from
other sources. Such data are cheaper and more quickly obtainable than the primary data and
also may be available when primary data cannot be obtained at all. Here, various websites,
books and journals are been referred for secondary data.

41
 CHAPTER 5
SWOT ANALYSIS OF GST

42
WHAT IS A SWOT ANALYSIS?
As per Wikipedia SWOT analysis (alternatively SWOT matrix) is an acronym for strengths,
weaknesses, opportunities, and threats and is a structured planning method that evaluates
those four elements of an organization, project or business venture. A SWOT analysis can
be carried out for a company, product, place, industry, or person.

It involves scanning of the internal and external environment is an important part of the
strategic planning process. Environmental factors internal to the firm or Country usually
can be classified as strengths (S) or weaknesses (W), and those external to the firm or
Country can be classified as opportunities (O) or threats (T). Such an analysis of the
strategic environment is referred to as a SWOT analysis.

42
WHY IS SWOT AN ALYSIS DONE?
The SWOT analysis provides information that is helpful in matching the resources and
capabilities to the competitive environment in which it operates. It helps in analyzing your
organization‘s strengths and weaknesses, and the opportunities and threats that you face. It
helps you focus on your strengths, minimize threats, and take the greatest possible
advantage of opportunities available to you.
Through this article I am trying to make a SWOT analysis of the introduction of GST Act
in India by the Modi Government. The Goods and Service Tax Bill or GST Bill was
introduced to bring reform in the indirect tax regime within India. With the
implementation of GST in India, the government is hoping to create a common Indian
market and thereby to reduce the cascading effect of tax on the cost of goods and services.

STRENGTHS OF GOODS AND SERV ICE TAX IN INDIA

The strengths in the SWOT analysis are its resources and capabilities that can be used for
developing a competitive advantage over others. Some of the Strength of GST Act are

 The GST Tax is applicable on all goods and services except some exempted products
mentioned in the exemption list of the Act
 GST will subsume taxes like Central Excise Duty (1944), Central Sales Tax (1956)
Service Tax (1994) and a host of state levied taxes including Value Added Tax (VAT)
 It will drop out the cascading effects of tax on production and distribution of goods and
services
 Better Compliance and online submission of details would result in less paper work.
 This would eventually lead to more tax revenue GST would be dual taxation system. It
would be charged intra-State by Central and State governments. It would be called CGST
(Central Goods and Service Tax) and SGST (State Goods and Service Tax) thereby
eliminating loss of revenue of states and Central Government

43
WEAKNESSES OF GOODS AND SERVICE TAX IN INDIA
The absence of certain strengths are a weakness as per SWOT Analysis.

 The duel model of GST results in complicated billing and reconciliation.

 The system is fully technology driven, but India is a developing country where people
are not habitual of technology.
 GST is a subsume of various States and Central taxes but many more are left at the
discretion of State Government.

OPPORTUNITIES OF GOODS AND SERVICE TAX IN INDIA

The external environmental analysis may reveal certain new opportunities for profit and
growth. Some opportunities include:

 The rates of tax are set at ground level which will help States and Unions to collect more
revenue. This will result in Growth of Revenue for State and Central Government
 GST will reduce average tax burden of consumers. They will be certain about their taxes
which will reduce evasion of taxes.
 GST can provide the opportunity of Corruption Free Indian Revenue Services. This may
help in uprooting the Black money economy and bringing all under traders and Service
providers under the Tax regime.
 Low prices of manufactured products
 Increase in GDP
 Increase in export due to price competitiveness

THREATS OF GOODS AND SERVICE TAX IN INDIA

Changes in the external environmental also may present threats to the system. Some of
such threats include:
 The mechanism in GST is still complicated, it cannot completely eliminate black money
and tax evasion
 Initial Burden on Consumers due to a temporary increase of cost of goods and services
 GSTC (Goods and Service Tax Council) will set the benchmark for resolving the dispute
on recommendations of GSTC. It means GSTC will lay down the criteria for GSTC itself.
It is against the principle of natural justice.
 GST is not a guarantee in itself that it would not be influenced by political parties and
politicians will not use it as a win-loss game.
44
 CHAPTER 6
DATA ANALYSIS AND
INTERPRETATION

45
DATA ANALYSIS

The data collected various respondents have to analysis for the drawing conclusion. So in
this chapter efforts have been made to analysis and interpret the collective data on ―Goods
and Service Tax‖ through questionnaire.
First of all the collected data have been presented in tabular form and there after it is
analyzed with the help of percentage and pie charts.
A brief description of analysis interpretation given below:

46
Tableno01
The table shows Classification of responds on the basisof age.

Agegroup Responds Percentages(%)

Below25 5 10
25-40 16 32
Above40 29 58
Total 50 100

Figureno1
The figures haws classification of respondents on the basis of age.

Interpretation
From the above table and figure it is clear that majority of respondents that is58% area
above 40 years where as 32% belongs to 25_40 years are and rest of 10% are below 25
years. Thus it can be concluded that there are majority of the respondents are above
40 years.

45
Table no 02
The table classification of respondents on the basis of qualification.

Qualification Responds Percentage (%)

Graduation 19 30
Post-graduation 11 22
Any other metric, 20 40
secondary and PHD also
Total 50 100

Figure no 02
The figure shows classification of respondents on the basis of qualification.

Interpretation
From the above table and figure it is depicted that majority of respondents ie 40% are
related to high and low background that means other areas, where as 38% are Graduation
and 22^ / are Post Graduate. Thus it can be concluded that majority of the respondents are
Concerned Graduation and other Qualification.

45
Table no 03
The table classification of respondents on the basis of gender.

Gender Responds Percentage (%)

Male 45 90
Female 5 10
total 50 100

Figure no 02
The figure shows classification of respondents on the basis of qualification.

Interpretation

From the above table and figures it is show that majority of respondents are Males 90% and
Females are 10%. Thus it can be concluded Males are show in high Interest in business
activities.

47
Table no 04
The table classification of respondents on the basis of occupation.

Occupations Responds Percentage (%)

Business Mans 30 60
Service Mans 8 16
Professional 5 10
Any Customers 7 14
total 50 100

Figure no 04

The figure shows classification of respondents on the basis of occupation.

Interpretation
From the above table and figure it is depicted that maximum respondents are businessman
and as well as customers are 60 and 14% respectively. Whereas Service man and
Professionals are 16 and 10 % Respectively. That it can be concluded that majority of the
respondents are doing own Business.

47
Table no 05

The table shows classification of respondents on the basis of their perception regarding
GST is a very Good Tax reform for India.

Responds Percentage (%)

Strongly Agree 28 56
Agree 15 30
Neutral 6 12
DIS Agree 1 2
Strongly Dis Agree 0 0
Total 50 100

Figure no 05

The figure shows classification of respondents on the basis of their perception regarding
GST is a very Good Tax reform for India.

Interpretation

Above chart depicted that majority of the respondents satisfied with the statement this taxation reform in
India is very good 56% respondents are strongly agreeing with this statement and 30% are agree and also
12 % are neutral. Hence it is concluded that majority of the respondents i.e., 56 % are strongly agreed and
30% agreed with these statements.

49
Table no 06
The table shows classification of respondents on the basis of their perception regarding
GST implementation(GST has increased the various legal formalities.)

Responds Percentage (%)

Strongly Agree 21 42
Agree 21 42
Neutral 7 14
DIS Agree 1 2
Strongly Dis Agree 0 0
Total 50 100

Figure no 06

The figure shows classification of respondents on the basis of perception regarding the GST
implementation (GST has increased the various legal formalities.)

Interpretation
Above Chart depicted that majority of the respondents satisfied with the statement after implementation of
GST has increased various types of formalities. 42% respondents are strongly agree and also 42 % are
Agreed and 14% are also neutral. So it is concluded that majority of the respondents satisfied this
statement.

49
Table no 07
The table shows Classification of response on the basis of response of the respondents
regarding the statement GST has increased Tax burden on Common Man.
Responds Percentage (%)
Strongly Agree 8 16
Agree 16 32
Neutral 15 30
DIS Agree 11 22
Strongly Dis Agree 0 0
Total 50 100

Figures no 07
The figures shows Classification of response on the basis of response of the respondents
regarding the statement GST has increased Tax burden on Common Man.

Interpretation Interpretation:
According to above table, it is shows that majority of the respondents i.e. 32% are agree
with this statement and 30% are neutral and also 22% are Dis Agree for this statement.
16% are strongly Agreed. So it is concluded that majority and cum majority peoples are
said that GST has increased the burden of Common man.

49
Table no 08
The table shows classify the respondents on the basis of their statement GST has increased
the Tax burden on Businessman.
Responds Percentage (%)
Strongly Agree 12 24
Agree 19 38
Neutral 13 26
DIS Agree 6 12
Strongly Dis Agree 0 0
Total 50 100

Figure no 08
The figure shows the respondents on the basis of their statement GST has increased the Tax
burden on Businessman.

Interpretation
From the above data table and figure show that maximum respondents are represents that
GST has increased the tax burden on businessman so 38% respondents are Agree and 24%
are strongly agree this statement and also 26 % are neutral but even 12% are Dis Agreed for
this statement. Hence, is concluded that maximum results are positive nature for this
statement.
51
Table no 09
The table shows classify the respondents on the basis of their statement GST has increased
the Tax burden on Businessman.
Responds Percentage (%)
Strongly Agree 9 18
Agree 9 18
Neutral 13 26
DIS Agree 17 34
Strongly Dis Agree 2 4
Total 50 100

Figure no 09
The figure shows classify the respondents on the basis of their response towards the
statement The newly implemented Goods and Service tax confused the customers.

Interpretation
Above Figure depicted that 18% respondents responds Strongly Agree and Agreed
regarding statement GST confused customers. 26% are neutral regarding this and
maximum respondents respond 34% and another 4% are Dis agreed with this statement,
Hence it is concluded that customers has no confusion for GST implementation and overall
maximum result for this analysis may negative. And less than positive also

51
Table no 10
The table shows classify the respondents on the basis of their response towards the
statement The GST system govemment to collect revenue to manage an economy.
Responds Percentage (%)
Strongly Agree 10 20
Agree 19 38
Neutral 11 22
DIS Agree 9 18
Strongly Dis Agree 1 2
Total 50 100

Figure no 10
The figure shows classify the respondents on the basis of their response towards the
statement The GST system government to collect revenue to manage an economy.

Interpretation
From the above table and Figure represents that 38% respondents are strongly Agree and
20% respondents are Agree with the statement The GST system is away for the govt. to
collect revenue to manage an economy Further 22% respondents neutral and also 18% are
Dis Agree with this statement. Hence it is concluded that the results are this statement are
Positive and show the positive good.

Table no 11
51
The table shows classify the respondents on the basis of their response towards the The
sentence and wording in the GST guide is Lengthy and not user friendly.
Responds Percentage (%)
Strongly Agree 6 12
Agree 7 14
Neutral 22 44
DIS Agree 15 30
Strongly Dis Agree 0 0
Total 50 100

Figure no 11
The figure shows classify the respondents on the basis of their response towards the The
sentence and wording in the GST guide is Lengthy and not.

Interpretation

According to above table shows that 44% respondents are respond to Neutral Stage and
12% and 14% are strongly agree and Agreed respectively. But the 30% respondents are
respond in Dis Agree or against in this statement are The sentences and wording are GST
guide is lengthy and not Luser friendly. Hence, it is concluded that the results are these
statement are maximum positive.

51
Table no 12
The table shows classify the respondents on the basis of their response towards the
statement are GST encourage individuals to save part of their Income.

Responds Percentage (%)

Strongly Agree 0 0
Agree 5 10
Neutral 14 28
DIS Agree 24 48
Strongly Dis Agree 7 14
Total 50 100

Figure no 12
The figure shows classify the respondents on the basis of their response towards the
statement are GST encourage individuals to save part of their Income.

Interpretation

Above figure shows that majority of the responds i.e 48% respondents Dis Agreed with
this Statement and Strongly Dis Agree with the statement of GST encourage individuals to
save part of their income. And 28 % respondents are neutral and 10% also Agree with this
statement. Hence it is concluded that the maximum respondents are respond in Dis Agreed
and result are show in very negative.

51
 CHAPTAR 7
FINDINGS, CONCLUSION
AND LIMITATIONS

53
FINDINGS OF THE STUDY
After Analysis and Interpretation of the data these are followings findings were emerged:

 Most of the respondents are Male.

 Majority of the respondents i.e. 58 % comes under the age group above 40 years are
comesunder 25- 40 years.
 More than 60% respondents are related to Businessman category.
 56% respondents are that opinion GST is very good tax reform for India and it is t point
ofthe taxation system.
 Majority of the respondents satisfied with the statement after implementation of GST
Hasincreased various types of formalities 42% respondents are strongly agree.
 Represents that 38% respondents are strongly Agree and 20% respondents are Agree
withthe statement The GST system is away for the govt. to collect revenue to manage
aneconomy re this statement are Positive and show the positive good.
 That maximum respondents are represents that GST has increased the tax burden
onbusinessman so 38% respondents are Agree and 24% are strongly agree this statement.
Hence, is concluded that maximum results are positive nature for this statement.
 Concluded that customers has no confusion for GST implementation and overall
maximumresult for this analysis may negative. And less than positive also.
 Represents that 38% respondents are strongly Agree and 20% respondents are Agree
Withthe statement The GST system is away for the govt. to collect revenue to manage
An economy Hence it is concluded that the results are this statement are Positive and show
the positive good.

53
CONCLUSION

Study highlighted the overall overview of GST. The Government to put in

more effort to ensure that Consumers have a clear understanding and develop a
positive perception towards leading acceptance. Good understanding among
customers is important as it can generate a positive perception towards the
taxation policy Custom Department could initiate and promote an extensive
publicity program mes which could help to create awareness and generate
positive perception among customers in understanding the rationale and
importance of GST in India.

55
 CHAPTER 8
SUGGESTIONS

55
SUGGESTIONS

 The customers suggested that there should be a smooth, transparent and

simple transitionprovisions which is easily understandable.
 Special focus on awareness and training of all officers, professionals and
assesses shouldbe given on GST.
 Since the public are very clear about GST, any disputes on GST introduction
should beprotectively addressed by way of speedy redress.
 The people are not well informed on the implementation of the GST.
Therefore, in orderensure efficient implementation of the GST, the Government
should come out with aproper guideline to the society on the procedures for the
implementations of GST.
 Gradunl stages may be employed for the implementation like the agricultural
sector, thenindustrial and then the service sector.
 The relevant authorities especially the customers department must work
closely with otherdepartments like information, Inland Revenue and other
enforcement authority ensuregood implementation.
 Lastly, the government must ensure a good management of the income
collected from theGST.
 CHAPTER 9
BIBLIOGRAPHY

59
REFERENCE

 www.wikipedia.com

 www.google.com

 www.slideshare.net

 Published articles.

 Research papers.

 Relevant papers, newspapers and magazine.

BOOKS
1.GST guide for students: Making GST- Good and Simple Tax

Publisher: Neelam Book House

Author: CA Vivek KR Agarwal

2. Goods and Services Tax law book for students

Publishing date: 28 February 2021

Author: Shubham Jain

3. GST for the Layman: How it impacts your daily life

Publishing house: Bloomsbury India

Author: CA Apeksha Solanki

59
 CHAPTER 10

APPENDICES 60

59
QUESTIONNAIRE

Name :__________________________ Date: _____________

1) Age?
a) Below 25
b) 25-40
c) Above 40

2) Qualification?
a) Graduation
b) Post graduation
c) Any other

3) Gender?
a) Male
b) Female

4) Occupations?
a) Business Mans
b) Service Mans
c) Professionals
d) Any Customers

5) GST is a very good tax reforms for India?

a) Strongly Agree
b) Agree
c) Neutral
d) DIS Agree
e) Strongly Dis Agree

6) GST has increased the various legal formalities?

a) Strongly Agree
b) Agree
c) Neutral
d) DIS Agree
e) Strongly Dis Agree

61
7) GST has increased the tax burden on common man?
a) Strongly Agree
b) Agree
c) Neutral
d) DIS Agree
e) Strongly Dis Agree

8) GST has increased the tax burden on businessman?

a) Strongly Agree
b) Agree
c) Neutral
d) DIS Agree
e) Strongly Dis Agree

9) The newly implemented Goods and Service tax confused the customers?
a) Strongly Agree
b) Agree
c) Neutral
d) DIS Agree
e) Strongly Dis Agree

10) The GST system govemment to collect revenue to manage an economy?

a) Strongly Agree
b) Agree
c) Neutral
d) DIS Agree
e) Strongly Dis Agree

11) The GST guide is Lengthy and not user friendly?

a) Strongly Agree
b) Agree
c) Neutral
d) DIS Agree e) Strongly Dis Agree

12) GST encourage individuals to save part of their Income?

a) Strongly Agree
b) Agree
c) Neutral
d) DIS Agree
e) Strongly Dis Agree

79