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PROJECT REPORT
(Submitted for the Degree of B.Com. Honours in Accounting & Finance under the University of
Calcutta)

TITLE OF THE PROJECT:

“GOODS & SERVICES TAX”

SUBMITTED BY
Name of the Candidate: ASTHA GUPTA
Registration Number: 017-1211-3475-19
Name of the College: THE BHAWANIPUIR EDUCATION SOCIETY
COLLEGE
CU exam Roll Number: 191017110118

SUPERVISED BY
Name of the Supervisor:
Name of the College: THE BHAWANIPUIR EDUCATION SOCIETY
COLLEGE

MONTH & YEAR OF SUBMISSION:

Date: 13TH April 2022
 Annexure-IA
SUPERVISOR'S CERTIFICATE

This is to certify that MS. ASTHA GUPTA a student of B.Com. Honours in Accounting & Finance of THE
BHAWANIPUR EDUCATION SOCIETY COLLEGE,
under the University of Calcutta has worked under my supervision and guidance for his/her Project Work
and prepared a Project Report with the title “GOODS & SERVICE TAX” which he/she is submitting, is
his/her genuine and original work to the best of my knowledge.

Place: Kolkata Signature:

Date: 13/04/2022 Name:

Designation: PROFESSOR

Name of the College: The Bhawanipur education society college.

Page 3 of 24

Annexure-IB
STUDENT'S DECLARATION
I hereby declare that the Project Work with the title “GOODS & SERVICE TAX” submitted by me
for the partial fulfilment of the degree of B.Com. Honours in Accounting & Finance under the
University of Calcutta is my original work and has not been submitted earlier to any other
University /Institution for the fulfilment of the requirement for any course of study.
I also declare that no chapter of this manuscript in whole or in part has been incorporated in this
report from any earlier work done by others or by me. However, extracts of any literature which has
been used for this report has been duly acknowledged providing details of such literature in the
references.

Place: Kolkata Signature:

Date: 31/05/2021 Name: Astha Gupta
Registration Number: 017-1211-3475-19

CU Roll Number: 191017110118

 ACKNOWLEDGEMENT

First of all, thanks to God, for giving me and my friends the strength and will to complete this task just in
time. Even though we faced a lot of difficulties while trying to complete this task, the group still managed
to complete it and we are glad about it.

A special thanks to Mr Abhishek Pandey, for being such a good guidance to us while we were doing this
task. He had given us an appropriate example and knowledge in order to make us understand more about
this topic. He spends his time to explain the execution of this idea in all the way.

I also appreciate CA Shruti Chamaria, for her support to me to do this project in all the way and made it
possible. We also want to thank other groups who were willing to share their information about this topic.
They gave us a lot of new ideas about the task.

Also, a great thanks to my family and friends who tried their best to give their support either by giving me
a lot of encouragement to keep up with this task or by supporting us financially and pay all the cost
required to complete this task.

CONTENTS
 PAGE NO.
S. NO. TITLE

1. COVER PAGE 1

2. SUPERVISOR’S CERTIFICATE 2

3. STUDENT’S DECLARATION 3

4. ACNOWLEDGEMENT 4

5. CHAPTER 1: INTRODUCTION TO 6 - 10
GST
6. CHAPTER 2: IMPACT OF GST ON VARIOUS SECTORS 11 - 14

7. CHAPTER 3: DATA FINDING & ANALYSIS OF GST 15 - 20

8. CHAPTER 4: CONCLUSION & RECOMMENDATION 21- 23

9. CHAPTER 5: BIBLIOGRAPHY 24- 25

10. CHAPTER 6: QUESTIONNAIRE 26- 28

 5

CHAPTER : 1

INTRODUCTION TO GST
1.1: INTRODUCTION TO THE GST:
The Goods and Services Tax (GST), implemented on July 1, 2017, is regarded as a major taxation
reform till date implemented in India since independence. The primary objective behind
development of GST is to subsume all sorts of indirect taxes in India like Central Excise Tax,
VAT/Sales Tax, Service tax, etc. and implement one taxation system in India.

1.2: SALIENT FEATURES OF GST:

• GST is an indirect tax.
• For the words manufacture, sale, service, etc. the only ‘Supply’ is used.
• GST is levied on supply of goods or service or both.
• It is a consumption-based tax.
• GST is levied both by Central Government and State Government/Union territory
• Tax paid on inward supplies is available as input tax credit against tax on outward supplies subject to
fulfilment of certain conditions.
• GST law is applicable all over India

1.3: OBJECTIVES OF GST

• To Develop national Market- One Nation, one Tax
• To reduce multiplicity of indirect taxes.
• To Eliminate classification dispute between goods & services.
• To remove barriers in inter-State movement of goods
• To ease the administrative control.
• Uniformity of tax rates and automated compliances.
• Ensuring availability of input tax credit across the value chain
• Simplification of registration, filing of return, tax administration and compliance.
• Harmonization of tax base, laws, and administration procedures across the country.
• Minimizing tax rate slabs to avoid classification issues.
• Prevention of unhealthy competition among states.
• Free movement of Goods across the country without any additional tax.
• 1.4: ADVANTAGES OF GST:
GST eliminates the cascading effect of tax
• Higher threshold for registration
6
 • Composition scheme for small businesses
• Simple and easy online procedure
• The number of compliances is lesser
• Defined treatment for E-commerce operators
• Improved efficiency of logistics
• Unorganized sector is regulated under GST
1.5: DISADVANTAGES OF GST:
• Increased costs due to software purchase
• Being GST-compliant
• GST will mean an increase in operational costs
• GST came into effect in the middle of the financial year
• GST is an online taxation system
• SMEs will have a higher tax burden

1.6: STRUCTURE OF GST

Dual model GST is applicable in India i.e. two varieties of GST will be charged on same bill i.e.
CGST (Central goods and service tax) and SGST (State goods and service tax). On an Intra State Supply,
both CGST and SGST shall be applicable. Amount of CGST is revenue of the Central Government and the
amount of SGST is revenue of State Government.

1.7: TYPES OF GST

• Central Goods and Services Tax (CGST)
• State Goods and Services Tax (SGST)
• Integrated Goods and Services Tax (IGST)
• Union Territory Goods and Services Tax (UTGST)
 Types of
CGST SGST IGST UGST/UTGST
Differences

Inter-state
Applicable (Between two
Intrastate Intrastate Within one
transactions states or one
(Within (Within Union
(Goods & state and one
one state) one state) Territory (UT)
Services) UT) and
imports

Central
Collected by State Govt. Central Govt. UT Govt.
Govt.

Benefitting Central Central Govt.

State Govt. UT Govt.
Authority Govt. & State Govt.
1.8: CENTRAL TAXES SUBSUMED IN GST
• Central Excise Tax
• Service Tax
• Additional Custom duty, commonly known as Countervailing Tax (CVD)

1.9: STATE TAXES SUBSUMED IN GST

• VAT / Sales tax
• Luxury tax
• Purchase tax
• Entry tax / Octroi
• Central Sales Tax

1.10: TAXES NOT SUBSUMED IN GST

• Custom duty
• Stamp duty
• Securities transaction Tax
• Central Excise on Petroleum products, Tobacco
• VAT on Petroleum Products and Alcohol

1.11: RATE OF GST

Rate of GST varies from product to product. There are 4 popular rates of GST i.e.
(a) 5% (2.5% CGST + 2.5% SGST)
(b) 12% (6% CGST + 6 % SGST)
(c) 18% (9 % CGST + 9 % SGST) and
8
(d) 28% (14 % CGST+14 % SGST)
(e) Note:
(a) Special Rate of GST on Jewellery: It is 3% in case of Gold, Silver, Platinum etc. (b) In case
of rough diamond rate of GST is 0.25%
1.12: GST COUNCIL
Goods & Services Tax (GST) Council is a constitutional body for making recommendations to the
Union and State Government on issues related to Goods and Service Tax. The GST Council is chaired by
the Union Finance Minister and other members are the Union State Minister of Revenue or Finance and
Ministers in-charge of Finance or Taxation of all the States.

1.13: THE TAXABLE EVENT IN GST

The taxable event in GST is supply of goods or services or both. The liability to pay tax arises at the
‘time of supply of goods or services. Thus, determining whether or not a transaction falls under the
meaning of supply, is important to decide GST’s applicability.

1.14: SUPPLY
The scope of term supply is given under Section 7(1) of CGST Act which provides the inclusive
definition of term supply. As per the provision of supply, supply includes:
(a) all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence,
rental, lease or disposal made or agreed to be made for a consideration by a person in the course or
furtherance of business;
(b) import of services for a consideration whether or not in the course or furtherance of business and;
(c) the activities specified in Schedule I, made or agreed to be made without a consideration and;
(d) the activities to be treated as supply of goods or supply of services as referred to in Schedule II.

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 CHAPTER 2:

IMPACT OF GST ON VARIOUS SECTORS.

2.1: INTRODUCTION
Goods and Services Tax (GST) was introduced in the Indian Constitution through the 101st
(Hundred and One) Constitutional Amendment Act, 2016. After the enforcement of Goods and Services
Tax (GST), many sectors faced some positive effects as well as negative effects.

The enforcement of the tax was for the long-term benefit. There were very few sectors that received an
immediate benefit from the implementation of Goods and Services Tax (GST). The long-term benefit
requires the patience of citizens.

Some of the major sectors that have been affected by the implementation of GST are –

• Export-Import sector

• Real estate

• Entertainment industry

• Hotel and tourism

• Logistics industry

• Banking sector

• Gold industry

• Textile/readymade garment sector

• Its industry

• FMCG. industry

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2.2: EXPORT AND IMPORT SECTOR
Before the enforcement of the Goods and Services Tax (GST), Export and Import were governed by the
Service Tax, Value Added Tax, Excise Duty and Customs Duty. These were imposed on the Import and
Export goods and services. When Goods and Services Tax (GST) was introduced all these taxes were
merged into one. But the Basic Customs Duty (BCD) continues to work on the import bills.

2.3: REAL ESTATE AND PROPERTY

We can see the positive impact of GST on property buyers. 12% GST charges of property value are
liable on all under construction properties, excluding the registration charges and Stamp duty. Earlier
provision is applicable on the ready property. Input tax credits will increase profit margins for developers
or builders, which further transfers benefits to the Homebuyers.

2.4: ENTERTAINMENT INDUSTRY

The GST rate for entertainment services varies from 18% to 28%. These tax rates are different in
different states which depend on the type of entertainment service or product. The states where the
entertainment service tax was higher than 28%, GST will decrease the overall cost of entertainment.

2.5: HOTEL AND TOURISM

Tourism and hotel industry play an import part to grow India’s GDP.

GST rates for hotels are different according to their tariffs:

• Less than Rs. 1000 = 0% (GST free)

• Rs. 1000 to 2500 = 12%
• Rs. 2500 to 7500 = 18%
• Above Rs. 7500 = 28%
It is expected that the cost of tour packages may come down due to the relief to tour operators under GST
regime. 5% tax is liable on tour operators currently.

2.6: LOGISTICS INDUSTRY

The logistics industry is the backbone of Indian economy and it is estimated to be worth about $200 up to
2021. After the GST, the time taking clearance process has become easy i.e less transit time. Corruption

12
activities are reduced in logistic services. GST reduces the overall cost of logistics services and increases
business revenue.

2.7: BANKING SECTOR

18% GST rates levied on banking services like insurance policies, ATM transactions etc. The earlier tax
rate was 15%. Banking and financial services become costly.

GST has reduced indirect taxes, i.e., Ease of doing business in the banking and financial sector Which
leads to increase in business. It will increase demand for funds and digital transactions in the banking
industry.

2.8: GOLD INDUSTRY

18% GST rates levied on banking services like insurance policies, ATM transactions etc. The gold
industry is the biggest market in the world. GST on the gold industry hits to consumers. 3% GST rate
that is applicable to 10% import duty and 5%, making charges which lead to rising the jewellery prices in
India. The demand for Gold may fall 50 to 70 percent. But there is more transparency in the gold
industry due to the GST implementation. It will definitely turn in a positive impact on a long term.

2.9: TEXTILE/READYMADE GARMENT SECTOR

Textile industry will be benefitted through GST implementation in India. Ready-made garments up to Rs.
1000 is exempted from GST and branded garments above Rs. 1000 will be taxed at 12%.

2.10: IT INDUSTRY
All IT services and software products, as well as freelancers, are levied 18% GST rate. Overall positive
impact on IT industry of GST. Cascading effect is removed through GST implementation. IT will make
changes in the process of business process. ITC under GST will Bring down the operating costs and
increase the profitability of the IT industry.

2.11. FMCG INDUSTRY

FMCG sector is one of the biggest economic platforms in India. After the GST implementation, Mostly
FMCG products and services are taxed under 18 to 20 percent. Lower GST rates, give Benefits to the

business holder, manufacturers and consumers directly.

13
 CHAPTER 3:

DATA FINDING & ANALYSIS OF GST:

14
 FIGURE 3.1: IMPACT OF GST ON RETAIL INDUSTRY

Sources: wordpress.com

After the implementation of the GST, we can see both its positive and negative effects on different
industries. Many sectors like manufacturing, electronics, telecom, FMCG, education, banking,
jewellery, tourism, logistics, IT etc. are the important part of the Indian economy. The positive impact
of the GST on such sectors is seen in the form of economic development of the country.

15
 FIGURE 3.2: IMPACT OF GST ON RETAIL INDUSTRY

Sources:

https://holisollogistics.com

Below five factors will significantly change the dynamics of the retail sector in India:
a. Reduced taxes – he main impact of GST on retailers will be a significant reduction of the tax
burden on the retailers.

b. Seamless Input tax credit – GST will make an impact by eliminating the cascading effect of
taxes thereby reducing the total tax burden on the retail sector.

c. Increased Supply chain efficiency – The impact of GST will be evident on supply chains, as
their designs would be efficiency-oriented and not in alignment with the taxation system.

d. Tax on gifts and promotional items – As per the model GST law, any supply without any
consideration will attract tax.

e. Better Opportunities & Growth of Retail Market – Upon implementation of GST, analysts
predict unification of markets.

FIGURE 3.3: IMPACT OF GST ON COMMON PEOPLE’S SPENDING:

16
Finally, India's biggest tax reform - Goods and service Tax (GST) is a reality. Yes, after a lot of
speculation around the timely implementation, GST has been rolled out.

As we have saying, GST is a much-needed economic reform. It should eventually expand India's narrow
tax base and increase government revenues.

That said, every coin has two sides. GST is no exception. It will have its fair share of chaos in the coming
months. There could be protests across the country over tax rates and compliance burdens and it could
affect the smooth functioning of the economy.

While GST will impact businesses and industries in a big way, it won't directly affect the salaried class
and self-employed personnel (Aam Aadmi). Since it is an indirect tax, it does not change the way they
pay their personal taxes. The only impact they will see would be due to the change in rates of the goods
and services they avail.

17
 FIGURE 3.4: COMPONENT ANALYSIS OF GST GROSS COLLECTION IN
INDIA

Sources:https://startuptalky.com

Analysis –

• Average monthly gross collection since the GST introduced up-till month of June 2019 is INR
96,048 crores, with improving average over the year.

• From August 2017 to March 2018, average monthly gross collection was INR 89,705 crores

• During 2018-19 average monthly gross collection was recorded at 98,114 crores, which was
9.37% higher than 2017-18 (From August 2017).

• For ongoing fiscal year 2019-20, till month of June average monthly gross collection is 1,04,698
crores, which is 6.71% higher than monthly average of 2018-19 and 16.71% higher than 2017-18
(From August 2017).

FIGURE 3.5: TREND OF GST COLLECTION IN INDIA

18
 Sources:https://taxguru.in

Analysis –

The total gross GST revenue collected in the month of July, 2019 is ₹ 1,02,083 crore of which
CGST is ₹17,912 crore, SGST is ₹ 25,008 crore, IGST is ₹ 50,612 crore (including ₹ 24,246 crore
collected on imports) and Cess is ₹ 8,551 crore (including ₹797 crore collected on imports). The total
number of GSTR 3B Returns filed for the month of June up to 31st July, 2019 is 75.79 lakh.

The revenue in July, 2018 was ₹ 96,483 crore and the revenue during July, 2019 is a growth of 5.80%
over the revenue in the same month last year. During April-July 2019 vis-à-vis 2018, the domestic
component has grown by 9.2% while the GST on imports has come down by 0.2% and the total
collection has grown by 6.83%. Rs. 17,789 crore has been released to the states as GST compensation for
the months of April-May, 2019.

CHAPTER 4:

19
 CONCLUSION & RECOMMENDATION

CONCLUSION

Primarily, the concept of GST was introduced and proposed in India a few years back, but
implementation has been done by the current BJP government under the able leadership of Prime
Minister Shri Narendra Modi on July 1, 2017.

The new government was in strong favor for the implementation of GST in India by seeing many
positive implications as discussed above in the paper. All sectors in India - manufacturing, service,
telecom, automobile and small SMEs will bear the impact of GST.

One of the biggest taxation reform- GST will bind the entire nation under a single taxation system rate.

As forecasted by experts, GST will improvise tax collections and boost up India's economic development
and break all tax barriers between Central and State Governments.

No doubt, GST will give India a clear and transparent taxation system, but it is also surrounded by
various challenges. There is need for more analytical based research for successful implementation.

RECOMMENDATIONS:

Goods and Service Tax was considered to be an epitome of the ideal tax mechanism at the time of its
implementation. The assumption is somewhere proved right as the GST system has reduced effective tax
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rates and boosted supply chain efficiencies of businesses. On the other hand, it is also prevalent that the
system is not at all simple and has burdened the taxpayer even more with tax-filing complexities.

Now it is invariably needed to introduce a set of amendments contributing towards the certainty of the
GST system.

Steps to Make GST More Compliant:

• Reduction in Number of Tax Slabs Rates

• Effortless Input Tax Credit Claims

• Spreading the GST Net

• Renovating ITC System

• Practical Targets for GST Collection

• Including Some Exempted Goods In GST Regime:

• Let E-waybill Go Away

CHAPTER 5:

BIBLIOGRAPHY :

21
• Central Board of Excise and Customs, Ministry of Finance. (2017).
• Goods and Services Tax Council.
• (2017). https://wordpress.com
• https://holisollogistics.com
• https://startuptalky.com
• https://taxguru.in
• Wikipedia, the free content encyclopedia

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 CHAPTER 6:

QUESTIONNAIRE:
Dear Sir / Madam,
Thank you for visiting us. By filling out this 5–10-minute survey, you will help us obtain the very best
results.

1. Gender:
• Male
• Female

2. Age group:
• < 20
21-30
•
• 31-40
• 41-50
• 51-60

• 60+

3. Which of the following describes you best?

• Student
Employed
•
• Self employed
• Retired

• Not Employed

4. Please indicate your residential location

India
Other country: ______________
 24 | P a g e

27
5. Do you feel that the introduction of GST in India has affected the
demand for the product/services?
☐ Positively
☐ Negatively
☐ No impact

6. Do you think transition to GST Regime was ?

☐ Smoother
☐ Difficult
☐ Very difficult

7. Are you facing any significant issues in compliance with e-way

bill mechanism?
☐ Yes
☐ No
☐ Not applicable

8. Are you facing issues in claiming refund under the GST regime?
☐ Yes
☐ No
☐ Not applicable

9. How can the GSTN portal be made user friendly? Please state some suggestions below:
________________________________________________________
________________________________________________________
________________________________________________________