A

PROJECT REPORT
ON
“ GST ”
( GOODS AND SERVICE TAX )
BY
SAKSHI BHANUDAS GADE
Under the guidance of
PROF .KANCHAN BOTRE
SUBMITTED TO

SavitribaiPhule Pune University

In the Partial fulfillment of the requirement for
The award of the degree of
BACHELOR OF BUSINESS ADMINISTRATION (BBA)
THROUGH

SIDDHANT COLLEGE OF MANAGEMENT STUDIES

SUDUMARE TAL.MAVAL DIST. PUNE – 412109
2022 – 2023

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2
 ACKNOWLEDGMENT

The completion of my project is always due to efforts from numerous people. I take this
opportunity to express my gratitude to all those who have helped me in undertaking and
completing this project successfully.
Sincere thanks to Prof. KANCHAN BOTRE
I express my deep gratitude to all faculty of BBA department, for helping me from time to time
in the Project.
I owe my profound thankfulness to Prof. KANCHAN BOTRE Who guided
me to furnish my work & showed me the direction towards success of this Project.

Miss, gade sakshi,

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 DECLARATION

I undersigned here by state that the report, entitled "GST (goods and service tax)” is a
genuine and benefited work presented by me under the guidance of Prof. KANCHAN BOTRE
The empirical findings in this project report are based on the data collected by myself.
The matter presented in this report is not copied from any source.
The work has not been submitted for the award of any degree or diploma carlier to
Pune University, Pune or any other Universities.
The Project Report is submitted to Pune University, in the Partial fulfillment of the degree of
Master in Business Administration. In year 2022-23

Date :- / /2022 Place :- SUDUMBARE

signature (Miss.Sakshi Bhanudas gade)

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 INDEX

Chapter No. Chapter Name Page No.

1 INTRODUCTION 6

2 OBJECTIVES 9

3 BACKGROUND 12

4 COMPUTER SOFTWARE 18

5 FINDINGS 21

6 CONCLUSION 24

7 BIBLIOGRAPHY 27

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 CHAPTER NO.1
INTRODUCTION

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Goods and Services Tax (GST) is also known as indirect tax or consumption tax in India on the
supply of goods and services. It is a comprehensive, multistage, and also known as destination-based
tax. The GST in India is comprehensive because it has subsumed almost all the indirect taxes except a
few state taxes.
The GST is imposed at every stage of the production process, but all the parties will be refunded in the
different stages of production except the end consumer.

There are five different tax slabs for the collection of tax, and they are 0%, 5%, 12%, 18%, and 28%.
The individual state government also taxed on items related to petroleum, alcoholic drinks, and even
electricity. On top of that, a special rate of 0.25% will be charged on rough precious and semi-precious
stones, and 3% will be charged on gold. Also, access of 22% or other rates on top of 28% GST applies
on products such as aerated drinks, luxury cars, and tobacco.

In case you are unaware, the tax rate of most goods was about 26.5% before the implementation of
GST. Post GST, the tax rate of most products have declined to almost around 18%

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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.
Types of GST
There are four different types of GST levied on the goods and services in India that are as
follows:

• Central Goods and Services Tax (CGST) – The Central Government of India charges the
CGST on transactions related to goods and services within a state.
• State Goods and Service Tax (SGST) – The State Governments in India charge the SGST
on transactions related to goods and services within a state. It gets charged along with the
CGST.
• Union Territory Goods and Service Tax (UGST) – The Union Territories in India charge
the UGST on transactions related to goods and services within their boundaries. It gets
charged along with the CGST.
• Integrated Goods and Service Tax (IGST) – If the transaction related to goods and
services is between two states, the government will impose the Integrated GST. It is also
applicable to imports and exports. The Taxes charged under IGST are shared both by the
centre and state.
•

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CHAPTER NO.2
OBJECTIVES

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Objectives of GST
The main objectives of GST are as follows:

• It helps create a common market in India with a uniform taxation system and curb tax
evasion in the country. The laws for GST are far more stringent compared to the
erstwhile indirect tax laws. The aim is to have a nationwide surveillance system under
GST, making it easier to catch defaulters and tax evaders.
• It removes the cascading effect of the indirect taxes on a single transaction. It also allows
the setting off for prior taxes that are related to the same transactions in the form of the
input tax credit. Under GST, the tax is applicable only on the net value added during each
stage of the supply chain.
• The government aims to reduce the need for multiple documentation under the previous
taxation system by introducing a consolidated tax like GST. The idea is to help
companies with an uncomplicated tax filing procedure that will improve their efficiency
and cut down the overall costs associated with business processes.
• It helps to subsume most indirect taxes into a single taxation system that reduces the
burden of compliance for taxpayers and eases the government’s tax administration
process. The main aim of this taxation system is to simplify the entire process of paying
taxes and simplify compliance. Compared to the erstwhile indirect taxes, almost the
whole GST process, including registration, returns filing, refunds and e-way bill
generation, has shifted to the online mode.
• One of the primary objectives of GST is to widen the tax base in India. Most of the
erstwhile indirect taxes had their threshold limits for registration based on the turnover of
a business. Under GST, there is greater scope for an increase in the number of firms
coming under the tax registration net because it includes all transactions related to goods
and services in the country.

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11
CHAPTER NO.3
BACKGROUND

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Genesis

The idea of moving towards GST was first mooted by the then Union Finance Minister in his
Budget speech for 2006-07. Initially, it was proposed that GST would be introduced from 1st
April 2010.The Empowered Committee of State Finance Ministers (EC) which had formulated
the design of State VAT was requested to come up with a roadmap and structure for GST. Joint
Working Groups of officials having representatives of the States as well as the Centre were set
up to examine various aspects of GST and draw up reports specifically on exemptions and
thresholds, taxation of services and taxation of inter-State supplies. Based on discussions within
and between it and the Central Government, the EC released its First Discussion Paper (FDP) on
the GST in November, 2009. This spelt out features of the proposed GST and has formed the
basis for discussion between the Centre and the States so far.
The introduction of the Goods and Services Tax (GST) is a very significant step in the field of
indirect tax reforms in India. By amalgamating a large number of Central and State taxes into a
single tax, GST will mitigate ill effects of cascading or double taxation in a major way and pave
the way for a common national market. From the consumers point of view, the biggest advantage
would be in terms of reduction in the overall tax burden on goods, which is currently estimated
to be around 25%-30%. It would also imply that the actual burden of indirect taxes on goods and
services would be much more transparent to the consumer. Introduction of GST would also make
Indian products competitive in the domestic and international markets owing to the full
neutralization of input taxes across the value chain of production and distribution. Studies show
that this would have a boosting impact on economic growth. Last but not the least, this tax,
because of its transparent and self-policing character, would be easier to administer. It would
also encourage a shift from the informal to formal economy. The government proposes to
introduce GST with effect from 1st July 2017.
GST and Centre-State Financial Relations
Currently, fiscal powers between the Centre and the States are clearly demarcated in the
Constitution with almost no overlap between the respective domains. The Centre has the powers
to levy tax on the manufacture of goods (except alcoholic liquor for human consumption, opium
, narcotics etc.) while the States have the powers to levy tax on sale of goods. In case of inter-
states sales, the Centre has the powers to levy a tax (the Central Sales Tax) but, the tax is
collected and retained entirely by the originating States. As for services, it is the Centre alone
that is empowered to levy Service Tax. Since the States are not empowered to levy any tax on
the sale or purchase of goods in the course of their importation into or exportations from India,
the Centre levies and collects this tax in addition to the Basic Customs Duty. This additional duty
of customs (commonly known as CVD and SAD) counterbalance excise duty, sales tax, State
VAT and other taxes levied on the like domestic product. Introduction of GST required
amendments in the Constitution so as to empower the Centre and the States concurrently to levy
and collect GST.
The assignment of concurrent jurisdiction to the Centre and the States for the levy of GST
required a unique institutional mechanism that would ensure that decisions about the structure,
design and operation of GST are taken jointly by the two. To address all these and other issues,
the Constitution (122nd Amendment) Bill was introduced in the 16th LokSabha on 19.12.2014.
The Bill provides for a levy of GST on supply of all goods or services except alcohol for human

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 consumption. The tax shall be levied as Dual GST separately, but concurrently the Union
(CGST) and the States (SGST). The Parliament would have exclusive power to levy GST (IGST)
on inter state trade or commerce (including imports) in goods and services. The Central
Government will have the power to levy excise duty in addition to GST, on tobacco and tobacco
products.
The constitution Amendment Bill was passed by the LokSabha in May, 2015. The Bill with
certain amendments was finally passed in the RajyaSabha and thereafter by the LokSabha in
August, 2016. Further, the Bill has been ratified by the required number of States and has since
received the assent of the President on 8th September,2016 and has been enacted as the 101st
Constitution Amendment Act, 2016. The GST Council has also been notified w.e.f. 12th
September,2016. GST Council is being assisted by a Secretariat.
The Goods and Service Tax Council (hereinafter referred to as, “GSTC”) comprises of the Union
Finance Minister, the Minister of State(Revenue) and the State Finance Ministers to recommend
on the GST rate, exemption and thresholds, taxes to be subsumed and other matters. One-half of
the total number of members of GSTC form quorum in meetings of GSTC. Decision in GSTC
are taken by a majority of not less than three-fourth of weighted votes cast. Centre has one-third
weightage of the total votes cast and all the states taken together have two-third of weightage of
the total votes cast.
All decisions taken by the GST Council has been arrived at through consensus. The option of
exercising a vote has not been resorted to till date.
To ensure smooth roll-out of the GST, various Committees and Sectoral groups has been formed
comprising of members from both Centre and States.

Salient features of GST

The salient features of GST are as under:
• (i)GST is applicable on ‘supply’ of goods or services as against the present concept on the
manufacture of goods or on sale of goods or on provision of services.

• (ii) GST is based on the principle of destination-based consumption taxation as against the
present principle of origin-based taxation.

• (iii) It is a dual GST with the Centre and the States simultaneously levying tax on a common
base. GST to be levied by the Centre would be called Central GST(CGST) and that to be levied
by the States would be called State GST (SGST).

• (iv) An Integrated GST (IGST) would be levied an inter-state supply (including stock transfers)
of goods or services. This shall be levied and collected by the Government of India and such tax
shall be apportioned between the Union and the States in the manner as may be provided by
Parliament by Law on the recommendation of the GST Council.

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• (v) Import of goods or services would be treated as inter-state supplies and would be subject to
IGST in addition to the applicable customs duties.

• (vi) CGST, SGST & IGST would be levied at rates to be mutually agreed upon by the Centre and
the States. The rates would be notified on the recommendation of the GST Council. In a recent
meeting, the GST Council has decided that GST would be levied at four rates viz. 5%, 12%, 16%
and 28%. The schedule or list of items that would fall under each of these slabs has been worked
out. In addition to these rates, a cess would be imposed on “demerit” goods to raise resources for
providing compensation to States as States may lose revenue owing to the implementation of
GST.

• (vii) GST would replace the following taxes currently levied and collected by the Centre:-
o a) Central Excise Duty

o b) Duties of Excise (Medicinal and Toilet Preparations)

o c) Additional Duties of Excise (Goods of Special Importance)

o d) Additional Duties of Excise (Textiles and Textile Products)

o e) Additional Duties of Customs (commonly known as CVD)

o f) Special Additional Duty of Customs(SAD)

o g) Service Tax

o h) Cesses and surcharge in so far as they relate to supply of goods and services.

• (viii) State taxes that would be subsumed within the GST are:-
o a) State VAT

o b) Central Sates Tax

o c) Purchase Tax

o d) Luxury Tax

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o e) Entry Tax (All forms)

o f) Entertainment Tax and Amusement Tax (except those levied by the local bodies)

o g) Taxes on advertisements

o h) Taxes on lotteries, betting and gambling

o i) State cesses and surcharges in so far as they relate to supply of goods and services.

• (ix) GST would apply on all goods and services except Alcohol for human consumption.

• (x) GST on five specified petroleum products (Crude, Petrol, Diesel, ATF& Natural Gas) would
by applicable from a date to be recommended by the GSTC.

• (xi) Tobacco and tobacco products would be subject to GST. In addition, the Centre would have
the power to levy Central Excise duty on these products.

• (xii) A common threshold exemption would apply to both CGST and SGST. Tax payers with an
annual turnover not exceeding Rs.20 lakh (Rs.10 Lakh for special category States) would be
exempt from GST. For small taxpayers with an aggregate turnover in a financial year upto 50
lakhs, a composition scheme is available. Under the scheme a taxpayer shall pay tax as a
percentage of his turnover in a State during the year without benefit of Input Tax Credit. This
scheme will be optional.

• (xiii) The list of exempted goods and services would be kept to a minimum and it would be
harmonized for the Centre and the States as well as across States as far as possible.

• (xiv) Exports would be zero-rated supplies. Thus, goods or services that are exported would not
suffer input taxes or taxes on finished products.

• (xv) Credit of CGST paid on inputs may be used only for paying CGST on the output and the
credit of SGST paid on inputs may be used only for paying SGST. Input Tax Credit (ITC) of
CGST cannot be used for payment of SGST and vice versa. In other words, the two streams of
Input Tax Credit (ITC) cannot be cross-utilised, except in specified circumstances of inter-state
supplies for payment of IGST. The credit would be permitted to be utilised in the following
manner:-
o a) ITC of CGST allowed for payment of CGST & IGST in that order;

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o b) ITC of SGST allowed for payment of SGST & IGST in that order;

o c) ITC of IGST allowed for payment of IGST, CGST & SGST in that order.

• (xvi) Accounts would be settled periodically between the Centre and the States to ensure that the
credit of SGST used for payment of IGST is transferred by the Exporting State to the Centre.
Similarly, IGST used for payment of SGST would be transferred by the Centre to the Importing
State. Further, the SGST portion of IGST collected on B2C supplies would also be transferred by
the Centre to the destination State. The transfer of funds would be carried out on the basis of
information contained in the returns filed by the taxpayers.

• (xvii) The laws, regulations and procedures for levy and collection of CGST and SGST would be
harmonized to the extent possible.
The whole GST system will be backed by a robust IT system. In this regard, Goods and Services
Tax Network (GSTN) has been set up by the Government. It will provide front end services and
will also develop back end IT modules for States who opted for the same.

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CHAPTER NO. 4
COMPUTER
SOFTWARE

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 A GST software is your one-stop-shop for all your compliance needs. From raising invoices to
managing your inward and outward supplies, seamlessly, GST software enables you to keep
your books of record up-to-date at all times. TallyPrime ensures that your GST returns are in
sync with your books of accounts, and reflect the same data as used for filing returns in the GST
portal, thus proving to be the right GST return software for you.

The Goods & Services Tax (GST) has been implemented in India since 1st July 2017. Since
then, the GST Council has been working to simplify the rules to make it easier for businesses. At
Tally, we have walked the GST journey with our customers by continuously building a
reliable GST software on par with the changes, to make compliance simpler for businesses and
tax consultants.

GST means different things to different stakeholders. Businesses registered as regular dealers
need to file their GSTR-1 on a monthly basis if their aggregate turnover exceeds 1.5 Cr.
Businesses with an aggregate turnover less than 1.5 Cr have to do GSTR-1 return filing on a
quarterly basis. Also, both businesses need to file their GSTR-3B on a monthly basis.

The other hand, composite dealers have to file GSTR-4 on a quarterly basis. Also, going
forward, as the e-Way bill becomes mandatory for interstate and intrastate movement of goods
worth Rs. 50,000, businesses will have to adhere to e-Way Bill compliance as well.

This calls for an efficient GST ready accounting software, which can not only take care of
your holistic business needs but also ensure a hassle-free compliance experience.

Benefits of using Tally.ERP 9

Tally is the most popular and reliable GST ready accounting software amongst businesses in
India We believe it is critical to ensure that data is recorded correctly at the transaction level
itself, which is the starting point. Tally.ERP 9 ensures you generate GST invoices and
transactions as per the GST format.

As a business owner, you can easily share returns data with your tax consultant as per GST
format. If you prefer to, you can file GSTR-1, GSTR-3B and GSTR-4 on your own by exporting
data to the Excel Offline Utility tool or in JSON format as per the GST portal. The unique error
detection and correction capability ensure that you file returns accurately.

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When it comes to e-Way Bills, Tally.ERP 9 helps you to easily generate and manage e-Way
Bills. You can capture all the required information at invoice level itself, export the data in JSON
format and upload the data in the e-Way portal to generate the e-Way Bill.If you are a tax
consultant, then you can easily share changes made in returns by marking them.

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CHAPTER NO.5
FINDINGS

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 GST - FINDINGS AND SUGGESTIONS
GST has brought in ‘one nation one tax’ system, but its effect on various industries is slightly
different. The first level of differentiation will come in depending on whether the industry deals
with manufacturing, distributing and retailing or is providing a service.

Impact of GST on Manufacturers, Distributor, and Retailers.

GST is a boost competitiveness and performance in India’s manufacturing sector. Declining
exports and high infrastructure spending are just some of the concerns of this sector. Multiple
indirect taxes had also increased the administrative costs for manufacturers and distributors and
with GST in place, the compliance burden has eased and this sector will grow more strongly. But
due to GST business which was not under the tax bracket previously will now have to register.
This will lead to lesser tax evasion.

Advantages of GST
• GST eliminates the cascading effect of tax. ...
• Higher threshold for registration. ...
• 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.

Impact of gst on service providers.

As of March 2014, there were 12, 76,861 service tax assessees in the country out of which only
the top 50 paid more than 50% of the tax collected nationwide. Most of the tax burden is borne
by domains such as IT services, telecommunication services, the Insurance industry, business
support services, Banking and Financial services, etc. These pan-India businesses already work
in a unified market and will see compliance burden becoming lesser. But they will have to
separately register every place of business in each state.

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Sector-wise impact analysis :

✓ Logistics
In a vast country like India, the logistics sector forms the backbone of the economy. We can
fairly assume that a well organized and mature logistics industry has the potential to leapfrog the
“ Make in India” initiative of the Government of India to its desired position.

✓ E-commerce
The e-commerce sector in India has been growing by leaps and bounds. In In many ways, GST
will help the e-com sector’s continued growth but the long-term effects will be particularly
interesting because the GST law specifically proposes a Tax Collection at Source
(TCS) mechanism, which e-com companies are not too happy with. The current rate of TCS is at
1%.

✓ Pharma
On the whole, GST is benefiting the pharma and healthcare industries. It will create a level
playing field for generic drug makers, boost medical tourism and simplify the tax structure. If
there is any concern whatsoever, then it relates to the pricing structure (as per latest news). The
pharma sector is hoping for a tax respite as it will make affordable healthcare easier to access by
all.

✓ Telecommunications
In the telecom sector, prices will come down after GST. Manufacturers will save on costs
through efficient management of inventory and by consolidating their warehouses. Handset
manufacturers will find it easier to sell their equipment as GST has negated the need to set up
state-specific entities, and transfer stocks. The will also save up on logistics costs.

✓ Textile
The Indian textile industry provides employment to a large number of skilled and unskilled
workers in the country. It contributes about 10% of the total annual export, and this value is
likely to increase under GST. GST would affect the cotton value chain of the textile industry
which is chosen by most small medium enterprises as it previously attracted zero central excise
duty (under optional route).

✓ Real estate
The real estate sector is one of the most pivotal sectors of the Indian economy, playing an
important role in employment generation in India. The impact of GST on the real estate sector
cannot be fully assessed as it largely depends on the tax rates. However, the sector will see
substantial benefits from GST implementation, as it has brought to the industry much-required
transparency and accountability.
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 ✓ Agriculture
The agricultural sector is the largest contributing sector the overall Indian GDP. It covers around
16% of Indian GDP. One of the major issues faced by the agricultural sector is the transportation
of agri-products across state lines all over India. GST will resolve the issue of transportation.

✓ Startups
With increased limits for registration, a DIY compliance model, tax credit on purchases, and a
free flow of goods and services, the GST regime truly augurs well for the Indian startup scene.
Previously, many Indian states had different VAT laws which were confusing for companies that
have a pan-India presence, especially the e-com sector. All of this has changed under GST.

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CHAPTER NO.6
CONCLUSION

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Conclusion of GST

The Government has introduced a GST system to smoothen tax processes and bring
businesses into the formal economy. Being GST-compliant, businesses can experience the
merits of having a unified tax system and easy input credits. Stakeholders welcome GST
implementation as a new change as it helps boost the economy. Even though GST serves
as a historical tax reform in India, there are several downsides that make this tax
challenging to implement.

The GST regime is a half-hearted attempt to rationalize indirect tax structure. More than
150 countries have implemented GST. GST will simplify existing indirect tax system and
will help to remove inefficiencies created by the existing current heterogeneous taxation
system.

GST will give more relief to industry, trade and agriculture through a more
comprehensive and wider coverage of input tax set-off and service tax set off, subsuming
of several Central and State taxes in the GST and phasing out of CST.

This is likely to increase the competitiveness of Indian goods and services in the
international market and to boost Indian exports.

GST is a comprehensive value added tax on goods and services

Removes High Tax Burden

• GST ensures better compliance at each stage of Supply chain

Abolition of CST will pave the way for an integrated Goods and Services Tax (GST) which will
be introduced by April 1, 2010

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Chapter no.7
bibliography

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BIBLIOGRAPHY

References

➢ Good and services tax (GST)

➢ Summary book of GST.
➢ GST guide for students : Making GST-Good and Simple Tax.

Websites
➢ https://www.researchgate.net/publication/342170613_A_Study_on_GST_The_Way_Fore
ward
➢ https://cleartax.in/s/gst-analysis-and-opinions
➢ https://www.bing.com/search?q=GST

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