GST Project

Bachelors of Commerce (University of Calcutta)

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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: Shikha Shaw
Registration Number: 047-1211-0528-21
Name of the College: Sivanath Sastri
College College Roll Number: 211128
CU exam Roll Number: 211047-11-0200
SUPERVISED BY
Name of the Supervisor: Rajyasri Chakraborty

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 SUPERVISOR'S CERTIFICATE

This is to certify that Shikha Shaw, a student of B.Com Honours

in Accounting & Finance of SHIVNATH SASTRI COLLEGE under
the University of Calcutta has worked under my supervision and
guidance for his Project Work and prepared a Project Report
with the title – “GOODS & SERVICE TAX”, which she is submitting, is
the genuine and original work to the best of my knowledge.

Signature
Name: Rajyasri Chakraborty
College: Sivanath Sastri College
Place:
KOLKATA
Date:

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 STUDENT’S DECLARATION

I hereby declare that the Project Work with the title

“GOODS&SERVICETAX” 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 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.

Signature
Name: Shikha Shaw

Registration No.: 047-1211-0528-21

College Roll No.: 211128

Place:
KOLKATA
Date:

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 ACKNOWLEDGEMENT

First, 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 groups
till managed to complete it and we are glad about it. A special
thanks to Mrs. Rajyasri Chakraborty, for being such a good
guidance to us while we were doing this task. She had given us
an appropriate example and knowledge to make us understand
more about this topic. She spends her time to explain the
execution of this idea in all the way. 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.

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 CONTENTS

S.NO. TITLE

PAGE CHAPTER1:

INTRODUCTION TO GST
a) Background of the study
b) Literature review
c) Objectives of the study
d)Research methodology
e) Limitations of the study
f) Chapter planning
CHAPTER2: CONCEPTUAL FRAMEWORK
a) About the study
b)Brief history
CHAPTER3: PRESENTATION AND ANALYSIS OF DATA
a) Presentation of data and
analysis b) Findings
CHAPTER4: CONCLUSION & RECOMMENDATIOn b)
Recommendations 23-25
CHAPTER5: BIBLIOGRAPHY 26-27
CHAPTER6: QUESTIONNAIRE

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 CHAPTER 1:

INTRODUCTION TO GST

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: INTRODUCTION TO THE GST:
The ds and GooServices Tax (GST), implemented on July1, 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/SalesTax, Service tax, etc. and
implement one taxation system in India.

: 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.
: 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.
: ADVANTAGES OF GST:
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 • 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.
: 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.
: 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.
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: 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).

: CENTRAL TAXES SUBSUMED IN GST:

• Central Excise Tax.

• Service Tax.
• Additional Custom duty, commonly known
as Countervailing Tax (CVD).

: STATE TAXES SUBSUMED IN GST:

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

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 : TAXES NOT SUBSUMED IN GST:
• Custom duty, Stamp duty, Securities transaction tax,
• Central Excise on Petroleum producsts, Tobacco
• VAT on Petroleum Products and Alcohol.

: 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
(d) 28% (14%CGST+14%SGST)
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%
: 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.

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 : 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 a transaction fall under
the meaning of supply, is important to decide GST’s
applicability.

: 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 in the
course or furtherance of business and.
(c) the activities specified in Schedule 1, 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 11.

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 CHAPTER 2:

IMPACT OF GST ON
VARIOUS SECTORS

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: 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
• IT industry
• Fmcg industry

: EXPORT AND IMPORT SECTORS:

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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.

: 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
home buyers.

: 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.

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 : 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.

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

: 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.

: GOLD INDUSTRY:
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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 turn in a positive impact on a long term.

: 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%

: 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.

: 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.

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 CHAPTER 3:

DATA
FINDING &
ANALYSIS OF
GST

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 Fig.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.

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 Fig.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-The 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 there by 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
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markets.
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 Fig.3.3: IMPACT OF GST ON COMMON PEOPLE’s
SPENDING:

www.equitymaster.com Sources: cleartax.in

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.
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 Fig.3.4: COMPONENT ANALYSIS OF GST GROSS
COLLECTION IN NDIA:

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).

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 Fig.3.5: TREND OF GST COLLECTION IN NDIA:

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.

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 CHAPTER 4:

CONCLUSION &
RECOMMENDATION

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 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 July1,2017.

The new government was in strong favour 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.

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 RECOMMENDATIONS
Goods and Service Tax was 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 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-way bill Go Away

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 CHAPTER 5:

BIBLIOGRAPHY

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 BIBLIOGRAPHY

• 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 encyclopaedia.

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 CHAPTER 6:

QUESTIONNAIRE

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 QUESTIONNAIRE
Dear Sir/Madam,

Thank you for visiting us. By filling out this 5-10 minutes 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

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4.Please indicate your residential location
• India
• Other country:

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

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

THANK YOU

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