PROJECT REPORT

ON
GST AND ITS IMPACT ON INDIAN ECONOMY

A PROJECT SUBMITTED TO
UNIVERSITY OF MUMBAI FOR PARTIAL COMPLETION OF
THE DEGREE OF
BACHELOR OF COMMERCE (ACCOUNTING & FINANCE)

UNDER THE FACULTY OF COMMERCE

BY
MR.SOHAM RAJESH CHAUGULE
UNDER THE GUIDANCE OF
PROF. ASHWIN JAWARIA

KIRTI M. DOONGRSEE COLLEGE OF ARTS, SCIENCE AND COMMERCE

ACADEMIC YEAR
2020-2021
KIRTI M. DOONGURSEE COLLEGE OF ARTS, SCIENCE AND COMMERCE,
DADAR (WEST)

CERTIFICATE

This is to certify that MR.SOHAM RAJESH CHAUGULE has worked and duly completed his project
work
For the degree of Bachelor in Commerce (accounting & Finance) under the faculty of commerce
In the subject of “GST” and his project is entitled, “GST & ITS IMPACT ON INDIAN ECONOMY”
Under My supervision.
I further certify that the entire work has been done by the learner under my guidance and that no part of it
has been submitted previously for any degree or diploma of any university.
It is his own work and facts reported by his personal findings and investigation.

NAME OF THE GUIDE:

Prof. Ashwin Jawaria

NAME OF B.A.F. CO-ORDINATOR:

Prof. Jidnya patil

NAME OF THE PRINCIPAL:

Dr.D.V. Pawar

NAME OF EXTERNAL EVALUATOR:

 DECLARATION

I the undersigned MR.SOHAM RAJESH CHAUGULE here by, declare that the work embodied in this
Project work titled “GST AND ITS IMPACT ON INDIAN ECONOMY” forms my own contribution
to the Research work, carried out under guidance of Prof. ASHWIN JAWARIA is the result of my own
research Work and has not been previously submitted to any university for any degree or diploma to this
or any Other university.

Wherever reference has been made to previous works of other, is has been clearly indicated as such And
included in this bibliography.

I, here by further declare that all information of this document has been obtained and presented

In accordance with academic rules and ethical conduct.

SOHAM RAJESH CHAUGULE

Certified by:

PROF. ASHWIN JAWARIA

 ACKOWLEDGEMENT
To list who all have helped me is difficult because they are so numerous and the depth is so

Enormous.

I would like to acknowledge the following as being idealistic channels and fresh dimensions in the
completion of this project.

I take this opportunity to thank the UNIVERSITY OF MUMBAI for giving me chance to do this
project.

I would like thank my principal Dr.D.V.PAWAR for providing the necessary facilities required for
completion of this project.

I take this opportunity to thank our co-ordinator Prof.Jidyna Patil for her moral support and guidance.

I would like to express my sincere gratitude towards my project guide Prof.Ashwin jawaria whose
guidance and care made the project successful.

I would like to thank my college library for having provided various reference books and recognitions
related to my project.

Lastly I would like to thank each and every person who directly or indirectly helped me in the completion
of the project especially my parents and peers who supported me throughout my project.
 CHAPTER 1 :
INTRODUCTION
GST is the most ambitious and remarkable indirect tax reform in India’s post-Independence history. Its
objective is to levy a single national uniform tax across India on all goods and services. GST has replaced
a number of Central and State taxes, made India more of a national integrated market, and brought more
producers into the tax net. By improving efficiency, it can add substantially to growth as well as
government finances. Implementing a new tax, encompassing both goods and services, by the Centre and
the States in a large and complex federal system, is perhaps unprecedented in modern global tax history.
GST is a tax on goods and services with comprehensive and continuous chain of set-off benefits up to the
retailer level. It is essentially a tax only on value addition at each stage, and a supplier at each stage is
permitted to set-off, through a tax credit mechanism, the GST paid on the purchase of goods and services.
Ultimately, the burden of GST is borne by the end-user (i.e. final consumer) of the commodity/service.
With the introduction of GST, a continuous chain of set-off from the original producer’s point and service
provider’s point up to the retailer’s level has been established, eliminating the burden of all cascading or
pyramiding effects of an indirect tax system. This is the essence of GST. GST taxes only the final
consumer. Hence the cascading of taxes (tax-on-tax) is avoided and production costs are cut down. As
already noted, prior to the introduction of GST, the indirect tax system of India suffered from various
limitations. There was a burden of tax-on-tax in the pre-GST system of Central excise duty and the sales
tax system of the States. GST has taken under its wings a profusion of indirect taxes of the Centre and the
States. It has integrated taxes on goods and services for set-off relief. Further, it has also captured certain
value additions in the distributive trade. There is now a continuous chain of set-offs which would
eliminate the burden of all cascading effects. Presently, services sector in India constitutes a tax base with
vast potential which has not been exploited as yet. It is in this context that GST is justified as it has
subsumed under it almost all the services for the purpose of taxation. Since major Central and State
indirect taxes have got subsumed under GST, the multiplicity of taxes has been substantially reduced
which, in turn, would decrease the operating costs of the country’s tax system. The uniformity in tax rates
and procedures across the country will go a long way in reducing compliance costs. In a nutshell, GST is
a comprehensive indirect tax levy on manufacture, sale and consumption of goods as well as services at
the national level. GST is an indirect tax for the whole of India to make it one unified common market.
GST is designed to give India a world class tax system and improve tax collections. It would end the
long-standing distortions of differential treatment of manufacturing sector and services sector. GST will
facilitate seamless credit across the entire supply chain and across all States under a common tax base.
Goods and Service Tax or GST as it is known is all set to be a game changer for the Indian Economy
Taxation system. GST evolved an all India One Nation One Tax regime. It has now been more than a
decade since the idea of national Goods and Services Tax (GST) was mooted by Kelkar Task Force in
2004. The Task Force strongly recommended fully integrated GST on national basis.

The Union Finance Minister Shri P. Chidambaram, while presenting the Central Budget (2006-2007),
announced for the first time a proposal to introduce a national level GST by April 1. 2010. However, GST
missed several deadlines and continued to be surrounded by clouds of uncertainty. Since now, the former
finance minister of India Arun Jaitley in his budget speech of 2015 has announced time and again that the
tax will be introduced on 1 April 2016. In India, there are different indirect taxes applied on goods and
services by central and state government. GST is intended to include all these taxes into one tax with
seamless Input Tax Credit and charged on both goods and services. Thus, excise duty. Special additional
duty, service tax, VAT to name a few will get repealed and will be added into GST. For this GST will
have 3 parts CGST, SGST and IGST. The central taxes like excise duty will be subsumed into CGST and
state taxes like VAT into SGST. For the introduction of GST in the above form, the Government needs to
get the Constitution Amendment Bill passed so that the proposed objective of subsuming all taxes and
allowing states to tax subjects in Union list and vice versa is achieved. Without these powers, k is not
legally possible to move towards GST. However, the Lok Sabha passed the Bill on 6th May 2015 and
Rajya Sabha on 3rd August 2016. Subsequent to ratification of the Bill by more than 50% of the States,
Constitution (122nd Amendment) Bill, 2014 received the assent of the President on September, 2016 and
became Constitution (101st Amendment) Act. 2016, which paved the way for introduction of GST in
India

In the following year, on 27th March 2017 the Central GST legislations - Central Goods and Services Tax
Bill, 2017, Integrated Goods and Services Tax Bill 2017, Union Territory Goods and Services Tax Bill,
2017 and Goods and Services Tax Compensation to States) Bill, 2017 were introduced in Lok Sabha. Lok
Sabha passed these bits on 29th March 2017 and with the receipt Of the President’s assent on 12th April
2017, the Bills were enacted. The enactment of the Central Acts is being followed by the enactment of the
Stale GST laws by various State Legislatures, Telangana Rajasthan, Chhattisgarh, Punjab, Goa and Bihar
are among the first ones to pass their respective State GST laws.

Government is endeavouring to roll out GST by 1st July 2017, by achieving consensus on all the issues
relating thereto. It is geared to attain July 1st deadline for implementation of GST across India. GST is a
path breaking indirect tax reform which will create a common national market by dismantling inter-State
trade barriers. GST has subsumed multiple indirect taxes like excise duty, service tax, VAT, GST, luxury
tax, entertainment tax entry tax, etc. For successful implementation of GST, it is necessary that the
Government at both centre and state levels, agree to merge all their taxes into CGST/SGST. Further, the
base for taxation for both has to be the same. The exemptions, abatements etc. under GST need to be
common for both centre and all states to avoid litigation. Further exemptions/exclusions should be
minimum to avoid break of credit chain. The law needs to provide for single point compliances, , absence
of multi state audits for the assesse

Conceptually GST expected to have numerous benefits like reduction in compliances in the long run since
multiple taxes will be replaced with one tax t is expected to bring down prices and hence the inflation
since will remove the impact of ta on lax and enable seamless credit. It is expected to generate revenue
for the country as the tax base will increase as the GST rate will be somewhere around 27% with both
goods and services covered is also expected to make exports from India competitive and India a preferred
destination for foreign investment since GST is a globally accepted tax France was the first country to
implement GST in the year 1954. Within 62 years of its advent, about 160 countries across the world
have adopted GST because this tax has the capacity to raise revenue in the most transparent and neutral
manner. Before the impending GST, addressing issues faced by the financial service industry is
important. The industry is currently facing issues inter alia on determining nature of taxability of their
incomes, input credit recovery, deciding the place of provision of their service issues like intermediary
service income, interchange income, correspondent bank charges income format of the service Tax
returns, time limits for compliances and revision of returns, and so on. Unless these issues are addressed
the industry would face major hurdles with GST. GST is a multistate tax with compliances expected in
different states. Thus, it is imperative to address the issue of place of supply with clarity before GST.
Further double taxation issues like taxing intermediary services, interchange income, correspondent bank
charges etc. Needs to be addressed so that India globally competitive, Issues around compliances need to
be clarified since going forward there is an apprehension of multistate compliances and so on. However,
there is a huge hue and cry against its implementation. It would be interesting to understand why this
proposed GST regime may hamper the growth and development the country
Background of Goods and Service Tax outside India

Goods and Service also known as the Value Added Tax (VAT) or Harmonized Sales Tax. Following are
some successfully implemented GST models in other

Counties:

1. France: -

• Rate of GST 19.6%

• France was the first country to introduce GST in 1954

Worldwide, almost 150 countries have introduced GST in one or the other form since now. Most of the
countries have a unified GST system. Brazil and Canada follow a dual system vis-à-vis India is going to
introduce. In China, GST apples only to goods and the provision of repairs, replacement and processing
services.

Australia: -

Rate of GST 10%

GST is administered by the Tax office on behalf of the Australian Government, and is
appropriated to the states and territories.

Every company whose turnover exceeds $75,000 is liable for registration under GST and in
default 1/11th of the income and some amount is form of penalty

There are provisions for credit back of GST. Submission of returns according to limit decided,
Maintenance of records eta. There they have to keep records for 5 years for the purpose of
GST.

Canada: -
 GST is imposed at 5% in Part IX of the Excise Tax Act. GST is levied on goods and services
made in Canada except items that are either exempt or zero rated

When, a supplier makes a zero-rated supply, he is eligible to recover any GST paid on
purchases but the supplier who makes supply of Exempt goods he is not eligible take input tax
credit on purchases for the purpose of making the exempt goods and services

NEW ZEALAND:-

Rate of GST 125%.

Exceptions are rent collected on residential rental properties, donations and financial services

Background of Goods and Service Tax in India

The Kelkar Task Force on implementation of FRBM23 Act, 2003 had pointed out that although the
indirect tax policy in India has been steadily progressive in the direction of VAT Principle since 1986,
the existing system of taxation of goods and services still suffers from many Problems The tax base is
fragmented between Centre and States Keeping significance of GST in view, an announcement was
made by then our Ex - Finance Minister Mr. P Chidambaram in his four budget speeches24.

• Budget Speech 2004-05

• Budget Speech 2005-06

• Budget Speech of 2006-07

• Similar speech given in the Budget of 2007-08

Preparation for GST

The GST will require legislative and constitutional changes. As the time gap between formation and
implementation is very less Therefore, following things need to be done: -

• Constitutional amendment to enable state to levy service tax.

• Centre to tax goods beyond factory Gates

• Laws of central excise act 1944 and finance act 1994 needs to be replaced

• Existing VAT laws needs to be repealed.

• It is highly expected that all steps are taken to ensure that no pending work relating to Sales Tax,
VAT or other Indirect Taxes remains outstanding before implementation at GST so that everybody
can concentrate on new law

• Central and State Government should be prepared to fulfil the expectations for Trade and Industries

• Record keeping will have to be changed and IT software will have to be updated in order to comply
with GST provisions.

Trade and Industries will have to rethink market strategies, stock transfer pricing and godown keeping
policies in different states

• Uniform dispute settlement machinery

• Adequate training for both taxpayers and tax enforcers

 NEED FOR GST

Deficiencies in the existing Value Added Taxation

In the present regime, a manufacturer of excisable goods charges excise duty and value added tax
(VAT) on intra-State sale of goods. However, the VAT dealer on his subsequent intra-State sale of
goods charges VAT (as per prevalent VAT rate as applicable in the respective state) on value
comprising of basic value + excise duty charged by manufacturer + profit by dealer)

Further, in respect of tax on services, service tax is payable on taxable services provided. W.e.f. 1 July
2012, service tax is levied on all services other than the Negative list of services as provided under
Section 66D of the Finance Act, 1994 or else otherwise exempted vide the Mega Exemption
Notification No 25/2012-ST dated 20 June 2012 ("the Mega Exemption Notification") .

Presently, from 1 June 2016. service tax is levied @ 15% Service tax @ 14%, Swachh Bharat Cess
(SBC) @ 0.5% (w.e.t. November 15, 2015) and Krishi Kalyan Cess (KKC) @ 0.5% (w.e.f. June 1,
2016)] on specified services provided by service providers in India

The existing indirect tax framework in India suffer from various shortcomings. Under the existing
indirect tax structure, the various indirect taxes being levied are not necessarily mutually exclusive.

To illustrate, when the goods are manufactured and sold both central excise duty (CENVAT) and
State-Level VAT are levied. Though CENVAT and State-Level VAT are essentially value added
taxes, set off of one against the credit of another is not possible as CENVAT is a central levy and
State-Level VAT is a State levy. Moreover, CENVAT is applicable only at manufacturing level and
not at distribution levels. The existing sales tax regime in India is a combination of origin based
(Central Sales Tax) and destination based multipoint system of taxation (State-Level VAT). Service
tax is also a value added tax and credit across the service tax and the central excise duty is integrated
at the central level.

Despite the introduction of the principle of taxation of value added in India - at the Central level in the
form of CENVAT and at the State level in the form of State VAT - its application has remained
piecemeal and fragmented on account of the following reasons:
GST - A cure for ills of Existing indirect tax

A comprehensive tax structure covering both goods and services viz. Goods and Service Tax (GST)
would address these problems. Simultaneous introduction of GST at both Centre and State levels
would integrate taxes on goods and services for the purpose of set-off relief and will ensure that both
the cascading effects of CENVAT and service tax are removed and a continuous chain of set-off from
the original producer's point service provider's point up to the retailer's level consumer's level is
established.

‫ ܀‬In the GST Regime, the major indirect taxes have been subsumed in the ambit of GST. The present
concepts of manufacture or sale of goods or rendering services are no longer applicable since the tax
is now levied on Supply of Goods and or services
CHAPTER 2 :- OBJECTIVE
OF STUDY
The study has following objectives

1) To recognize the concept of GST

2) To study the features of GST

3) To evaluate the advantages and challenges of GST

4) To furnish information for further research work on GST

GST is a tax on goods and services with value addition at each stage having comprehensive and
continuous chain of set of benefits from the producer's / service providers point up to the retailer’s level
where only the final consumer should bear the tax

The main objective of the project is to understand about need, requirements,

purpose, benefits and backlogs of the GST.

The country will benefit immensely in three ways from the GST:

First -

The GST will greatly boost the GDP Lesser taxes leads, to lower prices of goods and services. Lower
prices lead to increased purchasing power of the consumers. Increased purchasing power leads to more
demand of the goods and services. More demands lead to more production. More production leads to
Higher GDP. Hence. GST will boost the GDP.

SECOND:-
The GST will facilitate "Make in India by converting the geographical landscape of the country into a
single market. Despite being one country. India is a union of 30 or more markets. Too many taxes in the
current system like the Central Sales Tax (CST) on inter-state sales of goods: numerous intra-state taxes;
and the extensive nature of countervailing duty exemptions favour imports over
Domestic production GST would get rid of the CST and subsume most of the other taxes. And since, it
wit also be applicable on imports, the major tax factor working against making in India' will disappear,
greatly boosting the production and in term exports. This will ultimately help bridge the current account
deficit.
Third:-

The GST would improve tax governance in two ways.

One, like the value added tax (VAT). It is a self-collecting and self-enfording tax, What it essentially
means it that the companies buying supplies from outside parties will insist on tax payment on goods
supplied as without this they can't pet store on their own final product sales.

Two, due to the dual monitoring structure of the GST - one by the states and another by the Centre - It is
difficult to evade tax. Even if one set of tax authorities overlooks or tails to detect evasion, there is the
possibility that the other overseeing authority may not.

To read these benefits. It is important that the GST is well-designed and the revenue-neutral rate is such
that protects revenue, simplifies administration, encourages compliance, avoids adding to inflationary
pressures, and keeps India in the range of countries with reasonable levels at indirect taxes

Some other elementary benefits of GST model in INDIA

Uniform GST Registration: - The model legislation for the introduction of goods and services tax (GST)
will have a provision for registration of individuals and companies which pay the tax. The registration
will be done through a uniform PAN-linked business identification number. The Department of Revenue
in the Ministry of Finance had recently sent a proposal to state governments for making the 10-digit
permanent account number (PAN) the starting point for registering GST payees.
Figure(1)
PAYMENT AND INPUT TAX CREDIT MODEL
UNDERSTANDING INPUT CREDIT
Input Credit in GST:

Input Credit Mechanism (ref fig. 1) is available to you when you are covered under the GST Act. Which
means you are manufacture, supplier, agent, e commerce operator, aggregator or any of the persons
mentioned here. Registered under GST, you are eligible to claim NPUT CREDIT for tax paid by you on
your purchases

Growth of Revenue in States and Union It is expected that the introduction of GST will increase the tax
base but lowers down the tax rates and also removes the multiple point taxation. This will lead to higher
amount of revenue o both the states and the union. Reduces transaction costs and unnecessary wastages -
it government work in an efficient mode, it may be also possible that a single registration and a single
compliance will suffice for both SGST and CGST provided government produces effective IT
infrastructure and integration of states level with the union.

Reduces average tax burden: - Under GST mechanism, the cost of tax that consumers have to
bear will be certain and it is expected that GST would reduce the average tax burdens on the consumers

Reduces the corruption is one of the major problems that India overwhelmed with. We cannot
expect anything substantial unless there exists a political will to root it out. This will be a step towards
corruption tree Indian Revenue Services. Present CST will be removed and need not to be paid. At
present, there is no input tax credit available for CST, There are many indirect taxes in state and central
level comment, which will be included by GST. Le you need to pay a single GST instead of all of them.
Uniformity of tax rates across the states Ensure better compliance due to aggregate tax rate reduces By
reducing the tax burden, the competitiveness of Indian products in international market is expected to
increase and there by development of the nation. Prices of goods are expected to reduce in the long run as
the benefits of less tax burden would be passed on to the consumer.
Intra-State Movement

An intra-State supply W the goods remain within the same State.

A supply of Services shall be

(a) An inter-State supply it the service provider and the service recipient are located in different States.

(b) An intra-State supply if the service provider and the service recipient are located in the same State.

Inter- State Movement -

An inter-State supply if the supply involves the movement of goods from

Any State to another

Explanation: Where the movement of goods commence and terminates in the same State it shall not be
deemed to be a movement of goods from one State D another by reason merely of the fact that in the
course of such movement the goods pass through the territory of any other State
CGST:

CGST means Central Goods and Service Tax CGST is a part of goods and service tax. It is covered under
Central Goods and Service Tax at 2016. Taxes collected under Central Goods and Service tax will be the
revenue to central Government. Present Central taxes like Central excise duty, Additional Excise duty.
Special Excise Duty Central Sales Tax Service Tax etc. will be subsumed under Central Goods and
Service Tax.

SGST:

SGST means State Goods and Send on Tax It is covered under State Goods and service Tax Act 2016. A
collection of SGST will be the revenue tor State Government. After the introduction of SGST all the state
taxes like Value Added Tax, Entertainment Tax Luxury Tax, Entry Tax will be merged under SOST For
example, I goods are sold or services are provided within the State The SGST will be loved on such
transaction.

IGST:

IGST means integrated Goods and Service Tax IGST falls under integrated Goods and Service Tax Act
2018. Revenue collected from IGST will be divided between Central Government and State Government
as per the rates specified by the government. GST will be charged on transfer of goods and services from
one state to another state Import of Goods and Services will also be deemed to be covered under Inter-
state transactions so IGST will be levied on such transactions. For example, Goods or services are
transferred from Rajasthan to Maharashtra then the transaction will attract IGST.

UTGST

The full form of UTGST is Union Territory Goods and Service Tax UTGST is a part of Goods and
Service Tax in India. GST under supply of goods and services takes place in Union Territories like
Andaman and Nicobar Islandas, Chandigarh, Dadra and Nagar Haveli, Daman and Diu, Delhi
(National Capital Territory of Delhi, Lakshadweep, Pondicherry etc. is accounted under UTGST. A
separate Act is being implemented for Union Territory states to impose and administer GST in India in
the name of UTGST Act. Under UTGST Act. The details of GST rates payable against the movement of
goods and services in Union territories are explained. The UTGST bill is presented in respective status
government to implement as UTGST Act.

The above information is about the meaning of UTGST under GST in India, the mechanism of UTGST
under GST system in India and union territory states tabs under UTGST.
 SCOPE OF THE GST

The scope of the project limits up to the study of GST under Indirect Tax System GST stall cover all
goods and services, except alcoholic liquor tor human consumption for the levy of goods and services tax.
In case of petroleum and petroleum products. It has been provided that these goods shall not be subject to
the levy of Goods and Services Tax till a date notified on the recommendation of the Goods and Services
Tax Council,
Of Goods and Service Tax Council to examine issues relating to goods and services tax and make
recommendations to the Union and the States on parameters like rates, exemption list and threshold
limits. The Council shall function under the Chairmanship of the Union Finance Minister and will have
the State Union Minister as its members.

All goods and services arm covered under GST Regime except Alcoholic liquor tor Human Consumption,
Tobacco Products subject to levy of GST and Centre may also levy excise duty GST Council yet to
decide the incidence and levy of

GST on following:

a) Crude Petroleum

b) High Speed Diesel (HSD)

c) Motor Spirit (Petrol)

d) Natural Gas

e) Aviation Turbine Fuel

 LITERATURE REVIEW

Consistent with the federal structure of the country, the GST will have two components: one levied by the
Centre hereinafter referred to as Central GST) and the other levied by the Staten (hereinafter referred to as
State GST). This dual GST model would be implemented through multiple statutes (one for COST and
SGST statute for every State). However, the basic natures of law Such as chargeability, definition of
taxable event and taxable person, measure of levy including valuation provisions, basis of classification
etc. would be uniform across these statutes as far as practicable. GST is also referred as Value added tax
(VAT), is a tax government collected at the final purchase consumption. However, according to Hooper
and Smith (1997) GST actually collected at various stages of the production process. Accordingly, there
is output tax a GST tax charges by the suppliers on taxable goods and services and input tax, a tax
incurred by businesses on goods and services purchases It is noted that GST is not a cost to the sellers and
would not appear in financial statements as expenditure. Recently, the government initiative to introduce
Goods and Services Tax (GST) has been a growing topic of interest in Malaysia. Despite the increasing
popularity and

Success of GST implementation around the world (Hooper & Smith, 1997), Malaysian citizens are not
entirely convinced wen this new tax scheme. There are debates mainly centred on the advantages and
disadvantages derived from the new tax initiative. As per as India is concerned Agogo Mawuli (May
2014) studied, "Goods and Service Tax an Appraisal" and found that GST is not good for low income
countries and does not provide broad based growth to poor countries. If still these countries want to
implement GST then the rate of GST should be less than 10% tor growth. Dr.R.Vasanth Gopal (2011)
studied, "GST in India A Big Leap in the Indirect Taxation System and concluded that switching to
seamless GST from current complicated indirect tax system in India will be a positive stop in booming
Indian economy. Success of GST will lend to its acceptance by more than 130 countries in world and a
row preferred form of indirect tax system in Asia also. Ehtisham Ahmed and Satya Poddar (2009) studied
Goods and Service Tax Reform and Intergovernmental
Consideration in India and found that GST introduction will provide simple and transparent tax system
with increase in output and productivity of economy in
India. But the benefits of GST a critically dependent on rational design of GST

RESEARCH METHODOLOGY

Being an explanatory research is based on secondary data at journeys. articles, newspapers and magazines
Considering the objectives of study descriptive type research design is adapted to have more accuracy and
rigorous analysis of research study. The accessible secondary data into intensively used for research
study.
 DATA COLLECTION

Dual GST Model to be introduced in India

India will adopt a dual GST which will be imposed States will simultaneously tax goods and services.
Centre will have the power to tax intra-State supplies States will be empowered to ta service. GST will
extend to whole of India except the State of Jammu and Kashmir.
GST IS A DESTINATION

Based tax application on all transactions involving supply of goods and services for a consideration
subject to exceptions thereto. GST in India will comprise of Central Good and Service Tax (CGST) -
levied and collected by Central Government. State Goods and Service Tax (GST) - levied and No
CENWAT after manufacturing stage Non-inclusion of severs local levies in State VAT such as luxury
tax, entertainment tax, etc. Non- Integration of VAT & service tax Cascading of taxes on account of ()
levy of Non VAT able CST and (I) inclusion of CENVAT in the value for imposing VAT Double
taxation of a transaction as both goods and services collected by State Government Union Territories with
State Legislatures and Union Territory Goods and Service Tax (UTGST) - levied and collected by Union
Territories without state legislatures on intra state supplies of taxable goods and/or services. Inter- state
supplies of taxable goods/or services will be subject to the integrated goods and service tax (IGST) IGST
will approximately be a sum total of CGST and SGST/UTGST and will be levied by centre on all inter-
state supplies.
GST is a destination

Baked in rice and CGST/SGST/UTGST/IGST

All transactions involving supply of goods and services for a consideration subject to exceptions thereto.
GST in India will comprise of Central Good and Service Tax (CGST) - levied and collected by Central
Government. State Goods and Service Tax (GST) - levied and No CENWAT after manufacturing stage
Non-inclusion of severs local levies in State VAT such as luxury tax, entertainment tax, etc. Non-
Integration of VAT & service tax Cascading of taxes on account of () levy of Non VAT able CST and (I)
indusion of CENVAT in the value for imposing VAT Double taxation of a transaction as both goods and
services collected by State Government Union Territories with State Leginintures and Union Territory
Goods and Service Tax (UTGST) - levied and collected by Union Territories without State Legislature,
on intra State aupples of taxatie goods and/or services. Ihtor State supplies of taxable goods and services
will be subject Integrated Goods and Service Tax (GST) IGST will approximately be a sum times of
CGST and SGSTUTGST and will be levied by Centre on alter State supplies There is single legislation -
COST Act ,

Legislative Framework 2017 - for levying GST. Summary.

Union Territories without State Legislatures (Andaman and Nicobar Islands, Lakshadweep, Dadra and
Nagar Haveli, Daman and Diu and Chandigarh will be governs by UTGST Act, 2017 for levying UTGST
States and Union territories with their own legislatures Delhi and Pondicherry have to enact their own
GST legislation for levying SGST Though there would be multiple SGST legislators the basic features of
law, such as chargeability, definition of taxable event and taxable person classification and valuation of
goods and services, procedure tor collection and levy at tax and the he would be uniform in all the SGST
legislations, as tax as possible This would be necessary to preserve the essence of dual GST.

• in GST regime, i.e. CGST and SASTUTOST for intra-State supplies and IGST tar inter-State supplies
shat be paid by every taxable person and in this regard provisions have been prescribed in the law.
However, tor GST providing relief to small businesses, a simpler method of paying taxes and accounting
thereof is also prescribed, known as Composition Scheme. Along with providing relief to small business,
the law also contains provisions for granting exemption from payment of tax on specified good and or
services

Input Tax Credit (ITC) of CGST and SGST UTGST will be available throughout the supply chain, but
cross utilization of credit of CGST and SGST/UTGST will not be possible, i.e. CGST credit cannot be
utilized for payment of SGST UTGST and SGST/UTGST credit cannot be utilized for payment of CGST.
However, cross utilization will be allowed between CGST/SGSTUTGST and IGST. Le credit of IGST
can be utilized for the payment of CGST/SGST/UTGST and vice versa.
Since GST is a destination based consumption tax, revenue of SGST will ordinarily accrue to the
consuming States. The inter-State supplier in the exporting State will be allowed to set of the available
credit of IGST, CGST and SGST UTGST (in that order) against the IGST payable on inter-State supply
made by him. The buyer in the importing State will be allowed to avail the credit of IGST paid on inter-
State purchase made by him. Thus, unlike the existing scenario where the credit chain breaks in case of
inter-State sales on account of non-VAT able CST, under GST regime there is a seamless credit flow in
case of inter-State supplies too. The revenue of inter-State sale will not accrue to the exporting State and
the exporting State will be required to transfer to the Centre the credit of SGSTUTGST used in payment
of IGST. The Centre will transfer to the importing State the credit of IGST used in payment of SGST
UTGST. Thus, the inter-State trade of goods and services (IGST) would need a robust settlement
mechanism amongst the States and the Centre. A Central Agency is needed which can act as a clearing
house and verify the claims and inform the respective Governments to transfer the funds. This is possible
only with the help of strong IT infrastructure.

Resultantly, Goods and Services Vehicle - has been set to provide a

Network (GSTN) a Special Purpose Goods and Services Network (GSTN)

Shared IT infrastructure and services of Central and State Governments, taxpayers and other stakeholders
for implementation of GST

The functions of the GSTN, inter alia, include

• Facilitating registration:

• Forwarding the returns to Central and State authorities

• Computation and settlement of GST:

• Matching of tax payment details with banking network

• Providing various MIS reports to the Central and the State Governments

Based on the taxpayer return information:

• Providing analysis of taxpayers profile; and

• Running the matching engine for matching, reversal and reclaim of input tax credit.
CHAPTER 3:- GST PORTAL
The government's portal for GST compliance is finally live and open for business registrations. The GST
portal is hosted at http://www.gst.gov.in and so far, only registrations are enabled on Existing taxpayers
or new businesses can apply to register and submit the required documents. All the existing registered
taxpayers will be granted provisional registration really and would be required to submit additional
documents within 6 months

GSTIN
For any dealer registered under state VAT law, a unique TIN number is issued by the respective state tax
authorities. Similarly, a service provider is assigned a service tax registration number by the Central
Board of Excise and Custom (CBEC). Going forward in the new GST regime, all these taxpayers will get
consolidated into one single platform for compliance and administration purposes and will be assigned
registration under a single authority. The government has set up GSTN-a special purpose vehicle to
provide the IT Infrastructure necessary to support GST digitally. It is expected that 8 million
Taxpayers will be migrated from various platforms into GST. All of these businesses will be assigned a
unique Goods and Services Tax Identification Number (GSTIN), but most are yet not aware of the new
registration process and the identification number.

Proposed GST Identification Number (GSTIN)

A complete beak up of the proposed GST Identification Number Each taxpayer will be allotted a state-
wise PAN-based 15-digit Goods and Services Taxpayer identification Number (GSTIN)

• The first two digits of the number will represent the state code as per Indian Census 2011

• The next ten dots will be the PAN number of the taxpayer • the thirteenth digit will be assigned based on
the number of

Registration within a state

The fourteenth digit will be Z by default the last digit will be for check code

A format of proposed GSTIN has been shown in the image below

 GST Registration

Every business carrying out a taxable supply of goods or services under GST regime and whose turnover
exceeds the threshold lint of Rs 20 lakh 10 Lakh as applicable will be required to register as a normal
taxable person This process is of registration is referred as GST registration. Importance of GST
Registration

GST registration is critical because it will enable you to avail various benefits that are available under the
GST regime. One such benefit is to avail seamless input tax credit. Multiple tabs are being dubbed under
GST and thus the cascading of taxes that is prevailing currently will no longer be the case. Abo. Timely
registration will help you avoid any kind of interface with tax authorities.

Casual Registration

A person who occasionally supplies goods and or services in a territory where GST is applicable but he
does not have a feed place of business Such a person will be treated as a casual taxable person as per
GST.

Example. A person who has a place of business in Bangalore supplies taxable consulting services in Pune
where he has no place of business would be treated as a casual taxable person in Pune.

Composition Dealer

This is an option available to all businesses and taxpayers having a turnover less than Rs.75 lakhs. They
can opt for Composition scheme where they will tax act a nominal rate of 1% or 250% (or manufacturers)
CGST and SGST each crates will be notified later). They will be required to maintain much less detailed
records and file only 1 quarterly return instead of three monthly returns However, they cannot issue
taxable invoices, Le, collect tax from customers. But are required to pay the tax out of their own pocket.
They cannot also claim any input tax credit. Composition levy is available to only small businesses. ARE
in not available to interstate seller, ecommerce traders, and operators.
Applicability
GST will apply when turnover of the business exceeds As 20 lakhs (Limit is Rs 10 lakhs for the North-
Easter Stales). Earlier the limit was Ra 10lakhs and Rs 5 lakhs for NE States
 Migration to GST

All existing Central Excise and Service Tax assesses and VAT dealers will be migrated to GST. To
migrate to GST assesses would be provided a Provisional D and Password by CBEC State Commercial
Tax Department

GST

Provisional IDs would be issued to only those assesse who have a valid PAN associated with their
registration. An assesse may not be provided a Provisional D in the following cases

1. The PAN associated with the registration is not valid 2 The PAN is registered with a State Tax
authority and Provisional ID has

Bean supplied by the said State Tax authority 3 there are multiple CEST registrations on the same PAN in
a State.

In This case, only 1 Provisional D would be issued for the 1st registration in the alphabetical order
provided any of the above 2 conditions are not met
The assessed need to use this Provisional and Password to login to the GST Common Portal
https:/www.gst.gov.in where they would be required to Ill and submit the Form 20 along with necessary
supporting documents.

Penalties for Not Registering Under GST

An offender not paying tax or making short payments has in pay a penalty of 10% of the tax amount due
subject to a minimum of Ra. 10.000. The penalty will be high at 100% at the tax amount when the
offender has evaded i.e., where there is a deliberate fraud. However, for other genuine errors, the penalty
is 10% of the tax due.
 Multiple Registrations Under GST

* A person with multiple business verticals in a state may obtain a separate registration for each business
vertical.

* PAN is mandatory to apply for GST registration (except for a non-resident person who can get GST
registration on the basis of other documents).

* A registration which has been rejected under COST AUSGST Act shall also stand rejected for the
purpose of SGST CGST act.
CHAPTER 4:- INPUT TAX
CREDIT
One of the fundamental features of GST is the name flow of input credit across the chain from the
manufacture of goods till it is consumed and cross the country.
GST SOFTWARE

The brink of one of the biggest business changes of our times viz. Goods and Services Tax So far, most of
the big businesses have already identified vendors for implementation of GST software. Many of the
large enterprises had floated a Request for Proposal Request for Information (RFP) late last year, asking
software providers to present them with their solutions. They would have then evaluated these providers,
over multiple product demos and extensive question and answer rounds to reach a stage where they can
now begin the implementation process, and undertake business process mapping and solutions

GST software, a list of some of the key features that software Provides

1. Cloud based GST. Software:

Clear tax GST is a cloud based software is. Developed and maintained on Internet which empowers us to
provide our users with the following features

Create a sync between working offline and backup on connectivity with internet

• Providing an updated version of your software without Bothering the user with additional efforts to
update the software

• Easy access to software from anywhere at any time without worrying about internet connectivity
2) No desktop for installation:

As the software is hosted on cloud user need not have a desktop system for installation of our software.

Clear Tax GST software can be downloaded as an offline software on system

Mobile app, mobile website desktop website.

User need not bear additional cost of installation of the software and utilities. Hence. You can login from
anywhere and anytime.

At the point of creating an invoice our software makes sure that all mandatory

Fields are accurately tiled

In case of any mistake, an alert or notification will be given for every error made in
an invoice along with report of all such invoices
 GST council has made the much-awaited announcements around tax rates on various categories of goods
on day one of a two day meeting of the said council Srinagar. There has been a hype around these rates
bra while and now these rates are finally in the public domain.

As soon as the GST rates were announced a huge wave of curiosity hit across industry and trade bodies.
Everyone is evaluating their position as a result of this change. So, in this article, we bring you our
analysis of these GST rates.

We know that the GST slabs are pegged at 5%. 12, 18% a 28%. According to tie GST council, the tax
structure for common-use goods we as under
GST Monthly Returns: -

Gst return procedure Based on the category of registered person such as monthly return is to be filed by
Regular, Foreign Non-Residents, ISD and Casual Tax Payers whereas Compounding Composite tax
payers has to file quarterly returns:

Needs to file Return in GST regime

Every registered dealer is required to file return for the prescribed tax period. A Return needs to be filed
even if there is no business activity (i.e. NI Return) during the said tax period of return.
Government entities / PSUS, etc. not dealing in GST supplies or persons exclusively dealing in
exempted / Nil rated/ non -GST goods or services would
Neither be required to obtain registration nor required to file returns under the

GST law.

• However, State tax authorities may assign Departmental ID to such government departments / PSUS /
other persons and will ask the suppliers to quote this ID in the supply invoices for all inter-State
purchases being made to them.

Salient Features of GST Returns

Filing of returns would only be through online mode. Facility of offline generation and preparation of
returns will also be available. The returns prepared in the offline mode will have to be uploaded.

There will be a common e-return for CGST, SGST, IGST and Additional Tax.

A registered Tax Payer shall file GST Return at GST Common Portal either by himself or through his
authorised representative.

• There would be no revision of Returns. Changes to be done in subsequent Returns

 ANALYSIS
GST CALCULATION
MODEL OF GST WITH EXAMPLE

The GST shall have two components: one levied by the Centre (referred to as Central GST or CGST),
and the other levied by the States (referred to as State GST or SGST). Rates for Central GST and State
GST would be approved appropriately, reflecting revenue considerations and acceptability.

The CGST and the SGST would be applicable to all transactions of goods and services made for a
consideration except the exempted goods and services

Cross utilization of ITC both in case of Inputs and capital goods between the CGST and the SGST would
not be permitted except in the case of inter-State supply of goods and services (i.e. IGST).

The centre and the states would have concurrent jurisdiction for the entire value chain and for all
taxpayers on the basis of thresholds for goods and services prescribed for the states and centre.
THE FOLLOWING COMPARISON SHOW THE BENEFIT OF GST:-

Notes: - Input tax credit available to wholesaler is Rs.980 and Rs.1,680 in case without GST and with
GST respectively
 GST BENEFITS TO COMMON MAN

The basis of Goods and Services Tax is the seamless flow of Input Tax Credit (ITC) along the entire
value addition chain. At every step of the manufacturing process, businesses will have the option to claim
the tax already paid in the previous transaction. Understanding this process is crucial for businesses. A
detailed explanation here.

To understand this, let us first understand what Input Tax Credit is. It is the credit an individual receives
for the tax paid on the inputs used in manufacturing the product. So, if there is a 10% tax that the
individual must submit to the government, he can subtract the amount he has paid in taxes at the time of
purchase and submit the balance amount to the government.

Understand this with a hypothetical numerical example.

Say a shirt manufacturer pays Rs.100 to buy raw materials. If the rate of taxes is set at 10%, and there is
no profit or loss involved, then he has to pay Rs.10 as tax. So, the final cost of the shirt now becomes Rs.
(100+10=) 110.

At the next stage, the wholesaler buys the shirt from the manufacturer at Rs.110, and adds labels to it.
When he is adding labels, he is adding value. Therefore, his cost increases by say Rs.40. On top of this,
he has to pay a 10% tax, and the final cost therefore becomes Rs.(110+40=) 150 + 10% tax = Rs.165.
Now, the retailer pays Rs.165 to buy the shirt from the wholesaler because the tax liability had passed on
to him. He has to package the shirt, and when he does that, he is adding value again. This time, let's say
his value add is Rs.30. Now when he sells the shirt, he adds this value (plus the VAT he has to pay the
government) to the final cost. So, the cost of the shirt becomes Rs.214.5 Let us see a breakup for this: cost
Rs.165 + value add= Rs.30+10% tax= Rs.195+Rs.19.5 +Rs.214.5
So, the customer pays Rs.214.5 for a shirt the cost price of which was basically only Rs.170
(Rs110+Rs.40+Rs.30).Along the way the tax liability was passed on at every stage of transaction and the
final liability comes to rest with the customer. This is called the Cascading Effect of Taxes where a tax
is paid on tax and the value of the item keeps increasing every time this happens.
In the case of Goods and Services Tax, there is a way to claim credit for tax paid in acquiring input. What
happens in this case is the individual who has paid a tax already can claim credit for this tax when he
submits his taxes.
In our example, when the wholesaler buys from the manufacturer, he pays a 10% tax on his cost price
because the liability has been passed on to him. Then he adds value of Rs.40 on his cost price of Rs.100
and this brings up his cost to Rs.140. Now he has to pay 10% of this price to the government as tax. But
he has already paid one tax to the manufacturer. So, this time what he does is, instead of paying Rs.(10%
of 140=) 14 to the government as tax, he subtracts the amount he has paid already. So, he deducts the
Rs.10 he paid on his purchase from his new liability of Rs.14, and pays only Rs4 to the government. So,
the Rs.10 becomes his input credit.
When he pays Rs.4 to the government he can pass on its liability to the retailer. So, the retailer pays Rs.
(140+14) 154 to him to buy the shirt. At the next stage, the retailer adds value of Rs.30 to his cost price
and has to pay a 10% tax on it to the government. When he adds value, his price Becomes Rs.170. Now,
if he had to pay 10% tax on it, he would pass on the liability to the customer. But he already has input
credit because he has paid Rs.14 to the wholesaler as the latter's tax. So, now he reduces Rs.14 from his
tax liability of Rs.(10% of 170-) 17 and has to pay only Rs.3 to the government. And therefore, he can
now sell the shirt for Rs.(140+30+17) 187 to the customer.

In the end, every time an individual was able to claim input tax credit, the sale price for him reduced and
the cost price for the person buying his product reduced because of a lower tax liability. The final value of
the shirt also therefore reduced from Rs.214.5 to Rs.187, thus reducing the tax burden on the final
customer

So essentially, Goods & Services Tax is going to have a two-pronged benefit. One, it will reduce the
cascading effect of taxes, and second, by allowing input tax credit, it will reduce the burden of taxes and
hopefully, prices.
CHAPTER 5:- IMPACT OF
GST
OVERALL GST IMPACT:

a) Change in law and procedure: Since it is a major indirect tax reform in India, there would be new
legislations and procedures. The entire indirect tax code would be a new one.

b) Change in tax-rates: The standard rate of 125 % for central excise, Service tax, along with residuary
rate of VAT at 12.5-14.5% brings the overall rate to 25%-30%. But, post GST, the general rate will be
18%; a net gain of almost 7%-12% Most of the dealers and consumers would experience the change in
tax rates, either significantly or marginally When the tax rates are increased for some products it could
lead to tax evasion as well

c) GST based on HSN: The central excise tariff based classification would no longer be applicable. It
would reduce the interpretational issues in respect of class of commodities

d) Availment of tax credit: GST would facilitate near seamless credit across the entire supply chain and
across all States under a common tax base. At present no cross credits are available across central excise
service tax to local VAT/sales tax. Under the GST law, the input tax credit (ITC) (set off) would be given
for Central GST against CGST and the States would give input tax credit (ITC) SGST to SGST. Cross
utilization credit between Central GST and State GST would not be allowed.

e) Credit availment based on vendor's invoices: The credit of excise duty paid is available based on the
excise invoice raised by manufacturer or service provider. The credit is available under the Service Tax
law when the invoice amount is paid within 3 months of the

Invoice data. In respect of joint charge and reverse charge, based on

Receipt of payment on the basis of payment challans of the assesse. Under State VAT law, credit is
allowable on the basis of tax invoice. Under GST the credits could be availed based on the invoices of
vendors under CGST and SGST. But the onus may shift onto the assesse to ensure that the amount of the
CGST/SGST has been deposited in the respective Government treasury by the vendor. This provision has
been added to bring in tax discipline but smaller businesses may find transaction cost increasing due to
this.

f) Avoidance of Double Taxation: Presently, several transactions suffer VAT as well as Service Tax
such as works contract or licensing of software. This could be resolved under the GST regime by
redefining what is goods and service.

g) Changes in the Accounting Software: Dealers and service providers need to modify replace the
accounting and taxation software. Initially there could be investment costs, costs of training in GST of
people at each level starting from junior/mid to higher level managerial staff, management
group/stakeholders.

h) Training: Comprehensive training would be required to the staff members of the business community,
both at senior level and also at junior level across the purchase, sales and finance functions. VAT + CE/
ST officers would also need to understand the law well.

i) Competent Professionals: There specialized consultants for Excise Duty, Service Tax and VAT. With
the GST, only a single consultant maybe required who can handle all GST matters.
Compliance for the SME may necessitate competent tax preparers

j) Amending existing contracts: Assesses have to incorporate an extra clause in the existing contracts to
collect CGST and SGST as applicable.

ON INDIA

Goods and Services Tax (GST) is expected to provide the much-needed stimulant for economic growth in
India by transforming the existing basis of indirect taxation towards free flow of goods and services
within the economy and also eliminating the cascading effect of tax on tax. In view of the important role
that India is expected to play in the world economy in the years to come, the expectation of GST being
introduced is high not only within the country, but also in neighbouring countries and in developed
economies of the world.

Some of the imp impacts are: -

a) Increased FDI: The flow of Foreign Direct Investments may increase once GST is implemented as the
present complicated/ multiple tax laws are one of the reasons foreign Companies are wary of coming to
India in addition to widespread corruption

(b) Growth in overall revenue: It is estimated that India could get revenue of $15 billion per annum by
implementing the Goods and Services Tax as it would promote exports, raise employment and boost
growth. Over a period, the dilution of the principles may see that only part of this is accruing.
(c) Single point taxation: Uniformity in tax laws will lead to single point taxation for supply of goods or
services all over India. This increases the tax compliance and more assesses will come into tax net.

(d) Simplified tax laws: This reduces litigation and waste of time of the judiciary and the assesse due to
frivolous proceedings at various levels of adjudication and appellate authorities. Present law appears to be
much worse and an amalgam of the bad parts of VAT/ST/CE.

(e) Increase in exports and employment: GST could also result in increased employment, promotion of
exports and consequently a significant boost to overall economic growth and factors of production -land
labour and capital.
ON INDIAN ECONOMY: -

a) 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 providing tax credit to the manufacturer.

b) 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.

c) A single taxation on producers would also translate into a lower final selling price for the consumer.

d) 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.

e) GST would add to government revenues by widening the tax base.

f) 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.

g) GST also removes the custom duties applicable on exports. Our competitiveness in foreign markets
would increase on account of lower cost of transaction

h) Fostering production: As per the Indian retail industry, the total tax component is around 30% of the
product cost. Due to the impact of GST, the taxes have gone down. So, the end consumer has to pay
lesser taxes. The reduced burden of taxes has enhanced the production and growth of the retail and other
industries.

i)SME support: Small and medium enterprises can now register under the Composition Scheme
introduced by GST. Through this scheme, they pay taxes according to their annual turnover. Therefore,
businesses having an annual turnover of Rs. 1.5 crores only have to pay 1% GST. Moreover, other
enterprises having a turnover of Rs. 50 lakh are required to pay 6% as GST.
j) Enhanced pan India operations: Companies can now avoid taxation roadblocks, such as toll plazas and
check posts. Earlier, these created problems, including damage to unpreserved products while
transporting them. So, manufacturers had to keep buffer stock to make up for the damages. These
overhead costs of storing and warehousing hampered their profit. A single taxation system has reduced
these problems. They can now transport their goods easily across India. This has resulted in the
improvement of their pan India operations.

k) Increase in exports: GST has reduced the customs duty on exporting goods. The cost of production in
the local markets has also decreased due to GST. All these factors have increased the rate of exports in
the country. Companies have become more competitive when it comes to expanding their businesses
globally.

The introduction of GST has helped merge the taxes of the state and central governments. This has helped
remove the cascading effect of multiple taxes. Therefore, the burden of taxes has reduced for companies
and customers. Not just this, taxpayers have increased in number and hence, the tax revenues have also
increased significantly. The overall taxation system is now easier to administer. Moreover, small- and
medium-sized enterprises are able to enhance their businesses. It is expected that GST will help more
Indian organisations to establish themselves in the international markets.
CHAPTER 6:- DATA
INTERPRETATION
  GENDER OF STUDENTS

Interpretations:

 The above pie chart is classified according to the gender of the students.

 According to the pie chart, the majority of students (54.3%) are male

 The remaining (45.7%) are female.

  AGE OF THE STUDENTS

Interpretation:
 The above pie chart is classified into the age of the people.

 According to data provided, the majority of people (61.4%) are aged 18-25 years.

 Followed by (5.7%) people who are aged less than 30 years

 Moderate aged people are over 35 years and above.

3. Education qualification of people

 The above pie chart is classified into the education of the people

 According to data provided, the majority of people (60%) belongs to degree.

 Followed by (27.1%) people who belongs to higher secondarily

 Very less people (1.5%) belongs to MBA

4. OCCUPATION OF PEOPLE

 The above pie chart is classified into the occupation of the people

 According to data provided, the majority of people (55.7%) belongs to students.

 Followed by (32.9%) people belongs to service sector.

 Very less people (5.7%) belongs to others.

 5. Annual income of people

 The above pie chart is classified into the annual income of the people

 According to data provided, the majority of people (55.7%) belongs to the income category below
2,50,000

 Followed by (21.4%) people belongs to the income category 2,50,000-5,00,000

 Very less people (10%) belongs to the income category 10,00,000 and above.
6. Do you think GST has impact on Indian economy?

 The above chart give response about the impact of GST on Indian economy

 74.3 % of people agreed to it that there is an impact of GST on Indian economy.

 Whereas 7.1 % of people do not agreed that there is an impact of GST on Indian economy.
7. Do you feel that the introduction of GST in India has affected the demand for the
product/services?

 The above chart give response about how the introduction of GST in India has affected the demand
for the product/services

 68.6% people feels that GST in India has affected the demand for product/services positively.

 Whereas 20% people feels that GST in India has affected the demand for product/services negatively.
8. What is your opinion should be justified turnover limit for businesses under
GST?

 The above chart give response of opinion of people about turnover limit for business under GST

 40% of the people justifies that turnover limit under GST business should be more than 20 lakhs.

 28.6% people justifies that turnover limit under GST business should be less than 10 lakhs.

 17.1% people justifies that turnover limit under GST business should be less than 20 lakhs.
9. According to you what is the change in business sales after GST implementation?

 The above chart give response of changes in business sales after implementation of GST

 50% of the people feels positively change in the sales after implementation of GST

 17.1% of the people feels that after implementation of GST sales has changed negatively

 8.6 % of the people feels no change in the sales after implementation of GST.
10. Are you satisfied with the time given to assesses to implement the GST council
decision (such as changes in rates structure, rules, processes)?

Interpretation:-

 The above chart give response of the people who are satisfied with the time given to assesses to
implementation the GST council decision or not.

 According to above chart, 41.4% people feels neutral for time given to assesses the
implementation of GST.

 After analysing above chart it was found that, 25.7% people are agreed with the time given to
assesses the implementation of GST.

 17.1% of people are disagreed with the time given to assesses the implementation of GST.
11. How has GST impacted the pricing of your products/services?

Interpretation:-

 The above chart give response of the people how has GST impacted on pricing of your
product/services.

 After analysing it was found that 57.1% people feels price to customer has increased after
implementation of GST

 21.4% people feels that price to customer has decreased after the implementation of GST

 21.4% people feels that there is no change in price even after implementation of GST
12. Does GST increase the burden of compliance?

Interpretation:-

 The above chart give response about GST increased the burden of compliance or not.

 54.3% of the people feels the burden of compliance of GST

 17.1 % of people does not feel the burden of compliance of GST

13. If yes, what has caused the increased compliance burden under GST?

Interpretation:-

 The above chart give response about causes that increased compliance burden under the GST

 36.8% of the people feels that requirement to match purchased and sales data between seller and
purchaser for claiming GST

 24.6% of the people feels multiple returns to be filled state wise

 Requirement to file transaction level details in GST return is 22.8% according to people.
14. Did you know what the taxes GST that replaced are?

Interpretation:-

 The above chart give response about taxes that has been replaced by GST

 after analysing it was found that 64.3% people says GST has replace central excise duty, VAT,
CST

 22.9% people says VAT has been replaced by GST

 8.6% people says that Central excise duty has been replace by GST
15. On overall basis do you think that GST is likely to have a positive impact on
Indian economy?

Interpretation:-

 According to above chart 61.4% people think that GST has positive impact on Indian economy.

 And 10% people thinks that GST has negative impact on Indian economy.
 CONCLUSION

Tax policies play an important role on the economy through their impact on both efficiency and equity. A
good tax system should keep in view issues of income distribution and, at the same time, also endeavour
to generate tax revenues to support government expenditure on public services and infrastructure
development. The ongoing tax reforms on moving to a goods and services tax would impact the national
economy, International trade, firms and the consumers There has been a good deal of criticism as well as
appraisal of the proposed Goods and Services Tax regime. It is considered to be a major improvement
over the pre-existing central excise duty at the national level and the sales tax system at the state level, the
new tax will be a further significant breakthrough and the next logical step towards a comprehensive
indirect tax reform in the country. GST is not simply VAT plus service tax, but a major improvement
over the previous system of VAT and disjointed services tax – a justified step forward. A single rate
would help maintain simplicity and transparency by treating all goods and services as equal without
giving special treatment to some ‘special’ goods and/or services. This will reduce litigation on
classification issues. It is also expected that implementation of GST in the Indian framework will lead to
commercial benefits which were untouched by the VAT system and would essentially lead to economic
development. Hence GST may guide in the possibility of a collective gain for industry, trade, agriculture
and common consumers as well as for the Central Government and the State Government. Sooner or
later, the GST will surely knock the doors of India.
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