A PROJECT REPORT

ON
GOODS AND SERVICES TAX

For

VIRENDRA YADAV
& CO.
(C.A. FIRM)

By

" PRAJAKTA J.SHINDE "

Submitted To

"SAVITRIBAI PHULE UNIVERSITY"

IN THE PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE
AWARD OF THE DEGREE OF
MASTERS IN BUSINESS ADMINISTRATION (MBA)
A.Y. 2022-2024

PROJECT GUIDE SUBMITTED BY

PROF. SONALI CHAUDHARI PRAJAKTA J.SHINDE

DEPARTMENT OF MBA MBA 3rd SEMESTER

DEPARTMENT OF MBA
RAJGAD INSTITUTE OF MANAGEMENT , RESEARCH &
DEVELOPMENT DHANAKAWADI PUNE - 411043
BATCH 2022-2024
1
 COLLEGE CERTIFICATE

DEPARTMENT OF MBA

RAJGAD INSTITUTE OF MANAGEMENT , RESEARCH &

DEVELOPMENT DHANAKAWADI PUNE - 411043
BATCH 2022-24.

MBA (FINANCIAL MANAGEMENT)

This is to certify that the project entitled "Goods & Services Tax". Which
is being submitted herewith for the award of Degree "Master of
Business Administration in FINANCE".

RAJGAD INSTITUTE OF MANAGEMENT , RESEARCH & DEVELOPMENT

DHANAKAWADI PUNE affiliated to SAVITRIBAI PHULE PUNE
UNIVERSITY, is the result of workcompleted by Mrs.PRAJAKTA
J.SHINDE under my supervision & guidance & best of knowledge and
belief.

Prof. Sonali Dr. D.D.Bharati

Chaudhari HOD Principal
ProjectGuide

3
 DECLARATION OF GUIDE

This to certify that the report of the project submitted is the outcome of
the project work entitled "Goods & Services Tax" submitted by
PRAJAKTA J.SHINDE carried under my guidance and supervision for the
award of Degree in Master of Business Administration from
Savitribai Phule Pune University. To the best of my knowledge, the
report embodiesthe work of the candidate himself.

Date- Signature of Guide

Place- Pune

4
 DECLARATION OF STUDENT

I the undersigned, hereby declare that the project report entitled “Study Of

Goods & Service Tax” In – VIRENDRA YADAV . (C.A. FIRM) submitted by me to

the

Savitribai Phule Pune University, Pune in partial fulfilment of the requirement

for the award of degree of Master of Business Administration (MBA) under

guidance of is my original work except the topics on

organization PROF.SONALI CHAUDHARI al profile and the conclusion drawn

therein are based on the material

collected by myself.

Date: Signature of Student

Place: - Pune PRAJAKTA J.SHINDE
 ACKNOWLEDGEMENT

I would like to express my deepest appreciation to all those who provided me the
possibility to complete this report. I have taken efforts in this project. However, it
would not have been possible without the kind support and help of many individuals
and the organization. I express my gratitude towards my Company Guide SAURAB
INGULKAR Sir, for allowing me to work under his guidance. Without help, guidance
and
support this project would not have been possible. I would like to take this
opportunity as privilege to express my deep sense of gratitude to Professors,
Honorable Founders, RAJGAD INSTITUTE OF MANAGEMENT ,RESEARCH &
DEVELOPMENT
DHANAKAWADI PUNE-411043
for their continuous encouragement, invaluable
guidance and help for completing thepresent research work. They have been a
source of inspiration to means I am indebtedto them for initiating me in the field of
research.

My deepest thanks to PROF.SONALI CHAUDHARI the guide of the project for guiding and
correcting various documents of mine with attention and care. She has taken pain to go
through the project and make necessary correction as and when needed.

I would also thank my institution and my faculty members without whom this project would
have been a distant reality. I also extend my heartfelt thanks to my family and well-wishers.

Date:

Place: Pune.
 PARVATIBAI GENBA MOZE COLLEGE OF ENGINEERING (MBA)
WAGHOLI, PUNE-412207.

Department of MBA

AY- 2022-2024

Project Outline Report for Summer Internship Project

● Name Of The Student – PRAJAKTA J.SHINDE

● Trainee Organization-

1. Name – VIRENDRA YADAV & CO. (CA FIRM)

2. Address - Pune, Maharashtra.

3. Email - ----------------------------------

4. Contact No - ------------------------------

● Internal Company Guide-

1. Name- SAURAB INGULAKAR

2. Contact No.----------------------------

●
Beginning Date of The Project: 1 OCT 2023

● Completion Date of Project: 15 DEC 2023

● Specialization- MBA (FINANCE)

● Title Of The Project - Study Of Goods & Service Tax

7
 INDEX

Sr Title Page No

1 CHAPTER 1: - INTRODUCTION

1.1 Concept and introduction of Tax

1.2 Brief History of Taxation
1.3 Essentials characteristics of Tax
1.4 Different types of Taxes
1.5 Executive Summary
2 CHAPTER 2: - OBJECTIVES OF STUDY
3 CHAPTER 3: - COMPANY PROFILE
3.1 Company Profile
3.2 Services offering
3.3 Top 3 CA Firm in India
4 CHAPTER 4:- REVIEW OF LITERATURE
5 CHAPTER 5:- RESEARCH METHODOLOGY
5.1 Introduction of Research Methodology
5.2 About Research Problems
5.3 Need of Study
5.4 Classification Of Data

6 CHAPTER 6:- DATA ANALYSIS

6.1 Concept & Introduction of
GST 6.2 Meaning Of GST
6.3 Purpose Of GST
6.4 Types Of GST in India
6.5 Silent Features Of GST
6.6 Opportunities Of GST

6.7 Benefits Of GST

6.8 Return of Filling Process

7 CHAPTER 7:- FINDINGS

8 CHAPTER 8:- SUGGESTIONS

9 CHAPTER 9:- CONCLUSION 8

10 CHAPTER 10:- BIBLIOGRAPHY
 CHAPTER 1: - INTRODUCTION

Concept and Introduction of Tax:

Taxation is the inherent power of the state to impose and demand contribution upon
persons, properties, or right for the purpose of generating revenues for public purposes.
Taxes are enforced proportional contributions from persons to property levied by the law-
making body of the state by virtue of its sovereignty for the support of the
government and all public needs.

Brief History of Taxation:

Tax is today an important source of revenue for the government in all the countries.
More than 3000 years ago, the inhabitants of ancient Egypt and Greece used to pay tax,
consumption taxes and custom duties. Income tax was first introduced in India in 1860
by James Wilson who become Indians First Finance Member. In order to meet the losses
sustained by the government on account of military mutiny of 1857. In 1918 A New
Income Tax bill was passed and which was further again replace in 1922. Finally, The
Ministry of Law and
Finance. The Income Tax was Passed in 1961 and brought came in force on 1st April
1962. and this is also known as the Financial Year in Current Era. I.е. (01.04.18 -
31.03.2019)

Taxation System:
Tax system of raising money to finance Government. All governments require payment
of money taxes from people. Government use revenues to pay soldiers and police to
build dams and roads, to operate schools and hospitals, to provide food to the poor
and medical care facilities etc and also hundreds of other purposes without taxes to
fund its activities, govt could not exist. So, taxation is the most important source of
revenues for modern government typically, according for 90% or more of their income.

9
Essentials Characteristics of Tax:
1. It is an enforced Contribution.
2. It is generally payable by Money.
3 It proportionate in character, usually based on ability to pay.
4. It is levied on person and property with the jurisdiction of the state.
5. It is levied for public purpose.
6. It is commonly required to be paid a regular interval.

Why are Taxes Levied?

The reason for levy of taxes is that they constitute the basic source of revenue to the
government. Revenue so raised is utilized for meeting the expenses of government like
defense, provision of education, health care, Infrastructure facilities like roads, dams etc.

What are the Reasons of Taxation?

1. Provide the basic facilities for every citizen of country.
2. Finance government multiple projects and schemes.
3. Protection of Life.
4. Responsibility of citizen to the Nation.

Meaning of Tax:

The word Tax came from Latin word "Taxo, Tax are " which means to asses or estimate.
Tax can be defined in the following ways: "The compulsory payments made to
governments associated with certain activities are called Taxes "
A general purpose, compulsory contribution by the people to public treasury to meet
the expenditure of government is called Tax " "A specific amount of money demanded
by government from its public levied on their income, sales, wealth etc. " "Taxes are the
price we pay for a civilized society " Tax in general, is the imposition of financial charge
upon an individual or a company by the govt of India or their respective state or similar
other functional equivalents in a state. The computation and imposition of the varied
taxes prevalent in the country are carried on by the Ministry of Finance Department of
Revenue.

10
Different Types Of Taxes:
Prevalence of various kinds of taxes is found in India. Taxes in India can be either
direct or indirect. However, the types of taxes even depend on whether a
particular tax is being levied by the central or the state government or any other
municipalities. Following are some of the major Indian government are:

• Direct Taxes:
• Indirect Taxes:
• Local Taxes in India:
• Income Tax:

Direct Taxes:

A direct tax is a tax that a person or organization pays directly to the entity that
imposed it. Examples include income tax, real property tax, personal property
tax, and taxes on assets, all of which are paid by an individual taxpayer directly to
the government.

• A direct tax is paid by an individual or organization to the entity that levied the
tax.
• Direct taxes include income taxes, property taxes, and taxes on assets.
• There are also indirect taxes, such as sales taxes, wherein a tax is levied on the
seller but paid by the buyer.

Indirect Taxes:
Indirect Tax An indirect tax is a tax collected by an intermediary from the person who bears
the ultimate economic burden of the tax. The intermediary later files a tax return and
forwards the tax proceeds to government with the return. GST is the most prominent
example of Indirect tax levied in India on the supply of goods & services. GST is levied at
every step in the production process, but is refunded to all parties in the chain of
production other than the final consumers. Goods & Services are divided into five tax slabs
for collection of tax - 0%, 5%, 12%, 18% and 28%. Petroleum products, alcoholic drinks,
electricity, and real estate are taxed separately by the individual state governments. India
adopted a dual GST model, meaning that taxation is administered by both the Union &
State governments. Transactions made within a single state are levied with Central GST
(CGST) by the Central government and State GST (SGST) by the State governments. For
inter-state transactions and imported goods & services, an integrated GST (IGST) is levied
by the Central government. The GSTN software is developed by Infosys Technologies and
11
IT network is maintained by the NIC.
Local Taxes In India:

This is levied annually by the local/municipal authorities on property for the maintenance
of basic civic services in a city, town, village or other municipality. In India, property tax is
paid by the property owner, and it is set at a specific rate by the local/municipal authority,
according to the property's value. The annual value is determined by the following:

• Municipal valuation - market value of the property set by the municipal/local authority
• Fair rent - rental value of let properties, according to the guidelines set by central
government
• Rent received (for let properties)

The annual value is zero for properties in which the owner resides continuously and is not let
out. Property tax is levied on:

• Apartments/flats
• Residential houses
• Shops
• Factories
• Office buildings
• Warehouses

Immovable property is also considered as a source of income, and any revenue generated
from it is subject to income tax. Therefore, vacant plots of land without any buildings are
taxed as an alternative income source, and are not subject to property tax. Additionally,
owners are entitled to deductions of up to 30 percent of the net value of a property for
repairs, building and maintenance. Further information about local property tax
regulations and required forms can be found on the official website of the relevant local
municipality.

Income Tax:
Income tax is a tax charged on the annual income earned by an individual. The amount of
tax paid will depend on how much money you earn as income over a financial year. One
can proceed with Income tax payment, TDS/TCS payment, and Non-TDS/TCS payments
online. All taxpayers must fill in the relevant details to make these payments. The entire
process becomes simple and quick.
Income tax for FY 2021-22 applies to all residents whose annual income exceeds Rs.2.5
lakh p.a. The highest amount of tax an individual could pay is 30% of their income plus cess at
4% if their income is more than Rs. 10 lakh p.a.
12
Who should pay Income Tax?

It is mandatory to file IT for individuals If the gross total income is over Rs.2.50,000 in a
financial year. This limit exceeds Rs.3,00,000 for senior citizens and Rs.5,00.000 for
super senior citizens. The entities listed below are required to pay tax and file their
income tax returns.

1. Artificial Judicial Persons

2. Corporate firms
3. Association of Persons (AOPs)
4. Hindu Undivided Families (HUFs)
5. Companies
6. Local Authorities
7. Body of Individuals (BOIs)

Executive Summary

The differential multiple tax regime across sectors of production leads to distortions in
allocation of resources thus introducing inefficiencies in the sectors of domestic
production. while indirect taxes paid the producing firms get offsets under state VAT and
CENVAT, the producers do not receive full offsets particularly at the state level. The
multiplicity of taxes further adds the difficulty in getting full offsets.
Add to this, the lack of full offsets taxes loaded on the fob export prices. The export
competitiveness gets negatively impacted even further. Efficient allocation of productive
resources and providing full tax offsets is expected to result in gains for GDP, returns to
the factors of production and export of the economy.
The joint working Group of the Empowered Committee of the State Finance Ministers
submitted to its report on the proposed Goods and Service Tax (GST) to the finance
minister in November 2007.A dual GST, one for the entre and other for the state was to be
implemented 1 April 2010. The new system would replace the state VAT CENVAT and
some other taxes. The proposed GST would eliminate the cascading effect and would
integrate hitherto disjointed goods and services taxes. It will lead to uniformity in tax
rates and procedures throughout the country.it will ensure better compliance and thus
will increases the revenue of both Centre and state.

13
 The export sector will also gain from his integration of state and Centre taxes.
Consumer will be benefited in form of lower tax rates. There will be dual tax rate viz.
Central GST (CGST) and state GST (SGST). also, for interstate sales there will be an
integrated GST. However cross credits among CGST and SGST are yet to be decided. It is
also proposed to keep certain taxes such as taxes on petroleum products to be kept out
of purview of GST.

14
 CHAPTER 2: - OBJECTIVES OF STUDY

I choose to work with MVJ & Associates. During this internship I have learnt many new
skills. Before internship I have only theoretical knowledge about work in organization but
now, I have some practical experience of working in organization. Now I have knowledge
about the organization's working environment and how organizations work and achieve
their goals and objectives. This internship has to gives me the understanding of business
and also about the elements of strategic thinking, planning and implementation, and how
these things are applied in a real-world organization environment. Following are the
objectives that I have in my mind before working as an internee.

• To analyze the business situation.

• To learn more than the theoretical knowledge.
• To apply the theoretical knowledge in actual organization.
• To make quick decision in real situations.
• To know how to present your recommendations in front of your boss.
• Expand networks of professional’s relationship & contacts.
• Develop organizational skills to complete the project in a timely manner.

15
 CHAPTER 03:- COMPANY PROFILE

ABOUT THE COMPANY

S. Surana & Co., Betul is one of the leading businesses in the Tax Consultants. Also
known for Tax Consultants, Income Tax Consultants, Accounting Services, Auditors
and much more. Find Address, Contact Number, Reviews & Ratings, Photos, Maps of
S. Surana & Co., Betul. S. Surana & Co., Betul., is an acknowledged consultant for
financial planning. This consultancy provides a full spectrum of financial and
accounting services, investment consultancy, project evaluation and services related
to all types of business and corporate agreements. Their specialty lies in providing
end-to-end support to start-ups as well as in shop act consultancy. This consultant's
office is at Jai Prakash Chowk, Betul, Madhya Pradesh, 460001. Undoubtedly it is one
of the best tax consultants near Baner, Pune.

CORPORATE SERVICES

Incorporation of company
Consultancy on Company Law matters.
Advisory Planning for Mergers, Acquisitions, De-mergers, and corporate re-
organizations.
Filing of annual returns and various forms, documents.
Clause 49 review for compliance with fiscal, corporate and tax laws.

SERVICES OFFERING

With over 8 years of experience in providing CA services to small and medium

enterprises. S Surana & C0. Chartered Accountants, help in choosing right form of
business registration Nagpur after understanding the business need, taxation
impact on the registration, future expansion plan, ownership structure which will
best suit to their business need.
company Registration: - The most common business composition is to register a put
Lid. company. Company registration will enable limiting the person liability of
promoters to the extent of paid-up capital. Promoters have to get DIN & check
availability of the company name. 16
One Person Company: - Register one-person company (W/s 2 (62) of Companies Act
2013) for quick start of your business within reasonable fees by experienced CA firms.

LLP Registration: - Limited Liability Partnership (LLP) has benefit of the company
registration & easiness of partnership. It is apt for small businesses. Experienced CA
firms can ease out the process within reasonable fees.

GST Registration: - GST registration of business is to enable selling of goods with

turnover value beyond a certain limit. Limit may differ from state to state. It is necessary
to get GST Input Tax Credit. Experienced CA firms can ease out the process within
reasonable fees.

Project Financing: - Companies need funds to grow their business. Experienced CA can
prepare project report for loan financing to ensure that you get best eligible amount in
the shortest time. Generally, fees are charged as percentage of financed amount.

ROC Fillings: - Periodic return form need to be submitted to Registrar of Companies

(ROC) for company's act compliance. Experienced CA firms can file timely & correct ROC
fling in reasonable overall cost.

GST Return: - GST returns to be filed on periodic basis by business to provide

information tout value of turnover & total OST liability & mode of payment. Frequency
may difer from state to state. Delays will attract penalty. Experienced CA firms can
ensure compliance with reasonable fees.

TDS Return: - Income tax act requires TDS (Tax Deducted at Source) deduction file the
IDS return on periodic basis by mentioning TAN No.

Income Tax (Salaried): - Income tax return of salaried employee can be filed with help
of Form 16 & Form 16A. Form 26 AS will help you in getting information about TDS on
salary. Experienced CA firm can help you for better tax planning and reduce the TDS.

17
Income Tax (Business): - Income Tax returns filing is requirement of Income Tax Act
for companies/businesses. Tax Audit Report helps in compliance of income tax laws.
Experienced CA firms can help in reducing non- compliance of income tax laws.

Tally Accounting: - Tally is most used accounting software. Small and medium sized
business can take services from CA firms who can allocate accountants to handle
accounting for your business.

Statutory Audits: - Get the statutory audit of your company under Companies Act
from experienced CA firms Statutory Audit is compulsory for any type of company.

TAX Audit: - Tax Audit is requirement of Income Tax Act for companies/large
businesses. Tax Audit Report helps in compliance of income tax laws & highlights key
tax related information. experienced CA firms can help in reducing non-compliance of
income tax laws.

Internal Audit: - Internal Audit & Internal Financial Control Testing is needed as per
companies Act. Internal Audit is not as compulsory as Statutory Audit. Internal auditor
can add value to your business to arrest leakage & improve control and efficiency.

18
AUDIT

Audit involves the following: In depth study of existing systems, procedures and
controls or proper understanding. Suggestions for improvement and strengthening.
• Ensuring compliance with policies, procedures and statures.
• comprehensive review to ensure that the accounts are prepared in accordance with
Generally Accepted Accounting Policies and applicable Accounting Standards/IRS.
• Checking the genuineness of the expenses booked in accounts.
• Reporting inefficiencies at any operational level.
• Detection and prevention of leakages of income and suggesting corrective measures to
prevent recurrence.
• Certification of the books of account being in agreement with the Balance Sheet and
Profit and Loss Account.
• Issue of Audit Reports under various laws.

Types of Audits conducted: -

❖ Statutory Audit of Companies.
❖ Tax Audit under Section 44AB of the Income Tax Act, 1961.
❖ Audit under other sections of the Income Tax Act, 1961 such as 80HHC, 80-IA, etc. ❖

Concurrent Audits.
❖ Revenue Audit of Banks.
❖ Branch Audits of Banks.
❖ Audit of PF Trusts, Charitable Trusts, Schools, etc. ❖

Audit of Co-operative Societies.

❖ Information System Audit. ❖

Internal Audits.

Top 3 CA firms in India

1. Deloitte: -

In term of Revenues, is the largest professional services network in the world Also on the basis

19
of number of professional, it is the largest professional services network. in the world.
Deloitte is known for providing audit, tax, consulting, enterprise risk and financial services to
more than 200,00 professionals in over 150 countries. They are advisors to many of the
Worlds most admired Brands. The Consulting services of industries wot on the theory of
'Providing practical perspectives and solutions to query’ Deloitte believes in ‘Good to make it
great’ They believe in ‘helping clients to become leaders’

2. PWC: -
Price Waterhouse Coopers has been the world's second largest professional services
network in terms of Revenue as surveyed in 2014 and is one of the Big Four Auditors and
stands neck to neck with Deloitte, EY and KPMG. The Firm believes in helping resolve
complex issues and identifies opportunities. People from all backgrounds such as arts,
business, economics, engineering, finance, health, information technology, law and more are
entertained.

KPMG: -

Having its global headquarters in Amstelveen, Netherlands, KPMG has been considered as
one of the largest professional services companies in the world. It is amongst the Big four
auditors, standing along with this firms, KPMG is 162000 people and performs three
services, viz Audit, Tax and Advisory. The Tax and Advisory services by the firm are further
divided into various service groups.

20
Gross Revenues of Big Four Accounting Firms: -

21
 CHAPTER 4: - Review of Literature

The proposed GST is likely to change the whole scenario of current indirect tax system. It is
considered as biggest tax reform since 1947. Currently, in India complicated indirect tax system
followed with imbrication of taxes imposed by unions and states separately. GST will unify all
the indirect taxes under as umbrella and will create a smooth national market. Expert says that
GST will help the economy to grow in more efficient manner by improving the tax collection is it
will disrupt all the tax barriers between states and integrate country by single tax rate.

GST was first introduced by France in 1954 and now it is followed by 140 countries. Most of
the countries followed unified GST while some countries like Brazil, Canada follow a dual GST
system where tax imposed by central and state both. In India also dual system of GST is
proposed including CGST and SGST

According to Tan and Chin-Fat (2000), Malaysian understanding regarding GST was still low.
Based on study conducted by Djawadi and Fahr (2013) pointed out that

knowledge about tax is important to increase the thrust of authorities and also the citizens.
Tulu (2007), indicate that other factors such as taxpayers' attitude or morale found to be the
result of lack of awareness has found to have little impact on taxpayers' attitude towards
taxation. A lot of individuals or taxpayers might want to comply in full with the tax systems, but
are unable to do so because they are not aware of and lack of understanding their full
obligations. Even they understand their obligations they may not know how to comply with it

cause of there is no two-way communications between the authorities and taxpayers. Dup
claimed that the ability of taxpayers to comply with the tax laws have a strong relationship with tax
awareness.

• Ehtisham Ahmed and Satya Poddar (2009) studied, "Goods and service tax reforms and
governmental consideration in India" "and found that GST introduction will provide plies and
transparent tax system with increase in output and productivity of economy in India. But the
benefits of GST are critically dependent on regional design of GST.

• Agogo Mawuli (May 2014) studied," Goods and Service Tax an Appraisal" and found that GST is
not good that low-income countries and does not provide broad based growth to poor countries.
If still countries want to implement GST, then the rate of GST should be less than 10% for growth.
22
 CHAPTER 5: - Research Methodology

Introduction of Research Methodology:

Research is a logical and systematic search for new and useful information on a particular
topic. is a Research methodology is a systematic way to solve a problem. It is a science of
studying how research is to be carried out. Essentially, the procedures by which researchers
go about their work describing, explaining and predicting phenomenon are called research
methodology.

About My Research Problem

The present research is exploratory in nature. Since GST is a new phenomenon in India,
there hardly any studies in this area. Specially there is a huge gap of empirical and behavior
studies on Tin India. The study tries to find the significance of popular perception regarding
GST.

Problem Statement:
The title of Project Report: A Study on Goods and Service Tax.
Annapurna Manufacturer to wholesaler taxing on total bill for the product sold Ÿ Wholesaler
to distributor taxing on total bill for the product sold Ÿ Distributor to Retailer taxing on total
bill for the product sold Ÿ Retailer to Consumer itemized / total bill taxing for the product
bought

Need of Study: The Need of study have to fill the gap that has identified in the previous
23
researchers. Under this study We know that how much level of understanding the
GST and Perception towards GST as well as traders, taxpayers concerned by GST.

Classification of Data:

The correct information is the key to success. Data information is of two types;
Primary Data and Secondary Data. Primary data is information collected by
researcher or person himself where is secondary data is collected by other but
utilized or used by researcher. Data can be classified under two categories
depending upon source utilized.
These categories are:

✓ PRIMARY DATA
• Discussion with experts
• Questionnaires with investors

✓ SECONDARY DATA
• Web sites were used as the vital information source

24
 CHAPTER 6: - DATA ANALYSIS

Concept Of Goods and Service Tax (GST)

Introduction Of GST

The reference of GST was first made in the Indian Budget in 2006-07 by the Finance Minister
Mr. P. Chidambaram as a single centralized Indirect tax. The GST constitution ( 22nd)
Amendment Bill 2014 was introduced on December 19, 2014 and passed on May 06, 2015 in
the lok sabha and yet to be passed in the Rajya Sabha.
The bill seeks to amend the constitution to introduce Goods and Services tax vide proposed
new article 246 A. This article gives power to Legislature of every state and parliament to
make laws with respect to goods and services tax where the supplies of goods or of service
take place. Recently, Union Minister Mr. Arun Jaitley said that GST could be implemented as
early as January 1, 2016.

Note: The word bill may be interpreted as the constitution (122nd) Amendment Bill 2014.

GST

CENTRAL GST STATE GST

It will Subsume the following taxes: will Subsume the following taxes:
Central Excise Duty VAT / Sales Tax
Additional Excise Duty Purchase Tax
Service Tax Entertainment Tax
Countervailing Duty (CVD) Luxury Tax
Additional Duty of Customs Lottery Tax
Surcharge, Education and secondary, State Surcharge & Cases Leviable
Higher Secondary Cess

25
Meaning Of Goods and Service Tax (GST)

Clauses 366 (12A) of the constitution Bill defines GST as" goods and service tax"
means y tax on supply of goods, or services or both except taxes on the supply of
the liquor for human consumption. Further the clause 366 (26A) of the Bill defines
Services means anything other than Goods.
Thus, it can be said that GST is a comprehensive tax levy on manufacture, sale and
consumption of goods and services at a national level. The proposed tax will be
levied on all transactions involving supply of goods and services, except those which
are kept out of its preview.

Purpose of GST:
The Two Important purposes of GST are Followings:

single Umbrella Tax Rate:

GST shall replace a number of indirect taxes being levied by union and state government.

Removing Cascading Effect:

GST is intended to remove Tax on Tax Effect and provides to common national market for Goods and
Services.

Types Of Categories under GST rate:

The GST tax is levied based on Revenue Neutral Rate. For the purpose of imposing GST tax in
India, the goods and services are categorized in to four.
These are four categories of goods and services are follows:

Exempted Categories under GST in India:

The GST and council and other GST authorities notifies list of exempted goods. Such goods are not
fallen under payment of GST tax. The authorities may modify or amend the list time
to time by adding deleting any item if required by notification to public.

Essential Goods and Services for GST in India:

Essential Category of goods and services are charged very lower GST rate. Essential goods and
services are the goods and services for necessary items under basic importance.

26
Standard Goods and services for GST in India:
A major share of GST tax payers falls under this category of Standard Goods and Service. A
Standard rate is charged against the goods and services under this category.

Special Goods and Services for GST tax Levy:

Under special category goods and services, GST mates would be high Precious metal including
luxury items of goods and services fall under special goods and services for GST rate
implementations.

GST rates in India at a glance:

Exempted categories: 0
commonly used Goods and Services: 5% Standard
Goods and Services fall under 1st Slab: 12%
Standard Goods and Services fall under 2nd Slab: 18% special category of Goods and Services
including Luxury Goods: 28%

Types of Goods and Service Tax in India:

1.CGST (Central Goods and Service Tax): GST to be levied by the Centre.
2.SGST (State Goods and Service Tax): The GST is to be levied by the states is State GST
3.IGST (Integrated Goods and Service Tax): Integrated GST will be levied by the Centre
and the states concurrently.
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Different Taxes are Cover under GST:

1. State taxes which will be subsumed in SGST:

• VAT/ Sales Tax.
• Luxury Tax.
• Entertainment Tax (unless it is levied by local bodies)
• Taxes on Lottery, betting, and gambling.

2. Central Taxes which will be subsumed in CGST:

• Central Excise Duty.
• Additional Excise Duty.
• Service Tax.

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 • The Excise duty levied under the medical and toilet preparation Act.
• Additional Customs Duty.
• Education Less. Surcharges.

3. Taxes that will not be subsumed:

• Stamp Duty.
• Electricity Duty.
• Other Entry taxes and Octroi Entertainment Tax (levied by local bodies.)
• Basic Customs duty and safeguard duties on import of goods in to India.
Professional Tax.

Salient Features of GST

The salient features of GST are as under:
1. The GST would be applicable on the supply of goods or services as against the
present concept of tax on the manufacture and sale of goods or provision of services. It
would be a destination-based consumption tax.
2. It would be a dual GST with the Center and States simultaneously Levine it on
common tax bast. The GST to be levied by the Center on intrastate supply of goods and / or
services would be called the Central GST (CGST) and that to be levied by the States would be
called the State GST (SGST).

3. The GST would apply to all goods other than alcoholic liquor for human consumption
and five petroleum products, viz. petroleum crude, motor spirit (petrol), high speed
diesel, natural gas and aviation turbine fuel. It would apply to all services barring a few
to be specified.

4. Tobacco and tobacco products would be subject to GST.

5. The GST would replace the following taxes currently levied and collected by the Centre:
a. Central Excise duty
b. Duties of Excise (Medicinal and Toilet Preparations)
c. Additional Duties of Excise (Goods of Special Importance)
d. Additional Duties of Excise (Textiles and Textile Products)
e. Additional Duties of Customs (commonly known as CVD)
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f. Special Additional Duty of Customs (SAD)
6. State taxes that would be subsumed under the GST are:
a. State VAT

b. Central Sales Tax

c. Luxury Tax
d. Entry Tax (all forms)
e. Entertainment and Amusement Tax (except when levied by the local bodies)
f. Taxes on advertisements
g. Purchase Tax
7. The CGST and SGST would be levied at rates recommended by the GST Council.
8. There would be a floor rate with small band of rates within the states may fix the rates for
SGST.

9. The list of exempted goods and services would be common for the Center and the States
which would be finalized by OST Council.

10. An Integrated GST (IGST) would be levied and collected by the Center on Interstate supply
of goods and services. Accounts would be settled periodically between the Center and the States
to ensure that the SGST portion of IGST is transferred to the destination State where the goods or
services are eventually consumed.

11. Tax payers shall be allowed to take credit of taxes paid on inputs (input tax credit) and utilize
the same for payment of output tax. However, no input tax credit on account of CGST shall be
utilized towards payment of SGST and vice versa. The credit of IGST would be permitted to be
utilized for payment of IGST, CGST and SGST in that order.

12. HSN (Harmonized System of Nomenclature) code shall be used for classifying the goods
under the GST regime. It is being proposed that taxpayers whose turnover is above Rs. 1.5 cores
but below Rs. 5 cores shall use 2-digit code and the taxpayers whose turnover is Rs. 5 cores and
above shall use 4-digit code. Taxpayers whose turnover is below Rs. 1.5 cores will not be
required to mention HSN Code in their invoices.
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13. Exports shall be treated as zero-rated supply. No tax is payable on export of goods or
services but credit of the input tax related to the supply shall be admissible to exporters and
the same can be claimed as refund by them.

Opportunities of GST:

1. Reduces the corruption

It is one of the major problems that India is overwhelmed with. We cannot expect anything
substantial unless there exists a political will to root it out. This will be a step towards
corruption free Indian Revenue Service.

2. 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 This, will lead to higher amount of revenue to
both the states and the union.

3. Reduces transaction costs and unnecessary wastage's

If government works in an efficient mode, it may be also possible that a single registration
and single compliance will suffice for both SGST and CGST provided government produces
effective IT infrastructure and integration of such infrastructure of states level with the
union.

4. Eliminates the multiplicity of taxation

One of the great advantages that a taxpayer can expect from GST is elimination of
multiplicity of taxation. The reduction in the number of taxation applicable in a chain of
transaction will help to clean up the current mess that is brought by existing indirect tax
laws.

5.One Point Single Tax

Another feature that CST must hold is its should be 'one-point single taxation. This also gives
a lot of comforts and confidence to business community thar they would focus on Business
rather than worrying about other taxation that may crop at later stage, this will help the
business community to decide their supply chain, pricing moralities and in the long run helps
the consumers being goods competitive as price will no longer be the fiction of tax
components but
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function of sheer business intelligence and innovation.

6. Reduces average tax burdens

Under GST mechanism, the cost of tax that consumers have to bear will be certain, and GST
would reduce the average tax burdens on the consumers.

Benefits of GST

(A) Make in India

(i) Will help to create a unified common national market for India, giving a boost to foreign
investment and "Make in India" campaign.
(ii) Will prevent cascading of taxes as Input Tax Credit will be available across goods and
services at every stage of supply.
(іii) Harmonization of laws, procedures and rates of tax.
(iv) It will boost export and manufacturing activity, generate more employment and thus
increase GDP with gainful employment leading to substantive economic growth.
(v) Ultimately it will help in poverty eradication by generating more employment and more
financial resources.
(vi) Improve the overall investment climate in the country which will naturally benefit the
development in the states.
(vii) Uniform SGST and IGST rates will reduce the incentive for evasion by eliminating rate
arbitrage between neighboring States and that between intro and inter-state sales.

B) Ease of Doing Business

1. Simpler tax regime with fewer exemptions.

2. Reductions in the multiplicity of taxes that are at present governing our indirect tax system
leading to simplification and uniformity.

3.Reduction in compliance costs - No multiple record keeping for a variety of taxes - so lesser
investment of resources and manpower in maintaining records.

4.Simplified and automated procedures for various processes such as registration, returns,

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refunds, tax payments, etc.

5.All interaction to be through the common GSTN portal- so less public interface between
the
taxpayer and the tax administration.

6.Will improve environment of compliance as all returns to be filed online, input credits to be
verified online, encouraging more paper trail of transactions.

7. Common procedures for registration of taxpayers, refund of taxes, uniform formats of tax

return, common tax base, common system of classification of goods and services will lend
greater certainty to taxation system.

8. Electronic matching of input tax credits All across India thus making the process more
transparent and accountable.

(C) Benefit to Consumers:

(i) Final price of goods is expected to be lower due to seamless flow of input tax credit
between the manufacturer, retailer and service supplier.

(ii) It is expected that a relatively large segment of small retailers will be either exempted
from
tax or will suffer very low tax rates under a compounding scheme- purchases from such
entities
will cost less for the consumers.

(iii) Average tax burden on companies is likely to come down which is expected to reduce
prices
and lower prices mean more consumption.

RETURN

1.Return fling process for Normal Assesses:

Step 1: Supplier (GSTR-1):

cover all outward supplies effected during/in earlier tax period and submit GSTR-1.
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Step 2: Recipient (GSTR-2):
➢ GSTR-2A (of recipient) shall be auto-generated based on GSTR-1 filed by Supplier.
➢ Following shall also be made available with recipient for preparation of GSTR-2
• Part-A of GSTR-2A showing inward supplies & DN/N of suppliers;
• Part-B of GSTR-2A showing ITC transferred to recipient by ISD as per GSTR-6
• Part-C of GSTR-2A showing TDS deducted by diductors as per GSTR-7.
• Part-D of GSTR-2A showing TCS collected by E-commerce operator as per GSTR-8.
➢ Recipient shall correct any mistake in GSTR-2 on basis of auto-populated GSTR-2 &
2A and BOA.
➢ Recipient shall mention ITC ineligible on inward supplies relating to non-taxable supply/
personal use of goods/ etc. in GSTR-2;

➢ Any correction made by recipient in GSTR-2 shall be auto populated and made available
using GSTR-1A to the supplier for making corrections in GSTR-1.
Note: GSTR 1 relevant details are auto-populated in GSTR-2A which is visible to recipient and
GSTR-2 relevant details are auto-populated in GSTR-1A which is visible to supplier.

Step 3: Monthly return (GSTR-3)

• Part-A of GSTR-3 shall be auto-populated from GSTR-1 & GSTR-2, details of

• Pay Tax as per GSTR-3 & fill the details in Part-B:
• Apply for refund in Part-B in case of balance in Electronic Cash Ledger (option of
Assesses)

Step 4: Mismatch Report (GST ITC-1) (Assuming compliance for August)

• Communication of mismatch to both supplier and recipient latest by last date of the
month in which mismatch being carried out (by Sept. end)

• If rectification not done by date, then Output liability of recipient would be increased
by such amount succeeding the output liability of recipient Orphancy communicated
(i.e. of Oct.)

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2) GST Return - Miscellaneous Points

a) Reduction of Sales Value of Invoice - Process

• Issuance of Credit Note (CN) by Supplier;

• Insertion of details in GSTR-1 by Supplier;
• Acceptance of CN in GSTR-2A by recipient.

b) TDS Certificate shall be issued automatically in GSTR-7A on the basis of return filed by
deductor in GSTR-7.

c) GSTR-3 (Monthly Return Form)

• Part- A is fully automated.

• Only adjustment entries and challan information will be entered in Part-B.
• Cash ledger (tax deposit in cash and TDS/ TCS) will made separately CGST, SGST for
and IGST.

d)Mismatching:

• Any mismatch being rectified at a later stage would be shown in GSTITC-1.

• In case of reversal of interest paid on mismatch on account of rectification of returns,
amount shall be credited to electronic cash ledger in GST PMI-3
• The following case shall be assumed as no mismatch:
If ITC claimed by Buyer is less than Output tax paid by Seller
If Reduction of Output Liability by Supplier using Credit note is less than the ITC claim
reduced in return by recipient.

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3)GST Return Forms and Due date of returns Normal Assesses:

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 CHAPTER 7: - FINDINGS

After Analysis these are followings, findings were emerged:

❖ GST is very good tax reform for India and it is the turning point of the taxation

system

❖ Most of the customers perception that GST is very beneficial in Long Term for

economy of the country and also effect of GDP.

❖ GST has increased the various Legal formalities.

❖ Need more clarity on GST and opened that discuss about GST with others.

❖ Most of the customers opinion that GST is fair tax. And also, GST is

predominantly compliance tax.

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 CHAPTER 8: - SUGGESTIONS

❖ The customers suggested that there should be a smooth, transparent and simple
transition
provisions which is easily understandable.

❖ Special focus on awareness and training of all offers, professionals and assesses

should
be given on GST.

❖ Since the public are very clear about OST, any disputes on OST introduction should be
protectively addressed by way of speedy redress.

❖ The relevant authorities especially the customers department must work closely

with other departments like information, Inland Revenue and other enforcement

authority ensure good implementation.

❖ Lastly, the government must ensure a good management of the

income collected from the GST.

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 CHAPTER 9: - CONCLUSION

➢ This study highlighted the overall overview of GST.

➢ The Government to put in more effort to ensure that Consumers have a clear
understanding and develop a positive perception towards GST, leading to its
acceptance.

➢ Good understanding among customers is important as it can generate a positive

perception towards the taxation policy.

➢ The Custom Department could initiate and promote an extensive publicity

program means which could help to create awareness and generate positive
perception among customers in understanding the rationale and importance of
GST in India.

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 CHAPTER 10: - BIBLIOGRAPHY

• www.caportal.saginfotech.com
• www.gstindia.com
• https://en.wikipedia.org
• www.gstn.org
• www.cbec.gov.in
• www.financialexpresss.com
• www.gstcounsil.gov.in
• www.researchget.com
• www.gsthelpline.com
• www.services.gst.gov.in
• www.taxguru.in
• www.cleartax.com

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