Journal of Positive School Psychology http://journalppw.

com
2022, Vol. 6, No. 8, 3167-3184

“Study & Calculation Of Goods And Service Tax (Gst)”

Dr. Rajesh Gade1 , Dr. Rishikaysh Kaakandikar2 , Dr. Anil Poman3

1
Assistant Professor Lotus Business School, Pune.
2
Department of Management, Zeal College of Engineering and Research Narhe Pune.
3
Faculty of Management.

Abstract :

Goods and repair Tax (GST) is a revenue enhancement levied in India on the sale of products and services. Goods and
services are divided into five tax slabs for collection of tax - 0%, 5%, 12%, 18% and 28%. Petroleum products and
alcoholic drinks are taxed separately by the individual state governments. there's a special rate of 0.25% on rough
precious and semi-precious stones and three on gold. additionally, a cess of twenty-two or other rates on top of 28%
GST applies on few items like aerated drinks, luxury cars and tobacco products.

The tax came into effect from July I, 2017 through the implementation of 1 Hundred and amendment of the Constitution
of India by the Modi government. The tax replaced existing multiple cascading taxes levied by the central and state
governments. The tax rates, rules and regulations are governed by the products and Services Tax Council which
comprises finance ministers of center and every one the states. GST simplified a slew of indirect taxes with a unified
tax and is therefore expected to dramatically reshape the country's 2.4 trillion-dollar economy.
The differential multiple tax regime across sectors of production ends up in distortions in allocation of resources thus
introducing inefficiencies within the sectors of domestic production. When indirect taxes paid by the
manufacturing firms get off sets under state VAT and CENVAT, the producers do not receive full off sets particularly
at the state level. The multiplicity of taxes further adds the problem in getting full offsets.
Add to this, the dearth 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 anticipated to lead
to gains for GDP, returns to the factors of production and export of the economy

Keywords: GST, Export, Import, GDP, Tax System, VAT.

Introdution ➢ SGST - State Goods and Services Tax

Goods and Services Tax (GST) ➢ CGST - Central Goods and Services Tax
➢ IGST-Integrated State Tax
Goods and Services Tax (GST) is an indirect taxation in
Thereafter, State Legislatures of various States
India merging most of the present indirect taxes into
have passed respective State Goods and Services
single system of taxation. it had
Tax Bills. After the enactment of assorted GST
been introduced because the Constitution (One
laws, GST was launched with effect from 1st July
Hundred and First Amendment)
2017 by Sh. Narendra Modi, Hon'ble Prime
Minister of India within the presence of Sh.
Act 2016, following the passage of Constitution 122nd
Pranab Mukherjee, the then President of India in
Amendment Bill. The GST is governed by GST Council
an exceedingly mid-night function at the Central
and its Chairman is Union minister of finance of India,
Hall of Parliament of India.
Mr. Arun Jaitley.
GST was implemented from July 1, 2017
GST could be a comprehensive taxation on
manufacture, sale and consumption of products and Facts-
services throughout India (Except state of Jammu and
• France, first country to introduce
Kashmir), to interchange taxes levied by the central and
single GST(VAT) in 1954.
state governments.
• Brazil, Canada has dual GST.
 Dr. Rajesh Gade 3168

• 160 countries have implemented method way more transparent, corruption-free and
GST/VAT in some form or other. efficient.
• India will follow Canadian model of
GST. Objective of the Research:

The general objective of the study is to get practical

GST has 4 tax slabs- insights of Goods and Service Tax.
• 5% slab
• 12% slab The specific objectives are as follows:
• 18% slab
• 28% slab a. To Calculation of Goods and Service Tax
(CGST, SGST, IGST) of prerana associate client
GST BENEFITS
b. To Calculate and working on the of product,
Repair & services sold by the prerana associate
client (sale, purchase, GST).

c. To study of summarized GST calculation of

GSTR 1 and GSTR 3B

d. To study of GST impact on the

business/company

Central Goods and Service Tax.

CGST means Central Goods and Service Tax. CGST is

Elimination of Cascading Effect of Taxes
a part of goods and service tax. It is covered under
GST subsumes most of the indirect taxes being levied
Central Goods and Service Tax Act 2016. Taxes
across the country, thus eliminating the “tax on tax”
collected under Central Goods and Service tax will be
effect which has been plaguing the provision chain and
the revenue for central Government. Present Central
increasing costs for the top user.
taxes like Central excise duty, Additional Excise duty,
Special Excise Duty, Central Sales Tax, Service Tax
Seamless flow of Input step-down
etc. will be subsumed under Central Goods and Service
The seamless availability of Input Tax Credit will
Tax.
actually encourage suppliers to pay taxes, bringing
down the nonpayment level furthermore as that of tax State Goods and Service Tax
corruption
SGST means State Goods and Service Tax. It is covered
under State Goods and Service Tax Act 2016. A
Common Market
collection of SGST will be the revenue for State
GST will effectively dissolve state boundaries, because
Government. After the introduction of SGST all the
the same charge per unit prevails across the
state taxes like Value Added Tax, Entertainment Tax,
complete country. Also, the removal of
Luxury Tax, Entry Tax etc. will be merged under SGST.
Central nuisance tax (levied earlier on inter-state
For example, if goods are sold or services are provided
sales) and therefore the removal of VAT (different in
within the State then SGST will be levied on such
several states) will mean that the complete country will
transaction
become tier playing ground for all businesses.
Integrated Goods and Service Tax
Technology led Law
GST has been designed in such a way than compliance IGST means Integrated Goods and Service Tax. IGST
will now become largely supported technology. The falls under Integrated Goods and Service Tax Act 2016.
reduction of human intervention will make the Revenue collected from IGST will be divided between
3169 Journal of Positive School Psychology

Central Government and State Government as per the 3. Maintenance of Records: A taxpayer or
rates specified by the government. IGST will be charged exporter would have to maintain separate
on transfer of goods and services from one state to details in books of account for an ailment.
another state. Import of Goods and Services will also be utilization or refund of Input Tax Credit of
deemed to be covered under Inter-state transactions so CGST. SGST and IGST
IGST will be levied on such transactions. For example, 4. GST on Imports: Centre will levy 1GST on
if Goods or services are transferred from Rajasthan to inter-State supply of goods and services.
Maharashtra then the transaction will attract IGST import of goods will be subject to basic customs
duty and IGST.
Features of GST
5. Maintenance of' Records: A taxpayer or
exporter would have to maintain separate
1. Dual Goods and Service Tax: CGST and SGST
details in books of account for an ailment.
2. Payment of GST: The CGST and SGST are to
utilization or refund of Input Tax Credit of
be paid to the accounts of the central and states
CGST. SGST and IGST
respectively.

GST Identification Number

GSTN business will be able to manage tax easily. Unlike

current indirect tax, where there are multiple sites
Goods and Service Tax Network (GSTN) is a one stop
backed by provisions and compliances, it Will become
solution for all your indirect tax requirements. It is a
lot easier for the assesses and government to track the
Section 25, not for profit organization owned by
status of returns and payments with the help of GSTN
government and private players jointly. GSTN has been
entrusted with the responsibility of building Indirect
Tax Invoice:
Taxation platform for GST to help you prepare, file,
rectify returns and make payments of your indirect tax A registered taxable person supplying –
liabilities. Just because it will be a one stop solution for
all indirect tax requirements, 1. taxable goods shall issue, at the time of supply,
 Dr. Rajesh Gade 3170

a tax invoice showing the description. quantity website, and clear tax website.
and value of goods, the tax charged thereon and
such other particulars as may be prescribed; TYPES OF DATA RESEARCH:

2. taxable service shall issue a tax invoice, within Secondary Data:

the prescribed time, showing the description, Secondary data is the data that are already available i.e.,
the tax charged thereon and such other they refer to the data which have already been collected
particulars as may be prescribed; and analyzed the by someone. After doing the data
Provided that a registered taxable person may issue a collection in primary data, the researcher did the
revised invoice against the invoice already issued collection through the secondary data. In this there are
during the period starting from the effective date of several types such as:
registration till the date of issuance of certificate of a) Monthly Purchase & Sale
registration to him b) GST details of the Company
c) yearly GST return (GSTR9)
RESEARCH METHODOLOGY

Data collection sources:

MEANING OF RESEARCH:
There are many methods used to collect or obtain data
for statistical analysis. Three of the most popular
Research is nothing but search for knowledge. Research
methods are:
can be defined as a scientific and systematic search for
1) Direct Observation
pertinent information on a specific topic. Research is an
2) Personal Interview (Telephone Interview)
art of scientific
investigation. Sampling
Research Methodology is a way to solve the research • Sampling Unit: 1 Year data
problem. It may be understanding as a science of • Sampling Method: Simple random sampling
studying how research is done scientifically in research • Sample Size: 3-year data
methodology collecting the data is very important step. • Research Instrument: Direct Observation
Data is classified in following types as primary data,
secondary data and source of data. DATA ANALYSIS & INTERPRETATION

Statement Analysis in Excel Sheet

Methodology
For the preparation of this report both primary and GSTR 1
secondary sources of data are used. The secondary data
are collected from annual reports, brochures, website of is a monthly return that summarizes all sales (outward
GST, different financial magazine, published supplies) of a taxpayer.
documents. Most of the information in this report is GSTR-1 is a monthly or quarterly return that should be
written on the basis of experience gained by the internee filed by every registered GST taxpayer, except a few as
in the company during the period of internship. While given in further sections. It contains details of all
preparing this report I took help from company staff and outward supplies i.e., sales. The return has a total of 13
group discussion with friends. I have consulted related sections, listed down as follows:
departmental staff as a primary source. For the
secondary data I used GST website, financial express
• Tables 1, 2 & 3: GSTIN, legal and trade names, and aggregate turnover in the previous year

• Table 4: Taxable outward supplies to registered persons (including UIN-holders) excluding zero-rated
supplies and deemed exports

• Table 5: Taxable outward inter-state supplies to unregistered persons where the invoice value is more
than Rs.2.5 lakh

• Table 6: Zero-rated supplies as well as deemed exports

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• Table 7: Taxable supplies to unregistered persons other than the supplies covered in table 5 (net of debit
notes and credit notes)

• Table 8: Outward supplies that are nil rated, exempted and non-GST in nature

• Table 9: Amendments to outward supplies that are taxable and reported in table 4,5 & 6 of the earlier
tax periods’ GSTR-1 return (including debit notes, credit notes, refund vouchers issued during the current
period)

• Table 10: Debit note and credit note issued to unregistered person

• Table 11: Details of advances received or adjusted in the current tax period or amendments of the
information reported in the earlier tax period.

• Table 12: Outward supplies summary based on HSN codes

• Table 13: Documents issued during the period.

(Source tally ERP GSTR 1 Excel)

PARTICULARS SALES SALES RETURN TOTAL

TOTAL TAXABLE 36,730.00 0 36,730.00

IGST 0 0 0

CGST 3,305.70 0 3,305.70

SGST 3,305.70 0 3,305.70

TOTAL 43,341.40 0 43,341.40

 Dr. Rajesh Gade 3172

Name of Recipient Invoice GST Taxable IGST CGST SGST

Value rate value of
invoice
sales 43,341.40 18.00% 36,730.00 3,305.70 3,305.70
NR COMPONENTS

43,341.40 36,730.00 3,305.70 3,305.70

(Source information given by client)

File GSTR-1 3. Download and edit e-invoice data (if

applicable)
The Suppliers need to log in to the GSTN portal with
the given User ID and Password, following these steps: 4. Enter details for the current tax period in the
various tiles.
1. Log in and navigate to the GSTR-1 return. 5. Generate the GSTR-1 summary.
2. Select quarterly or monthly GSTR-1 filing. 6. Preview the GSTR-1.
7. Acknowledge and submit the GSTR-1 return.

(Source https://return.gst.gov.in/returns/auth/gstr1)
3173 Journal of Positive School Psychology

GSTR 3 B Late Fee & Penalty

What is GSTR 3B? A late fee is charged for filing GSTR-3B of a tax period
after the due date. It is levied as follows:
GSTR-3B is a self-declared summary GST return filed
every month (quarterly for QRMP scheme). It must be
✓ Rs. 50 per day of delay
filed by a registered taxpayer from July 2017 onwards.

✓ A separate GSTR-3B must be filed for every ✓ Rs. 20 per day of delay for taxpayers having nil
GSTIN tax liability for the month
✓ The GST liability must be paid on or before the
date of filing GSTR-3B, earlier of its due date In case the GST dues are not paid within the due date,
✓ The GSTR-3B once filed cannot be revised interest at 18% per annum is payable on the amount of
✓ Even in case of a zero liability, GSTR-3B must outstanding tax to be paid.
be compulsorily filed

PARTICULARS SALES SALES RETURN TOTAL

TOTAL TAXABLE 36,730.00 0 36,730.00
IGST 0 0 0
CGST 3,305.70 0 3,305.70
SGST 3,305.70 0 3,305.70
TOTAL 43,341.40 0 43,341.40

PARTICULARS PURCHASE PURCHASE RETURN TOTAL

TOTAL TAXABLE 18,105.00 0 18,105.00
IGST - 0 0
CGST 1,629.45 0 1,629.45
SGST 1,629.45 0 1,629.45
TOTAL 21,363.90 0 21,363.90
IGST PAYABLE 0 0 0
 Dr. Rajesh Gade 3174

CGST PAYABLE 1,676.25 0 1,676.25

SGST PAYABLE 1,676.25 0 1,676.25
TOTAL TAX PAYABLE 3,352.50
(Source information given by client)

(Source https://return.gst.gov.in/returns/auth/gstr3b)
3175 Journal of Positive School Psychology

(Source https://payment.gst.gov.in/payment/auth/challanhistory)

PARTICULAR SALE GST PURCHASE GST DIFFRENCE

CGST 3,305.70 1,629.45 1,676.25
SGST 3,305.70 1,629.45 1,676.25
TOTAL 6,611.40 3,258.90 3,352.50
 Dr. Rajesh Gade 3176

GST CALCULATION

DIFFRENCE

SALE GST

PURCHASE GST

Impact of GST on various sectors Cement

In the current scenario, cement sector is presenting 27
IT to 32 per cent of their share to the tax authority. After
Currently IT sector is paying 14 percent of tax to the the rolling out of GST, this will improve the sector
authority and subjected to 1820 percent after the growth in various terms, like transportation by 20-25
imposition of GST. Also, an important point to notice per cent and in the warehouse scheme as the
here, that the long-disputed issue of canned software rationalization would be easy in terms of state wise
taxation will also come to end as their will no difference fragmentation and also in the transportation cost as
arises between goods and services after the GST. reduced transit time.
Overall impact could be suggested here is neutral or
Pharmacy
slightly negative
Here, the impact could be neutral as the sector only
Telecom shares 6 per cent of his share to the tax authority. The
In the current stage, the Telecom sector is paying 14 sector also avails the incentives in tax benefits of
percent of tax to the government body, but the scenario location wise. There are various concessional benefits
takes the shift after the imposition of GST. The rate and exemptions held for this sector and will extend till
arises to 18 percent and the companies expect to pass the expiry of the period. The implications of GST would
the burden on the post-paid customers. There is also a also try to reduce the logistics cost and would also try to
lower input tax credit in this sector's capex cost. Overall, see in to the matter of inverted duty structure.
it seems that this regime will be negative to the industry
Banking and Financial Institutions
and the sector will also be in state where they can't pass
The sector is paying 14 percent right now, but not on the
the entire tax burden to the customers especially their
interest part of transaction. After the GST implied, the
prepaid segment
tax horizon can expand up to 18 to 20 percent on the
Automobiles fee-based transactions. Overall input expense of
Currently, automobile sector pays around 30 to 47 operations will likely to increase and also hike in the
percent tax to the Government which is now expected transactions of financial in nature such as loan
to range between 20-22 per cent, after the processing fees, debit/credit charges, insurance
implementation of GST. And the overall cost cutting premiums etc
can be expected for the end user by around 10 per cent.
FINDINGS
Transportation time should also be reduced as the check
points and octroi is cleared hands before. Overall GST GST SUMARRY REPORT
will bring a smile into the automobile sector
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Dr. Rajesh Gade 3178
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Result Analysis

How GST Work

Retailer to wholesaler
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1,00,000 1,00,000
Sales Tax (14%) 14,000 -
Duty (12.5%) 12,500 -
Excise Duty (1%) 1,000 -
GST (18%) - 18,000
Grand Total 1,27,500 1,18,000

Wholesaler to retailers

1,27,500 1,18,000

Add margin (10%) 12,750 11,800

other charges (rent, transport) 15,000 15,000
Sub Total 1,55,250 1,44,800
Sales Tax (14%) 21,735 -
GST (18%) - 26,064
Total Price 1,76,985 1,70,864

Price Of Car Change Due To GST

Particulars Pre- GST (Rs) Post- GST (Rs)

Cost of manufacturing 10,00,000 10,00,000

Excise duty at 30% 3,00,000 –

Production cost 13,00,000 10,00,000

Transportation, etc. 10,000 10,000

Sales charge 25,000 25,000

Base amount for tax calculation 13,35,000 10,35,000

VAT at 14%/ GST at 28% 1,86,900 2,89,800

Cess at 15% – 1,55,250

 Dr. Rajesh Gade 3182

Price 15,21,900 14,45,050

CONCLUSION /subsuming various indirect Taxes levied by Central and

State governments which were causing cascading
Our Tax system is a challenge able for different aspects
effect. The New-Age Tax system helps the Government
industrialization. Globalization, Industrial
to widen the Tax base, thereby results in maximizing the
Infrastructure and Goods & Service Tax. Tax system
revenues and resources for both central and state
has depended on the different creative activities of the
governments. This will pave the way for harmonization
pupil. It is National and International economy have
between the Prices of imported Products and domestic
related on the G.D.P.
products. GST Is a value added
Tax (VAT) on both goods and services as against the
Taxation was one of the most important sources of
earlier method of
revenue of the state. It was known as rajkar. The rate of
VAT only on goods. India follows consumption method
tax was determined in accordance with the dictates of
of GST (as against Gross income method, production
Vedic religion. Whatever the system of administration.
method and consumption method) and helps to
the policy of taxation was hardly changed according to
eliminate the Tax burden on goods and services at
the Mahabharata
multilevel through facilitating carry forward (C/F) of
ITC (Input Tax credit) at each Level Which helps the
The Goods & Services Tax is a milestone in India's
Taxation system with ease of administration. The
Indirect Tax system that addresses multiple issues
ultimate aim is to bringing back a lot of black money
together. It has brought a smoother structure to prevent
back into the economy (From internal and external
double taxation. The Goods & Services Tax is
sources). Because application of GST at each and every
destination-based tax charged at the point of
step of value creation will make difficult for black
consumption. Introduction of GST may have helped
money owners to participate anywhere in the Value
only some sectors to benefit from GST in the short term.
chain. At the initial days it was estimated an immediate
But the long-term advantages are many for all the
boost of 0.9% -1.4% of GDP after its implementation.
sectors.
Since the GST had been implemented all over the
country with the concentrated efforts of all stake holders
The Indian economy has been broadly classified into
in the economy, it will be the best Tax reforms in the
three main sectors viz.., Primary Sectors (agricultural
Indian Tax system because an effective Tax reforms not
activities), secondary sector (industrial activities) and
only improves nations Tax system (through widening
Tertiary sector (Service oriented Activities). In the
Tax base) but also helps to maintain equity of income
earlier days the former 2Sectors were growing rapidly
and wealth in the society. In the long run, it is believed
than the later but now, in modern economy service
that, GST will help to create a good data base for all
sector is rapidly growing than any other sectors of the
stake holders to take better decisions through its
economy. This proliferation resulted in rapid collection
accountability. Some Tax payers opines that, for better
of Taxes to the central government (As central
results the petroleum products (including crudes and
government is authorized to levy and collect service
motor spirits), high speed diesel, natural gas, aviation
Tax) but state government is losing its opportunities to
turbine fuel, liquors, real estate and electricity should be
collect Taxes on services. In such a situation there is a
included under GST (Goods and Service Tax), so that
need for effective Tax reforms to overcome such
"One Nation, One Market, One Tax" can be achieved.
discrepancy. With the tagline of "One Nation, one
Market, one Tax", the Government of India rolled out
GST On 1 July 2017. It is the biggest Tax reforms in References:
India and dubbed as good and simple Tax by our Prime 1.Adhana, D. K. (2015). Goods and services tax (GST):
Minister Shri Narendra Modi ji. A panacea for Indian economy. International Journal of
GST is a comprehensive, multi-stage, destination-based Engineering & Management Research, 5 (4), 332 - 338
Tax that is levied on every value addition. It provides
single and streamlined process by amalgamating
3183 Journal of Positive School Psychology

2.Chakraborty, P., & Rao, P. K. (2010, January 2). Scientific Research and Management (IJSRM), 2 (2),
Goods and services tax in India: An assessment of the 542 - 549
base. Economic and Political Weekly, 45 (1), 49 - 54
4.Goods and Services Tax Council. (2017). Retrieved
3.Garg, G. (2014). Basic concepts and features of goods from http://www.gstcouncil.gov.in/
and services tax in India. International Journal of