PROJECT REPORT

(Submi ed for the Degree of B. Com Honours

In Accoun ng & Finance under the University
Of Calcu a)
TITLEOFTHEPROJECT:
“GOODS & SERVICES TAX”
SUBMITTED BY
Name of the Candidate: Afsar Ahmad Khan
Registra on Number: 144-1111-1685-20
Name of the College: Bangabasi Morning College
College Roll Number: BH0466
CU exam Roll Number: 201144-21-0625
SUPERVISED BY
Name of the Supervisor: Dipika Das
MONTH & YEAR OF SUBMISSION:
Date: April,2023

1
 SUPERVISOR'S CERTIFICATE

This is to cer fy that Afsar Ahmad Khan, a student of B.Com

Honours in Accoun ng & Finance of BANGABASI MORNING
COLLEGE under the University of Calcu a has worked under my
supervision and guidance for his Project Work and prepared a
Project Report with the tle – “GOODS & SERVICE TAX”, which he
is submi ng, is the genuine and original work to the best of my
knowledge.

Signature
Name: Dipika Das
College: Banagabasi Morning College
Place: KOLKATA
Date:

2
 STUDENT’S DECLARATION

I hereby declare that the Project Work with the tle

“GOODS&SERVICETAX” submi ed by me for the par al fulfilment of
the degree of B. Com Honours in Accoun ng & Finance under the
University of Calcu a is my original work and has not been submi ed
earlier to any other University for the fulfilment of the requirement for
any course of study.

I also declare that no chapter of this manuscript in whole or in part has

been incorporated in this report from any earlier work done by others
or by me.

Signature
Name: Afsar Ahmad Khan
Registra on No.: 144-1111-1685-20
College Roll No.: BH0466
Place: KOLKATA
Date:

3
 AKNOWLEDGEMENT

First, thanks to God, for giving me and my friends the strength

and will to complete this task just in me. Even though we faced
a lot of difficul es while trying to complete this task, the groups
ll managed to complete it and we are glad about it. A special
thanks to Ms Dipika Das, for being such a good guidance to us
while we were doing this task. She had given us an appropriate
example and knowledge to make us understand more about this
topic. She spends her me to explain the execu on of this idea in
all the way. We also want to thank other groups who were willing
to share their informa on about this topic. They gave us a lot of
new ideas about the task.
Also, a great thanks to my family and friends who tried their best
to give their support either by giving me a lot of encouragement
to keep up with this task or by suppor ng us financially and pay
all the cost required to complete this task.

4
 CONTENTS

S.NO. TITLE PAGENO.

1. COVERPAGE 1
2. SUPERVISOR’SCERTIFICATE 2
3. STUDENT’SDECLARATION 3
4. ACNOWLEDGEMENT 4
5. CHAPTER1: INTRODUCTION TO GST 6-11
6. CHAPTER2: IMPACT OF GST ON VARIOUS SECTORS 12-16
7. CHAPTER3: DATA FINDING & ANALYSIS OF GST 17-22
8. CHAPTER4: CONCLUSION & RECOMMENDATION 23-25
9. CHAPTER5: BIBLIOGRAPHY 26-27
10. CHAPTER6: QUESTIONNAIRE 28-31

5
 CHAPTER 1:

INTRODUCTION TO GST

6
 1.1: INTRODUCTION TO THE GST:
The ds and GooServices Tax (GST), implemented on July1, 2017,
is regarded as a major Taxa on reform ll date implemented in
India since independence. The primary objec ve behind
development of GST is to subsume all sorts of indirect taxes in
India like Central Excise Tax, VAT/SalesTax, Service tax, etc. and
implement one taxa on system in India.

1.2: SALIENT FEATURES OF GST:

 GST is an indirect tax.
 For the words manufacture, sale, service, etc. The only
‘Supply’ is used.
 GST is levied on supply of goods or service or both.
 It is a consump on-based tax.
 GST is levied both by Central Government and State
Government/Union territory.
 Tax paid on inward supplies is available as input tax credit
against tax on outward.
 Supplies subject to fulfilment of certain condi ons.
 GST law is applicable all over India.
1.3: OBJECTIVES OF GST:
 To Develop na onal Market- One Na on, one Tax.
 To reduce mul plicity of indirect taxes.
 To Eliminate classifica on dispute between goods &
services.
 To remove barriers in inter-State movement of goods.
 To ease the administra ve control.
 Uniformity of tax rates and automated compliances.
1.4: ADVANTAGES OF GST:
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  GST eliminates the cascading effect of tax.
 Higher threshold for registra on.
 Composi on scheme for small businesses.
 Simple and easy online procedure.
 The number of compliances is lesser.
 Defined treatment for E-commerce operators.
1.5: DISADVANTAGES OF GST:
 Increased costs due to so ware purchase.
 Being GST- compliant.
 GST will mean an increase in opera onal costs.
 GST came into effect in the middle of the financial year.
 GST is an online taxa on system.
 SMEs will have a higher tax burden.
1.6: STRUCTURE OF GST:
Dual model GST is applicable in India i.e. two varie es of GST will
be charged on same bill i.e. CGST(Central goods and service tax)
and SGST(State goods and service tax). On an Intra State Supply,

both CGST and SGST shall be applicable. Amount of CGST is

revenue of the Central Government and the amount of SGST is
revenue of State Government.

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 1.7: TYPES OF GST:

 Central Goods and Services Tax (CGST).

 State Goods and Services Tax (SGST).
 Integrated Goods and Services Tax (IGST).
 Union Territory Goods and Services Tax (UTGST).

1.8: CENTRAL TAXES SUBSUMED IN GST:

 Central Excise Tax.

 Service Tax.
 Addi onal Custom duty, commonly known as
Countervailing Tax (CVD).

1.9: STATE TAXES SUBSUMED IN GST:

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

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 1.10: TAXES NOT SUBSUMED IN GST:
 Custom duty, Stamp duty, Securi es transac on tax,
 Central Excise on Petroleum products, Tobacco
 VAT on Petroleum Products and Alcohol.

1.11: RATE OF GST:

Rate of GST varies from product to product. There are 4 popular

rates of GST i.e,
(a) 5% (2.5%CGST+2.5%SGST)
(b) 12% (6%CGST+6%SGST)
(c) 18% (9%CGST+9%SGST) and
(d) 28% (14%CGST+14%SGST)
Note:
(a) Special Rate of GST on Jewellery: It is 3% in case of Gold,
Silver, Pla num etc.
(b) In case of rough diamond rate of GST is 0.25%
1.12: GST COUNCIL:

Goods & Services Tax (GST) Council is a cons tu onal body for
making recommenda ons to the Union and State Government
on issues related to Goods and Service Tax. The GST Council is
chaired by the Union Finance Minister and other members are
the Union State Minister of Revenue or Finance and Ministers
in-charge of Finance or Taxa on of all the States.

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 1.13: THE TAXABLE EVENT IN GST:

The taxable event in GST is supply of goods or services or both.

The liability to pay tax arises at the ‘ me of supply of goods or
services.’ Thus, determining whether a transac on fall under
the meaning of supply, is important to decide GST’s
applicability.

1.14: SUPPLY:

The scope of term supply is given under Sec on 7(1) of CGST Act
which provides the inclusive defini on of term supply. As per
the provision of supply, supply includes:
(a) all forms of supply of goods or services or both such as sale,
transfer, barter, exchange, licence, rental, lease or disposal
made or agreed to be made for a considera on by a person in
the course or furtherance of business.
(b) import of services for a considera on whether in the course
or furtherance of business and.
(c) the ac vi es specified in Schedule 1, made, or agreed to be
made without a considera on and.
(d) the ac vi es to be treated as supply of goods or supply of
services as referred to in Schedule 11.

11
 CHAPTER 2:

IMPACT OF GST ON
VARIOUS SECTORS

12
 2.1: INTRODUCTION:

Goods and Services Tax (GST) was introduced in the Indian

Cons tu on through the 101st (Hundred and One)
Cons tu onal Amendment Act, 2016. A er the enforcement of
Goods and
Services Tax (GST), many sectors faced some posi ve effects as
well as nega ve effects. The enforcement of the tax was for the
long term benefit. There were very few sectors that received an
immediate benefit from the implementa on of Goods and
Services Tax (GST). The long term benefit requires the pa ence
of ci zens.

Some of the major sectors that have been affected by the

implementa on of GST are–

 Export-Import sector
 Real estate
 Entertainment industry
 Hotel and tourism
 Logis cs industry
 Banking sector
 Gold industry
 Tex le/readymade garment sector
 IT industry
 Fmcg industry

2.2: EXPORT AND IMPORT SECTORS:

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Before the enforcement of the Goods and Services Tax (GST),
Export and Import were governed by the Service Tax, Value
Added Tax, Excise Duty and Customs Duty. These were imposed
on the Import and Export goods and services. When Goods and
Services Tax (GST) was introduced all these taxes were merged
into one. But the Basic Customs Duty (BCD) con nues to work
on the import bills.

2.3: REAL ESTATE AND PROPERTY:

We can see the posi ve impact of GST on property buyers. 12%

GST charges of property value are liable on all under
construc on proper es, excluding the registra on charges and
Stamp duty. Earlier provision is applicable on the ready
property. Input tax credits will increase profit margins for
developers or builders, which further transfers benefits to the
home buyers.

2.4: ENTERTAINMENT INDUSTRY:

The GST rate for entertainment services varies from 18% to

28%. These tax rates are different in different states which
depend on the type of entertainment service or product. The
states where the entertainment service tax was higher than
28%, GST will decrease the overall cost of entertainment.

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 2.5: HOTEL AND TOURISM:

Tourism and hotel industry play an import part to grow India’s

GDP.
GST rates for hotels are different according to their tariffs:
 Less than Rs.1000 = 0% (GST free)
 Rs.1000 to 2500 = 12%
 Rs.2500 to 7500 = 18%
 Above Rs.7500 = 28%
It is expected that the cost of tour packages may come down
due to the relief to tour operators under GST regime. 5% tax is
liable on tour operators currently.

2.6: LOGISTICTS INDUSTRY:

The logis cs industry is the backbone of Indian economy, and it

is es mated to be worth about $200 up to 2021. A er the GST,
the me taking clearance process has become easy i.e. less
transit me. Corrup on ac vi es are reduced in logis c
services. GST reduces the overall cost of logis cs services and
increases business revenue.

2.7: BANKING SECTOR:

18% GST rates levied on banking services like insurance policies,
ATM transac ons etc. The earlier tax rate was 15%. Banking and
financial services become costly. GST has reduced indirect taxes,
i.e., Ease of doing business in the banking and financial sector
which leads to increase in business. It will increase demand for
funds and digital transac ons in the banking industry.

2.8: GOLD INDUSTRY:

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18% GST rates levied on banking services like insurance policies,
ATM transac ons etc. The gold industry is the biggest market in
the world. GST on the gold industry hits to consumers.
3% GST rate that is applicable to 10% import duty and 5%,
making charges which lead to rising the jewellery prices in India.
The demand for Gold may fall 50 to 70 percent. But there is
more transparency in the gold industry due to the GST
implementa on. It will turn in a posi ve impact on a long term.

2.9: TEXTILE/READYMADE GARMENT SECTOR:

Tex le industry will be benefi ed through GST implementa on
in India. Ready-made garments up to Rs.1000 is exempted from
GST and branded garments above Rs.1000 will be taxed at 12%

2.10: IT INDUSTRY:
All IT services and so ware products, as well as freelancers, are
levied 18% GST rate. Overall posi ve impact on IT industry of
GST. Cascading effect is removed through GST implementa on.
IT will make changes in the process of business process. ITC
under GST will bring down the opera ng costs and increase the
profitability of the IT industry.

2.11: FMCG INDUSTRY:

FMCG sector is one of the biggest economic pla orms in India.
A er the GST implementa on, Mostly FMCG products and
services are taxed under 18 to 20 percent. Lower GST rates, give
benefits to the business holder, manufacturers, and consumers
directly.

16
 CHAPTER 3:

DATA FINDING &

ANALYSIS OF GST

17
 Fig.3.1: IMPACT OF GST ON RETAIL INDUSTRY:

Sources: wordpress.com

A er the implementa on of the GST, we can see both its posi ve

and nega ve effects on different industries. Many sectors like
manufacturing, electronics, telecom, FMCG, educa on, banking,
jewellery, tourism, logis cs, IT etc. are the important part of the
Indian economy. The posi ve impact of the GST on such sectors
is seen in the form of economic development of the country.

18
 Fig.3.2: IMPACT OF GST ON RETAIL INDUSTRY:

Sources: h ps://holisollogis cs.com

Below five factors will significantly change the dynamics of the
retail sector in India:
a. Reduced taxes-The main impact of GST on retailers will be a
significant reduc on of the tax burden on the retailers.
b. Seamless Input tax credit- GST will make an impact by
elimina ng the cascading effect of taxes there by reducing the
total tax burden on the retail sector.
c. Increased Supply chain efficiency- The impact of GST will be
evident on supply chains, as their designs would be efficiency-
oriented and not in alignment with the taxa on system.
d. Tax on gi s and promo onal items– As per the model GST
law, any supply without any considera on will a ract tax.
e. Be er Opportuni es & Growth of Retail Market– Upon
implementa on of GST, analysts predict unifica on of markets.
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 Fig.3.3: IMPACT OF GST ON COMMON PEOPLE’s
SPENDING:

www.equitymaster.com Sources: cleartax.in

Finally, India's biggest tax reform- Goods and service Tax (GST) is
a reality. Yes, a er a lot of specula on around the mely
implementa on, GST has been rolled out. As we have saying,
GST is a much- needed economic reform. It should eventually
expand India's narrow tax base and increase government
revenues. That said, every coin has two sides. GST is no
excep on. It will have its fair share of chaos in the coming
months. There could be protests across the country over tax
rates and compliance burdens and it could affect the smooth
func oning of the economy. While GST will impact businesses
and industries in a big way, it won't directly affect the salaried
class and self-employed personnel (Aam Aadmi). Since it is an
indirect tax, it does not change the way they pay their personal
taxes. The only impact they will see would be due to the change
in rates of the goods and services they avail.
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 Fig.3.4: COMPONENT ANALYSIS OF GST GROSS
COLLECTION IN NDIA:

Sources: h ps://startuptalky.com

Analysis–
 Average monthly gross collec on since the GST introduced
up- ll month of June 2019 is INR 96,048 crores, with
improving average over the year.
 From August 2017 to March 2018, average monthly gross
collec on was INR 89,705 crores.
 During 2018-19 average monthly gross collec on was
recorded at 98,114 crores, which was 9.37% higher than
2017-18 (From August 2017).
 For ongoing fiscal year 2019-20, ll month of June average
monthly gross collec on is 1,04,698 crores, which is 6.71%
higher than monthly average of 2018-19 and 16.71% higher
than 2017-18 (From August 2017).

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 Fig.3.5: TREND OF GST COLLECTION IN NDIA:

Sources: h ps://taxguru.in
Analysis–
The total gross GST revenue collected in the month of July, 2019
is ₹1,02,083 crore of which CGST is ₹17,912 crore, SGST is
₹25,008 crore, IGST is ₹ 50,612 crore (including ₹24,246 crore
collected on imports) and Cess is ₹8,551 crore (including ₹797
crore collected on imports). The total number of GSTR 3B
Returns filed for the month of June up to 31st July,2019 is 75.79
lakh. The revenue in July,2018 was ₹96,483 crore and the
revenue during July,2019 is a growth of 5.80% over the revenue
in the same month last year. During April-July 2019 vis-à-vis
2018, the domes c component has grown by 9.2% while the
GST on imports has come down by 0.2% and the total collec on
has grown by 6.83%. Rs.17,789 crore has been released to the
States as GST compensa on for the months of April-May,2019.

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 CHAPTER 4:

CONCLUSION &
RECOMMENDATION

23
 CONCLUSION
Primarily, the concept of GST was introduced and proposed in
India a few years back, but implementa on has been done by
the current BJP government under the able leadership of Prime
Minister Shri Narendra Modi on July1,2017.

The new government was in strong favour for the

implementa on of GST in India by seeing many posi ve
implica ons as discussed above in the paper. All sectors in India-
manufacturing, service, telecom, automobile, and small SMEs
will bear the impact of GST.

One of the biggest taxa on reform- GST will bind the en re

na on under a single taxa on system rate.

As forecasted by experts, GST will improvise tax collec ons and

boost up India's economic development and break all tax
barriers between Central and State Governments.

No doubt, GST will give India a clear and transparent taxa on

system, but it is also surrounded by various challenges. There is
need for more analy cal based research for successful
implementa on.

24
 RECOMMENDATIONS
Goods and Service Tax was an epitome of the ideal tax
mechanism at the me of its implementa on. The assump on is
somewhere proved right as the GST system has reduced
effec ve tax rates and boosted supply chain efficiencies of
businesses. On the other hand, it is also prevalent that the
system is not at all simple and has burdened the taxpayer even
more with tax-filing complexi es.

Now it is invariably needed to introduce a set of amendments

contribu ng towards the certainty of the GST system.

Steps to Make GST More Compliant:

 Reduc on in Number of Tax Slabs Rates

 Effortless Input Tax Credit Claims
 Spreading the GST Net
 Renova ng ITC System
 Prac cal Targets for GST Collec on
 Including Some Exempted Goods in GST Regime:
 Let E-way bill Go Away

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 CHAPTER 5:

BIBLIOGRAPHY

26
 BIBLIOGRAPHY

 Central Board of Excise and Customs, Ministry of Finance

(2017).
 Goods and Services Tax Council (2017).
 h ps://wordpress.com
 h ps://holisollogis cs.com
 h ps://startuptalky.com
 h ps://taxguru.in
 Wikipedia, the free content encyclopaedia.

27
 CHAPTER 6:

QUESTIONNAIRE

28
 QUESTIONNAIRE
Dear Sir/Madam,

Thank you for visi ng us. By filling out this 5-10 minutes survey,
you will help us obtain the very best results.

1.Gender
 Male
 Female

2.Age Group
 <20
 21-30
 31-40
 41-50
 51-60
 60+

3.Which of the following describes you best?

 Student
 Employed
 Self employed
 Re red
 Not Employed

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4.Please indicate your residen al loca on
 India
 Other country: ______________

5.Do you feel that the introduc on of GST in India has affected
the demand for the product/services?
☐ Posi vely
☐ Nega vely
☐ No impact

6.Do you think transi on to GST Regime was-

☐ Smoother
☐ Difficult
☐ Very difficult

7.Are you facing any significant issues in compliance with e-way

bill mechanism?
☐ Yes
☐ No
☐ Not Applicable

8.Are you facing issues in claiming refund under the GST

Regime?
☐ Yes
☐ No
☐ Not Applicable
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9.How can the GSTN portal be made user friendly? Please state
some sugges ons below-

____________________________________________________
____________________________________________________
____________________________________________________
____________

THANK YOU

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