PROJECT REPORT

(Submitted for the Degree of B.Com.

Honours in Accounting & Finance under
the University of Calcutta)

TITLE OF THE PROJECT:

“GOODS & SERVICES

TAX”

SUBMITTED BY
Name of the Candidate : Mohit Kumar Singh

Registration Number: 223-1111-0513-18

Name of the College: Scottish Church College
CU exam Roll Number: 181223-21-0012

B. Com (HONOURS)
Department Of Commerce
University of Calcutta

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 Supervisor’s Certificate
This is to certify that Mr. Mohit Kumar Singh a student of B.Com.
Honours in Accounting & Finance of Scottish Church College , under
the University of Calcutta has worked under my supervision and
guidance for his Project Work and prepared a Project Report with the
title “GOODS & SERVICE TAX” which he is submitting is genuine
and original work to the best of my knowledge.

Place: Kolkata Signature:

Date: Name: Prof. Biswadeep Dutta
Designation: PROFESSOR
Name of the College: Scottish
Church College

SUPERVISED BY
Name of the Supervisor:
Prof. Biswadeep Dutta
Name of the College: Scottish Church College

MONTH & YEAR OF

SUBMISSION:
Date: July 2021

2
 Student’s Declaration
I hereby declare that the Project Work with the title “GOODS & SERVICE
TAX” submitted by me for the partial fulfillment of the degree of B.Com.
Honours in Accounting &Finance under the University of Calcutta is my
original work and has not been submitted earlier to any other University
/Institution for the fulfillment 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. However, extracts of any literature which has been used for this
report has been duly acknowledged providing details of such literature
in the references.

Place: Kolkata Signature:

Date:
Name: Biswadeep Dutta
Address:
Registration Number: 223-1111-0513-18
CU Roll No.: 181223-21-0012

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 Acknowledgement
I express my sincere gratitude towards my Supervisor, Prof.
Biswadeep Dutta, for his guidance and excellent insight which gave
direction & focus to his project. I thank him for leading his precious
time in making project an authentic piece of work. He also gave me
golden opportunity to do this project which also helped me doing a
lot of research% to gain much knowledge. His continuous support
for the dissertation, from initial advice & through ongoing advice,
helped me doing this dissertation paper.
I also take this opportunity to thank Prof. Amitabh Chatterjee
(Head of the Administrative at Scottish Church College) for his co-
operation & his valuable guidance for this dissertation paper.

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 Content
PAGE
S. NO. TITLE NO.

1. COVER PAGE 1

2. SUPERVISOR’S CERTIFICATE 2

3. STUDENT’S DECLARATION 3

4. ACNOWLEDGEMENT 4

5. CHAPTER 1: INTRODUCTION TOGST 6 - 11

6. CHAPTER 2: IMPACT OF GST ON VARIOUS SECTORS 12 - 16

7. CHAPTER 3: DATA FINDING & ANALYSIS OF GST 17 - 22

8. CHAPTER 4: CONCLUSION & 23- 24

RECOMMENDATION
9. CHAPTER 5: BIBLIOGRAPHY 25

10. CHAPTER 6:QUESTIONNAIRE 26- 27

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 Chapter 1
Introduction On GST
: INTRODUCTION TO THE GST:
The Goods and Services Tax (GST), implemented on July 1, 2017, is
regarded as a major taxation reform till date implemented in India
since independence. The primary objective behind development of
GST is to subsume all sorts of indirect taxes in India like Central
Excise Tax, VAT/Sales Tax, Service tax, etc. and implement one
taxation system in India.

: SALIENT FEATURES OF GST:

• GST is an indirect tax.
• For the words manufacture, sale, service, etc. the only ‘Supply’ is used.
• GST is levied on supply of goods or service or both.
• It is a consumption based tax.
• GST is levied both by Central Government and State Government/Union
territory
• Tax paid on inward supplies is available as input tax credit against
tax on outward supplies subject to fulfillment of certain conditions.
• GST law is applicable all over India

: OBJECTIVES OF GST
• To Develop national Market- One Nation, one Tax
• To reduce multiplicity of indirect taxes.
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• To Eliminate classification dispute between goods & services.
• To remove barriers in inter-State movement of goods
• To ease the administrative control.
• Uniformity of tax rates and automated compliances.
• Ensuring availability of input tax credit across the value chain
• Simplification of registration, filing of return, tax administration and
compliance.
• Harmonization of tax base, laws, and administration procedures across
the country.
• Minimizing tax rate slabs to avoid classification issues.
• Prevention of unhealthy competition among states.
• Free movement of Goods across the country without any additional tax.

: ADVANTAGES OF GST:

• GST eliminates the cascading effect of tax

• Higher threshold for registration
• Composition scheme for small businesses
• Simple and easy online procedure
• The number of compliances is lesser
• Defined treatment for E-commerce operators
• Improved efficiency of logistics
• Unorganized sector is regulated under GST

: DISADVANTAGES OF GST:
• Increased costs due to software purchase
• Being GST-compliant
• GST will mean an increase in operational costs

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 • GST came into effect in the middle of the financial year
• GST is an online taxation system
• SMEs will have a higher tax burden

: STRUCTURE OF GST

Dual model GST is applicable in India i.e. two varieties of GST will be
charged on same bill i.e. CGST (Central goods and service tax) and SGST
(State goods and service tax). On an Intra State Supply, both CGST and
SGST shall be applicable. Amount of CGST is revenue of the Central
Government and the amount of SGST is revenue of State Government.

: 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)

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 Types of
CGST SGST IGST UGST/UTGST
Differences

Inter-state
Applicable (between two
Intrastate Intrastate Within one
transactions states or one
(Within (Within Union
(Goods & state and one
one state) one state) Territory (UT)
Services) UT) and
imports

Central
Collected by State Govt. Central Govt. UT Govt.
Govt.

Benefitting Central Central Govt.

State Govt. UT Govt.
Authority Govt. & State Govt.

: CENTRAL TAXES SUBSUMED IN GST

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

: STATE TAXES SUBSUMED IN GST

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

: TAXES NOT SUBSUMED IN GST

• Custom duty
• Stamp duty
• Securities transaction Tax

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• Central Excise on Petroleum products, Tobacco
• VAT on Petroleum Products and Alcohol

: RATE OF GST
Rate of GST varies from product to product. There are 4 popular rates of GST i.e.
(a) 5% (2.5% CGST + 2.5% SGST)
(b) 12% (6% CGST + 6 % SGST)
(c) 18% (9 % CGST + 9 % SGST) and
(d) 28% (14 % CGST+14 % SGST)
Note:
(a) Special Rate of GST on jewellery : It is 3% in case of Gold, Silver, Platinum etc.
(b) In case of Rough diamond rate of GST is 0.25%

: GST COUNCIL
Goods & Services Tax (GST) Council is a constitutional body for
making recommendations to the Union and State Government on issues
related to Goods and Service Tax. The GST Council is chaired by the
Union Finance Minister and other members are the Union State Minister
of Revenue or Finance and Ministers in-charge of Finance or Taxation of
all the States.

10
: THE TAXABLE EVENT IN GST
The taxable event in GST is supply of goods or services or both. The
liability to pay tax arises at the ‘time of supply of goods or services’. Thus,
determining whether or not a transaction falls under the meaning of
supply, is important to decide GST’s applicability.

: SUPPLY
The scope of term supply is given under Section 7(1) of CGST Act which
provides the inclusive definition of term supply. As per the provision of
supply, supply includes:
(a) all forms of supply of goods or services or both such as sale, transfer,
barter, exchange, licence, rental, lease or disposal made or agreed to
be made for a consideration by a person in the course or furtherance
of business;
(b) import of services for a consideration whether or not in the course or
furtherance of business and;
(c) the activities specified in Schedule I, made or agreed to be made
without a consideration and;
(d) the activities to be treated as supply of goods or supply of
services as referred to in Schedule II.

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 Chapter 2
IMPACT OF GST ON VARIOUS
SECTORS
: INTRODUCTION
Goods and Services Tax (GST) was introduced in the Indian Constitution
through the 101st (Hundred and One) Constitutional Amendment Act,
2016. After the enforcement of Goods and Services Tax (GST), many
sectors faced some positive effects as well as negative effects.

The enforcement of the tax was for the long term benefit. There were very
few sectors that received an immediate benefit from the implementation
of Goods and Services Tax (GST). The long term benefit requires the
patience of citizens.

Some of the major sectors that have been affected by the implementation of
GST are –

• Export-Import sector

• Real estate

• Entertainment industry

• Hotel and tourism

• Logistics industry

• Banking sector

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 • Gold industry

• Textile/readymade garment sector

• It industry

• Fmcg industry

: EXPORT AND IMPORT SECTOR

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

: REAL ESTATE AND PROPERTY

We can see the positive impact of GST on property buyers. 12% GST
charges of property value are liable on all under construction properties,
excluding the registration charges and Stamp duty. Earlier provision is
applicable on the ready property. Input tax credits will increase profit
margins for developers or builders, which further transfers benefits to the
Homebuyers.

: 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
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entertainment service or product. The states where The entertainment
service tax was higher than 28%, GST will decrease the overall cost of
entertainment.

: 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% (GSľ fíee)

• 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.

: LOGISTICS INDUSTRY
The logistics industry is the backbone of Indian economy and it is estimated
to be worth about
$200 up to 2021. After the GST, the time taking clearance process has
become easy i.e less transit time. Corruption activities are reduced in
logistic services. GST reduces the overall cost of logistics services and
increases business revenue.

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 : BANKING SECTOR
18% GST rates levied on banking services like insurance policies, ATM transactions
etc. The earlier tax rate was 15%. Banking and financial services become costly.

GST has reduced indirect taxes, i.e. Ease of doing business in the banking and
financial sector Which leads to increase in business. It will increase demand for
funds and digital transactions in the banking industry.

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

: TEXTILE/READYMADE GARMENT SECTOR

Textile industry will be benefitted through GST implementation in India.
Ready-made garments up to Rs. 1000 is exempted from GST and branded
garments above Rs. 1000 will be taxed at 12%.

: IT INDUSTRY
All IT services and software products, as well as freelancers, are levied
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18% GST rate. Overall positive impact on IT industry of GST. Cascading
effect is removed through GST implementation. IT will make changes in
the process of business process. ITC under GST will Bring down the
operating costs and increase the profitability of the IT industry.

2.11. FMCG INDUSTRY

FMCG sector is one of the biggest economic platforms in India. After the
GST implementation, Mostly FMCG products and services are taxed
under 18 to 20 percent. Lower GST rates, give Benefits to the business
holder, manufacturers and consumers directly.

16
 Chapter: 3
Data Finding and Analysis of GST

FIGURE 3.1: IMPACT OF GST ON RETAIL INDUSTRY

After the implementation of the GST, we can see both its positive and

negative effects on different industries. Many sectors like

manufacturing, electronics, telecom, FMCG, education, banking,
jewellery, tourism, logistics, IT etc. are the important part of the Indian
economy. The positive impact of the GST on such sectors is seen in the
form of economic development of the country.

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FIGURE 3.2: IMPACT OF GST ON RETAIL INDUSTRY

Sources: https://holisollogistics.com

Below five factors will significantly change the dynamics of the retail
sector in India:
a. Reduced taxes – he main impact of GST on retailers will be a
significant reduction of the tax burden on the retailers.

b. Seamless Input tax credit – GST will make an impact by

eliminating the cascading effect of taxes thereby reducing the total tax
burden on the retail sector.

c. Increased Supply chain efficiency – The impact of GST will be

evident on supply chains, as their designs would be efficiency-oriented
and not in alignment with the taxation system.

d. Tax on gifts and promotional items – As per the model GST law,
any supply without any consideration will attract tax.
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 e. Better Opportunities & Growth of Retail Market – Upon
implementation of GST, analysts predict unification of markets.

FIGURE 3.3: IMPACT OF GST ON COMMON PEOPLE’S SPENDING:

Finally, India's biggest tax reform - Goods and service Tax (GST)
is a reality. Yes, after a lot of speculation around the timely
implementation, GST has been rolled out.

As we have saying, GST is a much-needed economic reform. It

should eventually expand India's narrow tax base and increase
government revenues.

That said, every coin has two sides. GST is no exception. It will
have its fair share of chaos in the coming months. There could be
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protests across the country over tax rates and compliance burdens
and it could affect the smooth functioning of the economy.

While GST will impact businesses and industries in a big way, it

won't directly affect the salaried class and self-employed
personnel (Aam Aadmi). Since it is an indirect tax, it does not
change the way they pay their personal taxes. The only impact
they will see would be due to the change in rates of the goods and
services they avail.

FIGURE 3.4: COMPONENT ANALYSIS OF GST GROSS

COLLECTION IN INDIA
Sources:https://startuptalky.com

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

FIGURE 3.5: TREND OF GST COLLECTION IN

INDIA

Sources:https://taxguru.in

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Analysis –
The total gross GST revenue collected in the month of July, 2019 is ₹
1,02,083 crore of which CGST is ₹17,912 crore, SGST is ₹ 25,008 crore,
IGST is ₹ 50,612 crore (including ₹ 24,246 crore collected on imports)
and Cess is ₹ 8,551 crore (including ₹797 crore collected on imports). The
total number of GSTR 3B Returns filed for the month of June up to
31st July, 2019 is 75.79 lakh.

The revenue in July, 2018 was ₹ 96,483 crore and the revenue during
July, 2019 is a growth of 5.80% over the revenue in the same month last
year. During April-July 2019 vis-à-vis 2018, the domestic component has
grown by 9.2% while the GST on imports has come down by 0.2%
and the total collection has grown by 6.83%. Rs. 17,789 crore has been
released to the states as GST compensation for the months of April-May,
2019.

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 Chapter: 4
Conclusion and
Recommendation
CONCLUSION:
Primarily, the concept of GST was introduced and proposed in India a few
years back, but implementation has been done by the current BJP
government under the able leadership of Prime Minister Shri Narendra
Modi on July 1, 2017.

The new government was in strong favor for the implementation of GST
in India by seeing many positive implications as discussed above in the
paper. All sectors in India - manufacturing, service, telecom, automobile
and small SMEs will bear the impact of GST.

One of the biggest taxation reform- GST will bind the entire nation under
a single taxation system rate.

As forecasted by experts, GST will improvise tax collections and boost

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

No doubt, GST will give India a clear and transparent taxation system, but
it is also surrounded by various challenges. There is need for more
analytical based research for successful implementation.
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 RECOMMENDATIONS
Goods and Service Tax was considered to be an epitome of the ideal tax
mechanism at the time of its implementation. The assumption is
somewhere proved right as the GST system has reduced effective tax
rates and boosted supply chain efficiencies of businesses. On the other
hand, it is also prevalent that the system is not at all simple and has
burdened the taxpayer even more with tax-filing complexities.

Now it is invariably needed to introduce a set of amendments contributing

towards the certainty of the GST system.

Steps to Make GST More Compliant:

• Reduction in Number of Tax Slabs Rates

• Effortless Input Tax Credit Claims

• Spreading the GST Net

• Renovating ITC System

• Practical Targets for GST Collection

• Including Some Exempted Goods In GST Regime:

• Let E-waybill Go Away

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 Chapter: 5
BIBLIOGRAPHY
BIBLIOGRAPHY
• Central Board of Excise and Customs, Ministry of Finance.
(2017).
• Goods and Services Tax Council. (2017).
• https://wordpress.com
• https://holisollogistics.com
• https://startuptalky.com
• https://taxguru.in
• Wikipedia, the free content encyclopedia

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 Chapter: 6
QUESTIONNAIRE
Dear Sir/ Madam,
Thank you for visiting us. By filling out this 5-10 minute survey, you
will help us obtain the very best results.
1. Gender:
• Male
• Female

2. Age group:
• < 20
• 21-30
• 31-40
• 41-50
• 51-60
• 60+

3. Which of the following describes you best?

• Student
• Employed
• Self employed
• Retired
• Not Employed

4. Please indicate your residential location

India
Other country:

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 5. Do you feel that the introduction of GST in India has affected the
demand for the product/services?
☐ Positively
☐ Negatively
☐ No impact

6. Do you think transition to GST Regime was ?

☐ Smoother
☐ Difficult
☐ Very difficult

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

bill mechanism?
☐ Yes
☐ No
☐ Not applicable

8. Are you facing issues in claiming refund under the GST regime?
☐ Yes
☐ No
☐ Not applicable

9. How can the GSTN portal be made user friendly? Please

statesome suggestions below:

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