Project Report

Submitted for the Degree of B.com Honours in Accounting & Finance under the
University of Calcutta.

 Title of the Project:- Study on Goods and Services Tax (GST)

➢ Submitted by:-
• Name of the Candidate:- Suvajit kumar das
• Registration No:- 141-1122-0616-16
• Roll No.:-1141-61-0357
• Name of the College:- Acharya Girish Chandra Bose College

➢ Supervised by:-
• Name of the Supervisor:- Prof. Basudeb Sadhukhan.

➢ Month & Year of Submission:- 2018-2019

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Supervisor’s Certificate
This is to certify that Mr. Suvajit Kumar Das a student of B.com. Honours in
Accounting & Finance of Acharya Girish Chandra Bose 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 study on Goods and
Services Tax (GST) which he is submitting, is his genuine and original work to the
best of my knowledge.

Signature:-
Name:-Prof. Basudeb Sadhukhan
Designation:- Associate Professor
Name of College: - Acharya Girish Chandra Bose college
Place:-
Dated:-

Student’s Declaration:-
I hereby declare that the project work with the title study on Goods and Services
Tax (GST) submitted by me for the partial fulfillment of the degree of B.com.
Honours in Accounting & Finance under the University of Calcutta is my origin 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 acknowledge providing details of such literature in the references.
Signature:-
Name: - Suvajit Kumar Das
Registration No: - 141-1122-0616-16
Roll No: - 1141-61-0357
Place:-
Date:-

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 ACKNOWLEDGEMENT

I express my thanks towards my professors and faculty members of “Acharya

Girish Chandra College”, Department of Commerce. A Debt gratitude towards my
guide, prof. Basudeb sadhukhan, for patiently hearing me out and for giving
valuable inputs on my research project.

I would like to make special thanks to my teachers, without whose

blessings, this project would not be possible.

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 PREFACE

Goods and Services tax (GST) which is a comprehensive tax on supply of goods or
services or both, has been implemented from 1st July, 2017. Further from 8th July,
2017 the applicability of GST has been extended to the State of Jammu & Kashmir
also. The implementation of GST besides being the biggest tax reform in the
Indian history is also regarded as a business reform as businesses need to
restratigise their functioning/transactions in order to keep their tax cost at
minimum within the framework of GST Law. GST is all set to integrate State
economies and boost overall growth. GST will create a single, unified Indian
market to make the economy stronger and is based upon the principle of “One
Nation, One Tax, One Market”.
Our Hon’ble Prime Minister Narendra Modi defined GST as Goods and Simple Tax
at the midnight rollout of the India’s biggest tax reform. President Pranab
Mukherjee said that the unified tax system was “the culmination of 14 year long
journey”.
The implementation of GST in the initial days would pose certain challenges
specifically in the area of supply of services. Accordingly in order to facilitate the
seamless transition from the service tax law to GST regime by the service
providers, the provisions of the GST law specifically relevant for supply of services
alongwith its comparison with the erstwhile service tax law has been discussed in
this Book.

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 CONTENTS

CHAPTER TOPIC PAGE

1. Introduction. 1.1 Background 6-7
1.2 Rationale 7
1.3 Review of literature 8
1.4 Objectives of the 9
GST
1.5 Reserch 9
Methodology
2.Conceptual 2.1 Concept of GST 10-15
Framework 2.2 National & 15-21
international Scenario
of GST
3.Presentations, 3.1 Data Presentation 22-24
Analysis, Finding, & 3.2 data Analysis 24-30
Recommendations 3.3Finding & 30-36
Recommendations
4.Conclusions 4.1 Conclusion 37
Bibliography 37

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Chapter (1):- INTRODUCTION

1(1) Background:-
The Goods and Services Tax (GST) is a comprehensive value added tax on Goods
& Services. It is a vast concept. GST will be help to enhancing & supporting the
economic growth of a country.

In India, the idea of adopting GST was first suggested by the “Atal Bihari
Vajpaye” Government in 2000. To the “Norendra Modi’s” Government in 2014,
India’s new Finance Minister Arun Jaitley was submit 122 nd Constitution
Amendment Bill in the 16th Lok Sabha on 19 th December 2014. The opposition
demanded that the bill be sent for discussion to the standing committee. Then
Government of India has appointed various committess, task force to give their
views to introduce a vibrant and modern Indirect Tax structure in India.

Finally in August 2016, The Constitution Amendment bill was passed in the
parliament & 18 states ratified The Constitution Amendment Bill & The President
“Pranab Mukherjee” gave his assent to it.

GST council has also recommended four – tier GST rate structure & thresholds.

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GST council approved the Central Goods & Services Tax Bill 2017 (The CGST Bill),
The Integrated Goods & Services Tax Bill 2017 (The IGST Bill), The Union
Territory Goods & Services Tax Bill 2017 (The UTGST Bill), The Goods & Services
Tax (Compensation to the states) Bill 2017 The Compensation Bill, these Bills
were passed by the Lok sabha on 29 march 2017. The Rajya sabha passed these
Bills on 6th April 2017.

The GST was implemented at midnight on 1 st July 2017 by president of the India,
“Pranab Mukherjee” & the government of India. The Jammu & Kashmir state
legislature passed its GST act on 7 July 2017.

1(2)The rationales behind moving from current tax

structure to GST is explained below:-

 The indirect tax Regime where taxes under various headings are levied on
goods and services would be replaced with one common tax module. this
will encourage national market due to uniformity in tax structure across
the states.
 Taxes levied at multiple levels mean extra burden on consumers and
businesses due to cascading effect. Implementation of GST would mean
relief from excess taxing at different levels.
 Earlier taxes for goods and services were separate, but clearly
distinguishing between goods and services have become difficult with lot of
innovation and technological advancement. GST will remove this problem
too.

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1(3) Review of Literature:-
Halakhandi, (2007)
GST was supposed to be introduced in India way back in 2010. It has been
getting postponed due to various reasons major one being getting to a consensus
between the various states and the centre for compensation. The author in the
paper has discussed the existing laws in India for indirect taxes, the VAT laws in
various states with their advantages and disadvantages, the impact of the
proposed GST, the compliances under the proposed GST etc. The author has also
used various numerical examples to demonstrate how GST is cost effective.

Eva, (2008)
The author in his paper has examined the cost of complying with the indirect tax
laws in the Slovak Republic by doing research of small, medium and large
businesses through a questionnaire and concludes that businesses especially the
small ones are not able to and do not make efforts to quantify the cost of
compliance which is quite high due to the complex laws.

Eugen, (2011)
The authors have examined the various methods adopted by assessees to evade
VAT especially in intra country transactions in Romania. The authors have also
recommended the documentation and returns which could be relied upon by both
the authorities and the assessees to ensure that there is no tax evasion.

Mansor, (2013)
GST has always been considered as a tool in the hands of any Government to
increase revenue. The Malaysian Government introduced the said tax in Malaysia
in order to reduce its budget deficit. The authors in the paper have discussed the
readiness of the Malaysian economy in adopting the said newly introduced GST
along with the reactions of various sections of the society.

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1(4) Objective of the GST:-
➢ One Country – One Tax.
➢ Consumption based tax instead of Manufacturing.
➢ Uniform GST Registration, payment and Input tax Credit
➢ To eliminate the cascading effect of Indirect taxes on single transaction
➢ Subsume all indirect taxes at Centre and State Level under
➢ Reduce tax evasion and corruption
➢ Increase productivity
➢ Increase Tax to GDP Ratio and revenue surplus
➢ Increase Compliance
➢ Reducing economic distortions

1(5) Reserch Methodology:-

The study is based on secondary data collected from various referred books,
National and international journals, government reports, applications from
various websites which focused on various aspects of goods and service tax.

The Researchers used an exploratory research technique based on past

literature from respective journals, annual reports, newspapers and
magazines covering wide collection.

❖ Some list of countries by GDP (World Bank 2017)

COUNTRY GDP (WORLD BANK 2017)
INDIA 2,597,491
UNITED STATES 19,390,604
JAPAN 4,872,137
CHINA 12,237,700
GERMANY 3,677,439
UNITED KINGDOM 2,622,434
RUSSIA 1,530,751
FRANCE 2,582,501

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Chapter (2):- Conceptual Framework

2(1) Concept of GST:-

The Act came into effect on 1st July 2017; Goods & Services Tax Law in India is a
comprehensive, multi-stage, destination-based tax that is levied on every value
addition. In simple words, Goods and Service Tax (GST) is an indirect tax levied
on the supply of goods and services.

 Who shall pay? ➢ Taxable person- sch III

 On what GST shall be paid? ➢ Supply of Goods and services

Section 7
 When GST shall be paid? ➢ Point of Supply

 Where shall GST be paid? ➢ Place of supply

 To whom shall would be paid? ➢ Respective Government

 How to pay? ➢ Cash / Credit

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Types of GST:-
There are three kinds of taxes under the GST.

SGST, CGST & IGST

1. SGST:-
SGST means State Goods and Service Tax. It is covered under State Goods and
Service Tax Act 2016. A collection of SGST will be the revenue for State
Government. After the introduction of SGST all the state taxes like Value Added
Tax, Entertainment Tax, Luxury Tax, entry Tax etc. will be merged under SGST.
For example, if goods are sold or services are provided within the State then SGST
will be levied on such transaction.

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

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3.IGST:-
IGST means Integrated Goods and Service Tax. IGST falls under Integrated Goods
and Service Tax Act 2016. Revenue collected from IGST will be divided between
Central Government and State Government as per the rates specified by the
government. IGST will be charged on transfer of goods and services from one
state to another state. Import of Goods and Services will also be deemed to be
covered under Inter-state transactions so IGST will be levied on such
transactions. For example, if Goods or services are transferred from Rajasthan to
Maharashtra then the transaction will attract IGST.

Tax Rates under GST:-

GST rates are divided into five categories which are 0%, 5%, 12%, 18%, 28%.
All the basic need requirement good are pleased in 0% category like food grains,
bread, salt, books etc. Goods like paneer packed food, tea coffee etc are placed
under 5% category. Mobiles, sweets, medicine are under 12%. All types of services
are under18% category. All other remaining luxury items are placed under the
last head of 28%.

List of rate changes at 31st GST Council Meeting:-

SL.no List of Goods/Services Changes in Tax Rate
1 Vegetables provisionally 5% to Nil
preserved but
unsuitable for
immediate consumption
2 Vegetables 5% to Nil
cooked/uncooked via
steamed, frozen or
boiled (branded)
3 Music Books 12% to Nil
4 Parts for manufacturing 5%
renewable energy
devices falling under
chapter 84, 85 of tarrif

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5 Natural cork 12% to 5%
6 Fly ash blocks 12% to 5%
7 Walking sticks 12% to 5%
8 Marble rubble 18% to 5%
9 Agglomerated cork 18% to 12%
10 Cork roughly squared or 18% to 12%
debugged

11 Articles of Natural cork 18% to 12%

12 Movie Tickets < or = Rs 18% to 12%
100
13 Premium on Third party 18% to 12%
insurance on Vehicles

14 Accessories for 28% to 5%

Handicapped Mobility
Vehicles
15 Power banks 28% to 18%
16 Movie Tickets > Rs 100 28% to 18%

17 Video game consoles, 28% to 18%

equipments used for
Billiards and Snooker
and other sport related
items of HSN code 9504

18 Retreated & used 28% to 18%

pneumatic Rubber Tyres
19 Colour Television Sets & 28% to 18%
monitors up to “32
Inches
20 Digital & Video Camera 28% to 18%
recorders
21 Pulleys, transmission 28% to 18%
shafts, cranks and gear

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 boxes under HSN 8483
22 Tax rate on Air travel of 28% to 18%
pilgrims reduced*

Composition scheme under GST:-

Any taxable person whose aggregate turnover in the preceding financial year is
less than Rs. 1.5 Crores and less than Rs. 75 lakhs for North Eastern States can
opt for a simplified composition scheme where tax will payable at a concessional
rate on the turnover in a state without the benefit of Input Tax credit.The floor
rate of tax for CGST and SGST shall not be less than 1%. A tax payer opting for
composition levy shall not collect any tax from his customers. Tax payers making
inter-state supplies or paying tax on reverse charge basis shall not be eligible for
composition scheme.

Meaning of supply:-
The taxable event in GST is supply of goods or services or both. Various taxable
events like manufacture, sale, rendering of service, purchase, entry into a
territory of state etc. have been done away with in favour of just one event i.e.
supply. The constitution defines “Goods and Services Tax” as any taxon supply of
goods, or services or both, except for taxes on the supply of the alcoholic liquor
for human consumption.
The Central and State governments will have simultaneous powers to levy the
GST on Intra-State supply. However, The Parliament alone shall have exclusive
power to make laws with respect to levy of Goods and Services Tax on Inter-State
supply.

Time of supply:-
Under GST, liability to remit GST to Government arises at the time of supply. Time
of supply is generally the earliest of one of the three events, namely receiving
payment, issuance of invoice or completion of supply.

Transaction value:-
Transaction Value” is the basis for Valuation for supply of goods and/or services
under the GST Regime. For the levy of tax i.e. GST first we have to determine the
transaction value. ‘Transaction Value’ is the price actually paid or payable for
supply of goods and/or services.

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Features of registration process:-
1. Existing dealers: Existing VAT/Central excise/Service Tax payers will not
have to apply afresh for registration under GST.
2. New dealers: Single application to be filed online for registration under
GST.
3. The registration number will be PAN based and will serve the purpose for
Centre and State.
4. Unified application to both tax authorities.
5. Each dealer to be given unique ID GSTIN.
6. Deemed approval within three days.
7. Post registration verification in risk based cases only.

2(2) National & International scenario of GST:-

The National Scenario:-
At midnight of 30th June 2017, India became one of the 160 countries to launch
GST. The GST is a target based unified indirect tax and will remove all other
indirect taxes. It is collected and levied on the value added at each stage. GST will
be operated at both state (SGST- State collected GST) and central level (CGST-
Central collected GST). Besides, the center will also collect Integrated Goods and
Services Tax (IGST) in case of inter-state transactions. GST is a consumption-
based tax and is regressive. The ultimate burden of this tax is on the final
consumer of goods and services. So, whether your income is thousand, hundred or
nothing you have to pay this tax, as long as you buy some commodity. There is
uniformity in the tax between the rich and the poor. GST aims at unifying the
country’s population under a single tax regime expressing the principle of one
nation, one tax, and one market. GST will be collected under five tax braces of 0
percent, 5 percent, 12 percent, 18 percent and 28 percent. India is a developing
country where 21.9 per cent of the population still lives below the National
Poverty Line (Basic Statistics 2017). United Nations Development Programme’s
report shows that 55.3 percent of India’s population is living under
multidimensional poverty and Human Development Index (HDI) for the country
stands at 0.624 (0.454 only when adjusted for inequality). HDI Report 2016
placed India at 131st rank in a list of 188 countries. World Bank’s report on
world development indicators also placed India at much lower levels than the
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global average (World Bank 2016). The public health expenditure in India is only
1.40 percent of Gross Domestic Product (the year 2014).
In development scenario India is much behind than countries like Japan, United
Kingdom, France, United States, etc. but still having the highest GST in the world.
However, the developed countries have set much lower rates of GST than India
and are growing at faster rates, with almost nil amounts of poor people. Has the
government gone through above economic indicators before implementing GST?
Was it necessary for India to set the highest tax rates in the world? Someone
analyzed that countries where tax rates moved higher, GDP growth pushes up,
after following a temporary negative impact in initial years. The Reserve Bank of
India in its research report named ‘GST: A Game Changer’ also showed the good
performance of countries like New Zealand, Canada, Singapore, Malaysia after
implementation of GST. One thing that is missing is the background of a nation.
Every policy is based on the previous experience of the economy. India is a
country where more than 25 lakh people die of hunger every year (Hunger Facts
2017). A large number of people are engaged in agricultural pursuits. They are
earning less and living hard and as a result, farmers are committing suicides.
National Crime Records Bureau of India reported 13,755 farmer suicides in 2012.
How can the government expect these people as the bearers of tax? Besides, the
economy is already facing disturbances due to demonetization. Imposing GST in
such an economy and at this time will simply increase the inequality between the
rich and the poor. International Monetary Fund (2001) on tax policy for
developing countries suggested that consumer taxes play a diminished role in
these economies. Therefore, the possibility that the government will impose high
tax levels is virtually excluded.
The international scenario:-
GST!!! A pathway towards unified taxation regime eventually leading towards
betterment of economy!!! GST has been practiced in around 160 countries around
the globe. Legal instincs through this article bring before its readers the scenario
of GST/VAT around the globe, its implementation and its impact on respective
economies.

(1) United Kingdom(UK):-

Name: Value Added Tax

Date of introduction: 01.04.1973

Scope:
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 • Supply of goods or services madein the UK.
• Intra community procurements from EU Members.
• Importation of Goods & Services

Standard Rate: 20 %

Reduced Rate: 5 % and exempt and zero-rated

Threshold exemption limit: £ 73,000

Liabilities arises on:

1.Accrual Basis: On raising of invoice or receipt of consideration or supply (of

goods or services), whichever is earlier.
2. Cash Basis: (if turnover is below £1.35 million): On receipt of considerations

Payment: Usually quarterly returns. However, a small business can opt for
annual returns filing.

Export: Exports are ‘Zero’ rated.

Exempt Services:

1. Medical and education

2. Finance, insurance, postal services

Innovative Concept: To ease the VAT administration, the assessee is informed at

the time of registration itself as to which of the three quarterly cycle it should
follow for filling the VAT returns.

(2) Canada:-
Name: Federal Goods and Service Tax & Harmonized Sales Tax

Date of introduction GST: 01.01.1991 & HST 01.04.1997

Scope: Taxable supplies of goods and services

Standard Rate: GST 5% and HST varies from 0% to 15%

Reduced Rates: Exempt and Zero-rated

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Threshold exemption limit: Canadian $ 30,000

Liability arises on: On accrual (date of invoice, date of issue of invoice) or

receipt of consideration, whichever is earlier.

VAT returns and payments: Depending on the turnover, tax needs to be

deposited either monthly, quarterly or annually.

Reverse charge mechanism: Reverse charge applies to the importation of

services and intangible properties.

Export: Exports are ‘Zero’ rated.

Exempt services:

1. Supply of real estate

2. Financial Services and residential renting
3. Supplies by charities
4. Health, education services

Innovative concept: A group concern can supply to another group concern at

zero-rated.

(3) Australia:-
Name: Goods and Service Tax

Date of introduction: 01.07.2000

Scope:

• Taxable supplies of goods and services made which are connected with
Australia and made for a consideration by a registered (or required to be
registered) person in the course of business enterprises Importation of goods

Standard Rate: 10 %

Reduced Rate: 0 %

Threshold exemption limit: $ 75,000

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Liability arises on:

• Accrual basis: On the raising of invoice or receipt of consideration, whichever

is earlier.
• Cash basis: [an option available to assessee having turnover below $ 2 million]:
On receipt of consideration.

Payment: Depending on the turnover, the tax needs to be deposited either

monthly, quarterly or annually. The due date for payment Tax needs to be
deposited on 21st day following the end of the month/quarter/year.

Reverse Charge Mechanism: Reverse charge applies to supplies made by non-

residents

Export: Exports are ‘Zero’ rated.

Exempt Services:

1. Government supplies such as water services, drainage services etc.

2. Health, education, religious supplies Financial Services and residential renting
3. Vegetable, fruit, meat

Innovative Concept: ‘Group registration’ wherein a single consolidated return

for the group can be filed.

(4) New Zealand:-

Name: Goods and Service Tax

Date of introduction: 01.10.1986

Scope:

• Supply of goods or services made in New Zealand by a registered person

• Importation of goods

Standard Rate: 15 %

Reduced Rate: Zero-rated and exempt

Threshold exemption limit: NZ$ 60,000

Liability arises on: On raising of invoice or receipt of consideration, whichever is

earlier.
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Returns: Depending on the turnover it is either monthly, bi-monthly or six-
monthlyDue date for returns and payment On 28th day following the end of the
month or bi-month or six-month.

The due date for returns and payment: On the 28th day following the end of
the month or bi-month or six-month. However, a different date for the certain
periods.

Reverse charge mechanism: Reverse charge applies to the supply of services

made by non-residents.

Export: Exports are ‘zero’ rated.

Exempt services:

1. Real estate
2. Financial services
3. Residential rental

Innovative concept: The headline price in advertisement and stores must be

always GST inclusive except when supplies are to wholesale clients.

(5) Singapore:-
Name: Goods and Service Tax
Date of introduction: 01.04.1994
Scope:

• Supplies of goods and services in Singapore by a taxable person in the course

or furtherance of a business
• Importation of goods

Standard Rate: 7 %

Reduced Rate: Zero-rated and exempt

Threshold exemption limit: Singapore $ 1 million

Liability arises on: On raising of invoice or receipt of consideration or supply (of

goods or services), whichever is earlier.

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Returns: Usually quarterly returns. However, a business can opt for monthly
returns.

The due date for returns and payment: Last day of the month following the
end of the month or quarter.

Reverse charge mechanism: Reverse charge applies to the supply of services

Export: Exports are ‘zero’ rated.

Exempt services: Real estate, Financial services, Residential rental

Innovative concept: Divisional registration wherein if an assessee has several

divisions he may register the said divisions separately. Each such division should
submit its own return. The supplies between the divisions are ignored for GST
purposes.

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Chapter (3):- Analysis, Finding & Recommendation
3(1) Data presentation of GST:-
GST- The Goods and Services Tax- is the mother of all tax reforms in India. It is
crucial for all businesses to understand the implications of GST on their brands.
Since GST is a new law and crucial processes like return filing and invoicing have
been changed, it is even more important that business owners and tax
professionals understand the nuances of these new laws so that they can be GST-
compliant.

Understanding the Payment Process under GST

Every registered person is required to compute his tax liability on a monthly basis
by setting off the Input Tax Credit (ITC) against the Outward Tax Liability. If
there is any balance tax liability the same is required to be paid to the
government.

There are 3 ledgers prescribed by the government that is required to be

maintained by every tax payer –

1. Electronic Tax Liability Ledger

The electronic tax liability ledger shows the total tax liability of a registered
person at any point of time. This detail can be accessed on the GST portal of a
registered tax payer

Amount of tax payable A

Interest, late fee B
Amount of tax payable along with interest on account C
of mismatch of credit based on provisions of Section 29
or Section 29A or section 43C
Any other amount payable by the taxpayer or directed D
by the board on account of any proceeding’s carried
out
Tax Deduction at source E
Tax Collection at source F
Tax payable under reverse charge G
Amount payable by the department against any H
interest, refund, penalty, late fee or any other amount
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determined under the proceedings under this Act
Balance in Electronics Tax Liability Ledger =A+B+C+D-E-F-G-
H

2. Electronic Cash Ledger

An Electronic Cash Ledger will also be maintained on the GST portal. It will
display the total amount deposited by the tax payer towards discharge of his tax
liability or interest or late fee or penalty any other amounts. Also, it is now
mandatory for businesses making payment for more than Rs 10,000 to do it
electronically.
To know more on how to GST check our Guide on GST Payment

3. Electronic credit ledger

All the taxes paid on the inputs would be recorded in the electronic credit ledger.
The input tax credit in each of the cases mentioned below, shall also be
transferred to the electronic credit ledger:

• ITC available to the branch for the amount of credit transferred by ISD
• ITC allowed on input held in stock and the semi-finished or finished goods
would be credited to electronic credit ledger if the taxpayer applies for
registration within 30 days of becoming liable to pay tax.
• ITC available on the input held in stock and semi-finished or finished goods
by a taxpayer in the composition scheme converting to a normal taxpayer
shall be transferred to electronic credit ledger.
• ITC available due to the taxes paid under the reverse charge mechanism
shall also be transferred to the electronic credit ledger.
• ITC available on goods/services used for the business and other purposes
shall only be allowed to the extent applicable for business purposes.

All the payments under GST have to be made by either using the input tax credit
available in the electronic credit ledger or through the electronic cash ledger.

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Utilizing ITC for the fulfillment of Tax liability:
IGST: After the IGST input tax credit is used for payment of IGST then the
remaining ITC can be used to pay tax liability under CGST and SGST.
CGST: The CGST input tax credit cannot be used to pay the SGST liability but can
be used to pay the liability under CGST. Further, the balance of CGST credit
available can be used to pay the IGST liability.
SGST: The SGST input tax credit cannot be used to pay the CGST liability but can
be used to pay the liability under SGST. Further, the balance of SGST credit
available can be used to pay the IGST liability.

3(2) Data analysis of GST:-

The Prime Minister approved the Constitution Amendment Bill for goods and
service tax”( GST) in the parliament Session ( Rajya Sabha on 3 August 2016 and
Lok Sabha on 8 August 2016) along with the ratification by 50% of the state
legislatures. Thus, the current indirect taxes levied by state and Centre are all set
to be replaced with proposed implementation of GST by April 2017.This would be
the biggest tax Reform since Independence and a boon to the economy as it will

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eradicate the shortcomings of the current tax structure and provide a single tax
on supply of all goods and services.

Benefits of GST:-
 Removal of bundled indirect taxes such as VAT, CST, Service tax, CAD, SAD, and
Excise.
 Less tax compliance and a simplified tax policy compared to current tax
structure.
 Removal of cascading effect of taxes i.e. removes tax on tax.
 Reduction of manufacturing costs due to lower burden of taxes on the
manufacturing sector. Hence prices of consumer goods will be likely to come
down.
 Lower the burden on the common man i.e. public will have to shed less money
to buy the same products that were costly earlier.
 Increased demand and consumption of goods.
 Increased demand will lead to increase supply. Hence, this will ultimately lead
to rise in the production of goods.
 Control of black money circulation as the system normally followed by traders
and shopkeepers will be put to a mandatory check.
 Boost to the Indian economy in the long run .

Goods and Services Tax (GST) Forms for Registration

& Cancellation:-
Sr.No Form Description
Number
1. REG-01 Registration Application u/s 19(1) GST Act, 20
2. REG-02 Acknowledgement
3. REG-03 Information regarding Registration / Amendments / Cancellation
Notice
4. REG-04 Filing application for clarification Registration / Amendment /
Cancellation / Revocation of Cancellation
5. REG-05 Order application for rejection for Registration / Amendment /
Cancellation / Revocation of Cancellation
6. REG-06 Issued registration certificate u/s 19(8A) of the GST Act, 20

25 | P a g e
7. REG-07 Application for Registration as TDS or TCS u/s 19(1) of the GST
Act, 20
8. REG-08 Order of Cancellation of Application for Registration as TDS /TCS
u/s 21 of the GST Act
9. REG-09 Non-Resident Taxable Person Application for Registration
10. REG-10 Person supplying online information and database access or
retrieval services from a place outside India to a person in India,
other than a registered person Application for registration
11. REG-11 Amendment in Particulars subsequent to Registration Application
12. REG-12 Temporary Registration/ Suo Moto Registration Order of Grant
13. REG-13 Grant of Unique Identity Number (UIN) to UN Bodies/ Embassies
/others Application/Form
14. REG-14 Application for Cancellation of Registration under GST 20
15. REG-15 Amendment Order
16. REG-16 Cancellation of Registration Application
17. REG-17 Cancellation of Registration Show Cause Notice
18. REG-18 Show Cause Notice issued for Cancellation Reply
19. REG-19 Cancellation of Registration Order
20. REG-20 Dropping the proceedings for cancellation of registration Order
21. REG-21 Revocation of Cancellation of Registration Application
22. REG-22 Order for revocation of cancellation of registration
23. REG-23 Show Cause Notice for rejection of an application for revocation
of cancellation of registration
24. REG-24 Reply to the notice for rejection of an application for revocation of
cancellation of registration
25. REG-25 Provisional Registration Certificate
26. REG-26 Existing Taxpayer Application Enrolment
27. REG-27 Provisional registration Show Cause Notice cancellation
28. REG-28 Provisional registration Order Cancellation
29. REG-29 Provisional registration Application cancellation
30. REG-30 Field Visit Report Form

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Goods and Services Tax (GST) Forms for Composition
Sr.No Form Description
Number

1. CMP-01 Notification for the payment of taxes under section 10

(composition scheme)

(Concerning taxpayers registered under the present regime

migrate on the elected day)
2. CMP-02 Notification for the payment of taxes under section 10
(composition scheme)
(Concerning Taxpayers registered under the Act)
3. CMP-03 Notification of stock details from the date of opting
composition scheme
(Concerning taxpayers registered under the present regime
migrate on the elected day)
4. CMP-04 Notification/ Application to opt out from the composition
scheme
5. CMP-05 Notification of denial option for the payment of tax under
composition scheme
6. CMP-06 Responding to the notification to show cause
7. CMP-07 Reply order to accept or reject concerning show cause notice

List of forms for a GST Practitioner

Forms for GST-Practitioner

Form Purpose of Form
FORM GST Application to become a practitioner
PCT-1
FORM GST Certificate of Registration for a GST-Practitioner
PCT-2
Form GST Notice seeking additional information on application for enrollment or
PCT-3 show cause notice issued to GST practitioner for misconduct
Form GST Order of rejection of application for enrollment or disqualification of a
PCT-4 GST practitioner found guilty of misconduct
Form GST List of enrolled GST practitioners maintained on the Common portal
PCT-5

27 | P a g e
Form GST Authorisation of a GST practitioner by a taxable person on the
PCT-6 Common Portal
Form GST Withdrawal of authorisation of a GST practitioner by a taxable person
PCT-7

List of Forms for Input Tax Credit (ITC) under GST

ITC Forms
Form Purpose of Form
Form GST Declaration for claim of input tax credit under sub-section (1) of
ITC – 1 section 18.
Form GST Declaration for transfer of ITC in case of sale, merger, demerger,
ITC – 2 amalgamation, lease or transfer of a
business under sub-section (3) of section 18.
Form GST Declaration for intimation of ITC reversal on inputs, inputs contained
ITC – 3 in semi-finished and finished
goods and capital goods in stock under sub-section (4) of section 18.
Form GST Details of goods/capital goods sent to job worker and received back.
ITC – 4

List of Form for Tax payment under GST

Form Purpose of Form

Form GST PMT- Electronic Liability Register of registered person
01 (Part–I: Return related liabilities
Electronic Liability Register of taxable person
(Part–II: Other than return related liabilities)
Form GST PMT- Electronic Credit Ledger
02
Form GST PMT- Order for re-credit of the amount to cash or credit
03 ledger on
rejection of refund claim
Form GST PMT- Application for intimation of discrepancy in Electronic
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04 Credit Ledger/Cash Ledger/Liability Register
Form GST PMT- Electronic Cash Ledger
05
Form GST PMT- Challan For Deposit of Goods and Services Tax
06
Form GST PMT- Application for intimating discrepancy in making
07 payment

List of Tax Refund forms under GST

Refund forms under GST

Form Purpose of Form
GST Application for Refund
RFD-
01
GST Acknowledgement
RFD-
02
GST Deficiency Memo
RFD-
03
GST Provisional Refund Order
RFD-
04
GST Payment Advice
RFD-
05
GST Refund Sanction/ Rejection Order/Interest on delayed
RFD- refund order (same as refund order)
06
GST Order for complete adjustment of sanctioned Refund
RFD-
07

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GST Notice for rejection of application for refund
RFD-
08
GST Reply to show cause notice
RFD-
09
GST Application for Refund by any specialize agency of UN or
RFD- Multilateral Financial Institution and Organization,
10 Consulate or Embassy of foreign countries, etc

3(3) Findings & Recommendation:-

Types of GST Returns:

S.No Return Particulars

1. GSTR-1 Details of outward supplies of taxable goods or services or

both effected

2. GSTR-2 Details of inward supplies of taxable goods or services or

both claiming input tax credit

3 GSTR-3 Monthly return on the basis of finalization of details of

outward supplies and inward supplies along with the
payment of amount of tax

4 GSTR-4 Quarterly Return for compounding taxable persons

5 GSTR-5 Return for Non-Resident foreign taxable persons

6 GSTR-6 Input Service Distributor return

7 GSTR-7 Return for authorities deducting tax at source

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 8 GSTR-8 Details of supplies effected through e-commerce operator
and the amount of tax collected as required under sub-
section (52)

9 GSTR-9 Annual Return

10 GSTR-9A Simplified Annual return by Compounding taxable persons

registered under section 10

Due Dates for filing of Return in GST:

S.No Return Due Date
Form

1. GSTR-1 10th of Next Month

2. GSTR-2 After the 10th but before 15th of Next Month

3 GSTR-3 20th of Next Month

4 GSTR-4 18th from end of the Quarter

5 GSTR-5 20th from end of the month or within 7 days after the last day
of validity of registration whichever is earlier

6 GSTR-6 13th of Next Month

7 GSTR-7 10th of Next Month

8 GSTR-8 10th of Next Month

9 GSTR-9 31st December of Next Financial Year

10 GSTR-9A 31st December of Next Financial Year

The GST council has recommended changes in the

GST rates on the followings goods:-
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 Sl. HSN Description Present Recommended
No. GST Rate
1. 0802 Walnuts, 12% 5%
whether or
not shelled
2. Tamarind 12% 5%
0813 dried
3. 2106 Roasted 12% 5%
Gram
4. 2106 Custard 28% 18%
powder
5. 2106 Batters, 18% 12%
including idli
/ dosa batter
6. 2304,2305 Oil cakes Nil for 5%
7. 2306 Cotton seed Cattle [irrespective of
oil cake feed 5% end use]
for other Nil
uses Nil
for
8. 33074100 Dhoop batti, cattle feed [irrespective of
dhoop, 5% for end use 5%
sambhrani other
uses12%
and

9. 3926 other similar 28% 18%

items
Medical
grade
sterile
disposable
10. 3926 Gloves of 28% 18%
plastics
Plastic
32
 raincoats
11. 4016 Rubber 28% 12%
bands
12. 4016 Rice rubber 28% 18%
rolls for
paddy de-
husking
13. 4907 Machine 12% 5%
Duty Credit
Scrips
14. 50 to 55 Khadi fabric, 5% Nil
sold through
Khadi and
15. 5801 Village 12% 5% [with no
industries
Commission’s
outlets
16 5808 Saree fall 12% Refund of ITC
5%
17. 6501 Textile caps 18% 12%
18. 6912 Idols made of 28% Nil
clay
19. 44,68,83 Idols of 28% 12%
wood, stone
[including
20. 7102 Rough 3% 0.25%
industrial
diamonds
including

33
Recommendation of GST:-

The major recommendations are as detailed below:

1. Upper limit of turnover for opting for composition scheme to be raised

from Rs. 1 crore to Rs. 1.5 crore. Present limit of turnover can now be
raised on the recommendations of the Council.
2. 2. Composition dealers to be allowed to supply services (other than
restaurant services), for upto a value not exceeding 10% of turnover in
the preceding financial year, or Rs. 5 lakhs, whichever is higher.
3. Levy of GST on reverse charge mechanism on receipt of supplies from
unregistered suppliers, to be applicable to only specified goods in case of
certain notified classes of registered persons, on the recommendations of the
GST Council.

4. The threshold exemption limit for registration in the States of Assam,

Arunachal Pradesh, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand
to be increased to Rs. 20 Lakhs from Rs. 10 Lakhs.

5. Taxpayers may opt for multiple registrations within a State/Union

territory in respect of multiple places of business located within the same
State/Union territory.

6. Mandatory registration is required for only those e-commerce

operators who are required to collect tax at source.

7. Registration to remain temporarily suspended while cancellation of

registration is under process, so that the taxpayer is relieved of continued
compliance under the law.

8. The following transactions to be treated as no supply (no tax payable)

under Schedule III:

34
 a) Supply of goods from a place in the non-taxable territory to another
place in the non-taxable territory without such goods entering into India;

b) Supply of warehoused goods to any person before clearance for

home consumption; and

c) Supply of goods in case of high sea sales.

9.Scope of input tax credit is being widened, and it would now be made
available in respect of the following:

a) Most of the activities or transactions specified in Schedule III;

b) Motor vehicles for transportation of persons having seating capacity

of more than thirteen (including driver), vessels and aircraft;

c) Motor vehicles for transportation of money for or by a banking

company or financial institution;

d) Services of general insurance, repair and maintenance in respect of

motor vehicles, vessels and aircraft on which credit is available; and

e) Goods or services which are obligatory for an employer to provide to

its employees, under any law for the time being in force.

10. In case the recipient fails to pay the due amount to the supplier within
180 days from the date of issue of invoice, the input tax credit availed by the
recipient will be reversed, but liability to pay interest is being done away
with.

11. Registered persons may issue consolidated credit/debit notes in respect

of multiple invoices issued in a Financial Year.

12. Amount of pre-deposit payable for filing of appeal before the Appellate
Authority and the Appellate Tribunal to be capped at Rs. 25 Crores and Rs. 50
Crores, respectively.

35
 13. Commissioner to be empowered to extend the time limit for return of
inputs and capital sent on job work, upto a period of one year and two years,
respectively.

14. Supply of services to qualify as exports, even if payment is received in

Indian Rupees, where permitted by the RBI.

15. Place of supply in case of job work of any treatment or process done on
goods temporarily imported into India and then exported without putting
them to any other use in India, to be outside India.

16. Recovery can be made from distinct persons, even if present in different
State/Union territories.

17. The order of cross-utilisation of input tax credit is being rationalised.

36
Chapter (4):- conclusion
4(1) conclusion of GST
Implementation of GST is one of the best decision taken by the Indian
government. For the same reason, July 1 was celebrated as Financial
Independence day in India when all the Members of Parliament attended the
function in Parliament House. The transition to the GST regime which is
accepted by 159 countries would not be easy. Confusions and complexities
were expected and will happen. India, at some point, had to comply with such
regime. Though the structure might not be a perfect one but once in place,
such a tax structure will make India a better economy favorable for foreign
investments. Until now India was a union of 29 small tax economies and 7
union territories with different levies unique to each state. It is a much
accepted and appreciated regime because it does away with multiple tax
rates by Centre and States. And if you are doing any kind of business then
you should register for GST as it is not only going to help Indian
government but will help you also to track your business weekly as in GST you
have to make your business activity statement each week.

Bibliography:-
WEBSITES:-
✓ http://www.gst.gov.in
✓ http://www.taxmann.com
✓ http://www.icai.org

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