Project On Goods & Service Tax
Project On Goods & Service Tax
Project On Goods & Service Tax
SUBMITTED BY
Name of the Candidate : LOVEKUSH PATEL
Registration Number: XX-XXX-XXX
Name of the College: SYAMAPRASAD COLLEGE
College Roll Number: XXX
CU exam Roll Number: X X X X -XX-XXXX
SUPERVISED BY
Name of the Supervisor:----------------------------
Name of the College: SYAMAPRASAD COLLEGE
This is to certify that MR. LOVEKUSH PATEL a student of B.Com. Honours in Accounting &
Finance of SYAMAPRASAD COLLEGE , under the University of Calcutta has worked under my
supervision and guidance for his/her Project Work and prepared a Project Report with the title
“GOODS & SERVICE TAX” which he/she is submitting, is his/her genuine and original work to
the best of my knowledge.
Signature:
Name:
Designation: PROFESSOR
I hereby declare that the Project Work with the title “GOODS & SERVICE TAX”
submitted by me for the partial fulfilment 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 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. However, extracts of any
literature which has been used for this report has been duly acknowledged providing details
of such literature in the references.
Signature:
Name: LOVEKUSH PATEL
Registration Number: xxx-xxx-xxxx
College Roll Number:xxx
ACKNOWLEDGEMENT
I being a benefited student of SYAMAPRASAD college, affiliated under the university of
calcutta, would like to take this opportunity to express my profound gratitude and regards to
my supervisor, and to the entire department of commerce for their exemplary guidance,
monitoring and constant encouragement throughout the course of the completion of the
project “GOOD AND SERVICE TAX”.
The guidance given by them time to time shall carry me a long way in the journey of my
career on which i am about to embark. I would also like to express my thankfulness to the
college and university committee for providing me with the opportunity to work on this
project, and for their cordial support, valuable information and guidance, which helped me in
completing this task through its various stages.
I am thankful to all the people who willingly responded to the questionnaire and their
contribution has been invaluable. This project would not have been completed without their
participation. I am grateful for their cooperation during the period of my project. Lastly, I
thank to my parents and friends for their constant encouragement without which the project
would not have been possible
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CONTENTS
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 TO 6 - 10
GST
6. CHAPTER 2: IMPACT OF GST ON VARIOUS SECTORS 11 - 14
6. QUESTIONNAIRE 25- 26
5
CHAPTER 1:
INTRODUCTION
TO GST
6
1.1: 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.
7
1.4: 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
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.
8
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)
9
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, Platinum etc.
(b) In case of Rough diamond rate of GST is 0.25%
1.14: 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.
10
CHAPTER 2:
11
2.0: 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
• Logistics industry
• Banking sector
• Gold industry
• It industry
• Fmcg industry
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2.2: 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.
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2.6: 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.
2.9: IT INDUSTRY
All IT services and software products, as well as freelancers, are levied 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.
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CHAPTER 3:
15
FIGURE 3.1: IMPACT OF GST ON RETAIL INDUSTRY
Sources: wordpress.com
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.
16
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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FIGURE 3.3: IMPACT OF GST ON COMMO 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 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.
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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 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).
19
FIGURE 3.5: TREND OF GST COLLECTION IN INDIA
Sources:https://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 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 &
RECOMMENDATION
21
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.
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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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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+
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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
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 state
some suggestions below:
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