PROJECT REPORT

(Submitted for the Degree of [Link].

Honours in Accounting & Finance under the
University of Calcutta)

TITLE OF THE PROJECT:

“GOODS & SERVICES TAX”

SUBMITTED BY
Name of the Candidate : Ranjan Sharma
Name of the College: Bidhan Chandra
College
CU Registration Number: 611-1111-1027-18
CU Roll Number: 181611-21-0175
College Roll Number: 133 (Hons.)
Contact Number : 8617751805

SUPERVISED BY
Name of the Supervisor: PROF KRISHNA
SARKAR
Name of the College: Bidhan Chandra
College
MONTH & YEAR OF SUBMISSION:
Date: July, 2021
1

ACKNOWLEDGEMENT
First of all thanks to God, for giving me and my friends
the strength and will to complete this task just in time.
Even though we faced a lot of difficulties while trying to
complete this task, the group still managed to complete
it and we are glad about it.
A special thanks to PROF KRISHNA SARKAR , for being
such a good guidance to us while we were doing this
task. He had given us an appropriate example and
knowledge in order to make us understand more about
this topic. He spends his time to explain the execution
of this idea in all the way.
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
supporting us financially and pay all the cost required
to complete this task.
2

SL. TITLE PAGE

NO. NO.
1. FRONT PAGE 1

2. ACNOWLEDGEMENT 2

3. CHAPTER 1 : INTRODUCTION 4-8

TO GST
4. CHAPTER 2 : IMPACT OF GST 9 – 12
ON VARIOUS SECTORS
5. CHAPTER 3 : DATA FINDING 13 - 19
&ANALYSIS OF GST
6. CHAPTER 4 : CONCLUSION & 20 – 22
RECOMMENDATION
7. CHAPTER 5 : BIBLIOGRAPHY 23 – 24

8. SUPERVISOR’S CERTIFICATE 25
 9. STUDENT DECLARATION 26

CONTENTS

CHAPTER 1

INTRODUCTION
TO GST
4

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.

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 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

1.3: OBJECTIVES OF GST
• To Develop national Market- One Nation, one Tax

• To reduce multiplicity of indirect taxes.

• 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.

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

1.5 : DISADVANTAGES OF GST:

• Increased costs due to software purchase
• Being GST-compliant

• GST will mean an increase in operational costs

• GST came into effect in the middle of the financial year

• GST is an online taxation system

• SMEs will have a higher tax burden

1.6 : 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.
6

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)

Types CGST SGST IGST UGST/

of UTGST
Differen
ces
Applicable Intrastat Intrastat Inter- Within one Union
transactions e (Within e state Territory (UT)
(Goods & one (Within (betwee
Services) state) one n two
 state) states or
one
state
and one
UT) and
imports
Collected by Central State Central UT Govt.
Govt. Govt. Govt.
Benefitting Central State Central UT Govt.
Authority Govt. Govt. Govt. &
State
Govt.

1.8: CENTRAL TAXES SUBSUMED IN GST

• Central Excise Tax
• Service Tax
• Additional 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

1.10: TAXES NOT SUBSUMED IN GST

• Custom duty
• Stamp duty
• Securities transaction Tax
• Central Excise on Petroleum products, Tobacco
• VAT on Petroleum Products and Alcohol
7
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%

1.12: 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.

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 ‘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.

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.

8
 CHAPTER 2:

IMPACT OF GST ON VARIOUS

SECTORS

2.1: 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

• Gold industry

• Textile/readymade garment sector

• It industry

• Fmcg industry

2.2: 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.
10

2.3: 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.

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.

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: 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. 11

2.7: 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.

2.8: 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.

2.9: 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%.

2.10: 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.

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.
12

CHAPTER 3:

DATA FINDING & ANALYSIS

OF GST
13

FIGURE 3.1: IMPACT OF GST ON RETAIL

INDUSTRY
Sources: [Link]

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.

14
FIGURE 3.2: IMPACT OF GST ON RETAIL
INDUSTRY

Sources: [Link]

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.
 e. Better Opportunities & Growth of Retail
Market – Upon implementation of GST, analysts
predict unification of markets.

15
FIGURE 3.3: IMPACT OF GST ON
COMMON PEOPLE’S SPENDING:
35%

30%

25%

20%
Pre-GST
15% Post -GST

10%

5%

0%
Food Entertain Transport Personal Care Mobile

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.

16
FIGURE 3.4: COMPONENT ANALYSIS OF
GST GROSS COLLECTION IN INDIA

CGST
CGST after Import
IGST iron Import
IGST Other than import
SGST other than import
SGST

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).

17

FIGURE 3.5: TREND OF GST

COLLECTION IN INDIA
140000

120000
GST Collection in FY
100000 2019-20

80000 GST Collection in FY

2020-21
60000

40000

20000

0
April May June July August September

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.

18

FINDINGS OF THE STUDY:

After analysis and interpretation of the data these are

following findings were emerged:
 Most of the respondents are male.
 Majority of the respondents i.e.58 % comes under
the age group above 40 years and 32 % are comes
under 25-40 years.
 More than 60 % respondents are related to
businessman category.
 The most of responds perception are very positive
towards the GST and they are aware of GST
through the mass media .
 56 % respondents are that opinion GST is very
good tax reform for India and it is the turning point
of the taxation system .
 Most of the customer perception that GST is very
beneficial Long Term for economy of the country
and also effect of GDP .
 Maximum 50% respondents are respond GST has
increased the various Legal formalities .
 Majority of the people have perception that the still
need more clarity on GST and opened that they
discuss about GST with other .
 Most of the customer opinion that GST is fair tax
and also GST is predominantly compliance tax .

19

CHAPTER 4:
 CONCLUSION &
RECOMMENDATION

2
0

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.

21
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
22

CHAPTER 5:

BIBLIOGRAPHY
23

BIBLIOGRAPHY

• Central Board of Excise and Customs, Ministry of

Finance. (2017).
• Goods and ServicesTaxCouncil.(2017).
• [Link]
• [Link]
• [Link]
• [Link]
• Wikipedia, the free content encyclopedia
24

Annexure-IA

SUPERVISOR'S CERTIFICATE
This is to certify that MR. RANJAN SHARMA a student
of [Link]. Honours in Accounting & Finance of Bidhan
Chandra 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.
Place: Kolkata Signature:
Date: Name: : KRISHNA
SARKAR
Designation:
PROFESSOR
Name of the College:
Bidhan Chandra College.
25

Annexure-IB

STUDENT'S DECLARATION
I hereby declare that the Project Work with the title
“GOODS & SERVICE TAX” submitted by me for the
partial fulfilment of the degree of [Link]. 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.
Place: Kolkata Signature:
Date: Name: Ranjan Sharma
 Registration Number: 611-
1111-1027-18
College Roll Number: 133
(Hons.)

26