INTRODUCTION

The Goods and Services Tax (GST) is a successor to VAT used in India on the
supply of goods and services. GST is a digitalized form of VAT where you can also
track the goods & services. Both VAT and GST have the same taxation slabs. It is a
comprehensive, multistage, destination-based tax: comprehensive because it has
subsumed almost all the indirect taxes except a few state taxes. Multi-staged as it is,
the GST is imposed at every step in the production process, but is meant to be
refunded to all parties in the various stages of production other than the final
consumer and as a destination-based tax, it is collected from point of consumption and
not point of origin like previous taxes.
Goods and services are divided into five different tax slabs for collection of
tax: 0%, 5%, 12%, 18% and 28%. However, petroleum products, alcoholic drinks,
and electricity are not taxed under GST and instead are taxed separately by the
individual state governments, as per the previous tax system. There is a special rate of
0.25% on rough precious and semi-precious stones and 3% on gold. In addition
a cess of 22% or other rates on top of 28% GST applies on several items like aerated
drinks, luxury cars and tobacco products. Pre-GST, the statutory tax rate for most
goods was about 26.5%; post-GST, most goods are expected to be in the 18% tax
range.
The tax came into effect from 1 July 2017 through the implementation of
the One Hundred and First Amendment of the Constitution of India by the Indian
government. 1st July is celebrated as GST Day. The GST replaced existing multiple
taxes levied by the central and state governments.
Implementation.
The GST was launched at midnight on 1 July 2017 by the President of India,
and the Government of India. The launch was marked by a historic midnight (30 June
– 1 July) session of both the houses of parliament convened at the Central Hall of the
Parliament. Though the session was attended by high-profile guests from the business
and the entertainment industry including Ratan Tata, it was boycotted by the
opposition due to the predicted problems that it was bound to lead for the middle and
lower class Indians. The tax was strongly opposed by the largest opposition party,
the Indian National Congress. It is one of the few midnight sessions that have been
held by the parliament - the others being the declaration of India's independence on 15
August 1947, and the silver and golden jubilees of that occasion. After its launch, the
GST rates have been modified multiple times, the latest being on 10th May 2023
where taxpayer with over ₹5 crore turnover in any financial year from 2017-2018
shall issue e-invoices w.e.f. 1st August 2023.

PROFILE OF THE STUDY

GST also known as Goods and Services Tax. More than 150 nations have
implemented GST so far. GST is one indirect tax for the entire country. GST is an
Indirect Tax which has replaced many Indirect Taxes in India. The Goods and
Service Tax Act was passed in the Parliament on 29th March 2017. The Act came
into effect on 1st July 2017. Goods and Service Tax is known is a game changer in
Indian Economy. India has posed a beacon of hope with ambitious growth targets,
supported by a bunch of strategic undertakings such as Make in India and Digital
India campaigns. The Goods and Service Tax is another such undertaking that is
expected to provide the much needed stimulant for economic growth in India by
transforming the existing base of indirect taxation towards the free flow of goods and
services. Goods and Service Tax Law in India is a Comprehensive, Multi-stage,
Destination-based Tax that is levied on every value addition. This biggest tax reform
in Independent India, the Goods and Services Tax Act
(GST) has brought on a platter, a concept called “ Composition levy” to its taxpayer.
One of the fundamental features of GST is the seamless flow of input credit across the
chain (from the manufacture of goods toll it is consumed) and across the country.
HSN code
India is a member of World Customs Organization (WCO) since 1971. It was
originally using 6-digit HSN codes to classify commodities for Customs and Central
Excise. Later Customs and Central Excise added two more digits to make the codes
more precise, resulting in an 8 digit classification. The purpose of HSN codes is to
make GST systematic and globally accepted.
The Harmonized System of Nomenclature (HSN) code is used for classifying
goods under the Goods and Services Tax (GST) in India. The HSN code is a six-digit
code that uniquely identifies a product. The first two digits of the code identify the
chapter, the next two digits identify the heading, and the last two digits identify the
subheading. HSN codes will remove the need to upload the detailed description of the
goods. This will save time and make filing easier since GST returns are automated.
Rate
The GST is imposed at variable rates on variable items. The rate of GST is
18% for soaps and 28% on washing detergents. GST on movie tickets is based on
slabs, with 18% GST for tickets that cost less than ₹100 and 28% GST on tickets
costing more than ₹100 and 28% on commercial vehicle and private and 5% on
readymade clothes.The rate on under-construction property booking is 12%.
[33] Some industries and products were exempted by the government and remain
untaxed under GST, such as dairy products, products of milling industries, fresh
vegetables & fruits, meat products, and other groceries and necessities.
Checkposts across the country were abolished ensuring free and fast movement of
goods. Such efficient transportation of goods was further ensured by
subsuming octroi within the ambit of GST.
The Central Government had proposed to insulate the revenues of the States from the
effects of GST, with the expectation that in due course, GST will be levied on
petroleum and petroleum products. The central government had assured states of
compensation for any revenue loss incurred by them from the date of GST for a
period of five years. However, no concrete laws have yet been made to support such
action. GST council adopted concept paper discouraging tinkering with rates.
e-Way Bill
An e-Way Bill is an electronic permit for shipping goods similar to a waybill. It is an
electronic bill; there is no requirement for a paper bill. It was made compulsory for
inter-state transport of goods from 1 June 2018. It is required to be generated for
every inter-state movement of goods beyond 10 kilometres (6.2 mi) and the threshold
limit of ₹50,000 (US$630).
It is a paperless, technology solution and critical anti-evasion tool to check tax
leakages and clamp down on trade that currently happens on a cash basis. The pilot
started on 1 February 2018 but was withdrawn after glitches in the GST Network. The
states are divided into four zones for rolling out in phases by end of April 2018.
A unique e-Way Bill Number (EBN) is generated either by the supplier, recipient or
the transporter. The EBN can be a printout, SMS or written on invoice is valid. The
GST/Tax Officers tally the e-Way Bill listed goods with goods carried with it. The
mechanism is aimed at plugging loopholes like overloading, understating etc. Each e-
way bill has to be matched with a GST invoice. Transporter ID and PIN Code now
compulsory from 01-Oct-2018. It is a critical compliance-related GSTN project under
the GST, with a capacity to process 7.5 million e-way bills per day.
Intra-State e-Way Bill
The five states piloting this project are Andhra Pradesh, Gujarat, Kerala,
Telangana and Uttar Pradesh, which account for 61.8% of the inter-state e-way bills,
started mandatory intrastate e-way bill from 15 April 2018 to further reduce tax
evasion. It was successfully introduced in Karnataka from 1 April 2018. The intrastate
e-way bill will pave the way for a seamless, nationwide single e-way bill system. Six
more states Jharkhand, Bihar, Tripura, Madhya Pradesh, Uttarakhand and Haryana
will roll it out from 20 April 18. All states are mandated to introduce it by 30 May
2018.
Goods excluded from the GST
1. Tobacco Products: Products like cigarettes and other tobacco-based items attract
separate taxes.
2. Alcohol for human consumption (i.e., not for commercial use).
3. Petrol and petroleum products (GST will apply at a later date), i.e., petroleum
crude, high-speed diesel, motor spirit (petrol), natural gas, aviation turbine fuel.
GST Council
GST Council is the governing body of GST having 33 members, out of which
2 members are of centre and 31 members are from 28 state and 3 Union territories
with Legislature. The council contains the following members (a) Union Finance
Minister (as chairperson) (b) Union Minister of States in charge of revenue or finance
(as member) (c) the ministers of states in charge of finance or taxation or other
ministers as nominated by each states government (as member). GST Council is an
apex member committee to modify, reconcile or to procure any law or regulation
based on the context of goods and services tax in India. The council is headed by the
union finance minister Nirmala Sitharaman assisted with the finance minister of all
the states of India. The GST council is responsible for any revision or enactment of
rule or any rate changes of the goods and services in India.
Goods and Services Tax Network (GSTN)
The GSTN software is developed by Infosys Technologies and the information
technology network that provides the computing resources is maintained by the NIC.
"Goods and Services Tax Network" (GSTN) is a nonprofit organization formed for
creating a sophisticated network, accessible to stakeholders, government, and
taxpayers, to access information from a single source (portal). The portal is accessible
to the tax authorities for tracking down every transaction, while taxpayers have the
ability to connect for their tax returns.
GSTR-9
Form GSTR-9 is an annual return to be filed once for each financial year, by
the registered taxpayers who were regular taxpayers, including SEZ units and SEZ
developers. The taxpayers are required to furnish details of purchases, sales, input tax
credit or refund claimed or demand created etc. in this return.
Who need to file the GSTR-9
Form GSTR-9 is to be filed by a person who is registered as a normal
taxpayer, including SEZ unit or SEZ developer and the taxpayers who have
withdrawn from the composition scheme to normal taxpayer any time during the
financial year.
Composition taxpayers can file Annual Return in Form GSTR-9A.
Annual Return is not required to be filed by casual taxpayer / Non Resident taxpayer /
ISD/ OIDAR Service Providers.
Difference between GSTR-9 and GSTR-9C
Form GSTR-9 is required to be filed by every person registered as normal
taxpayer. However, certain class of taxpayers may be exempted from filing Form
GSTR-9 by way of Notifications issued by Government of India from time to time.
Form GSTR-9C is required to be filed by every registered person whose
aggregate turnover is above a certain threshold during the financial year, as notified
by way of Notifications issued by Government of India from time to time. Such
taxpayers are required to get their accounts audited by Chartered Accountant or Cost
Accountant and need to submit a copy of audited annual accounts and reconciliation
statement.
ANALYSIS AND INTERPREATAION

CONCLUSION
REFERENCE
1. https://tutorial.gst.gov.in/userguide/returns/FAQs_gstr9.htm#:~:text=Form
%20GSTR%2D9%20is%20an,created%20etc.%20in%20this%20return.
2. https://www.bajajfinserv.in/gst
3. https://en.wikipedia.org/wiki/Goods_and_Services_Tax_(India)
4.