PROJECT REPORT

(Submitted for the Degree of B.Com. Honours in Accounting & Finance

under the University of Calcutta)

TITTLE OF THE PROJECT:

“GOODS AND SERVICES TAX”

SUBMITTED BY:
Name of the Candidate: ANAMIKA RAJAK.
Registration Number: 115-1211-0730-21
Name of the College: Surendra Nath College.
College Roll Number: 139.
CU Exam Roll Number: 211115-11-0043

SUPERVISED BY:
Name of the Supervisor: .
Name of the College: Surendra Nath College.

MONTH & YEAR OF SUBMISSION:

MAY,2024
SUPERVISOR’S CERTIFICATE
This is to certify that ANAMIKA RAJAK a student of B.Com. Honours in
Accounting & Finance of SURENDRA NATH 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 his genuine and
original work to the best of my knowledge.

Place: Kolkata Signature:

Date: / /2024 Name: Nandini Mitra

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 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.

Place: Kolkata Signature:

Date: / /2023. Name: ANAMIKA RAJAK.

Registration Number: 115-1211-0730-21.

College Roll Number: 139.

ACKNOWLEDGEMENT.
First of all, thanks to God, for giving me the strength and will to
complete this task just in time. Even though I faced a lot of difficulties
while trying to complete this task, I still managed to complete it and I
am glad about it.
A special thanks to, Nandini Mitra for being such a 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.
I also appreciate Mr Amit Bhowmik, for his support to me to do this
project in all the way and made it possible. I also want to thank other
pupils who were willing to share their information about this topic.
They gave us a lot of new ideas about the task.
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.
CONTENTS

S.NO
TITLE PG. NO
1. INTRODUCTION. 06-13
2. CONCEPTUAL FRAMEWORK /NATIONAL 14-34
AND INTERNATIONAL SCENERIO.
• IMPACT OF GST ON VARIOUS SECTORS.
• LEVY AND COLLECTION OF GSTS.
• INPUT TAX CREDIT.
3. PRESENTATION OF DATA, ANALYSIS AND 35-38
FINDINGS.
7. CONCLUSION & RECOMMENDATION. 39-41

8. BIBLIOGRAPHY 42-43
INTRODUCTION
TO
GST.
1.1: Introduction
Goods and Services Tax (GST) would be a very significant step in the field of indirect tax
reforms in India. By amalgamating a large number of Central and State taxes into a single
tax, it would mitigate cascading or double taxation in a major way and pave the way for a
common national market. From the consumer point of view, the biggest advantage would
be in terms of a reduction in the overall tax burden on goods. Introduction of GST would
also make Indian products competitive in the domestic and international markets.

GOODS AND SERVICE TAX IS IMPLEMEBDED ON 1ST JULY 2017.

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 fulfilment 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 AND DISADVANTAGES OF GST

ADVANTAGES DISADVANTAGES
• GST eliminates the • Increased costs due to
cascading effect of tax software purchase
• Higher threshold for • Being GST-compliant
registration • GST will mean an increase
• Composition scheme for in operational costs
small businesses • GST came into effect in the
• Simple and easy online middle of the financial year
procedure • GST is an online taxation
• The number of compliances system
is lesser • SMEs will have a higher tax
• Defined treatment for E- burden
commerce operators
• Improved efficiency of
logistics
• Unorganized sector is
regulated under GST
1.5: Tax subsumed in the GST
Following taxes, levied by different Governments,
were subsumed in the GST:

However, it is to be noted that following taxes are

not subsumed into the GST:
1.6: DUAL GST MODEL
Centre and states will impose tax on goods and services
simultaneously. In pre-GST regime which was origin base
taxation system, revenue will accrue to the State of Gujarat
Goods and Services Tax (GST) Laws 27 The Institute of Cost
Accountants of India

a. Intra-State supply of goods and services – CGST: Payable to Central

Government – SGST/ UTGST: Payable to State Government/ Union
Territory (as applicable) where they are consumed

b. Inter-States Supply of goods and services – IGST: Payable to

Central Government
1.7: IGST STRUCTURE
These are IGST rates, however where CGST and SGST/UTGST is
applicable (i.e., in case of intra-State supply) rate of IGST shall be
divided into 2 parts i.e., 50% of rate of IGST shall be treated as
rate of CGST and balance 50% shall be treated as SGST/UTGST.
E.g., where IGST rate of interstate supply of goods is 18% then if
such goods are supplied in the course of intra-State supply,
applicable CGST rate would be 9% (i.e., 50% of 18%) and
applicable SGST/UTGST rate would be 9% (i.e., 50% of 18%)
1.8: Goods and Services Tax Compensation Cess
Goods and Services Tax (Compensation to States) Act, 2017 was enacted to levy
Compensation cess for providing compensation to the States for the loss of
revenue arising on account of implementation of the goods and services tax
with effect from the date from which the provisions of the Central Goods and
Services Tax Act is brought into force (01/07/2017), for a period of five years or
for such period as may be prescribed on the recommendations of the GST
Council.

Taxable persons selling notified goods are liable to collect and

pay GST Cess. Notified goods are:
a. Pan masala.
b. Tobacco & tobacco product.
c. Cigarettes, cigar.
d. Coal, lignite.
e. Aerated water.
f. Motor-cars.
(1) . CONCEPTUAL
FRAMEWORK.

IMPACT OF GST
ON VARIOUS
SECTORS.
 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.
Import and Export :
Import will be treated as inter-States supply and IGST will
be chargeable along with basic Customs duty. However, in
GST Export will be treated as Zero rated supplies and no
IGST is payable.

Rates of GST :
The rates of GST are:
PARTICULARS RATES(%)
GST RATES 5%,12%,18%,28%.
GOLD/ARTIFICIAL 3%.
ORNAMENTS
RAW & UNCUT 0.25%.
DIAMOND
MAXIMUM RATE 28%.

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.

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
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.

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.
LEVY &
COLLECTION
OF CGST &
IGST.
Application of CGST/ IGST Law
A. INTRA-STATE SUPPLY
Centre and States will simultaneously levy GST on every supply of goods or services or both which takes place within
a State or Union territory. Thus, there shall be two components of GST as under:

a. Central tax (CGST): (levied & collected under the authority of CGST
Act, 2017 passed by the Parliament)
b. State tax (SGST) (levied & collected under the authority of SGST
Act, 2017 passed by respective State)
B. Inter-State Supply
Centre will levy Integrated Goods and Services Tax (IGST) on every supply of goods or services or both. However, the
levy shall be shared equally between Central and respective State Government.

IGST rate = CGST rate + SGST rate

A brief note to determine nature of supply are as under :

Supply [Sec. 7(1)]

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.
 Import of service for consideration whether or
not in the course or furtherance of business
[Sec. 7(1)(b)]
The word ‘supply’ includes import of a service (not goods), made for a
consideration and whether or not in the course or in furtherance of
business. This implies that import of paid services even for personal
consumption would qualify as ‘supply’ and, therefore, would be liable
to tax.
Charge of Tax including Reverse Charge
Article 265 of the Constitution of India mandates that no tax shall be
levied or collected except by the authority of law. The charging section
is a must in any tax law for levy and collection of tax. Before imposing
any tax, it must be shown that the transaction falls within the ambit of
the taxable event and that the person on whom the tax is so imposed
also gets covered within the scope and ambit of the charging section.
The scope of the taxable event being ‘supply’ has been discussed in the
earlier Chapter. This chapter will provide an insight into the
chargeability of tax on a supply. Sec.910 is the charging provision of the
CGST Act. It provides the maximum rate of tax that can be levied on
supplies leviable to tax under this law, the manner of collection of tax
and the person responsible for paying such tax. There are four aspects
of levy viz taxable event, tax rate, collection or levy, and the person
liable to pay. Sec. 9 of the CGST Act covers all these aspects.
 Goods Exempt from Tax
Vide Notification No. 02/2017-CT (Rates) dated 28/06/2017 (as
amended from time to time) has provided a list of almost 150 items
which are exempt from GST. Few of the most common goods which are
as under:
INPUT
TAX
CREDIT.
BUSINESS:
SEC TERM DEFINATION
2(17) BUSINESS Business includes –
i. any trade, commerce, manufacture, profession,
vocation, adventure, wager or any other similar activity,
whether or not it is for a pecuniary benefit;
ii. any activity or transaction in connection with or
incidental or ancillary to subclause (a);
iii. any activity or transaction in the nature of sub-clause
(a), whether or not there is volume, frequency,
continuity or regularity of such transaction;
iv. supply or acquisition of goods including capital goods
and services in connection with commencement or
closure of business;
v. provision by a club, association, society, or any such
body (for a subscription or any other consideration) of
the facilities or benefits to its members;
vi. admission, for a consideration, of persons to any
premises;
vii. services supplied by a person as the holder of an
office which has been accepted by him in the course or
furtherance of his trade, profession or vocation;
viii. activities of a race club including by way of
totalisator or a license to book maker or activities of a
licensed book maker in such club; and
ix. any activity or transaction undertaken by the Central
Government, a State Government or any local authority
in which they are engaged as public authorities;
2(19) CAPITAL Capital goods means goods, the value of which is
GOODS capitalised in the books of account of the person
claiming the input tax credit and which are used or
intended to be used in the course or furtherance of
business
INPUT TAX CREDIT
SEC TERM DEFINATION
2(59) Input Input means any goods other than capital goods used or intended to be used by
a supplier in the course or furtherance of business;
2(60) Input Input service means any service used or intended to be used by a
service supplier in the course or furtherance of business;
2(61) Input Input Service Distributor means an office of the supplier of goods or services or
Service both which receives tax invoices issued under section 31 towards the receipt of
Distributor input services and issues a prescribed document for the purposes of distributing
the credit of central tax, State tax, integrated tax or Union territory tax paid on
the said services to a supplier of taxable goods or services or both having the
same Permanent Account Number as that of the said office;
2(62) Input tax Input tax in relation to a registered person, means the central tax, State tax,
integrated tax or Union territory tax charged on any supply of goods or services
or both made to him and includesa. the integrated goods and services tax
charged on import of goods; b. the tax payable under the provisions of sec. 9(3)
and (4) [i.e., reverse charge]; c. the tax payable under the provisions of sec. 5(3)
and (4) of the Integrated Goods and Services Tax Act; d. the tax payable under
the provisions of sec. 9(3) and (4) of the respective State Goods and Services Tax
Act; or e. the tax payable under the provisions of sec. 7(3) and (4) of the Union
Territory Goods and Services Tax Act, but does not include the tax paid under
the composition levy;
2(63) Input tax Input tax credit means the credit of input tax
credit
2(66) invoice or Invoice” or “tax invoice” means the tax invoice referred to in section 31;
tax invoice
2(67) Inward Inward supply in relation to a person, shall mean receipt of goods or services or
supply both whether by purchase, acquisition or any other means with or without
consideration;
2(92) Quarter Quarter shall mean a period comprising three consecutive calendar months,
ending on the last day of March, June, September and December of a calendar
year;
2(93) Recipient Recipient of supply of goods or services or both, meansa. where a consideration
is payable for the supply of goods or services or both, the person who is liable to
pay that consideration; b. where no consideration is payable for the supply of
goods, the person to whom the goods are delivered or made available, or to
whom possession or use of the goods is given or made available; and c. where
no consideration is payable for the supply of a service, the person to whom the
service is rendered, and any reference to a person to whom a supply is made
shall be construed as a reference to the recipient of the supply and shall include
an agent acting as such on behalf of the recipient in relation to the goods or
services or both supplied
INPUT BASED ITC COLLECTION:
 Manner of determination of input tax credit
in respect of capital goods and reversal
thereof in certain cases [Rule 43]
INTERNATIONAL
GST SCENERIO.
GST was first levied by France in 1954. Today, Malaysia is the
most recent country to join the bandwagon. In countries where
GST has been adopted, manufacturers, wholesalers, retailers
and service providers charge GST at the specified rate on price
of the goods and services from consumers and claim input
credits for GST paid by them on procurement of goods and
services (raw material).
Globally, the broad principles of GST are as under:
▪ GST is a broad-based tax
▪ GST is a destination-based tax
▪ GST is technically paid by suppliers but it is actually
funded by consumers
▪ GST is collected through a staged process i.e. a tax on
the value added to goods or services at every point in
the supply chain
▪ GST is a tax on the consumption of products from
business sources, and not on personal or hobby
activities
▪ Under GST, input tax credit is provided throughout the
value chain for creditable acquisition.
NATIONAL
SCENERIO
OF
GST.
Impact on Businesses:

The pricing for businesses has undergone significant changes due

to implementation of GST. With varying tax rates applied to
different goods and services, businesses have been compelled to
revise their pricing strategies to align with the updated tax
framework.

Boost to Organized Sector:

The implementation of GST incentivized the formalization of the

economy, as businesses were required to register and comply
with tax regulations. This shift from the informal to the formal
sector contributed to increased transparency, accountability, and
tax revenues.

Price Stability:

GST aimed to rationalize prices by eliminating the tax-on-tax

system prevalent in the pre-GST era. The single tax structure
reduced the overall tax burden on goods and services, leading to
price stability and, in some cases, even a reduction in prices for
consumers.

Boost to GDP Growth:

GST aimed to promote economic growth by fostering a conducive

business environment and reducing transaction costs. The
simplification of tax procedures, removal of inter-state barriers,
and promotion of the ease of doing business contributed to a
favorable climate for investment and entrepreneurship,
ultimately driving GDP growth.
Encouragement of Export:

GST introduced various export promotion schemes and incentives

to boost the competitiveness of Indian exports in the global
market. The availability of input tax credit and quicker refund
mechanisms under GST facilitated exports, contributing to foreign
exchange earnings and economic development.
PRESENTATION
OF DATA,
ANALYSIS AND
FINDINGS.
DATA ANALYSIS OF GST STRUCTURE OF DELOITTE
The aim of the study is to understand the GST journey so far and help
organisations prepare for the future
The study focuses on assessing the impact of gst across sectors as we
complete five years of the new tax regime. Organisations may use these
insights as guidance to plan their future course of action.
Methodolody
To understand how the tax journey of organisation will involve in the
future primary research involving an online survey of 234 CXO and CXO
1 level individuals was done.
The survey involving live users was undertaken over a four week.
EXECUTIVE SUMMARY
CONCLUSION
&
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 favour 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.
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.
BIBLIOGRAPHY
BIBLIOGRAPHY
For successfully Completing my project file. I have taken help
from the INDIRECT TAXATION TEXT BOOK of “INSTITUTE OF
COST MANAGEMENT ACCOUNTANT”
I have also taken the help of the following website:
• www.cbic.gov.in
• taxinformation.cbic.gov.in
• cbic-gst.gov.in

My supervisor “Miss Nandani Mitra” also guided to

complete my project work.