GOODS AND SERVICE TAX (GST)

CHAPTER I: INTRODUCTION OF STUDY

1.1INTRODUCTION:

Goods and service tax is taking India by the storm. GST will bring in
“One nation one tax” to unite indirect taxes under one umbrella and
facilitate Indian businesses to be globally competitive. The Indian GST
case is structured for efficient tax collection, reduction in corruption, easy
inter-state movement of goods etc.

France was the first country to implement GST to reduce tax- evasion.

Since then, more than 140 countries have implemented GST with some
countries having Dual-GST (e.g. Brazil, Canada etc.) model. India has
chosen the Canadian model of dual GST.

GST is applicable in different countries like India, Canada, United

Kingdom, Singapore, and Malaysia. GST have different names in
different countries like in India GST is known as Goods and Services Tax
in Canada it is called as Federal Goods and Services Tax and Harmonized
Sales Tax in UK it is called as Value Added Tax in Singapore and
Malaysia it is called as Goods and Services Tax.

The standard rates are also different in different countries like in India the
standard rates are 0%, 5%, 12%, 18%, 28% in Canada the rates differ like
GST is 5% and HST is from 0% to 15% in Malaysia the rate of GST is
6% likewise the rate differ from country to country .

Like the rates the threshold limits are also different in different countries
to file GST returns like in India the threshold limit is 20 lakhs in Canada
the limit is Canadian $30000 (approx Rs. 15.6 lakhs in INR) likewise in
Singapore the limit is Singapore $1 million (Approx Rs. 4.8 crore)

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The filling of returns is also different in different countries like in India

you have to file the returns on monthly basis in Canada you have to file
returns on Monthly, quarterly or annually based on turnover likewise in
United Kingdom you have to file the returns on Usually quarterly. Small
business option- annual and in Singapore you have to file the returns
usually on quarterly Business option- Monthly returns and in Malaysia
you have to file the returns on monthly basis (particularly for large
organization).

Canada introduced GST in the form of a multi-level VAT in 1991 on

supplies of goods and services purchased in the country – included almost
all products except certain essentials like groceries, residential rent and
medical services.

Singapore introduced the bill in April 1194 at a tax rate of 3% to make it

acceptable to the public and to minimize inflation. The government
committed not to raise tax for next 5 years which came in as a important
decision in reviving consumer spending.

GST in this country has been imposed in the year 2015, after a 26 years
of debate over its potential merits and shortcomings. It was introduced at
a standard rate of 6% - which is relatively low compared to VAT rates in
other ASEAN countries.( Association of Southeast Asian Nations)

Indian government has structured GST for efficient tax collection;

reduction in corruption, easy inter-state movement of goods etc. India
does not follow an ideal VAT. Central sales tax which the central
imposed on the sale of goods from one state to another will continue in
the different form called Integrated GST. One big differentiation between

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GST in India and GST in other countries is that, in India two types of
GST is charged - hence called as duel GST.

Explaining the impact of GST, analysts at Care Ratings cited few reasons.
Firstly the impact of GST on price levels is difficult to ascertain as there
are various factors other than tax rates that drive price levels. Main issue
in GST is tax evasion arising out of small businesses not
registering, under-reporting of actual sales by traders; traders collecting
tax but not remitting to the government; and traders making false claims
for refunds.

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CHAPTER II: COMPANY PROFILE

2.1. Industrial Profile

The service industries (More formally termed: 'tertiary sector of industry'

by economists) involve the provision of services to businesses as well as final
consumers. Such services include accounting, tradesman ship (like mechanic or
plumber services), computer services, restaurants, tourism, etc. Hence, a service
Industry is one where no goods are produced whereas primary industries are
those that extract minerals, oil etc. from the ground and secondary industries are
those that manufacture products, including builders, but not remodeling
contractors.

2.2 Details of Company

1. Name of the company: R.F DAYMA AND ASSOCIATES.

2. Address: S/7 royal Ganga mauli complex shripad nagar, Ichalkaranji-

416115.

3. Profession: Practicing Chartered Accountant.

4. Status: Proprietor.

5. Established: The Company was established in the year 2008.

6. Contact No.: 9422046428.

7. E-mail: ca.rameshdayma@gmail.com

8. Experience: Over 8 years of experience in the field of Taxation,

Auditing.

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 GOODS AND SERVICE TAX (GST)

9. Activities carried on: The Company is engaged which are related to

the taxation, audit, and law.

10. Audit:

1. Internal Audit

2. GST audit

11. Taxation:

1. Filing Income tax returns

2. Filing GST returns

12. Registration: The firm was registered with ICAI in the year 2008.

13. No. of Employees: 6 Employees.

14. Clients of Company:

1. Biyani group of textile, Ichalkaranji

2. Ganesh industry, Ichalkaranji

3. Varadhvinayak textiles, Ichalkaranji

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15. Organizational structure:

Proprietor

Head Of Income Head Of Gst

Tax Department Department

Auditing Filling GSTR3B

Filling IT Return Filling GSTR1

16. Infrastructure and facilities:

Well decorated and maintained premises, with different facilities like

drinking water, laptops, chairs and table etc.

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CHAPTER III: THEORETICAL BACKGROUND

3.1. INTRODUCTION:

Tax means a fee which is charges by the government on the INCOME of an

individual or a company or firms etc., on the PRODUCTS, and on any
OTHER ACTIVITY. The tax which is imposed directly on the income of
the individual or the company is known as Direct tax. And if the tax is
imposed on the goods and the services which the person buys is known as
Indirect tax.

The motive behind imposing the tax on the individual or companies or firms
is to finance the government. One of the best use of this finance is street
cleaning, street lighting.

3.2. HISTORY OF TAXATION IN INDIA:

The concept of taxation in India came in force from the period of Manu
Smirti and Arthasastra. Today tax system is based on the old tax system
which was more focused on the social welfare.

From the point of view of Kalidas in Raghuvansh eulogizing KING

DALIP taxation is:

"It was only for the good of his subjects that he collected taxes from them,
just as the Sun draws moisture from the Earth to give it back a thousand
fold"

The word tax is originated from the word taxation which mean estimate.
Manu Smirti and arthasastra include variety of taxes. According to Manu
Smirti, the king should arrange the collection of tax in such a manner that the
tax payer should not feel that it is a burden on him. So for this different rate
where decided like for the trader it was decided that they have to pay 1/5 th
amount of their income in the form of silver and gold the same was decided

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for the artisans. And for the agriculturist it was decided that he has to pay
1/6th, 1/8th, and 1/10th of their produces depending on their income from
agriculture.

Kautilya has also described in great detail the system of tax administration

in the Mauryan Empire. It is remarkable that the present day tax system is in
many ways similar to the system of taxation in vogue about 2300 years
ago.

In Arthasastra it was said that each and every tax was specific and there
was no scope for any alteration in it. Tax collectors have already decided
the schedule to pay the tax, and the time to pay tax, and the manner and
quantity to pay tax.

Kautilya also laid down that during war or emergencies like famine or
floods, etc. the taxation system should be made more stringent and the king
could also raise war loans. The land revenue could be raised from 1/6th to
1/4th during the emergencies. The people engaged in commerce were to pay
big donations to war efforts.

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3.3. TYPE OF TAX IN INDIA:

Tax

Direct Tax Indirect Tax

Income Tax Sales Tax

VAT(Value
Gift Tax
Added Tax)

Corporate
Excise
Tax

GST(Goods &
Service Tax)

1. Direct Tax:

The tax which is imposed directly on the income of the individual or the
company is known as Direct tax.

Income Tax:

In India, Constitution is the parent law. All other law should be enacted
without exceeding the framework of the constitution and subject to the
norms laid down therein. The constitution of India empowers the central
government to levy tax on income. By virtue of this power and to achieve
this objective the Income-tax Act, 1961 was enacted in the place of Income-
tax Act 1922.

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Income tax is charged by the central government on the income which is

earned by the individuals, companies, firms. There are different slab rates for
the different income group.
 Slab Rates to pay Income Tax:
 What is slab rate?
In India, tax on one's income is charged in a manner that as the taxpayer's
income increases, he is required to contribute more portion of his earned
income in the form of taxes to the government, who is supposed to use those
funds accumulated from collection of taxes from the taxpayers for the
betterment of the public at large.
In India, there are different slab rate for different group of income, as the
income increases the rate of tax increases and vice versa. In India, the burden
to pay the tax is more on the individual as compared to companies.
There are mainly three categories for the individual taxpayer:
1) Individuals below the age of 60 years (includes residents and non-resident
also)
2) Senior citizens of age group above 60 years and below 80 years(Resident
only)
3) Super senior citizen who are above 80 years of age(Resident only)

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Table 3.1. Income Tax Slabs for Individual Tax Payers & HUF (Less
Than 60 Years Old)

Income tax slabs Tax rate Health and education

cess
Income up to Rs. No Tax -
250000
Income from Rs 5% 4% of Income Tax
2,50,000 – Rs
5,00,000

Income from Rs 20% 4% of Income Tax

5,00,000 – Rs
10,00,000

Income more than Rs 30% 4% of Income Tax

10,00,000

Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh up to
Rs.1 crore.

Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore.

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Table 3.2. Income Tax Slabs for Senior Citizens (60 Years Old Or More
but Less than 80 Years Old)

Income tax slabs Tax rate Health and

education cess
Income up to Rs No Tax -
3,00,000*

Income from Rs 5% 4% of Income Tax

3,00,000 – Rs
5,00,000

20% 4% of Income Tax

Income from Rs
5,00,000 –
10,00,000

Income more than 30% 4% of Income Tax

Rs 10,00,000
Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh up to
Rs.1 crore.

Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore.

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Table 3.3. Income Tax Slabs for Senior Citizens(80 Years Old Or More)

Income tax slabs Tax rate Health and

education cess
Income up to Rs No tax
5,00,000
Income from Rs 20% 4% of Income Tax
5,00,000 – 10,00,000
Income more than Rs 30% 4% of Income Tax
10,00,000

Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh up to
Rs.1 crore.

Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore.

Corporate Tax :

Corporate tax is the tax which is charged on the domestic corporate. Like
Income tax it does not have different rates of percentages for different
income group it has a flat rate which is charged for the income of a particular
period.

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Table 3.4

Turnover particulars Tax rate

Gross turnover up to 250 Cr. in the previous year 25%
Gross turnover exceeding 250 Cr. in the previous 29%
year

In addition cess and surcharge is levied as follows: Cess: 4% of corporate tax

Surcharge: Taxable income is more than 1Cr. but less than 10Cr. 7%
Taxable income is more than 10Cr:12%

2. Indirect Tax

Sales Tax

Sale tax is the type of indirect tax which is paid to the government for the
sales of goods and services. Sale tax is charged in percentage. When
someone purchases goods he needs to pay sales tax. In short, sales tax is the
extra money which one has to pay on purchase of goods and services.

Value Added Tax(VAT)

Every commodity passes through different stages of production and

distribution before finally reaching the consumer. Some value is added at
each stage of the production and distribution chain: for instance, a forged
metal tool is more valuable than metal, which was itself more valuable than
the ore that was originally mined. Value Added Tax (VAT) is a tax on this
value addition at each stage.

Under a VAT system, a dealer collects tax on his sales, retains the tax paid
on his purchase and pays the balance to the government. It is a consumption
tax, because it is borne ultimately by the final consumer. The tax paid by the
dealer is passed on to the buyer. It is not a charge on the dealer. VAT is

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instead a multipoint tax system with provision for collection of tax paid on
purchases at each point of sale.

Excise

An excise or excise tax (sometimes called an excise duty) is a type of tax

charged on goods produced within the country (as opposed to customs
duties, charged on goods from outside the country). It is a tax on the
production or sale of a good. This tax is now known as the Central Value
Added Tax (CENVAT).

Though the collection of tax is to augment as much revenue as possible to

the government to provide public services, over the years it has been used as
an instrument of fiscal policy to stimulate economic growth. Thus it is one of
the socio-economic objectives

Goods and Service Tax(GST)

The Goods and Service Tax or GST which is how it is popularly called

world over was first introduced in France in the year 1954. It was
consequently after France that countries like Japan, South Korea, UK and
Australia implemented the GST law.

GST is an indirect tax which has replace various indirect tax in india. Goods
and service tax act was passed by the parliament on 29 th march 2017 in india.
The act came into force on 1 st july 2017. Goods and service is the tax which
is imposed on the sales of goods and services.

Goods and service tax means a tax on supply of goods or services, or both,
except taxes on supply of alcoholic liquor for human consumption. Goods
and services tax will be on supply of goods and services or both in India
except Jammu and Kashmir.

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3.4. HISTORY OF GOODS AND SERVICES TAX:

Several countries have already established the Goods and Services Tax. In
Australia, the system was introduced in 2000 to replace the Federal
Wholesale Tax. GST was implemented in New Zealand in 1986. A hidden
Manufacturer’s Sales Tax was replaced by GST in Canada, in the year 1991.
In Singapore, GST was implemented in 1994. GST is a value-added tax in
Malaysia that came into effect in 2015.

1. 2000- In india the idea of gst was first adopted and suggested by atal
bihari Vajpayee government in the year 2000. the state finance
minister created the committee and the structure for gst.

2. The committee was headed by Asim Dasgupta, the finance minister of

West Bengal. Dasgupta chaired the committee till 2011.

3. 2004- A task force that was headed by Vijay L. Kelkar the advisor to
the finance ministry, indicated that the existing tax structure had many
issues that would be mitigated by the GST system.

4. 2005- The finance minister, P. Chidambaram, said that the medium-

to-long term goal of the government was to implement a uniform GST
structure across the country, covering the whole production-
distribution chain.

5. This was discussed in the budget session for the financial year 2005-
06.

6. 2006- The finance minister set 1 April 2010 as the GST introduction
date.

7. 2007- The 1 April 2010 deadline for GST implementation was

retained in the union budget for 2007-08.

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8. 2008- Finance minister confirmed that considerable progress was

being made in the preparation of the roadmap for GST.

9. The targeted timeline for the implementation was confirmed to be 1

April 2010.

10.2009- The EC that was headed by Asim Dasgupta put forth the First
Discussion Paper (FDP) , describing the proposed GST regime.

11.The paper was expected to start a debate that would generate further
inputs from stakeholders.

12.2010- The government introduced the mission-mode project that laid

the foundation for GST. This project, with a budgetary outlay of
Rs.1,133 crore, computerised commercial taxes in states. Following
this, the implementation of GST was pushed by one year.

13.2011- The government led by the Congress party puts forth the
Constitution (115th Amendment) Bill for the introduction of GST.
Following protest by the opposition party, the Bill was sent to a
standing committee for a detailed examination.

14.2012- P. Chidambaram and the finance ministers of states hold

meetings and set the deadline for resolution of issues as 31 December
2012.

15.2013- The report created by the standing committee is submitted to the

parliament. The panel approves the regulation with few amendments
to the provisions for the tax structure and the mechanism of resolution.

16.2014- India’s new finance minister, Arun Jaitley, submits the

Constitution (122nd Amendment) Bill, 2014 in the parliament.

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17.2015- The Lok Sabha passes the Constitution Amendment Bill. But
The Bill is not passed in the Rajya Sabha.

18.2016- Jaitley says that he is in agreement with the Congress’s demand

for the GST rate not to be set above 18%. But he is not inclined to fix
the rate at 18%. In the future if the

Government, in an unforeseen emergency, is required to raise the tax

rate, it would have to take the permission of the parliament. So, a
fixed rate of tax is ruled out.

19.The Ministry of Finance releases the draft model law on GST to the
public, expecting suggestions and views.

20.The Congress-led opposition finally agrees to the Government’s

proposal on the four broad amendments to the Bill. The Bill was
passed in the Rajya Sabha.

21.The Honourable President of India gives his consent for the

Constitution Amendment Bill to become an Act.

22.2017- Four Bills related to GST become Act, following approval in

the parliament and the President’s assent: CGST, SGST, UTGST,
IGST.

3.5. PURPOSE OF CHARGING GST:

The purpose of  introducing GST is  because current

indirect taxation structure of India is full of uncertainties due to
multiple rates where multiple rates we mean by is,  such as, at state level 
we have VAT (Value Added Tax), at center level we have ST (Sales Tax),
CD (Custom  Duty) , ED (Excise Duty) and  many more where all these
taxes carry different rates and the more the number of rates, more the
number of forms which make it more cumbersome so all these taxes will be

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abolished and only one tax system will be introduced which is GST because
it will rule out the problem of multiplicity of rates. GST has replaced all the
indirect taxes i.e. GST is a single umbrella tax rate. GST has all removed the
cascading effect. GST will transform Indian economy turning it into one
common market based on a uniform taxation system.

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3.6. TYPE OF GST IN INDIA:

GST

Intra- Inter-
State State

CGST SGST IGST

1. CGST
CGST (Central Goods and Service Tax) is charged by the central
government on the goods and services which are transacted within the state
i.e. intra state. CGST is one of the type of tax which is charged with in the
state (other are SGST and UTGST). CGST has replaced all the central taxes
like service tax, central excise duty, custom duty, etc. The rate of SGST and
CGST are usually same. They are charged on the base price of product.
2. SGST

SGST (State Goods and Service Tax) is one the tax which is charged on the
transaction of

goods and services within the state. SGST has replaced all the state taxes like
VAT, Entertainment Tax, Entry Tax, etc. The state government is the sole
claimer of all the revenue which is earned under SGST.

3. IGST

IGST(Integrated Goods and Service Tax) is applicable on the transaction

where the goods and services are transacted inter-state (between two states)

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and as well as on import. IGST is collected by the central government and

then distributed to the respective state.

4. UTGST

UTGST (Union Territory Goods and Services tax) is applicable on the goods
and services which are transacted in any of the 5 territory of India. These 5
territories include Andaman and Nicobar, Dadra and Nagar Haveli,
Chandigarh, Lakshadweep and Daman and Diu. The reason why a separate
GST was implemented for the Union Territories is that the common State
GST (SGST) cannot be applied in a Union Territory without legislature.
Delhi and Pondicherry UTs already have their own legislatures, so SGST is
applicable to them

3.7. SLAB RATES OF GST IN INDIA:

The government has categorized items in five major slabs - 0%, 5%, 12%,
18% and 28%. 

Here is the list of goods and services taxed under various GST slabs:
1. Exempted- Food Grain, Gur, Milk, Eggs, Curd, Unpacked Paneer,
Natural Honey, Fresh Vegetables, Atta, Besan, Maida, Vegetable Oil,
Prasad, Common Salt, Cane Jaggery

2. 5%- Sugar, Tea, Coffee, Edible Oil, Coal, Milk Powder, Milk Food For
Babies, Condensed Milk, Packed Paneer, Newsprints, Umbrella, PDS
Kerosene, Chalk

3. 12%- Butter, Ghee, Mobiles, Cashew, Almond, Sausages, Fruit Juice,

Packed Coconut, Water, Agarbatti, Bio-gas,

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4. 18%- Hair Oil, Soap, Toothpaste, Capital Goods, Pasta Corn Flakes,jams,
Soups, Ice Creame, Toilet And Facial Tissues, Iron And Steel, Fountain
Pen, Chlorine, Artificial Waxes

5. 28%- Consumer Durables, Cars, Cements, Chewing Gum, Custard

Powder, Pan Masala, Perfume, Shampoo, Make Up, Firework,
Motorcycles, Hair Cream, Hair Dyes

3.8. SILENT FEATURES OF GST:

The salient features of GST are as under:

1. GST would be applicable on sale of goods and services as against the

present concept of tax on the manufacture of goods.
2. GST would be destination based tax as against the present concept of
origin based tax.
3. It would be a dual GST. The GST levied by the Centre would be called
Central GST (CGST) and that to be levied by the states would be called
State GST (SGST).
4. An Integrated GST (IGST) would be levied on inter-state supply of goods
or services. This would be collected by the centre.
5. Import of goods or services would be treated as inter-state supplies and
would be subject to IGST in addition to applicable custom duties.
6. GST would replace the following taxes currently levied and collected by
the Centre:
a) Central Excise Duty (including additional Duties of Excise)
b) Service Tax
c) CVD (levied on imports in lieu of Excise Duty)
d) SACD (levied on imports in lieu of VAT)
e) Central Sales Tax (CST)

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f) Excise Duty levied on Medicinal & Toiletries preparations.

g) Surcharges and cesses.
7. State taxes that would be subsumed within GST are:
a) VAT/ Sales Tax
b) Entertainment Tax
c) Luxury Tax
d) Taxes on Lottery, betting and gambling.
e) Surcharges & Cess
8. GST would apply to all goods & services except Alcohol for human
consumption, Electricity and Real Estate.
9. The list of exempted goods & services would be kept to a minimum and
would be harmonized for the Centre and States as far as possible.
10.The credit would be permitted to be utilized in the following manner:
a) ITC of CGST allowed for payment of CGST & IGST in that order.
b) ITC of SGST allowed for payment of SGST & IGST in that order.
c) ITC of IGST allowed for payment of IGST, CGST & SGST in that
order.
11.A common threshold exemption would apply to both CGST and SGST.
Taxpayers with an annual turnover of Rs. 20 lakh (Rs. 10 lakh for special
category States (except J&K) as specified in article 279A of the
Constitution) would be exempt from GST. A compounding option (i.e. to
pay tax at a flat rate without credits) would be available to small taxpayers
(including to manufacturers other than specified category of manufacturers
and service providers) having an annual turnover of up to Rs. 75 lakh (Rs.
50 lakh for special category States (except J&K and Uttarakhand)
enumerated in article 279A of the Constitution). The threshold exemption
and compounding scheme would be optional.

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3.9. BENEFITS OF GST:

GST will bring numerous benefits to all stakeholders viz industries,

government and citizens. Some of these benefits are listed below:

1. Seamless Flow of Credit: GST will facilitate seamless credit across the

entire supply chain and across all States under a common tax base.
2. Elimination of Cascading effect: Goods & Service Tax would eliminate
the cascading effects of taxes on production and distribution cost of
goods and services. The exclusion of cascading effects i.e. tax on tax will
significantly improve the competitiveness of original goods and services
in market will lead to beneficial impact to the GDP growth of the country.
It is felt that GST would serve a superior reason to achieve the objective
of streamlining indirect tax regime in India which can remove cascading
effects in supply chain till the level of final consumers.

1. Revenue Gain: Revenue will increase under GST regime because of

widening of the dealer base by capturing value addition in the distributive
trade and increased compliance.
2. Enhanced Transparency: GST regime shall enhance transparency in the
indirect tax framework and is expected to bring down the rate of inflation.
3. Zero rated Exports: Under the GST regime, exports will be zero rated in
entirety unlike the present system where refund of some taxes is not
allowed due to fragmented nature of indirect taxes between the Centre
and the States. All taxes paid on the goods or services exported or on the
inputs or input services used in the supply of such export goods or
services shall be refunded.

GST will boost Indian exports, thereby improving the balance of

payments position. Exporters will be facilitated by grant of provisional

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refund of 90% of their claims within seven days of issue of

acknowledgement of their application, thereby resulting in the easing of
position with respect to cash flows.

4. Increased Uniformity: Uniform GST rates will reduce the incentive for

evasion by eliminating rate arbitrage between neighboring States and that
between intra and inter-State sales. Harmonization of laws, procedures
and rates of tax will make compliance easier and simple.
5. There would be common definitions, common forms/formats, and
common interface through GST portal, resulting in efficiencies and
synergies across the board. This will also remove multiple taxation of
same transactions and inter-State disputes like the ones on entry tax and
e-commerce taxation existing today.
6. Increased Certainty: Common procedures for registration of taxpayers,
refund of taxes, uniform formats of tax return, common tax base,
common system of classification of goods or services along with
timelines for every activity will lend greater certainty to taxation system.
7. Increased Digitalization: GST is largely technology driven. The
interface of the taxpayer with the tax authorities will be through the
common portal (GSTN). There will be simplified and automated
procedures for various processes such as registration, returns, refunds, tax
payments, etc. All processes, be it applying for registration, filing of
returns, payment of taxes, filing of refund claims etc., would be done
online through GSTN. The input tax credit will be verified online.
Electronic matching of input tax credit across India will make the process
more transparent and accountable. This will encourage a culture of
compliance. This will also greatly reduce the human interface between
the taxpayer and the tax administration, leading to speedy decisions.

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8. Seamless Flow of Credit: GST will facilitate seamless credit across the

entire supply chain and across all States under a common tax base.
9. Elimination of Cascading effect: Goods & Service Tax would eliminate
the cascading effects of taxes on production and distribution cost of
goods and services. The exclusion of cascading effects i.e. tax on tax will
significantly improve the competitiveness of original goods and services
in market will lead to beneficial impact to the GDP growth of the country.
It is felt that GST would serve a superior reason to achieve the objective
of streamlining indirect tax regime in India which can remove cascading
effects in supply chain till the level of final consumers.

3.10. THE CURRENT CHALLENGES:

GST is meant to simplify the Indian indirect tax regime by replacing a host
of taxes by a single unified tax, thereby subsuming central excise, service
tax, VAT, entry tax, etc. However, there is a plethora of challenges before
the government for its successful implementation. Some of these are
highlighted below:

1. The GST Constitutional Amendment Bill was passed by the Lok Sabha in
May 2015. However, the government faced tremendous political set-
backs and failed to get it passed in the Rajya Sabha during the monsoon
and the winter sessions last year.
2. Once this is achieved, another Herculean task would be to get the GST
Bill passed by the respective state governments in state assemblies. The
government would also be required to put the GST bill in the public
domain and give sufficient time to all stakeholders to comprehend and
give their views on the bill.
3. A large part of the success of GST depends on two prominent factors –
‘RNR’ and ‘threshold limit’ for GST. RNR, ie the Revenue Neutral Rate,

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is the rate at which there will be no revenue loss to the government after
implementation of GST. Needless to mention, RNR will impact India Inc
adversely, if it is unduly higher than the present tax structure. Based on
the study conducted by National Institute of Public Finance and Policy
(NIPFP), RNR was decided at 27 percent. However, recently the
Economic Advisor Panel recommended an RNR of 15 percent  to 15.5
percent, ie a lower tax rate of 12 percent and a standard tax rate of 17
percent to 19 percent.
4. Further, the threshold limit of turnover for dealers under GST is another
bone of contention between the government and the Empowered
Committee, aiming to broaden the tax base under GST.
5. Another factor that will impact the success of GST is the robust IT
backbone connecting all state governments, trade and industry, banks and
other stakeholders on a real-time basis. The government has already
incorporated an SPV viz. – Goods and Services Tax Network (GSTN),
which has to develop a GST portal – front-end system for trade and
industry and back-end system for all government agencies. GSTN will
ensure technology support for registration, return filing, tax payment,
IGST settlement, MIS and other dashboards on GST portal to all the
stakeholders.
6. GST is quite different from the existing indirect taxation system in the
country. For effective implementation of GST, tax administration staff –
both at central and state levels – would require to be trained properly in
terms of concept, legislation and procedure. The tax administration staff
would also need to change their mindset, approach and attitude towards
the tax payers. And for this, they would have to ‘learn, unlearn, and
relearn’ the GST not only in letter but in spirit too.
7. As per the Constitutional Amendment Bill placed in the Lok Sabha, it
was proposed that states would be allowed to levy an additional 1 percent

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non-vatable tax on inter-state supply of goods for the initial two years, in
order to compensate the states for loss of revenue while moving to GST.
This was supported by a few states, while a few others criticised the
same. However, recently the Empowered Committee recommended
abolition of the additional tax. There is no clarity on the same yet.
8. The taxing events of ‘manufacture under central excise’, ‘sale under
VAT’ and ‘provision of service under service tax’ will converge into one
taxing event of ‘supply’ under GST, ie GST will be levied on the event of
supply of goods or services. The ‘Place of Supply Rules’ will thus form
an important factor to determine the place of provision of goods or
services.
9. These are some of the major challenges before the government and the
industry, ahead of the actual implementation of GST.

3.11. PROCESS OF FILLING GST RETURNS:

1. Filling Process of GSTR1:
As per the guidelines set by the GST Council, a registered taxable person
is to follow a standard return filing process, involving 3 forms – outward
supplies details in GSTR 1 form by 10th of the following month. Based
on the latest recommendations, the due dates for GSTR-1 have been
specified, based on the turnover. While businesses with turnover of up to
INR 1.5 crore will file quarterly returns, other businesses with turnover of
above INR 1.5 crore have to file monthly returns.

For Turnover up to INR 1.5 Crore

Form GSTR-1 will need to be filed quarterly as follows:

July to September 2017 – 31st December, 2017
October to December 2017 – 15th February, 2018
January to March – 30th April, 2018

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For Turnover over INR 1.5 Crore

Form GSTR-1 will need to be filed monthly as follows:

July to October 2017 – 31st December, 2017 (for all 4 months)
November 2017 – 10th January, 2018
December 2017 – 10th February, 2018
January 2018 – 10th March, 2018
February 2018 – 10th April, 2018
March 2018 – 10th May, 2018

What is GSTR-1 Form?

Form GSTR-1 is a statement in which a regular dealer needs to capture

all the outward supplies made during the month. Broadly, the GSTR 1
format requires - all the outward supplies made to registered businesses
(B2B) to be captured at invoice level, and supplies made to unregistered
business or end consumers to be captured at rate-wise level. However, in
certain exceptional scenarios, even B2C transactions are required to be
captured at invoice level.

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How to file GSTR-1 Form?

Form GSTR-1 contains 13 tables in which the outward supplies details

needs to be captured. Based on the nature of business and the nature of
supplies effected during the month, only the relevant tables are
applicable, not all. The GSTR-1 format is as follows:

 Table 1, 2 & 3: Details of GSTIN and aggregate turnover in preceding

year.
 Table 4: Taxable outward supplies made to registered persons (including
UIN-holders) other than Zero rated supplies and Deemed Exports.
 Table 5: Taxable outward inter-State supplies to un-registered persons
where the invoice value is more than INR 2.5 Lakh.
 Table 6: Details of Zero rate supplies and Deemed Exports.
 Table 7: Details of Taxable supplies (Net of debit notes and credit notes)
to unregistered persons other than the supplies covered in Table 5.
 Table 8: Details of Nil rated, exempted and non GST outward supplies.
 Table 9: Details of debit notes, credit notes, refund vouchers issued
during current period and any amendments to taxable outward supply
details furnished in the GSTR1 returns for earlier tax periods in Table 4, 5
& 6.
 Table 10: Details of debit note and credit note issued to unregistered
person.
 Table 11: Details of Advances Received/Advance adjusted in the current
tax period or Amendments of information furnished in earlier tax period.
 Table 12: HSN-wise summary of outward supplies.
 Table 13: Documents issued during the tax period.

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2. Filling Process of GSTR 3B:

Step 1 – Login to GST Portal.

Step 2 – Go to ‘Services’ > ‘Returns’ > ‘Returns Dashboard’.

Step 3 – This displays the ‘File Returns’ page. Select the ‘Financial Year’ &
‘Return Filing Period’ for which you want to file the return from the drop-down
list. Click the ‘SEARCH’ button.

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Step 4 – On ‘Monthly Return GSTR-3B’ tile, click the ‘PREPARE ONLINE’
button.

Step 5 – Enter values in each tile. You need to enter totals under each head. Fill
in Interest and Late Fees, if applicable.

Step 6 – Click the ‘SAVE GSTR-3B’ button at the bottom of the page after all
details are added. A success message is displayed on the top of the page.

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Step 7 – Once all the details are saved, ‘SUBMIT’ button at the bottom of the
page is enabled. Click the ‘SUBMIT’ button to submit the finalized GSTR-3B
return.

A success message is displayed at the top of the page. Once you submit the
form, the added data is frozen. No changes in any fields can be made after this.
The ITC and Liability ledger will also get updated on submission.

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Status of the GSRT- 3B will be changed to ‘Submitted’.

Step 8 – Scroll down the page. You will see that the ‘Payment of Tax’ tile is
enabled after successful submission of the return.

To pay the taxes and offset the liability, perform the following steps:

 Click the ‘Payment of Tax’ tile.

 Tax liabilities as declared in the return along with the credits, get updated
in the ledgers, and are reflected in the ‘Tax payable’ column of the
payment section. Credits get updated in the credit ledger and the updated
balance is seen when hovering on the specific headings in the payment
section.

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 Click the ‘CHECK BALANCE’ button to view the balance of cash and
credit. This functionality enables the taxpayers to check the balance
before making the payment for the respective minor heads.

 Click the ‘OK’ button to go back to the previous page.

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 Provide the amount of credit to be utilized from the available credit (in
the separate heads) to pay off the liabilities.
 While providing the inputs please ensure the utilization principles for
credit are adhered to, otherwise, the system will not allow for the offset of
liability.
 Click the ‘OFFSET LIABILITY’ button to pay off the liabilities. A
confirmation message is displayed. Click the ‘OK’ button.

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Step 9 – Select the checkbox for declaration. From the ‘Authorized Signatory’
drop-down list, select the authorized signatory. Click the ‘FILE GSTR-3B
WITH DSC’ or ‘FILE GSTR-3B WITH EVC’ button.

Step 10 – Click the ‘PROCEED’ button.

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On successful filing, a message is displayed. Click the ‘OK’ button.

The status of GSTR-3B return will now have changed to ‘Filed’. You can click
the ‘VIEW GSRT-3B’ button to view the GSRT-3B return.

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3.12. LITERATURE REVIEW

A literature review discusses published information in a particular subject
area, and sometimes information in a particular subject area within a
certain time period.

A literature review can be just a simple summary of the sources, but it

usually has an organizational pattern and combines both summary and
synthesis. A summary is a recap of the important information of the
source, but a synthesis is a re-organization, or a reshuffling, of that
information. It might give a new interpretation of old material or combine
new with old interpretations. Or it might trace the intellectual progression
of the field, including major debates. And depending on the situation, the
literature review may evaluate the sources and advise the reader on the
most pertinent or relevant.

1. G. Sunitha and P. Satischandra (2010) “Goods and Service Tax (GST):

As a new path in Tax Reforms in Indian Economy”. The authors have
tried to explain the concept of GST and different models of GST. They
also focused on the impact of GST on Indian markets. According to them
the current tax structure is the main hurdle for growth of Indian economy.
New tax structure of GST will remove this hurdles and boosts Indian
economy.

Government of India was positive towards GST while implementing it as

it will be beneficial for central government, state government as well as
for consumer in long run.

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2. R. Vasanthagopal (April 2011 ) “GST in India: A Big Leap in the

Indirect Taxation System” GST will be booming Indian economy.
According to him India is suffering from complicated tax system. GST
will give a boost to the Indian economy.

Implementation of GST in Indian framework will lead to commercial

benefits which the government was unable to achieve through VAT
system and would lead to economic development.

3. Nitin Kumar (May 2014) “Goods and Service Tax in India-A Way
Forward” in “Global Journal of Multidisciplinary Studies”, he noted that
implementation of GST in India will be a great move and it will be
remove all the problems of current tax structure in India.

By implementation of GST there will be more revenue for state and

central government as per the type of GST which are SGST, CGST,
UTGST. GST will improve state revenue.

4. Garg (2014) summarizes in the article “Basic Concepts and Features of

Good and Services Tax in India” about impact of GST on Indian Tax
structure and find out that GST will strengthen nation’s economy and
development.

GST have a good impact on Indian Tax Structure as the tax rates are
divided in 5 categories unlike before which was having different tax rate
in different states for different products.

5. Jaiprakash ( 2014) mentioned that the GST at the Central and the State
level are expected to give more relief to industry, trade, agriculture and

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 GOODS AND SERVICE TAX (GST)

consumers through a more comprehensive and wider coverage of input

tax set-off and service tax setoff, subsuming of several taxes in the GST
and phasing out of GST.

Impact of GST is on various sector one one them is agricultural sector.

Due to GST there is better supply chain mechanism which would ensure a
reduction in wastage and cost for the farmers/retailers. GST would ensure
that farmers in India who contribute the most to GDP, will be able to sell
their produce for the best available price.

6. Saravanan Venkadasalam (2014) has analysed the post effect of the

goods and service tax (GST) on the national growth on ASEAN States
using Least Squares Dummy Variable Model (LSDVM) in his research
paper. He stated that seven of the ten ASEAN nations are already
implementing the GST. He also suggested that the household final
consumption expenditure and general government consumption
expenditure are positively significantly related to the gross domestic
product as required and support the economic theories. But the effect of
the post GST differs in countries.

7. Manpreet Sharma(2015) “A study on Goods and Service Tax in India”.

Tried to find out the benefits of GST and current status of GST in India.
According to her we are moving towards GST due to faults in our current
indirect tax structure. Our current indirect tax structure is unable to
increase the competitiveness of industries. Both the authors’ emphasis on
the benefits of GST.

Sales Tax and CENVAT in Central Excise and Service Tax, the tax
system is very complex and has cascading effect. The product or services

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are taxed on various stages or destinations. The tax levied at one

destination is also be taxed on another destination but this is not done in
GST, so GST is simple.

8. Times of India (26th July, 2017), page no 1 and 17 it is stated that sweet
makers are confused with fixing tax for their product as the ingredient
used in sweets are taxed separately as raw material and as finished goods
the products its taxing is different. Plain burfi is 5% taxed but chocolate
burfi is fixed with 28%. Plain burfi mixed with dry fruits is of 12%. This
different tax rate has confused the sweet make how to charge gst for
different product.

9. Times of India (27th July, 2017), stated that the gst implication across
different places for the same product has wider difference which the
consumer is unaware, resulting them in surprise. A rasmalai sold in
counter at a shop is taxed with 5% but if it is served in the hotel it is taxed
with 18% this is resulted in the difference of consumer shopping to
purchase similar product.

10.Vineet Chavan (2017) “Measuring Awareness about implementation of

GST”. A study survey of small business unit of Rajasthan state in India.
The study seeks to evaluate the awareness of the business owner about
GST difficulties they face to encase of the current awareness about it.

GST for small trader and businessmen is little bit complex as there is lack
of knowledge about it and also they have to hire a account which will
increase their monthly expenses.

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3.13. BACKGROUND STUDY ON GST:

1. Goods and Services Tax (GST) is India’s most ambitious indirect
tax reform plan, which aims to stitch together a common market by
dismantling fiscal barriers between states.

2. This is one of the most trending and hot topic running from
economic point of view.

3. Applicability of GST and lack of knowledge about its compliance,

its applicability its benefits and to make everyone familiar to deal
with it and enhance the knowledge the following subject is chosen.

3.14. OBJECTIVE OF GST:

1. To understand the concept of GST.
2. To understand the Benefits of GST.
3. To learn how to file the returns.
4. To learn how GST will have effect on the Textile Industries.

3.15. STATEMENT OF PROBLEM:

Taxation system is an important factor to individuals, industry and
economies at large. The system affects businesses in many facets
and in this view the researcher has an objective to identify the
perception of people and the perception of the owners of textile
industry analyzes the impact on their business.
3.16. SCOPE OF GST:
Analytical scope: The researcher is going to analyze only the
filling procedure.
Functional scope: The data filling is done for the owners of textile
industry Ichalkaranji city

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3.17. LIMITATIONS OF GST:

1. As the topic GST is very wide, so it is difficult to study the

different composition schemes for filling procedure within a time

of 2 months.
2. As the data of clients are confidential, so the company cannot

provide all the data.

SAMPLE DESIGN:

Sampling Technique:

Convenient

The clients that are registered with CA firm are undertaken for the study.

Sample Size:

Population = No. of clients = 40

Therefore sample size = 30 (as per the availability of client)

Sampling Framework:

Textile industry clients registered with CA.

Data Analysis Tools :

Microsoft Excel:

Charts: A simple Excel chart can say more than a sheet full of numbers. As
you'll see, creating charts is very easy.

Tables: Tables allow you to analyze your data in Excel quickly and easily.

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DATA COLLECTION:

Primary Data Collection :

When the data are collected directly by the researcher for the first time is called
as Primary Data. It is original in nature and is specific to a research problem
under study.

Structured Interviews of clients and owners

Secondary Data Collection :

When the data are collected by someone else for a purpose other than the
researcher’s current project and has already undergone the statistical analysis is
called as Secondary Data.

Government publication –GST articles.

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CHAPTER IV: DATA ANALYSIS AND INTERPRETATION

4.1 DATA ANALYSIS AND INTERPRETATION

The table given below shows the number of respondents who participated
in the survey (the no. is based on my locality)

Table No. 4.1: Age wise distribution of respondent

Sr.No. Age group Count Percentage

1 20 – 25 4 10.81%
2 25-30 7 18.92%
3 30-35 15 40.55%
4 Above 35 11 29.72%
Total 37 100%
(Source: Primary data)

Figure 4.1: Graph Classification of respondent according to age

10.81%
29.72%
18.92%
20 – 25
25-30
30-35
Above 35

40.55%

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Interpretation:
From above pie chart we come to know that the age group which responded
more is the age group 30 -35 which is 40.55%. And the age group which
responded less is the age group from 20 year to 25 year which is only
10.81%. The age group from 25 years to 30 years responded to 18.92% and
the age group of above 35 years responded to 29.72%. So from this we can
tell that age group of 30-35 is accepting the new law GST quickly as
compared to age group which is above 35.

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The table given below shows the number of marital status of the above 27
respondents
Table No. 4.2: Classification of respondent according to marital status

Sr. No. Marital Count Percentage

Status
1 Unmarried 11 29.72%
2 Married 26 70.27%
Total 37 100%
(Source: Primary data)

Figure 4.2: Classification of respondent according to martial status

Marital Status

29.72%

Unmarried
Married

70.27%

Interpretation:
From the above pie chart we come to know that the respondents who
participated in the survey are both married and unmarried but more
percentage who participated in the survey is of married may be male or
female or any age group discussed above. The percentage of marital status of
married respondent is 70.27%. And the percentage of marital status of
unmarried respondent is 29.72%.

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The table given below shows the literacy rate of the respondents
Table No. 4.3: Classification of respondent according to their
qualification

Sr. No Qualification Count Percentage

1 Graduate 27 72.97%
2 Post graduate 7 18.91%
3 Others 3 8.10%
Total 37 100%
(Source: Primary data)

Figure 4.3: Classification of respondent according to qualification

Qualification
8.10%

18.91%
Graduate
Post graduate
Others

72.97%

Interpretation:
The above pie chart shows the literacy rate of the respondents who
participated in the survey. To interpret the literacy rate the qualifications are
divided in three parts which are 1. Graduate 2. Post Graduate 3. Others. The
graduates include b.com, m.com, BBA, or any other graduations. Post
graduates include of mba and other post graduates. The third option which is
others includes phd etc. From above pie chart we come to know that the
percentage of graduate is 72.97% which is more from the post graduate and
others and the percentage of post graduate is 26% and the percentage of
other is 11%. To understand the tax law like GST one should be literate and
have some basic knowledge about it.

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The table given below shows the occupation of the respondents

Table No. 4.4: Classification of respondent according to their occupation

Sr. No. Occupation Count Percentage

1 Businessman 24 72.97%
2 Employees 6 16.22%
3 CA 4 10.81%
Professional
4 Other 3 8.10%
Total 37 100%
(Source: Primary data)

Figure 4.4: Classification of respondent according to occupation

Occupation
8.10%
10.81%
Businessman
Serviceman
16.22% Professional
Other

72.97%

Interpretation:

We can interpret from above table and pie chart that there’re more
businessmen then any other profession. The percentage of businessmen
respondents are 62.96% whereas the lowest respondent in the survey are the
others which includes the customers etc and the professional like CA, CS
etc. The servicemen who responded to the survey are 14.80%. As in
Ichalkaranji there are maximum of textile industry, so there are more
businessmen. And GST has more impact on Businessmen as compared to
servicemen.

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PART B

Table No 4.5: GST is a very good tax reform for India.

Sr no Options Count Percentage

1 Strongly agree 20 54.05%
2 Agree 9 24.32%
3 Neutral 5 18.51%
4 Disagree 3 8.10%
5 Strongly - -
disagree
Total 37 100%
(Source: Primary data)

Figure4.5

8.10%

Strongly agree
18.51% Agree
Neutral
54.05% Disagree
Strongly disagree
24.32%

Interpretation:

From above table and pie chart we can interpret that the respondents have
chosen more the first option which is strongly agrees that is 20 in numbers
(54.05%).By this we come to know that people are thinking that goods and
service tax is a good reform for India. There is transparency and evasion of
tax is also reduced after implementation of GST.

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Table No 4.6: GST has increased various legal formalities

Sr no Options Count Percentage

1 Strongly agree 15 40.54%
2 Agree 11 29.73%
3 Neutral 6 16.21%
4 Disagree 3 8.10%
5 Strongly 2 5.40%
disagree
Total 37 100%
(Source: Primary data)

Figure 4.6
5.40%
8.10%

Strongly agree
40.54% Agree
16.21% Neutral
Disagree
Strongly disagree

29.73%

Interpretation:
From above table and pie chart we can interpret that there are total five
options and the respondent can choose any one of them. The respondents
have chosen more the first and second option which is strongly agree that is
15 and 11 in numbers (40.54% and 29.73%). Very less number of
respondents has chosen the last option which is strongly disagree. By this we
come to know that people are thinking that goods and service tax has
increased the legal formalities. Filling 36 returns annually is itself a huge
formality for a business or industry. Along with this 36 returns the industries

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also have to make E-way Bill for the transportation of goods (within the state
and from one state to another).

Table No 4.7: GST has increased a tax burden on a common man

Sr no Options Count Percentage

1 Strongly 22 59.45%
agree
2 Agree 7 18.91%
3 Neutral 6 16.21%
4 Disagree 2 5.40%
5 Strongly - -
disagree
Total 37 100%
(Source: Primary data)

Figure 4.7

5.40%

16.21%

Strongly agree
Agree
Neutral
Disagree
Strongly disagree
59.45%
18.91%

Interpretation:

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From above table and pie chart we can interpret that there are total five
options and the respondent can choose any one of them. The respondents
have chosen more the first option which is strongly agree that is 22 in
numbers (59.45%). Not a single respondent have chosen the last option
which is strongly disagree. By this we come to know that people are thinking
that goods and service tax has increased the tax burden on common man. But
there are 5.40% of respondents who think that goods and service tax has not
increased tax burden on common man. Tax rate before implementation of
GST on Textile industry where on cotton-5%-7%, synthetics-11%-14%,
blended-11%-14%, silk and wool-8%-11%. And tax rates after GST are 5%
on cotton, 14% on synthetics, 14% on blended, and 5% on silk and wool. As
we can see there no such difference in tax rates, besides this the tax rate on
daily expenses is also increased.

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Table no. 4.8: Will GST increase or have effect on daily or regular
expenses.

Sr no Options Count Percentage

1 Yes 29 78.38%
2 No 8 21.62%
Total 37 100%
(Source: Primary data)

Figure 4.8

21.62%

Yes
No

78.38%

Interpretation:

From above table and pie chart we can interpret that there are total two
options and the respondent can choose any one of them. The respondents
have chosen more the first option which is yes that is 29 in numbers
(78.38%). Very less number of respondents has chosen the second option
which No that is 8 in numbers (21.62%). By this we come to know that
people are thinking that goods and service tax will increase the amount of
daily expenses.

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Table No. 4.9: Do you think government should have given some more
time for people of nation to understand GST.

Sr no Options Count Percentage

1 Yes 31 83.78%
2 No 6 16.21%
Total 37 100%
(Source: Primary data)

Figure 4.9

Chart Title
16.21%

Yes
No

83.78%

Interpretation:

From above table and pie chart we can interpret that there are total two
options and the respondent can choose any one of them. The respondents
have chosen more the first option which is yes that is 31 in numbers
(83.78%). Very less number of respondents has chosen the second option
which No that is 6 in numbers (16.21%). By this we come to know that
people are thinking that government should have given some more time for
people to understand goods and service tax.

Table No. 4.10: Will GST help government of India to collect more tax.

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Sr no Options Count Percentage

1 Strongly 15 40.54%
agree
2 Agree 9 24.32%
3 Neutral 7 18.91%
4 Disagree 6 16.21%
5 Strongly - -
disagree
Total 37 100%
(Source: Primary data)

Figure 4.10

Chart Title

16.21%

Strongly agree
Agree
40.54% Neutral
Disagree
18.91%

24.32%

Interpretation:

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From above table and pie chart we can interpret that there are total five options
and the respondent can choose any one of them. The respondents have chosen
more the first option which is strongly agree that is 15 in numbers (40.54%).
Not a single respondent have chosen the last option which is strongly disagree.
By this we come to know that people are thinking that goods and service tax
will help government of India to collect more tax. GST brought in an average
Rs 975.4 billion ($14.2 billion) a month in revenue, government data reported
in the three months to June shows, compared with a target of nearly Rs 1.1
trillion. So by this we come to know that yes GST have helped the government
to collect more tax but it did not matched the expectations of the government.

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Table No.4.11: Do you think GST is a good replacement for Service Tax.

Sr no Options Count Percentage

1 Yes 33 89.18%
2 No 4 10.81%
Total 37 100%
(Source: Primary data)

Chart Title
10.81%

Yes
No

89.18%

Figure 4.11

Interpretation:

From above table and pie chart we can interpret that there are total two
options and the respondent can choose any one of them. The respondents
have chosen more the first option which is yes that is 33 in numbers
(89.18%). Very less number of respondents has chosen the second option
which No that is 4 in numbers (10.81%). By this we come to know that
people are thinking that goods and service tax is a good replacement to
service tax. GST is a good replacement to service tax as in service tax there

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were different rate on single category of product all over India but in GST it
is single tax reform.

Table no. 4.12: GST is amending very fast. Do you think this all new
amendments will confuse small Businessmen?

Sr no Options Count Percentage

1 Strongly agree 25 67.56%
2 Agree 7 18.91%
3 Neutral 4 10.81%
4 Disagree 1 2.70%
5 Strongly - -
disagree
Total 37 100%
(Source: Primary data)

Figure 4.12

2.70%

10.81%

Strongly agree
Agree
18.91% Neutral
Disagree
Strongly disagree
67.56%

Interpretation:

From above table and pie chart we can interpret that there are total five
options and the respondent can choose any one of them. The respondents

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have chosen more the first option which is strongly agree that is 25 in
numbers (67.56%). Not a single respondent have chosen the last option
which is strongly disagree. By this we come to know that people are thinking
that new amendments in GST are fast and the notifications are not clearly
notified. But there are 2.70% of respondents who think that goods and
service tax is not amending fast and the notifications are clear enough to
understand. As GST is very new to over nation it is obvious that it will have
multiple of changes in it. So in this case the government should also give
proper notification to the citizens and the citizens should also be aware and
have proper knowledge of the amendments.

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Table No. 4.13: Has GST made any difference to your daily life and business?

Sr no Options Count Percentage

1 Yes 30 81.08%
2 No 7 18.91%
Total 37 100%
(Source: Primary data)

Figure 4.13

18.91%

Yes
No

81.08%

Interpretation:

From above table and pie chart we can interpret that there are total two options
and the respondent can choose any one of them. The respondents have chosen
more the first option which is yes that is 30 in numbers (81.08%). Very less
number of respondents has chosen the second option which No that is 7 in
numbers (18.91%). By this we come to know that people are thinking goods and
service tax has made a difference in their daily life as well as business.
Implementation of GST have a huge impact on various sectors of the Indian
economy one of them is banking and financial services sector as before GST the
tax rate on the services which were provided by banks where charged at 15% but
after GST the tax rate is 18% the services may include digital fund transfers,
issuance of ATM cards and chequebooks, and ATM withdrawals beyond a
specific limit.

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9. The above question was has GST made any difference to your daily
life and business?

There are total 37 respondents to this survey. Out of 37 respondents 30

respondents that is 81% of respondents think that goods and service tax has
made a huge difference in their daily life and businesses. The question
number 10 which is based on question 9 is If yes than how?

Some of the respondents from 30 have answered this question as, after the
applicability of goods and service tax their daily expenses have increased
and the legal formalities for business have also increased. As they have to
file the returns on monthly basis some of them file return in quarterly basis
and some on yearly basis. So they feel like a burden on them.

Say for example the tax rate on supply of food and drinks in AC restaurants
in 5-star was 6% before GST and after GST it is 18%.

Supply Of Foods And Before GST 6%

Drinks In 5-star
Hotel After GST 18%

Hotel Stay Where Before GST 9%

Room Tariff Is
Between 1000-2500 After GST 12%

Hotel Stay Where Before GST 9%

Room Tariff Is
Between 2500-7500 After GST 18%

10. What are your opinion about goods and service tax?

Out of 37 respondents some respondents have answered the question as,

goods and service tax is a good replacement to the indirect taxes in India.
Respondents think that goods and service tax will bring more transparency
and there will be transparency there will be less corruption. They also said

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that no doubt it will increase the compliance work but it will help the
government to collect more tax.

11. What more is to be improved in GST according to you?

Out of 37 respondents some of the respondents have answered the question

as,As per the rules made by the government in goods and service tax, every
tax payer have to file returns every month, the small businessmen will find
this process hectic because of lack of facility of computers and internet. The
businessmen have to upload all the details of every invoice in each and every
month so government should improve this by allow for uploading a
consolidated detail of sale and purchase. The GST portal is too slow and the
preparation of modules is still work under process. This needs to be speeded
up

12. How GST has impacted on Textile industry?

Some of the owners of textile industries thing that due to GST their legal
work has increased as they have to fill the returns every month or quarterly.
But they also said that even the legal work has increased but they are happy
as the rate of percentage has decreased as compared to sales tax and service
tax which was charged before. But they also face difficulty as all the work is
now computerized as some of them where still maintaining manually before
commencement of GST.

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CHAPTER V: DATA FINDINGS, SUGGESTONS AND

CONCLUSION

5.1. DATA FINDINGS

I. After analysis and interpretation of the data emerged findings are as
follows:
II. The respondents where males
III. Majority of respondents where businessmen’s i.e.72.97% (table no.6.4)
IV. The respondent of age group 30-35 are more i.e. 40.55% as they adopted
GST very fast.(table no. 6.1)
V. The respondent where having a positive perception about GST as it will
develop the economy of nation.
VI. Most of people also think that there should be some more improvement in
GST so the suggested some points to the government.
VII. People also think that the legal formalities have also increased after
implication of GST.

3.2. RECOMMENDATION AND SUGGESTIONS TO

GOVERNMENT:
I. The owners of not only textile but any industry have to file almost 36
returns of GST. So government can reduce the process of filling these
returns.
II. Still in India the rates of GST are very high on daily used items like
soaps, cream, movie tickets, etc i.e. 28%. Government can reduce this tax
rate at least on daily used items.

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III. The site or portal of GST where the returns are filled should be
improvised as the tax payer face problems of server down while filling
the returns.
IV. The government can also provide a invoice format for different sectors so
that it will be similar all over India.
V. It is suggested that the online portal for Form GSTR01 be reopened for
filing afresh/ allow rectification till the date of filing of annual return.

5.3. RECOMMENDATIONS AND SUGGESTION TO

TEXTILE INDUSTRY OWNERS:

4. The owners not only of textile industry but of different sectors

should see that they maintain proper accounts so that they do
not face any problems while filling different returns.
5. The owners should also keep in mind the date of filling returns
to avoid the penalties of late filling.
6. The owners should also keep their account transparent so that
they pay the fair taxes which will help the government to
develop the whole country.

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CONCLUSION :

GST is a good reform for India and will develop the nation as Tax collection
is more. But it has also made burden of legal formalities on businessman and
industry owners of filling returns and many other. GST have impact on
various sectors of economy one of them is banking sector were rate of tax is
increased. We also come to know that GST is destination based taxation. The
past indirect tax was the hurdle for the growth of economy in India. But GST
will remove all the hurdle and boost Indian economy

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BIBLIOGRAPHY

 Bibliography :
o Datey V. S. (April 2017) GST Ready Reckoner: Taxmann
o Ahuja Girish and Gupta Ravi (Dec 2017) Systematic approach
to GST: Wolters Kluwer (India) Pvt Ltd.
o Mishra S. K. (March 2018) Simplified approach to GST:
Educreation
o CA IPCC book 2017
 5.Chavan Vineet “Measuring Awareness about implementation of
GST” (2017)
 Garg “Basic Concepts and Features of Good and Services Tax in
India” published in International Journal of scientific research and
Management, 2(2), 542-549 (2014)
 Kumar Nitin “Goods and Service Tax in India-A Way Forward” in
“Global Journal of Multidisciplinary Studies”, Vol. 3, Issue 6 (May
2014)
 Sharma Manpreet research paper titled “A study on Goods and
Service Tax in India” (2015)
 Times of India (26th July, 2017), page no 1 and 17
 Times of India (27th July, 2017)
 Vasanthagopal .R. “GST in India: A Big Leap in the Indirect
Taxation System” in International Journal of Trade, Economics and
Finance, Vol. 2, No. 2, April 2011

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ANNEXURE

 REGERENCE :
1. https://www.jagranjosh.com/general-knowledge/history-of-
taxation-in-india-1481028305-1
2. https://www.hrblock.in/earlygst/guides/
3. https://economictimes.indiatimes.com/
4. https://www.hrblock.in/earlygst/types-gst-india/
5. https://economictimes.indiatimes.com/news/economy/policy/a-
quick-guide-to-india-gst-rates-in-2017/articleshow/58743715.cms
6. https://cleartax.in/s/gst-analysis-and-opinions

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