SYMBIOSIS COLLEGE OF ARTS AND COMMERCE

An Autonomous College under Savitribai Phule Pune University

Senapati Bapat Road, Pune - 411004

A RESEACH PROPOSAL ON

The interrelationship of the Central Taxes with the States

Taxes in Pre-GST and Post-GST period in India.

SUBMITTED BY

Anandita Choudhury
(8025 Academic Year 2019-20)

FOR THE DEGREE OF

MASTERS OF COMMERCE
(Specialization in Advanced Accounting & Taxation)

UNDER THE GUIDANCE OF

Dr. Santosh Marwadikumbhar

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1. Introduction:

Post-independence was a time where the indirect tax regime was complicated in India. It included
Central Sales Tax, Central Excise Tax, Entry Tax, Octroi, VAT, Customs Duty etc. Various indirect
taxes were charged by the central and state government multiple times at each step of value chain.
Post-independence was also a period of double taxation, multiplication of taxes, no set-off
mechanism available, lack of cross-utilization making it more remorseful and grilling on the
shoulders of the tax payer and tax bearer. To the possible solution to such rigid and manipulating
system, GST was devised. It was in the year 2000 by the Vajpayee Government, Good and Service
Tax (GST) was formed as an idea to consolidate all multiple taxes into one single tax and incur
benefit for both tax payer/bearer and the compilation at government front. In order to do so, the
Constitution of India’s One Hundred and First amendment was,2016 was amended. GST has
replaced a surfeit of state and central tax post-independence. It is an Indirect tax which succumbs in
it the previous existing all types of direct and indirect taxes. It is comprehensive (subsumed all
other earlier existing taxes), multi-stage (it is being included at every stage of production),
destination-based (it is collected at consumption not at the point of origin). It is levied on value-
addition.

2. Need of the study:

The need of the study is to highlight the need of a flexible yet non-complicated tax regime to
help both the government for collection and compliance and the tax-payer or tax-bearer to avoid
cascading and multiplication of tax payment. The study is to ascertain the impact of such clear
taxation practice in growth of the Indian industry becoming more competitive. To ascertain the
functioning of tax regime prior and post the introduction of GST and its scalability.

3. Relevance of the study:

1) Academic relevance: The readers of the study can benefit by taking insight in terms of concepts,
scalability, functioning system, pros and cons of tax regime and GST.
2) Research Relevance: The study will leave enough scope for the readers to acknowledge various
aspects and relationship of central and states tax system in terms of consolidating efforts to avoid
cascading of taxes and remain the primary source of revenue at the hands of the government.
3) Government Relevance: This study is crucial for the government to take relevance in terms
foreign investments, boost in export & import industry, improvement in unemployment rate by
new entrance of companies in the Indian territory under the tag line of “One Tax One Nation”.
4) Corporate Relevance: The study is needful for businesses in terms of removing existing
imperfections in indirect taxes and improve tax compliance and hence trigger growth and business
in the Indian economy.

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5) Investor Relevance: With increased tax rates, the mutual fund investors, Insurance, Banking,
Real Estate etc. will have a significant role to play and this study come handy from this
perspective.

4. Assumptions: Conclusions arrived at may be subjective to one’s interpretations. Whilst I arrive

at the respective opinion, based on the dataset and within my extent of awareness, others may
have varying opinion. Such conclusion are based on historical data and are not put forth as
predictions.

5. Objectives of the study:

The tax regime is believed to be a security net for the government and loyalty zone for tax
payers to contribute to nation’s development.
✓ To study the role of tax collection at Central and State level towards the development of
India’ economy
✓ To know about the impact of GST in India pre and post its introduction
✓ To study how GST has impacted the tax structure in India.
✓ To analyze the role of inter-relationship of Center and State taxes.

6. Statement of Hypothesis:
H1: The tax regime prior to the introduction of goods and service Tax in India was more well-
structured.
H2: There is enormous influence of center and state tax upon GST’entry in India
H3: The tax regime post GST was more reliable and well-structured.

7. Scope of the study:

Goods and Service Tax was designed with an intention to simply sooth the taxation burden from
both the end of the Government and the Tax payer/bearer. The study is limited to the extent of
conclusion drawn from the data analyzed. This study in general has its reach limited to the
Effect and Relationship of Center and State tax pre-GST and post-GST levitation.
8. Universe and Sample Size:
This is a case study.
9. Sources of data collection: Secondary Data is collected to draw conclusions of the study like
published journals, online articles, newspaper columns and other online sources.
10. Method of data collection: Secondary data is collected to arrive at the conclusion of the case
study.
11 . Review of important and relevant literature on the study

GST stands for Goods and Service Tax. During the pre-GST period, both the center and the
state government levied charges separately on a particular transaction (s). Then the government
enjoyed taxation benefit over manufacture of goods and services and the state enjoyed taxation

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 over sale of goods and services. Central Excise, Customs and Service tax were the main stream
revenue for Center and State had Central sales Tax, Value Added Tax (VAT), Octroi,
Entertainment Tax etc. During this period, there was evident cascading of taxes because
different authorities end up charging again and again over same transaction, no availability of
set-off mechanism. July ,2017, the month when Goods and Service tax was surprisingly
launched and enforced, was a drastic reform in tax regime for India. It was a dual framework
wherein both the center and the state levied tax rates on a particular transaction at the same time
and same rate. There are four components to it naming, CGST,SGST,IGST and UTGST. For a
country like India, being at the developing stage, there are many factors linking to the
successful implementation of this initiative.

12 Limitations of the study:

The study is limited to the scope of further research avenues. The study is subjected to the conclusions
arrived at by the data collected till date. It is highly dependent on the facts and figures till date and may
change with further improvements in the existing facts and figures i.e., it is sensitive to the factor of
time

13 Scheme of the Report:

Table 5: Scheme of the Report
Chapters Content
1 Introduction
2 Literature Review
3 Profile of the Select Public companies/Research Area
4 Research Methodology
5 Analysis and Interpretation of Data
6 Conclusions and Suggestions

▪ Bibliography and Webliography

▪ Annexure

14 Bibliography/ Webliography: online journals, newspaper articles, published journals

15 Journals: online journals

Approved:

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Approved Subject to:
1.
2.
3.
Signature of the student Guide signature