PROJECTREPORT

(
Sub
mitt
edfort
heDe gr
eeofB.Com.Ho
nours
i
nAcco
unti
ng& Financeundert
heUni
ver
sit
y
o
fCalcut
ta)

TITLEOFTHEPROJECT:
“
GOODS& S
ERVICESTAX”

S
UBMITTED BY
Nameo
ftheCandi
dat
e:JAYRUDRAJHA
Re
gis
trat
io
nNumb
er: 043-
1111-
0122-
18
Nameo
ftheCo
lle
ge:HERAMBACHANDRACOLLEGE
Co
lle
geRo
llNumb
er: 181004
CUe
xamRo
llNumb
er:181043-
21-
1153

S
UPERVIS
ED BY
Nameo
ftheS
upe
rvi
sor
:GOBIND KUMARJHA
Nameo
ftheCo
lle
ge:HERAMBACHANDRACOLLEGE

MONTH & YEAROFS

UBMIS
SION:
Dat
e:June
,2021
 Anne
xur
e-IA
S
UPERVIS
OR'
SCERTIFICATE

Thi
sist
oce
rti
fyt
hatMR.JAYRUDRA JHA as
tude
nto
fB.
Com.Ho
nour
sinAc
count
ing&
Fi
nanc
eofHERAMBA CHANDRA COLLEGE,unde
rtheUni
ver
sit
yofCal
cut
tahaswo
rke
d
unde
rmys
upe
rvi
si
onandgui
danc
efo
rhi
s/he
rPr
oje
ctWo
rkandp
rep
are
daPr
oje
ctRe
por
twi
t
h
t
het
it
le“
GOODS& S
ERVICETAX”whi
chhe
/shei
ssub
mit
ti
ng,i
shi
s/he
rge
nui
neando
rigi
nal
wo
rkt
otheb
esto
fmykno
wle
dge
.

Pl
ace
:Ko
lkat
a S
ignat
ure
:
Dat
e: 05/
06/
2021 Name
:GOBIND KUMAR JHA

De
signat
io
n:PROFES
SOR

Nameo
ftheCo
ll
ege
:HERAMBACHANDRACOLLEGE
Anne
xur
e-IB
S
TUDENT'
SDECLARATION

Ihe
reb
yde
clar
ethatt
hePr
oje
ctWo
rkwi
tht
het
it
le“
GOODS& S
ERVICE TAX”
s
ubmi
tt
edb
ymef
ort
hep
art
ialf
ulf
il
mento
fthede
gre
eofB.
Com.Ho
nour
sinAc
count
ing&
Fi
nanc
eunde
rtheUni
ver
sit
yofCal
cut
tai
smyo
rigi
nalwo
rkandhasno
tbe
ens
ubmi
tt
ed
e
arl
ie
rtoanyo
the
rUni
ver
sit
y/I
nst
it
uti
onf
ort
hef
ulf
il
mento
fther
equi
reme
ntf
orany
c
our
seo
fst
udy.
Ial
sode
clar
ethatnoc
hap
tero
fthi
smanus
cri
pti
nwho
leo
rinp
arthasb
eeni
nco
rpo
rat
ed
i
nthi
sre
por
tfr
om anye
arl
ie
rwo
rkdo
neb
yot
her
sorb
yme
.Ho
wev
er,e
xtr
act
sofany
l
it
erat
urewhi
chhasb
eenus
edf
ort
hisr
epo
rthasb
eendul
yac
kno
wle
dge
dpr
ovi
dingde
tai
ls
o
fsuc
hli
te
rat
urei
nther
efe
renc
es.

Pl
ace
:Ko
lkat
a S
ignat
ure
:
Dat
e: 05/
06/
2021 Name
:JAYRUDRAJHA
Re
gis
trat
io
nNumb
er: 043-
1111-
0122-
18

Co
ll
egeRo
llNumb
er: 181004
 ACKNOWLEDGEMENT

Fi
rstofallthankstoGo d,f
o rgivi
ngmeandmyf ri
endsthestre
ngthandwi
lltoc
ompl
ete
t
histaskjus
tint i
me.Ev enthoughwef ac
edalotofdi
ff
icul
ti
eswhilet
ryi
ngt
oc o
mple
tet
his
t
ask,thegro
ups ti
llmanagedtoc o
mp l
et
eitandwearegladabouti
t.

As pec
ialthankstoMrGo p
alSingh,f
orbeingsuchagoodguidancetouswhilewewer
e
doi
ngthistask.Hehadgi
venusanap p
ropr
iateex
ampleandknowle
dgeinorde
rtomakeus
under
standmo reabo
utt
hist
opi
c.Hes pe
ndshi st
imet
oexplai
ntheexec
uti
onofthisi
deai
n
al
ltheway.

Ials
oappr
eci
ateCARi mjhimPandey,f
orhe
rsuppor
ttometodot
hisproj
ecti
nal
ltheway
andmadeitpo
s si
ble
.Weal sowanttot
hankothe
rgroupswhowerewi
lli
ngtosharet
hei
r
i
nfor
mat
io
nab outthi
sto
pic.The
ygaveusaloto
fnewideasab
outt
hetas
k.

Alsoagre
atthankstomyf ami
lyandfri
endswhotr
iedt
hei
rbes
ttogi
vet
hei
rsup
porte
ithe
r
bygiv
ingmeal otofe
nco
uragementt
okeepupwitht
hist
askorbysup
por
ti
ngusf
inanc
iall
y
andpayal
lthecostre
qui
redtoco
mp l
et
ethi
stask.

4
 CONTENTS
PAGE
S
.NO. TITLE NO.

1. COVERPAGE 1

2. S
UPERVIS
OR’
SCERTIFICATE 2

3. S
TUDENT’
SDECLARATION 3

4. ACNOWLEDGEMENT 4

5. CHAPTER1:INTRODUCTION 6-10
TOGST
6. CHAPTER2:IMPACTOFGSTON VARIOUS 11-14
S
ECTORS

CHAPTER3:DATAFINDI
NG& ANALYS
ISOFGS
T 15-20

4. CHAPTER4:CONCLUS
ION & 21-23
RECOMMENDATION
5. CHAPTER5:BIBLIOGRAPHY 24-25

6. QUES
CHAPTER6: TIONNAIRE 26-28

5
 CHAPTER1:

INTRODUCTION
TOGST

6
 1.
1:INTRODUCTION TOTHEGST:
TheGo
odsandS
erv
ice
sTax(
GST)
,imp
leme
nte
donJul
y1,2017,i
sre
gar
dedasamaj
or
t
axat
io
nre
for
mti
lldat
eimp
leme
nte
dinIndi
asi
ncei
nde
pende
nce
.Thep
rimar
yob
jec
ti
ve
b
ehi
ndde
vel
opme
nto
fGS
Tist
osub
sumeal
lso
rtso
findi
rec
ttax
esi
nIndi
ali
keCe
ntr
al
Exc
iseTax,VAT/
Sal
esTax,S
erv
icet
ax,e
tc.andi
mpl
eme
nto
net
axat
io
nsys
temi
nIndi
a.

1.
2:SALIENTFEATURESOFGST:
 GS
Tisani
ndi
rec
ttax.
 Fo
rthewo
rdsmanuf
act
ure
,sal
e,s
erv
ice
,et
c.t
heo
nly‘
Sup
ply’i
sus
ed.
 GS
Tisl
evi
edo
nsup
plyo
fgo
odso
rse
rvi
ceo
rbo
th.
 Iti
sac
ons
ump
ti
onb
ase
dtax.
 GS
Tisl
evi
edb
othb
yCe
ntr
alGo
ver
nme
ntandS
tat
eGo
ver
nme
nt/
Uni
ont
err
it
ory
 Taxp
aido
ninwar
dsup
pli
esi
sav
ail
abl
easi
nputt
axc
redi
tagai
nstt
axo
nout
war
d
s
upp
li
ess
ubj
ectt
oful
fi
ll
mento
fce
rtai
nco
ndi
ti
ons
.
 GS
Tlawi
sap
pli
cab
leal
lov
erIndi
a

1.
3:OBJECTIVESOFGST
 ToDe
vel
opnat
io
nalMar
ket
-OneNat
io
n,o
neTax
 Tor
educ
emul
ti
pl
ic
it
yofi
ndi
rec
ttaxe
s.
 ToEl
i
minat
ecl
ass
if
ic
ati
ondi
sput
ebe
twe
engo
ods& s
erv
ice
s.
 Tor
emo
veb
arr
ier
sini
nte
r-S
tat
emo
veme
nto
fgo
ods
 Toe
aset
headmi
nis
trat
iv
eco
ntr
ol.
 Uni
fo
rmi
tyo
ftaxr
ate
sandaut
omat
edc
omp
li
anc
es.
 Ens
uri
ngav
ail
abi
li
tyo
finp
utt
axc
redi
tac
ros
sthev
aluec
hai
n
 S
imp
li
fi
cat
io
nofr
egi
st
rat
io
n,f
il
ingo
fre
tur
n,t
axadmi
nis
trat
io
nandc
omp
li
anc
e.
 Har
moni
zat
io
noft
axb
ase
,laws
,andadmi
nis
trat
io
npr
oce
dur
esac
ros
sthec
ount
ry.
 Mi
nimi
zi
ngt
axr
ates
lab
stoav
oidc
las
sif
ic
ati
oni
ssue
s.
 Pr
eve
nti
ono
funhe
alt
hyc
omp
eti
ti
onamo
ngs
tat
es.
 Fr
eemo
veme
nto
fGo
odsac
ros
sthec
ount
rywi
t
houtanyaddi
ti
onalt
ax.

7
 1.
4:ADVANTAGESOFGST:
 GS
Tel
imi
nat
est
hec
asc
adi
nge
ff
ecto
ftax
 Hi
ghe
rthr
esho
ldf
orr
egi
st
rat
io
n
 Co
mpo
sit
io
nsc
hemef
ors
mal
lbus
ine
sse
s
 S
imp
leande
asyo
nli
nep
roc
edur
e
 Thenumb
ero
fco
mpl
ianc
esi
sle
sse
r
 De
fi
nedt
reat
mentf
orE-
comme
rceo
per
ato
rs
 Imp
rov
ede
ff
ic
ienc
yofl
ogi
st
ic
s
 Unor
gani
zeds
ect
ori
sre
gul
ate
dunde
rGS
T

1.
5:DISADVANTAGESOFGST:
 Inc
reas
edc
ost
sduet
oso
ftwar
epur
chas
e
 Be
ingGS
T-c
omp
li
ant
 GS
Twi
llme
anani
ncr
eas
eino
per
ati
onalc
ost
s
 GS
Tcamei
ntoe
ff
ecti
nthemi
ddl
eoft
hef
inanc
ialye
ar
 GS
Tisano
nli
net
axat
io
nsys
tem
 S
MEswi
llhav
eahi
ghe
rtaxb
urde
n

1.
6:STRUCTUREOFGST

Dualmo
delGS
Tisap
pli
cab
lei
nIndi
ai.
e.t
wov
ari
et
ie
sofGS
Twi
l
lbec
har
gedo
nsameb
il
li.
e.
CGS
T(Ce
ntr
algo
odsands
erv
icet
ax)andS
GST(
Stat
ego
odsands
erv
icet
ax)
.OnanInt
raS
tat
e
S
upp
ly,b
othCGS
TandS
GSTs
hal
lbeap
pli
cab
le.Amo
unto
fCGS
Tisr
eve
nueo
ftheCe
ntr
al
Go
ver
nme
ntandt
heamo
unto
fSGS
Tisr
eve
nueo
fSt
ateGo
ver
nme
nt.
8
1.
7:TYPESOFGST
 Ce
ntr
alGo
odsandS
erv
ice
sTax(
CGS
T)
 S
tat
eGo
odsandS
erv
ice
sTax(
SGS
T)
 Int
egr
ate
dGo
odsandS
erv
ice
sTax(
IGS
T)
 Uni
onTe
rri
to
ryGo
odsandS
erv
ice
sTax(
UTGS
T)

Type
so f
CGS
T S
GST IGS
T UGS
T/UTGS
T
Dif
fe
rence
s

Inte
r-s
tat
e
Appli
cabl
e (be
tweent
wo
Int
rast
ate Intr
astat
e Wit
hino
ne
t
ransact
io
ns st
atesorone
(Wit
hinone (
Withi
none Uni
onTerr
it
ory
(
Go o
ds& st
ateando ne
st
ate
) s
tat
e) (
UT)
Se
rvic
es) UT)and
i
mp ort
s

Ce
ntral
Co
lle
cte
dby S
tat
eGo
vt. Ce
ntr
alGo
vt. UTGo
vt.
Govt
.

Benef
it
ti
ng Ce
ntral Ce
ntralGo
vt.
S
tat
eGo
vt. UTGo
vt.
Autho
rit
y Govt
. &S t
ateGovt
.

1.
8:CENTRALTAXESSUBSUMED IN GST
 Ce
ntr
alExc
iseTax
 S
erv
iceTax
 Addi
ti
onalCus
tomdut
y,c
ommo
nlyk
nownasCo
unt
erv
ail
i
ngTax(
CVD)

1.
9:STATETAXESSUBSUMED IN GST
 VAT/S
ale
stax
 Luxur
ytax
 Pur
chas
etax
 Ent
ryt
ax/Oc
tro
i
 Ce
ntr
alS
ale
sTax

1.
10:TAXESNOTSUBSUMED IN GST
 Cus
tomdut
y
 S
tampdut
y
 S
ecur
it
ie
str
ans
act
io
nTax
 Ce
ntr
alExc
iseo
nPe
tro
leump
roduc
ts,To
bac
co
 VATo
nPe
tro
leumPr
oduc
tsandAl
coho
l

1.
11:RATEOFGST
9
Rat
eofGS
Tvar
iesf
romp
roduc
ttop
roduc
t.The
rear
e4p
opul
arr
ate
sofGS
Ti.
e.
a)5
( %(
2.5%CGS
T+2.
5%S
GST)
(
b)12%(
6%CGS
T+6%S
GST)
(
c)18%(
9%CGS
T+9%S
GST)and
d)2
( 8%(
14%CGS
T+14%S
GST)
No
te:
a)S
( pec
ialRat
eofGS
TonJe
wel
le
ry:Iti
s3%i
ncas
eofGo
ld,S
il
ver
,Pl
ati
nume
tc.
(
b)Inc
aseo
fRo
ughdi
amo
ndr
ateo
fGS
Tis0.
25%

1.
12:GSTCOUNCIL 
Go
ods& S
erv
ice
sTax(
GST)Co
unc
il
 i
sac
ons
ti
tut
io
nalb
odyf
ormak
ingr
eco
mme
ndat
i
onst
o
t
heUni
onandS
tat
eGo
ver
nme
nto
nis
sue
sre
lat
edt
oGo
odsandS
erv
iceTax.TheGS
TCo
unc
il
i
schai
redb
ytheUni
onFi
nanc
eMi
nis
terando
the
rme
mbe
rsar
etheUni
onS
tat
eMi
nis
tero
f
Re
venueo
rFi
nanc
eandMi
nis
ter
sin-
char
geo
fFi
nanc
eorTaxat
io
nofal
ltheS
tat
es.

1.
13:THETAXABLEEVENTIN GST
Thet
axab
lee
venti
nGS
Tiss
upp
lyo
fgo
odso
rse
rvi
ceso
rbo
th.Thel
i
abi
li
tyt
opayt
axar
ise
sat
t
he‘
ti
meo
fsup
plyo
fgo
odso
rse
rvi
ces
’.
 Thus
,de
ter
mini
ngwhe
the
rorno
tat
rans
act
io
nfal
ls
unde
rtheme
ani
ngo
fsup
ply,i
simp
ort
antt
ode
cideGS
T’sap
pli
cab
il
it
y.

1.
14:SUPPLY
Thes
cop
eoft
erms
upp
lyi
sgi
venunde
rSe
cti
on7(
1)o
fCGS
TAc
twhi
chp
rov
ide
sthei
ncl
usi
ve
de
fi
nit
io
noft
erms
upp
ly.Asp
ert
hep
rov
isi
ono
fsup
ply,s
upp
lyi
ncl
ude
s:
a) a
( l
lfo
rmso
fsup
plyo
fgo
odso
rse
rvi
ceso
rbo
ths
uchass
ale
,tr
ans
fer
,bar
ter
,exc
hange
,
l
ic
enc
e,r
ent
al,l
eas
eordi
spo
salmadeo
ragr
eedt
obemadef
orac
ons
ide
rat
i
onb
ya
p
ers
oni
nthec
our
seo
rfur
the
ranc
eofb
usi
nes
s;
(
b)i
mpo
rto
fse
rvi
cesf
orac
ons
ide
rat
io
nwhe
the
rorno
tint
hec
our
seo
rfur
the
ranc
eof
b
usi
nes
sand;
(
c) t
heac
ti
vi
ti
ess
pec
if
ie
dinS
che
dul
eI,madeo
ragr
eedt
obemadewi
tho
utac
ons
ide
rat
io
n
and;
d) t
( heac
ti
vi
ti
est
obet
reat
ed ass
upp
lyo
fgo
odso
rsup
plyo
fse
rvi
cesasr
efe
rre
dto
i
n S
che
dul
eII.

10
 CHAPTER2:

IMPACTOFGSTON VARIOUS
SECTORS

11
 2.
1:INTRODUCTION
Go
odsandS
erv
ice
sTax(
GST)wasi
ntr
oduc
edi
ntheI
ndi
anCo
nst
i
tut
i
ont
hro
ught
he101s
t
(
Hundr
edandOne
)Co
nst
it
uti
onalAme
ndme
ntAc
t,2016.Af
te
rthee
nfo
rce
mento
fGo
odsand
S
erv
ice
sTax(
GST)
,manys
ect
orsf
ace
dso
mep
osi
ti
vee
ff
ect
saswe
llasne
gat
iv
eef
fe
cts
.

Thee
nfo
rce
mento
fthet
axwasf
ort
hel
ongt
ermb
ene
fi
t.The
rewe
rev
eryf
ews
ect
orst
hat
r
ece
ive
dani
mme
diat
ebe
nef
itf
romt
hei
mpl
eme
ntat
io
nofGo
odsandS
erv
ice
sTax(
GST)
.The
l
ongt
ermb
ene
fi
tre
qui
rest
hep
ati
enc
eofc
it
iz
ens
.

S
omeo
fthemaj
ors
ect
orst
hathav
ebe
enaf
fe
cte
dbyt
hei
mpl
eme
ntat
io
nofGS
Tar
e– 

 Exp
ort
-Imp
orts
ect
or

 Re
ale
stat
e

 Ent
ert
ainme
nti
ndus
try

 Ho
telandt
our
ism

 Lo
gis
ti
csi
ndus
try

 Banki
ngs
ect
or

 Go
ldi
ndus
try

 Te
xti
l
e/r
eadymadegar
ments
ect
or

 Iti
ndus
try

 Fmc
gindus
try

2.
2:EXPORTAND IMPORTSECTOR
Be
for
ethee
nfo
rce
mento
ftheGo
odsandS
erv
ice
sTax(
GST)
,Ex
por
tandImp
ortwe
rego
ver
ned
b
ytheS
erv
iceTax,Val
ueAdde
dTax,Exc
iseDut
yandCus
tomsDut
y.The
sewe
rei
mpo
sed
o
ntheImp
ortandExp
ortgo
odsands
erv
ice
s.Whe
nGo
odsandS
erv
ice
sTax(
GST)was
i
ntr
oduc
edal
lthe
set
axe
swe
reme
rge
dint
oone
.Butt
heBas
icCus
tomsDut
y(BCD)c
ont
inue
s
t
owo
rko
nthei
mpo
rtb
il
ls
.

12
2.
3:REALESTATEAND PROPERTY
Wec
ans
eet
hep
osi
ti
vei
mpac
tofGS
Tonp
rop
ert
ybuye
rs.12%GS
Tchar
geso
fpr
ope
rtyv
alue
ar
eli
abl
eonal
lunde
rco
nst
ruc
ti
onp
rop
ert
ie
s,e
xcl
udi
ngt
her
egi
st
rat
io
nchar
gesandS
tamp
dut
y.Ear
li
erp
rov
isi
oni
sap
pli
cab
leo
nther
eadyp
rop
ert
y.I
nputt
axc
redi
t
swi
l
linc
reas
epr
ofi
t
mar
ginsf
orde
vel
ope
rso
rbui
lde
rs,whi
chf
urt
hert
rans
fer
sbe
nef
it
stot
heHo
meb
uye
rs.

2.
4:ENTERTAINMENTINDUSTRY
TheGS
Trat
efo
rent
ert
ainme
nts
erv
ice
svar
iesf
rom 18% t
o28%.The
set
axr
ate
sar
edi
ff
ere
nt
i
ndi
ff
ere
nts
tat
eswhi
chde
pendo
nthet
ypeo
fent
ert
ainme
nts
erv
iceo
rpr
oduc
t.Thes
tat
eswhe
re
Thee
nte
rtai
nme
nts
erv
icet
axwashi
ghe
rthan28%,GS
T wi
llde
cre
aset
heo
ver
allc
osto
f
e
nte
rtai
nme
nt.

2.
5:HOTELAND TOURISM
To
uri
smandho
teli
ndus
tryp
layani
mpo
rtp
artt
ogr
owI
ndi
a’sGDP.

GS
Trat
esf
orho
tel
sar
edi
ff
ere
ntac
cor
dingt
othe
irt
ari
ff
s:

 Lesst
hanRs.1000=0%(
GSTf
ree)

 Rs.1000t
o2500=12%

 Rs.2500t
o7500=18%

 Abov
eRs.7500=28%
Iti
sexp
ect
edt
hatt
hec
osto
fto
urp
ackage
smayc
omedo
wnduet
other
eli
eft
oto
uro
per
ato
rs
unde
rGS
Tre
gime
.5%t
axi
sli
abl
eont
ouro
per
ato
rsc
urr
ent
ly.

2.
6:LOGISTICSINDUSTRY
Thel
ogi
st
ic
sindus
tryi
stheb
ackb
oneo
fIndi
ane
cono
myandi
tise
sti
mat
edt
obewo
rthab
out
$200upt
o2021.Af
te
rtheGS
T,t
het
imet
aki
ngc
lear
anc
epr
oce
sshasb
eco
mee
asyi
.el
ess
t
rans
itt
ime
.Co
rrup
ti
onac
ti
vi
ti
esar
ere
duc
edi
nlo
gis
ti
cse
rvi
ces
.GS
Tre
duc
est
heo
ver
allc
osto
f
l
ogi
st
ic
sse
rvi
cesandi
ncr
eas
esb
usi
nes
sre
venue
.

13
2.
7:BANKINGSECTOR
18% GS
Trat
esl
evi
edo
nbanki
ngs
erv
ice
sli
kei
nsur
anc
epo
li
ci
es,ATM t
rans
act
io
nse
tc.The
e
arl
ie
rtaxr
atewas15%.Banki
ngandf
inanc
ials
erv
ice
sbe
comec
ost
ly.

GS
Thasr
educ
edi
ndi
rec
ttaxe
s,i
.e
.Eas
eofdo
ingb
usi
nes
sint
heb
ank
ingandf
inanc
ials
ect
or
Whi
chl
eadst
oinc
reas
einb
usi
nes
s.Itwi
l
linc
reas
ede
mandf
orf
undsanddi
git
alt
rans
act
i
ons
i
ntheb
anki
ngi
ndus
try.

2.
8:GOLD INDUSTRY
18% GS
Trat
esl
evi
edo
nbanki
ngs
erv
ice
sli
kei
nsur
anc
epo
li
ci
es,ATM t
rans
act
io
nse
tc.The
go
ldi
ndus
tryi
stheb
igge
stmar
keti
nthewo
rld.GS
Tont
hego
ldi
ndus
tryhi
t
stoc
ons
ume
rs.
3% GS
Trat
ethati
sap
pli
cab
let
o10% i
mpo
rtdut
yand5%,mak
ingc
har
geswhi
chl
eadt
o
r
isi
ngt
hej
ewe
ll
eryp
ric
esi
nIndi
a.Thede
mandf
orGo
ldmayf
all50t
o70p
erc
ent
.Butt
her
eis
mo
ret
rans
par
enc
yint
hego
ldi
ndus
tryduet
otheGS
Timp
leme
ntat
i
on.Itwi
llde
fi
nit
el
ytur
nin
ap
osi
ti
vei
mpac
tonal
ongt
erm.

2.9:TEXTILE/
READYMADEGARMENT
SECTOR
Te
xti
lei
ndus
trywi
llb
ebe
nef
it
te
dthr
oughGS
Timp
leme
ntat
i
oni
nIndi
a.Re
ady-
madegar
ment
s
upt
oRs
.1000i
sexe
mpt
edf
rom GS
Tandb
rande
dgar
ment
sab
oveRs
.1000wi
llb
etaxe
dat
12%.

2.
10:ITINDUSTRY
Al
lITs
erv
ice
sands
oft
war
epr
oduc
ts,aswe
llasf
ree
lanc
ers
,ar
ele
vie
d18%GS
Trat
e.Ov
eral
l
p
osi
ti
vei
mpac
ton IT i
ndus
tryo
fGS
T.Cas
cadi
ng e
ff
ecti
sre
mov
edt
hro
ugh GS
T
i
mpl
eme
ntat
io
n.ITwi
llmakec
hange
sint
hep
roc
esso
fbus
ine
ssp
roc
ess
.ITCunde
rGS
Twi
ll
Br
ingdo
wnt
heo
per
ati
ngc
ost
sandi
ncr
eas
ethep
rof
it
abi
li
tyo
ftheI
Tindus
try.

2.
11.FMCGINDUSTRY
FMCGs
ect
ori
soneo
ftheb
igge
ste
cono
micp
lat
for
msi
nIndi
a.Af
te
rtheGS
Timp
leme
ntat
io
n,
Mo
stl
yFMCGp
roduc
tsands
erv
ice
sar
etaxe
dunde
r18t
o20p
erc
ent
.Lo
werGS
Trat
es,gi
ve
Be
nef
it
stot
heb
usi
nes
sho
lde
r,manuf
act
ure
rsandc
ons
ume
rsdi
rec
tl
y.

14
 CHAPTER3:

DATAFINDING
& ANALYSISOF
GST

15
FIGURE3.
1:IMPACTOFGSTON RETAILINDUSTRY

S
our
ces
:wo
rdp
res
s.c
om

Af
te
rthei
mpl
eme
ntat
io
noft
heGS
T,wec
ans
eeb
othi
tsp
osi
ti
veandne
gat
iv
eef
fe
ctso
n
di
ff
ere
nti
ndus
tri
es.Manys
ect
orsl
ikemanuf
act
uri
ng,e
lec
tro
nic
s,t
el
eco
m,FMCG,e
duc
ati
on,
b
anki
ng,j
ewe
ll
ery,t
our
ism,l
ogi
st
ic
s,ITe
tc.ar
ethei
mpo
rtantp
arto
ftheIndi
ane
cono
my.
Thep
osi
ti
vei
mpac
toft
heGS
Tons
uchs
ect
orsi
sse
eni
nthef
ormo
fec
ono
micde
vel
opme
nto
f
t
hec
ount
ry.

16
FIGURE3.
2:IMPACTOFGSTON RETAILINDUSTRY

S
our
ces
:ht
tps
://
hol
is
oll
ogi
st
ic
s.c
om

Be
lowf
ivef
act
orswi
lls
igni
fi
cant
lyc
hanget
hedynami
cso
f t
her
etai
lse
cto
rinIndi
a:
a.Re
duc
edt
axe
s– 
hemai
nimp
acto
fGS
Tonr
etai
le
rswi
llb
eas
igni
fi
cantr
educ
ti
ono
fthe
t
axb
urde
nont
her
etai
le
rs.

b
.Se
aml
essInp
utt
axc
redi
t– 
GSTwi
llmakeani
mpac
tbye
li
minat
ingt
hec
asc
adi
nge
ff
ect
o
ftaxe
sthe
reb
yre
duc
ingt
het
ot
alt
axb
urde
nont
her
etai
lse
cto
r.

c
.Inc
reas
edS
upp
lyc
hai
nef
fi
ci
enc
y–Thei
mpac
tofGS
Twi
llb
eev
ide
nto
nsup
plyc
hai
ns,
ast
hei
rde
signswo
uldb
eef
fi
ci
enc
y-o
rie
nte
dandno
tinal
ignme
ntwi
tht
het
axat
io
nsys
tem.

d.Taxo
ngi
ft
sandp
romo
ti
onali
te
ms– 
Asp
ert
hemo
delGS
Tlaw,anys
upp
lywi
tho
utany
c
ons
ide
rat
io
nwi
llat
tr
actt
ax.

e
.Be
tt
erOp
por
tuni
ti
es& Gr
owt
hofRe
tai
lMar
ket– 
Upo
nimp
leme
ntat
io
nofGS
T,anal
yst
s
p
redi
ctuni
fi
cat
io
nofmar
ket
s.

17
 FIGURE3.
3:IMPACTOFGSTON COMMON PEOPLE’
S
SPENDING:

Fi
nal
ly,Indi
a'sb
igge
stt
axr
efo
rm -Go
odsands
erv
iceTax(
GST)i
sar
eal
it
y.Ye
s,af
te
ral
ot
o
fsp
ecul
ati
onar
oundt
het
ime
lyi
mpl
eme
ntat
io
n,GS
Thasb
eenr
oll
edo
ut.

Aswehav
esayi
ng,GS
Tisamuc
h-ne
ede
dec
ono
micr
efo
rm.Its
houl
dev
ent
ual
lye
xpand
Indi
a'snar
rowt
axb
aseandi
ncr
eas
ego
ver
nme
ntr
eve
nue
s.

Thats
aid,e
ver
yco
inhast
wos
ide
s.GS
Tisnoe
xce
pti
on.Itwi
llhav
eit
sfai
rshar
eofc
hao
sin
t
hec
omi
ngmo
nths
.The
rec
oul
dbep
rot
est
sac
ros
sthec
ount
ryo
vert
axr
ate
sandc
omp
li
anc
e
b
urde
nsandi
tco
uldaf
fe
ctt
hes
moo
thf
unc
ti
oni
ngo
fthee
cono
my.

Whi
leGS
T wi
lli
mpac
tbus
ine
sse
sandi
ndus
tri
esi
nab
igway,i
two
n'tdi
rec
tl
yaf
fe
ctt
he
s
alar
iedc
las
sands
elf
-emp
loye
dpe
rso
nne
l(AamAadmi
).S
inc
eiti
sani
ndi
rec
ttax,i
tdo
esno
t
c
hanget
hewayt
heyp
ayt
hei
rpe
rso
nalt
axe
s.Theo
nlyi
mpac
tthe
ywi
lls
eewo
uldb
eduet
othe
c
hangei
nrat
eso
fthego
odsands
erv
ice
sthe
yav
ail
.

18
 FIGURE3.
4:COMPONENTANALYSISOFGSTGROSS
COLLECTION IN INDIA

S
our
ces
:ht
tps
://
star
tup
tal
ky.
com

Anal
ysi
s–

 Av
eragemo
nthl
ygr
ossc
oll
ect
io
nsi
ncet
heGS
Tint
roduc
edup
-ti
llmo
ntho
fJune2019i
s
INR96,
048c
ror
es,wi
thi
mpr
ovi
ngav
erageo
vert
heye
ar.

 Fr
omAugus
t2017t
oMar
ch2018,av
eragemo
nthl
ygr
ossc
oll
ect
io
nwasINR89,
705
c
ror
es

 Dur
ing2018-
19av
eragemo
nthl
ygr
ossc
oll
ect
io
nwasr
eco
rde
dat98,
114c
ror
es,whi
ch
was9.
37%hi
ghe
rthan2017-
18(
Fro
mAugus
t2017)
.

 Fo
rongo
ingf
is
calye
ar2019-
20,t
il
lmo
ntho
fJuneav
eragemo
nthl
ygr
ossc
oll
ect
io
nis
1,
04,
698c
ror
es,whi
chi
s6.
71%hi
ghe
rthanmo
nthl
yav
erageo
f2018-
19and16.
71%
hi
ghe
rthan2017-
18(
Fro
mAugus
t2017)
.

19
 FIGURE3.
5:TREND OFGSTCOLLECTION IN INDIA

S
our
ces
:ht
tps
://
taxgur
u.i
n

Anal
ysi
s–

Thet
ot
algr
ossGS
Tre
venuec
oll
ect
edi
nthemo
ntho
fJul
y,2019i
s 
₹1,
02,
083c
ror
e o
fwhi
ch
CGS
Tis
 ₹17,
912 
cro
re,S
GSTi
s ₹ 
25,
008 c
ror
e, 
IGS
Tis 
₹ 50,
612 c
ror
e (
inc
ludi
ng 
₹
24,
246 
cro
re 
col
le
cte
doni
mpo
rts
)andCe
ssi
s 
₹8,
551c
ror
e (
inc
ludi
ng 
₹797 
cro
re 
col
le
cte
don
i
mpo
rts
).Thet
ot
alnumb
ero
f GS
TR 3B Re
tur
ns 
fi
le
dfo
rthemo
ntho
fJuneupt
o31s
t 
Jul
y,
2019i
s 
75.
79l
akh.

Ther
eve
nuei
nJul
y,2018was
 ₹96,
483 
cro
reandt
her
eve
nuedur
ingJul
y,2019i
sagr
owt
h
o
f 5.
80% 
ove
rther
eve
nuei
nthes
amemo
nthl
astye
ar.Dur
ingAp
ril
-Jul
y2019v
is-
à-v
is2018,
t
hedo
mes
ti
cco
mpo
nenthasgr
own b
y 9.
2% 
whi
let
heGS
Toni
mpo
rtshasc
omedo
wn
b
y 0.
2% 
andt
het
ot
alc
oll
ect
io
nhasgr
ownb
y 6.
83%.
 Rs
.17,
789 
cro
re 
hasb
eenr
ele
ase
dtot
he
s
tat
esas
 GS
Tco
mpe
nsat
io
n f
ort
hemo
nthso
fAp
ril
-May,2019.

20
 CHAPTER4:

CONCLUSION &
RECOMMENDATION

21
 CONCLUS
ION

Pr
imar
il
y,t
hec
onc
epto
fGS
Twasi
ntr
oduc
edandp
rop
ose
dinIndi
aaf
ewye
arsb
ack
,but
i
mpl
eme
ntat
io
nhasb
eendo
neb
ythec
urr
entBJP go
ver
nme
ntunde
rtheab
lel
eade
rshi
pof
Pr
imeMi
nis
terS
hriNar
endr
aMo
dio
nJul
y1,2017.

Thene
wgo
ver
nme
ntwasi
nst
rongf
avo
rfo
rthei
mpl
eme
ntat
i
ono
fGS
TinI
ndi
abys
eei
ng
many p
osi
ti
vei
mpl
ic
ati
ons as di
scus
sed ab
ovei
nthe p
ape
r.Al
lse
cto
rsi
nIndi
a-
manuf
act
uri
ng,s
erv
ice
,te
lec
om,aut
omo
bil
eands
mal
lSMEswi
l
lbe
art
hei
mpac
tofGS
T.

Oneo
ftheb
igge
stt
axat
io
nre
for
m-GS
Twi
llb
indt
hee
nti
renat
i
onunde
ras
ingl
etax
ati
on
s
yst
emr
ate
.

Asf
ore
cas
tedb
yexp
ert
s,GS
Twi
lli
mpr
ovi
set
axc
oll
ect
i
onsandb
oos
tupIndi
a'se
cono
mic
de
vel
opme
ntandb
reakal
ltaxb
arr
ier
sbe
twe
enCe
ntr
alandS
tat
eGo
ver
nme
nts
.

Nodo
ubt
,GS
T wi
llgi
veIndi
aac
learand t
rans
par
entt
axat
i
ons
yst
em,b
uti
tisal
so
s
urr
ounde
dbyv
ari
ousc
hal
le
nge
s.The
rei
sne
edf
ormo
reanal
yti
calb
ase
dre
sear
chf
or
s
ucc
ess
fuli
mpl
eme
ntat
io
n.

22
 RECOMMENDATIONS
Go
odsandS
erv
iceTaxwasc
ons
ide
redt
obeane
pit
omeo
fthei
dealt
axme
chani
sm att
het
i
me
o
fit
simp
leme
ntat
io
n.Theas
sump
ti
oni
sso
mewhe
rep
rov
edr
ightast
he 
GSTs
yst
em 
has
r
educ
ede
ff
ect
iv
etaxr
ate
sandb
oos
teds
upp
lyc
hai
nef
fi
ci
enc
ieso
fbus
ine
sse
s.Ont
heo
the
rhand,
i
tisal
sop
rev
ale
ntt
hatt
hes
yst
emi
sno
tatal
lsi
mpl
eandhasb
urde
nedt
het
axp
aye
rev
enmo
re
wi
tht
ax-
fi
li
ngc
omp
lexi
ti
es.

No
witi
sinv
ari
abl
yne
ede
dtoi
ntr
oduc
eas
eto
fame
ndme
ntsc
ont
ri
but
ingt
owar
dst
hec
ert
aint
y
o
ftheGS
Tsys
tem.

S
tep
stoMakeGS
TMo
reCo
mpl
iant
:

 Re
duc
ti
oni
nNumb
ero
fTaxS
lab
sRat
es

 Ef
for
tl
essInp
utTaxCr
edi
tCl
aims

 S
pre
adi
ngt
heGS
TNe
t

 Re
nov
ati
ngITCS
yst
em

 Pr
act
ic
alTar
get
sfo
rGS
TCo
ll
ect
i
on

 Inc
ludi
ngS
omeExe
mpt
edGo
odsInGS
TRe
gime
:

 Le
tE-
wayb
il
lGoAway

23
CHAPTER5:

BIBLIOGRAPHY

24
 BIBLIOGRAPHY
 Ce
ntr
alBo
ardo
fExc
iseandCus
toms
,Mi
nis
tryo
fFi
nanc
e.(
2017)
.
 Go
odsandS
erv
ice
sTaxCo
unc
il
.(2017)
.
 ht
tp
s:/
/wo
rdp
res
s.c
om
 ht
tp
s:/
/ho
li
sol
lo
gis
ti
cs.
com
 ht
tp
s:/
/st
art
upt
alk
y.c
om
 ht
tp
s:/
/tax
gur
u.i
n
 Wi
ki
pedi
a,t
hef
reec
ont
ente
ncyc
lop
edi
a

25
CHAPTER6:

QUESTIONNAIRE

26
 QUES
TIONNAIRE
De
arS
ir/Madam,

Thankyouforv
isi
ti
ngus .Byf
il
li
ngo
utt
his5-
10mi
nut
esur
vey,yo
uwi
l
lhe
lpus
obt
aint
heve
rybe
stres
ult
s.

1.Ge
nde
r:
 Mal
e
 Fe
mal
e

2.Agegr
oup
:
 <20
 21-
30
 31-
40
 41-
50
 51-
60
 60+

3.Whi
cho
fthef
ol
lo
wingde
scr
ibe
syo
ube
st?
 S
tude
nt
 Emp
loye
d
 S
elfe
mpl
oye
d
 Re
ti
red
 No
tEmp
loye
d

4.Pl
eas
eindi
cat
eyo
urr
esi
dent
i
all
ocat
i
on
I
ndi
a
Ot
herc
ount
ry:___
___
___
_____

27
5.Doyoufeelt
hattheint
roduct
io
nofGS
TinI
ndi
ahasaf
fe
cte
dthe
de
mandfort
hep ro
duct/
ser
vices
?
☐ Posi
ti
vely
☐ Negati
vely
☐ Noimp act

6.Doyouthi
nktransi
t
iont
oGS
TRe
gimewas?
☐S moothe
r
☐ Diff
ic
ult
☐ Verydif
fic
ult

7.Areyoufaci
nganysi
gni
fi
canti
ssue
sinc
omp
li
anc
ewi
t
he-
wayb
il
l
mec
hani
sm?
☐ Yes
☐ No
☐ Notappl
ic
abl
e

8.Ar
eyoufaci
ngiss
uesinc
lai
mingr
efundunde
rtheGS
Tre
gime
?
☐ Ye
s
☐ No
☐ Notappl
ic
able

9.Ho wcantheGS TN port

albemadeus erfri
endl
y?Pl e
asestat
e
somesuggest
ionsbel
ow:
_______________________________________________________
_______________________________________________________
_______________________________________________________
___

28