A

Project Report
On
Basics of GST

Guided by Submitted by
Abhishek Rathore Rupal Bothra
MBA 2nd Sem
 Certificate of Approval

This is to certify that the project work entitled “Basics of GST” is

carried out by “Rupal Bothra”, a student of MBA 2 nd Sem at “Bhilai
Steel Plant” is here by approved as a credible work in discipline of
commerce and management for the award of degree of “Master of
Business Administration’ ’during the year 2022-2023.

P Marathe
(Head of training cell)
 Declaration/Self Certificate

This is to certify that the project work entitled “Basics of GST” which is
submitted by me in the partial fulfillment for the award of degree of
“Master of Business Administration” “Bhilai Steel Plant” comprises the
original work carried out by me.

I further declare that the work reported in the project has not been
submitted & will not be submitted, either in part or in full award of any
other degree or diploma in this institute or any other institute or
university.

PLACE:- Bhilai NAME:- Rupal Bothra

DATE: -
 Acknowledgement

I am deeply indebted to many people for the successful completion of

this project the report has been prepared for training learning that has
been done in the organization Bhilai Steel Plant to study the GST in the
Finance Department.
The aim of this training is to be familiar with the concepts of GST with
the help of theoretical Knowledge and to study its impact of the same. I
consider it a privilege to express through the pages of this report, a few
words of gratitude and respect to

▪ CA Abhishek Rathore (Company Mentor) for his timely

suggestions and valuable guidance.
To all the other faculties of ‘Sai college Bhilai sec 6 , I express my
deepest gratitude . However, I accept the sole responsibility for any
possible errors of omission and would be extremely grateful to the
readers of this project report if they bring such mistakes to my notice.

Rupal Bothra
MBA 2 nd Sem
 Preface

This project report has been prepared in partial fulfillment of the

requirement for the subject: The research report on the topic ‘Basics of
GST’ in Bhilai Steel Plant at CG in MBA 2 nd Semester in the academic
year 2022-2023.
For the introduction of GST the government needs to get the
Constitution Amendment Bill passed so that the proposed objective of
subsuming all taxes and allowing states to tax subjects in Union list and
Vice- Versa is achieved .
Applying the decided rate by the govt in the public sector undertaking
like BSP plant.
 Executive Summary
During the tenure of the internship, with the help of theoretical as
well as practical approach the basic crux of GST in BSP has been
learned.
The one-month duration of my training was comprehensive learning for
me. Exposure to various theoretical aspects of GST has been done
through regular meetings in the office, where the discussion regarding
GST used to take place. The various important terminologies were made
familiar during the internship. Some of them are, Time of supply.
Registration, Mixed and Composite supply, Job worker etc.
All the above concepts were the backbone of my learning, and a better
understanding has been developed to interrelate other things and perform
practically. During my training, an opportunity to visit the plant which is
36sq.km in the area was given to me. Since it was huge to cover up and
visit every single unit inside the plant. Only a few of them were visited
due to time constraint, Convertor shop, Plate Mill, Rail Mill and Blast
Furnace, Coke oven. The highly advanced machines and automated
systems startled. Proper guidance was explained in detail about the
whole process from niche to the final product.
Content
1.Certificate of Approval………………..pg2
2.Certificate of Guide……………………pg3
3.Declaration / Self certificate………….pg4
4. Acknowledgement……………………pg5
5. Preface………………………………...pg6
6. Executive summary…………………..pg7
7. Table of Content……………………….pg8
8. Company Profile………………………pg9-13
9. Introduction to GST…………………...pg14-17
10. Features of GST……………………..pg18-19
11. Sections followed by BSP…………..pg20-26
12. Conclusion…………………………….pg27
Company Profile

Steel Authority of India Limited (SAIL) is a central public sector

undertaking based in New Delhi, India. It is under the ownership of the
Ministry of Steel, Government of India with an annual turnover of INR
1,03480 Crore (US$13billion) for fiscal year 2021-22. Incorporated on
24 January 1973, SAIL has 60,766 employees (as of 1 st October 2022).
With an annual production of 16.30 million metric tons, It is the largest
government owned steel producer. The hot metal production capacity of
the company will further increase and is expected to reach a level of 50
million tons per annum by 2025.
Steel Authority of India Limited

Native name SAIL

Type Central Public Sector

Undertaking

Traded as NSE: SAIL

BSE: 500113
LSE: SAUD

Industry Steel

Founded 19 January 1954; 69

years ago

Headquarters New Delhi, India

Key people Soma

Mondal (Chairman)[1]

Products Steel, flat steel products,

long steel products, wire
products, Wheel & axle
for indian railways,
 plates

Revenue ₹103,480
crore (US$13 billion)
(2022)[2]

Operating ₹17,060
income crore (US$2.1 billion)
(2022)[2]

Net income ₹12,250

crore (US$1.5 billion)
(2022)[2]

Total assets ₹126,927

crore (US$16 billion)
(2020)[2]

Owner Ministry of
Steel, Government of
India

Number of 60,766 (1 October 2022)

employees

Subsidiaries ● NSPCL

Website www.sail.co.in

SAIL operates and owns five integrated steel plants at Bhilai, Rourkela,
Durgapur, Bokaro and Burnpur (Asansol) and three special steel plants
at Chandrapur. According to the recent survey, SAIL is one of India’s
fastest growing Public Sector Units . The psu also has an R&D Centre
for Iron &Steel(RDCIS) and a Centre for Engineering in Ranchi ,
Jharkhand.
This leadership of free ,India took a visionary decision to set up
integrated steel plants under the exclusive responsibility of the state
owing to massive investment needed for creating additional steel
capacity , which private industry would not be able to mobilize and the
cardinal role steel would play in rapid economic advancement as a major
step towards this goal , govt of India and USSR entered in to an
agreement signed at New Delhi on 2 nd march 1955, for the establishment
of an integrated Iron and Steel works at bhilai with an initial capacity of
one million tonnes of ingot steel.
The main consideration responsible for setting up the plant at bhilai,
was the availability of iron ore at Delhi – Rajhara at a distance of about
90 km from the site lime stone from Nandini at 22 km and dolomite at
HIRRI at 41 km .
The plant was commissioned with the inauguration of the first blast
furnace by the president of India. Dr Rajendra Prasad on 4 th feb1959.
Plant was soon expanded to 2.5 million tons in Sep 1967 and in further
expansion to 4 MT stage was completed in 1988.
The main focus in the 4MT stage was on the continuous casting unit and
the plate mill , a new technology in steel casting and shaping for any
integrated steel plant to India during those times.
Arcelor Mittal (SA) is looking to set up a joint venture(JV) factory in
India with state owned Steel Authority of India Ltd (SAIL),To
manufacture high end steel products which could be used in defense and
satellite industries .
PLANT CAPACITY

❖ Crude Steel-6.20MTPA

❖ Saleable Steel-5.70MTPA

EXPANSION PLAN

❖ BY 2025- Increase in saleable steel production,4.60MTPA to

6.20MTPA.
❖ POST 2025-Expansion of another 5 MTPA is on the cards.

BSP Finance Department Entrance

Introduction to GST:-
The idea of moving towards GST was first mooted by the Union Finance
Minister in his budget speech for 2006-7. Initially, it was proposed that
GST would be introduced from 1st april 2010. Joint working groups of
officials having representatives of the states as well as the centre were
set up to examine various aspects of GST and draw up reports
specifically on exemptions and thresholds, taxation of services and
taxation of inter state supplies.

The introduction to goods and service tax (GST) is a very significant

step in the field of Indirect taxes .From the consumers point of view , the
biggest advantage would be in terms of reduction in the overall tax
burden on goods , which is currently estimated to be around 25%-30%.

GST and Centre –State Financial Relations

Currently, fiscal powers between the Centre and states are clearly
demarcated in the Constitution with almost no overlap between the
respective domains. The center has the powers to levy tax on the
manufacture of goods while the states have the powers to levy tax on
sale of goods.

Import of goods and services would be treated as inter- state supplies

and would be subject to IGST in addition to the applicable customs
duties.
Exports would be zero – rated supplies. Thus goods and services that are
exported would not suffer input taxes or taxes on finished products.
The laws , regulations and procedures for levy and collection of CGST
and SGST would be harmonized to the extent possible.
The whole GST system will be backed by a robust IT system. In this
regard , goods and service tax network (GSTN) has been set up by the
government . It will provide front end services and will also develop
back end IT modules for states who opted for the same.

Concept of GST
1. The Journey of GST in India:-

The GST journey began in the year 2000 when a committee was set up
to draft law. It took 17 years from then for the Law to evolve. In 2017,
the GST Bill was passed in the Lok Sabha and Rajya Sabha. On 1st July
2017, the GST Law came into force.

2. Objectives Of GST:-

To achieve the ideology of ‘One Nation, One Tax’

GST has replaced multiple indirect taxes, which were existing under the
previous tax regime. The advantage of having one single tax means
every state follows the same rate for a particular product or service. Tax
administration is easier with the Central Government deciding the rates
and policies. Common laws can be introduced, such as e-way bills for
goods transport and e-invoicing for transaction reporting. Tax
compliance is also better as taxpayers are not bogged down with
multiple return forms and deadlines. Overall, it’s a unified system of
indirect tax compliance.

3.To subsume a majority of the indirect taxes in India:-

India had several erstwhile indirect taxes such as service tax, Value
Added Tax (VAT), Central Excise, etc., which used to be levied at
multiple supply chain stages. Some taxes were governed by the states
and some by the Centre. There was no unified and centralized tax on
both goods and services. Hence, GST was introduced. Under GST, all
the major indirect taxes were subsumed into one. It has greatly reduced
the compliance burden on taxpayers and eased tax administration for the
government.

4.To eliminate the cascading effect of taxes :-

One of the primary objectives of GST was to remove the cascading

effect of taxes. Previously, due to different indirect tax laws, taxpayers
could not set off the tax credits of one tax against the other. For
example, the excise duties paid during manufacture could not be set off
against the VAT payable during the sale. This led to a cascading effect
of taxes. Under GST, the tax levy is only on the net value added at each
stage of the supply chain. This has helped eliminate the cascading effect
of taxes and contributed to the seamless flow of input tax credits across
both goods and services.

5.To curb tax evasion :-

GST laws in India are far more stringent compared to any of the
erstwhile indirect tax laws. Under GST, taxpayers can claim an input tax
credit only on invoices uploaded by their respective suppliers. This way,
the chances of claiming input tax credits on fake invoices are minimal.
The introduction of e-invoicing has further reinforced this objective.
Also, due to GST being a nationwide tax and having a centralized
surveillance system, the clampdown on defaulters is quicker and far
more efficient. Hence, GST has curbed tax evasion and minimized tax
fraud from taking place to a large extent.

6.To increase the taxpayer base:-

GST has helped in widening the tax base in India. Previously, each of
the tax laws had a different threshold limit for registration based on
turnover. As GST is a consolidated tax levied on both goods and
services both, it has increased tax-registered businesses. Besides, the
stricter laws surrounding input tax credits have helped bring certain
unorganized sectors under the tax net. For example, the construction
industry in India.

7.Online procedures for ease of doing business:-

Previously, taxpayers faced a lot of hardships dealing with different tax
authorities under each tax law. Besides, while return filing was online,
most of the assessment and refund procedures took place offline. Now,
GST procedures are carried out almost entirely online. Everything is
done with a click of a button, from registration to return filing to refunds
to e-way bill generation. It has contributed to the overall ease of doing
business in India and simplified taxpayer compliance to a massive
extent. The government also plans to introduce a centralized portal soon
for all indirect tax compliance such as e-invoicing, e-way bills and GST
return filing.

8. An improved logistics and distribution system :-

A single indirect tax system reduces the need for multiple

documentation for the supply of goods. GST minimizes transportation
cycle times, improves supply chain and turnaround time, and leads to
warehouse consolidation, among other benefits. With the e-way bill
system under GST, the removal of interstate checkpoints is most
beneficial to the sector in improving transit and destination efficiency.
Ultimately, it helps in cutting down the high logistics and warehousing
costs.

9 .To promote competitive pricing and increase consumption :-

Introducing GST has also led to an increase in consumption and indirect

tax revenues. Due to the cascading effect of taxes under the previous
regime, the prices of goods in India were higher than in global markets.
Even between states, the lower VAT rates in certain states led to an
imbalance of purchases in these states. Having uniform GST rates have
contributed to overall competitive pricing across India and on the global
front. This has hence increased consumption and led to higher revenues,
which has been another important objective achieved.
Features of GST
Sections Followed by BSP in tax:
LEVY AND COLLECTION OF TAX
Sec7: Scope of supply:-
(1) For the purposes of this Act, the expression “Supply”
(a) All forms of supply of goods and services or both such as sale,
transfer, barter exchange, license, rental, lease or disposal made
or agreed to be made for a consideration by a person in the
course of Furtherance of business.
Sec8: Tax liability on composite and mixed supplies – The
tax liability on composite or a mixed supply shall be determined in the
following manner, namely:-
a) A composite supply comprising two or more supplies, one of
which is a principal supply, shall be treated as a supply of such
principal supply.
b) A mixed supply comprising two or more supplies shall be treated
as a supply of that supply which attracts the highest rate of tax.

Sec 9: Levy and collection-

Sec10- Composition levy:-
Sec 12: -Time and supply of goods
Sec 15: - Value of Taxable supply
SECTION16
SECTION17 Appointment of credit and blocked credits: -
 Conclusion
I conclude my words that the above project I made under the supervision
of Abhishek Rathore the guide of my project after over all study I get to
know what is GST and taxes which applied in the firm and the govt
body in short GST is help to build transparent and corruption free tax
administration, GST also has an optional scheme of lower taxes for
small businesses with turnover between INR 20 to 1 Crores, It is called
the composition scheme.
In Short Bhilai Steel Plant is the public sector enterprise contributing to
building a strong and resilient nation.