A

PROJECT REPORT
ON

“TO UNDERSTAND THE GST IMPLEMENTATION, AWARENESS, AND THE

PROCESS IN THE ORGANIZATION.”

1
 INDEX

Sr.No PARTICULARS PAGE NO.

From To
Declaration 5 5
Acknowledgment 6 6
Certificate 7 7
CHAPTER ONE
1.1 Introduction 8 8
1.2 Research Problem 9 9
1.3 Statement of Research Problem 10 10
1.4 Scope of the study 12 12
a) Conceptual analysis
b) Geographical analysis
c) Analytical analysis
1.5 Objectives of the study 12 12
1.6 Research Methodology 12 13
Survey & analysis
1.7 Data Analysis 13 14
CHAPTER TWO
2.1 Introduction of goods and service tax 14 23
2.2 Core concept and citation 24 41
CHAPTER THREE
3.1 Company Profile 43 43
3.2 History of the organization 43 44
3.3 Product Portfolio 44 45
3.4 Organizational structure
3.5 Vision of organization 45 45
CHAPTER FOUR
4.1 Research Methodology (Survey and its Analysis) 47 55
4.2 Limitations 56 56
2
 CHAPTER FIVE
5.1 Conclusion 58 59
5.2 Findings 59 60
5.3 Suggestions/Recommendations 61 61
5.4 Annexure 62 62
5.5 Bibliography

3
DECLARATION

4
ACKNOWLEDGEMENT

5
CHAPTER ONE

6
 1.1 INTRODUCTION
Tax policies play an important role on the economy through their impact on both efficiency and
equity. A good tax system should keep in view issues of income distribution and, at the same time,
also endeavor to generate tax revenues to support government expenditure on public services and
infrastructure development.
The introduction of Goods and Services Tax (GST) would be a very significant step in the field of
indirect tax reforms in India. By amalgamating many Central and state taxes into a single tax, it would
mitigate cascading or double taxation in a major way and pave the way for a common national
market. From the consumer point of view, the biggest advantage would be in terms of a reduction in the
overall tax burden on goods, which is currently estimated at 25%- 30%.The introduction of GST also
made our products competitive in the domestic and international markets.
It leads to the abolition of taxes such as Octroi, Central Sales Tax, State level Sales Tax, Entry Tax,
Stamp duty, Telecom License Fees, Turnover Tax, Tax on Consumption or Sale of Electricity, etc. It
has also improved the government's fiscal health as the tax collection system has become more
transparent, making tax evasion difficult. CAG Mr. Vinod Rai in his inaugural address to the
National Conference on GST had put forth the concept as "An integrated scheme of taxation that does
not discriminate between goods and services and is a part of the proposed tax reforms that center on
evolving an efficient and harmonized consumption tax system in the country."
GST stands for Goods and Service Tax. It was first initiated in 1986 by Vishwanath Pratap Singh 7th
Prime Minister of India. After that in 2007, the current government proposed to implement GST and
presented the same in Lok Sabha in 2011. In Dec 2014 GST again presented in Lok Sabha and in same is
passed in 2015. After approval of Rajya Sabha same is called as 101th amendment of the Constitution
and was finally rolled out on 1 July 2017. After the passage of 25 years of economic reforms in the
indirect taxes it finally got a revolutionary change in the form of GST.

GST is defined as the giant indirect tax structure designed to support and enhance the economic
growth of a country. More than 150 countries have implemented GST so far. However, the idea of
GST in India was mooted by Vajpayee government in 2000 and the constitutional amendment for the
same was passed by the Lok Sabha on 6th May 2015 and was ratified by the Rajya Sabha and
implemented on 1st July 2017.

1.2 RESEARCH PROBLEM

"Assessing the effectiveness of GST implementation in promoting economic growth and reducing tax
evasion in India."
7
This research problem could involve analyzing data and conducting surveys to evaluate the impact of GST
on businesses, consumers, and the overall economy. The study could also examine the challenges faced
during the implementation of GST, such as changes in tax compliance requirements and adjustments to
business processes. Additionally, the research could investigate the role of GST in curbing tax evasion and
boosting government revenue.

1.3 STATEMENT OF RESEARCH PROBLEM

“Analyzing the impact of GST on small and medium-sized enterprises (SMEs) in India. A study of
compliance costs, pricing strategies, and business growth."

This research problem aims to examine the impact of GST on SMEs, which are an important driver of
economic growth in many countries. The study could analyze the compliance costs associated with GST
registration, filing of returns, and maintaining records. It could also investigate the pricing strategies
adopted by SMEs in response to GST, such as passing on the tax burden to consumers or absorbing it
within their profit margins. The study could further assess the effect of GST on the growth and
competitiveness of SMEs, including their ability to access credit, expand operations, and compete with
larger enterprises.

1.4 SCOPE OF THE STUDY

The scope of GST (Goods and Services Tax) generally includes the following:
1. Taxation: GST is a comprehensive indirect tax levied on the supply of goods and services. It aims to
replace multiple taxes like sales tax, service tax, excise duty, and others, with a single tax.
2. Coverage: GST is applicable to all businesses, including manufacturers, service providers, traders,
and exporters. It covers all goods and services, except those exempted or outside the purview of
GST.
3. Compliance: GST compliance involves registration, filing of returns, payment of tax, and
maintaining records. It has provisions for input tax credit, reverse charge mechanism, and tax
deducted at source.
4. Administration: GST is administered by a GST council comprising representatives from the central
and state governments. It has a common portal for taxpayers to register, file returns, and make
payments.
5. Impact: GST has significant implications for businesses, consumers, and the economy. It affects
pricing, supply chain, profitability, and competitiveness of businesses. It also impacts the
purchasing power and consumption behavior of consumers.
8
Overall, the scope of GST is wide-ranging, covering taxation, coverage, compliance, administration, and
impact.

A) Conceptual Analysis
A conceptual analysis of GST in India could explore the fundamental concepts and principles underlying the
implementation of the new tax regime. The analysis could focus on the following aspects:

1. Taxation: The concept of GST as a comprehensive indirect tax levied on the supply of goods and
services, replacing multiple taxes like sales tax, service tax, and excise duty.
2. Coverage: The concept of GST as applicable to all businesses, including manufacturers, service
providers, traders, and exporters, covering all goods and services except those exempted or outside the
purview of GST.
3. Compliance: The concept of GST compliance involving registration, filing of returns, payment of tax,
and maintaining records, with provisions for input tax credit, reverse charge mechanism, and tax
deducted at source.
4. Administration: The concept of GST administration by a GST council comprising representatives from
the central and state governments, with a common portal for taxpayers to register, file returns, and
make payments.
5. Impact: The concept of GST as having significant implications for businesses, consumers, and the
economy, affecting pricing, supply chain, profitability, and competitiveness of businesses, and
impacting the purchasing power and consumption behavior of consumers.

A conceptual analysis of GST in India could also examine the key features of the tax regime, such as the
threshold limit for registration, the composition scheme for small businesses, the classification of goods and
services under different tax rates, and the provisions for GST refunds and appeals. The analysis could further
explore the challenges and opportunities of GST implementation in India, including the need for capacity
building, technology adoption, and stakeholder engagement.

B) Geographical Analysis
A geographical analysis of GST (Goods and Services Tax) could focus on the implementation and impact of
GST across different regions or states within a specific country. The analysis could explore the following
aspects:

1. Adoption: The extent of adoption of GST by different states or regions within a country, including the
timing of adoption and the level of preparedness for the new tax regime.

9
 2. Compliance: The level of compliance with GST regulations by businesses operating in different
regions or states, including the rate of registration, filing of returns, and payment of taxes.
3. Impact: The impact of GST on the economy, businesses, and consumers in different regions or states,
including changes in tax revenue, business operations, pricing strategies, and consumer behavior.
4. Challenges: The challenges faced by businesses and governments in implementing GST in different
regions or states, including differences in tax rates, exemptions, and compliance requirements.
5. Opportunities: The opportunities created by GST for businesses and governments in different regions
or states, including the potential for increased tax revenue, improved business efficiency, and enhanced
competitiveness.

Overall, a geographical analysis of GST could provide insights into the variations in the adoption, compliance,
impact, challenges, and opportunities of GST across different regions or states, highlighting the need for
targeted policies and interventions to address specific issues.

C) Analytical analysis
An analytical analysis of GST (Goods and Services Tax) could involve a detailed examination of the key
features and provisions of the new tax regime in a specific country, such as India. The analysis could focus on
the following aspects:

1. Tax structure: The analysis could examine the tax structure under GST, including the different tax rates
for goods and services, the exemptions and cesses, and the classification of goods and services.
2. Input tax credit: The analysis could assess the provisions for input tax credit under GST, including the
eligibility criteria, documentation requirements, and the mechanism for claiming and utilizing the
credit.
3. Compliance: The analysis could evaluate the compliance requirements under GST, including the
registration process, the filing of returns, the payment of tax, and the maintenance of records, and the
role of technology in facilitating compliance.
4. Impact: The analysis could analyze the impact of GST on different stakeholders, including businesses,
consumers, and the government, in terms of tax revenue, economic growth, inflation, and job creation.
5. Challenges and opportunities: The analysis could identify the challenges and opportunities associated
with the implementation of GST, such as the need for capacity building, stakeholder engagement, and
technology adoption, as well as the potential for enhanced competitiveness, reduced tax evasion, and
increased tax compliance.

10
Overall, an analytical analysis of GST could provide a comprehensive assessment of the new tax regime in a
specific country, highlighting the strengths and weaknesses of the system, and identifying areas for
improvement and policy intervention.

11
1.5 OBJECTIVES OF THE STUDY
The main objectives of GST (Goods and Services Tax) in India are as follows:

 To understand the concept of goods and service tax

 To understand how GST works in India and in the organization
 To understand the benefits of GST over the current taxation system in India
 To understand the effect of GST on the Indian Economy

1.6 RESEARCH METHODOLOGY

 Secondary data
 Survey and analysis

1.7 DATA ANALYSIS

Data analysis on GST (Goods and Services Tax) in India can provide valuable insights into the
implementation and impact of the tax reform. Some areas where data analysis can be useful include:

1. Revenue collection: Data analysis can help to track the revenue collection under GST and compare it
with the revenue collection under the previous tax regime. This can provide insights into the
effectiveness of GST in broadening the tax base and increasing tax revenue.
2. Compliance rates: Data analysis can help to track the compliance rates under GST, such as the number
of registered taxpayers, the number of returns filed, and the amount of tax paid. This can provide
insights into the level of compliance among taxpayers and the effectiveness of the enforcement
measures taken by the authorities.
3. Sectoral impact: Data analysis can help to assess the sectoral impact of GST on different industries,
such as manufacturing, services, and agriculture. This can provide insights into the changes in demand,
production, and employment patterns in different sectors, as well as the overall impact on the
economy.
4. Cross-state trade: Data analysis can help to track the volume and value of inter-state trade under GST,
as well as the compliance rates among businesses engaged in cross-state trade. This can provide
insights into the effectiveness of the GST system in promoting a seamless flow of goods and services
across state borders.

12
Overall, data analysis can help to evaluate the effectiveness of GST in achieving its objectives and identify
areas where improvements can be made. It can also provide valuable insights for policymakers, businesses

CHAPTER TWO

13
2.1 Introduction

GOODS AND SERVICE TAX (GST)

The Goods and Services Tax has revolutionized the Indian taxation system. The GST Act was
passed in the Lok Sabha on 29th March, 2017, and came into effect from 1st July, 2017.
Goods & Services Tax Law in India is a comprehensive, multi-stage, destination-based tax that will
be levied on every value addition.
In simple words, GST is an indirect tax levied on the supply of goods and services. GST Law has
replaced many indirect tax laws that previously existed in India.
So, before Goods and Service Tax, the pattern of tax levy was as follows:

Under the GST regime, tax will be levied at every point of sale. Now let us try to understand “GST is
a comprehensive, multi-stage, destination-based tax that will be levied on every value addition.”

14
MULTI STAGE
There are multiple change-of-hands an item goes through along its supply chain : from manufacture
to final sale to consumer.
Let us consider the following case:

• Purchase of raw materials

• Production or manufacture

• Warehousing of finished goods

• Sale of the product to the retailer

• Sale to the end consumer

Goods and Services Tax will be levied on each of these stages, which makes it a multi- stage tax.
Value Addition
The manufacturer who makes shirts buys yarn. The value of yarn gets increased when the yarn is
woven into a shirt.
The manufacturer then sells the shirt to the warehousing agent who attaches labels and tags to each
shirt. That is another addition of value after which the warehouse sells it to the retailer.

15
The retailer packages each shirt separately and invests in the marketing of the shirt thus increasing its
value.

GST is levied on these value additions i.e., the monetary worth added at each stage to

achieve the final sale to the end customer.

DESTINATION BASED

Consider goods manufactured in Rajasthan and sold to the final consumer in Karnataka.

Since Goods & Service Tax (GST) is levied at the point of consumption, in this case

Karnataka, the entire tax revenue will go to Karnataka.

16
HISTORY OF GST IN INDIA

The reform process of India's indirect tax regime was started in 1986 by Vishwanath Pratap Singh,
Finance Minister in Rajiv Gandhi’s government, with the introduction of the Modified Value Added
Tax (MODVAT). Subsequently, Manmohan Singh, the then Finance Minister under P V Narasimha
Rao, initiated early discussions on a Value Added Tax at the state level. A single common "Goods and
Services Tax (GST)" was proposed and given a go-ahead in 1999 during a meeting between the then
Prime Minister Atal Bihari Vajpayee and his economic advisory panel, which included three former
RBI governors IG Patel, Bimal Jalan and C Rangarajan. Vajpayee set up a committee headed by the
then finance minister of West Bengal, Asim Dasgupta to design a GST model.

The Ravi Dasgupta committee was also tasked with putting in place the back-end technology and
logistics (later came to be known as the GST Network, or GSTN, in 2017) for rolling out a uniform
taxation regime in the country. In 2002, the Vajpayee

17
government formed a task force under Vijay Kelkar to recommend tax reforms. In 2005, the Kelkar
committee recommended rolling out GST as suggested by the 12th Finance Commission.

After the fall of the BJP-led NDA government in 2004, and the election of a Congress-
led UPA government, the new Finance Minister P Chidambaram in February 2006 continued work on
the same and proposed a GST rollout by 1 April 2010. However, in 2010, with the Trinamool
Congress routing CPI(M) out of power in West Bengal, Asim Dasgupta resigned as the head of the
GST committee. Dasgupta admitted in an interview that 80% of the task had been done.

In 2014, the NDA government was re-elected into power, this time under the leadership
of Narendra Modi. With the consequential dissolution of the 15th Lok Sabha, the GST Bill –
approved by the standing committee for reintroduction – lapsed. Seven months after the formation of
the Modi government, the new Finance Minister Arun Jaitley introduced the GST Bill in the Lok
Sabha, where the BJP had a majority. In February 2015, Jaitley set another deadline of 1 April 2017
to implement GST. In May 2016, the Lok Sabha passed the Constitution Amendment Bill, paving
way for GST. However, the Opposition, led by the Congress, demanded that the GST Bill be again
sent back to the Select Committee of the Rajya Sabha due to disagreements on several statements in
the Bill relating to taxation. Finally in August 2016, the Amendment Bill was passed. Over the next
15 to 20 days, 18 states ratified the GST Bill and the President Pranab Mukherjee gave his assent to
it.

A 22-members select committee was formed to look into the proposed GST laws. State and Union
Territory GST laws were passed by all the states and Union Territories of India except Jammu &
Kashmir, paving the way for smooth rollout of the tax from 1 July 2017.

18
ADVANTAGES OF GST:

19
WHY DO WE NEED GST?

Despite the success of VAT, there are still certain shortcomings in the structure of VAT, both at the
Centre and at the State level.

Justification at the central level:

 At present excise duty paid on the raw material

consumed is being allowed as input credit only. For other taxes and duties paid for post-
manufacturing expenses, there is no mechanism for input credit under the Central Excise
Duty Act.

 Credit for service tax paid is being allowed manufacturer/ service provider to a limited extent.
In order to give the credit of service tax paid in respect of services consumed, it is necessary
that there should be a comprehensive system under which both the goods and services are
covered.
 At present, the service tax is levied on restricted items only. Many other large numbers of
services could not be taxed. It is to reduce the effect of cascading of taxes, which means
levying tax on taxes.

Justification at the State level:

 A major defect under the State VAT is that the State is charging VAT on the excise duty
paid to the Central Government, which goes against the principle of not levying tax on taxes.
 In the present State level VAT scheme, Cenvat allowed on the goods remains included in the
value of goods to be taxed which is a cascading effect on account of Cenvat element.

 Many of the States are still continuing with various types of indirect taxes, such as luxury
tax, entertainment tax, etc.

 As tax is being levied on inter-state transfer of goods, there is no provision for taking input
credit on CST leading to additional burden on the dealers.

20
WHAT ARE THE COMPONENTS OF GST?

There are 3 applicable taxes under GST: CGST, SGST & IGST.
CGST: Collected by the Central Government on an intra-state sale (Eg: Within Karnataka)
SGST: Collected by the State Government on an intra-state sale (Eg: Within Karnataka)
IGST: Collected by the Central Government for inter-state sale (Eg: Karnataka to Tamil Nadu)
In most cases, the tax structure under the new regime will be as follows:

TRANSACTION NEW REGIME OLD REGIME

Revenue will be shared

Sale within the VAT + Central
CGST + SGST equally between the
State Excise/Service
Centre and the State
tax

There will only be one type of

tax (central) in case of inter-

Sale to another Central Sales Tax
IGST state sales. The Center will
State + Excise/Service
then share the IGST revenue
Tax
based on the destination of

goods.

21
WHAT CHANGES DOES GST BRING IN?

Before GST, tax on tax was calculated and tax was paid by every purchaser including the final
consumer. The taxation on tax is called the Cascading Effect of Taxes.

GST avoids this cascading effect as tax is calculated only on the value added. at each transfer of
ownership. Understand what the cascading effect is and how GST helps by watching this simple
video:

GST will improve the collection of taxes as well as boost the development of the Indian economy by
removing the indirect tax barriers between states and integrating the country through a uniform tax
rate.

22
PROBLEMS IN THE IMPLEMENTATION OF GST:

Vat or sales tax is levied and collected by the state government. Different state governments charge
different rates of taxes on a different kinds of goods traded within their respective territorial limits
under the extreme power provided to the state under state list of the Constitution. Whereas CST
central sales tax is levied by the central government and collected by the state government as per the
concurrent list of the Constitution.
Same the EXCISE duty as per the central excise act 1944 and service tax as per the finance act 1994
is levied and collected by the central government through the extreme power provided under the
union list of the Constitution.

Due to this distribution of power under the Constitution, no state government wants to lose the
revenue source called VAT or Sales tax. GST is the subject matter of union list and no state agrees to
bifurcate their income to the central government but now as the same political party is in majority in
the state and central. All state governments agreed to the proposal, as a result, GST Rollout.

23
2.2 CORE CONCEPT AND CITATION

India is a federal country and both the Centre and States have their own rights to collect taxes. Each state
is independent in levying and collecting taxes. The taxation powers are defined clearly in the Indian
Constitution. Centre collects all the direct taxes (income tax, corporate taxes etc) along with Indirect
taxes like Service Tax, Excise duty and Customs duty. The States collect indirect taxes like VAT on
goods,, GST and Local Taxes. These revenues states keep with themselves. Earlier instead of VAT,
States had sales taxes on various goods. Now states have replaced sales taxes with VAT. Each state has
adopted its own structure of VAT with different duties and structure.

In an earlier taxation system, people paid taxes at various levels. There was no system of getting a rebate
on the taxes paid previously while paying the inputs. This is also called as a cascading effect. Ideally, the
taxes should be based on value addition and the producer should pay taxes on whatever value he adds to
the product. In the absence of such a system, producers ended up paying much higher taxes. Higher taxes
are a barrier for business and discourage business activity. The businesses instead spend time trying to
save taxes leading to distortions and a parallel economy. A large number of enterprises prefer to stay out
of the taxation system and avoid paying taxes. High taxes also lead to lobbying activities where
producers of a certain sector ask the government to lower/waiver taxes for their sector. This also leads to
multiple taxation rates for multiple products and further increases inefficiency in the system.

A Value-Added Taxation system is seen as a way to negate this cascading effect. VAT taxes goods at
each stage and on the value addition done by the enterprise.

GST is an extended version of Value Added Tax (VAT) and aims to cover all goods and services. VAT
covers mostly goods and GST covers all goods and services. GST is an attempt to get rid of weaknesses
in the VAT structure.

With a GST in place, all these indirect taxes should be merged into one tax. Ideally, these taxes will be
collected by the Centre which will then be transferred to the States via a rule/formula.

This will require changes in the constitution as Centre can only tax goods at production stage and on
Services. The States can only tax sale of goods. Hence, States cannot tax services and Centre cannot tax
sales of goods. The States cannot also tax imports. All this needs to be changed with the GST and hence
would require amendments in the Indian Constitution. That is the reason why the 115th Constitution
Amendment Bill was introduced.

24
WHAT IS GST?

The idea of moving towards the GST was first mooted by the then Union Finance Minister Shri P.
Chidambaram in his Budget for 2006-07. Initially, it was proposed that GST would be introduced by
1st April, 2010.

The Empowered Committee of State Finance Ministers (EC) which had formulated the design of State
VAT was requested to come up with a roadmap and structure for the GST. Joint Working Groups of
officials having representation of the States as well as the Centre were set up to examine various
aspects of the GST and draw up reports specifically on exemptions and thresholds, taxation of
services and taxation of inter- State supplies. Based on discussions within and between it and the
Central Government, the EC released its First Discussion Paper (FDP) on the GST in November,
2009. This spell out the features of the proposed GST and has formed the basis for discussion between
the Centre and the States

Since then, discussion being held between Central and State Government to consensus on certain
conflicting issues. However, till today no final agreement has been made between Central and State
Government.

However, Central Government in view of implementing GST from 1st April, 2016 all over India by
agreeing all the States by making certain modifications in proposed GST.

WHY GST?

GST is similar to VAT in terms of the value-added approach. The question that comes to mind is
India already has VAT then why should someone go for GST? Moreover, it seems to be very
complicated and a difficult exercise, then what are the reasons? The key problems of current
taxation system for Goods and Service in India are as follows:

Taxation at manufacturing:

CENVAT is levied on goods manufactured or produced in India which gives rise to definitional
issues as to what constitutes manufacturing, and valuation issues for determining the value on which
the tax is to be levied.

25
Exclusion of Services from state taxation:

Exclusion of Services from state taxation has posed difficulties in taxation of goods supplied as part
of a composite works contract involving a supply of both goods and services.

26
services, and under leasing contracts, which entail a transfer of the right to use goods without any
transfer of their ownership.

Tax Cascading:

Oil and gas production and mining, agriculture, wholesale and retail trade, real estate construction,
and range of services remain outside the ambit of the CENVAT and the service tax levied by the
Centre. The exempt sectors are not allowed to claim any credit for the CENVAT or the service tax
paid on their inputs. Similarly, under the State VAT, no credits are allowed for the inputs of the
exempt sectors, which include the entire service sector, real property sector, agriculture, oil and gas
production and mining.

Another major contributing factor to tax cascading is the Central Sales Tax (CST) on inter-state
sales, collected by the origin state and for which no credit is allowed by any level of government.

Interstate Sales Tax (CST):

Though it is an important source of revenue for states it is seen as very burdensome by businesses.
The companies make goods in one state but on distribution inside the country, end up paying taxes in
each state. They are supplying goods within the country and should just be taxed at one place.

Inclusion of Services in VAT system:

Production of goods is because of both physical production and services. But Services are taxed only
by Centre and that too is done selectively. The Services need to be taxed at State level and integrated
with the Goods.

International Standard:

27
GST is becoming an international standard and it is important India also has one. There are many
factors before international companies while choosing a country for its business and taxation system is
one very important factor. With other countries having GST and India not having one, the companies
are likely to opt for former ahead of India for locating their businesses. Likewise Indian companies
may also prefer to increasingly set their bases in other countries where tax system is more efficient.

28
Salient features of GST:

The GST system is based on the same concept as VAT. Here, set-off is available in respect of taxes
paid in the previous level against the GST charged at the time of sale. The GST model has some
aspects which are as follows:

Two Components:

GST will be divided into two components, namely, Central Goods and Service Tax and State Goods
and Service Tax. However, the basic features of law such as chargeability, definition of taxable event
and taxable person, measure of levy including valuation provisions, basis of classification etc. would
be uniform across these statutes as far as practicable.

Merger of various taxes:

GST will lead merger of various taxes levied by Central and State Governments. The taxes that
merged into GST are as follow:

DUAL GST:

The Central GST and the State GST would be levied simultaneously on every transaction of supply
of goods and services except the exempted goods and services, goods which are outside the purview
29
of GST and the transactions which are below the prescribed threshold limits. Further, both would be
levied on the same price or value unlike State VAT which is levied on the value of the goods
inclusive of CENVAT. While the location of the supplier and the recipient within the country is
immaterial for

30
the purpose of CGST, SGST would be chargeable only when the supplier and the recipient are both
located within the State.

Rate:

There will be two tax rates for SGST– lower rate for necessary and basic importance items and a
standard rate for all other goods. Further, there will be a special rate for precious metals and a list of
exempted items. Rates charged across all states and the central level will be uniform along with the
regulations, definitions and classifications. However, as per latest development, it has been agreed to
include a floor rate with bands to allow States the freedom to have a high or low rate.

Threshold limit:

Threshold exemption is built into a tax regime to keep small traders out of tax net. This has three-
fold objectives:

a) It is difficult to administer small traders and cost of administering of such traders is very high
in comparison to the tax paid by them.
b) The compliance cost and compliance effort would be saved for such small traders.
c) Small traders get relative advantage over large enterprises on account of lower tax
incidence.

The present threshold prescribed in different State VAT Acts below which VAT is not applicable
varies from State to State. The existing threshold of goods under State VAT is Rs. 5 lakhs for a
majority of bigger States and a lower threshold for North Eastern States and Special Category States.
A uniform State GST threshold across States is desirable and the threshold of gross annual turnover of
Rs. 40 lakh for goods and Rs. 20 lakh for services for all the States andUnion Territories is adopted
with adequate compensation for the States where the limit is 10lakh for both (particularly, the States
in North-Eastern Region and Special Category States) where lower threshold had prevailed in the
VAT regime.

Applicability:

GST is applicable to all Goods and Services sold or provided in India, except fromthe list of
exempted goods which fall outside its purview.

31
Payment:

GST is charged and paid separately in case of Central and State level.

No Inter System Tax Input Credit:

The facility of Input Tax Credit at Central level is only be available in respect of Central Goods and
Service tax. In other words, the ITC of Central Goods and Service tax shall not be allowed as a set-
off against State Goods and vice versa.

Inter-state GST:

The Empowered Committee had accepted the recommendations of the Working Group of concerned
officials of Central and State Governments for adoption of IGST model for taxation of inter-State
transaction of Goods and Services. The scope of IGST Model is that Centre would levy IGST which
would be CGST plus SGST on all inter-State transactions of taxable goods and services. The inter-
State seller will pay IGST on value addition after adjusting available credit of IGST, CGST, and
SGST on his purchases.
The Exporting State will transfer to the Centre the credit of SGST used in payment of IGST. The
Importing dealer will claim credit of IGST while discharging his output tax liability in his own State.
The Centre will transfer to the importing State the credit of IGST used in payment of SGST. The
relevant information will also be submitted to the Central Agency which will act as a clearing house
mechanism, verify the claims and inform the respective governments to transfer the funds.

GST on Imports:

The GST is levied on imports with necessary Constitutional Amendments. Both CGST and SGST
will be levied on import of goods and services into the country. The incidence of tax will follow the
destination principle and the tax revenue in case of SGST will accrue to the State where the imported
goods and services are consumed. Full and complete set-off will be available on the GST paid on
import on goods and services.

PAN linked Taxpayer Identification Number:

32
Each taxpayer is allotted a PAN linked taxpayer identification number with a total of 15 digits.
This brought the GST PAN-linked system in line with the prevailing PAN- based system for
Income tax facilitating data exchange and taxpayer

33
compliance. The exact design worked out in consultation with the Income-Tax Department.

Need of compensation during implementation of GST:

Despite the sincere attempts being made by the Empowered Committee on the determination of GST
rate structure, revenue neutral rates, it was difficult to estimate accurately as to how much the States
will gain from service taxes and how much they will lose on account of removal of cascading effect,
payment of input tax credit and phasing out of CST. In view of this, it was essential to provide
adequately for compensation for loss that might emerge during the process of implementation of
GST for the next five years. This issue may be comprehensively taken care of in the
recommendations of the Thirteenth Finance Commission. The payment of this compensation will
need to be ensured in terms of special grants to be released to the States duly in every month on the
basis of neutrally monitored mechanism.

How does GST work?

Suppose there is a Paper manufacturer. He purchases raw materials and machinery on which he pays
certain percentage of tax.

Purchase
Particulars Tax Rate (%) Tax (In Rs Lakh)
(In Rs Lakh)
Raw Material 200 10% 20
Machinery 400 10% 40
Total Input Tax 60
paid

Now suppose he produces Papers worth Rs 800 lakh and adds Rs 200 lakh as profit. He sells all the
goods to sole distributor in India. The manufacture will have to pay taxes on selling his papers. Now
in a traditional system, he would pay the tax on the entire Rs 1000 Lakh and get no input credit. So,
he pays a total tax of Rs 160 Lakh – Rs 60 Lakh on Input and Rs 100 Lakh on Sales. This is called
cascading effect and a producer pays the tax on each economic transaction. The end result is much
34
higher taxes by the producer leading to lack of incentives by the producer. However, with a GST
system, the producer gets an input tax credit of Rs 60 Lakh. As he had paid Rs 60 Lakh on the inputs,
it gets deducted from the tax bill. On net basis, the Producer pays Rs 100 Lakh of taxes.

35
 Sale Tax Rate Without GST With GST
Particulars
(In Rs Lakh) (%) Tax (In Rs Lakh) Tax (In Rs Lakh)
Sales
1000
(Cost 800 + Profit 200)
Total Output Tax 10% 100 100
Less: Input Tax 0 60
Tax Paid 100 40
Total Tax paid (Input
160 100
Tax + Output Tax)

Now let us see the books of the all-India distributor. Let’s say he pays Rs 50 lakh to the transport
provider for transporting goods from manufacturer to the distributors’ go down. He pays service tax
on the same. Hence total value of his goods becomes Rs 1050 Lakh. His input tax payable is Rs 105
Lakh.

Particulars In Rs Lakh Tax Rate (%) Tax (In Rs Lakh)

Goods Purchase 1000 10% 100
Transportation
50 10% 5
Charge
Total Input Tax 105
paid

The Distributor sells the papers to the consumers. The same input tax output tax calculation applies
here as well. Without a GST system he pays a total of Rs 235 Lakh as taxes. With a GST system he
pays Rs 130 Lakh as total taxes, a total saving of Rs 51 lakhs.

Without GST With GST

Purchase
Particulars Tax Rate (%) Tax (In Rs Tax (In Rs
(In Rs Lakh) Lakh) Lakh)
Sales (Cost 1050+
1300
Profit 250)
Total Output Tax 10% 130 130
Less: Input Tax 0 105
Tax Paid 105 25
Total Tax paid
(Input Tax 235 130

+ Output
Tax)

36
CHALLENGES IN THE IMPLEMENTATION OF GST

The actual challenge before the finance minister was not of drafting a model GST but ofits proper
implementation and smooth transition from the prevailing system. The challenges which the Government
had to face in introducing GST were as follows:

Legislative Challenge:

The Constitution provides for delineation of power to tax between the Centre and States. While the
Centre is empowered to tax services and goods upto the production stage, the States have the power to
tax sale of goods. The States did not have the powerstolevy a tax on supply of services while the
Centre did not have power to levy tax on the sale of goods. Thus, the Constitution did not vest express
power either in the Central or State Government to levy a tax on the ‘supply of goods and services.
Moreover, the Constitution also did not empower the States to impose tax on imports. Therefore, it
was essential to have Constitutional Amendments for empowering the Centreto levy tax on sale of
goods and States for levy of service tax and tax on imports and other consequential issues.

Inclusion of Goods and Services:

The first issue major issue of implementation of GST was to the inclusion of taxes within the ambit of
GST. The bone of contention was related to inclusion of purchase taxes on foodgrain, taxes on motor
spirit and high-speed diesel (GSD), and octroi or entry tax in lieu thereof. The foodgrain surplus states
had been levying the purchase tax, the burden of which was exported to non- residents.

The states were reluctant to bring motor spirit and high-speed diesel within the ambit as previously the
tax was levied at a floor rate of 20% and the states used to derive about 35% of theirsales tax
collections from these petroleum products.

Rationalization of GST rate:

Another issue to be decided was the rates of central and state GSTs to be levied. It was expected that
the tax rates would be revenue neutral. This implied that in the short term, there would not be any
revenue loss or gain, but over time the revenue productivity would increase due to better compliance of
the tax and increased productivity of the economy.

Rates charged across all states and the central level would be uniform along with the regulations,
definitions and classifications for effective implementation of GST However, due to dispute between
Central and State Government, it had been agreed to include a floor rate with bands to allow States the
freedom to have a high or low rate.

37
Rationalization of threshold and exemption limits:

To get the full benefits of GST, it was necessary to rationalize threshold limit and exemption limits.
However, there were dispute between Central Government and State Government regarding finalizing
of threshold limit. State Governments were in view of keeping the threshold limit at as low as possible
to avoid revenue loss to state.

Place of Supply:

One of the main challenges in introducing in GST was defining the place of supply in respect of
certain services and intangible properties. In the previous tax regime, place ofsupply was not a big
issue because service was taxed by the Centre and the place of levy did not affect revenue receipts.
In GST, however, the place of supply has to be clearly defined to avoid disputes among states in
case of interstate transactions.

Time of Supply:

Time of supply explains the point at which tax would be levied invoice date, due date or payment date.
Previously different taxes were levied by the Centre and the states at various stages. These variations
have been eliminated in GST.

Rapid increase in Assesses:

The dual GST model has widened the tax net by taxing every economic supply in the distribution
network. This has led to rapid increase in assesses. It initially required some of the businesses to
restructure their distribution network to reduce additional tax burden on the consumer with a view to
be price competitive. Though it had generated revenue ina neutral and transparent way, the
Government had to ensure that the ultimate consumer is not burdened with tax beyond his capacity.

In addition to above Government decided regarding

 Dispute settlement procedure and machinery

 Building IT (Information technology) infrastructure to capture the full benefits of GST
 Training of tax administrators and assesses
 Protecting and balancing the present and future revenues of the Centre and the States
 Safeguarding the interests of less developed states with lower revenue potential

38
 IMPACT OF GST ON INDIAN ECONOMY

It has been three years since the introduction of Goods and Services Tax (GST), India’s biggest tax reform,
on 1 July 2017. It has been a roller coaster ride for the government, industries, and consumers due to the
number of changes and reforms introduced in the past three years. These changes were primarily focused on
rationalizing rates, simplifying procedures, and curbing tax evasion. Stabilizing one of the world’s biggest
online tax systems, GSTN, was also a key focus area for the government.
Let us look at the following statistics and key indicators to know how successful this historical tax
reform has been in achieving its desired objectives:

Increase in tax base: After its implementation on 1 July 2017, over 38 lakh taxpayers migrated into the GST
regime. This number had further increased to more than 64 lakh in September 2017. Also, with an addition
of new GST registrations of over 58 lakh, this number has increased by almost 90 percent and we had total
(new plus migrated) 1.23 crore activeGST registrations, as on 31 March 2020. This growth indicates a
significant increase in tax base and a change in taxpayers’ compliance behaviour.

o Revenue collections: While the first nine months of FY 18 saw a revenue collection of
o ~INR 7.4 lakh crore, FY 19 witnessed healthy growth with the government collecting
o ~INR 11.7 lakh crore. On the other hand, in the backdrop of rate reduction/ rationalisation
over several products, the collections during FY 20 were below estimates and marginally
grew at ~4 percent over FY 19 to reach INR 12.2 lakh crore. FY 21 also saw a growth and
FY22 is ongoing.

 Introduction of e-way bill system: Barring the initial technical glitches, the e-way bill system
has been largely streamlined. The total number of e-way bills (inter- state as well as intra-
state) generated during FY 19 were ~56 crore; and with
~13% growth, this number increased to ~63 crore during FY 20 and continues to grow.

 Rate rationalisation: The government continued to focus on rationalising GST rates. Although
the overall rate structure remained same, a significant progress has been made in bringing
down GST rates for various products. On 1 July 2017,
~19 percent items were under the 28 percent GST rate bracket; currently only 3 percent are
subject to 28 percent GST. Now about 50 percent items are under the 18 percent bracket, ~21
percent face 12 percent, and ~25 percent are subject to 5 percent GST.
39
 Legislative amendments and clarifications: From its original shape and form, as on 1 July
2017, the GST law has undergone significant changes. With almost 700 notifications, 145
circulars, and over 30 orders uptil Fy 2020 and significant changes have been made to address
taxpayers’ demand, to carry out procedural simplifications and curb tax evasion.

40
The last five years of the GST have seen many changes in terms of policy, tax rates, and procedural and
technological overhauls, which have completely changed the face of the indirect tax system in India.
Nonetheless, all the participants in the ecosystem – authorities, taxpayers, and tax experts – have evolved
to keep pace with the changes.

The industry has done an overwhelming effort to ensure the adoption of the ever-evolving GST law in the
last 5 years. The industry was required to not only keep track of the changing tax provisions but was also
required to upgrade to a technology-based tax ecosystem. In this respect, efforts made by the government
in terms of proactively issuing instructions, clarifications, and streamlining processes should be
applauded too.

In line with industry expectations, GST has had a positive impact on the manufacturing sector by
removing the cascading effect of taxes resulting in the reduction of manufacturing costs. Before GST
implementation, certain taxes paid by manufacturers on procurements were non-creditable.

At a dealer/ distributor level as well, credit of taxes paid on services (such as rent paid to warehouses,
logistic costs, retail stores, etc.) were non-creditable. Being costs to the business, manufacturers and
dealers/ distributors generally had no option but to in-build such costs into the sale price of the goods.
With the embargo on credits being removed, there has been a reduction in manufacturing costs.

On the output side, manufacturing and sale of goods attracted Excise duty and VAT/ CST. Excise duty
was generally levied @ 12.5% while VAT was generally levied at the rate of 12.5% or 5% and CST at
2% (in certain cases of inter-state sales). However, in GST only nearly 30 items, mostly luxury and sin
items attract a 28% rate whereas the rest are mostly classified under 12% or 18%.

Before the GST, manufacturers were required to file multiple returns and were assessed by various tax
authorities. With the implementation of GST, there has been the ease in undertaking compliances because
of the automation of tax compliances. Also, the process of assessments and adjudication is expected to
become smoother.

The automation combined with the e-invoicing/e-way facility has not only positively impacted
compliance management but has also started to show the result in revenue collection with the monthly
collection constantly exceeding the 1 lakh crore for the last 11 months and reaching 1.68 lakh crore – the

41
highest ever, in April 2022.

Unfortunately, by the time the Indian manufacturing sector could fully reap the benefits of a unified
market, economic activity was disrupted by the pandemic. It exposed the fragility of the supply chain
system not in India but across the world. Post the introduction of GST, growth in the manufacturing
sector has remained subdued and the contribution of the

42
manufacturing sector to the GDP has been constant from 15%-17%.

The manufacturing sector is again getting a boost from the Aatmanirbhar Bharat program and
the PLI Schemes of the Central Government. These schemes are going to be pivotal, especially
in the post-pandemic era, where companies have begun to reconfigure their sourcing,
manufacturing, and distribution patterns. However, for the government to multiply the effect,
the following issues should be considered promptly.

 GST on petroleum products – Industry participants across sectors have been echoing
the demand to include petroleum products under GST which may further streamline the
ITC and reduce the product cost ultimately increasing in demand.

 Constitution of the GST Appellate Tribunal – GST Appellate Tribunal has not been
constituted even after five years of GST implementation. In the absence of an
alternative remedy, the writ has become the only option and high courts are flooded
with them. Immediate constitution of the GST Appellate Tribunal and a fast-track
adjudication process may provide relief to the assessees and the judicial system.

 Relaxation in ITC and rationalisation of rates – While the government is assisting the
manufacturing sector in recovery after the COVID-19 pandemic, relaxation in availing
the ITC on various inputs/ input services which are blocked currently combined with
the simplification of the tax rate structure can further boost the sector.

As the economy recovers and foreign companies looking to explore a new base, on the fifth
anniversary, we are at a crucial juncture in the GST journey. In case the government takes
positive steps towards industry demands, India may emerge as a preferred nation for
manufacturers and the economy may continue the growth story with strong collection post-
pandemic.

43
CHAPTER THREE

44
COMPANY PROFILE

3.1 Introduction of the organization

School Of Inspirational Leadership

SIL University is powered by world-class technology, state-of-the-art infrastructure, experienced
navigators, and proven tools and strategies to help you become more productive, profitable and
sustainable. Whether your focus is personal career growth, business transformation, employee
development or life transformation, SIL University’s mission is to be a strong catalyst in your
professional and personal journeys.

SIL University is powered by world-class technology, state-of-the-art infrastructure, experienced

navigators, and proven tools and strategies to help you become more productive, profitable and
sustainable. Whether your focus is personal career growth, business transformation, employee
development or life transformation, SIL University’s mission is to be a strong catalyst in your
professional and personal journeys.

SIL University is powered by world-class technology, state-of-the-art infrastructure, experienced

navigators, and proven tools and strategies to help you become more productive, profitable and
sustainable. Whether your focus is personal career growth, business transformation, employee
development, or life transformation, SIL University’s mission is to be a strong catalyst in your
professional and personal journeys.

3.2 HISTORY OF THE ORGANIZATION

Donning many hats of a speaker, author, entrepreneur and navigator, Yogesh is among Asia’s
top leadership and business strategy authorities whose work has impacted entrepreneurs and
enterprises across the globe.

With a master’s degree in Transactional Analysis, Yogesh is a change catalyst who consults
internationally to large companies, small and medium enterprises, and government organizations
on his unique model of people and business growth & transformation, business model re-
innovation, and impactful leadership development.

45
Yogesh began his career as an entrepreneur at the early age of 16, at his father’s shop after
which, he ran an adventure campsite, and then, a real estate company. He took every success as a
blessing and every failure as a learning.

Yogesh is an avid reader and his keen interest in Psychology helped him understand
business patterns and business behaviors of people. He learned his basic lessons of
Psychology based on the Freudian theory of Transactional Analysis. Based on his observations
of people behaviors, he has created effective models like the “Leadership Imbalance Model ®”
and the “CPC Model of Business Scalability ®.” His ability to understand the scientific
reasons behind people’s behavioral patterns helped him to gain the confidence of all
stakeholders and handle complex situations in businesses where he advised, consulted and
trained.

Yogesh’s clear, data-driven methodologies have helped companies across the globe design and
implement growth strategies and drive real results, both in terms of building capability and
significant financial returns.

Consistent growth is one of his greatest motivators, and being equally humble and assertive
has attracted a lot of leaders to learn from him. He has dedicated his life to helping leaders seek
clarity and build tolerance through his signature concept of “What great leaders do.” He focuses
on developing and correcting behaviors and habits in leaders in order to create the impact
required in the marketplace. His “Leadership Imbalance Model ®” helps leaders realize
“What they are doing but shouldn’t do.”

His education, observations of the modern world, the corporate experience of solving problems,
innate curiosity and eagerness to assist people to attain

3.3 PRODUCT PORTFOLIO

Business Transformation Journeys

Our passion is to see you achieve your dreams. Our specially designed coaching and consulting
help you to pioneer new paradigms and take your business to greater heights. Our experienced

46
navigator’s guide and support you in your journey from survival to achieving scale, from rural to
global, and from being an owner to becoming a leader, thus enhancing your business experience.
No matter what your challenge – sales growth, team performance, or business expansion, SIL
University has you covered.

Employee Development Journey

Employee Development Journeys are open programs, which can be attended by individuals or
company employees from various industries. Whether it is building the right ethics in a modern,
ever-changing world, managing emotions at work, mastering the fine art of collaboration and
sharing, or becoming a trusted street-smart seller, these journeys ensure that your employees
learn the best of techniques and practical applications from the best in the industry.

3.4 The vision of the organization

It’s a vision very few would dare to have, much less be competent enough to bring into reality!
But Yogesh not just has the vision, but also has in place a strategy that combines men, machines,
and monetary arrangements to make this vision possible. When it comes to educating
entrepreneurs, Yogesh leaves no stone unturned to add value to their business experiences – be it
through his numerous educational videos, his curated Book Review playlist of must-read titles,
or the Chairmanship of the Association of Rising and Inspiring Syndicate of Entrepreneurs
(ARISE).

47
CHAPTER FOUR

48
4.1 RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem. It is the science of
studying how research is done scientifically. In it, we study the various steps that are generally
adopted by a researcher in studying his/her research problem along with the logic behind them.

It includes:

 Research Design
 Data Collection
 Data Analysis

RESEARCH DESIGN AND DATA COLLECTION

 1) TITLE- Survey based on businessmen related to GST (Goods and Service Tax).

 2) OBJECTIVE- To understand whether GST has helped ease businessmen’s

operations and whether they have the basic knowledge of GST.

 3) SCOPE OF STUDY- The scope of the study is amongst 20 people. In this study, I will be
evaluating the awareness of GST among businessmen. The findings of the study and the
conclusion drawn are based on the information collected through an online questionnaire.

 4) SAMPLE SIZE- Conducted a survey of 20 people.

 5) SAMPLE LOCATION- The survey is conducted online through google forms.

 6) RESEARCH TYPE- The research type is primary as I prepared the questions and got the
replies firsthand from the respective respondents

49
 QUESTIONS WITH ANALYSIS

Q1) Are you registered under GST?

Interpretation- Out of the 20 respondents, 80% are registered under the Regular Taxpayer Scheme of GST.
15% are registered under the Composition Scheme of GST and the remaining 5% are not registered under
GST. This shows that GST has captured a fair number of businessmen and is continuing in doing so as
compared to previous taxation. The strictness of the rules has increased and taxation has become easier.

Q2) When was GST implemented?

Interpretation- 90% of the people know that GST was first implemented on 1 st July 2017. This is a great
number. Initially when it was implemented there was a lot of confusion among businessmen and maybe
that is why everyone remembers the date. But the fact that 90% of people know the date is commendable.
Some people might have confused the year of implementation and some might have thought April as it is
the start of the Financial year.

50
Q3) Have the compliances reduced since introduction of GST ?

Interpretation- 85% of the people think that Yes, the compliances have reduced since the introduction of
GST and 55% of which say Yes, Definitely!. Initially their were 16 different some of which are Central
excise duty, Central sales tax, Service tax, Additional duties of customs, Additional duties of excise,
Excise duty levied under the textiles and textile products, Purchase tax, VAT, Entry tax, Octroi and all
these had their own compliances.
Combining all these and levying a common tax for all because of which they can easily take set off with
ITC has reduced the compliances to a great extent.

15% of the people think that No, it has not reduced the compliances. This is maybe they still find it
complicated to file the returns or do not file it themselves due to lack of knowledge.

Q4) GSTIN is of how many digits?

Interpretation- 75% of the people know that the GSTIN that is the GST number organisations get after
51
they are registered under GST is of 15 digits. 10% of the people

52
selected the option of 16 digits and 15% of the people selected 12 as their answer. This might have
happened because they never paid attention to the number of digits or might have gotten confused.

Q5) What is the limit of compulsory registration under GST?

Interpretation- 90% (70%+20% as the first 2 options were the same) of the people are aware of the limits
of mandatory registration under GST. This is a pretty good number. 10% of the people answered the third
option that which is 10L for goods and services. Maybe they are unaware of the fact as they might not
have looked into it.

Q6) When is IGST applicable?

Interpretation- 100% of the people are aware that IGST is applicable when the supply is Inter-State that
is from one state to another or state or Union territory or vice versa and also from one union territory to
another. This means that people are also aware that they have to charge CGST+SGST/UTGST when
53
intra-state supply of goods or services takes place ofcourse only if they are registered under GST.

54
Q7) Can one GST number be used in multiple firms in one state?

Interpretation- If we see this is a bit advanced question for the questionnaire as people might not have
ever looked into it if they do not have multiple firms but even then, 60% of the people are aware that you
can use the same GST number for multiple firms in one state. This is a good number.

Q8) Are you involved in Inter-state supply?

Interpretation- 45% of the people are involved in Inter-state supply. This number has grown compared to
before. People didn’t find it easy to supply out of the state and now GST has made the taxation process
very easy. They just have to charge IGST instead of CGST+SGST/UTGST and the rest of the procedure
is similar to intra state supply,
55
Q9) Do you know how to use the GST portal?

Interpretation- The number of people who know and don’t know how to GST Portal is 50-
50. Almost have businessmen hire CA to file their returns and maybe that is why they don’t feel the need
to study the portal. Even then, 50% of the businessmen know how to use the basic GST Portal which is
good. Slowly and gradually the know-how will increase.

Q10) What is the due date of uploading GSTR-1 (sales)?

Interpretation- The right answer of the due date of uploading GSTR-1 is 11 th of the subsequent month.
60% of the people got it right. 35% of the respondents answered it as 10 th of the next month. This might
be because they must be filing it before the due date itself or maybe just because they were unaware as
56
their CAs must be filing it on their behalf.

57
Q11) What is the due date of payment of GST (Regular Taxpayer)?

Interpretation- This was not put as a compulsory question so only 16 out of 20 people responded to the
above question. Out of those 75% of the people got the answer right that the due date for payment of GST
monthly is 20th of the next month. 25% of the people got it wrong that the payment is done on 21 st of the
next month and need to be made aware or else they will have to pay interest.

Q12) Is Input Tax Credit taken according to our books or Form 2A?

Interpretation- 95% of the people are aware that Input Tax Credit is taking only according to the Form 2A
58
and not according to the books of the business. This is a good number.

59
Q13) What is the full form of CGST?

Interpretation- 95% of the people are aware of the full form of CGST which is Central goods and service
tax. 5% of the people have answered it as centre goods and service tax maybe because centre and central
are very close options.

Q14) Advantages of GST (multiple answers allowed)

Interpretation- 55% of the people think that GST is simple and easy to interpret and use. 95% of the
people agree that GST has made One Nation, One tax easy to handle and operate and has made India a
Common Market. 65% of the people believe ITC has become easier and is thus an advantage.

60
5% of the people think that it has lead to increase in the price of goods and services. It might have in
some cases but is not an advantage.

61
Q15) Are you happy with GST?

Interpretation- 95% of the people are happy with GST. This proves it that introduction of GST was a
good decision although initially there was a struggle to understand its working as any change in the start
creates a bit of hustle. But over the years, all the businessmen now all well adjusted with it and are
adapting to it all the more.

62
4.2 LIMITATIONS

Although all efforts have been taken to make the results of survey as accurate as possible but the survey
suffers from following limitations -:

1) The possibility of respondent’s responses being biased cannot be ruled out.

2) Limited access to respondants and in Pune region only.
3) Most of the times people don’t give appropriate information.
4) Mostly respondents don’t want to give accurate information or might have looked up for the
answers on the internet.

63
CHAPTER FIVE

64
5.1 CONCLUSION

Tax policies play an important role on the economy through their impact on both efficiency and equity. A
good tax system should keep in view issues of income distribution and, at the same time, also endeavour to
generate tax revenues to support government expenditure on public services and infrastructure
development. GST gives more relief to industry, trade and agriculture through a more comprehensive and
wider coverage of input tax set-off and service tax set-off, subsuming of various Centraland State taxes in
the GST. The transparent and complete chain of set-offs which results in widening of tax base and better
tax compliance also leads to lowering of tax burden on an average dealer in industry, trade and agriculture.
The subsuming of major centre and state taxes has reduced the cost of locally manufactured goods and
services. This has increased the competitiveness of Indian goods and services in the international market
and to boost Indian exports.

GST has brought many benefits to the Indian economy. Though, all these benefits are based on the
assumption that overall taxation structure is less bureaucraticand less cumbersome than before.

Although the initial implementation of GST was cumbersome given the challenges in India, now GST has
helped ease the inefficiencies and eliminate the problems over a period of time.

Implementation of GST is one of the best decisions taken by the Indian government. For the same reason,
July 1 was celebrated as Financial Independence Day in India when all the Members of Parliament attended
the function in Parliament House. The transition to the GST regime which is accepted by 159 countries was
not easy.
Confusions and complexities were expected and would happen. India, at some point, hadto comply with
such regime. Though the structure might not be a perfect one but now in place, this tax structure has made
India a better economy favorable for foreign investments. Until 5 years back India was a union of 29 small
tax economies and 7 union territories with different levies unique to each state. But now it is a much
accepted and appreciated regime because it does away with multiple tax rates by Centre and States. And if
you are not yet registered, then you should register for GST as it is notonly going to help Indian
government but will help you also to track your business weekly as in GST you have to make your business
activity statement each week.

65
The taxation of goods and services in India has, hitherto, been characterized as a cascading and
distortionary tax on production resulting in misallocation of resources and lower productivity and economic
growth. It also inhibits voluntary compliance. It is well recognized that this problem has effectively been
addressed by shifting the tax burden from production and trade to final consumption. A well-designed
destination- based value added tax on all goods and services is the most elegant method of eliminating
distortions and taxing consumption. Under this structure, all different stages of production and distribution
can be interpreted as a mere tax pass-through, and the tax essentially ‘sticks’ on final consumption within
the taxing jurisdiction.

5.2 Findings

1. Increase in tax base: GST has increased the tax base in India, with more businesses coming under
the tax net due to the threshold limit being lowered.
2. Reduction in tax evasion: GST has made tax evasion more difficult, as businesses need to file
monthly returns and any discrepancy is immediately caught by the system.
3. Disruption in the informal sector: The informal sector, which accounts for a significant portion of
the Indian economy, has been disrupted by GST, as compliance costs and procedural complexities
have made it difficult for small businesses to adapt.
4. Initial implementation challenges: The initial implementation of GST faced several challenges, such
as technical glitches in the online system and confusion regarding the tax rates.
5. Impact on inflation: GST initially led to an increase in inflation, as businesses passed on the
increased tax burden to consumers. However, inflation has since stabilized.
6. Revenue neutral rate not achieved: The revenue neutral rate (RNR) is the tax rate that would keep
the government's tax revenue unchanged after the introduction of GST. India has not been able to
achieve the RNR, as the tax rates on some items are still high.

66
5.3 SUGGESTIONS & RECOMMENDATIONS

 Tax payers, need to be educated more about the GST.

 Standardization of systems and procedures.

 Well defined procedures in case of Job works

 Uniform dispute settlement machinery.

 Adequate training for both tax payers and tax enforcers.

 Re-organization of administrative machinery for GST implementation.

 Building information technology backbone – the single most important initiative for GST
implementation.

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5.4 Annexure

Q1) Are you registered under GST?

Q2) When was GST implemented?
Q3) Have the compliances reduced since the introduction of GST?
Q4) GSTIN is of how many digits?
Q5) What is the limit of compulsory registration under GST?
Q6) When is IGST applicable?
Q7) Can one GST number be used in multiple firms in one state?
Q8) Are you involved in Inter-state supply?
Q9) Do you know how to use the GST portal?
Q10) What is the due date for uploading GSTR-1 (sales)
Q11) What is the due date of payment of GST (Regular Taxpayer)?
Q12) Is the Input Tax Credit taken according to our books or Form 2A?
Q13) What is the full form of CGST?
Q14) Advantages of GST (multiple answers allowed)
Q15) Are you happy with GST?

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 5.5 BIBLIOGRAPHY

Websites:

 www.gstindia.com

 www.cleartax.comS

 www.successmantra.com

 https://economictimes.indiatimes.com/

 https://www2.deloitte.com/

Reference Books & Articles:

 GST Law Manual by R.K. Jain

 The Economic Times
 Times of India

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