Professional Documents
Culture Documents
INTERNSHIP REPORT
ON
BACHELOR OF COMMERCE
TO
FEROZE GANDHI COLLEGE
(2023-2024)
Under the Guidance of Submitted By:
Dr. Arun Kumar Name SONAL VAISH
Roll no: 2140012010171
ACKNOWLEDGEMENT
Every work constitutes great deal of assistance and guidance from the people concerned and
this particular project is of no exception.
A project of the nature is surely a result of tremendous support, guidance, encouragement and
help.
Wish to place on record my sincere gratitude to (Dr. Arun Kumar), for his valuable guidance.
Without his support and guidance taking this would not have been possible.
Also, wish to acknowledge enthusiastic encouragement and support extended to me by my
family members. At last, I would like to thank all the faculty of business management to help
me completing this project.
I’m also thankful to my friends who provided me their constant support and assistance.
Sonal Vaish
Roll No.: 2140012010171
B.Com Vth Semester
DECLARATION
I do hereby declare that the research report titled “Goods & Services Tax (GST)” submitted
by me in partial fulfillment of the requirement of Bachelor of Commerce exclusively prepared
and conceptualized by me and is not submitted to any other Institution or University or
published anywhere before for the reward of any Degree/Diploma/Certificate. It is the Original
work of mine and has not been obtained from any other part.
Sonal Vaish
Roll No.: 2140012010171
B.Com Vth Semester
PREFACE
In India, there exist a number of indirect taxes that are either levied by the Central Government
or by the state government such as Excise Duty, Custom Duty, Service Tax, Sales tax, Stamp
Duty, Octroi and many more. There have been various attempts of reforming the indirect tax
structure for making tax system simple, stable and burdensome. In this process of reform we
have already implement vat and service tax. For further significant improvement the next
logical step towards a comprehensive indirect tax reforms in the country will be to implement
Goods and Services Tax (GST). GST is a tax on goods and services with comprehensive
manner. It is a multi-tier tax where ultimate burden of tax fall on the consumer of goods or
services. It is called as value added tax because at every stage tax is being paid on value
addition.
The present research paper is an attempt to study concept of goods and service tax, how it
works and its advantages to Indian economy.
TABLE OF CONTENT
1 Introduction 7 to 8
4 Type of GST 50 to 54
5 GST Return 55 to 74
6 Literature Review 75 to 78
7 Research Methodology 79 to 81
8 Suggestions/Recommendations 82
9 Conclusion 83 to 84
10 Bibliography 85
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 endeavour 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 a large number of 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%. Introduction of GST would also make our products competitive in the
domestic and international markets.
It will lead 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 will also improve government's fiscal health as the tax collection system
would become more transparent, making tax evasion difficult. CAG Mr. Vinod Rai in his
inaugural address to the National Conference on GST 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 centre 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 is rolling out from 1 July 2017. After the
passage of 25 years of economic reforms in the indirect taxes is going for 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 Loksabha on 6th May 2015 but is yet to be ratified
by the Rajyasabha. However, there is a huge hue and cry against its implementation. It would
be interesting to understand why this proposed GST regime may hamper the growth and
development of the country.
OBJECTIVES
To understand the concept of goods and service tax
To understand how GST will work in India
To understand the benefits of GST over the current taxation system in India
To understand effect of GST on Indian Economy
GOODS AND SERVICES 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.”
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.
The retailer packages each shirt separately and invests in the marketing of the shirt thus
increasing its value.
GST will be 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 are 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.
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 Vajpayeeand 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 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. There was
to be no GST on the sale and purchase of securities. That continues to be governed
by Securities Transaction Tax (STT).
ADVANTAGES OF GST
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 Center 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.
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:
In the case of Goods and Services Tax, there is a way to claim credit for tax paid in acquiring
input. What happens in this case is, the individual who has paid a tax already can claim credit
for this tax when he submits his taxes.
In our example, when the wholesaler buys from the manufacturer, he pays a 10% tax on his
cost price because the liability has been passed on to him. Then he adds value of Rs. 40 on his
cost price of Rs. 100 and this brings up his cost to Rs. 140. Now he has to pay 10% of this price
to the government as tax. But he has already paid one tax to the manufacturer. So, this time
what he does is, instead of paying Rs (10% of 140=) 14 to the government as tax, he subtracts
the amount he has paid already. So, he deducts the Rs. 10 he paid on his purchase from his new
liability of Rs. 14, and pays only Rs. 4 to the government. So, the Rs. 10 becomes his input
credit.
When he pays Rs. 4 to the government, he can pass on its liability to the retailer. So, the retailer
pays Rs. (140+14=) 154 to him to buy the shirt. At the next stage, the retailer adds value of Rs.
30 to his cost price and has to pay a 10% tax on it to the government. When he adds value, his
price becomes Rs. 170. Now, if he had to pay 10% tax on it, he would pass on the liability to
the customer. But he already has input credit because he has paid Rs.14 to the wholesaler as the
latter’s tax. So, now he reduces Rs. 14 from his tax liability of Rs. (10% of 170=) 17 and has to
pay only Rs. 3 to the government. And therefore, he can now sell the shirt for Rs. (140+30+17)
187 to the customer.
Action Cost 10% Tax Actual Liability Total
In the end, every time an individual was able to claim input tax credit, the sale price for him
reduced and the cost price for the person buying his product reduced because of a lower tax
liability. The final value of the shirt also therefore reduced from Rs. 214.5 to Rs. 187, thus
reducing the tax burden on the final customer.
PROBLEMS IN IMPLEMENTATION OF GST
Vat or sales tax is levied and collected by the state government. Different state government
charge different rate of taxes on different kind 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 central
excise act 1944 and service tax as per 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 losses
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 government agreed to the proposal, as a result,
GST Rollout.
BRIEF HISTORY ABOUT GST IN INDIA
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 spells 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.
What is GST?
GST is a comprehensive indirect tax on manufacture, sale and consumption of goods and
services at national level. The GST is expected to replace all the indirect taxes in India. At the
centre's level, GST will replace central excise duty, service tax and customs duties. At the state
level, the GST will replace State VAT. Integration of goods and services taxation would give
India a world class tax system and improve tax collections. It would end the long standing
distortions of differential treatments of manufacturing and service sector.
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.
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, 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:
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.
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 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 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, therefore, the
Empowered Committee has recommended that a threshold of gross annual turnover of Rs. 10
lakh both for goods and services for all the States and Union Territories may be adopted with
adequate compensation for the States (particularly, the States in North-Eastern Region and
Special Category States) where lower threshold had prevailed in the VAT regime. Keeping in
view the interest of small traders and small scale industries and to avoid dual control, the States
considered that the threshold for Central GST for goods may be kept at Rs.1.5 crore.
Applicability:
GST will be applicable to all Goods and Services sold or provided in India, except from the list
of exempted goods which fall outside its purview.
Payment:
GST will be 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 will 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 Service tax and vice versa.
Inter-state GST:
The Empowered Committee has 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 will be 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:
Each taxpayer would be allotted a PAN linked taxpayer identification number with a total of
13/15 digits. This would bring the GST PAN-linked system in line with the prevailing PAN-
based system for Income tax facilitating data exchange and taxpayer compliance. The exact
design would be 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 is 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 would
be 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 paid 60
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 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.
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’ godown. 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 paid 105
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)
Benefits of GST
The implication of GST assures a single taxation system in the entire country for all goods and
services making tax compliance easier and more effective. The belief that trade and industry
will benefit from implementation of GST is widely accepted. Because the GST will give more
relief to industry, trade and agriculture through a more comprehensive and wider coverage of
input tax set off and service tax in subsuming of several Central and State taxes in the GST and
phasing out CST. The transparent and complete chain of set-off which will result in widening
of tax base and better tax compliance may also lead to lowering of tax burden on an average
dealer in industry, trade and agriculture. It will also boost up economic unification of India.
The major benefits of implementation of GST as follows:
To Economy:
It will simplify India's tax structure, broaden the tax base, and create a common market across
states. This will lead to increased compliance and increase India's tax-to gross domestic product
ratio. According to a report by the National Council of Applied Economic Research, GST is
expected to increase economic growth by between 0.9 per cent and 1.7 per cent. Exports are
expected to increase by between 3.2 per cent and 6.3 per cent, while imports will likely rise
2.4-4.7 per cent.
To Corporate:
It will be beneficial for India Inc. as the average tax burden on companies will fall. Reducing
production costs will make exporters more competitive.
To Exporters:
The subsuming of major Central and State taxes in GST, complete and comprehensive setoff of
input goods and services and phasing out of Central Sales Tax (CST) would reduce the cost of
locally manufactured goods and services. This will increase the competitiveness of Indian
goods and services in the international market and give boost to Indian exports.
To Industry:
Manufacturing sector in India is one of the highly taxed sectors in the world. A complex and
high taxation structure has the tendency to render products uncompetitive in the international
market or consume large portions of the cost arbitrage available in manufacturing set-ups in
low cost economies such as India. GST when enforced would eliminate complexities in the
present taxation structure and consequently prevent the loss of nearly 50% of the advantage of
lower manufacturing costs that India has over the western nations.
To Centre and State:
Approximately Rs 900 billion a year of profits are predicted by the government with the
implementation of GST as it is speculated to bring about raise in employment, promotion of
exports and consequently a significant boost in overall economic growth.
To Common Consumer:
With the introduction of GST, all the cascading effects of CENVAT and service tax will be
more comprehensively removed with a continuous chain of set-off from the producer’s point to
the retailer’s point than what was possible under the prevailing CENVAT and VAT regime.
Certain major Central and State taxes will also be subsumed in GST and CST will be phased
out. Other things remaining the same, the burden of tax on goods would, in general, fall under
GST and that would benefit the consumers.
CHALLENGES IN IMPLEMENTATION OF GST
The actual challenge before the Finance Minister is not of drafting a model GST but of its
proper implementation and smooth transition from the prevailing system. The challenges which
the Government has to face in introducing GST are 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 do not have the powers to levy a tax on supply of
services while the Centre does not have power to levy tax on the sale of goods. Thus, the
Constitution does 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 does not empower
the States to impose tax on imports. Therefore, it is essential to have Constitutional
Amendments for empowering the Centre to 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 is to the inclusion of taxes within the
ambit of GST. The bone of contention relates to inclusion of purchase taxes on food grain,
taxes on motor spirit and high-speed diesel (GSD), and octroi or entry tax in lieu thereof. The
foodgrain surplus states have been levying the purchase tax, the burden of which is exported to
non-residents.
The states are reluctant to bring motor spirit and high speed diesel within the ambit as presently
the tax is levied at a floor rate of 20% and the states derive about 35% of their sales tax
collections from these petroleum products.
Rationalization of GST rate:
Another issue to be decided is the rates of central and state GSTs to be levied. It is expected
that the tax rates would be revenue neutral. This implies that in the short term, there would not
be any revenue loss or gain, but over time the revenue productivity is expected to increase due
to better compliance of the tax and increased productivity of the economy.
Rates charged across all states and the central level will be uniform along with the regulations,
definitions and classifications for effective implementation of GST However, due to dispute
between Central and State Government, it has been agreed to include a floor rate with bands to
allow States the freedom to have a high or low rate.
Rationalization of threshold and exemption limits:
To get the full benefits of GST, it is necessary to rationalize threshold limit and exemption
limits. However, there are dispute between Central Government and State Government
regarding finalizing of threshold limit. State Governments are in view of to keep 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 is defining the place of supply in respect of
certain services and intangible properties. In the existing tax regime, place of supply is not a
big issue because service is taxed by the Centre and the place of levy does not affect revenue
receipts. In GST, however, the place of supply will have to be clearly defined to avoid disputes
among states in case of interstate transactions.
Time of Supply:
Time of supply will explain the point at which tax would be levied invoice date, due date or
payment date. Currently, different taxes are levied by the Centre and the states at various
stages. These variations will be eliminated in GST.
Rapid increase in Assesses:
The dual GST model will widen the tax net by taxing every economic supply in the distribution
network. This will lead to rapid increase in assesses. It will require 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 will generate revenue in a neutral and transparent way,
the Government will have to ensure that the ultimate consumer is not burdened with tax beyond
his capacity.
In addition to above Government have to decide 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
Impact of GST on Indian Economy
The studies assessing impact of GST are limited as the design of GST was not clear till the
First Discussion Paper. Thirteenth Finance Commission has undertaken a study with NCAER,
a Delhi based think-tank on cost-benefit analysis of GST regime in India. The highlights of the
report were:
Medium term gains:
GST could to increase India’s GDP somewhere within a range of 0.9% to 1.7%. The
comparable dollar value increment is estimated to be between $9.5 billion and $18.6 billion
respectively.
Long term gains:
The additional gain in GDP, originating from the GST reform, would be earned during all years
in future over and above the growth in GDP which would have been achieved otherwise. It
estimates present value of total gain in GDP between $325 billion and $637 billion. This is
nearly 30-60% of the size of Indian economy currently!
Export gains:
GST will lower the overall tax inputs in supply chain of goods and services leading to lower
prices of Indian goods and services. This will increase the competitiveness of Indian goods and
services in the international market and give boost to Indian exports. The uniformity in tax
rates and procedures across the country will also go a long way in reducing the compliance
cost. These gains are expected to vary between 3.2 % - 6.3% with corresponding absolute value
range between $5.4 billion - $10.7 billion, respectively. Imports are expected to gain
somewhere between 2.4 and 4.7% with corresponding absolute values $6.9 billion and $13.6
billion, respectively.
Others:
GST would lead to efficient allocation of factors of production. The overall price level would
go down. It is expected that the real returns to the factors of production would go up. NCAER
results show gains in real returns to land ranging between 0.42 and 0.82 per cent. Wage rate
gains vary between 0.68 and 1.33%. The real returns to capital would gain somewhere between
0.37 and 0.74%. Kelkar adds that GST could help add productive employment of as much as 4
to 5 million. Barring impact on economy, GST could help the consumers as well. The lower
taxation will lead to lower prices of goods and services.
However, going by the above international experiences there could be two additional problems.
Inflation:
Most of the international case studies show an inflation spurt in initial months of GST
implementation. In main reason for spurt in prices of goods which consumers thought would
become expensive after the GST. Much of blame for inflation is accorded to the various
regulatory bodies and uncertainty over the new tax regime. The inflation situation stabilizes as
implementation gains pace and is understood by consumers and producers. In India’s case
inflation could be critical as unlike developed countries, India has far more inefficiencies in
supply chain in local markets. The Indian GST reform is far larger in scale compared to above
economies of developed countries. These rigid inefficiencies along with higher information
asymmetry on probable impact of GST could push inflation higher in initial days of
implementation. Indian economy is already plagued with persistent high inflation and this new
reform could further test inflation further.
Tax Revenue Shortfall:
RBI in the State Finances Report (2010-11) said the revenue implications of GST are likely to
vary across states. The Centre and the States are still discussing various aspects of GST like
taxation rates, revenue sharing model between Centre and States etc. As there is still
uncertainty over the final blueprint of GST, it is difficult to estimate the impact of GST on state
finances. The report points that VAT led to improvement in tax revenue for most states.
However, just like VAT there could be some short-falls in revenues in some states over a short
term.
The central government has already proposed a Rs 50,000 Cr fund to help the states which
suffer from the short-fall. However, a higher shortfall could lead to both Centre and States to
borrow more from the markets. This will be critically watched as it has further ramifications on
fiscal deficits, interest rates and inflation.
What are the major chronological events that have led to the introduction of GST?
GST is being introduced in the country after a 13 year long journey since it was first discussed
in the report of the Kelkar Task Force on indirect taxes. A brief chronology outlining the major
milestones on the proposal for introduction of GST in India is as follows: a. In 2003, the Kelkar
Task Force on indirect tax had suggested a comprehensive Goods and Services Tax (GST)
based on VAT principle. A proposal to introduce a National level Goods and Services Tax
(GST) by April 1, 2010 was first mooted in the Budget Speech for the financial year 2006-07.
Since the proposal involved reform/ restructuring of not only indirect taxes levied by the Centre
but also the States, the responsibility of preparing a Design and Road Map for the
implementation of GST was assigned to the Empowered Committee of State Finance Ministers
(EC). Based on inputs from Govt of India and States, the EC released its First Discussion Paper
on Goods and Services Tax in India in November, 2009. In order to take the GST related work
further, a Joint Working Group consisting of officers from Central as well as State Government
was constituted in September, 2009. In order to amend the Constitution to enable introduction
of GST, the Constitution (115th Amendment) Bill was introduced in the Lok Sabha in March
2011. As per the prescribed procedure, the Bill was referred to the Standing Committee on
Finance of the Parliament for examination and report. Meanwhile, in pursuance of the decision
taken in a meeting between the Union Finance Minister and the Empowered Committee of
State Finance Ministers on 8th November, 2012, a ‘Committee on GST Design’, consisting of
the officials of the Government of India, State Governments and the Empowered Committee
was constituted.
This Committee did a detailed discussion on GST design including the Constitution (115th)
Amendment Bill and submitted its report in January, 2013. Based on this Report, the EC
recommended certain changes in the Constitution Amendment Bill in their meeting at
Bhubaneswar in January 2013. The Empowered Committee in the Bhubaneswar meeting also
decided to constitute three committees of officers to discuss and report on various aspects of
GST as follows:
(a) Committee on Place of Supply Rules and Revenue Neutral Rates
(b) Committee on dual control, threshold and exemptions
(c) Committee on IGST and GST on imports. The Parliamentary Standing Committee
submitted its Report in August, 2013 to the Lok Sabha. The recommendations of the
Empowered Committee and the recommendations of the Parliamentary Standing Committee
were examined in the Ministry in consultation with the Legislative Department. Most of the
recommendations made by the Empowered Committee and the Parliamentary Standing
Committee were accepted and the draft Amendment Bill was suitably revised. The final draft
Constitutional Amendment Bill incorporating the above stated changes were sent to the
Empowered Committee for consideration in September 2013. The EC once again made certain
recommendations on the Bill after its meeting in Shillong in November 2013. Certain
recommendations of the Empowered Committee were incorporated in the draft Constitution
(115th Amendment) Bill. The revised draft was sent for consideration of the Empowered
Committee in March, 2014. m. The 115th Constitutional (Amendment) Bill, 2011, for the
introduction of GST introduced in the Lok Sabha in March 2011 lapsed with the dissolution of
the 15th Lok Sabha. n. In June 2014, the draft Constitution Amendment Bill was sent to the
Empowered Committee after approval of the new Government.
Based on a broad consensus reached with the Empowered Committee on the contours of the
Bill, the Cabinet on 17.12.2014 approved the proposal for introduction of a Bill in the
Parliament for amending the Constitution of India to facilitate the introduction of Goods and
Services Tax (GST) in the country. The Bill was introduced in the Lok Sabha on 19.12.2014,
and was passed by the Lok Sabha on 06.05.2015. It was then referred to the Select Committee
of Rajya Sabha, which submitted its report on 22.07.2015.
Will cross utilization of credits between goods and services be allowed under GST
regime?
Cross utilization of credit of CGST between goods and services would be allowed. Similarly,
the facility of cross utilization of credit will be available in case of SGST. However, the cross
utilization of CGST and SGST would not be allowed except in the case of inter-State supply of
goods and services under the IGST model.
How will IT be used for the implementation of GST?
For the implementation of GST in the country, the Central and State Governments have jointly
registered Goods and Services Tax Network (GSTN) as a not-for-profit, non-Government
Company to provide shared IT infrastructure and services to Central and State Governments,
tax payers and other stakeholders. The key objectives of GSTN are to provide a standard and
uniform interface to the taxpayers, and shared infrastructure and services to Central and
State/UT governments. GSTN is working on developing a state-of-the-art comprehensive IT
infrastructure including the common GST portal providing frontend services of registration,
returns and payments to all taxpayers, as well as the backend IT modules for certain States that
include processing of returns, registrations, audits, assessments, appeals, etc. All States,
accounting authorities, RBI and banks, are also preparing their IT infrastructure for the
administration of GST.
There would no manual filing of returns. All taxes can also be paid online. All mis-matched
returns would be auto generated, and there would be no need for manual interventions. Most
returns would be self-assessed.
How will imports be taxed under GST?
The Additional Duty of Excise or CVD and the Special Additional Duty or SAD presently
being levied on imports will be subsumed under GST. As per explanation to clause (1) of
article 269A of the Constitution, IGST will be levied on all imports into the territory of India.
Unlike in the present regime, the States where imported goods are consumed will now gain
their share from this IGST paid on imported goods.
Tax liability on composite and mixed supplies.
The tax liability on a 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
particular supply which attracts the highest rate of tax.
Time of Supply of Goods
(1) The liability to pay tax on goods shall arise at the time of supply, as determined in
accordance with the provisions of this section.
(2) The time of supply of goods shall be the earlier of the following dates, namely
(a) the date of issue of invoice by the supplier or the last date on which he is required, under 32
section 31, to issue the invoice with respect to the supply
(b) the date on which the supplier receives the payment with respect to the supply: Provided
that where the supplier of taxable goods receives an amount up to one thousand rupees in
excess of the amount indicated in the tax invoice, the time of supply to the extent of such
excess amount shall, at the option of the said supplier, be the date of issue of invoice in respect
of such excess amount.
Explanation 1. For the purposes of clauses (a) and (b), ―supply‖ shall be deemed to have been
made to the extent it is covered by the invoice or, as the case may be, the payment.
Explanation 2. For the purposes of clause (b), ―the date on which the supplier receives the
payment‖ shall be the date on which the payment is entered in his books of account or the date
on which the payment is credited to his bank account, whichever is earlier. (3) In case of
supplies in respect of which tax is paid or liable to be paid on reverse charge basis, the time of
supply shall be the earliest of the following dates, namely: (a) the date of the receipt of goods;
(b) the date of payment as entered in the books of account of the recipient or the date on which
the payment is debited in his bank account, whichever is earlier; or (c) the date immediately
following thirty days from the date of issue of invoice or any other document, by whatever
name called, in lieu thereof by the supplier: Provided that where it is not possible to determine
the time of supply under clause (a) or clause (b) or clause (c), the time of supply shall be the
date of entry in the books of account of the recipient of supply. (4) (a) (b) (5) In case of supply
of vouchers by a supplier, the time of supply shall be the date of issue of voucher, if the supply
is identifiable at that point; or the date of redemption of voucher, in all other cases. Where it is
not possible to determine the time of supply under the provisions of sub-section (2) or sub-
section (3) or sub-section (4), the time of supply shall (a) in a case where a periodical return has
to be filed, be the date on which such return is to be filed; or (b) (6) in any other case, be the
date on which the tax is paid. The time of supply to the extent it relates to an addition in the
value of supply by way of interest, late fee or penalty for delayed payment of any consideration
shall be the date on which the supplier receives such addition in value.
Time of Supply of Services
(1) The liability to pay tax on services shall arise at the time of supply, as determined in
accordance with the provisions of this section.
(2) The time of supply of services shall be the earliest of the following dates, namely:— (a) the
date of issue of invoice by the supplier, if the invoice is issued within the period prescribed
under 33 section 31 or the date of receipt of payment, whichever is earlier; or (b) the date of
provision of service, if the invoice is not issued within the period prescribed under 34 section
31 or the date of receipt of payment, whichever is earlier; or (c) the date on which the recipient
shows the receipt of services in his books of account, in a case where the provisions of clause
(a) or clause (b) do not apply: Provided that where the supplier of taxable service receives an
amount up to one thousand rupees in excess of the amount indicated in the tax invoice, the time
of supply to the extent of such excess amount shall, at the option of the said supplier, be the
date of issue of invoice relating to such excess amount.
Explanation.––For the purposes of clauses (a) and (b)–– (i) the supply shall be deemed to have
been made to the extent it is covered by the invoice or, as the case may be, the payment; (ii)
―the date of receipt of payment‖ shall be the date on which the payment is entered in the books
of account of the supplier or the date on which the payment is credited to his bank account,
whichever is earlier. (3) In case of supplies in respect of which tax is paid or liable to be paid
on reverse charge basis, the time of supply shall be the earlier of the following dates, namely:–
– (a) the date of payment as entered in the books of account of the recipient or the date on
which the payment is debited in his bank account, whichever is earlier; or (b) the date
immediately following sixty days from the date of issue of invoice or any other document, by
whatever name called, in lieu thereof by the supplier: Provided that where it is not possible to
determine the time of supply under clause (a) or clause (b), the time of supply shall be the date
of entry in the books of account of the recipient of supply: Provided further that in case of
supply by associated enterprises, where the supplier of service is located outside India, the time
of supply shall be the date of entry in the books of account of the recipient of supply or the date
of payment, whichever is earlier. (4) (a) (b) (5) In case of supply of vouchers by a supplier, the
time of supply shall be–– the date of issue of voucher, if the supply is identifiable at that point;
or the date of redemption of voucher, in all other cases. Where it is not possible to determine
the time of supply under the provisions of sub-section (2) or sub-section (3) or sub-section (4),
the time of supply shall–– (a) in a case where a periodical return has to be filed, be the date on
which such return is to be filed; or (b) (6) in any other case, be the date on which the tax is
paid. The time of supply to the extent it relates to an addition in the value of supply by way of
interest, late fee or penalty for delayed payment of any consideration shall be the date on which
the supplier receives such addition in value.
GST Rates
The GST Council determines the GST rate slabs. The GST Council reviews the rate slabs for
goods and services on a regular basis. GST rates are typically high for luxury items and low for
necessities. GST rates in India for various goods and services are divided into four slabs: 5%
GST, 12% GST, 18% GST, and 28% GST.
Since the inception of the Goods and Services Tax, the GST council has revised the GST rates
for various products several times (GST). The most recent rate revision went into effect at the
41st GST Council Meeting on August 27, 2020. Previously, there had been numerous GST
Council Meetings at which certain rate revisions were introduced.
The GST Rates in 2023
The following are some of the changes that were made
The SGST replaces various state-level taxes such as lottery tax, luxury tax,
VAT, purchase tax and sales tax.
However, if the transaction of the goods is interstate (outside the state), then
both SGST and CGST are applied. But, if the goods and services are transactions
within the state, only SGST is imposed.
The rate of GST is equally divided among the two types of GSTs. For instance,
when the traders sell their commodities within their state, they must pay SGST and
CGST. The revenue earned from SGST belongs to the state government and revenue
from CGST to the central government.
The SGST of various goods and services depends on the government
notification published from time to time.
SGST Rates
Commodities SGST
Processed foods 6%
Electronic goods
CGST Rates
Commodities CGST
Processed foods 6%
Electronic goods
GSTR-4 GST filing for taxpayers The due date is the 30th of the
registered under the month succeeding a financial year.
composition scheme under
section 10 of the CGST
Act (Supplier of goods)
and CGST (Rate)
Limitations:
It's crucial to acknowledge the limitations in your research, as these can affect the reliability and
generalizability of your findings. You have identified the following limitations:
1) Response Bias: There is a possibility that respondents may have biases in their responses.
Their answers may be influenced by personal views or external factors, potentially skewing the
results.
2) Limited Access to Secondary Data: Your access to secondary data regarding income filing
was restricted to a specific region, which may limit the comprehensiveness of your study.
3) Accuracy of Information: People may not always provide accurate information, whether due
to a lack of understanding or other reasons. This could introduce inaccuracies into your findings.
4) Reluctance of Respondents: Some respondents may be uncooperative or act rudely during data
collection, making it challenging to obtain the desired information.
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.
Uniform Implementation of GST should be ensured across all states (unlike the staggered
implementation of VAT) as many issues might arise in case of transactions between
states who comply with GST and states who are not complying with GST.
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 will give 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 Central and State taxes in the GST. The transparent and
complete chain of set-offs which will result in widening of tax base and better tax compliance
may also lead to lowering of tax burden on an average dealer in industry, trade and agriculture.
The subsuming of major centre and state taxes would reduce the cost of locally manufactured
goods and services. This is likely to increase the competitiveness of Indian goods and services in
the international market and to boost Indian exports.
GST is expected to bring many benefits to the Indian economy. Though, all these benefits are
based on the assumption that overall taxation structure is less bureaucratic and cumbersome than
present. The implementation is going to be crucial so that the promised benefits are realized.
The Government also needs to be weary of inflation spurts in initial implementation phase of
GST as pointed by experiences from international economies. Ideally, one should be first easing
all these state-wide inefficiencies and then implement GST. However given the challenges in
India, the policymakers are hoping GST will help ease these inefficiencies and eliminate them
over a period of time.
Implementation of GST is one of the best decision 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 would not be easy. Confusions and complexities were expected and
will happen. India, at some point, had to comply with such regime. Though the structure might
not be a perfect one but once in place, such a tax structure will make India a better economy
favorable for foreign investments. Until now India was a union of 29 small tax economies and 7
union territories with different levies unique to each state. It is a much accepted and appreciated
regime because it does away with multiple tax rates by Centre and States. And if you are doing
any kind of business then you should register for GST as it is not only 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.
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
can be effectively 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.
A ‘flawless’ GST in the context of the federal structure which would optimize efficiency, equity
and effectiveness. The ‘flawless’ GST is designed as a consumption type destination VAT based
on invoicecredit method.
REFERENCES AND BIBLIOGRAPHY
http://www.cbec.gov.in/deptt_offcr/gst-status-18032014.pdf
http://www.empcom.gov.in/content/188_1_PhasingoutofCST.aspx
Abisheka Rastogi (2009), Illustrated Guide to Goods and Services Tax (GST)
http://www.taxmanagementindia.com/wnew/detail_rss_feed.asp?ID=1226
www.goodsandservicetax.com
M.Govinda Rao (2014), GST in India: Challenges and prospects, extracted from
http://www.livemint.com /Opinion/ FtsFwtT50bMOc9HjHlJOLJ/ GST-in-India-Challenges-and-
prospects.html
Sherry (2007), Goods & Service Tax (GST) in India - A move towards tax reforms, Service Tax
Today
Verma A(2008), Goods and Service Tax: eagerly awaited in India, Service Tax Today
CA Rajat Mohan (2013, August 13), Goods and Services Tax (GST) - A step forward, extracted
from http://articles.economictimes.indiatimes.com/2013-08-13/news/ 41374977_1_servicestax-
state-gst-goods-and-services/2
WEBSITES:-
http://www.businessalligators.com/gst-impact-rates-type-conclusion/
https://www.omicsonline.org/open-access/a-research-paper-on-an-impact-of-goods-and-
service-tax-gst-on-indianeconomy-2151-6219-1000264.php?aid=82626