PROJECT REPORT
(Submitted for the Degree of B.Com. Honours in Accounting & Finance
under the University of Calcutta)
TITLE OF THE PROJECT:
“GOODS & SERVICES TAX”
SUBMITTED BY
Name of the Student: HRITTIK KUMAR GUPTA
Registration Number :016-1111-0451-19
Name of the College: SYAMA PRASAD COLLEGE
CU exam Roll Number: 191016-21-0158
SUPERVISED BY
Name of the Supervisor: DEBAYAN SENGUPTA
Name of the College: SYAMA PRASAD COLLEGE
MONTH & YEAR OF SUBMISSION:
Date:
Annexure-IA
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SUPERVISOR'S CERTIFICATE
This is to certify that HRITTIK KUMAR GUPTA a student of
B.Com. Honours in Accounting & Finance of SYAMA PRASAD
COLLEGE, under the University of Calcutta has worked under
my supervision and guidance for his/her Project Work and prepared a
Project Report with the title “GOODS & SERVICE TAX” which
he/she is submitting, is his/her genuine and original work to the best of
my knowledge.
Place: Kolkata Signature: ____________________
Date:. Name: DEBAYAN SENGUPTA
Designation: ASST. PROFESSOR
Name of the College: SYAMA PRASAD COLLEGE
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Annexure-IB
STUDENT'S DECLARATION
I hereby declare that the Project Work with the title “GOODS &
SERVICE TAX” submitted by me for the partial fulfilment of the
degree of B.Com. Honours in Accounting & Finance under
the University of Calcutta is my original work and has not been
submitted earlier to any other University /Institution for the fulfilment of
the requirement for any course of study.
I also declare that no chapter of this manuscript in whole or in part has
been incorporated in this report from any earlier work done by others or
by me. However, extracts of any literature which has been used for this
report has been duly acknowledged providing details of such literature in
the references.
Place: Kolkata Signature:______________
Date: Name: HRITTIK KUMAR GUPTA
Registration Number: 016-1111-0451-19
Roll No: 191016-21-0158
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ACKNOWLEDGEMENT
First of all i would like to thank my teachers for giving me the correct
guidance on the topic to complete this task just in time. Even though we
faced a lot of difficulties while trying to complete this task, I still managed
to complete it and i am glad about it.
A special thanks to Mr Debayan Sengupta, for being such a
good guidance to us while we were doing this task. He had given us an
appropriate example and knowledge in order to make us understand
more about this topic. He spends his time to explain the execution of this
idea in all the way.
Also a great thanks to my family and friends who tried their best to give
their support either by giving me a lot of encouragement to keep up with
this task or by supporting us financially and pay all the cost required to
complete this task.
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CONTENTS
Serial Title Page
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1 COVER PAGE 1
2 SUPERVISOR CERTIFICATE 2
3 STUDENT DECLARATION 3
4 ACKNOWLEDGMENT 4
5 CHAPTER 1: INTRODUCTION TO
THE TOPIC
6 CHAPTER 2: INTRODUCTION TO
THE GST
7 CHAPTER 3: DATA FINDINGS &
ANALYSIS OF GST
8 CHAPTER 4: CONCLUSION AND
RECOMMENDATIONS
9 BIBLIOGRAPHY
10 QUESTIONNAIRE
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CHAPTER 1
INTRODUCTION TO TOPIC
CONCEPT AND INTRODUCTION TO TAX:-
Taxation is the inherent power of the state to impose contribution upon persons, properties,
or right for the purpose of generating revenues for public purposes.Taxes are enforced
proportional contributions from persons to property levied by the law making body of the
state by virtue of its sovereignty for the support of the government and all public needs.
BRIEF HISTORY OF TAXATION.
→Tax is today an important source of revenue for the government in all the countries. More
than 3000years ago inhabitants of ancient Egypt and Greece used to pay tax, consumption
taxes and custom duties, income tax was first introduced in India in 1860 by James Wilson
who became Indian's first finance member.
In order to meet the losses sustained by the government on account of military mutiny of
1857. In 1918 a new income tax bill was passed and which was further again replaced in
1922. Finally, the ministry of law and finance, the income tax was passed in 1961 and was
brought and came into force on 1 April 1962, and this is also known as the financial year in
current era, i.e. (1.04.18 31.03.2020).
TAXATION SYSTEM.
Tax system of raising money to finance Government. All governments require payment of
money taxes from people.
Government use revenues to pay soldiers and police to build dams and roads, to operate
schools and hospitals, to provide food to the poor and medical care facilities etc and
hundreds of other purposes without taxes to fund its activities, government could not exist.
So, taxation is the most important source of revenues for modern government typically
according for 90% or more of their income.
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HISTORICAL BACKGROUND OF GOODS AND SERVICE TAX IN
INDIA.
1) Amaresh Baghchi report, 1994 suggests that the introduction of Value Added Tax will act
as root for implementation of Goods and Service Tax in India.
2) Ashinn Dasgupta, 2000 empowered committee, which introduces VAT systems in 2005,
which has replaced old age taxation system in India.
3) Vijay Kelkar task force 2004, it strongly recommended that the integration of indirect taxes
into the form of GST in India.
4) Announcement of GST to be implemented by 1 April, 2010 after successfully
implementation of VAT system in India and suggestion various committees and task force on
GST, the union government first time in union budget 2006-2007 announced that the GST
would be applicable from 1st April 2010.
5) The government has formed various joint working groups of state finance ministers to
study the impact of GST on various states.
6) The empowered committees of state finance ministers after various meetings reached on
amicable formulae for implementation of GST in India.
7) Task force of finance ministers has submitted their report in December 2009 on structure
of GST in India.
8) In August, 2013 standing committee on finance tabled its report on GST bill.
9) In December, 2014 revised constitution amendment bill was tabled in parliament.
10) On June, 14, 2016, the ministry of finance released draft model law on GST in public
domain for views and suggestions.
11) GST bill passes in Rajya Sabha on 3rd August, 2016, the constitution amendment (122)
bill 2014 was passes by Rajya Sabha with concern amendments which were as follows:-
a) The changes made by Rajya Sabha were unanimously passed by Lok Sabha. b) The final
step to the constitution (122) amendment bill, 2014, becoming an act was taken when the
Honorable President of India gave his final assent on September 8, 2016.
12) In 2017-four GST related bill were in passage to the Parliament.
a) Central GST bill.
b) Integrated GST bill.
c) Union territory GST bill.
d) GST (compensation to states) bill.
13) In 2017, GST council finalizes the GST rules and GST rates.
14) When GST is applicable - Modi government wanted to apply the bill from 1 July 2017,
but due to some legal problems GST bill was not applicable before 1" July 2017.
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NEED OF THE STUDY
In this following module, we are going to understand the need of the
undertaken topic, GST. Why is GST important? What is the need of this
system of tax?
Firstly, let us know the opportunities of GST briefly.
a) An end to cascading effects.
b) Growth of revenue in states and union.
c) Reduces transaction cost and unnecessary wastage.
d) Eliminates the multiplicity of taxation.
e) One point single tax.
f) Reduces average burden.
g) Reduces the corruption.
Let us now know the benefits of GST bill in India.
A) MAKE IN INDIA.
(i)Will help to create a unified common national market for India, giving a
boost to foreign investment and 'Make in India campaign'.
(ii)Harmonization of laws. Procedures and rates of tax.
(iii) Ultimately it will help in poverty eradication by generating more
employment and more financial resources.
(iv) Improve the overall investment climate in the country which will
naturally benefit the development in the states.
(v)Uniform SGST and IGST rates will reduce the incentive for evasion by
eliminating rate between neighboring states.
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B) EASE OF DOING BUSINESS.
(i)Simple tax regime with fewer exemptions.
(ii)Reduction is the multiplicity of taxes that are at present governing our
indirect tax system leading to simplification and uniformity.
(iii) Reduction in compliance cost - No multiple records keeping for a
variety of taxes - so lesser investment of resources and manpower in
maintaining records.
(iv) Timeliness to be provided for important activities like obtaining
registrations, refunds ete
(v)Electronic matching of input tax credits all-across India thus making
the process more transparent and accountable.
(C) BENEIFTS TO CONSUMERS:
(i)Final price of goods is expected to be lower due to seamless flow of
input tax credit between the manufacturer, retailer and service supplier.
(ii)It is expected that a relatively large segment of small retailers will be
either exempted from tax or will suffer very low tax rates under a
compounding scheme; purchase from such entities will cost less for the
consumers.
(iii) Average tax burden on companies is likely to come down which is
expected to reduce prices and lower price mean more consumption.
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LITREATURE REVIEW
The proposed GST is likely to change the whole scenario of current
indirect tax system. It is considered as the biggest tax reform since 1947.
Currently, in India complicated Indirect tax system is followed with
imbrications of taxes imposed by unions and states Separately. GST will
unify all the indirect taxes under an umbrella and will create a Smooth
national market.
GST was first introduced by France in 1954 and now is followed by 140
countries. Most Of the countries follow unified GST while some countries
like Brazil, Canada follow a Dual GST system where the tax is imposes
by the state and central both.
According to Tan and Chin-Fat (2000) -
Malaysian understanding regarding GST was still low. Based on a study
conducted by Djawadi and Faher (2013) pointed out that knowledge
about tax is important to increase
The thrust of authorities and also the citizens.
Ehtisham Ahmad and Satya Poddar (2009) -
They studied, "goods and service tax reform and intergovernmental
consideration in India, "and found that GST introduction will provide a
transparent tax system with increase in output and productivity of
economy in India. But the benefits of GST are critically dependent on
rational design of GST.
According to Patil et al. (2010). -
Public awareness towards GST is low. There are several factors that
discourage customers from accepting GST implementation in Malaysia
and the most important factor among all is a fear of price increase and
will cause the inflation.
According to Torgler (2011).
Tax morale is important to taxpayer awareness. On the other hand,
research by Tekeli (2011), using multiple regression analysis show that
the tax morale has insignificant relationship on tax awareness.
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A Tekeli (2011) conclusion is supported study by regarding cause and
consequences of tax morale.
According to Nishita Gupta (2014). -
In her study stated that implementations of GST in the Indian framework
will lead to commercial benefits which were untouched by the VAT
system and would essentially lead to economic development.
According to Jai Prakash (2014).-
In his research study he mentioned that the GST at the central and the
state level are expected to give more relief to industry, trade, agriculture
and consumer through a more comprehensive and wider coverage of
input tax set off and service tax set off, subsuming of several taxes in the
GST and planning out of CST.
According to Times of India dated (27 July, 2017),
It stated that the GST implication across the different places for the
same product has wider differences which the consumers are unaware,
resulting them in surprise. For example a sweet sold in a counter shop is
taxes with 5% but if it is served in a hotel it is taxed with 18%, this has
resulted in difference of consumers shopping to purchase the similar
products.
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OBJECTIVES OF THE STUDY
The main objectives of implementing GST are as
follows.
1.) To understand and study the concepts, ides and
implementation of GST in India.
2.) To analyze in detail the understanding of GST
among common people.
3.) To study, how far implementation of GST has
created positive or negative impact from the point of
view of common individual.
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CHAPTER -2
INTRODUCTION TO THE GST:
The Goods and Services Tax (GST), implemented on July 1, 2017, is
regarded as a major taxation reform till date implemented in India since
independence. The primary objective behind development of GST is to
subsume all sorts of indirect taxes in India like Central Excise Tax,
VAT/Sales Tax, Service tax, etc. and implement one taxation system in
India.
SALIENT FEATURES OF GST:
● GST is an indirect tax.
● For the words manufacture, sale, service, etc. the only ‘Supply’ is
used.
● GST is levied on supply of goods or service or both.
● It is a consumption based tax.
● GST is levied both by Central Government and State
Government/Union territory
● Tax paid on inward supplies is available as input tax credit against
tax on outward supplies subject to fulfillment of certain conditions.
● GST law is applicable all over India
OBJECTIVES OF GST:
● To Develop national Market- One Nation, one Tax
● To reduce multiplicity of indirect taxes.
● To Eliminate classification dispute between goods & services.
● To remove barriers in inter-State movement of goods
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:STRUCTURE OF GST
Dual model GST is applicable in India i.e. two varieties of GST will be
charged on same bill i.e. CGST (Central goods and service tax) and
SGST (State goods and service tax). On an Intra State Supply, both
CGST and SGST shall be applicable. Amount of CGST is revenue of the
Central Government and the amount of SGST is revenue of State
Government.
TYPES OF GST
● Central Goods and Services Tax (CGST)
● State Goods and Services Tax (SGST)
● Integrated Goods and Services Tax (IGST)
● Union Territory Goods and Services Tax (UTGST)
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BIBLIOGRAPHY
● Central Board of Excise and Customs, Ministry of
Finance. (2017).
● Goods and Services Tax Council. (2017).
● https://wordpress.com
● https://holisollogistics.com
● https://startuptalky.com
● https://taxguru.in
● Wikipedia, the free content encyclopedia
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QUESTIONNAIRE
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