GST Project

By Devanuj Roy
Acknowledgement
I would like to express my gratitude and thanks to my mathematics
teacher Indu ma’am for her wonderful guidance throughout this project.
I am also grateful to my parents for their continuous support to me
throughout this experiment, to my friends for their help, and to all those
who contributed directly or indirectly towards the completion of this
school project
During this project, I learned a lot about GST and helped me understand
it a lot.
Index
• What is GST
• Explanation of GST
• Why was GST implemented
• Benefits of GST
• Types of GST
• 1(A)
• 1(B)
WHAT IS GST?
• GST is known as the Goods and Services Tax. It is an indirect tax
which has replaced many indirect taxes in India such as the excise
duty, VAT, services tax, etc. The Goods and Service Tax Act was
passed in the Parliament on 29th March 2017 and came into effect
on 1st July 2017.
• The implementation of the Goods and Services Tax (GST) in India
was a historical move, as it marked a significant indirect tax
reform in the country. 
EXPLANATION OF GST
The president of India approved the constitutional amendment bill
for Goods and Services tax on 8th September 2016. The following
taxes that were bound by GST are :-
• Service tax and commercial tax
• Value added tax and food tax
• Purchase tax and luxury tax
• Advertisement tax and lottery Tax.
GST is administrated on both state and union government.
India has, since launching the GST on July 1, 2017, implemented the following
tax rates: 
• 0% tax rate applied to certain foods, books, newspapers, homespun cotton cloth, and hotel
services.
• A rate of 0.25% applied to cut and semi-polished stones.
• 5% tax on household necessities such as sugar, spices, tea, and coffee.
• 12% tax on computers and processed food.
• 18% tax on hair oil, toothpaste, soap, and industrial intermediaries.
• The final bracket, taxing goods at 28%, applies to luxury products, including refrigerators,
ceramic tiles, cigarettes, cars, and motorcycles.
WHY WAS GST IMPLEMENTED
GST was brought in as a revolutionary change and India's biggest
tax system overhaul since Independence. GST replaced a plethora of
indirect taxes such as states' sales tax, service tax, excise and many
more with a single central tax regime applied uniformly on all
products and services.
The main motive of GST is to reduce the cascading effect of tax on
the cost of goods and services and create a common, cooperative
and undivided Indian market to make economy stronger and
powerful.
Benefits of GST
• Easy Compliance:
A robust and comprehensive IT system would be the foundation of GST Regime in India. All tax-
payer services such as registrations, returns, payment etc. would be available online. It would make
compliance easy and transparent.
• Uniformity Tax Rates & Structures/Development of Common National
Market:
GST will ensure that indirect tax rates and structures are common across the country. It would
increase the certainty and ease of doing business. In other words, GST would make doing business in
the country tax neutral, irrespective of choice of place of doing business.
• Removal of cascading effect:
A seamless flow of tax-credit through-out the value chain and across boundaries of states, would
ensure that there is minimal cascading of taxes. This would reduce the hidden cost of doing business.
• Competitiveness:
Reduction in transaction cost of doing business would eventually lead to an improved
competitiveness for the trade & industry.
TYPES OF GST
The four types of GST are:-
• SGST (State Goods and Services Tax) –
SGST is levied by the state government on intra-state goods and service transactions.
SGST subsumes taxes such as VAT, entertainment tax and luxury tax.
• CGST (Central Goods and Services Tax) –
CGST is levied by the government on intra-state goods and service transactions. It is
levied along with SGST or UGST.
• IGST (Integrated Goods and Services Tax) –
Integrated Goods and Services Tax that is levied on inter sate goods and service
transactions. Under IGST taxes are bother shared by Centre and State. IGST also helps
you claim tax input credit.
• UGST (Union Territory Goods and Services Tax) –
Collected by the union territory for the transaction or movement of goods and services
which takes place within the union territory.
TYPES OF GST GST FULL FORM
 1(A)
QUANTITY MRP TOTAL MRP DISCOUNT SELLING PRICE IGST(18%)
• Q5)
35 420 14,700 10 13,230 2381.4

47 600 28,200 10 25,380 4568.4

20 350 7,000 20 5,600 1008

TOTAL 44,210 7957.8

Amount of bill = Selling price + IGST 

= 44,210 + 7957.8
= Rs. 52,167.8
Q9) MRP (in Rs. Quantity (no. Discount % MRP Selling price SGST (6%) CGST (6%)
per piece) of pieces)
225 20 40 4500 2700 162 162
320 30 30 9600 6720 403.2 403.2
300 12 50 3600 1800 108 108
250 40 40 10,000 6000 360 360
 Total       17,220 1033.2 1033.2

Amount of bill = Selling price + SGST + CGST 

= 17,220 + 2066.4
= Rs. 19,286.4
Q10) Number of Cost of each GST % MRP IGST  
services service (in Rs.)
8 680 5 5440 272

12 320 12 3840 460.8

10 260 18 2600 468

16 420 12 6720 806.4

TOTAL      18,600 2007.2

Amount of bill = Selling price + IGST 

= 18,600 + 2007.2
= Rs. 20,607.2
 1(B)
Q8)Let dealer A sell to dealer B at Rs. x 
B sold to the customer for 9000/-.
Tax collected by B = 18% of 9000 = 1620
Net Tax paid by dealer B is Rs. 324
Therefore tax paid by B to A is 1620 – 324 = 1296 /- 
18% of x = 1296
⇒ 18/100 x = 1296
⇒ x = 129600/18 = 7200
The amount (inclusive of GST) paid by dealer B
= 7200 + 18% of 7200
= 7200 + 1296
Rs. 8496
Q9)
Initial marked price by manufacturer A is Rs. 6000
B bought the T.V. at a discount of 20%.
Cost price of B = 80% of 6000 = Rs. 4800 ….(i)
GST paid by B for purchase = 18% of 4800 = Rs. 864 ….(ii)
B sells T.V. at discount of 10% of market Price
Selling price for B = 6000 - 10% of 6000 = Rs. 5400 …(iii)
GST charged by B on selling of T.V. = 18% of 5400
 = Rs. 972 …(iv)
GST paid by B to the government
= GST charged on selling price - GST paid against purchase price
= 972 - 864
=Rs. 108