A PROJECT REPORT

ON

“STUDY ON GOOD SERVICES TAX AND THEIR

IMPLEMENTATION IN DIFFERENT SECTOR”

Submitted To Savitribai Phule Pune University

In Partial Fulfilment of Requirement For The Award of The Degree of

MASTER OF BUSINESS ADMINISTRATION (MBA)

Submitted By
MOHINI BABAN GADEKAR.

Under The Guidance Of

DR. SHANTA ARAKERI

SINHGAD COLLEGE OF ENGINEERING,

Department Of Management Studies,
Vadgaon (Bk), Pune - 411041
Batch 2023-25

1
 DECLARATION

I, the undersigned, hereby declare that the project report entitle "STUDY ON GOOD
SERVICES TAX AND THEIR IMPLEMENTATION IN DIFFERENT SECTOR".
Written and submitted by me to the Savitribai Phule Pune University, pune in partial
fulfilment of the requirement for the award of degree of “Master of Business
Administration” under the guidance of Dr. SHANTA ARAKERI is my original work
except the topics on organizational profile and the conclusion drawn there in are based on the
material collected by myself.

Mohini B Gadekar.
Place: Pune
Date:

2
 CERTIFICATE

This is to certify that the project report entitled “A STUDY ON GOODS SERVICES TAX
AND THEIR IMPLEMENTATION IN DIFFERENT SECTOR” is a Bonafede work of Ms.
Mohini Baban Gadekar, student, department of department studies, sinhgad college of
Engineering, pune. This project report submitted herewith for the awards of the degree of
Master of Business administration of Savitribai phule pune university, pune is the result of
the original research work done under the supervision of Dr Shanta Arakeri and is found
complete and satisfactory
.

Project Guide Head of Department Principle

Dr. Shanta Arakeri Dr. Mamta Mishra Dr. S. D Lokhande

Date:

Place: Pune

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4
 INDEX

SR .NO CONTENTS PAGE NO

1. LIST OF TABLES 7

2. ACKNOWLEDGEMENT 8

3. EXECUTIVE SUMMARY 9

CHAPTER 1 INTRODUCTION 10-22

1.1 Current Indian Scenario

1.2 Global Scenario
1.3 Theoretical Aspects
1.4 Key Concepts and Definition
1.5 Outline of Problem
1.6 Review of Literature

CHAPTER 2 ORGANIZATION PROFILE 23-25

2.1 Profile
2.2 Introduction work of organisation
2.3 organisation and its founder
2.4 vision and mission

CHAPTER 3 INDUSTRY SCENARION 26-40

3.1 Industry Scenario

3.2 Major Players
3.3 Specific Information
CHAPTER 4 RESEARCH METHODOLOGY 41-46

4.1 Introduction
4.2 Research Design
4.3 Sampling Design
4.4 Data Collection

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CHAPTER 5 DATA ANALYSIS ANDINTERPRETATION 47-59

5.1 Introduction
5.2 Data Analysis
CHAPTER 6 FINDING AND CONCLUSION 60-63

6.1 Findings
6.2 Suggestion
6.3 Conclusion
6.4 Learning from the project
BIBLIOGRAPHY 64-66
4.

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 LIST OF TABLES

TABLE TITLE OF TABLE PAGE NO.

NO.

1.3 GST Tax structure 15

2.2 GST Tax Item 28

2.2.2 0% Tax Slab 30

2.2.2 5% Tax Slab 31

2.2.2 12% Tax Slab 32

2.2.2 18% Tax Slab 32

2.2.2 28% Tax Slab 33

2.2.2 GST Tax Slab Rates List for Different 34

Services
4.1. A Bajaj finser GST Calculation 48

4.1. B Purchase of Goods RUGVEDA PVT. LTD 50

4.1. B Sale of Goods RUGVEDA PVT. LTD 50

4.1.C Purchase Details of Pudhari Cloth store 52

4.1.C Sales details of Pudhari cloth Store 53

4.1. D Tax rates of car as per provision 55

4.1. D GST rates of car as per provision 56

5.1 Summary of case study 5

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 ACKNOWLEGEMENT

I take this opportunity as a privilege to express my deep sense of gratitude to Dr. S. D.

Lokhande, Principal, Sinhgad College of Engineering, Pune, without whose support; the idea
could not have been transmitted into this project.

I am thankful to Dr. Mamta A. Mishra (HOD, Department of Management Studies, Sinhgad

College of Engineering) and my project guide Dr. Shanta Arakeri for his constructive
support, valuable guidance, kind advice and encouragement throughout the duration of
developing this project.

I wish to express a special thanks to all teaching and non-teaching staff members, Department
of Management Studies, Sinhgad College of Engineering, Pune for their support. Lastly, I
here by thank all the people who have provided inputs to this project work directly or
indirectly.

Mohini B Gadekar

Date:
Place: Pune

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 EXECUTIVE SUMMARY

Goods and Services Tax (GST) is an indirect tax (or consumption tax) used in India on the
supply of goods and services. It is a comprehensive, multistage, destination-based tax:
comprehensive because it has subsumed almost all the indirect taxes except a few state taxes.
Multi-staged as it is, the GST is imposed at every step in the production process, but is meant
to be refunded to all parties in the various stages of production other than the final consumer
and as a destination-based tax, it is collected from point of consumption and not point of
origin like previous taxes.

Goods and services are divided into five different tax slabs for collection of tax - 0%,5%,
12%, 18% and 28%. However, petroleum products, alcoholic drinks, and electricity are not
taxed under GST and instead are taxed separately by the individual state governments, as per
the previous tax system.

SGST is levied by the state government on intra-state goods and service transactions. The
revenue collected through State Goods and Service Tax is earned by the state government
where the transaction is made. SGST subsumes earlier taxes such as VAT, entertainment tax,
luxury tax, octroi, tax on lottery and purchase tax.

CGST is levied by the central government on intra-state goods and service transactions. The
central government collects the revenue generated through Central Goods and Service Tax. It
is levied along with SGST or UGST and revenues are shared between the state and the centre.

IGST is the tax levied on inter - state goods and service transaction. It is applicable on
imports and exports as well. Under IGST, the taxes charged are shared by both the centre and
state. The SGST part of the tax goes to the state wherein the goods and services are
consumed. The major advantage is that it compels all businesses to come under the ambit of
this reform. The unified tax system and easy input credit avoid cascading effect of all the
taxes. Since this tax system is applicable all over the country, it removes the barriers of
interstate movement of goods.

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CHAPTER 1: INTRODUCTION

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1. INTRODUCTION

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. In other words, Goods and Service Tax (GST) is levied on the supply of goods and
services. Goods and Services Tax Law in India is a comprehensive, multi-stage destination-
based tax that is levied on every value addition. GST is a single domestic indirect tax law for
the entire country.

The tax is levied on goods and services sold within India's domestic boundary for
consumption. Implemented by a majority of nations worldwide with respective
customisations, the tax has been successful in simplifying the indirect taxation structure of
India. GST is levied on the final market price of goods and services manufactured internally,
thereby reflecting the maximum retail price. Customers are required to pay this tax on a
purchase of goods or services as an inclusion in their final price. Collected by the seller, it is
then required to be paid to the government, thus implying the indirect incidence.

The GST rates on different goods and services are uniformly applied across the country.
Goods and services have, however, been categorised under different slab. rates for tax
payment. While luxury and comfort goods are categorised under higher slabs, necessities
have been included in lower and nil slab rates. The main aim of this classification is to ensure
uniform distribution of wealth among residents of India.

1.1 CURRENT INDIAN SCENARIO:

Recently IMF has cautioned India on economic slowdown stating that India is in the midst of
a significant economic slowdown calling for urgent steps to check the slow down and
continuing with fiscal consolidation. The policy reforms suggested are ongoing cleaning up
of bank's balance sheets, strengthening of bank's governance, regular to oversight of NBCs,
monetary easing, GST related reforms, further ease of doing business, IBC related reforms,
expanding tax base and overall macro-economic management.

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The Parliamentary Standing Committee on Finance has asked the Centre to address the issue
of dwindling goods and services tax (GST) collections, which the Finance Ministry had
explained as reason for delay in the compensation to the states. It has also asked the
Government to prevent misuse of input tax credit (ITC) and take measures for increasing
GST compliance.

Along with GST Council meeting on 18.12.2019, States also had a pre- budget discussion
with Finance Minister. Some of the States (like Bihar, Kerala) have suggested for fiscal
expansion and relaxing the deficit target to 4% of the GDP by boosting consumption so as to
tide over the slowing economy. It seems that fiscal deficit will also rise due to weak revenue
collections in current year.

The 38th meeting of the GST Council was held on 18.12.2019 wherein few important
decisions were taken such as prescribing uniform tax rate of 28 percent for State owned and
State authorized lotteries, waiver of penalty and late fee on GST return, GSTR-1 if filed by
10th January, 2020, setting up a complaint redressal system, restricting input tax credit in
case of mis- matches from 20% to 10%, extension of due dates of filing Form 9 and 9C by
one month to 31st January, 2020, exemption on upfront payment on long term leases with or
more than 20% stake of Central or State Government and few others .

It can be said that the Council's decision to further restrict ITC on mismatched transactions to
10% (in place of 20%) will adversely impact the otherwise tax complaint tax payers for no
fault of theirs. It may also not add much to Government's kitty but will only complicate the
ITC and related tax administration. To the extent of ITC denied, there will be a pressure on
working capital, albeit a small amount in overall tax revenue.

The 38th GST Council was also the first for voting being taken up for a decision. Till now, all
decisions had been taken by consensus and no voting was resorted to. On the issue of uniform
GST rate on lotteries (both state run and state authorized), GST Council took decision of

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levying a uniform rate of 28% on all lotteries w.e.f. 1st March,2020. Presently, state run
lotteries attract 12% GST while others 28%. The resolution was favoured by 21 states.

In India where concept of 'cooperative federalism' has been crucial in GST implementation,
the tradition has been broken after 30 months of GST and 37 Council meetings, something
which was preserved so far. The FM could have acted more factually, some hand holding
done and consensus arrived. On compensation too, she should have taken states into
confidence to make good the 'trust deficit' and to ensure smooth way forward on GST. After
all, for GST, all states are important and ought to be heard, respected, compensated and
banked upon for revenue mobilization.

It is being stated that the Government and in particular the revenue is seriously concerned on
falling GST revenues over a period, and rightly so. We, all stake holders would unanimously
agree on this. Fixing targets and then pressurizing the officials to meet the target is not going
to work. The root of the problem lies in the nearby field which nobody is looking at, eyes
closed perhaps. We are witnessing a fall from 8% to4.5% in GDP growth in past few
quarters, roughly to half. In fact, one should be happy to see that tax revenue fall is not
commensurate. It is a human habit to crib at what we don't have rather than to be contended
with what we have. GST is only an example .MOF should ideally be looking at repairing the
economy and see that growth in all sectors of economy starts improving. Tax revenue is only
a consequent result which has no choice but to go up. So, address the economy first and then
expect tax revenues in result. That will also help the growth in all sectors and lead to good
days for one and all in a related move, Government has raised GST collection target to Rs.
1.10 crore per month from December 2019 onwards to ensure revenue collection as per
targets, of course without harassing the genuine taxpayers. GST officers shall ensure that
GSTR-1 and 3B returns are filed for which penalties / fines have been waived in recent
GSTC meeting. Fearing coercive action and waived fine, taxpayers may come forwarded and
file returns by 10th January, 2019, as stipulated as a waiver condition.

Many quarters have started voicing for holistic review of GST law and rules including rates.
In fact, the present GST cannot be termed as a perfect GST as it does not include all products

13
and services, there are barriers in input tax credit and GST rates are every now and then
distorted. It is high time that the GST Council look Atre viewing GST in a comprehensive
manner now.

1.2 GLOBAL SCENARIO OF GST:

Goods and service tax (GST) is globally known as VAT or a national level VAT (Value
Added Tax). It has been introduced in 160 countries of the world. To remove cascading effect
of taxes and provide a common nation-wide market for goods and services, India is moving
towards the introduction of Goods and Services Tax (GST). Most of the countries have a
unified GST system but some countries like Brazil and Canada are following a dual system of
GST where tax is levied by both the Union and the State governments. GST system was
firstly introduced in France in the year 1954. The standard GST rate in most countries ranges
between 15-20%. Most of the sectors are taxed except for few exemptions. The main
objective of the paper is to discuss the global scenario of GST. The paper also evaluates the
rationale of GST in India. The paper is divided into three sections. Section A discusses the
methodology, objective and concepts of GST; Section B deals with the global scenario of the
tax; Section C examines the need, importance and proposed structure of GST in India.
Currently, the indirect tax system in India is complicated with overlapping taxes levied by the
Centre and the State separately. Thus, the GST will facilitate a uniform tax levied on goods
and services across the country.

1.3 THEROTICAL ASPECT:

The Journey of GST in India:

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

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15
 Components of GST:
There are three taxes applicable under this system:
CGST, SGST & IGST.
 CGST: It is the tax collected by the Central Government on an intra-state sale (e.g., a
transaction happening within Maharashtra)
 SGST: It is the tax collected by the state government on an intra-state sale (e.g., a
transaction happening within Maharashtra)
 IGST: It is a tax collected by the Central Government for an inter-state sale (e.g.,
Maharashtra to Tamil Nadu)

In most cases, the tax structure under the new regime will be as follows:

Transaction New Regime Old Regime Revenue Distribution

Sale within the CGST+SGST VAT + central Revenue will be shared

state excise /service tax equally between the central
and the state.

Sale to another IGST Central sales tax + There will only be

state excise /service tax one type of tax (central)
in case of inter -state
sales. the central will then
share the IGST revenue
based on the destination
of goods.

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Illustration:

Let us assume that a dealer in Gujarat had sold the goods to a dealer in Punjab worth Rs.
50,000. The tax rate is 18% comprising of only IGST. In such a case, the dealer has to charge
IGST of Rs.9,000. This revenue will go to Central Government. The same dealer sells goods
to a consumer in Gujarat worth Rs. 50,000. The GST rate on goods is 12%. This rate
comprises CGST at 6% and SGST at 6%. The dealer has to collect Rs.6,000 as Goods and
Service Tax, Rs.3,000 will go to the Central Government and Rs.3,000 will go to the Gujarat
government since the sale is within the state.

KEY CONCEPT AND DEFINATIONS:

DEFINATION OF GST:

The goods and services tax (GST) is a value-added tax levied on most goods and services
sold for domestic consumption. The GST is paid by consumers, but it is remitted to the
government by the businesses selling the goods and services.

LIST OF TAXES SUBSUMED AFTER GST IMPLEMENTATION:

Goods & Service Tax was introduced as a comprehensive indirect tax structure. With this
introduction, the government aimed to consolidate all indirect taxes levied under one
umbrella. Thus, except customs duty that is levied on import of goods, Goods and Services
Tax replaced multiple indirect taxes. This introduction helped overcome the limitations of its
previous indirect tax structure regarding implementation and inefficiency in the collection
process. Following is the list of indirect taxes that were subsumed by Goods and Service Tax.

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  Indirect taxes imposed by the central government
1. Central Sales Tax
2. Service Tax
3. Central Excise Duty
4. Excise Duty (Additional)
5. Countervailing Duty or Additional Customs Duty
6. Special Additional Customs Duties

 Indirect taxes imposed by the state government

1. State VAT
2. Entry Tax and Octroi Duty
3. Luxury Tax
4. Amusement and Entertainment Tax
5. Taxes on Advertisements
6. Goods and services related to cess and surcharges
7. Tax on betting, lottery and gambling.
8. Understanding the Dual Structure of Goods and Services Tax

Unlike a federal structure where the government collects taxes and distributes it to the states,
a dual tax structure allows both the centre and the state to levy and collect taxes. Goods and
Services Tax in India carries this same dual structure, thus having two components, state as
well as a central levy. The structure is applicable to all transactions related to goods and
services.

UDERSTANDING THE GOODS AND SERVICES TAX (GST):

The goods and services tax (GST) is an indirect federal sales tax that is applied to the cost of
certain goods and services. The business adds the GST to the price of the product, and a
customer who buys the product pays the sales price plus the GST. The GST portion is
collected by the business or seller and forwarded to the government. It is also referred to as
Value-Added Tax (VAT) in some countries.

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THE GOODS AND SERVICES TAX (GST) SYSTEM WORK:
Most countries with a GST have a single unified GST system, which means that a single tax
rate is applied throughout the country. A country with a unified GST platform merges central
taxes (e.g. sales tax, excise duty tax, and service tax) with state-level taxes (e.g. entertainment
tax, entry tax, transfer tax, sin tax, and luxury tax) and collects them as one single tax. These
countries tax virtually everything at a single rate.

1.5 OUTLINE OF THE PROBLEM

1. NEED FOR THE STUDY:
The implementation of GST is being widely discussed as one of the most important pieces of
economic (and specifically, tax) legislation in removing various distortions in the existing tax
regime and bringing growth opportunities for businesses help GST.

It leads to a high-cost and inefficient tax structure prone to evasion and revenue leakage.
Hence, the pressing need for a modern integrated goods and services tax GST), with tax
payable only on the value added at each stage of output and set-offs available along the value
chain, both at the Centre and the states. The study will help us to know the problem of GST
and their impact on common people.

2. OBJECTIVE OF STUDY:
1. To study GST and their concept in detail.
2. To understand how calculation of GST impact on different sector in India.
3. How to calculate GST in different sector.
4. To Analysis about challenges Faced By different Sector and How common people
complete all the process of GST.

3. SCOPE OF THE STUDY:

 The study will pave the way to the academic as well as general public about the
overall advantages and disadvantages of implementation of GST in India.

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  The tax is included in the final price and paid by consumers at point of sale and
passed to the government by the seller. This study will help all to know the
people importance of implementation of GST.
 Goods and Services Tax is a destination-based, multi-stage, comprehensive tax
levied at each stage of value addition. Having replaced multiple indirect taxes
in the country, it has successfully helped the Indian Government achieve its
"One Nation One Tax' agenda.

CHALLENGES IN IMPLEMENTING GST:

1. Note ban has huge impact on the Goods and Services Tax (GST) a serious doubt on
implementing GST by the central government's targeted deadline of April 1, 2017.

2. The impact of the November 8 demonetization of high value currency on their respective
economies to underline that it is not the appropriate time to implement. That could have an
unstable effect on the economy.

3. The Centre continues to be un compromising on the issue of jurisdiction over assesses, the
states maintain.

4. Political reasons are determining the fate of GST, which is not the correct thing, because
ideally GST is an economic and tax reform, and economic and tax reform should not be
dictated by political.

5. Manufactures, traders and society are eagerly waiting not only for the date of
introduction of GST but also for the rate application to the products and services.

6. GST will also have impact on cash flow and working capital. Cash flow and working
capital of adversely affected as they will have to pay GST at full rate on stock transfer from
one state to another. Currently CST/VAT is payable on sale and not stock transfers.

7. Implementation of GST in Unorganized sectors i.e, unregistered firm will be unfavorable

to government.

1.6 REVIEW OF LITERATURE:

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 Data analysis is based on the secondary data, it can vary from place-to-place industry
to industry or research to research.

 Regression Analysis towards Estimating Tax Evasion in Goods and Services Tax,
conference 2018 IEEE/WIC/ACM International Conference on Web Intelligence
paper, dated on December 2018, by Priya Mehta, Indian institute of technology
Hyderabad

Tax evasion is as old as tax itself. In this paper, we devise a technique to predict the
amount of tax-revenue lost by the state due to unscrupulous actions from a particular set
of suspicious dealers. For the same, we build a regression model using the tax-return
information of genuine business dealers and predict the amount of tax evaded by
suspicious business dealers. Dealers are classified as genuine or suspicious by applying
Benford's analysis on the different group of dealers formed after running k-medoids
clustering algorithm over a set of dealers. In addition to getting an estimate on the loss of
tax-revenue, results obtained from this work aid the tax enforcement officers on taking
precautionary measures against tax evasion. The dataset used in the work is provided by
the commercial tax department of Telangana state, India.

 Economic Consequences of GST in India, written by D. Amutha, St. Mary's

College (Autonomous) - Economics Department, Date Written: January 8, 2018.

The research paper focuses on the economic consequences of Goods and Services Tax
(GST) personified newly in the Indian Tax structure. The paper also discusses the
anticipated barriers and future predictions for GST. The Goods and Services Tax (GST) is
a vast notion that simplifies the giant tax structure by supporting and augmenting the
economic growth of a country. GST is a comprehensive tax levy on manufacturing, sale
and consumption of goods and services at a national level. India's historic and bold move
towards integrated tax structure is viewed by most economists as an answer to regressive
indirect tax structure. It is a comprehensive tax system that will subsume all indirect taxes
of states and central governments and unified economy into a seamless national market.
An important feature of GST is that products and services are equalized and are taxed at a
fixed rate until customers access it within the supply chain. Therefore, tax reforms give
equal rights to large and small businesses and taxpayers. Another important feature of
India's GST rollout is that it is dual-based. In other words, both central and multiple
government agencies will release GST separately. The central government will charge

21
CGS

22
 T and the state will charge SGST respectively. However, the tax, tax and taxation
standards are the same. This is necessary in view of the federal structure of the
government if governments are free to manage their own taxes at two levels. GST would
help in lesser corruption and increased tax revenue. It contributes towards a better and
improved economy with single taxation. The system will make it easier to identify the tax
defaulters In India, GST is imposed on goods and services income. It is expected to iron
out wrinkles of existing indirect tax system and play a vital role in growth of India. It is
believed that GST would put India's indirect tax structure at par with more than 140
countries and would be productive for all the sectors. Implementation of such reforms
does face surmountable challenges; however, this is expected to bring in benefits in the
form of higher GDP and also transparency in the tax system. The GST would be imposed
on the value - addition and thus would leave lesser scope for tax evasion.
Keywords: GST, Tax and Services, Economic Growth, Cascading Effects, Tax Evasion.

 A study on implementation of goods and services tax (GST) in India:

Prospectus and challenges, Amandeep Kaur. Assistant Professor, Baba Farid
College, Bathinda.

There is mixed response, inexplicit, arguments and opinions among the Manufactures, traders
and society about the Goods and Services Tax (GST) to be implemented by Government of
India from 1st April 2017 this year. Various news organizations from all around the world
focused on the bill unifying the country and it being an achievement of the government. As
the Goods and Services Tax Bill was passed in the Rajya Sabha, it also brought India at the
center of the global economy. With the passing of the bill, many international newspapers
published their views on how the GST Bill brings a new wave of economic reform in the
country. The paper highlights the background, Prospectus and challenges in Implementation
of Goods and services Tax (GST) in India. Finally, the paper examines and draws out a
conclusion.
Keywords: Rajya Sabha, global economy, goods and service.

23
CHAPTER 2: ORGANIZATION PROFILE

24
2.1 ORGANIZATION PROFILE
PROFILE :
MAYA. S. JAGTAP ASSOCIATES AND CO. AUDITOR AND TAX CONSULTANT.
Mrs. Maya Sachin Jagtap
Address: Office no-206,City centre building, kalkai chouk, old Nagarpalika, shrigonda
Maharashtra 444805, IN
Taluka: Shrigonda, Dist: Ahemadnagar
Email ID: mayajagtap86@gmail .com

 Introduction Work Of Organisation:

Introduction of Maya. S. Jagtap Association And Co.

Tax consultant work is provides tax advice and support to individuals, businesses, and
organization on various tax issue. Their work typically involves preparing and submitting tax
returns, researching tax laws, advising on tax planning, and representing clients in disputes
with the tax authorities.

 Organisation And Its Founder :

25
Maya. S. Jagtap Association And Co, TAX CONSULTANT

Tax consultant profile in Shrigonda Tal -Shrigonda Dist – Ahemadnagar

 Vision And

Mission Vision

Statement

We will become the Tax advisor of choice through the creating of an environment where we
want to give of our best.

Mission statement

The provision of an integrated range of client focused services that will exceed our clients
expectations and assist them to improve, reduce and maintain the tax liability.

We are committed to creating a client focused culture and supporting and staff to achieve the
prime objective our professional and local communities are an integral part of our ability to
deliver on this mission.

26
CHAPTER 3: INDUSTRY SCENARIO

27
3.1. INDUSTRY SCENARIO
 It has been over two years since the Goods and Services Tax (GST) was rolled
out across the county, subsuming more than 15 indirect taxes and a host of
cesses. Replacing multiple taxes and cesses of state and central governments
into a single tax has been a major relief to trade and industry.
 The expectations from GST were varied. Businesses, whether large or small
expected fewer taxes, less paperwork, transparent rules, and easy
bookkeeping. Consumers expected to better products at a lower cost, and the
taxpayers were looking for more convenient ways of compliance.
 The IT-driven tax filing system of GST has made it difficult for intermediaries
in the value-added chain to evade taxes. There is no doubt that the process of
E- invoicing will help the global economy by curbing tax evasion as it enables
pre- populating of GST returns and e-way bills with the e-invoicing details.
 In addition, it would standardize the invoice format ensuring the inter-
operability of the data, practically eliminating fake invoices, providing a
complete trail of B2B transactions and enabling system-level matching of ITC
and output tax. Tax technologists are cautious and worried about its
implementation as this feature would require innovating and updating the
millions of existing business accounting software.
 E-invoicing would also add another layer of compliance for the taxpayers. A
new rule has been added in GST rules which restricts a registered person to
avail ITC on invoices or debit notes which are not reflected in GSTR-2A to
the extent of 20% of the eligible ITC reflected in GSTR-2A. By insertion of
this new tenet, the recipient taxpayer is being reprimanded for any trivial error
by the supplier in filing tax returns deferring the availability of an otherwise
eligible tax credit.
 This results in the working capital woes for a taxpayer fuelling the cost of
capital for a business. This restriction on availing ITC by the purchaser is
arbitrary and unjustified as it will certainly impact the working capital of
taxpayers as they have to pay more taxes when suppliers file belated returns in
Form GSTR-1. Other challenges the industry has been facing include an
increased compliance burden.
 To ensure smooth compliance for taxpayers as well as to ensure better
transparency in the system, the new GST returns filing system is planned to be

28
 launched in April 2020. The new returns system advocates the concept of regular
invoice upload and is proposed to be fully automated involving the
reconciliation of invoices before proceeding with ITC claims. It also facilitates
the benefit of the filing of nil return through SMS.
 The success of the proposed system can only be commented upon once the
systemin place, till then we have to take all the bold statements of GSTN with
a pinch of salt. GST Network has developed a massive system of identifying
potential are as of tax evasion by generating "Red flag alerts". Once the GST
system generates “red flag alerts", the information will be shared with the
taxmen for appropriate actions.
 The system generated "red flags" include default in payment of tax, non-filing
ofGSTR-3B, mismatch in the input tax credit claimed by businesses with the
returns filed by the supplier, generating e-way bill without the filing of returns,
etc. Going forward these reports would align taxpayers to cautiously file tax
returns without committing errors in the filing.
 Exclusion of certain items from GST creates distortions such as cascading of
tax and reversal of input tax credit. Since the tax on diesel and petrol gives
substantial revenue to states and Centre, it is obvious that bringing them into
the GST will be a difficult decision. Similarly, electricity and alcohol are items
on which only states have the power to impose an indirect tax. Rigorous
political attempts should be made to bring all excluded items into GST one by
one in the next five years.
 This act may be undertaken one at a time in a particular sequence of petroleum
products, electricity, real estate, and alcohol. On priority, it is up to the
government to address the capacity building amongst the lesser-endowed
participants, such as the small-scale manufacturers and traders.
 Ways have to be found for lowering the overall compliance cost, and
necessary changes may have to be made for the good of the masses. Shifting
the Indian economy on to a completely digital platform together with
reskilling and up skilling the workforce would be a good start. We have to
wait for the next year to see what does GST has in store for the taxpayers.
3.2 MAJOR PLAYER:

29
 India is notorious for its complex tax system. For new businesses and startups, it
becomes impossible to navigate through various direct and indirect taxes. Constant
changes to taxes like Service Tax are making things even worst. But now, the things
are set to change with new Goods and service tax – commonly known as GST.
 The Goods and Services Tax promises to alleviate this problem among many others.
It is being hailed as the game changer for India's economy and is being labelled as the
biggest change in the Constitution since India's independence. The Goods and
Services tax or commonly referred to as the GST will replace the indirect taxes levied
by the Central and State Governments and provide for a single and streamlined
process. It presents India as a unified market to businessowners and also aims at
bringing a lot of black money back into the mainstream economy. The tax will be
implemented at every step of value creation.

 [Link] Rate Slab:

Tax Products
Rates

0% Milk, eggs, curd, natural honey, fruits, vegetables, healthcare services,

and semi -polished stones included under this tax slab

5% House hold necessities such as edible oil, sugar, spices, tea, and coffee,
(except instant) are include. coal, Mishti/mithai (Indian sweets) and
lifesaving drugs are also Covered under this GST slab.
12% This includes computers and butter, ghee, almonds, processed food.

18% Hair oil, toothpaste and soaps, capital goods, ice cream and industrial
intermediaries are covered in this slab.

28% Luxury items such as small cars, molasses, cigar, carbonate, beverage,
online gaming, sports events like IPL, consumer durables like AC and
refrigerators, premium cars, cigarettes and aerated drinks, high-end
motorcycles are included here.

21
0
 Though edible items like sugar, tea and coffee are included in the 5% slab, milk does
not attract any tax under the new GST regime. The idea behind this is to ensure that
basic food items are available for everyone but instant food is kept out of this
category.

 Basic household items like toothpaste and hair oil, which currently attract 28%
tax, will be taxed at 18% only.
 Sweets will also be taxable at 5%.
 Tax rates on coal has also been reduced from 11.69% to just 5% in order to
relieve the pressure on power industries.
 GST also gives a major push to domestic industries as they will be able to
procure seamless input credit for capital goods. Make in India campaign is
set to flourish after this reform.
2. Tax Items:
 % No tax item/0 tax rate

No tax

 Goods - No taxes will be levied on goods like sanitary napkins, deities made of
stone, marbles or wood, Rakhi’s without any precious metals like gold, silver,
raw material used in brooms, Saal leaves and fortified milk, fruits, vegetables,
bread, salt, bindi, curd, sindoor, natural honey, bangles, handloom, besan,
flour, eggs, stamps, printed books, judicial papers, newspapers
 Services - All hotels and lodges who carry a tariff below INR 1,000 are
exempted from taxes under GST. The list also includes IMM courses and
bank charges on savings account, Jan Dhan Yojana

 5% TAX RATE
GST Tax Slab Of 5%

30
 Goods - The goods which will attract a taxation of 5% under GST include
skimmed milk powder, fish fillet, frozen vegetables, coffee, coal, fertilizers,
tea, spices, pizza bread, kerosene, ayurvedic medicines, agarbatti, sliced dry
mango, insulin, cashew nuts, unbranded namkeen, lifeboats, Ethanol- Solid
biofuel pellets- Handmade carpets and other handmade textile floor
coverings (including namda/Gabba)- Hand-made braids and ornamental
trimming in the piece
 Services - Small restaurants along with transport services like railways and
airways, Standalone ACs non-ACs Restaurants and those which serve
liquor,
Takeaway Food, Restaurants in hotels with a room tariff less than INR
7,500 (no input credit for these restaurants), will come under this category.
Special flights for pilgrims (Economy Class) come under 5%.

31
 12% TAX RATE

GST Tax Slab of 12%

 Goods - Items coming are the tax slab of 12% include frozen meat products,
butter, cheese, ghee, pickles, sausage, fruit juices, namkeen, tooth powder,
medicine, umbrella, instant food mix, cell phones, sewing machine, man-
made yarn, -Handbags including pouches and purses; jewellery box,
Wooden frames for painting, photographs, mirrors etc, Ornamental framed
mirrors, Brass Kerosene Pressure Stove, Art ware of iron, etc.
 Services - Business class air tickets will attract a tax of 12% under GST.
The slab also includes movie tickets priced under INR 100

 18% TAX RATE

GST Tax Slab 18%

 Goods - As mentioned above, most of the items are part of this tax slab.
Some of the items are flavoured refined sugar, cornflakes, pasta, pastries
and cakes, detergents, washing and cleaning preparations, safety glass,
mirror, glassware, sheets, pumps, compressors, fans, light fitting, chocolate,
preserved vegetables, tractors, ice cream, sauces, soups, mineral water,
deodorants, suitcase, brief case, vanity case, oil powder, chewing gum, hair
shampoo, preparation for facial make-up, shaving and after-shave items,
washing powder, Refrigerators, Water Heaters, Washing Machines,
Televisions (up to 68 cm), Vacuum Cleaners, Paints, Hair Shavers, Hair
Curlers, Hair Dryers, Scent Sprays, Lithium-ion batteries, detergent, stones
used in flooring, marble & granite, sanitaryware, leather clothing, wrist
watches, cookers, stoves, cutlery, telescope, goggles, binoculars, oil
powder, cocoa butter, fat, artificial fruits, artificial flowers, follage, physical
exercise equipment, musical instruments and their parts, stationery items
like clips,
some diesel engine parts, some parts of pumps, electrical boards, panels,

32
 wires, razor and razor blades, furniture, mattress, cartridges, multi-
functional printers, door, windows, aluminium frames, monitors and

 television screens, tyres, power banks for lithium-ion batteries, video

games, carriage accessories for disabled, etc

 Services - Restaurants located inside hotels with tariffs of IN 7,500 and

above, outdoor catering (input tax credit to be available), movie tickets
priced above INR 100, actual bill of hotel stay below IN 7,500, IT and
Telecom services and financial services along with branded garments
will be part of this tax slab.

 28% TAX RATE

GST Tax Slab of 28%

 Goods - Over 200 goods will be taxes at a rate of 28%. The goods
which will be
part of this category under GST are sunscreen, pan masala,
dishwasher, weighing machine, paint, cement, vacuum cleaner. Other
items include automobiles, hair
clippers, motorcycles.
 Services - As mentioned above, five-star hotels, whose actual bill of
hotel stay above INR 7,500, racing, movie tickets and betting on casinos
and racing will come under this category.

33
 GST Tax slab Rates List for Different Services
GST tax slab Services
5%  AC and Non-AC Restaurants
 Takeaway Food
 Restaurants in hotels with a room tariff less than 7,500
(no input credit for these restaurants)
 Transport services like railways and airways
 Transport of passengers by air in economy class
 Supply of tour operators' services
 Selling of space for advertisement in print media
 Small restaurants with turnover of Rs. 50 Lakhs
 Transport of passengers by motor cars and radio taxis
 Tailoring services
 Small housekeeping service providers (No input credit
available)
 Crude and petroleum product transportation
 Job work for footwear and leather goods

12%  Business class air tickets

 Hotels, inns, guest houses, which have a room tariff of
Rs.1,000 and above but less than Rs.7,500 per room per
night
 Metro and monorail construction
 Mining and drilling for crude or natural gas
 Common effluent treatment plants

34
 18%  Restaurants in hotels with tariff at over £7,500
 Actual bill of hotel stays below 7,500
 Outdoor Catering (input tax credit to be available)
 Hotels, inns, guest houses, which have a room tariff of
Rs.2500 and above but less than Rs.5000 per room per
night
 IT services
 Telecom services
 Theme parks, water parks and alike
28%  Race club betting & gambling
 Actual bill of hotel stays above £7,500
 Five-star Hotels
 Entertainment & Cinema
 Hotels, inns, guest houses, which have a room tariff of
Rs.5000 and above per room per nigh

0%  Hotel accommodation with a transaction value of 1,000 or less

per day
 Group insurance schemes for paramilitary forces under the
Home Affairs Ministry

Registration
Under the registration tab, every taxpayer can register in the goods and services tax regime.
Registration tab also has 3 sub -tabs namely:

 New registration - In this tab, a new fresh GST registration is done of taxpayers
with all the details.
 Track application status - In this tab, the taxpayers can check their application
filed for registration.
 Application for filing clarification - In case, any registration was rejected or pending
for any reason, the taxpayer can file clarification and get cleared for its registration.

4. Payments

35
Under the payments tab of GSTN portal, the taxpayers can pay the taxes accrued
under the GST. The payments tab has further 2 sub tabs namely:
 Create Challan - The taxpayers can file the details for taxes under heading CGST,
SGST and IGST along with the sale purchase details and can further generate the
Challan for paying taxes.
 Track payment status – Once the taxpayer had filed the returns and paid the taxes,
he can track the tax payment status under this tab with details including GSTIN
and other details of the business.

5. User services
Under this tab, the user can take general services related to the goods and services tax including
basic queries.
 Contacts - The taxpayer can find contacts of authorized personnel of GST to ask any
query or for any suggestions.
 Search office address - Here one can find the office address of authorized GST
processing for any personal visit regarding the taxes.
 Generate user ID for the advance ruling - In this tab of GST portal, the taxpayer can
generate his user ID for any petition related query in the advance ruling.
 Cause list - Any cause-related query can be solved under this tab.
 Grievance/ Complaint - This tab helps the taxpayers to file any complaint regarding
the working of the portal or GST return filing complaints.
 Locate GST practitioner - One can find authorized GST practitioner under this tab and
can take services for proper GST return filing.
6. Refund
Under this tab, GST portal provides 'Track Application Status' option for taxpayers to know
the status of GST refund by entering ARN number.

7. Constitutional Amendment
A Constitutional Amendment as the name suggests is any change in the Constitution. A
democracy like India derives all its rules and laws from the Constitution and hence any
change in the Constitution is a change in the fundamental fabric of the country. The GST is
the One Hundred and Twenty Second such proposed amendment and hence is named The
Constitution (One Hundred and Twenty-Second Amendment) Bill, 2014. In simple terms
bills other than the

36
Constitution Amendment Bill are just modifications to topics that area already mentioned in
the constitution. The introduction of a few new ITs is a perfect example. All these require are
a simple majority in both the houses and the President's Approval. However, the GST
requires a Constitution Amendment Bill which is a direct change in the Constitution and
requires two- thirds of the votes in both Lok Sabha and Rajya Sabha.

8. The finer points in the implementation of the bill

Several committees were setup to evaluate the feasibility and implementation of the GST.
Some fine point which was considered are:
1. The problem of separating the taxation powers of the state and the centre which resulted in
CGST and SGST.
2. Exemptions from the GST currently includes Petroleum and Liquor for human consumption.
3. GST will be applicable on imports too along with the Basic Customs Duty which has not
been scrapped.
4. The GST will be applicable at the point of sale. In comparison the Value Added Tax is a
destination-based tax while excise duties are taxed at the origin.
5. The workings in the implementation of IGST.

3.3 SPECIFIC INFORMATION

Type of GST forms
 GSTR-2 Return - Due on 11th of Every Month

GSTR 2 or return of inward supplies must be filed before the 15th of each month. When the
supplier files the outward supplies in the GSTR 2 returns, the details in the receipt should
match with the details of the supplies as filed by the supplier. When the supplier provides the
receipt the receiver should verify, validate, modify or even delete, if necessary - the details
furnished by the suppliers. Any modification, deletion or inclusion of inward supplies by the
receiver in his inward return i.e. FORM GSTR-2 will be communicated to the Outward
supplier which will be visible to them as GSTR 1A.

 GSTR-3B Return - Due on 20th of Every Month

GSTR 3 or monthly GST return is due on the 20th of every month. The GST Portal generates
the Part A of GSTR 3 automatically based on information furnished through Form GSTR-1,
Form GSTR-2 and based on other liabilities of preceding tax periods. The taxpayer can

37
discharge his liability towards tax, interest, penalty, fees or any other amount payable under
the Act or the provisions of this Chapter by debiting the electronic cash ledger or electronic
credit ledger and include the details in Part B of the return in FORM GSTR-3.

 GSTR-4 Return - Quarterly Return for Composition Suppliers

Due on 30th

GSTR 4 or GST quarterly return for composition supplier is due 30 April from the end of the
quarter. Hence, GSTR 4 return will be due on 30th April, 30th July, 30th October and 30th
January. Based on details contained in FORM GSTR-4A, and where required, after adding,
correcting or deleting the details, the taxpayer can file the quarterly return in FORM GSTR-4.

 GSTR-5 Return - Monthly Return for Non-Resident Taxable Persons

GSTR 5 return must be filed by persons registered under GST as a non-resident taxable
person before the 20th and within 7 days from last day of registration. In GSTR-5, the
taxpayer must file information and details of outward supplies and inward supplies.

 GSTR-6 Return - Monthly Return for Input Service Distributors

Taxpayers registered as an Input Service Distributors must file GSTR-6 returns on or before
the 13th of every month. Based on FORM GSTR-6A, the taxpayer can file the return after
adding, correcting or deleting the details, furnish a return, containing the details of tax
invoices on which credit has been received and those issued.

 GSTR-7 Return - Monthly Return for Tax Deductors

All the taxpayers registered under GST for TDS must file GSTR-7 returns. GSTR-7 return is
due on or before the 10th of every month. The GST Council shall publish all the details
furnished in Form GSTR-8, as available in Part C of Form 2A and Form 44 to other
taxpayers.

 GSTR-8 Return - Monthly Return for E-Commerce Operator

GSTR-8 return must be filed by E-Commerce Operator on or before the 10th of every month.
E-Commerce operators must provide details of outward supplies of goods or services or both
made through it, including the supplies returned through it and the amount collected by it.

38
The

39
GST Council shall provide all the details furnished by ecommerce operators to each of the
suppliers in Part C of FORM GSTR-2A.

 GSTR-9 Return - Annual GST Return

GSTR-9 return or annual GST return must be filed by taxpayers on or before the 31st of
December. Non-resident taxable persons, Casual taxable persons, TDS deductors and TCS
collectors registered under GST Composition scheme can avoid filing GSTR-9return if the
annual turnover exceeds Rs.2 crore. However, under these circumstances, the taxpayer shall
audit the returns by a Chartered Accountant or Cost Accountant.

 GSTR-10 Return - Final GST Return

The taxpayer shall file the GSTR 10 or final GST return within 3 months from the date of
cancellation of GST registration.

 GSTR-11 Return - GST Return for UIN Holders

Form GSTR-11 or GST return for UIN holders must be filed by persons having UIN under
GST to claim a refund of taxes paid on his inward supplies.

31
0
3.3.1. The GST replaces numerous different indirect taxes such as:
1. Central Excise Duty
2. Service Tax
3. Countervailing Duty
4. Special Countervailing Duty
5. Value Added Tax (VAT)
6. Central Sales Tax (CST)
7. Octroi
8. Entertainment Tax
9. Entry Tax
10. Purchase Tax
11. Luxury Tax
12. Advertisement taxes
13. Taxes applicable on lotteries.

40
CHAPTER 4: RESEARCH DESIGN AND METHODOLOGY

41
 4.1INTRODUCTION:

 This chapter furnishes a precise of the research methodology used in the research of
the effect of Goods and Services Tax (GST) to the construction industry.
 Research methodology is the process used to collect the information and data for the
purpose of making business decisions. The methodology may include publication
research, interviews, surveys, and other research techniques and cloud include both
present and historical information. The research is been defined as "A careful
investigation or enquiry especially through search for facts in new rules their process
of knowledge."
 It is important for the researcher to know not only the research method but also the
methodology. The Research Methodology adopted by the Researcher is descriptive.
Descriptive research is the one is which in-depth knowledge is been provided.
 The main important thing in conducting any research is data collection. The success
of the project largely depends upon how much accurately you have collected the data.
The data collected by the researcher should be reliable and accurate.
 The main important thing in conducting any research is data collection. The success
of the project largely depends upon how much accurately you have collected the data.
The data collected by the researcher should be reliable and accurate.
 The present study is based on secondary data. The analysis is based on case study as
information has been collected from particular owners. The study is based on
secondary data that has been collected from annual reports of the respective
organization, magazines, journals, documents and other published information.
 The study covers the period of 3 years i.e. from year 2022-23 to year 2023-24

42
 4.2. RESEARCH DESIGN:

A plan outlining how information is to be gathered for an assessment of evaluation that includes
identifying the data gathering method, the instrument to be used created, how the instruments
will be administered, and how the information will be organized and analysed. The different
types of research design are:

1. Exploratory research:

Investigation into a problem or situation which provides insights to the researcher. The
research is means to provide details where a small amount of information exists. It may use a
variety of methods such as trade studies, interviews, group discussion, experiments or other
tactics for the purpose of gaining information.

2. Descriptive research:
It is use for profiling, defining estimating, predicting examine associative relationship.

 In this thesis, a study of GST and their Implementation of GST with reference and
view point of customers' preferences has been conducted.
 An attempt is made to give an overview of customers opinions, suggestions and also
owners opinions to understand GST practices in India. The goods and services tax
(GST) is aimed at creating a single, unified market that will benefit both corporate
and the economy.
 Under the GST scheme, no distinction is made between goods and services for
levying of tax. In other words, goods and services attract the same rate of tax.
 GST is a multi-tier tax where ultimate burden of tax fall on the consumer of goods/
services.

Appropriate and suitable analysis is also made to justify this topic; beliefs of customers, views
regarding the implementation of new tax through questionnaire and influence of Age-group
on customers preferences and satisfaction from therein.

4.3. sampling Design:

 Sampling can be explained as a specific principle used to select members population
to be included in the study. It has been rightly noted that "because many populations
of interest are too large to work with directly, techniques of statistical sampling
have been devised to obtain samples taken from larger populations."

43
  In other words, due to the large size of target population, researchers have no
choice but to study a number of cases of elements within the population to represent
the population and to reach conclusions about the population.

4.3.1. Population:
Each individual who belongs to financial sector of India.

4.3.2. Sampling Frame:

Here sampling size chosen in between Different accounting industry
1. Bajaj Finser PVT. LTD.
2. [Link]. LTD.
3. PUDHARI CLOTH STORE
4. KRUSHNAKANT BHANDARIYA
5. Chidambara Vilas

4.3.3. Sampling Frame:

The sampling frame here is of 2 years which is select as per case. The data here is taken of Two
year as per requirement of cases i.e. 2023,2024 (Different for different cases.

4.4 DATA COLLECTION:

4.4.1. Types of data collection:

There are two types of collecting data:

 Primary data collection:

The primary data is that data which is collected fresh or the first time. This data was the first-
hand data which were not collected by anyone in past. It was original in data and time taken
in this method was more. Primary data can be collected through personal interview,
questionnaire, observation, Etc.

 Secondary data collection method:

The secondary data are those data which were already collected and stored by someone in past
Secondary data can be easily collected from records, journal, annual reports of the

44
company. Secondary data are not fresh. The time taken for collecting data in this method is
very less.

4.4.2. Sources of Data Collection:

The study is based on primary data that has been collected from particular organisation, tax
payer along with magazines, journals, documents and other published information as well as
through internet. The study is undertaken on the basis of all details about GST filing process
for different industry, information related to their forms which have to filled under GST Act.

4.4.3. Limitation of study:

To carry out the research study the following limitations were faced

(a) Availability of primary data from of the companies were difficult.

(b) Management may not like to share their details on the topic

(c) Changes in GST rules many times which may affect whole process of GST

(d) Only Final amount of sale purchase available, it may affect to calculate perfect

value of GST.

45
CHAPTER 5: DATA ANALYSIS AND INTERPRETATION

46
 Impact of Goods and Service Tax Retail and wholesale industry
5.1. Introduction:
5.1.1. Retail and wholesale industry and GST:
 GST is an attempt to unify the nation, an effort to create one single national market.
For Retail industry it is a welcome step as the passing of the bill means a seamless
integration of goods and service transaction across the states.
 GST is a comprehensive tax levied on manufacture, sale and consumption of goods
and services at a national level. Under GST there will be no difference between goods
and services. GST tries to eliminate indirect taxes and mitigate cascading or double
taxation issues and leads to a common national market, with elimination of state
boundaries.
 GST is one of the biggest tax reforms since independence. GST will subsume almost
all the indirect taxes levied by state and central government and will make a
significant impact across industries.

5.1.2. GST Rules for Wholesalers & Retailers

 In the current indirect tax regime, retailers and wholesalers could evade taxes as there
is no mechanism by which actual transactions can be tracked. Hence, most
transactions are done in black, where there is no invoice that is issued to the buyer,
and in their books no entry is posted for such sales.
 With the new GST rules on the wholesale and retail industry, every invoice with
taxable supply has to be uploaded on the GSTN portal and needs to be accepted by the
buyer, retailers and wholesalers, thereby reducing tax evasion
Case 1. Bajaj Finser PVT. LTD.

Detail about accounting department of Bajai Finser PVT. LTD.

"Manufacturers and wholesalers can calculate the GST applicable on goods and services
along with the final or the gross price. Below is an illustration comparing the GST liability
before and after GST being levied. This shows how the GST liability, and thus the end price
borne by the consumer, has reduced.

47
After GST:
A. On the basis on composition scheme:

 GST Composition Scheme is an option available to a registered taxpayer who needs

to inform the tax authorities of his intention to be registered under the scheme. In case
the registered taxpayer fails to comply with the same he would be treated a normal
tax payer and administered accordingly.
 As per composition scheme GST will calculated on SALE amount i.e. 1% of sale
amount. This sector can pay tax in every 3 months and it will be filed before on
the 19th day of the month succeeding the quarter. If retailer fail to pay tax before
date, then he has to pay penalty charges as per the government rules.

Below information is about Bajaj Finser GST calculation of the 2023 march to 2024
June.

Particular Rate (%) Sale Amount Taxable Sale Tax-free sale

Amount Amount
Cost of the - 2,78,438 1,68,423 110015
product

GST 1% - 1684.23 -
Calculation

Total - 278438 170107.23 110015

Here,
Sale amount of Bajaj Finser [Link] 168,423 (taxable sale amount). As per the rule of
GST calculation they have to pay 1%of the amount 168,423.

Calculation of GST on taxable sale amount: -

168423 ×1

100

48
 =1684.23

Previous GST:
According to Bajaj Finser' s Previous data they had to pay tax approximately 20% more.
So, GST implementation is good as they save some charges.

 Form filing for retailer and wholesaler under composite scheme:

CBIC introduces form CMP 08 for the composite dealers in India. Form CMP 08 (Replacing
form GSTR 4) is a quarterly return form and will be applicable from FY2023-2024 onwards.
Also, it has to be filed by every taxpayer who has opted-in for the Composition Scheme
under GST.

Basic rules:
 Form CMP 08 is a quarterly return form to be filed on the 18t day of the month
succeeding the quarter.
 Composite dealers will also be required to file the revised format of form GSTR 4 as
their Annual Returns.
 A taxpayer can file a 'NIL' return if his/her total tax liability is zero for a given quarter.
 Failure to file CMP 08 is subject to a penalty of Rs. 200/day (starting from the actual due
date to the actual return filing date of the taxpayer)

B. On the basis on Regular scheme:

Once Threshold limit of Rs 20 lakhs in Service turnover or 40L in Products turnover crosses
the GST registration is required. A Registered Person, whose aggregate turnover in the
preceding financial year did not exceed Seventy-Five (7SL) Lakh Rupees for specified states
(see exception below) can choose this scheme. The taxpayers related to Service industry other
than restaurant sector can also choose this scheme.
 The taxpayers registered under regular scheme must file returns monthly. Currently
GSTR 3B and GSTR 1 are required to be filed, soon we are expected to file RET-1,
PMT-8 from Apr 2024 in a staggered manner.
 Regular taxpayers can avail input tax credit of GST Paid on purchase of goods or
services or both. Regular Registration: In this all taxpayers need collect tax from the
buyer of good and services and then pay to government after adjusting the amount
paid as GST on the input value of goods and service.
 GST to be paid at the time of purchase and take from the client at the time of sale.
 Every regular GST registration holder need to pay tax every following month in
which he sale his services or goods and also need to file return every month.
 In regular registration the business have power to sale the product outside the state
in which he is registered. And also, no restriction on the purchase from other state.

49
 Case 2. [Link]. LTD

 RUGVEDA PVT. LTD. use Regular scheme for his Business. [Link].
LTD. is wholesale shop of Dry fruit. And here for data interpretation we take data of
the year 2023-24 of their sale and purchase Detail. In the value of purchase and sale
amount they paid GST which on different slabs 5%, 18%, 12%.
 In any business GST paid from purchases and GST collected from sales amount. And
their difference is amount of GST which owner has to pay to [Link] the form
CGST, SGST and IGST with different slabs 5%,18%,12%.

After GST: -

PURCHASE GOODS: (detail of 1 Jan 2024 to 31 march 2024)

DATE % GOODS CGST SGST IGST TOTAL

31/03/2024
5% 10000 500 500 1000

12% 80000 9600 9600 19200

18% 20000 3600 3600 7200

TOTAL 110000 13700 13700 27400

SALE OF GOODS: -(Detail of 1 Jan 2024 to 31 march 2024)

DATE % GOODS CGST SGST IGST TOTAL

31/03/2024
5% 20000 1000 1000 2000

50
 12% 95000 11400 11400 22800

18% 35000 6300 6300 - 12600

TOTAL 150000 18700 18700 - 37400

Interpretation:
Above Data is collected from financial record of ABC [Link].
As per the information:
Total of purchase = 1,10,000
GST paid from Purchase = 27,400
Total of sales = 1,50,000
GST collected from sales = 37,400
Formula of GST calculation: GST amount = GST collected - GST paid

GST Amount= 37,400-27,400

= 10,000
Amount of GST will be divided in two sectors i.e. in CGST and SGST. CGST stand for
central Government tax. GST will divide in 50% in both Government.

GST Amount CGST SGST

10000 5000 5000

As per calculation detail ABC PVT. LTD. has to pay CGST Rs. 5000/- and SGST
Rs. 5000/-

Before GST:
As per owner of Sahara ltd., There are positive and also negative impact of GST they Face.
Because of multiple tax slab of GST tax charges increase for some heavy material. Positive

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impact is intermediary cash may save because of GST. According to previous year information
they pay 16980 Tax to government of India for three months.

 Form filing for retailer and wholesaler under Regular scheme:

Currently, there are two forms which are to be filed by the regular taxpayer i.e. GSTR-1
AND GST-3B in which GSTR-1 account for outward supplies and GSTR-3B is for
summarized details of outward supplies and inward supplies plus the payment of an amount
of tax data to be the file on or before 20th of succeeding month.

Case 3. PUDHARI CLOTH STORE

After GST:
Organisation detail:
Name: PUDHARI CLOTH STORE
Owner Name: Suresh Wagaskar
Address: Navi Peth, near to panchayat samiti road, shrigonda, A. Nagar.
Case study on detail GST Calculation: year 2023-24.

Summary:
PUDHARI CLOTH STORE is wholesaler of cloths and raw material. He supplies his
material to different vender in all over country. They face many changes in their account
because GST implementation. This case study covers all positive and negative changes they
face.

Purchase Details: -
DATE % GOODS CGST SGST IGST TOTAL

31/03/2024 5% 2900 725 725 - 30450

12% 105000 6300 6300 - 117600

18% 176000 31680 31680 - 239360

28% 178650 50022 50022 - 278694

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 TOTAL 488650 88727 88727 - 666104

Sales Details: -

DATE % GOODS CGST SGST IGST TOTAL

31/03/2024 5% 44600 2230 2230 - 49060

12% 155200 18624 18624 - 192448

18% 195000 35100 35100 - 265200

28% 214500 60060 60060 - 334620

TOTAL 609300 116014 116014 - 841328

Interpretation: -
Purchase: -

Purchase Total:666,104 Goods Purchase=488650

Total GST=CGST+SGST+IGST
=177454

Goods Sales=609300
Sales Total: 841328 Total GST=CGST+SGST+IGST
=232028

GST value= GST Collected - GST Paid

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 =232,028 - 177,454
=54,574
So as a result, PUDHARI CLOTH STORE have to pay GST for three months of
2023- 24 is
54,574.

Previous GST:
Before GST in India there are lots of charges which this industry had to pay. Inter mediary
charges of tax most affect to this clothing industry. Where there was a chance of pay double
tax for same good which affect to tax payer. According to owner of Pudhari Cloth Store, they
had to pay more Tax before gst. According to their record from 1st Jan to 31 st April 2023
they paid total tax INR.91500.
As a result, GST help to avoid Double tax also all intermediary tax with the help of that this
industry boom after GST implementation in India.
B. Impact of Goods and Service Tax Automobile sector
 Before GST implementation and unification of taxes, we had a series of
indirect taxes in India, wherein every state had their own indirect tax
structure. Now, after GST implementation, all these taxes have been
subsumed to one tax.
 Impact of GST on automobile sector particularly is considered as a positive
thing as manufacturers of automobiles will have to pay reduced taxes and
ultimately customers will also be benefited. Before GST, various taxes such
as sales tax, road tax, sector tax, VAT, motor vehicle tax, registration duty,
etc. were imposed. All of these have been subsumed to GST on automobile
services.
 Earlier this month, a parliamentary panel suggested lower GST rate for the
automobile segment at least till the revival of the sector, It also proposed
uniform road tax across all states amidst the backdrop of negative growth in
the sector production since July 2023.
 CASE 4. KRUSHNAKANT BHANDARIYA

KrushnaKant bhandariya who is owner of manufacturing company. His monthly turnover is

90.5lakhs. And he is planning to purchases luxury car for his personal use. So, he try to
calculate GST on his car as per the new tax regime. In his study he determines some
54
estimation or different charge table which are below:

55
Before GST:

Table 1
Car Type Excise VAT Luxury Infra Tax in Total
categories of Duty Tax Tax Select States tax
Engine
Octroi Green
tax

Small petrol 12.5% 5- 1% 4% NA ~26-

cars 14.5% 34%
Disel 12.5% 5- 2.5% 4% ~27.5-
14.5% 1%on 1%on 35.5%
cars vehicles
Mid-sized Both 24% 5- costing 4% 4% with ~40.5-
cars 14.5% more engine 48.5%
than capacity
Luxury Both 27% 5- Rs.10 4% 4% of more ~44.5-
Cars 14.5% Lakh than 51.5%
2000cc

SUVs Both 30% 5- 4% 4% ~47.5-

14.5% 54.5%

Now, let’s have a look at the increase or decrease in the percentage of proposed tax on the
prices of Cars.

Car Type Existing GST

categories of tax
Engine percentage
Proposed Proposed Effective
percentage Cess Tax

Small cars Petrol ~26-34% 28% 1% 29%

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 Diesel ~27.5-35.5% 28% 3% 31%

Mid-sized Both ~40.5-48.5% 28% 15% 43%

Cars

Luxury Both ~44.5-51.5% 28% 15% 43%

Cars

SUVs Both ~47.5-54.5% 28% 15% 43%

The tables above give us a rough idea of the increase or decrease in the prices of the cars
falling under various categories. However, in states where octroi and green cess are charged,
the prices could go higher than the estimated ones. Also, the percentage of the VAT in
various states varies. Above all, the insurance and registration charges too need to be added in
the final on- road price of the car.

Firstly,
BMW 320d,
Ex-showroom Price - Rs.42,70,000 (with 44.50% tax)
Ex-factory Price - Rs.29,55,017.
But according to new tax rates,
Showroom Price - Rs.42,25,674
Factory Price- Rs. 29,55,017
GST Price- Rs.12,70,657 (43% tax rate )

GST calculation:
Tax Slab :- 43%
Price= 29,55,017 + 29,55,017 × 43%
=42,25,674.

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So, here a decrease of Rs. 44,325 in the price of taxes. Here he have to pay less tax
than previous.

58
C. Calculation of goods and service on tax Hotel Industry
In India there lots of changes happen in financial sector Because of GST, it affects whole
economy of India. Hotel Industry also Affect a lot because of GST implementation.

5. CASE STUDY ON CHIDAMBARA VILAS

A case study conducted with "Chidambara Vilas" a luxury Heritage resort from Ahmednagar
hotel to find the impact of GST on Heteitage resort. From the findings it is found out that the
heritage resort enjoys 12% to 18% GST which is less than the before tax rates which includes
VAT, Service Tax and service charges

Baises of location:

Hotel Name: Chidambara Vilas

Address: MK road, near Agadgav Bk, A. Nagar.

Pin code: 413703

Hotel Type: Heritage Hotel

After GST:

Calculation of GST Return for the year 2023-24

interpretation:

GST Rates As per GST rules:

1. Supply of Food/drinks in restaurant not having facility of air-conditioning or

central heating at any time during the year and not having license to serve liquor
=12% with full ITC

= Amount of Food product paid (Year 23-24)

= 164000×12/100

=GST Have to paid: 19680 (NO. A)

= Amount of food product collected (Year 23-24)

59
 =12% with full ITC

=138000×12/100

=GST collected at time on raw material of food product: 16560(NO.B)

GST on service GST value

GST have to paid -GST collected

=19680-16560(value from A and B)
=3120(NO.C)

Renting of hotels, inns, guest houses, clubs, campsites or other commercial places

meant for residential or lodging purposes having room tariff Rs.1000 and above but

less than Rs.2500 per room per day

=12% with full ITC

= GST Amount of rent paid (Year 23-24)

=238000×12/100

=GST Have to paid: 28560 (NO. D)

= GST Amount from raw material of accommodation collected (Year 23-24)

=12% with full ITC

=195000×12/100

=GST collected at time of raw material of food product: 23400(NO. E)

GST on service GST value

GST have to paid paid -GST collected

=28560-23400(value from D and E)
=5160(No. F)

51
0
3. Bundled service in a premises including hotel, convention center, club, pandal,
shamiana or any other place, specially arranged for organizing a function
together with renting of such premises
= 18% with full ITC

= GST Amount to paid

= 265000×18/100

= 47700(NO. I)

Final Addition of GST (From C, F & I): =3120+5160+47700

=55980

For year ended 2023-24 GST calculation amount (as per amount provided by
owner): 55980

Before GST:
The hospitality industry, like every other sector in the Indian economy, pays multiple taxes
(VAT, luxury tax, and service tax) in the existing indirect tax regime. A hotel where the room
tariff exceeds Rs 1,000 is liable for service tax at 15 percent. An abatement of 40% is allowed
on the tariff value bringing the effective rate of service tax down to 9%. The Value Added
Tax (ranging between 12 percent to 14.5 percent) and luxury tax will still apply. However,
for restaurants there is 60% abatement which means that the service tax is charged at an
effective rate of 6% on the F&B bills, apart from VAT (12 percent to 14.5%). Bills for
bundled services like social functions (seminars, marriage etc.), are taxed with an abatement
of 30%. The cascading effect of the existing indirect tax regime where the end consumer pays
a tax on tax, increases the end cost. According to the owner of Chidambara Vilas there are
some less charges they have to pay after GST. All product divide in different slap because of
that some product have increase their tax rate and some decrease their tax rates. But
ultimately it give positive impact on their business. In the year 1 st jan 2022 to 31st march 2022
they paid Ru.89450 tax which is more than GST for three months.

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1
CHAPTER 6. FINDING AND SUGGESTIONS

60
 6.1 Finding
 GST has reduced the customs duty on exporting goods. The cost of production in the
local markets has also decreased due to GST. The introduction of GST has helped
merge the taxes of the state and central governments. This has helped remove the
cascading effect of multiple tax.
 In just two years, GST has consolidated and is delivering notable outcomes for
smoother business, lower logistics costs, and easier payment of taxes in digital mode.
 The introduction of the Goods and Services Tax is a very noteworthy step in the field
of indirect tax reforms in India. By merging a large number of Central and State taxes
into a single tax, GST is expected to significantly ease double taxation and make
taxation overall easy for the industries.

Summary of case study: -

Sr. No Name of case Charges before Charges after

GST GST
1 Bajaj Finser Pvt, 2021.07 1681.23
Ltd.
2 Rugveda Pvt, Ltd. 16980 10000

3 Pudhari cloth Store 91500 54574

4 Case study 44.50% on price 43% on price

krushnakant
bhandariya
5 Case study on 89450 55980
Chidambara Vilas

 The objective of incorporating the GST is to remove the current imperfections

prevalent in indirect taxes and improve tax compliance; this is mitigating the effects of
costly taxes cascading onto the end consumers. Its implementation is also
expected to trigger growth in business and economy in India.

61
  Under GST, small businesses (with a turnover of Rs 20 to 75 lakh) can benefit as it
gives an option to lower taxes by utilizing the Composition scheme. This move has
brought down the tax and compliance burden on many small businesses.

6.2. Conclusion:
 India has many taxes in place like excise, sales tax, service tax, entertainment tax,
VAT etc. These taxes are divided at Central as well as state level. These bundle
amounts of taxes are difficult to manage and sometimes causes inconvenience to
businesses and customers. GST aims to solve it with single indirect taxation system.
 GST has been the buzzword in the country for the last few days and finally the bill
has passed, leading to the realization of "One country, one tax", at least on papers for
now.
 Goods and Services Tax Network (GSTN) is a nonprofit organization formed to
create a platform for all the concerned parties i.e. stakeholders, government, taxpayers
to collaborate on a single portal. The portal will be accessible to the central
government which will track down every transaction on its end while the taxpayers
will be having a vast service to return file their taxes and maintain the details. The IT
network will be developed by private firms which are being in tie up with the central
government and will be having stakes accordingly.
 The objective of incorporating the GST is to remove the current imperfections
prevalent in indirect taxes and improve tax compliance; this is mitigating the effects
of costly taxes cascading onto the end consumers. Its implementation is also expected
to trigger growth in business and economy in India.

6.3. Suggestion:

 Experts are also making positive speculations regarding GST. So, everyone should
take it positively and it will help to boom the Indian economy.
 Proper implementation of GST is done by government so its duty of common people
to pay some part of their income to our government on time.
 GST forms are well prepared and all information regarding return filling are provided
from government. So, it is duty of taxpayer to read all the think properly then pay the
return.
 GST have different slab of taxes. They are change by product to product so it is
difficult to identify to taxpayer. Taxpayer have to give some part his attention tohis.
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 6.4. Learning From the Project:

This project helps to know how GST implemented and it affected to different sector. Also
understand all the tax changes, tax reduction, their positive and negative impact of on
common people and how it should be process by taxpayer.

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APPENDIX I

64
 BIBLIOGRAPHY

 REFEREED JOURNALS:
BOOKS

 Dr. Harshal Anil Salunkhe, "A STUDY OF GOODS & SERVICES TAX (GST) &
ITS IMPACT ON INDIA: REVIEW ", International Journal of Creative Research
Thoughts.
 Amit Ilager "A Review on GST Execution and It's Effects" Published in International
Journal of Trend in Scientific Research and Development.
 Economic Consequences of GST in India, written by D. Amutha, St. Mary's College
(Autonomous) - Economics Department, Date Written: January 8, 2018.
 A Review Paper on an Impact of Goods and Service Tax (GST) on Indian Economy.
 GST Ready Reckoner by CA Ashok Batra
Edition: 9th Highlights: Amendments by the Finance Bill, 2024, GST Compliance
Calendar, Judicial Pronouncements, and more1.
 How to Handle GST Audit with Real Life Case Studies by CA Arun Chhajer, Md
Samar, and Nitin Sharma
Publishing Year: 2023, Highlights: GST Audit procedures, case studies, and
compliance strategies1.
 How to Handle GST Notices, Scrutiny, Assessment, and Adjudication by Rakesh
Garg and Sandeep Garg
Publishing Year: 2023, Highlights: Legal discussions, practical procedures, and
handling notices1.
 Reverse Charge Mechanism under GST by CA Satbir Singh
Edition: 2nd, 2023, Highlights: Registration under RCM, past to present analysis1.

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 Websites :

 [Link]
 [Link]
 [Link]
 [Link]
 https//[Link]/
 [Link]

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