GST - Final Project

GST – The New Era of taxation
system
(A Project Report submitted to the Rajdhani College, Bhubaneswar
In partial fulfillment of the requirement for the degree of

BACHELOR IN COMMERCE under Utkal University, Bhubaneswar)
Submitted By
RAJKUMAR SAIKISHAN SAHOO
Roll No.: BC-19-121

Exam roll no.: 1903010190080069
Session:- 2019-2022
Under the guidance of
Dr. SAMIRA PATRA
Assistant professor of Commerce,
Rajdhani College , Bhubaneswar
DEPARTMENT OF COMMERCE,
RAJDHANI COLLEGE , BHUBANESWAR, ODISHA
2022
DECLARATION
I do hereby declare that this project report entitled “GST – The new era of
Taxation System ” is a record of a bonafide research work carried out by me under
the guidance & supervision of Dr. Samira Patra, Assistant Professor, Department
of Commerce, Rajdhani college, Bhubaneswar.
I further declare that this project or part thereof has not been submitted to any
other university or institution for the award of any degree, diploma or other similar
title.
Date: - Rajkumar Saikishan Sahoo
Place:- Bhubaneswar Exam roll no.- 1903010190080069
Rajdhani college, Bhubaneswar

CERTIFICATE
This is to certify that this project entitled “ GST – The new era of
Taxation system ” submitted by Rajkumar Saikishan Sahoo, Roll No.
1903010190080069 is a record of bonafide and independent research work carried
out by him under my supervision. This project, so far as my knowledge has not been
submitted to any university or institutions for the award of any degree, diploma,
associateship and fellowship. I recommend this project for submission of the degree
of bachelor in Commerce.
Date:
Place: Bhubaneswar Dr. Samira Patra
( Project Supervisor)
ACKNOWLEDGEMENT
From the beginning till the end of this research journey I have come across
a number of people who influenced me in various ways in completing the research
work and they deserved special mention. It is a pleasure to convey my gratitude to
them in my humble acknowledgement.
First and foremost, I would like to thank the greatest teacher of all, the
almighty Lord Jagannath for giving me the strength to perform the research work.
My vocabulary fails to provide me with suitable words to acknowledge the

generous guidance of my Supervisor, Dr. Samira Patra. I will remain indebted all my
life to Dr. Samira Patra for his supervision, advice and guidance from the early stage
of this research as well as for giving me extraordinary experiences and new
knowledge throughout the research work. Above all and the most needed, he
provided me unflinching encouragement and support in various ways. I could not
have imagined for having a better advisor, philosopher and mentor for my research
work. His understanding, encouraging and personal guidance have provided a good
basis for the present project work.
I am also thankful to other faculty members of Department of Commerce,

Rajdhani college, Bhubaneswar for their constant encouragement and support.
Last but not the least; I owe my loving thanks to my parents and my friends
to whom I dedicate this project.
Rajkumar Saikishan Sahoo
Research Scholar
PREFACE
This project report has been prepared in partial fulfillment of the requirement for the subject: The
Research Report on the topic" GST – The new era of Taxation System " .
Goods and Service Tax GST is all set to be a game changer for the Indian economy. The tax is
expected to reduce the concept of 'tax on tax, increase the gross domestic product of the economy
and reduce prices. In India, there are different indirect taxes applied on goods and services by
central and state government. GST is intended to include all these taxes into one tax with seamless
ITC and charged on both goods and services. For the introduction of GST, the Government needs
to get the Constitution Amendment Bill passed so that the proposed objective of subsuming all
taxes and allowing states to tax subjects in Union list and vice versa is achieved. Without these
powers, it is not legally possible to move towards GST. Conceptually GST is expected to have
numerous benefits like reduction in compliances in the long run since multiple taxes will be
replaced with one tax. It is expected to bring down prices and hence the inflation since it will
remove the impact of tax on tax and enable seamless credit. It is expected to generate revenue for
the country as the tax base will increase the GST rate will be somewhere around 27% with both
goods and services covered. It is also expected. o make exports from India competitive and India a
preferred destination for foreign investment since GST is a globally accepted tax. Unless the issues
relating to GST has been overcome, the GST would become a bare wall without any scripts to
describe à future.
TABLE OF CONTENT
SL no. PARTICULARS PAGE NO.
1 Chapter 1 – Introduction 1-9
2 Chapter 2 – Conceptual Framework 10-28
3 Chapter 3 – Presentation of Data Analysis 29-41
4 Conclusion and Recommendations 42-43
5 Bibliography 44
6 Questionnaires 45-46
CHAPTER – 1
INTRODUCTION
❖ Concept and Introduction of Tax

❖ Back ground
❖ Justification of GST
❖ Objective of the study
❖ Brief review of literature
❖ Limitation of the study
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Department of Commerce , Rajdhani college, Bhubaneswar
INTRODUCTION
1.1. Concept and Introduction of Tax:
Taxation is the inherent power of the state to impose and demand 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
3000 years ago, the 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 become
Indians First Finance Member.
In order 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 replace in 1922. Finally.
The Ministry of Law and Finance The Income Tax was Passed in 1961 and brought came force on
1 April 1962, and this is also known as the Financial Year in Current Era. I e. (01.04.18-31.03.2019)
Taxation System:
Tax system of raising money taxes from people. Finance Government. All governments require
payment of money
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 also hundreds of other
Purposes without taxes to fund its activities, govt could not exist.
So, taxation is the most important source of revenues for modem government typically according
for 90% or more of their income.
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Essentials Characteristics of Tax:
➢ It is an enforced Contribution.
➢ It is generally payable by Money.
➢ It proportionate in character, usually based on ability to pay.
➢ It is levied on person and property with the jurisdiction of the state.
➢ It is levied for public purpose.
➢ It is commonly required to be paid a regular intervals.
Why are Taxes Levied ?
The reason for levy of taxes is that they constitute the basic source of revenue to the government.
Revenue so raised is utilized for meeting the expenses of government like defense, provision of
education, health care, Infrastructure facilities like roads, dams etc.
What are the Reasons of Taxation?
➢ Provide the basic facilities for every citizen of country.

➢ Finance government multiple projects and schemes.
➢ Protection of Life.
➢ Responsibility of citizen to the Nation.
Meaning of Tax:
The word Tax came from Latin word “Taxo, Tax are” which means To asses or estimate.
Tax can be defined in the following ways:
“The compulsory payments made to governments associated with certain activities are called
Taxes”
“A general purpose, compulsory contribution by the people to public treasury to meet the
expenditure of government is called Tax”
A specific amount of money demanded by government from its public levied on their income,
Sales, wealth etc.”
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“Taxes are the price we pay for a civilized society”
Tax in general, is the imposition of financial charge upon an individual or a company by the govt
of India or their respective state or similar other functional equivalents in a state. The computation
and imposition of the varied taxes prevalent in the country are carried on by the Ministry of Finance
Department of Revenue.
Different Types Of Taxes:
Prevalence of various kinds of taxes is found in India. Taxes in India can be either direct or indirect.
However, the types of taxes even depend on whether a particular tax is being levied by the central
or the state government or any other municipalities. Following are some of the major Indian
government are:
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(1) Direct Taxes:
It is names so because it is directly paid to the union government of India. As per a survey, the
Republic of India has witnessed a consistent rise in the collection of such taxes over a period of
past years. The visible growth in these tax collections as well as the rates of taxes reflects a healthy
tax along with better administration of taxation. To name a few of the direct taxes, which are
imposed by the Indian government are:
➢ Banking cash Transaction Tax

➢ Corporate Tax.
➢ Capital Gains Tax.
➢ Double Tax Avoidance treaty.
➢ Fringe Benefit Tax.
➢ Securities Transaction Tax.
➢ Personal Income-tax.
➢ Tax Incentives.
(2) Indirect Taxes:
As opposed to the direct taxes, such a tax in the nation is generally levied on some specified
services or some particular goods. An indirect tax is not levied on any particular organization or an
individual. Almost all the activities, which fall with in the periphery of the indirect taxation, are
included in the range starting from manufacturing goods and delivery of services to those that are
meant for consumption.
Usually, the indirect taxation in the Indian Republic is a complex procedure that involves laws and
regulations, which are interconnected to each other. These taxation regulations even include some
laws that are specific to some of the states of the country. The organizations offer services in all or
most of the related fields, some of which are as follows:
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➢ Anti Dumping Duty
➢ Custom Duty.
➢ Excise Duty.
➢ Sales Tax.
➢ Service Tax.
➢ Value Added Tax. Or VAT
(3) Local Taxes In India:
The most known tax, which is levied by the local municipal jurisdictions on the entry of goods, is
Known as the Entry Tax or the Doctor Tax.
(4) Income Tax:
Income tax in India includes all income except the agricultural income that is levied and collected
by the central government. This particular income is also shared with the states. The income tax
was incorporated in India from the year 1860.
However, after many alteration, finally with the Indian Income-tax Act, 1922, there was a
revolutionary change brought by the All India Income Tax Committee. The significant as after this
the administration of the Income Tax came under the direct control of the central Government.
This act got amended again in the year 1961, and the present Income Tax regime in India is still
following the provisions of the act of 1961.
(5) Consumption Tax:
Consumption Tax is applicable on the consumption of any type of goods or service. This particular
tax is based on consumption and not on income. The consumption Tax can be regarded as a sales
tax, as this tax is also regressive in nature like the other pure sales taxes. However, there are some
remedies by which the consumption tax can be made progressive in nature.
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1.2. Background
Introduction of the Value Added Tax (VAT) At the Central and the state level has been
considered to be a major step -an important step forward in the globe of indirect tax reforms in
India. If the VAT is a major improvement over the preexisting Central excise duty at the national
level and the sales tax system at the state level, then the goods and services tax(GST) will indeed
be an additional important perfection -the next logical step-towards a widespread indirect tax
reforms in the country. Initially, it was conceptualized that there would be a national level goods
and services tax, however, with the release of first discussion paper by the Empowered Committee
of the State Finance Ministers on 10.11.2009, it has been made clear that there would be a “Dual
GST” in India, taxation power-both by the center and the state to levy the taxes on the Goods and
Services. Almost 150 countries have introduced GST in some from. While countries such as
Singapore and New Zealand tax virtually everything at a single rate, Indonesia has five positive
rates, a zero rate and over 30 categories of exemptions. In China, GST applies only to goods and
the provision of repairs, replacement and processing services. Under the GST scheme, no
distinction is made between goods and services for levying tax. In other words, goods and services
attract the some rate of tax. GST is a multi-tier tax where ultimate burden of tax fall on the
consumer of goods/services. It is called as Value Added Tax because at every stage, tax is being
paid on the Value addition. Under the GST scheme, a person who was liable to pay tax on his
output, whether the provision of service or sale of goods, is entitled to get input tax credit (ITC)
on the tax paid on its inputs.
1.1. Justification of GST
The introduction of GST at the Central level will not only include comprehensively more
indirect Central taxes and integrate goods and service taxes for the purpose of set-off relief, but
may also lead to revenue gain for the center through widening of the dealer base by capturing
value addition in the distributive trade and increased compliance. In the GST, both cascading
effects of CENVAT and service tax are removed with set-off, and a constant chain of set-off from
the original producer’s point and service provider's point up to the retailer's level is established
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which reduces the burden of all cascading effects. This is the real meaning of GST, and this is why
GST is not simply VAT plus service tax but an improvement over the previous system of VAT
and disjointed service tax. Moreover, with the introduction of GST, burden of central sales tax
(CST) will also be removed. The GST at the state level is therefore, justified for-
➢ Additional power of levy of taxation of services for the states
➢ System of comprehensive set-off relief
➢ subsuming of several taxes in the GST
➢ Removal of burden of CST.
1.2. Objectives
➢ To understand the meaning of Goods and services Tax (GST)
➢ To obtain a true insight of GST
➢ To analyze the impact of GST over Gross Domestic Product(GDP)
➢ To make a comparative study of GST and other Taxes in India.
1.3. Brief Review of Literature on GST
Before we proceed with the finer nuances of proposed Indian GST, let us first understand the basic
concept of GST. GST is a value added tax levied on manufacture, sale and consumption of goods
and services. GST offers comprehensive and continues chain of tax credits from the producer’s
point/service provider's point up to the retailer’s level/consumer's level thereby texting only the
Value Added at each stage of supply chain. The supplier at each stage is permitted to avail credit
of GST paid on the purchase of goods and/or Services and can set off this credit against GST
payable on the supply of goods and/or Services to be made by him. Thus, only the final consumer
bears the GST charged by last supplier in the supply chain, with set-off benefits at all the previous
stages. Since, only the Value Added at each stage is taxed or cascading of taxes under GST system.
Further, GST does not differentiate between goods and services and thus, the two are taxed at a
single rate.
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1.4. Research Methodology
Our study has based on the basis of secondary data collected from various books, journals,
magazines, reports, newspapers, internet etc. We have also collected data from the source of
“Department of Revenue” and “Ministry of Finance”. after analyzed with the help of simple
statistical tools. We have used lucid language to present the Data in a more comprehensive manner.
Finally some findings have been gathered to establish our objectives
1.5. Limitations of The Study
The study has some limitation on its scope and interpretation of the results. It covers only the
narrow concept of goods and service tax and not the whole, the present study has also the following
limitation:
➢ The first and most shortage of Time, in fact we have not sufficient time for in-depth
analysis, international comparison and other analysis of data. this has indeed restricted
our study to our mission.
➢ There are few common and unavoidable general problems in collecting secondary data,
which are required for our study.
➢ There was a problem of cost involved in earning out the project.
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Chapter - 2
Conceptual Framework
❖ Definition
❖ Types of Goods and Services Tax in India
❖ Applicability and Mechanism of GST
❖ Salient Features of GST Model
❖ GST- Overview, Registration & returns
❖ Opportunities
❖ Benefits of GST Implication
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2.1 Definition
It has been long pending issue to streamline all the different types of indirect taxes and implement
a “single taxation” system. This system is called as goods and services tax (GST). The main
expectation from this system is to abolish all indirect taxes and only GST would be levied. As the
Name suggests, the GST will be levied both on Goods and Services.
GST is a tax that we need to pay on supply of Goods and Services. Any person, who is providing
or supplying goods and services, is liable to charge GST. GST is a consumption based tax/levy. It
is based on the “Destination Principal”.
GST was first introduced during 2007-08 budget session. On 17th December 2014, the current
union cabinet ministry approved the proposal for introduction GST Constitutional Amendment
bill. On 19th December 2014, the bill was presented on GST in Loksabha. The bill will be tabled
and taken up for discussion during the current budget session. The current central government is
very determining to implement GST Constitutional Amendment Bill.
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Meaning Of Goods and Service Tax (GST)
Clauses 366 (12A) of the constitution Bill defines GST as” goods and service tax” means Any tax
on supply of goods, or services or both except taxes on the supply of the liquor for human
consumption. Further the clause 366 (26A) of the Bill defines Services means anything other than
Goods. Thus it can be said that GST is a comprehensive tax levy on manufacture, sale and
Consumption of goods and services at a national level. The proposed tax will be levied on all
Transactions involving supply of goods and services, except those which are kept out of its
Preview.
Purpose of GST:
The Two Important Purposes of GST are followings
➢ Single Umbrella Tax Rate:
GST shall replace a number of indirect taxes being levied by union and state government.
➢ Removing Cascading Effect:
GST is intended to remove Tax on Tax Effect and provides to common national market for Goods
and Services.
Types Of Categories under GST rate
The GST tax is levied based on Revenue Neutral Rate. For the purpose of imposing GST tax .In
India, the goods and services are categorized in to four.
These are four categories of goods and services are follows:
Exempted Categories under GST in India:
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The GST and council and other GST authorities notifies list of exempted goods. Such goods are
not fallen under payment of GST tax. The authorities may modify or amend the list time to time
by adding deleting any item if required by notification to public. Exempted categories: 0
Essential Goods and Services for GST in India:
Essential Category of goods and services are charged very lower GST rate. Essential goods and
services are the goods and services for necessary items under basic importance.
Commonly used Goods and Services: 5%
Standard Goods and services for GST in India:
A major share of GST tax payers falls under this category of Standard Goods and Service. A
Standard rate is charged against the goods and services under this category.
Standard Goods and Services fall under 1” Slab: 12%
Standard Goods and Services fall under 2 Slab: 18%
Special Goods and Services for GST tax Levy:
Under special category of goods and services, GST rates would be high. Precious metals including
luxury items of goods and services fall under special goods and services for GST rate
implementations.
Special category of Goods and Services including Luxury Goods: 28%
2.2 Types Of Goods and Service Tax in India.
1. CGST (Central Goods and Service Tax) :GST to be levied by the center.
2. SGST (State Goods and Service Tax): The GST is to be levied by the states is State GST (SGST).
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3. IGST (Integrated Goods and Service Tax): Integrated GST will be levied by the center and the
states concurrently.
State taxes which will be subsumed in SGST:
➢ VAT/ Sales Tax.

➢ Luxury Tax.
➢ Entertainment Tax (unless it is levied by local bodies)
➢ Taxes on Lottery, betting, and gambling.
Central Taxes which will be subsumed in CGST:
➢ Central Excise Duty.

➢ Additional Excise Duty.
➢ Service Tax.
➢ The Excise duty levied under the medical and toilet preparation Act.
➢ Additional Customs Duty.
➢ Education Cess.
➢ Surcharges.
Taxes that will not be subsumed:
➢ Stamp Duty.
➢ Electricity Duty.
➢ Other Entry taxes and Octori Entertainment Tax (levied by local bodies.)
➢ Basic Customs duty and safeguard duties on import of goods in to India.
➢ Professional Tax.
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2.3 Applicability and Mechanism
Applicability and mechanism of GST
The GST is an indirect tax which means that the tax is passed on till the last stage where in
it is the customer of the goods and services who bears the tax. This is the case even today for
all Indirect taxes but the difference under the GST is that with streamlining of the multiple
taxes the final cost to the customer will come out to be lower on the elimination of double
charging in the system.
Let us understand the above supply chain of GST with an Example:
The current tax structure does not allow a business person to take tax credits. There is a lot of
chances that double taxation takes place at every step of supply chain. This may set to change with
the implementation of GST. Indian Government is opting for Dual system GST. This system will
have two components which will be known as
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❖ Central Goods and Service Tax(CGST)
❖ State Goods and Service Tax (SGST)
The current taxes like Excise duties, service tax, custom duty etc will be merged under CGST.
The taxes like sales tax, entertainment tax, VAT and other state taxes will be included in SGST.
2.4 Features of The GST Model:
Salient Features of the proposed Model are as:

• The GST shall have two components: one levied by the center (referred to as central GST)
and the other levied by the states (referred to as state GST). Rate for central GST and the
state GST would be approved appropriately, reflecting revenue considerations and
acceptability.
• The Central GST and the state GST would be applicable to all transactions of goods and
services made for a consideration except the exempted goods and services.
• The Central GST and state GST are to be paid to the accounts of the Central and the states
individually.
• Since the Central GST and the state GST are to be treated individually, taxes paid against
the Central GST shall be allowed to be taken as input tax credit (ITC) for the Central GST
and could be utilized only against the payment of central GST.
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• Cross utilization of ITC between the Central GST and the state GST would not be permitted
except in the case of inter-state supply of goods and services.
• Ideally, the problem related to credit accumulation on account of refund of GST should be
avoided by both the Central and the states except in the cases such as exports, purchase of
capital goods, input tax at higher rate than output tax etc.
2.5 Overview, Registration & Returns
Present System: GST
❖ INTRA STATE SUPPLY: CGST & SGST

❖ INTER STATE: IGST = CGST + SGST
❖ IMPORT FROM OUTSIDE INDIA: CUSTOM DUTY (CVD-SAD) & IGST
GST BASICS:
❖ GST is principally consumption/destination based tax.

❖ Tax will be payable in the state in which goods and services are consumed.
❖ No declaration
❖ No check posts
❖ SGST will be kept same in all states. However, a price band may be given to states for
SGST rates.
❖ CGST & IGST rates will be same all over India.
❖ IGST may be sum total of SGST & CGST i.e. IGST=SGST+CGST
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VAT PRINCIPLE IN GST:
❖ GST will be on basis of value Added Tax (VAT) concept

❖ VAT to avoid cascading effect of taxes
❖ ITC (set off) of CGST for CGST and IGST but not for SGST
❖ ITC (set off) of SGST and IGSST but not for CGST
❖ ITC (set off) of IGST for IGST, CGST and SGST in that order
❖ Credit on basis of Return like 26AS
RATES IN GST:
❖ SCHEDULE 1 : LIST OF GOODS AT NIL RATE- Meat of bovine animals fresh or

chilled, Natural Honey, Live sheep, goats poultry etc.
❖ SCHEDULE 2 : LIST OF GOODS AT 0.25% RATES- Diamonds, precious metals, Semi
precious stones etc.
❖ SCHEDULE 3 : LIST OF GOODS AT 3% RATES –Silver, Gold, Platinum, Beans, Coin,
Imitation jewellery etc.
❖ SCHEDULE 4 : LIST OF GOODS AT 5% RATE- Vanilla, oats ,Soya beans, Olive oil,
Cane sugar, Cocoa beans, Pizza bread etc.
❖ SCHEDULE 5 : LIST OF GOODS AT 12% RATE- Beverages, contacting milk, live
horses, stream, Cheese, Granite Blocks, Stream, Feeding bottles etc.
❖ SCHEDULE 6 : LIST OF GOODS AT 18% RATE- Kajal pencil sticks, hair oil,
toothpaste, Gum, Tall oil, Activated carbon, photographic plates & films etc.
❖ SCHEDULE 7 : LIST OF GOODS AT 28% RATE- Molasses, Chewing gum, cocoa
butter, pan masala etc.
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TAXABLE EVENT:
Taxable event is supply of goods and services being payable by the supplier at the time of supply
on a forward charge basis.
In certain notified matters, liability of GST will be on recipient of goods and services under a
reverse charge mechanism.
There is TDS & TCS mechanism under specified circumstances.
SUPPLY:
Supply includes all forms of Goods and Services-
❖ Such as sales, transfer, barter, license, exchange, rental, lease or disposal made or agreed
to be made for a consideration by a person in the course of furtherance of business.
❖ Importation of Service where the same is not for a consideration and whether or not it is
in the course of furtherance of business.
❖ Schedule-I to schedule-IV describes what would be supply or supply of goods/Service or
would not be supply.
❖ Sale of under construction properties, temporary transfer of intellectual property rights,
intangible property, works contracts, transfer of right to use any goods and development,
up graduation, customization of software would be supply of Service.
❖ Transactions between principal and agents are deemed to be suppliers.
❖ Supply of goods to job Worker would not be covered.
ELECTRONIC ERA TO COMMERCE:
❖ E-REGISTRATION
❖ E-PAYMENT
❖ E-RETURN
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WHO CAN OPT FOR COMPOSITION SCHEME:
A taxpayer whose turnover is below Rs. 1.5Crore* can opt for composition scheme. In case of
North Eastern states and Himachal Pradesh, the limit is now Rs. 75 lakh.
Turnover of all businesses registered with the same PAN should be taken into consideration to
calculate turnover.
WHAT ARE THE CONDITIONS FOR AVAILING COMPOSITION SCHEME?
❖ No input tax credit can be claimed by a dealer opting for composition scheme.
❖ The taxpayer cannot make any inter-state supply of goods.
❖ The dealer cannot supply GST exempted goods.
❖ Taxpayer has to pay tax at normal rates for transportations under reverse charge system.
❖ If a taxable person has different segments of businesses (such as textile, electronic
accessories, groceries etc.) under the same PAN, they must register all such businesses
under the scheme collectively or opt out of the scheme
❖ The taxpayer has to mention the words “Composition Taxable Person” on every notice or
signboard displayed prominently at their place of business.
❖ The taxpayer has to mention the words “composition taxable person” on every bill of
supply issued by him.
❖ Those supplying goods can provide services of up to Rs. 5 lakh
HOW CAN A TAXPAYER OPT FOR COMPOSITION SCHEME?
To opt for composition scheme a taxpayer has to file GST CMP-02 with the government. This
can be done online by logging into the GST portal.
This intimation should be given at the beginning of every financial year by a dealer wanting to opt
for composition scheme.
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WHAT ARE THE GST RATES FOR A COMPOSITION DEALER?
Following chart explains the rate of tax on turnover applicable for composition dealers:
WHAT ARE THE RETURNS TO BE FILED BY A COMPOSITION DEALER:
A dealer is required to file a quarterly return GSTR-4 by 18th of the month after the end of the
quarter. Also, an annual return GSTR-9A has to be filled by 31st December of next financial
year.
Also, note that a dealer registered under composition scheme is not required to maintain detailed
records.
WHAT ARE THE ADVANTAGES OF COMPOSITION SCHEME?

The following are the advantages of registering under composition scheme:
❖ Lesser compliance (returns, maintaining books of record, issuance of invoices)
❖ Limited tax liability

❖ High liquidity as taxes are at a lower rate.
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WHAT ARE THE DISADVANTAGES OF COMPOSITION SCHEM?:
Let us now see the disadvantages of registering under GST Composition scheme:
❖ A limited territory of business. The dealer is barred from carrying out inter-state
transactions.
❖ No input tax credit available to composition dealers.
❖ The taxpayer will not be eligible to supply exempt goods or goods through an
ecommerce portal.
REGISTRATION:
Advantages of registration:-
❖ Plays very important role in any tax statute.

❖ Determines jurisdiction of a particular authority.
❖ Unique identification.
❖ Link transactions.
❖ Proper accounting of input taxes paid.
❖ GST collection.
❖ Legally recognized as supplier of goods and services.
❖ Pass on the credit of taxes paid on the goods or Services supplied to purchase or
recipients.
❖ Without GST registration, a legal person can neither collect GST nor claim any input
tax credit of GST paid by him.
❖ Service compliances: Tax-Returns-Assessment or any communication.
EXEMPTION FROM PAYMENT OF TAX :

❖ Taxpayers with an aggregate turnover of Rs. 20 lakhs would be exempted from tax.
For, North Indian states and Sikkim, the exemption would be Rs. 10 lakhs.
❖ Aggregate turnover shall include the aggregate value of all taxable and non-taxable/
non GST supplies, exempt/ nil-rated supplies and exports of goods and/ or Services
and exclude taxes under GST.
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2.6 OPPORTUNITIES AN END TO CASCADING EFFECTS:
This will be the major contribution of GST for the business and Commerce. At present, there are
different state level indirect tax levies that are compulsory one after another on the supply chain
till the time of its utilization.
GROWTH OF REVENUE IN STATES AND UNION:

It is expected that the introduction of GST will increase the tax base but lowers down the tax rates
and also removes the multiple point. This will lead to higher amount of revenue to both the states
and the union.
REDUCES TRANSACTION COST AND UNNECESSARY WASTAGES:

If government works in an efficient mode, it may be also possible that a single registration and
single compliance will sufficient for both SGST and CGST provided government produces
effective IT infrastructure and integration of such infrastructure of states level with the union.
ELIMINATES THE MULTIPLICITY OF TAXATION:

One of the great advantages that a taxpayer can expect from GST is elimination of multiplicity of
Taxation. The reduction in the number of Taxation applicable in a chain of transaction will help
to clean up the current mess that is brought by existing indirect tax laws.
ONE-POINT SINGLE TAX:
Another feature that GST must hold is it should be “one-point single Taxation”. This also gives a
lot of comforts and confidence to business community that they would focus on business rather
than worrying about taxation that may crop at later stage.
2.7 BENEFITS OF GST BILL IMPLEMENTATION
➢ The tax structure will be made lean and simple.
➢ The entire Indian market will be a unified market which may translate into lower business costs.
23
It can facilitate seamless movement of goods across states and reduce the transaction costs of
business.
➢ It is good for export oriented business. Because it is not applied for goods/Services which are
exported out of India.
➢ In the long run, the lower tax burden could translate into lower prices on goods and consumer’s.
➢ The suppliers, manufacturers, wholesalers and retailers are able to recover GST incurred on
input costs as tax credits. This reduces the cost of doing business, thus enabling fairer prices
for consumer’s.
PROCEDURE OF GST:
❖ Every person who is registered under the pre-GST law (i.e., Excise, VAT, Service tax etc.)
Needs to register under GST.
❖ When a business which is registered has been transferred to someone, the transferee shall
take registration with effect from the date of transfer.
❖ Anyone who drives inter-state supply of goods**
❖ Casual taxable person
❖ Non-resident taxable person.
❖ Agents of a supplier.
❖ Those paying tax under the reverse charge mechanism.
❖ Input Service distributor.
❖ E-commerce operator or aggregator.
❖ Person supplying online information and database access or retrieval Services from a place
outside India to a person in India, other than a registered Taxable Person.
24
WHAT ARE THE DOCUMENTS REQUIRED TO REGISTER UNDER GST:
PAN is mandatory to apply for GST registration (except in case of non-resident).
The document/ details required to register for GST are:
GST REGISTRATION FEES:

Business can register for GST and obtain GSTIN free of cost.
However, GST registration is a tedious 11 step process which involves submission of many
Business details and scanned documents.
You can opt for clear tax goods and services tax (GST) Registration Services where a GST expert
will assist you end to end with GST registration.
WHAT IS GSTIN?
All businesses that successfully register under GST are assigned unique Goods and
Services tax Identification Number also known as GSTIN.
25
TAX INVOICE, CREDIT & DEBIT NOTES:
There shall be separate invoice for taxable supplies called as tax invoice. For non-taxable goods a
bill shall be issued.
POINT OF TAXATION (TIME OF SUPPLY) FOR GOODS:

❖ Normal supply of goods- earliest of removal of goods (in case of movable) made available
to recipient (non-movable) invoice raising, recipient of payment, accounting books.
❖ Continuous supply of goods- on successive payments/ statement of account or invoice/
payment.
❖ Confirmation of supply.
FOR SERVICES:
1. Normal Supply Of Services

❖ When invoice raise within time- Earliest of invoice raising or recipient of payment.
❖ Otherwise- Earliest of completion of service, receipt of payment or accounting in books.

2. Continuous supply of Services- when due date is ascertainable from contract, the due date
else each time payment is received/ invoice issued, in case payment is linked to completion
of event.
3. Reverse charge- Earliest of date of receipt of goods/Services, payment, invoice, Accounting
in books.
PLACE OF SUPPLY:
FOR GOODS: Place where the goods are delivered except in case of Goods not involve
movement, assembled/ installed at site- location of goods.
FOR SERVICES:
In case of a registered person- location of such registered person.
In case of a unregistered recipient- address the recipient and if it is not available, the location of
the supplier of Services.
26
PAYMENT OF CHALLANS:
FEATURES OF PAYMENT PROCESS UNDER PROPOSED GST SCHEME
Tax payable as per return shall be paid on or before the last date for filling the return, i.e. on or
before 20th of the next month in case of monthly return.
PROPOSED MODE OF PAYMENTS:
Payment of challah can be through internet banking through authorized banks or credit/debit card
or over the counter payment (OTC) through authorized banks or payment through NEFT/ RTGS
from any bank.
Payment by book adjustments would not be allowed.
BIRD'S EYE VIEW OF GST RETURNS:
27
MAINTENANCE OF RECORD:
Every registered person shall be required to keep and maintain records of production, inward and
outward supplies, stock, input tax credit availed, tax payable and paid at least for 60 months.
AUDIT:
❖ Audit of all returns compulsorily.
❖ Around 70% state- 30% central.
REFUND PROCESS:
Refund may arise on account of
❖ Excess payment of tax due to mistake or inadvertence.
❖ Export of goods/Services.
❖ Finalization of provisional assessment.
❖ Refund of pre-deposit for filling appeal.
❖ Payment of duty/tax during investigation but no/ less liability arises at the time of
finalization of investigation/adjudication.
❖ Refund of tax payments on purchases made by Embassies or UN bodies.
❖ Tax credit on inputs used for manufacturing/generation/production/creation of tax free
supplies or Non- GST supplies.
28
CHAPTER -3
Presentation, Analysis & Findings
❖ Present taxes to be subsumed

❖ Need of Goods and Service Tax(GST)
❖ GST Analysis & Opinions
❖ Impact of GST On Automobile Industry
❖ Global Experience of GST
29
3.1 GST SUBSUMED PREVIOUS TAX STRUCTURE
GST proposes to subsume the following indirect taxes currently levied by the Central Government
(CG) and the state government (SG).
❖ All goods and services are covered under GST except alcoholic liquor for human
consumption. Excise duty would be levied by the SGs on production and VAT would be
levied by the SGs on sale of liquor for human consumption
30
❖ 5 petroleum products namely, petroleum crude, natural gas, motor spirit (petrol), high
speed diesel and aviation turbine fuel would be brought under GST from the date to be
notified on recommendation of GST council. These 5 petroleum products continue in the
union list of articles 246 of the constitution of India for excise duty & state list for VAT.
Other petroleum products like LPG, Naphtha, kerosene, fuel oil etc. Would be covered
under GST.
❖ Tobacco products are covered under GST and the CG is empowered to levy Excise duty
on the same over and above GST.
3.2 NEED OF GOODS AND SERVICE TAX (GST) :

India has a 3-tier federal structure, compromising the union Government, the state government and
the urban / rural local bodies. The power to levy taxes and duties is distributed among the 3 tires
of governments, in accordance with the provisions of the India Constitution. Principal indirect
taxes levied in India are listed.
31
3.3 GST ANALYSIS AND OPINIONS:
GST has brought in “one nation one tax” system, but its effect on various industries is slightly
different. The first level of differentiation will come in depending on whether the industries deals
with manufacturing, distributing and retailing or is providing a service.
IMPACT OF GST ON MANUFACTURERS, DISTRIBUTOR AND RETAILERS:
GST is a boost competitiveness and performance in India’s manufacturing sector. Declining export
and high infrastructure spending are just some of the concerns of the sector. Multiple indirect taxes
had also increase the administrative cost for manufacturers and distributors and with GST in place,
the compliance burden has eased and this sector will grow more strongly.
But due to GST business which was not under the tax bracket previously will now have to register.
This will lead to lesser tax evasion
IMPACT OF GST ON SERVICE PROVIDER:
As of March 2014, there was 12, 76,861 service tax assesses in the country out of which only the
top 50 paid more than 50% of the tax collected nationwide. Most of the tax burden is borne by
domains such as it services, the insurance industry, business support services, banking and
financial services, etc. This Pan-India business already worked in unified market, and when she
compliance burden becoming lesser.
But they will have to separately register every place of business in each state.
32
SECTOR WISE IMPACT ANALYSIS:
❖ E-COMMERCE: The E-Commerce sector in India has been growing by leaps and bounds.
In many ways, GST will help the E-Commerce sectors continued growth, but the long-
term effects will be particularly interesting because the GST law specifically proposes a
tax collection at source (TCS) mechanism, which E-Commerce companies are not to happy
with. The current rate of TCS is at 1%.
❖ TELECOMMUNICATION: In the telecom sector, prices will come down after GST.
Manufacturers will save on cost through efficient management of inventory and by
consolidating their warehouses. Handset manufacturers will find it easier to sell their
equipment as GST has negated the need to set up state-specific entities, and transfer stocks.
This will also save on logistics costs.
❖ TEXTILE: The Indian textile industry provides employment to a large number of skilled and
unskilled workers in the country. It contributes about 10% of the total annual export, and
this value is likely to increase under GST. GST would affect the cotton value chain of the
textile industry which is chosen by most small medium enterprises as it previously attracted
zero central excise duty (under optional route).
❖ FMCG: The FMCG sector is experiencing significant savings in logistics and distribution
costs as the GST has eliminated the need for multiple sales depots.
❖ AUTOMOBILES: The automobile industry in India is a vast business producing a large
number of cars annually, filled mostly by the huge population of the country. Under the
previous tax system, there were several taxes applicable. on this sector like exercise, VAT,
sales tax, road tax, motor vehicle tax, registration duty which will be subsumed by GST.
33
3.4 IMPACT OF GST ON AUTOMOBILE DEALER’S INDUSTRY:
The Indian auto industry is one of the largest in the world. The industry accounts for 7.1%
of the largest in the world. The industry accounts for 7.1% of the country’s gross domestic
product (GDP). Almost 13% of the revenue from Central excise is from this sector and
claims a size 4.3% of total exports from India. Despite its contribution to the economy and
growth potential, this sector has been combating the hardship of high tax rates for
substantially a long period of time now with central excise duty ranging between 12.5% to
30% coupled with introduction of multiple cases ant revenues whims and fancies, most
recent being infrastructure chess.
Thus, introduction of GST shall be a breather for this sector wherein taxes on vehicle are largely
expected to be @ 18% in GST regime except for luxury cars where the rate may go up to 28%
plus cases. However, even this rate of taxation will be beneficial of this industry. The article
focuses on the supply chain part of this industry that is the “automobile dealers”. Therefore, this
article examines the intricacies of GST on automobile dealers.
BEFORE GST, DEALERS ARE PAYING FOLLOWING INDIRECT TAXES:

❖ Service tax (ST) on services both as provider and also as receiver under reverse / joint
Charge.
❖ Value added tax (VAT) / Central sales tax (CST) / on sale of vehicles / spares
/Accessories.
34
IMPACT OF GST ON VARIOUS ASPECTS IS AS EXAMINED BELOW:
1. Impact on Credits:
Currently, automobile dealers are not able to avail CENVAT credit on the following
indirect taxes paid by them.
❖ CST paid on purchase of vehicle, Spares, consumables and accessories.
❖ Excise duty paid on purchase of vehicle, spares, consumable and accessories.
❖ NCCD, auto season infrastructures is paid on purchase of vehicle.
❖ CVD pet on any imported spares, accessories and consumable.
❖ SBC paid on input services.
❖ Reversal of proportionate CENVAT credit of service tax due to trading activity

showroom rent, advertisement expenses etc.
In GST regime, all the above duties / taxes will get subsumed; therefore, dealers should be able to
avail the input tax credit of all its procurement of goods and services.
2. Impact on the Procurement Costs Of Vehicles:
Since, all of the above taxes get subsumed in the GST; therefore the procurement cost to that extent
will come down as explained below:
35
❖ Since, IGST and cusses shall be fully available as credit in the GST regime, therefore they
will not form part of purchase cost and can be set off from output GST payable on sale of
the vehicle.
❖ Procurements are assumed to be in the course of inter-state. GST rates have been assumed
to be at such levels based on the various news reports and the reports issued by various
committees formed by the Ministry of Finance.
As noted above, reduction in procurement Cost is substantial as cascading of taxes was just
adding to the cost in this sector.
3. Impact on the Sale Price
Since, the procurement cost reduces in GST and if the benefit of the same is fully passed on
to the customer, then is leads to reduction in sale price of the vehicle as tabulated below:
(Source: Internet)
Note:- Assuming that the sale prices at 5% mark up above the purchase price. it is seen from
the above calculation that overall reduction in the purchase cost of the per vehicle ranges from 16
% to 34% and if full benefit of such reduced prices is passed on to the end consumers then the
sale prices of vehicles can come down in the GST regime which will boost this sectors growth
and must have largely positive impact due to invasion of GST.
36
4. IMPACT ON WORKING CAPITAL:
Following aspects will impact the working capital of the automobile dealers in the GST regime:
❖ VEHICLE TRANSFERS:
Transfer of vehicle / spares to other premises will be liable for GST if the transfer is in the course
of inter-state trade. Further, if there is separate dealership of a dealer and separate GST registration
number is obtained for each such dealership, then transfer of any goods or services between such
dealerships will also be liable for GST. This shall be block the working capital as the taxes needs
to be paid from own fund and collection of taxes will be at a later date only when such / services
evenly sold.
❖ FREE SERVICE COUPON VOUCHERS:
These coupons will be issued at the time of sale of the vehicle. As per the time of supply rule,
GST on such coupons needs to be paid immediately on the date of issue of such vouchers. As per
the policy of some manufacturers, the amounts in respect of such coupons will be redeemed to the
dealers only once the customer brings the vehicle for repair to the workshop. Therefore, dealer's
should have to pay tax on such coupons immediately on its issue, but they said taxes can be
collected from the customers only when the vehicle comes for the repair leading to unnecessary
blocking of fund in taxes.
❖ VEHICLE BOOKING ADVANCE:

It is quite common in this sector that the vehicles will be booked in advance on payment of certain
amount as token. Currently, VAT is not being paid on such advances as the same is payable at the
time of sale of vehicle. However, this luxury of holding advances without payment of taxes is
clipped in the GST regime and taxes need to be paid on receipt of the booking advances also.
Therefore, dealers either have to pay taxes on the advances out of its pocket or collect Axis text
even on the token advances.
37
❖ COMMISSION, WARRANTIES AND INCENTIVES:
Currently, it is very difficult for dealers to pay service tax on accrual basis on the following
incomes and thereby as a system of practice many dealers are paying service tax on receipt basis.
❖ COMMISSION FROM BANKERS/INSURERS:
As details of the commission will be provided by bankers/insurers at a later date with constant
changes involved. Therefore, generally dealers pay service tax on such receives only upon receipt
of commission.
❖ INCOME FROM MANUFACTURER:
Various commissions, incentives, reimbursements, warranty receipts etc. Are received from
manufacturer. Dealer does not pay taxes on this incomes on accrual basis as the same may or may
not get approved by the manufacturer at a later date. Therefore, currently Service tax is paid on
receipt basis only when the amount is credited by the manufacturer and is reflected in the
manufacturer’s statement.
However, the luxury of paying taxes on receipt basis will not be accepted in the GST regime as
everything will be system driven. Therefore, dealers will have to either get it system connected with
the bankers and manufacturers immediately to ensure smooth transition into the GST regime or else
it would have to take the brunt of taxes on its own due to fault of its vendor.
5. REDUCED CURRENT LITIGATIONS:
Currently this sector is facing on the following areas:
❖ VALUATION IN SERVICING OF VEHICLE:
Complexity in bifurcation of the material and labor component is the servicing of vehicle has led
to multiple disputes as both the Service tax and sales tax authorities demanded taxes on a higher
component.
❖ HANDLING CHARGES:
Weather it is liable for VAT or Service tax has led to demand of taxes from both authorities
and thereby disputes.
❖ REGISTRATION CHARGES:
Disputes were noted on Applicability of Service tax on various charges that are merely
collected as pure agent such as temporary permanent Registrations etc.
38
❖ INCENTIVES:
It has been a matter of disputes at a various judicial forum as to whether the incentives
received by the automobile dealers from the manufacturer whether amounts to any “Service”
to be liable for Service tax. Such disputes would end in the GST regime as the tax base for
both CGST and SGST shall be same.
6. IMPACT ON TRASITIONAL CREDITS:
To transfer the existing credits in the GST regime, condition has been kept that such credit must
have been admissible in the GST regime. Therefore, the dealers should be able to transfer the
following credits to the GST regime.
❖ CREDIT OF SERVICE TAX:

The same must be properly reflected in the last Service tax returns and documentation must
be in place to establish the same. Further, Service tax credit pertaining to cars, spares in stock
can also be availed.
❖ EXCISE DUTY/CVD:
Since, currently dealers are not availing the credit of excise duty & CVD. Therefore, they
need to ascertain the value of stock as on the appointed day and based on the availability of
the invoice, and credit can be availed. Further, even if proper excise invoice is not available
with the dealers still a percentage as prescribed can be taken as credit to transit its excise
credit in the GST regime.
❖ VAT/SAD:
Similarly, if a dealer is not availing the credit of VAT/SAD current due to restriction in the
state VAT law, then credit can be availed based on the ascertainment of stock as on appointed
day. However, if the credit of VAT is being currently availed then the same needs to be
properly reflected in the last VAT return to transfer such credits to the GST regime.
❖ CREDIT OF CST:
The same can’t be availed subject to possession of appropriate documents for the same in
states where such set off is permissible.
39
❖ ENTRY TAX:
Credit of some can be availed subject to possession of appropriate documents for the same in
states where such set-off is permissible.
7. IMPACT DUE TO ANTI-PROFITEERING MEASURES:

Since a dealer will be able to take the credit of goods lying in stock, the tax cost would be
decrease.
This additional benefits accruing to a dealer is expected to be passed on to the end consumer
by way of reduction in prices etc. A separate authority will be formed in the GST regime to
monitor the non-compliance of the anti-profiteering matters which could have an adverse
impact on the entire industry especially when the pricing is predefined by the manufacturer.
Therefore, it is imperative for the dealer to establish passing of the GST benefits to its
consumers. In this times of falling prices this may not be
40
3.5 GLOBAL EXPERIENCE OF GST:
E.G. Australian Experience:
Australian Experience:
❖ GST is a window into business- indirect tax function more integrated into broader business
focus(DATA).
❖ Comment by ATO office- “Sunshine is a great disinfectant”.
❖ Integrity of business system (IBS)- the ATO risk and data integrity focus.
❖ Multiplier effect of incorrect transaction can lead to significant revenue risk.
❖ Business going through change our especially at risk (staff changes, organizational
restructures etc.)
❖ New accounting software or significant upgrades- a risk and a window of opportunity.
❖ Regional/ Global GST/ VAT reporting requirements.
❖ Self-Assurance more is coming / light touch / 3-year moratoriums-big ATO focus.
41
CONCLUSION & RECOMMENDATIONS
While successfully completing this project, I have identified that GST drives for
boosting up economic growth of any country. GST is the most logical steps
towards the comprehensive indirect tax reform in our country since independence.
GST is lovable on all supply of goods and provision of services as well
combination thereof. All sectors of economic whether the industry, business
including Govt. Departments and service sector shall have to bear impact of GST.
All six sense of economy viz., Big, medium, small scale units, intermediaries,
importers, exporters, traders, professionals and consumers shall be directly
affected by GST. One of the biggest taxation reforms in India – Goods and Service
Tax (GST) is all set to integrate state economies and boost overall growth. GST
bill create a single. Unified Indian market to make the economy stronger. Experts
say that GST is likely to improve tax collections and boost India's economic
development by breaking tax barriers between states and integrating India through
a uniform tax rate. Under GST, the taxation burden will be divided equitably
between manufacturing and services through a lower tax rate by increasing the tax
base and minimizing exemptions.
42
Besides various recommendations has come to my mind while
doing this project.
❖ The proactive initiative if implemented properly, government can expect

refund of rupees thousand core.
❖ GST will simplify our indirect tax structure.
❖ Government should create more items under zero rated supplies rather than
exempt rate supplies.
❖ In order to settle the issue, the Govt. Need to play their role by put more
efforts in educating the public about tax.
43
BIBLIOGRAPHY
This project has been done with the help of different books, magazines,
journals and websites. My supervisor has also suggested some suggestions.
I visited many sites and followed many journals like:-
✓ www.caclubindia.com
✓ www.gstindia.com
✓ www.cbec.gov.in
✓ www.financialexpresss.com
✓ www.gstcounsil.gov.in
✓ Comtax.up.nic.in
✓ www.moneycontrol.com
✓ www.ey.com
✓ www.hindustantimes.com
✓ www.wikipedia.org
✓ www.finmin.nic.in
✓ www.economictimes.indiatimes.com
✓ The Economic Times (News Paper)
✓ Student’s journals of Institute of Chartered Accountants of India
✓ Monthly journals of Institute of Chartered Accountants of India All
about GST- A Complete Guide to Model GST Law .
44
QUESTIONNAIRES
1:- Will society get benefit through GST implementation?
A) Yes B) No
2:- Will Central Government collect more Revenue through GST system?
A) Yes. B) No
3:- Will GST block the loopholes of previous indirect taxation system?
A) Yes. B) No
4:- Is GST more beneficial than previous indirect tax structure?
A) Yes. B) No
5:- Will state government collect more Revenue through GST system?
A) Yes. B) No
6:- Will GST boost towards GDP of the Country?
A) Yes. B) No
7:- Will Government control the inflation of price of commodity?
A) Yes. B) No
8:- Do you think GST shall be applicable on necessary Goods?
A) Yes. B) No
9:- Do you think GST shall be applicable on books?
A) Yes. B) No
10:- Do you support GST?
A) Yes. B) No
45
SURVEY RESULTS OF GST PROJECT
46

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GST – The New Era of taxation

(A Project Report submitted to the Rajdhani College, Bhubaneswar

In partial fulfillment of the requirement for the degree of

RAJKUMAR SAIKISHAN SAHOO

Roll No.: BC-19-121

Assistant professor of Commerce,

Rajdhani College , Bhubaneswar

Date: - Rajkumar Saikishan Sahoo

Place:- Bhubaneswar Exam roll no.- 1903010190080069

Rajdhani college, Bhubaneswar

Place: Bhubaneswar Dr. Samira Patra

My vocabulary fails to provide me with suitable words to acknowledge the

I am also thankful to other faculty members of Department of Commerce,

Rajkumar Saikishan Sahoo

SL no. PARTICULARS PAGE NO.

1 Chapter 1 – Introduction 1-9

2 Chapter 2 – Conceptual Framework 10-28

3 Chapter 3 – Presentation of Data Analysis 29-41

4 Conclusion and Recommendations 42-43

❖ Concept and Introduction of Tax

1.1. Concept and Introduction of Tax:

Brief History of Taxation:

Why are Taxes Levied ?

What are the Reasons of Taxation?

➢ Provide the basic facilities for every citizen of country.

Tax can be defined in the following ways:

Different Types Of Taxes:

➢ Banking cash Transaction Tax

(2) Indirect Taxes:

(3) Local Taxes In India:

Known as the Entry Tax or the Doctor Tax.

(4) Income Tax:

(5) Consumption Tax:

1.1. Justification of GST

➢ Additional power of levy of taxation of services for the states

➢ System of comprehensive set-off relief

➢ subsuming of several taxes in the GST

➢ Removal of burden of CST.

➢ To make a comparative study of GST and other Taxes in India.

1.3. Brief Review of Literature on GST

1.5. Limitations of The Study

➢ There was a problem of cost involved in earning out the project.

The Two Important Purposes of GST are followings

➢ Single Umbrella Tax Rate:

➢ Removing Cascading Effect:

Types Of Categories under GST rate

These are four categories of goods and services are follows:

Exempted Categories under GST in India:

Essential Goods and Services for GST in India:

Commonly used Goods and Services: 5%

Standard Goods and services for GST in India:

Standard Goods and Services fall under 1” Slab: 12%

Standard Goods and Services fall under 2 Slab: 18%

Special Goods and Services for GST tax Levy:

Special category of Goods and Services including Luxury Goods: 28%

2.2 Types Of Goods and Service Tax in India.

State taxes which will be subsumed in SGST:

➢ VAT/ Sales Tax.