PROJECT REPORT

(Submitted for the Degree of B. Com Honours In Accounting & Finance

under the University Of Calcutta)

TITLE OF THE PROJECT:

“STUDY ON GOODS & SERVICES TAX”

SUBMITTED BY
Name of the Candidate: MD TAUSIF
University Registration Number: 314-1111-0377-21
Name of the College: SIR GURUDAS MAHAVIDYALAYA
College Roll Number: 2100600
University Roll Number: 211314-21-0044

SUPERVISED BY
ARUNABHA SINHA

Date of Submission: ___________________________

Mobile No. _________________

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 Annexure – IA
SUPERVISOR’S CERTIFICATE

This is to certify that MD TAUSIF, a student of B. Com (Honours) in

Accounting & Finance of SIR GURUDAS MAHAVIDYALAYA under the
University of Calcutta has worked under my supervision and guidance
for his Project Work and prepared a Project Report with the title –
“STUDY ON GOODS & SERVICES TAX”, which he is submitting, is the
genuine and original work to the best of my knowledge.

Place: Kolkata Signature of Supervisor

Date: Department of Commerce
Sir Gurudas Mahavidyalaya

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 Annexure - IB
STUDENT’S DECLARATION

I hereby declare that the Project Report with the title “STUDY ON
GOODS AND SERVICES TAX” submitted by me for the partial fulfilment
of the degree of B. Com (Honours) in Accounting and Finance under the
University of Calcutta is my original work and has not been submitted
earlier to any other University for the fulfilment of the requirement for
any course of study.
This project report has been prepared on the basis of secondary
resources, data, and findings.

Signature of Student
Name of the Student: MD TAUSIF
University Registration No: 314-1111-0377-21
University Roll No: 211314-21-0044
College Roll No: 2100600

Place: Kolkata
Date:

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 ACKNOWLEDGEMENT

A special thanks to SIR ARUNABHA SINHA, for being such a good

guidance to us while we were doing this task. He had given us an
appropriate examples and knowledge to make us understand more
about this topic. He spends his time to explain the execution of this
idea in all the way.
We also want to thank other groups who shared their information
about this topic.
Also, a great thanks to my family and friends who gave their support
either financially and encouragement to keep up with this task.

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 CONTENT

CH.NO. TITLE PAGE NO.

1 Introduction to Goods and Services Tax 6-9
(a) Background of the study topic
(b) Justification of the study topic
(c) Brief Review of literature
(d) Objectives of the study topic
(e) Methodology:
(i) Area of the study
(ii) Sample
(iii) Type of study
(iv) Tools for data collection
(v) Method of analysis
(f) Limitation of the Study
(g) Chapter planning

2 Conceptual Framework 10 - 16
(a) Conceptual Framework
3 Presentation of Data Finding and Analysis of 17 - 24
GST
(a) Presentation, Analysis & Findings on Impact of GST on
various sectors in India

(b) Presentation, Analysis & Findings on Impact of GST on

Common People Spending.

(c) Analysis & Findings on Component of GST gross

collection in India

(d)Analysis & Findings of GST Collection for July in

Financial Year 2023-24
4 Conclusion and Recommendation 24 – 27
(a) Analysis wise Conclusion
(b) Objective wise Recommendation

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INTRODUCTION

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1.a. BACKGROUND OF THE STUDY TOPIC
The decision to study the Goods and Services Tax (GST) for my final
semester project in B. Com Honours Accounting and Finance reflects its
critical role in modern tax systems and economic policies.
GST is a significant tax reform aimed at simplifying taxation and
enhancing economic efficiency. Implemented in several countries,
including India, GST aims to make tax rules clearer and fairer for
businesses, consumers, and the government.
Understanding GST is essential for accounting and finance students like
me. This project intends to explore GST's background, reasons behind
its introduction, and its impact on different sectors of Indian economy.

1.b. JUSTIFICATION OF THE STUDY TOPIC

The decision to focus on the Goods and Services Tax (GST) as the
subject of my project report is justified because it is both academically
enriching and intellectually stimulating, offering a platform to explore a
topic of immense relevance within the field of accounting and finance.

1.c. BRIEF REVIEW OF LITERATURE

The decision to study the Goods and Services Tax (GST) for the 6th-
semester project report is heavily influenced by an authoritative text
that shed light on the complexities and significance of this tax reform in
simpler manner.
For me, it is “Prayas TAXATION II for A.Y. 2023-24 of B.COM under
CBCS, compiled by authors named SANJAY MUNDHRA and VIKASH
MUNDHRA, published by Lawpoint Publications.
This book played a pivotal role in shaping the understanding and scope
of the project.
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1.d. OBJECTIVES OF THE STUDY TOPIC:
a. Understand the basics: Gain a clear understanding of what GST is
and how it works.
b. Explore impacts: Investigate how GST affects businesses, consumers,
and government revenue.
c. Analyze implementation: Examine the challenges faced during the
implementation of GST.
d. Evaluate effectiveness: Assess whether GST is achieving its goals of
simplifying taxation and boosting the economy.

1.e. METHODOLOGY:
(i) Area of Study: In the project report, the concepts related to GST, its
implementation and aftermaths has been discussed.

(ii) Sample: GST is regarded as a major Taxation reform till date

implemented in India since independence.

(iii) Type of Study: This project report is based on secondary resources

and data collected from respective websites and documents.

(iv) Tools for Data Collection: Web Browser, Content from website of
GST Council, PIB etc.

(v) Method of Analysis: Analysis of numerical data has been from

secondary resources, mainly from website of Press Information Bureau
and https://cleartax.in

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1.f. LIMITATION OF THE STUDY TOPIC
a. Data availability: Limited access to comprehensive and up-to-date
data on GST implementation and its impacts.
b. Time constraints: Constraints on the time available to conduct
thorough research and analysis.
c. Scope restrictions: Inability to cover all aspects of GST due to the
vastness of the topic.
d. External factors: Influence of external factors beyond the scope of
the study that may impact the findings and conclusions.

1.g. CHAPTER PLANNING

This project report of “Study on Goods and Services Tax” consists of 4
chapters as discussed below.
(i) Chapter 1: It is based on Introduction, which contains
background, justification, brief review of literature, objective,
methodology and limitation of study topic
(ii) Chapter 2: It is based on conceptual framework of Goods and
Services Tax, where all basic aspects related to the study
topic are covered in detail.
(iii) Chapter 3: It contains Presentation, Analysis & Findings based
on major sectors, effect on common people, components,
and collection of GST
(iv) Chapter 4: It represents analysis wise Conclusion and
Recommendations based on this project report.

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CONCEPTUAL FRAMEWORK

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a. BACKGROUND OF GST
The history of GST traces back more than 20 years ago to the year 2000
when the first discussion with regard to India adopting GST was made
at a time when the Atal Bihari Vajpayee government was in reign. An
empowered committee of state finance ministers was chosen for this
purpose since they had prior experience working with State VAT.
In 2014, the then Finance Minister, Mr. Arun Jaitley, introduced the
Constitution Amendment Bill in the parliament. In May 2015, the
Constitution (122nd Amendment) Bill was passed in the Lok Sabha.
On the 1st of July, 2017, GST was officially rolled out.

b. CONCEPT OF GST
In simple words, GST is an indirect tax levied on supply of goods or
service or both all over India, It is a consumption-based tax, levied both
by Central Government and State Government/Union territory.
The primary objective behind development of GST is to subsume all
sorts of indirect taxes in India like Central Excise Tax, VAT/Sales Tax,
Service tax, etc. and implement one taxation system in India.
Under the taxation system of GST, manufacturers, wholesalers,
retailers and service providers charge GST at the specified rate on price
of the goods and services from consumers and claim input credits for
GST paid by them on procurement of goods and services (raw
material).

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c. OBJECTIVES OF GST
To Develop national Market- One Nation, one Tax.
• To reduce multiplicity of indirect taxes.
• To Eliminate classification dispute between goods & services.
• To remove barriers in Inter-State movement of goods.
• To ease the administrative control.
• Uniformity of tax rates and automated compliances.

d. ADVANTAGES OF GST
• GST eliminates the cascading effect of tax.
• Higher threshold for registration.
• Composition scheme for small businesses.
• Simple and easy online procedure.
• The number of compliances is lesser.

e. LIMITATION / DISADVANTAGES OF GST:

• Increased costs due to software purchase.
• Being GST- compliant.
• GST will mean an increase in operational costs.
• GST came into effect in the middle of the financial year.
• GST is an online taxation system.
• SMEs will have a higher tax burden.

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f. THE TAXABLE EVENT IN GST:
The taxable event in GST is supply of goods or services or both. The
liability to pay tax arises at the ‘time of supply of goods or services.’
Thus, determining whether a transaction fall under the meaning of
supply, is important to decide GST’s applicability.

g. STRUCTURE OF GST:

Dual model GST is applicable in India i.e., two varieties of GST will be
charged on same bill i.e., CGST (Central goods and service tax) and
SGST (State goods and service tax). On an Intra State Supply, both CGST
and SGST shall be applicable.
Amount of CGST is revenue of the Central Government and the amount
of SGST is revenue of State Government.

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h. TYPES OF GST:

• Central Goods and Services Tax (CGST).

• State Goods and Services Tax (SGST).
• Integrated Goods and Services Tax (IGST).
• Union Territory Goods and Services Tax (UTGST).

i. CENTRAL TAXES SUBSUMED IN GST:

• Central Excise Tax.
• Service Tax.
• Additional Custom duty, commonly known as Countervailing Tax
(CVD).

j. STATE TAXES SUBSUMED IN GST:

• VAT/Sales tax.
• Luxury tax.
• Purchase tax.
• Entry tax/Octroi. • Central Sales Tax.

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k. TAXES NOT SUBSUMED IN GST:
• Custom duty, Stamp duty, Securities transaction tax,
• Central Excise on Petroleum products, Tobacco
• VAT on Petroleum Products and Alcohol.

l. RATE OF GST:
Rate of GST varies from product to product. There are 4 popular rates of
GST i.e,
(a) 5% (2.5%CGST+2.5%SGST)
(b) 12% (6%CGST+6%SGST)
(c) 18% (9%CGST+9%SGST) and
(d) 28% (14%CGST+14%SGST)
Note:
(a) Special Rate of GST on Jewellery: It is 3% in case of Gold, Silver,
Platinum etc.
(b) In case of rough diamond rate of GST is 0.25%

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m. SUPPLY:
The scope of term supply is given under Section 7(1) of CGST Act which
provides the inclusive definition of term supply. As per the provision of
supply, supply includes:
(a) all forms of supply of goods or services or both such as sale,
transfer, barter, exchange, license, rental, lease or disposal made or
agreed to be made for a consideration by a person in the course or
furtherance of business.
(b) import of services for a consideration whether in the course or
furtherance of business and.
(c) the activities specified in Schedule 1, made, or agreed to be made
without a consideration and.
(d) the activities to be treated as supply of goods or supply of services
as referred to in Schedule 11.

n. GST COUNCIL:
Goods & Services Tax (GST) Council is a constitutional body for making
recommendations to the Union and State Government on issues related
to Goods and Service Tax. The GST Council is chaired by the Union
Finance Minister and other members are the Union State Minister of
Revenue or Finance and Ministers in-charge of Finance or Taxation of all
the States.

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PRESENTATION OF DATA FINDING &
ANALYSIS OF GST

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a. PRESENTATION, ANALYSIS, & FINDINGS ON IMPACT OF GST
ON VARIOUS SECTORS OF INDIA

After the enforcement of Goods and Services Tax (GST), many sectors
faced some positive effects as well as negative effects. The
enforcement of the tax was for the long term benefit and requires the
patience of citizens.
Some of the major sectors that have been affected by the
implementation of GST are–
a. Export-Import Sector f. Banking Sector
b. Real estate and Property g. Gold Industry
c. Entertainment Industry h. Textile / Garment Industry
d. Hotel and tourism Industry i. IT Industry
e. Logistics industry j. FMCG Industry

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EXPORT AND IMPORT SECTORS:
Before the enforcement of the Goods and Services Tax (GST), Export
and Import were governed by the Service Tax, Value Added Tax, Excise
Duty and Customs Duty. These were imposed on the Import and Export
goods and services. When Goods and Services Tax (GST) was
introduced all these taxes were merged into one. But the Basic
Customs Duty (BCD) continues to work on the import bills.

REAL ESTATE AND PROPERTY:

We can see the positive impact of GST on property buyers. 12% GST
charges of property value are liable on all under construction
properties, excluding the registration charges and Stamp duty. Earlier
provision is applicable on the ready property. Input tax credits will
increase profit margins for developers or builders, which further
transfers benefits to the home buyers.

ENTERTAINMENT INDUSTRY:
The GST rate for entertainment services varies from 18% to 28%. These
tax rates are different in different states which depend on the type of
entertainment service or product. There were states where the
entertainment service tax was higher than 28%, GST decreased the
overall cost of entertainment.

TEXTILE/READYMADE GARMENT SECTOR:

Textile industry will be benefitted through GST implementation in
India. Ready-made garments up to Rs.1000 is exempted from GST and
branded garments above Rs.1000 will be taxed at 12%

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HOTEL AND TOURISM:
Tourism and hotel industry play an important part to grow India’s GDP.
GST rates for hotels are different according to their tariffs:
• Less than Rs.1000 = 0% (GST free)
• Rs.1000 to 2500 = 12%
• Rs.2500 to 7500 = 18%
• Above Rs.7500 = 28%
It is expected that the cost of tour packages may come down due to
the relief to tour operators under GST regime. 5% tax is liable on tour
operators currently.

LOGISTICTS INDUSTRY:
The logistics industry is the backbone of Indian economy. After the
GST, the time taking clearance process has become easy i.e., less
transit time. Corruption activities are reduced in logistic services. GST
reduces the overall cost of logistics services and increases business
revenue.

BANKING SECTOR
18% GST rates levied on banking services like insurance policies, ATM
transactions etc. The earlier tax rate was 15%. Banking and financial
services become costly. GST has reduced indirect taxes, i.e., Ease of
doing business in the banking and financial sector which leads to
increase in business. It will increase demand for funds and digital
transactions in the banking industry.

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GOLD INDUSTRY:
The gold industry is the biggest market in the world. GST on the gold
industry hits to consumers.
3% GST rate is applicable on gold, 10% on import duty and 5% on
making charges which lead to rising the jewelry prices in India.
The demand for Gold may fall 50 to 70 percent, but there is more
transparency in the gold industry due to the GST implementation. It
will turn in a positive impact on a long term.

IT INDUSTRY:
All IT services and software products, as well as freelancers, are levied
18% GST rate, which makes overall positive impact on IT industry.
Cascading effect is removed through GST implementation. ITC under
GST will bring down the operating costs and increase the profitability
of the IT industry.

FMCG INDUSTRY:
FMCG sector is one of the biggest economic platforms in India. After
the GST implementation, Mostly FMCG products and services are taxed
under 18 to 20 percent. Lower GST rates, give benefits to the business
holder, manufacturers, and consumers directly

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b. PRESENTATION, ANALYSIS, & FINDINGS ON IMPACT OF GST
ON COMMON PEOPLE SPENDING:

GST has both positive and negative effects on common people,

impacting their spending patterns.
1. Pros
- Simplified Tax Structure: GST replaced multiple indirect taxes,
streamlining the system.
- Lower Tax Rates: Essential items (e.g., food grains) have zero tax,
while mass consumption goods are taxed at around 5%.
- Uniform Tax Rate: Both goods and services face a uniform tax rate.
- Reduced Prices: Some goods and services became cheaper due to
lower GST rates.
2. Cons:
- Increased Service Costs: Services like telecom and banking are now
more expensive.
- Mixed Price Impact: While some items got cheaper, others
experienced price increases (e.g., white goods at 28% tax)

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c. ANALYSIS & FINDINGS ON COMPONENT OF GST GROSS
COLLECTION IN INDIA

• For Financial Year2023-24 gross revenue totals Rs.20.14 lakh

crore, showcasing an 11.7% growth (13.4% on a net basis)
• In financial year 2023-24, the Centre settled Rs.4,87,039 crore
towards CGST and Rs.4,12,028 crore towards SGST from the total IGST
collected.
• The average monthly GST collection in the FY 2023-24 jumped to
Rs. 1.68 lakh crore against previous year’s average of Rs. 1.5 lakh
crores, registering year-on-year growth of 11.64%
• For ongoing FY 2024-25, till month of May 2024 monthly gross
GST collection is 3.83 lakh crores, which represents an impressive
11.3% year-on-year growth.

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d. ANALYSIS & FINDINGS OF GST COLLECTION FOR JULY IN
FINANCIAL YEAR 2023-24

1. July 2023 is now known for its fifth-highest monthly GST collections
crossing the Rs.1.6 lakh crore mark since the introduction of GST.
2. Total Gross GST Revenue (July 2023): ₹1,65,105 crore.
3. Breakdown of GST Revenue (July 2023):
- CGST: ₹29,773 crore
- SGST: ₹37,623 crore
- IGST: ₹85,930 crore (including ₹41,239 crore collected on imports)
- Cess: ₹11,779 crore (including ₹840 crore collected on imports)
4. Revenue Comparison with Previous Year (July 2022):
- The revenue in July, 2022 was ₹1,48,995 crore.
- The revenue during July, 2023 shows a growth of 11.00% over the
revenue in the same month last year.

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CONCLUSION & RECOMMENDATION

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ANALYSIS – WISE CONCLUSION
Based on the completed project on the study of GST, here are analysis
wise conclusion.

GST Implementation: The Goods and Services Tax (GST) has been a
significant reform in the Indian taxation system, aiming to unify
multiple indirect taxes into a single tax. This has simplified the tax
structure and is expected to improve economic efficiency.

Sectoral Impact: Various sectors have experienced both positive and

negative impacts post-GST implementation. While some sectors like
logistics and IT have seen operational efficiencies, others like the
banking and gold industries have faced increased costs.

Common People's Spending: GST has altered the spending patterns of

the common people. Although it has not directly affected personal
income taxes, the change in rates of goods and services has influenced
consumer behavior.

GST Collection Analysis: The analysis indicates a steady growth in GST

collections, suggesting an improvement in compliance and an
expansion of the tax base. This growth is indicative of the potential
success of GST in achieving its objectives.

In conclusion, GST has brought about a transformative change in India's

tax regime. It is essential to continue monitoring the effects and make
necessary adjustments to ensure the smooth functioning and success
of GST.

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OBJECTIVE WISE RECOMMENDATION
Based on the completed project on the study of GST, here are some
objective-wise recommendations and suggestions:
Understand the Basics:
- Include case studies or real-life examples to illustrate GST's
application in various business scenarios and add a glossary of GST-
related terms for better comprehension.

Explore Impacts:
- Conduct surveys or interviews with businesses to gather primary data
on GST's impact and compare pre- and post-GST scenarios for a few
selected industries to highlight specific changes.

Analyze Implementation:
- Evaluate the effectiveness of GSTN portal and discuss the role of
technology in streamlining GST compliance.

Evaluate Effectiveness:
- Suggest measures for increasing GST compliance among small and
medium enterprises and recommend policies to eliminate the negative
impacts of GST on certain sectors.

These suggestions aim to enhance the depth and practical relevance of

the project, providing a more comprehensive understanding of GST's
implications.

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 BIBLIOGRAPHY / REFERENCES

• Central Board of Excise and Customs, Ministry of Finance (2024).

• Goods and Services Tax Council (2024).
• https://wordpress.com
• https://holisollogistics.com
• https://startuptalky.com
• https://taxguru.in
 Wikipedia, the free content encyclopedia.
 Prayas TAXATION II for A.Y. 2023-24 of B.COM under CBCS,
compiled by authors named SANJAY MUNDHRA and VIKASH
MUNDHRA, published by Lawpoint Publications.
 https://pib.gov.in
 https://gstcouncil.gov.in
 https://cleartax.in
 https://deccanherald.com
 https://caknowledge.com/gst-international/
 Web Browser: Microsoft Edge.

END

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