INTRODUCTION

GST stands for Goods & Services Tax. It is an indirect tax which was introduced in
India on 1st July 2017 and was applicable throughout India which was replaced the
multiple taxes impose by the Central Government and the State Governments.
GST is applicable for both goods and services, together with uniform pricing. GST
is one tax that is levied on manufacturing, selling, and consumption of goods and
services. It is a destination-based tax, distributed among the Central Government and
the State Governments under the components Central GST (CGST) and State GST
(SGST).

Origin:
The tax came into effect from July 1 st 2017 through the implementation of 122
Amendment Bill of the constitution of India.

Aim or Goal:

GST is a single unified indirect tax system aims at uniting India’s

taxation structure to a “One Nation-One Tax”

The GST is governed by the GST Council and its chairman is the finance
minister of India. Under GST Goods and services are taxed at the following rates -
0%, 5%, 12%, 18% and 28%. Petroleum products and Alcoholic drinks are taxed
separately by the individual state governments. There is a special rate of 0.25% on
rough precious and semi-precious stones and 3% on gold.

 In addition a cess of 22% or other rates on top of 28% GST applies on few
items like drinks, luxury cars and tobacco products.

Features of GST:

 GST would be applicable on “supply” of goods or services as against the

present concept of tax on the manufacture of goods or on sale of goods or on
provision of services.

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 GST would be based on the principle of destination based consumption
taxation as against the present principle of origin based taxation.
 GST is a dual GST with the Centre and the States simultaneously levying it on
a common base. The GST to be levied by the Centre would be called Central
GST (CGST) and that to be levied by the States [including Union territories
with legislature] would be called State GST (SGST).
 An Integrated GST (IGST) would be levied on inter-State supply (including
stock transfers) of goods or services. It would be collected by the Centre.
 Import of goods would be treated as inter-State supplies and would be subject
to IGST in addition to the applicable customs duties.
 Import of services would be treated as inter-State supplies and would be
subject to IGST.
 CGST, SGST / UTGST & IGST were levied by the centre at different rates
and also the state imposed different rates under the guidance of GST council.
 GST would replace the following taxes currently levied and collected by the
Centre
 Central Excise duty
 Duties of Excise (Medicinal and Toilet Preparations)
 Additional Duties of Excise (Goods of Special Importance)
 Additional Duties of Excise (Textiles and Textile Products)
 Additional Duties of Customs (commonly known as CVD)
 Special Additional Duty of Customs (SAD)
 Service Tax;
 Cesses and surcharges in so far as they relate to supply of goods or
services.
 State taxes that would be subsumed within the GST are:
 State VAT
 Central Sales Tax
 Purchase Tax
 Luxury Tax
 Entry Tax (All forms)
 Entertainment Tax (except those levied by the local bodies)
 Taxes on advertisements;
 Taxes on lotteries, betting and gambling;
 State cesses and surcharges in so far as they relate to supply of
goods or services.

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 GST would apply to all goods and services except Alcohol for human
consumption.
 GST on five specified petroleum products (Crude, Petrol, Diesel, ATF &
Natural gas) would be applicable from a date to be recommended by the GST
Council.
 The list of exempted goods and services would be kept to a minimum and it
would be harmonized for the Centre and the States as well as across States as
far as possible.

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 OBJECTIVES OF GST

1st July, 2017 was the day when the Goods and Services Tax was
implemented in India, and it was proposed with the aim of maintaining a unified tax
for the entire nation. The main objective of introducing GST in India is to outplace a
lot of indirect taxes and direct taxes. Taxes like VAT, service tax, luxury tax etc. GST
aimed for including most of the goods and services under GST regime but still GST
has exempted alcohol and petrol from GST rules. After GST implementation, there is
a rise in GST rates to 27% which is higher than the global standard of 16.4%. This
rate is way too high, but still some states wanted the GST rates to be that high only.
Let us have a look over some of the objectives of GST in India. GST aimed at
eliminating the cascading effect of tax on tax. GST aimed at improving the GDP rate
by improving the competition of some of the original goods and services. GST wants
to ensure the availability of input credit across the value chain. GST aims at
eliminating the complications of tax administration and compliance. GST aims at
ensuring a unified tax for the entire nation. GST aims at eliminating the unhealthy
competition among the states due to taxes and revenues. To avoid the further
clarification issues, GST aims at reducing the tax slab rates. GST aims at accurate tax
accounting and hence established reliable and the most helpful GST calculator in
India. GST aims at proper accounts handling so that the entire tax related task can be
done without any corruption. Thereby, GST’s main objective is to eradicate
corruption and maintain a corruption free environment in the entire nation.

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 SIGNIFICANCE OF GST

Wider Coverage: GST provides comprehensive and wider coverage of input

credit setoff and the business people can use the service tax credit for the payment
of tax on sale of goods.

Reducing Tax Burden: By reducing the tax burden the competitiveness of

Indian products in International market is expected to increase and there by
development of the Nation.

Better Compliance: GST ensure better compliance due to aggregate tax rate
reduces on Indian products.

Reducing long term taxes: Prices of goods are expected to reduce in the long run
as the benefits of less tax burden would be passed on the customers.

Uniformly of tax rates and structures: GST will ensure that indirect tax rates
and structure are common address the country. In other words GST would make
doing business in the country tax uniformly irrespective of the choice of place of
doing business.

Simple and easy online procedure: The entire process of GST

(from registration to filing returns) is made online, and it is super simple. This has
been beneficial for start-ups especially, as they do not have to run from pillar to
post to get different registrations such as VAT, excise, and service tax.

Defined treatment for E-commerce operators: Earlier to GST regime,

supplying goods through e-commerce sector was not defined. It had variable VAT
laws. Let us look at this example: Online websites (like Flipkart and Amazon)
delivering to Uttar Pradesh had to file a VAT declaration and mention the

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registration number of the delivery truck. Tax authorities could sometimes seize
goods if the documents were not produced.

Again, these e-commerce brands were treated as facilitators or mediators by

states like Kerala, Rajasthan, and West Bengal which did not require them to
register for VAT.

All these differential treatments and confusing compliances have been removed
under GST. For the first time, GST has clearly mapped out the provisions
applicable to the e-commerce sector and since these are applicable all over India,
there should be no complication regarding the inter-state movement of goods
anymore.

Removal of Cascading effect of tax: GST is a comprehensive indirect tax that

was designed to bring the indirect taxation under one umbrella. More importantly,
it is going to eliminate the cascading effect of tax that was evident earlier.
Cascading tax effect can be best described as ‘Tax on Tax’. Let us take this
example to understand what Tax on Tax is:

For Example: Suppose a manufacturer sells machinery worth Rs. 3000 to a

distributor. The invoice would reflect:

Price of goods = 3000/- Excise duty @ 12.5% = 375/-Subtotal = 3375/-VAT @

14.5% on subtotal= 490/-The total payable amount by the customer = 3865/-
Whereas, GST will be only charged on the selling price and the subsequent parts
of SGST and CGST would add to the value of goods as per their percentage. The
invoice under GST scenario would reflect: Price of goods = 3000/-CGST @ 9% =
270/-SGST @ 9% = 270/-The total payable amount by the customer = 3540/-The
total difference of the two taxes = 3865-3540= 325/-

Improved efficiency of logistics: Earlier, the logistics industry in India had to

maintain multiple warehouses across states to avoid the current CST and state
entry taxes on inter-state movement. These warehouses were forced to operate

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below their capacity; giving room to increased operating costs. Reduction in
unnecessary logistics costs is already increasing profits for businesses involved in
the supply of goods through transportation.

LIMITATIONS OF GST

Increased costs due to software purchase: Businesses have to either update their
existing accounting or ERP software to GST-compliant one or buy GST software
so that they can keep their business going. But both the options lead to increased
cost of software purchase and training of employees for an efficient utilization of
the new billing software.

Increase in operational costs: Most of the small business in India do not pay
employ tax professional and have traditional professional preferred to pay taxes
and file returns on their own to save cost. However they will require professional
assistance to be GST-complaint. This will gradually increase costs for small
businesses as they will have to bear the additional cost of hiring experts. Also,
businesses will need to train their employees in GST compliance, further
increasing their overhead expenses.

Policy change during the middle of the financial year: As GST was
implemented on the 1st of July 2017, businesses followed the old tax structure for
the first 3 months (April, May, and June), and GST for the rest of the financial
year. Businesses may find it hard to get adjusted to the new tax regime, and some
of them are running these tax systems parallelly, resulting in confusion and
compliance issues.

GST is an online taxation system: GST is paid on the return filing and payments
all have to be done in online. Many small business are not computerized and they
don’t have enough resources because in small cities across India face a huge
technological problems.

SMEs (Small and Medium Enterprises) will have a higher tax burden: In
Smaller businesses, especially in the manufacturing sector will face difficulties

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 under GST. Earlier, only businesses whose turnover exceeded Rs 1.5 crore had to
pay excise duty. But now any business whose turnover exceeds Rs 20 lakh will
have to pay GST.

COMPONENTS OF GST

India is currently going through major reforms in its overall economic

sectors. The growth trajectory of India is so high that it is poised to become the third-
largest economy of the world by 2030. Government is taking significant initiatives to
boost the overall economic growth of the country. Indian economy is highly diverse
due to numerous industries operating in different sectors having the different location,
supply chain and target consumers. There are four components used for levying and
collecting GST.

Central Goods & Service Tax (CGST) taxes are imposed by central government on
intra-state supplies. It includes Central Sales Tax, Central Excise Duty, Services Tax,
Excise Duty under Medical & Toiletries Preparation Act, Additional Excise Duties
Countervailing Duty (CVD), Additional Custom Duty and other centralized taxations.
The revenue collected under CGST belongs to the central government.

State Goods & Services Tax (SGST) taxes are imposed by state government on
intra-state supplies. It includes State Sales Tax, Luxury Tax, Entertainment Tax, and
Levies on Lottery, Entry Tax, taxes on lottery, betting’s & gambling etc... are
subsumed under GST. Revenue collected under SGST belongs to the State
Government.

Integrated Goods & Services Tax (IGST) taxes are levied and collected by both
central & state government. IGST stands for Integrated Goods and Services Tax
which is charged on the supply of commodities and services from one state to another

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state Supplier. Central government retains 50% and remaining 50 % was collected
from the state government. For example, if the supply of goods and services occurs
between Gujarat and Maharashtra, IGST will be applicable. Under Article 269A of
the Indian Constitution, the inter-state trade and commerce activities that involve the
movement of commodities and services shall be levied with an integrated tax (IGST)
under the GST regime.

Union Territory Goods & Services Tax (UTGST) taxes are imposed and collected
by central government on intra-union territory. The union territories in India are
accounted under a specialized taxation called Union Territory Goods and Services
Tax. GST is applicable for Delhi (India’s Capital Territory), Chandigarh, Dadra &
Nagar Haveli, Andaman & Nicobar Islands, Daman & Diu, Lakshadweep and
Pondicherry are the union territories in India. UTGST will account for all the
taxations under these union territories in India. The parliament is looking forward to
implement a separate act to impose and supervise GST in Union Territories under the
name of UTGST act

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 NEED FOR THE STUDY

This study will help us to examine the impact of GST after its implementation, it will
show the gap between present indirect taxes and GST, & also the study will show
benefits and challenges which GST may face after implementation.

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 SCOPE OF THE STUDY

Present study is undertaken mainly to analysis the GST on Mobile Phones

towards 12 % GST rate. The study is confine to know the GST Impact on Mobile
Phones Manufacturers in INDIA & how new tax regime is bad for online and good
for offline players. There is a big demand for the manufacturing and supply of Mobile
Phones products at the global level.

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 OBJECTIVES OF THE STUDY

 To know about the GST & its components.

 To determine how GST is a “GAME CHANGER” for Indian Business.
 To know about the provisions of GST.
 To know how the company’s filing its returns in online procedure.
 To enquire the impact of GST after its implementation.
 To find out difference between present indirect taxes and GST.
 To identify benefits and challenges of GST after implementation.

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 METHODOLOGY OF THE STUDY

The data obtained for the study may be divided into two groups.

1. Primary Data
2. Secondary Data

PRIMARY DATA:-

Primary data has been collected by interviewing various people of chartered

accounts who generally give the details of GST process and also know about the
software in the companies.

The primary data has been collected from the personal observation and personal
interviews.

SECONDARY DATA:-

The secondary data comprises of information obtained from the Text books,
Internet, GST helpline app and different publication from professional institution in
study one fourth of the total information obtained from primary data and rest from
secondary data.

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 LIMITATIONS OF THE STUDY

 The study is conducted in a short period. During this limited period, the
study may not be clear in all aspects.

 Most of the information has kept confidential and as such is not passed on,
as part of the policy of the company.

 To the extent that the executives could spare their time, they gave us the
information by way of small discussions for the purpose of data collection.

 The study is limited only to some aspects of GST.

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 GST IMPACT ON MOBILE PHONES
MANUFACTURERS IN INDIA

The goods and services tax has finally ended up the online party for the
Smartphone customers. The gap between the online and retail prices of the
Smartphone is now reduced to a considerable level with still lesser price marks in
comparison. The gap is for the reason that rates of GST of Smartphone’s are equally
distributed with 12 percent in comparison with previously followed VAT rates
through the states. This difference has been taken undue advantage from the online
retailers across the country with Smartphone’s sourced from the lowered VAT states
to the higher VAT states for making profits.

But, the German research company GfK stated that there will be no impact on the
sales of Smartphone’s due to GST. The company figured out an approximate 14
percent increase in the demand for a year wise basis.

The research papers said that “GfK expects the recently announced Goods and
Services Tax (GST) will have no impact on Smartphone demand in the country. GfK
forecasts overall Smartphone demand in the region will total 234 million units in
2017, an increase of 11 percent year-on-year.”

It is sorted out that the latest technology has been flashing on its highest potential and
is the reason for removing the barriers of any price hikes. The Smartphone
manufacturers are making their gadgets top of the line to out beat any price
differentiation or surge in the market.

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 Mobile manufacturers including components makers, contractors, and other giant
producers are under the middle way towards a staggering investment of 1 thousand
crore into the Indian Smartphone industry due to the goods and service tax regime as
it will make a one nation one market scenario for all the industries.

The overall impact will be around 40 percent reduction of components and inventory
to reduce the impact of GST on the industry. The government has decided to levy 12
percent on the Smartphone’s which will take the rates 4 to 5 percent expensive on the
current rates. This has given the reason to hold back all the operations in the
Smartphone sector. Ajay Kumar, additional secretary of electronics and IT ministry
mentioned that “Make in India is a very important program and has gathered a lot of
momentum in 2.5 years. Our endeavour is to make sure that momentum is not lost.”

E-Commerce companies will be able to freely deliver goods across the country and
certain complaints of specific states not falling into the delivery zone would be
eliminated. The rise in the cost of the tax to a dual concept of 12% & 18% would
increase administration costs for E-Commerce players, therefore, it has been decided
by the GST Council that feature phones will be retailed at 12 percent while the
Smartphone’s have been kept at 18 percent. The online sales have been slowed down
for the last 2-3 months due to the additional taxes levied by certain states. However, it
is still a matter of concern for many E-commerce players.

With the growing competition from the Chinese manufacturers like Huawei, Oppo,
etc. it is going to be interesting to see how things follow-up in coming months. Also,
note that major manufacturers including Apple have promised to make their
Smartphone’s in India. So if that happens successfully then, all this can cut down the
cost a lot as well. With “one rate”, the prices of mobile phones will decline. For
example, Apple which was shipping iPhone 6 32GB online prior to the GST
implementation, at INR 26000 is now bundling the same package at INR 27300 with
no changes in the retail prices.

The government is also seeking to apply the customs duty over the imported mobile
phones in order to boost and encourage the local manufacturers to compete in the
market. The application of customs duty is being targeted at the foreign companies

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exporting towards India, valuing down the local manufacturers and to also evoke
Apple to start producing in India.

While India has exempted various electronic products from countervailing duties
being imposed on the side bracket of central excise duty but the exemption grants
cannot survive long in the GST era ending the exemption chain.

On the other hand, deduction of tax at source for every product purchased from sellers
could compel e-commerce companies to do away with sales, discounts, and special
offers. In short, you may no longer get the cost-benefit from e-commerce companies,
but you can expect faster shipping and lower delivery prices.

Experts commented that with the arrival of GST, states having lowered VAT earlier
will be in first to hike the prices as the GST applied is 12 percent. But it will also
contradict the point of easy shipments and movement of goods across the nation
which assumes of making the smartphones cheaper after GST.

GST impact on mobile phones: How new tax regime is bad for online and good
for offline players
The roll-out of the goods and services tax seems to have taken a toll on sales
of mobile phones by online platforms as they no more enjoy any pricing arbitrage
over brick-and-mortar retail stores with the end of differential tax rates (VAT) across
states.
The roll-out of the goods and services tax seems to have taken a toll on
sales of mobile phones by online platforms as they no more enjoy any pricing
arbitrage over brick-and-mortar retail stores with the end of differential tax rates
(VAT) across states. A quick check by FE showed that the price of a Samsung J5
Prime 32 GB phone in an offline retail stores currently in Delhi at Rs 12,800 is lower
than the price available on Flipkart or Amazon at around Rs 13,490. However, before
July the online price was around Rs 12,490. Similarly, an iPhone 6 32 GB is now
available in stores for around Rs 27,500 while e-commerce portals are selling it at
around Rs 27,900 against a pre-GST price of Rs 26,000.

Shubham Anand, head of retail and consumer packaged goods at

RedSeer Consulting, told FE that online firms are expected to witness a fall of 20-
25% in their total gross merchandise value (GMV) in July compared with May or

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June due to a decline in sales of mobile phones on their platforms. According to
RedSeer, the total GMV of the e-tail industry in May stood at $16-18 billion. Of this,
around 52% came from the sale of mobile phones.

Before July 1, mobile phones sold on e-commerce platforms were generally 5-15%
cheaper than those retailed in brick-and-mortar stores. This was because VAT rates
varied across states from a low of 5% in Karnataka and Tamil Nadu to a high of 14%
in states like Delhi, Uttar Pradesh, Rajasthan and Gujarat. Taking advantage of this
variation, online players used to source phones from states having lower VAT like
Karnataka and Tamil Nadu and supply to consumers in Delhi and other states where
the VAT was higher.

The largest sellers on Amazon India and Flipkart — Cloudtail and WS Retail — have
warehouses in states like Karnataka and Tamil Nadu. According to Bipin Sapra,
indirect tax partner at EY, the tax arbitrage for e-commerce companies against offline
stores has gone away with the implementation of GST. What is still working in favour
of online platforms is that certain popular brands like Xiaomiand Motorola sell their
brands only through Flipkart and Amazon.

GST Impact on Xiaomi Mobile Accessories

After the implementation of GST across the nation, it is found that selected
accessories of Xiaomi are now cheaper by some margin. The Chinese telecom has
stated that the prices of accessories have been slashed in the wake of recent GST
council meeting. The Xiaomi announced the price reduction in its community forum
mentioning GST council decision reason behind the price cut on accessories.

Accessories like power bank of 10000mAh worth RS 1,199 is now available at 1,099
while the MI Power Bank Pro 10000mAh is now available at Rs 1,499 down from Rs
1,599. There is some other price slashing in the products lines up of mobile covers.
Overall, it is learned that the GST has made simple for some of the handset and
electronic.

GST and mobile phone bills: Impact on post-paid and pre-paid users 

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 From July 1, all the mobile phone users will have to shell out more for their
mobile phone usage. The Goods and Services Tax (GST) Council has put telecom
services under the 18 per cent slab. Currently, telecom services are taxed at 15 per
cent. The 3 per cent increase will reflect in the bills of the current postpaid users. For
the prepaid users, there will be deduction in the talk time.
 
Postpaid Users

Under the current tax regime, if your current postpaid usage is Rs 500,
your total bill amount will be Rs 575.Under the new GST regime, if your current
postpaid bill is Rs 500, you will have to shell out Rs 590. It is Rs 15 more than what
you are currently paying.

However, there are reports that telecom companies might absorb the 3% increase in
tax rate on their full talk-time prepaid products as well as on select data sachet prepaid
vouchers amid heightened competition following Reliance Jio’s entry.

Prepaid users

Effective talk time for prepaid customers will go down. If you recharge your phone
with Rs 100 prepaid voucher, you get talktime worth Rs 85. Post GST, if you recharge
your phone with Rs 100, your talktime will marginally dip to Rs 82. A total deduction
of Rs 3. 

Already troubled by the disruption inflicted by the newbie Reliance Jio, the telecom
industry expected some relief from the GST Council in the form of lower tax slab for
telecom services. The industry lobbyists had argued that telecommunications being an
essential service should attract lower tax rate. But the council decided to raise the tax
rate.

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 THEORETICAL FRAMEWORK OF GST & TALLY

GST is a comprehensive value added tax on goods and services. It is collected on

value added at each stage of sale and purchase in the supply chain without State
boundaries. “The success of GST depends on proper administration. Much will
depend on its simplicity and efficient implementation, which are even more
difficult in a disparate federal setup”.1

ORIGIN

Goods and Services Tax also known as the Value Added Tax (VAT) or
Harmonized Sales Tax (HST) was first devised by a German economist during
the 18th century. He envisioned a sales tax on goods that did not affect the cost of
manufacture or distribution but was collected on the final price charged to the
consumer. The numbers of transactions are immaterial and the tax is at a fixed
percentage of the final price. The tax was finally adopted by France in 1954.
Maurice Lauré, Joint Director of the French Tax Authority, the Direction
générale des impôts, was the first to introduce VAT on April 10, 1954. Initially
directed at large businesses, it was extended over time to include all business
sectors.

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BACKGROUND

The Indian indirect tax regime is characterized by multiple levies, such as excise
duty, Customs duty, VAT, Central sales tax, service tax, and including local
levies, such as octroi and entry tax. Historically, none of these taxes were
creditable against one another, barring a part of the Customs duty and excise;
over the last few years, service tax has also been brought into the creditable
basket. The excise duties, Customs duties and service tax belong to one basket of
creditable taxes, VAT, Central sales tax and octroi belong to another basket of
entirely non-creditable taxes.

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The Central Government to levy certain taxes, and the State Government to levy
certain other taxes-this distribution of power was clear and unequivocal. As a result,
over the last six decades, both the Central and the State Governments have steadfastly
worked at refining and expanding their respective tax regimes, but as the saying goes,
the twain never met. In fact, until the introduction of VAT recently, even a single
regime such as sales tax often entailed multiple levies, since sales tax levied across
different States was largely non-creditable

GST – THE ROAD MAP AND THE CHALLENGES

The concept of the desirable and aspiration form of GST for India has been, and
remains, evolving. Initially, GST was intended as a fully-integrated system
encompassing within itself all of the existing indirect taxes. Clearly, this is no
mean task and apart from the political and economic will, it also requires some
significant changes in the Constitutional distribution of power.

Global scenario and GST

More than 150 countries have introduced GST/National VAT in some form. It
has been a part of the tax system in Europe for the past 50 years and is the
preferred form of the indirect tax in the Asia-Pacific region. There are different
models of GST currently in force, each with its own peculiarities. While country
such as Singapore virtually taxes everything at a single rate, some countries have
more than one rate (a zero rate, certain exemptions and higher and lower rates).
In some countries it is recoverable only on goods used in the production process
and specified service. The standard GST rates in most of the countries ranges
between 15-20% which is shown in the Table:. In Scandinavian countries (north
Europe) where social security coverage is higher, it ranges between 22-25
percent.

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 Global GST rates

Country Standard Country Standard Country Standard

Rate Rate Rate

Austria 20 Greece 18 Norway 25

Belgium 21 Argentina 21 Denmark 25

Portugal 19 Chile 19 Sweden 25

Ireland 21 Spain 16 Finland 22

Poland 22 Romania 19 Italy 20

France 19.6 Luxembourg 15 Switzerland 7.6

Germany 16 Netherlands 19 U.K 17.5

Australia 10 Columbia 16 Maldova 20

Barbados 15 Japan 5 Indonesia 10

Canada 7 Mexico 15 China 16

Botswana 10 Latvia 18 South Africa 14

Zambia 17.5

Source: http://en.wikipedia.org/wiki/Tax_rates_around_the_world

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In India, the standard rate of excise duty is 16% on manufacture’s sale price. In
addition there is a State VAT at 4% and 12.5, at a lower end with 4% VAT it works
out to 13.5%. It is feasible to fix tax neutral GST rate of 20% (less if existing duty
exemptions are reduced) covering both Central and State’s revenue share. “They
(European countries) have kept the standard rate at 15 per cent and there is a band
which ranges between 15 per cent and 25 per cent. So, there is flexibility, which we
were also demanding. Also, there is a reduced rate of five per cent. They also have

GST tax rates:

There will be five types of rates that will collect under this kind. They are as follows:

Standard tax rates: Most of the taxes come under this category.

Limited tax rates: Tax is been collected for the medical & other major basic
goods in this category.

Special tax rates: Special tax is been collected on the goods & items like
tobacco, Liquor, jewellery etc; under this category.

Redemption rates: This kind of tax is applicable to the backward areas & there
is redemption of taxes for goods under this system & where GST & credit facility
is not applicable. All these kinds of procedures will be banned if GST exists.

Zero rate: Though tax is not applicable to the goods that are imported there is
the facility of refund under this system.

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Opposition for implementation

Opposition from States: At present, the States are opposing the proposed GST.
Arriving at an acceptable GST rate has been bogged down by differences among
the States and also between States and other entities like the TFC task force on
GST architecture. Thumb rule is that larger the number of taxes subsumed in
GST, lower will be the revenue neutral rate. The States have been reluctant to
subsume all taxes into GST as it would mean loss of power to unilaterally change
some taxes.

 Two drafts of the proposed new tax regime failed to find acceptability by
States and the third has been referred to empowered committee of State
finance ministers.
 Improper Structure: There is much debate on the likely aggregate rate of
the GST. It is also possible that several other design elements of the GST
can undergo changes.
 GST requires constitutional amendments currently the Centre cannot
impose tax beyond manufacturing and States cannot levy service tax.
Unlike Direct Tax Code (DTC), GST is a transaction-based tax and hence
can be introduced any time.

The Goods and Services Tax (GST) also known as the National VAT (Value
Added Tax) has been introduced in more than 150 countries. Most of the
countries have a unified GST system. Brazil and Canada follow a dual system
where GST is levied by both the Union and the State governments. France was
the first country to introduce GST system in 1954. The standard GST rate in most
countries ranges between 15-20%. Most of the sectors are taxed except for few
exemptions. The United States of America does not have a national level VAT.

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 GOODS AND SERVICE TAX—AN GLOBAL EXPERIENCE

AUSTRALIA

The GST (Goods and Services Tax) is a value added tax on the supply of goods and
services in Australia, including items that are imported. In most cases, GST does not
apply to exports of goods or services, or other items consumed outside Australia.

It was introduced by the Howard Government on 1st July 2000, replacing the
previous Federal wholesale sales tax system and designed to phase out a number of
various State and Territory Government taxes, duties and levies such as banking
taxes and stamp duty. The basic premise of the new tax was to broaden the tax base,
which was heavily biased toward the provision of services. Prior to the GST,
Australia operated a Wholesale Sales Tax (WST) which imposed a tax on wholesales
of goods. The WST was implemented in the 30's when Australia had an economy
dominated by goods. Over the years however, Australia's economy evolved to be
more services based, and the GST served to strip the unfair tax advantage that
service providing businesses had over suppliers of goods.

The GST is levied at a flat rate of 10% on most goods and services, apart from GST
exempt items, and input taxed goods and services. GST is administered by the Tax
Office on behalf of the Australian Government, and is appropriated to the States and
territories.

CANADA

The Canadian Goods and Services Tax (GST) is a multi-level value-added tax
introduced in Canada on January 1, 1991, by Prime Minister Brian Mulroney and
finance minister Michael Wilson. The GST replaced a hidden 13.5% Manufacturers'
Sales Tax (MST).

26
Harmonised Sales Tax: In Canada, the Harmonized Sales Tax combines the Goods
and Services Tax (GST) and Provincial Sales Tax (PST) into a single sales tax. In
1997, the provinces of Nova Scotia, New Brunswick and Newfoundland and
Labrador and the Government of Canada merged their respective sales taxes into the
Harmonized Sales Tax (HST). In those provinces, the current HST rate is 13%. HST
is administered by the federal government, with revenues divided among
participating governments according to a formula. All other provinces continue to
impose a separate sales tax at the retail level only, with the exception of Alberta,
which does not have a provincial sales tax. Ontario proposed in its 2009 Budget to
harmonize its 8% retail sales tax with the GST effective July 1, 2010. In July, 2009,
the province of British Columbia announced plans to also merge the PST and GST
effective July 1, 2010. In PEI and Quebec, the provincial taxes include the GST in
their base. The three territories of Canada (Yukon, Northwest Territories and
Nunavut) do not have territorial sales taxes. The government of Quebec administers
both the federal GST and the provincial Quebec Sales Tax (QST). It is the only
province to administer the federal tax. The HST is composed of the GST and the 8%
provincial tax and applies to the same base of goods and services that are taxable
under GST. HST follows the same general rules as GST. GST/HST registrants
continue to collect GST on taxable supplies (other than zero-rated

BRAZIL

The Tax on Circulation of Goods and Services (TCMS) is the main State tax, and is
due on operations involving circulation of goods (including manufacturing,
marketing, and imports) and on interstate and inter-municipal transport and
communications services. ICMS is non-cumulative, and thus tax due may be offset
by credits arising from the purchase of raw materials, intermediary products, and
packaging materials which allows the taxpayer to record input tax credits from the
ICMS paid on the purchase of raw materials, intermediary products, packaging
materials. Tax credits for goods destined to become fixed assets may be accepted,
subject to certain restrictions. Rates applied to interState commerce are 7% or 12%,
depending on the destination. Export goods are exempted from ICMS.

27
NEW ZEALAND

Goods and Services Tax (GST) is a Value Added Tax introduced in New Zealand on October
1, 1986 at 10%, and later increased to 12.5% on June 30, 1989. End users pay this tax on all
liable goods and services directly, in that it is included in the purchase price of goods and
services. GST registered organisations only pay GST on the difference between GST-liable
sales and GST-liable supplies (i.e. pay GST on the difference between what they sell and
what they buy: income less expenditure). This s accomplished by reconciling GST received
(through sales) and GST paid (through purchases) at regular periods (typically every 2
months, with some qualifying companies opting for 1 month or 6 month periods), then
either paying the difference to Inland Revenue Department (IRD) if the GST collected on
sales is higher, or receiving are funded from IRD if the GST paid on purchases is higher.
Unlike most similar taxation regimes, there are few exemptions - all types of food are
taxed at the same rate, for example. Exceptions that are present include rents collected on
residential rental properties, donations and financial services. The headline price must
always be GST-inclusive in advertising and stores. The only exceptions are for businesses
which claim a mainly wholesale client-base. Otherwise, displaying a prominent GST-
exclusive price (i.e. larger and more obvious than the GST-inclusive price), is illegal.

SINGAPORE

Goods and Services Tax was introduced in Singapore on April 1, 1994, at 3%, but later
increased to 4% on 1 January 2003, and 5% on 1 January 2004. It was raised again to 7%
on 1 July 2007. Singapore’s GST is a broad-based consumption tax levied on import of
goods, as well as nearly all supplies of goods and services. The only exemptions are for
the sales and leases of residential properties and most financial services. Export of goods
and international services are zero-rated. With an ageing population, Singapore’s income
tax base is expected to decline. With a broad-based GST, the taxation burden will be
more evenly spread among the population. Thus, the GST was introduced as part of a
larger exercise to put in place a tax structure to see the country into the future. In
Singapore, the tax is broad based which include all essential goods like water, electricity,
rice, etc. Hence, a low income worker who would not pay income taxes would have to
pay GST on his daily living expenses. This can be a burden especially during times of
high inflation when the 7% tax is paid on the increasing price of daily essentials. GST is
a self-assessed tax. Businesses are required to continually assess the need to be
registered for GST.

28
EUROPEAN UNION

The European Union Value Added Tax ("EU VAT") is a value added tax encompassing
member States in the European Union Value Added Tax Area. Joining in this is
compulsory for member States of the European Union. As a consumption tax, the EU
VAT taxes the consumption of goods and services in the EU VAT area. The EU
VAT's key issue asks where the supply and consumption occurs thereby determining
which member State will collect the VAT and what VAT rate will be charged. Each
Member State's national VAT legislation must comply with the provisions of EU
VAT law as set out in Directive 2006/112/EC. This Directive sets out the basic
framework for EU VAT, but does allows Member States some degree of flexibility
in implementation of VAT legislation. For example different rates of VAT are
allowed in different EU member States. However Directive 2006/112 requires
Member States to have a minimum standard rate of VAT of 15% and one or two
reduced rates not to be below 5%. Some Member States have a 0% VAT rate on
certain supplies- these Member States would have agreed this as part of their EU
Accession Treaty, (for example, newspapers and certain magazines in Belgium). The
current maximum rate in operation in the EU is 25%, though member States are free
to set higher rates.

DENMARK

In Denmark, VAT is generally applied at one rate, and with few exceptions is not split
into two or more rates as in other countries (e.g. Germany), where reduced rates apply to
essential goods such as e.g., foodstuffs. The current standard rate of VAT in Denmark is
25%. That makes Denmark one of the countries with the highest value added tax,
alongside Norway and Sweden. A number of services are not taxable, for instance public
transportation of private persons, health care services, publishing newspapers, rent of
premises (the lessor can, though, voluntarily register as VAT payer, except for
residential premises) and travel agency operations.

FINLAND

In Finland, the standard rate of VAT is 22%. In addition, two reduced rates are in use:
17%, which is applied on food and animal feed, and 8%, which is applied on passenger
transportation services, cinema performances, physical exercise services, books, and
pharmaceuticals, entrance fees to commercial cultural and entertainment events and
facilities. Supplies of some goods and services are exempt under the conditions defined

29
in the Finnish VAT Act: hospital and medical care; social welfare services; educational,
financial and insurance services; lotteries and money games; transactions concerning
bank notes and coins used as legal tender; real property including building land; certain
transactions carried out by blind persons and interpretation services for deaf persons.

NORWAY

In Norway, VAT is split into three levels: 25% is the general VAT, 14% for foods
and restaurant take-out (food eaten in a restaurant has 25%), 8% for person transport,
movie tickets, and hotel stays. Books and newspapers are free of VAT, while
magazines and periodicals with a less than 80% subscription rate are taxed.

ICELAND

In Iceland, VAT is split into two levels: 24.5% for most goods and services but 7%
for certain goods and services. The 7% level is applied for hotel and guesthouse
stays, license fees for radio stations, newspapers and magazines, books; hot water,
electricity and oil for heating houses, food for human consumption (but not alcoholic
beverages), access to toll roadsand music.

SWEDEN
In Sweden, VAT is split into three levels: 25% for most goods and services including
restaurants bills, 12% for foods (incl. bring home from restaurants) and hotel stays (but
breakfast at 25%) and 6% for printed matter, cultural services, and transport of private
persons. Some services are not taxable for example education of children and adults if
public utility, and health and dental care, but education is taxable at 25% in case of
courses for adults at a private school. Dance events (for the guests) have 25%, concerts
and stage shows have 6%, and some types of cultural events have 0%.

30
 GST IN INDIA

The reform process of India's indirect tax regime was started in 1986 by Vishwanath
Pratap Singh, Finance Minister in Rajiv Gandhi’s government, with the introduction
of the Modified Value Added Tax (MODVAT). Subsequently, Prime Minister P V
Narasimha Rao and his Finance Minister Manmohan Singh, initiated early discussions
on a Value Added Tax (VAT) at the state level. A single common "Goods and
Services Tax (GST)" was proposed and given a go-ahead in 1999 during a meeting
between the Prime Minister Atal Bihari Vajpayee and his economic advisory panel,
which included three former RBI governors IG Patel, Bimal Jalan and C Rangarajan.
Vajpayee set up a committee headed by the Finance Minister of West Bengal, Asim
Dasgupta to design a GST model.The Ravi Dasgupta committee was also tasked with
putting in place the back-end technology and logistics (later came to be known as the
GST Network, or GSTN, in 2017) for rolling out a uniform taxation regime in the
country. In 2002, the Vajpayee government formed a task force under Vijay Kelkar to
recommend tax reforms. In 2005, the Kelkar committee recommended rolling out
GST as suggested by the 12th Finance Commission.

After the defeat of the BJP-ledNDA government in the 2004 Lok Sabha election and

the election of a Congress-led UPA government, the new Finance Minister P
Chidambaram in February 2006 continued work on the same and proposed a GST
rollout by 1 April 2010. However, in 2010, with the Trinamool
Congress routing CPI(M) out of power in West Bengal, Asim Dasgupta resigned as
the head of the GST committee. Dasgupta admitted in an interview that 80% of the
task had been done.

In the 2014 Lok Sabha election, the Bharatiya Janata Party-led NDA government was

elected into power, this time under the leadership of Narendra Modi. With the
consequential dissolution of the 15th Lok Sabha, the GST Bill – approved by the
standing committee for reintroduction – lapsed. Seven months after the formation of
the Modi government, the new Finance Minister Arun Jaitley introduced the GST Bill
in the Lok Sabha, where the BJP had a majority. In February 2015, Jaitley set another
deadline of 1 April 2017 to implement GST. In May 2016, the Lok Sabha passed the
Constitution Amendment Bill, paving way for GST. However, the Opposition, led by
the Congress, demanded that the GST Bill be again sent back to the Select Committee

31
of the Rajya Sabha due to disagreements on several statements in the Bill relating to
taxation. Finally in August 2016, the Amendment Bill was passed. Over the next 15 to
20 days, 18 states ratified the Constitution amendment Bill and the President Pranab
Mukherjee gave his assent to it.

A 22-members selected committee was formed to look into the proposed GST laws.
After GST Council approved the Central Goods and Services Tax Bill 2017 (The
CGST Bill), the Integrated Goods and Services Tax Bill 2017 (The IGST Bill), the
Union Territory Goods and Services Tax Bill 2017 (The UTGST Bill), the Goods and
Services Tax (Compensation to the States) Bill 2017 (The Compensation Bill), these
Bills were passed by the Lok Sabha on 29th March, 2017. The Rajya Sabha passed
these Bills on 6th April, 2017 and were then enacted as Acts on 12th April, 2017.
Thereafter, State Legislatures of different States have passed respective State Goods
and Services Tax Bills. After the enactment of various GST laws, Goods and Services
Tax was launched all over India with effect from 01 July 2017. the Jammu and
Kashmir state legislature passed its GST act on 7 July 2017, thereby ensuring that the
entire nation is brought under an unified indirect taxation system. There was to be no
GST on the sale and purchase of securities. That continues to be governed
by Securities Transaction Tax (STT)

Launch

The Goods and Services Tax was launched at midnight on 1 July 2017 by the then
President of India, Pranab Mukherjee, and the Prime Minister of India Narendra
Modi. The launch was marked by a historic midnight (30 June – 1 July) session of
both the houses of parliament convened at the Central Hall of the Parliament. Though
the session was attended by high-profile guests from the business and the
entertainment industry including Ratan Tata, it was boycotted by the opposition due
to the predicted problems that it was bound to lead to for the middle and lower class
Indians.[11][12] It is one of the few midnight sessions that have been held by the
parliament - the others being the declaration of India's independence on 15 August
1947, and the silver and golden jubilees of that occasion.] After its launch, the GST
rates have been modified multiple times, the latest being on 18 January 2018, where a
panel of federal and state finance ministers decided to revise GST rates on 29 goods
and 53 services.

32
 VAT VS GST

VAT means Value Added Tax. It is one of the tax imposed on sale of goods in India.
It was authorized by state government each state in India has separate VAT
regulations with different tax rates applicable for different products of business
dealers of accompanies or firms. This taxation system included several indirect taxes
along the supply chain, resulting into high tax rates paid from the pocket of the
ultimate consumer.Thus they collected VAT from consumers, filed VAT returns and
deposited tax in designated bank accounts to the state government.

GST stands for Goods & Services Tax. It is an indirect tax which was introduced in
India on 1st July 2017 and was applicable throughout India which was replaced the
multiple taxes impose by the Central Government and the State Governments.

Basis of Difference VAT GST

Meaning VAT means Value Added Tax. It is one GST stands for Goods & Services
of the tax imposed on sale of goods in Tax. It is an indirect tax
India. It was authorized by state was replaced the multiple taxes
government impose by the Central Government
and the State Governments.

Taxable event In VAT tax levied On Sale of goods In GST tax levied On every supply
of goods or service.

Competent Authority It is levied and collected by State Intra State Supplies are levied by
Government on Inter-State Sales State & Central Government Equally

Revenue Earnings VAT gets earnings revenue from state Consuming & Distribution of goods
governments on selling goods. & services in state level & also
central level

 Return Filing Must file return by 20th of succeeding Must file return for sales by 10th,
month purchase by 15th and payment by
20th of succeeding month

Rate of Tax Different state governments set different Different states of Taxes or sets of
rates of tax on different products. central government on
recommendations of GST council.
All goods & Services has same rate
of tax across the country (Uniform).

33
 TAXES SUBSUMED UNDER GST

In India there are number of Indirect taxes. The government of India is bring
GST with effect from 1st JULY 2017.It intends to reduce some of the indirect taxes
already existing in India .These taxes are related both central and state level. All that
indirect some of the taxes are subsumed under GST.It was shown in a figure as under.

34
 GST EXEMPTIONS

 All public services of government including Civil Administration, Health

Service & formal educational services provided by government schools,
colleges & defense, military police, intelligence & government departments.
However public services will not include railways, post office and other
commercial departments, public sector enterprises, insurances, banks, health &
educational services.
 Any service transaction relating to employer and employee either as service
providers is exempted from GST.
 Any unprocessed food articles which is covered under the public distribution
system should be exempt regardless of the outlet through which it is sold.
 Educational services provided by Non-Governmental schools & colleges.
 Health services provided by Non-Governmental agencies.
 Small Dealers or large dealers with annual aggregate turnover of goods &
services below 20 lakhs the GST were not applicable. These dealers in such
high value of items between 1 million to 4 million may be allowed to operate
for a compounded levy of 1% of each from CGST & SGST.
 The precious ornaments by gold, silver, platinum, precious stones are high
certain value of goods which comprising for certain part of GST exemption.
 Bank and government services like postal, insurance, transport, agency
,tollgate charges, recognized sports bodies etc…….are exempt from GST.

35
36
 GST REGISTRATION

GST is the biggest tax reform in India, tremendously improving ease of

doing business and increasing the taxpayer base in India by bringing in millions of
small businesses in India. In the Pre GST tax structure the business was register with
VAT. Under this VAT was associated with a TIN (Tax Identification Number) and
service provider add service tax registration number. Now all the businesses will be
unified under the “One-Tax” i.e. GST. This leads to unified tax registration of all
businesses.

The registration with GST law means a business is acknowledged by the

government of India, as a supplier of goods & services. Only registered business are
allowed to claim input tax credit (ITC).The registration number was allocated with 15
digits like PAN based registration number. This is called the GST identification
number (GSTIN)

Let us know understand the structure of GSTIN

State PAN Entity BLANK Check

Code Code Digit
  2 3 4 5 6 7 8 9 10 11 12 13 14 15

                             

. As per the GST Council, entities in special category states with an

annual turnover of Rs.10 lakhs and above would be required to register under GST.
All other entities in rest of India would be required to register for GST if annual
turnover exceeds Rs.20 lakhs.

Special categories states like Arunachal Pradesh, Assam, Manipur, Meghalaya,

Mizoram, Nagaland, Sikkim, Tripura & Himachal Pradesh

37
DOCUMENTS/DETAILS REQUIRED TO REGISTER UNDER GST

38
39
 TALLY

Tally is powerful accounting software, which is driven by a technology called

concurrent multi-lingual accelerated technology engine. It is easy to use software and
is designed to simply complex day to day activities associated in an enterprise. Tally
provides comprehensive solution around accounting principles, inventory and data
integrity. Tally also has feature encompassing global business. Tally software comes
with easy to use interface thus making it operationally simple.

Tally accounting software provides a solution around inventory management, stock

management, invoicing, purchase order management, discounting, stock valuation
methodology, etc.

Tally accounting software also comes with drill down options, which can track every
detail of transaction. It helps in maintaining simple classification of accounts, general
ledger, accounts receivable and payable, bank reconciliation, etc.

The technology employed by tally makes data reliable and secure. Tally software
supports all the major types of file transfer protocols. This helps in connecting files
across multiple office locations.

Tally accounting software is capable of undertaking financial analysis and financial

management. It provides information around receivables turnover, cash flow
statement, activity consolidation and even branch accounting.

Tally accounting software is east to set up and simple to use. A single connection can
support multiple users. It can be easily used in conjunction with the Internet making
possible to publish global financial reports.

Tally accounting software can seamlessly connect with various Microsoft

applications.

40
ORIGIN

Tally Solutions, then known as Peutronics, was co-founded in 1986 by Shyam Sunder

Goenka and his son Bharat Goenka. Shyam Sundar Goenka was running a company
that supplied raw materials and machine parts to plants and textile mills in southern
and eastern India. Unable to find software that could manage his books of accounts,
he asked his son, Bharat Goenka, 23, a Maths graduateto create a software application
that would handle financial accounts for his business. The first version of the
accounting software was launched as an MS-DOS application. It had only basic
accounting functions, and was named Peutronics Financial Accountant.

FEATURES OF TALLY

Simplicity : Tally.ERP 9 is simple, easy to setup and use. It also allows easy
Keyboard operations. It requires basic knowledge of Accounts and English to use it.
Auditor's Edition : Tally.ERP 9 offers a special Auditors' Edition of Tally.ERP 9,
which provides auditing and compliance capabilities exclusively for Chartered
Accountants.

Support Centre : allows a user can directly post his support queries on the functional
and technical aspects of the Product.

Control Centre : works as an interface between the user and Tally.ERP 9 installed at
different sites and enables the user to centrally configure and administer Site/User
belonging to an account.

Remote Access : Tally.ERP 9 provides remote capabilities to access the data from
anywhere and anytime.
Tally.NET : is an enabling framework which establishes a connection through which
the remote user can access the Client's data without copying / transferring the data.

41
Online Help : The Tally.ERP 9 Online Help (Alt+H) provides instant assistance on
basic and advanced features or any other relevant topics of Tally.ERP 9.

Technical support : Timely support is available from our experts at the Tally Service
Partners.

Accounting without Codes : Tally.ERP 9 allows accounting with the regular names
(the way you spell them or use in normal parlance) without any account codes.

Real time processing : Immediate posting & updation of books of accounts as soon
as the transactions are entered, thereby facilitating instant statements & Reports. It
also faciliaties real-time multi-user environment.
Concurrent multi-lingual capability : Tally.ERP 9 offers you the exclusive
capability of maintaining your accounts in any Indian language, viewing them in
another language and printing them in yet another Indian language.

Scalability : Tally.ERP 9 suits to any style of business needs and eliminates the
necessity for a business to change its style of operation, in order to adapt to the
application.

Flexibility : Tally.ERP 9 provides flexiblity to generate instant reports for any given
period (month/year) or at any point of time besides providing the facility to toggle
between Accounting & Inventory reports of the same company or between
companies.

Power : Tally.ERP 9 allows the user to maintain multiple companies and with
unlimited levels of classification & grouping capabilities. It also allows drill
downfacility from report level to transaction level.

Speed : Tally.ERP 9 provides the capability to generate instant and accurate reports,
which assists the management to take timely and correct decisions for the overall
productivity and growth of the company.

42
 DIFFERENT VERSIONS OF TALLY

Over the years Tally released its various versions and each new version brought about
some major improvements. Let’s get acquainted with each version of Tally Software.
Below is a brief summary of how Tally evolved over each preceding versions to the
present Tally ERP 9 [read the infographic bottom up] and become the most popular
and widely used ERP software today globally for small businesses.

Tally 3.0:
Tally released this version in 1990 wherein it supported only Basic Accounting needs
of small businesses. This version required some predefined commands for the
software to be operated. This version only ran on Microsoft DOS and was unable to
run in Windows OS.
Tally 3.12: Established in 1991, this version of Tally focused on the basics of
accounting somewhat similar to version 3.0.

Tally 4:
1992 was the year for version 4 of Tally. Like its predecessors, it also supported DOS
based accounting as it could not be run on windows operating system

Tally 4.5:
Tally released this version in 1994 which ran on MS-DOS and focused on financial
accounting system. This version focused on accounting activities such as Ledgers
Classification Vouchers Entry. It offered simple financial reports and scrutiny of
debtors and creditors in the business.

Tally 5:
The year was 1996 when Tally released its upgraded version to Tally 4.5 working on
Windows operating system. This version comprised of inventory modules which
involved detailed inventory, structure invoicing and integrating accounting and
inventory records.
43
Tally 5.4:
This version released in 1996 was an enhanced module over its earlier 5.0 version. It
had the capacity of importing of data facility with the help of which it was able to
convert earlier data formats into the current data format.

Tally 6.3:
Released in 2001, this version was an extension of enterprise systems wherein it
interacted with other system through Open Data Base Connectivity.

Tally 7.2:
This version released a decade ago in 2005. It’s an integrated enterprise system which
provides various types of taxes such as TDS, VAT & TCS along with Service Tax
modules

Tally 8.1:
Released in 2006, this version is a software that supports multi languages. It supports
10 languages.

Tally 9:
Released in 2006, this is an enhanced version over the earlier 8.1. It supports 13
languages, including foreign ones and also includes Payroll, POS (Point of Sales).

Tally ERP 9:
This is the latest version released in 2009 which is a complete business solution. This
version offers different features such as remote access, much commanding data
security, tally.net and several more.

44
 BENEFITS OF TALLY ERP 9 SOFTWARE

Tally ERP 9 is desktop based accounting software with the help of which you can
have a quick look on accounts of your business, and your purchase or handle financial
management online from any part of the world. This software has financial and
inventory management, purchase and sales management, MIS, reporting features. It
has all features which you need to maintain your business. Even if you manage a large
group of companies, you can easily collect, Synchronise and calculate data with the
help of Tally ERP 9 software. Today it has more than 2,000,000 users all over the
world.

Reliable- Best benefit of Tally ERP 9 software is that it is very much user-friendly,
fast and trustworthy to accomplish its task. This software is so robust that even power
cut or shut down of the machine during functioning does not affect the data stored in
Tally folder.

Data safety- Tally keeps data safe and ensures that no changes to the data have been
done.

Easy to maintain- Tally software does not need much maintenance.

All in one- Tally is simple software that does most of the accounting related work of
your business.  In fact, most of the business organisations now prefer this software
because of its easy control.

Modules- Business owner can easily keep a record of sale and purchase to any
particular customer.

Internet access- one of the best advantages of tally is that you can use the internet
option too.

45
Through this software you can transfer your offline data trough HTTPS, ODBC,
SMTP, FTP, HTTP etc.

Multi-language- one feature that attracts the global companies to prefer Tally is its
multi- language support. Tally can perform its task in several different languages
which makes it easy for international companies to work on this software.

LAN setup- Business owners can also setup accounting software by LAN connection.
It will help you to show your accounting reports to the international audience. You
can also connect all the branches of office with head office.

Affordable- Most of the accounting software is quite expensive which is un

affordable for small industries. However, Tally ERP 9 is one such software which any
type of business organisation can afford.

Data Reliability: The tool is robust that even power failures or machine shut down
during functioning does not affect data stored in Tally database. Quality data integrity
checks at periodic levels ensure complete data reliability.

 Data Security: Data integrity checks also ensure that no external modifications to

the data can intervene with Tally. The availability of binary encoding storage format
avoids tricky information grouping. Access to database is through an activated ODBC
layer.

Tally Audit: A specified user can be given administrator rights to check for
correctness of entries entered by authorized users and make changes where required.
Audited entries and alterations made are displayed along with the name of the user
who has made those modifications with the time of change.

Tally Vault: Data encryption option available in Tally is called the Tally Vault. Data
Encryption Standard (DES) method prevents breaking of password for the vault.

46
 CLASSIFICATION OF ACCOUNTS

Accounting, the accounts are classified using one of two approaches – modern
approach or traditional approach. We shall describe modern approach first because
this approach of classification of accounts is used in almost every advanced country.
The use of traditional approach is very limited.

Modern approach

According to modern approach, the accounts are classified as asset accounts, liability
accounts, capital or owner’s equity accounts, withdrawal accounts, revenue/income
accounts and expense accounts.

1.Asset accounts:

Assets are things or items of value owned by a business and are usually divided into
tangible or intangible. Tangible assets are physical items such as building, machinery,
inventories, receivables, cash, prepaid expenses and advance payments to other
parties. Intangible assets normally include non-physical items and rights. Examples of
intangible assets include goodwill, trademarks, copyrights, patent rights and brand
recognition etc.

A separate account for each tangible and intangible asset is maintained by the
business to record any increase or decrease in that account.

2. Liability accounts:

Liabilities are obligations or debts payable to outsiders or creditors. The title of a

liability account usually ends with the word “payable”. Examples include accounts
payable, bills payable, wages payable, interest payable, rent payable and loan payable
etc. Besides these, any revenue received in advance is also a liability of the business
and is known as unearned revenue. For example, a marketing firm may receive
marketing fee from its client for the forthcoming quarter in advance. Such unearned

47
revenue would be recorded as a liability as long as the related marketing services
against it are not provided to the client who has made the advance payment.

3. Capital or owner’s equity accounts:

Capital is the owner’s claim against the assets of the business and is equal to total
assets less all liabilities to external parties. The balance in capital account increases
with the introduction of new capital and profits earned by the business and decreases
as a result of withdrawals and losses sustained by the business.

4. Withdrawal accounts:

Withdrawals are cash or assets taken by a business owner for his personal use. In sole
proprietorship and partnership, an account titled as drawings account is used to
account for all withdrawals. In corporate form of business withdrawals are more
systematic and usually termed as distributions to stockholders. The account used for
recording such distributions is known as dividend account.

5. Revenue or income accounts:

Revenue is the inflow of cash as a result of primary activities such as provision of

services or sale of goods. The term income usually refers to the net profit of the
business derived by deducting all expenses from revenue generated during a particular
period of time. For example, a merchandising company may have some investment in
an oil company. Any dividend received from oil company would be termed as
dividend income rather than dividend revenue. Other examples of income include
interest income, rent income and commission income etc. The businesses usually
maintain separate accounts for revenues and all incomes earned by them.

6. Expense accounts:

Any resource expended or service consumed to generate revenue is known as

expense. Examples of expenses include salaries expense, rent expense, wages

48
expense, supplies expense, electricity expense, telephone expense, depreciation
expense and miscellaneous expense.

Traditional approach

According to traditional approach, the accounts are classified into four types –
personal accounts, real accounts, nominal accounts, and valuation accounts. A brief
explanation of each is given below:

1. Personal accounts:

The accounts related to real persons and organizations are classified as personal
accounts. Examples of personal accounts include John’s account, Peter’s account,
Procter and Gamble’s account, Vibrant Marketing Agency’s account and City bank’s
account etc. The business keeps a separate account for each individual and
organization for the purpose of ascertaining the balance due from or due to them.

2. Real accounts:

Real accounts are accounts related to assets or properties (both tangible and
intangible) owned by a business enterprise. A separate account for each asset is
maintained to account for increases and decreases in that asset. Examples of real
accounts include cash account, inventory account, investment account, plant account,
building account, goodwill account, patent account, copyright account etc.

3. Nominal accounts:

The accounts related to incomes, gains, expenses and losses are classified as nominal
accounts.These accounts normally serve the purpose of accumulating data needed for
preparing income statement or profit and loss account of the business for a particular
period. Examples of nominal accounts include sales account, purchases account,
wages account, salaries account, interest account, rent account, gain on sale of fixed
assets account and loss on sale of fixed assets account etc

49
 GRAPHICAL PRESENTATION OF TALLY PROGRAMME
WITH GST APPLICATIONS

Double click on Tally Icon.

Select Tally Icon.

Press ALT +F3 for company creation

50
 STEP 1: COMPANY CREATION

Select Create Company. Press Enter

Give the company details Press Enter

Press Yes or No

Press yes.

51
After pressing yes the given dialogue box will appear.

Press ESC for back the given below dialogue will appear.

52
Activating GST in TALLY

To activate or enable the GST feature following are the Steps.

1. Select the company for which GST need to be activated or enabled as in case
Sampanth Traders Selected.
2. At gateway of tally Press F11(Features)the following screen will displayed.

53
 3. Select Statutory & Taxation or F3.
4. Enable Goods and Service Tax (GST) option YES as shown in figure.

Then set/alter GST Details yes a new screen displayed as shown below.

54
After completion of SETTINGS press Enter and back to Statutory Taxation press
enter ….

STEP-2 PRE-DETERMINED GROUPS

There are twenty eight pre-defined groups in Tally.ERP 9. These groups are a part of
the chart of accounts for most organizations. For example, Sales Accounts is a pre-
defined group. All sales ledgers can be classified under this group.

Out of the twenty eight pre-defined groups, fifteen are primary groups and thirteen
are sub-groups. The user can create any number of primary groups and sub-groups.

Primary Groups Subgroups

Branch / Divisions Bank Accounts

Capital Account Bank OD A/c

Current Assets Cash-in-hand

Current Liabilities Deposits (Asset)

55
 Direct Expenses Duties & Taxes

Loans & Advances

Direct Incomes
(Asset)

Fixed Assets Provisions

Indirect Expenses Reserves & Surplus

Indirect Incomes Secured Loans

Investments Stock-in-hand

Loans (Liability) Sundry Creditors

Misc. Expenses
Sundry Debtors
(ASSET)

Purchase Accounts Unsecured Loans

Sales Accounts

Suspense A/c

Out of the fifteen primary groups, nine primary groups appear in the balance sheets
that are capital in nature and six primary groups appear under Profit & Loss
account which are revenue in nature.

The sub-groups that form a part of the balance sheet are:

Pre-defined Subgroups Under

Bank Accounts Current Assets

Bank OD A/c Loans (Liability)

Cash-in-hand Current Assets

Deposits (Asset) Current Assets

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 Current
Duties & Taxes
Liabilities

Loans & Advances

Current Assets
(Asset)

Current
Provisions
Liabilities

Reserves & Surplus Capital Account

Secured Loans Loans (Liability)

Stock-in-hand Current Assets

Current
Sundry Creditors
Liabilities

Sundry Debtors Current Assets

Unsecured Loans Loans (Liability)

STEP-3 CREATION OF GROUPS

Single Group

 Go to Gateway of Tally> Accounts Info> Groups > Create ( Under single

group)
 Now you are in Group creation screen, Type the name of the group.
 Select Suitable group in the field 'Under'
 Press Enter and save, You are done.

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Multiple Group

 Go to Gateway of Tally > Accounts Info. > Groups > Create (Multiple

Groups).

 Select the group category in the field Under.

  Enter the Name of the group.

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 Select All Items in the field Under to create multiple groups of different
categories.

ILLUSTRATION

1. Mr. Sampanth Started a business of Rs. 30, 00,000.

2. Credit Purchases from Lavanya & Co, Vijayawada, Andhra Pradesh.
a) Credit Purchases Samsung Mobiles 40 each one @ 8,000.
b) Credit Purchases Nokia Mobiles 50 each one @ 8,500.
c) Credit Purchases Vivo Mobiles 60 each one @ 7,200
d) Credit Purchases Oppo Mobiles 30 each one @ 7,500.

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3. Credit Sales to Krishna & Co, Tanuku, Andhra Pradesh.
a) Credit Sales Samsung Mobiles 38 each one @ 9,000.
b) Credit Sales Nokia Mobiles 46 each one @ 9,500.
c) Credit Sales Vivo Mobiles 55 each one @ 8,000
d) Credit Sales Oppo Mobiles 28 each one @ 8,200.
4. Rent paid 40,000.
5. Cash deposited in the HDFC Bank Rs.1, 20,000.
6. Salaries Paid Rs. 50,000.
7. Cash paid to Lavanya & Co 14, 02,000.
8. Cash received from Krishna & Co 14, 48,600.
9. Duties & Taxes paid.
CGST: 2,796; SGST: 2,796.

STEP4: CREATING LEDGERS

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Gateway of Tally → Accounts Info→Ledgers →Create (Single Ledger)

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62
Ledger Group

Sampanth Capital A/c

HDFC Bank Bank A/c

Salaries Indirect Expenses

Rent Paid Indirect Expenses

Credit Purchase Purchase A/c

Enter→ Enter→ …..

Type of Supply Select Goods

Enter→ Enter→ …..

Credit Sales Sales A/c

Enter→ Enter→ …..

Type of Supply Select Goods

Enter→ Enter→ …..

Lavanya & Co Sundry Creditors

Enter→ Enter→ …..

State: Select State (AP)

Enter→ Enter→ …..

Krishna & Co Sundry Debtors

Enter→ Enter→ …..

State: Select State (AP)

Enter→ Enter→ …..

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CGST Duties and Taxes

Type of Duty/Tax Select GST

Tax Type Select Central Tax

Percentage of Calculation 6%

Enter→ Enter→ …..

SGST Duties and Taxes

Type of Duty/Tax Select GST

Tax Type Select State Tax

Percentage of Calculation 6%

Enter→ Enter→ …..

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 STEP 5: CREATION OF STOCK GROUP

After creation of LEDGER next step is creation of Stock or Inventory.

Gateway of Tally → Inventory Info→Stock Groups→Create (Single

Group)

65
Select Create Stock Group Creation.

After Selecting create the Stock Group Creation appears. In that in the Name: type
Mobiles

Under: Primary

Should quantities of items be added ? No

Set/alter GST Details ? No Type Yes

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Then set/alter GST Details yes a new screen displayed as shown below

Then PRESS: ALT+L

The Tax Rate History will disappear.

67
In that write Applicable From

In the Column of Set/ alter Tax Details type Yes in the place No press ENTER

68
After pressing enter the GST Rate Details will appear.

In that Integrated Tax type 12% in Rate Column automatically it takes Central Tax
6% &State Tax 6% .Press Enter→ Enter→ …..

Press ESC until Gateway of Tally Inventory Info

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Creation of Units of Measure:

Select Units of Measure

Select Create

70
A new screen displayed as shown below

In that write shown below Press Enter and after that Press ESC button twice.

71
Create Stock Items

Select Stock Items given below figure.

Click on Create

72
A new screen displayed below.

In that Type Name: Nokia Mobiles Under: Primary Units: Nos

Type of Supply: Goods Press Enter→ Enter→ …..

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Press Enter→ Enter→ …..

Likewise Create Stock Items according to the Sum.

After Completion of Stock items Press ESC button upto Tally Home Screen

74
 STEP 6: CREATION OF VOUCHERS

Select Inventory Vouchers press Enter

Press F6

75
A new screen displayed below.

Press F9

76
Press F8

Press F5

77
Press F4

Press F5

78
Press F5 cash paid to Sundry Creditors Lavanya & Co

Select on Account press Enter…

79
80
Press F6 cash received from Krishna & Co

81
82
Press F5 Duties & Taxes Paid CGST & SGST

Press ALT+S

Select GST Press Enter

83
Press Enter……

84
 Step-7 GENERATION OF REPORTS

PROFIT & LOSS ACCOUNT

Note: Press ALT+F1 for full details open or close

85
 BALANCE SHEET

Paid after Duties & Taxes, Sundry Creditors & Received from
Sundry Debtors.

Note: Press ALT+F1 for full details open or close

86
 GST RETURNS

To see the GSTR Forms

Gateway of Tally → Display→Statutory Reports →GST

Display the Shown below

87
GSTR-1

GSTR-2

88
GSTR-3B

For Print Press ALT+P .The following tax payment page open as follows through
online with GST Invoice.FORM GSTR-3B as under:

89
ONLINE TAX PAYMENT WITH GST INVOICE

90
91
Gateway of Tally → Display→Day Book →Select Purchase Voucher & Sales
Voucher

92
93
 RECOMMENDATIONS

 The government must either waive the GST on the exempted entities or ensure
that the entities receive refunds either monthly or quarterly instead of
annually.

 In the interest of ease of doing business, the government must introduce

centralized registration or at least zonal-wise registration system instead of the
proposed state-wise registration. Also, the government must allow assesses
involved in vertical business to have single registration for the purpose of
claiming input tax credit.

 The said issue is that the same tax payer should not be assessed by both the
Centre and the relevant State and clarity on the issue is most crucial prior to
the roll out of the GST. The Government should consider this matter before
GST is put into force in September 2017.

 The government must translate the existing GST rules and regulations in
vernacular languages so that it can be better understood by all the assesses,
especially in the MSME sector.

 The government must introduce a comprehensive training programme to

familiarize all the assessing officers, right from the top to the bottom in the tax
departments of both the central and all the state governments, with the concept
of GST, the information technology infrastructure of GST, the assessment,
audit and refund procedures under the new regime.

 The government may waive the registration requirement for such dealer and
instead accept statement of purchases and supply of goods or services for the
purpose of filing tax returns. Also, casual dealers should be allowed to pay tax
after receiving payment from their customers (instead of the requirement of
advance payment). The tax department may convert the registration status of
casual dealers into dormant and waive them from filing any tax returns in case
no transaction is recorded for more than 12 months. The registration status
may be turned active upon submission of relevant documents

94
 The government must simplify the cancellation procedure and remove the one-
year lock-in period for cancellation.

 The government must exempt MSMEs from the above norms for filing returns
at least in the initial few years. MSMEs must be allowed to file single return,
instead of three separate returns, on a monthly basis at least for the first five
years.

 The government must consider the withdrawal of these restrictions in

administering CENVAT credit. The tax department should not punish genuine
buyers for the failure of sellers to deposit tax. The department must devise
mechanism to identify defaulting suppliers in these cases.

 The government must work with industry bodies to conduct training

programmes for MSMEs at subsidized cost.

 The government must reconsider threshold limit to reduce the tax burden of
MSMEs. Further, the government should not consider non-taxable services
and export of goods and services while calculating aggregate turnover.

 The government must exempt free sample of goods and services from GST.

 The tax department need not continue this procedure under the GST regime as
all movement of goods can be tracked on the GST website. The elimination of
waybills or transit forms would reduce the compliance burden for MSMEs
under the GST regime.

 The government may classify such services as inter-state services where the
service provider and his client have registered business units in two different
states, but the service provider offers his services from the client location.
Such transactions attract Integrated GST which is eligible for input tax credit.

 The government must offer input tax credit to works contractors and also
specify abatement rate for constructing industrial or commercial property.

95
 The government must eliminate such restriction on the number of goods that
are covered under single registration.

 The government may consider the formation of dispute resolution committees

in all the states and union territories for hearing such disputes. These
committees must be staffed with experts from legal and audit profession.

 The government must bring certain goods such as alcoholic liquor, petroleum
products and electricity under the proposed GST regime.

 The tax department should not add subsidy while calculating the value of
goods and services.

 The government must exempt GST on stock transfer, both inter-state and
intra- state.

 The government must introduce concession in interest and penalty payment

for assesses in the MSME sector. Also, the provision for imprisonment should
be less stringent in case of assesses in this sector.

 The government must allow manufacturers to claim input tax credit for taxes
paid on the raw materials or any other inputs added by the job worker

 The government must reconsider the extension of reverse charge mechanism

for goods.

 The government must reconsider the requirement of advance tax payment to

ease the constraints faced by the seller.

 The government must reconsider the procedure of multiple registration and

filing of monthly returns in the interest of ease of doing business.
 The government must reconsider the tax collection compliance of E-
commerce companies to ease the procedures.

96
 The central government must devise alternative way for compensating state
governments for the revenue loss.

 Rates should be rationalized and reduced to make India competitive and in

interest of compliance and economic growth. The highest rate should be kept
at 18% and there should be only few items that fall in 28% slab. Daily use
items such as soaps, cremes, movie tickets, electrical goods should not be
taxed at 28%.

 It is suggested that additional manpower be deployed for resolving

queries/issues, reduce call/ email revert time to help keep up the good work
undertaken by GST helpdesk. An assistance provided by properly trained
officials will add to the smooth functioning of the GST help desk and
providing specifIc answers to the queries/issues as against being referred to
GST Acts, Rules, FAQs etc.

 It is suggested to enable the copy paste option in passwords &does not make it
mandatory to change the passwords.

 It is suggested that there must be an option to change authorized signatory

contact details in GST database.

 It is suggested that download option should be available on the GST Portal.

 It is suggested that there be made applicable only one return monthly under
GST which includes all combined details from GSTR-1&2 by 15th of next
month and keep tax payment date to be 25th.

 It is suggested that appropriate column be added in the return form to

depicter’s amount on export.

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 SUMMARY

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 industry deals with manufacturing, distributing and retailing or is
providing a service.

Impact of GST on Manufacturers, Distributor, and Retailers

GST is boost competitiveness and performance in India’s manufacturing sector.

Declining exports and high infrastructure spending are just some of the concerns of
this sector. Multiple indirect taxes had also increased the administrative costs 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 Providers

As of March 2014, there were 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, telecommunication services,
the Insurance industry, business support services, Banking and Financial services, etc.
These pan-India businesses already work in a unified market, and will see compliance
burden becoming lesser. But they will have to separately register every place of
business in each state.

Sector-wise Impact Analysis

Logistics

In a vast country like India, the logistics sector forms the backbone of the

economy. We can fairly assume that a well organized and mature logistics industry
has the potential to leapfrog the “Make In India” initiative of the Government of India
to its desired position.

98
E-commerce

The e-commerce sector in India has been growing by leaps and bounds. In many

ways, GST will help the e-com sector’s 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-com companies are not too happy
with. The current rate of TCS is at 1%.

Pharma

On the whole, GST is benefiting the pharma and healthcare industries. It will create a
level playing field for generic drug makers, boost medical tourism and simplify the
tax structure. If there is any concern whatsoever, then it relates to the pricing structure
(as per latest news). The pharma sector is hoping for a tax respite as it will make
affordable healthcare easier to access by all.

Telecommunications

In the telecom sector, prices will come down after GST. Manufacturers will save on
costs 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. The will also
save up 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).

Real Estate

The real estate sector is one of the most pivotal sectors of the Indian economy,
playing an important role in employment generation in India. The impact of GST on
the real estate sector cannot be fully assessed as it largely depends on the tax rates.
However, the sector will see substantial benefits from GST implementation, as it has
brought to the industry much-required transparency and accountability.

99
Agriculture

The agricultural sector is the largest contributing sector the overall Indian GDP. It
covers around 16% of Indian GDP. One of the major issues faced by the agricultural
sector is the transportation of agri-products across state lines all over India. GST will
resolve the issue of transportation. 

FMCG

The FMCG sector is experiencing significant savings in logistics and distribution

costs as the GST has eliminated the need for multiple sales depots. 

Freelancers

Freelancing in India is still a nascent industry and the rules and regulations for this
chaotic industry are still up in the air. But with GST, it will become much easier for
freelancers to file their taxes as they can easily do it online. They are taxed as service
providers, and the new tax structure has brought about coherence and accountability
in this sector.

Automobiles

The automobile industry in India is a vast business producing a large number of cars

annually, fueled mostly by the huge population of the country. Under the previous tax
system, there were several taxes applicable on this sector like excise, VAT, sales tax,
road tax, motor vehicle tax, registration duty which will be subsumed by GST.

Startups

With increased limits for registration, a DIY compliance model, tax credit on
purchases, and a free flow of goods and services, the GST regime truly augurs well
for the Indian startup scene. Previously, many Indian states had different VAT laws
which were confusing for companies that have a pan-India presence, especially the e-
com sector. All of this has changed under GST.

100
 CONCLUSION

GST is a destination based tax and levied at a single point at the time of
consumption of goods or services by the ultimate consumer. GST is based on the
principle of value added tax. Goods and Services Tax (GST) is a comprehensive tax
levy on manufacture, traders, sale and consumption of Goods and Services at national
level and is expected to remove the cascading effect of tax-on-tax which is prevalent
presently. The term GST is defined in Article 366 (12A) to mean “any tax on supply
of goods or services or both except taxes on supply of the alcoholic liquor for human
consumption” Goods & Services Tax Law in India is a comprehensive, multi-
stage, destination-based tax that is levied on every value addition.

In simple words, Goods and Service Tax is an indirect tax levied on the supply
of goods and services. GST Law has replaced many indirect tax laws that previously
existed in India.

GST is one indirect tax for the entire country. Under the GST regime, the tax
will be levied at every point of sale. In case of interstate sales, Central GST and State
GST will be charged. Intra-state sales will be chargeable to Integrated GST.
Nowadays there are so many things heard about GST, little right and many wrong.
For a common man GST stands for ' Goods and Services Tax", and is proposed to be
a comprehensive indirect tax levied on manufacturing, sale and consumption of goods
as well as services at the national level. It will replace all other indirect taxes levied
on goods and services by the Indian Central and State governments.

Implementation of GST is one of the best decisions taken by the Indian

government. For the same reason, July 1 was celebrated as Financial Independence
day in India when all the Members of Parliament attended the function in Parliament
House. The transition to the GST regime which is accepted by 159 countries would
not be easy. Confusions and complexities were expected and will happen. India, at
some point, had to comply with such regime. Though the structure might not be a
perfect one but once in place, such a tax structure will make India a better economy
favorable for foreign investments. Until now India was a union of 29 small tax
economies and 7 union territories with different levies unique to each state. It is a
much accepted and appreciated regime because it does away with multiple tax rates

101
by Centre and States. And if you are doing any kind of business then you should
register for GST as it is not only going to help Indian government but will help you
also to track your business weekly as in GST you have to make your business activity
statement each week.

Many economists and experts have predicted that the GST bill will boost
up the economy in long run. India is a collective economy where each state has its
own set of rules for them. This makes the growth of the country slow, causes
difficulties to the businesses and higher possibilities of tax evasion and corruption. To
make the tax payment process simpler and create a win-win environment for both,
government as well as businesses, and to reduce the corruption, GST bill is introduced
in India which is very important.

BIBLIOGRAPHY
102
TEXT BOOKS

 Tally with GST applications, N.Goyal & R.Sachdeva Kalyani

 Tally.ERP 9 Made Simple Basic Financial Accounting by BPB Publisher.
 Tally ERP 9 For Real Time Accounting by Avichi Krishnan
 Fundamentals of Computers, by V. Rajaraman, PHI.

NEWS PAPER

Economic Times
Financial Express

WEBSITES:

www.gstgov.in
https://services.gst.gov.in/services/quicklinks/payments
http://www.cbec.gov.in/htdocs-cbec/gst
https://cleartax.in/s/gst-analysis-and-opinions

APPS:

GST Helpline

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