Project Report

Submitted For The Degree Of B.COM Honours In Accounting & Finance Under The
University Of Calcutta.

 Title of the Project:- Study on Goods and Services Tax (GST)

 Submitted by:-
 Name of the Candidate:- Subhadip Bag
 Registration No:-
 Roll No.:-
 Name of the College:- Nabagram Hiralalpaul College

 Supervised by:-
 Name of the Supervisor:-Prabir Dutta

 Month & Year of Submission:-2021-2022

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 Annexure – 1
Supervisor's certificate
This is certified that Mr. Subhadip Bag is a student of B. Com
honours in accounting & Finance of Nabagram Hiralal Paul
College under the University of Calcutta has worked under my
supervision guidance for his project work and prepared a
project report with the title “Study on Goods and Services Tax
(GST)”

The project report, which he is submitting, is his genuine and

original to the best of my knowledge.

Name: Prof. Prabir Dutta

Designation: Asst. Professor in
Commerce Department
Name of the college: Nabagram
Hiralal Paul College

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 Annexure – 2
Student’s Declaration
I hereby declare that the project work with the title “Study on
Goods and Services Tax (GST)” submitted by me for the partial
fulfilment of the degree of B. Com honours in Accounting and
Finance under the University of Calcutta is my original work
and has net been submitted earlier to any other University/
Institution for the fulfilment of the requirement for any course
of study.
I also declare that no chapter of this manuscript in whole or in
part has been incorporate in this project from any earlier work
done by others or by me. However, extracts of any literature
which has been used for this report has been duly
acknowledged providing details of such literature in the
references.

Name: Subhadip Bag

Address: 45, Dwarik Jungle Road
P.O- Bhadrakali, Uttarpara,
Hooghly.
Registration No: 612-1112-0613-18
Roll No: 181612-21-0103

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 ACKNOWLEDGEMENTS
I would like to express of special of gratitude my teacher Mr.
“Prabir Dutta ”, who have gave me the golden opportunity to do
this wonderful project on the topic “Study on Goods and
Services Tax (GST)” this has helped me in doing a lot of research
and I come to learn about so many new thing. I am really
thankful to him.

Secondly, I would also like to thank my parents and friends,

who helped me a lot in finishing this project within the limited
time. I completed this project not only for marks but also ingress
my knowledge.

Subhadip Bag
B.com 3rd Year (Honours)
Nabagram Hiralal Paul College

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 PREFACE
Goods and Services tax (GST) which is a comprehensive tax on supply of goods or
services or both, has been implemented from 1st July, 2017. Further from 8th July,
2017 the applicability of GST has been extended to the State of Jammu & Kashmir
also. The implementation of GST besides being the biggest tax reform in the Indian
history is also regarded as a business reform as businesses need to restratigise their
functioning/transactions in order to keep their tax cost at minimum within the
framework of GST Law. GST is all set to integrate State economies and boost overall
growth. GST will create a single, unified Indian market to make the economy
stronger and is based upon the principle of “One Nation, One Tax, and One
Market”.

Our Honourable Prime Minister NarendraModi defined GST as Goods and Simple
Tax at the midnight rollout of the India’s biggest tax reform. President Pranab
Mukherjee said that the unified tax system was “the culmination of 14 year long
journey”.

The implementation of GST in the initial days would pose certain challenges
specifically in the area of supply of services. Accordingly in order to facilitate the
seamless transition from the service tax law to GST regime by the service
providers, the provisions of the GST law specifically relevant for supply of services
along with its comparison with the erstwhile service tax law has been discussed in
this Book.

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 CONTENTS
CHAPTER TOPIC PAGE
1. Introduction. 1.1 Background 7-8
1.2 Rationale 8
1.3 Review of literature 8
1.4 Objectives of the GST 9
1.5 Research 9
Methodology
2.Conceptual Framework 2.1 Concept of GST 10-15
2.2 National & 15-21
international Scenario of
GST
3.Presentations, Analysis, 3.1 Data Presentation 22-24
Finding, & 3.2 data Analysis 24-30
Recommendations 3.3Finding & 30-36
Recommendations
4.Conclusions 4.1 Conclusion 37
Bibliography 37

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Chapter (1):- INTRODUCTION
1(1) Background:-
The Goods and Services Tax (GST) is a comprehensive value added tax on Goods &
Services. It is a vast concept. GST will be help to enhancing & supporting the
economic growth of a country.
In India, the idea of adopting GST was first suggested by the “Atal Bihari Vajpaye”
Government in 2000. To the “Norendra Modi’s” Government in 2014, India’s new
Finance Minister Arun Jaitley was submit 122nd Constitution Amendment Bill in
the 16thLokSabha on 19th December 2014. The opposition demanded that the bill
be sent for discussion to the standing committee. Then Government of India has
appointed various committees, task force to give their views to introduce a vibrant
and modern Indirect Tax structure in India.

Finally in August 2016, The Constitution Amendment bill was passed in the
parliament & 18 states ratified The Constitution Amendment Bill & The President
“Pranab Mukherjee” gave his assent to it.
GST council has also recommended four – tier GST rate structure & thresholds.

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GST council approved the Central Goods & Services Tax Bill 2017 (The CGST Bill),
The Integrated Goods & Services Tax Bill 2017 (The IGST Bill), The Union Territory
Goods & Services Tax Bill 2017 (The UTGST Bill), The Goods & Services Tax
(Compensation to the states) Bill 2017 The Compensation Bill, these Bills were
passed by the Loksabha on 29 march 2017. The Rajyasabha passed these Bills on
6th April 2017.

The GST was implemented at midnight on 1st July 2017 by president of the India,
“Pranab Mukherjee”& the government of India. The Jammu & Kashmir state
legislature passed its GST act on 7 July 2017.

1(2) The rationales behind moving from current

tax structure to GST are explained below:-
 The indirect tax Regime where taxes under various headings are levied on
goods and services would be replaced with one common tax module. This
will encourage national market due to uniformity in tax structure across the
states.
 Taxes levied at multiple levels mean extra burden on consumers and
businesses due to cascading effect. Implementation of GST would mean
relief from excess taxing at different levels.
 Earlier taxes for goods and services were separate, but clearly distinguishing
between goods and services have become difficult with lot of innovation and
technological advancement.GST will remove this problem too.

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1(3) Review of Literature:-
Halakhandi, (2007)
GST was supposed to be introduced in India way back in 2010. It has been getting
postponed due to various reasons major one being getting to a consensus between
the various states and the centre for compensation. The author in the paper has
discussed the existing laws in India for indirect taxes, the VAT laws in various
states with their advantages and disadvantages, the impact of the proposed GST,
the compliances under the proposed GST etc. The author has also used various
numerical examples to demonstrate how GST is cost effective.
Eva, (2008)
The author in his paper has examined the cost of complying with the indirect tax
laws in the Slovak Republic by doing research of small, medium and large
businesses through a questionnaire and concludes that businesses especially the
small ones are not able to and do not make efforts to quantify the cost of
compliance which is quite high due to the complex laws.
Eugen, (2011)
The authors have examined the various methods adopted by assesses to evade
VAT especially in intra country transactions in Romania. The authors have also
recommended the documentation and returns which could be relied upon by
both the authorities and the assesses to ensure that there is no tax evasion.
Mansor, (2013)
GST has always been considered as a tool in the hands of any Government to
increase revenue. The Malaysian Government introduced the said tax in Malaysia
in order to reduce its budget deficit. The authors in the paper have discussed the
readiness of the Malaysian economy in adopting the said newly introduced GST
along with the reactions of various sections of the society.

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1(4) Objective of the GST:-
 One Country – One Tax.
 Consumption based tax instead of Manufacturing.
 Uniform GST Registration, payment and Input tax Credit.
 To eliminate the cascading effect of Indirect taxes on single transaction.
 Subsume all indirect taxes at Centre and State Level under.
 Reduce tax evasion and corruption.
 Increase productivity.
 Increase Tax to GDP Ratio and revenue surplus.
 Increase Compliance.
 Reducing economic distortions.

1(5) Research Methodologies:-

The study is based on secondary data collected from various referred books,
National and international journals, government reports, applications from
various websites which focused on various aspects of goods and service tax.

The Researchers used an exploratory research technique based on past

literature from respective journals, annual reports, newspapers and magazines
covering wide collection.

Chapter (2):- Conceptual Framework:-

2(1) Concept of GST:-

 GST is a tax on goods and services with comprehensive and continuous

chain of setoff benefits from the Producer’s point and Service provider’s
point up to the retailer level.

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  GST is expected be levied only at the destination point, and not at various
points (from manufacturing to retail outlets). It is essentially a tax only on
value addition at each stage and a supplier at each stage is permitted to set
off through a tax credit mechanism which would eliminate the burden of all
cascading effects, including the burden of CENVAT and service tax.

 Under GST structure, all different stages of production and distribution can
be interpreted as a mere tax pass through and the tax essentially sticks on
final consumption within the taxing jurisdiction.

 Currently, a manufacturer needs to pay tax when a finished product moves

out from the factory, and it is again taxed at the retail outlet when sold. The
taxes are levied at the multiple stages such as CENVAT, Central sales tax,
State Sales Tax, Octroi, etc. will be replaced by GST to be introduced at
Central and State level.

 All goods and services, barring a few exceptions, will be brought into the
GST base. There will be no distinction between goods and services.

 Under GST, the taxation burden will be divided equitably between

manufacturing and services, through a lower tax rate by increasing the tax
base and minimizing exemptions.

 However, the basic features of law such as chargeability, definition of

taxable event and taxable person, measure of levy including valuation
provisions, basis of classification etc. would be uniform across these statutes
as far as practicable.

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  The existing CST will be discontinued. Instead, a new statute known as IGST
will come into place on the inter-state transfer of the Goods and Services.

 By removing the cascading effect of taxes (CST, additional customs duty,

surcharges, luxury Tax, Entertainment Tax, etc. ), CGST & SGST will be
charged on same price.

 Who shall pay?  Taxable person- sch III

 On what GST shall be paid?  Supply of Goods and services

Section 7
 When GST shall be paid?  Point of Supply

 Where shall GST be paid?  Place of supply

 To whom shall would be paid?  Respective Government

 How to pay?  Cash / Credit

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 Types of GST:-
The 4 types of GST in India are.

 SGST (State Goods and Services Tax)

 CGST (Central Goods and Services Tax)
 IGST (Integrated Goods and Services Tax)
 UGST (Union Territory Goods and Services Tax)

1. SGST:-
SGST means State Goods and Service Tax. It is covered under State Goods and
Service Tax Act 2016. A collection of SGST will be the revenue for State
Government. After the introduction of SGST all the state taxes like Value Added
Tax, Entertainment Tax, Luxury Tax, entry Tax etc. will be merged under SGST. For
example, if goods are sold or services are provided within the State then SGST will
be levied on such transaction.
2. CGST:-
CGST means Central Goods and Service Tax. CGST is a part of goods and service
tax. It is covered under Central Goods and Service Tax Act 2016. Taxes collected
under Central Goods and Service tax will be the revenue for central Government.
Present Central taxes like Central excise duty, Additional Excise duty, Special

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Excise Duty, Central Sales Tax, and Service Tax etc. will be subsumed under
Central Goods and Service Tax.

3. IGST:-
IGST means Integrated Goods and Service Tax. IGST falls under Integrated Goods
and Service Tax Act 2016. Revenue collected from IGST will be divided between
Central Government and State Government as per the rates specified by the
government. IGST will be charged on transfer of goods and services from one state
to another state. Import of Goods and Services will also be deemed to be covered
under Inter-state transactions so IGST will be levied on such transactions. For
example, if Goods or services are transferred from Rajasthan to Maharashtra then
the transactions will attract IGST.

3. UTGST:-
The reason behind UTGST applicability in GST is that the common State GST
(SGST) cannot be applied in a Union Territory without legislature.

To address this issue, GST Council has decided to have Union Territory GST Law
(UTGST) which would be on par with SGST. However, SGST can be applied in
Union Territories such as New Delhi and Puducherry, since both have their
individual legislatures, and can be considered as “States” as per GST process.

UTGST applies to only those union territories where we do not have a separate
legislature and that list includes the following union territories:

 Chandigarh.
 Lakshadweep.
 Daman and Diu.
 Dadra and Nagar Haveli.
 Andaman and Nicobar islands.

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Tax Rates under GST:-
GST rates are divided into five categories which are 0%, 5%, 12%, 18%, 28%.

All the basic need requirement good are pleased in 0% category like food grains,
bread, salt, books etc. Goods like paneer packed food, tea coffee etc are placed
under 5% categories. Mobiles, sweets, medicine are under 12%. All types of
services are under18% category. All other remaining luxury items are placed
under the last head of 28%.

List of rate changes at 39th GST Council Meeting:-

SL.no List of Goods/Services Changes in Tax Rate

1 Vegetables provisionally 5% to Nil

preserved but unsuitable
for immediate
consumption

2 Vegetables 5% to Nil
cooked/uncooked via
steamed, frozen or
boiled (branded)

3 Music Books 12% to Nil

4 Parts for manufacturing 5%

renewable energy
devices falling under
chapter 84, 85 of tarrif

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5 Natural cork 12% to 5%

6 Fly ash blocks 12% to 5%

7 Walking sticks 12% to 5%

8 Marble rubble 18% to 5%

9 Agglomerated cork 18% to 12%

10 Cork roughly squared or 18% to 12%

debugged

11 Articles of Natural cork 18% to 12%

12 Movie Tickets < or = Rs 18% to 12%

100

13 Premium on Third party 18% to 12%

insurance on Vehicles

14 Accessories for 28% to 5%

Handicapped Mobility
Vehicles

15 Power banks 28% to 18%

16 Movie Tickets >Rs 100 28% to 18%

17 Video game consoles, 28% to 18%

equipments used for
Billiards and Snooker
and other sport related
items of HSN code 9504

18 Retreated & used 28% to 18%

pneumatic Rubber Tiers

19 Colour Television Sets & 28% to 18%

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 monitors up to “32
Inches

20 Digital & Video Camera 28% to 18%

recorders

21 Pulleys, transmission 28% to 18%

shafts, cranks and gear
boxes under HSN 8483

22 Tax rate on Air travel of 28% to 18%

pilgrims reduced*

Composition scheme under GST:-

Any taxable person whose aggregate turnover in the preceding financial year is
less than Rs. 1.5 Crores and less than Rs. 75 lakhs for North Eastern States can opt
for a simplified composition scheme where tax will payable at a concessional rate
on the turnover in a state without the benefit of Input Tax credit. The floor rate of
tax for CGST and SGST shall not be less than 1%. A tax payer opting for
composition levy shall not collect any tax from his customers. Tax payers making
inter-state supplies or paying tax on reverse charge basis shall not be eligible for
composition scheme.

Meaning of supply:-
The taxable event in GST is supply of goods or services or both. Various taxable
events like manufacture, sale, rendering of service, purchase, entry into a territory
of state etc. have been done away with in favour of just one event i.e. supply. The
constitution defines “Goods and Services Tax” as any tax on supply of goods, or
services or both, except for taxes on the supply of the alcoholic liquor for human
consumption.

The Central and State governments will have simultaneous powers to levy the GST
on Intra-State supply. However, The Parliament alone shall have exclusive power
to make laws with respect to levy of Goods and Services Tax on Inter-State supply.

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Time of supply:-
Under GST, liability to remit GST to Government arises at the time of supply.
Time of supply is generally the earliest of one of the three events, namely
receiving payment, issuance of invoice or completion of supply.

Transaction value:-
Transaction Value” is the basis for Valuation for supply of goods and/or
services under the GST Regime. For the levy of tax i.e. GST first we have to
determine the transaction value. ‘Transaction Value’ is the price actually paid
or payable for supply of goods and/or services.

Features of registration process:-

1. Existing dealers: Existing VAT/Central excise/Service Tax payers will not
have to apply afresh for registration under GST.

2. New dealers: Single application to be filed online for registration under GST.

3. The registration number will be PAN based and will serve the purpose for
Centre and State.

4. Unified application to both tax authorities.

5. Each dealer to be given unique ID GSTIN.

6. Deemed approval within three days.

7. Post registration verification in risk based cases only.

2(2) National & International scenario of GST:-

The National Scenario:-
At midnight of 30th June 2017, India became one of the 160 countries to launch
GST. The GST is a target based unified indirect tax and will remove all other
indirect taxes. It is collected and levied on the value added at each stage. GST will
be operated at both state (SGST- State collected GST) and central level (CGST-
Central collected GST). Besides, the centre will also collect Integrated Goods and
Services Tax (IGST) in case of inter-state transactions. GST is a consumption-based
tax and is regressive. The ultimate burden of this tax is on the final consumer of
goods and services. So, whether your income is thousand, hundred or nothing you

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have to pay this tax, as long as you buy some commodity. There is uniformity in
the tax between the rich and the poor. GST aims at unifying the country’s
population under a single tax regime expressing the principle of one nation, one
tax, and one market. GST will be collected under five tax braces of 0 percent, 5
percent, 12 percent, 18 percent and 28 percent. India is a developing country
where 21.9 per cent of the population still lives below the National Poverty Line
(Basic Statistics 2017). United Nations Development Programme’s report shows
that 55.3 percent of India’s population is living under multidimensional poverty
and Human Development Index (HDI) for the country stands at 0.624 (0.454 only
when adjusted for inequality). HDI Report 2016 placed India at 131st rank in a list
of 188 countries. World Bank’s report on world development indicators also
placed India at much lower levels than the global average (World Bank 2016). The
public health expenditure in India is only 1.40 percent of Gross Domestic Product
(the year 2014).

In development scenario India is much behind than countries like Japan, United
Kingdom, France, United States, etc. but still having the highest GST in the world.
However, the developed countries have set much lower rates of GST than India
and are growing at faster rates, with almost nil amounts of poor people. Has the
government gone through above economic indicators before implementing GST?
Was it necessary for India to set the highest tax rates in the world? Someone
analyzed that countries where tax rates moved higher, GDP growth pushes up,
after following a temporary negative impact in initial years. The Reserve Bank of
India in its research report named ‘GST: A Game Changer’ also showed the good
performance of countries like New Zealand, Canada, Singapore, Malaysia after
implementation of GST. One thing that is missing is the background of a nation.
Every policy is based on the previous experience of the economy. India is a country
where more than 25 lakh people die of hunger every year (Hunger Facts 2017). A
large number of people are engaged in agricultural pursuits. They are earning less
and living hard and as a result, farmers are committing suicides. National Crime
Records Bureau of India reported 13,755 farmer suicides in 2012. How can the
government expect these people as the bearers of tax? Besides, the economy is
already facing disturbances due to demonetization. Imposing GST in such an

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economy and at this time will simply increase the inequality between the rich and
the poor. International Monetary Fund (2001) on tax policy for developing
countries suggested that consumer taxes play a diminished role in these
economies. Therefore, the possibility that the government will impose high tax
levels is virtually excluded.
The international scenario:-
GST!!! A pathway towards unified taxation regime eventually leading towards
betterment of economy!!! GST has been practiced in around 160 countries around
the globe. Legal in stinks through this article bring before its readers the scenario
of GST/VAT around the globe, its implementation and its impact on respective
economies.

(1) United Kingdom (UK):-

Name: Value Added Tax

Date of introduction: 01.04.1973

Scope:

 Supply of goods or services made in the UK.

 Intra community procurements from EU Members.
 Importation of Goods & Services
 Standard Rate: 20 %
 Reduced Rate: 5 % and exempt and zero-rated
 Threshold exemption limit: £ 73,000
 Liabilities arises on:
 1.Accrual Basis: On raising of invoice or receipt of consideration or
supply (of goods or services), whichever is earlier.
2. Cash Basis: (if turnover is below £1.35 million): On receipt of
considerations
 Payment: Usually quarterly returns. However, a small business can opt
for annual returns filing.
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  Export: Exports are ‘Zero’ rated.
 Exempt Services:
 1. Medical and education
2. Finance, insurance, postal services
 Innovative Concept: To ease the VAT administration, the assessee is
informed at the time of registration itself as to which of the three
quarterly cycle it should follow for filling the VAT returns.
(2) Canada:-
Name: Federal Goods and Service Tax & Harmonized Sales Tax

Date of introduction GST: 01.01.1991 & HST 01.04.1997

Scope: Taxable supplies of goods and services

Standard Rate: GST 5% and HST varies from 0% to 15%

Reduced Rates: Exempt and Zero-rated

Threshold exemption limit: Canadian $ 30,000

Liability arises on: On accrual (date of invoice, date of issue of invoice) or

receipt of consideration, whichever is earlier.

VAT returns and payments: Depending on the turnover, tax needs to be

deposited monthly, quarterly or annually.

Reverse charge mechanism: Reverse charge applies to the importation of

services and intangible properties.

Export: Exports are ‘Zero’ rated.

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Exempt services:

1. Supply of real estate

2. Financial Services and residential renting
3. Supplies by charities
4. Health, education services

Innovative concept: A group concern can supply to another group concern at

zero-rated.
(3) Australia:-
Name: Goods and Service Tax
Date of introduction: 01.07.2000
Scope:
• Taxable supplies of goods and services made which are connected with Australia
and made for a consideration by a registered (or required to be registered)
person in the course of business enterprises Importation of goods
Standard Rate: 10 %
Reduced Rate: 0 %
Threshold exemption limit: $ 75,000
Liability arises on:

• Accrual basis: On the raising of invoice or receipt of consideration, whichever is

earlier.
• Cash basis: [an option available to assessee having turnover below $ 2 million]:
On receipt of consideration.

Payment: Depending on the turnover, the tax needs to be deposited monthly,

quarterly or annually. The due date for payment Tax needs to be deposited on 21st
day following the end of the month/quarter/year.

Reverse Charge Mechanism: Reverse charge applies to supplies made by non-

residents

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Export: Exports are ‘Zero’ rated.

Exempt Services:

1. Government supplies such as water services, drainage services etc.

2. Health, education, religious supplies Financial Services and residential renting
3. Vegetab le, fruit, meat

Innovative Concept: ‘Group registration’ wherein a single consolidated return for

the group can be filed.
(4) New Zealand:-
Name: Goods and Service Tax
Date of introduction: 01.10.1986
Scope:
• Supply of goods or services made in New Zealand by a registered person
• Importation of goods
Standard Rate: 15 %
Reduced Rate: Zero-rated and exempt

Threshold exemption limit: NZ$ 60,000

Liability arises on: On raising of invoice or receipt of consideration, whichever is

earlier.
Returns: Depending on the turnover it is either monthly, bi-monthly or six-
monthly Due date for returns and payment On 28th day following the end of the
month or bi-month or six-month.
The due date for returns and payment: On the 28th day following the end of the
month or bi-month or six-month. However, a different date for the certain
periods.
Reverse charge mechanism: Reverse charge applies to the supply of services made
by non-residents.
Export: Exports are ‘zero’ rated.
Exempt services:

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 1. Real estate
2. Financial services
3. Residential rental
Innovative concept: The headline price in advertisement and stores must be
always GST inclusive except when supplies are to wholesale clients.
(5) Singapore:-
Name: Goods and Service Tax
Date of introduction: 01.04.1994
Scope:
• Supplies of goods and services in Singapore by a taxable person in the course
or furtherance of a business
• Importation of goods
Standard Rate: 7 %
Reduced Rate: Zero-rated and exempt
Threshold exemption limit: Singapore $ 1 million
Liability arises on: On raising of invoice or receipt of consideration or supply (of
goods or services), whichever is earlier.
Returns: Usually quarterly returns. However, a business can opt for monthly
returns.
The due date for returns and payment: Last day of the month following the end of
the month or quarter.
Reverse charge mechanism: Reverse charge applies to the supply of services
Export: Exports are ‘zero’ rated.
Exempt services: Real estate, Financial services, Residential rental
Innovative concept: Divisional registration wherein if an assessee has several
divisions he may register the said divisions separately. Each such division should
submit its own return. The supplies between the divisions are ignored for GST
purposes.

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Chapter (3):- Analysis, Finding & Recommendation
3(1) Data presentation of GST:-

GST- The Goods and Services Tax- is the mother of all tax reforms in India. It is
crucial for all businesses to understand the implications of GST on their brands.
Since GST is a new law and crucial processes like return filing and invoicing have
been changed, it is even more important that business owners and tax
professionals understand the nuances of these new laws so that they can be GST-
compliant.
Understanding the Payment Process under GST
Every registered person is required to compute his tax liability on a monthly basis
by setting off the Input Tax Credit (ITC) against the Outward Tax Liability. If there
is any balance tax liability the same is required to be paid to the government.
There are 3 ledgers prescribed by the government that is required to be
maintained by every tax payer –
1. Electronic Tax Liability Ledger
The electronic tax liability ledger shows the total tax liability of a registered
person at any point of time. This detail can be accessed on the GST portal of
a registered tax payer
Amount of tax payable A
Interest, late fee B
Amount of tax payable along with interest on account of C
mismatch of credit based on provisions of Section 29 or
Section 29A or section 43C
Any other amount payable by the taxpayer or directed D
by the board on account of any proceeding’s carried out
Tax Deduction at source E
Tax Collection at source F
Tax payable under reverse charge G
Amount payable by the department against any interest, H
refund, penalty, late fee or any other amount
determined under the proceedings under this Act

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Balance in Electronics Tax Liability Ledger =A+B+C+D-E-F-G-
H
2. Electronic Cash Ledger
An Electronic Cash Ledger will also be maintained on the GST portal. It will
display the total amount deposited by the tax payer towards discharge of his tax
liability or interest or late fee or penalty any other amounts. Also, it is now
mandatory for businesses making payment for more than Rs 10,000 to do it
electronically.

To know more on how to GST check our Guide on GST Payment

3. Electronic credit ledger

All the taxes paid on the inputs would be recorded in the electronic credit
ledger. The input tax credit in each of the cases mentioned below shall also be
transferred to the electronic credit ledger:

 ITC available to the branch for the amount of credit transferred by ISD
 ITC allowed on input held in stock and the semi-finished or finished goods
would be credited to electronic credit ledger if the taxpayer applies for
registration within 30 days of becoming liable to pay tax.
 ITC available on the input held in stock and semi-finished or finished goods
by a taxpayer in the composition scheme converting to a normal taxpayer
shall be transferred to electronic credit ledger.
 ITC available due to the taxes paid under the reverse charge mechanism
shall also be transferred to the electronic credit ledger.
 ITC available on goods/services used for the business and other purposes
shall only be allowed to the extent applicable for business purposes.

All the payments under GST have to be made by either using the input tax credit
available in the electronic credit ledger or through the electronic cash ledger.

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Utilizing ITC for the fulfillment of Tax liability:
IGST: After the IGST input tax credit is used for payment of IGST then the
remaining ITC can be used to pay tax liability under CGST and SGST.
CGST: The CGST input tax credit cannot be used to pay the SGST liability but can
be used to pay the liability under CGST. Further, the balance of CGST credit
available can be used to pay the IGST liability.
SGST: The SGST input tax credit cannot be used to pay the CGST liability but can
be used to pay the liability under SGST. Further, the balance of SGST credit
available can be used to pay the IGST liability.
Utilizing ITC for the fulfillment of Tax liability:
IGST: After the IGST input tax credit is used for payment of IGST then the
remaining ITC can be used to pay tax liability under CGST and SGST.
CGST: The CGST input tax credit cannot be used to pay the SGST liability but can
be used to pay the liability under CGST. Further, the balance of CGST credit
available can be used to pay the IGST liability.

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SGST: The SGST input tax credit cannot be used to pay the CGST liability but can
be used to pay the liability under SGST. Further, the balance of SGST credit
available can be used to pay the IGST liability.

3(2) Data analysis of GST:-

The Prime Minister approved the Constitution Amendment Bill for goods and
service tax”( GST) in the parliament Session (RajyaSabha on 3 August 2016 and
LokSabha on 8 August 2016) along with the ratification by 50% of the state
legislatures. Thus, the current indirect taxes levied by state and Centre are all set
to be replaced with proposed implementation of GST by April 2017.This would be
the biggest tax Reform since Independence and a boon to the economy as it will

Eradicate the shortcomings of the current tax structure and provide a single tax on
supply of all goods and services.

Benefits of GST:-
 Removal of bundled indirect taxes such as VAT, CST, Service tax, CAD, SAD, and
Excise.
 Less tax compliance and a simplified tax policy compared to current tax
structure.
 Removal of cascading effect of taxes i.e. removes tax on tax.
 Reduction of manufacturing costs due to lower burden of taxes on the
manufacturing sector. Hence prices of consumer goods will be likely to come
down.
 Lower the burden on the common man i.e. public will have to shed less money
to buy the same products that were costly earlier.
 Increased demand and consumption of goods.
 Increased demand will lead to increase supply. Hence, this will ultimately lead
to rise in the production of goods.
 Control of black money circulation as the system normally followed by traders
and shopkeepers will be put to a mandatory check.
 Boost to the Indian economy in the long run.

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Goods and Services Tax (GST) Forms for Registration
& Cancellation:-
Sr.No Form Description
Number
1. REG-01 Registration Application u/s 19(1) GST Act, 20
2. REG-02 Acknowledgement
3. REG-03 Information regarding Registration / Amendments / Cancellation
Notice
4. REG-04 Filing application for clarification Registration / Amendment /
Cancellation / Revocation of Cancellation
5. REG-05 Order application for rejection for Registration / Amendment /
Cancellation / Revocation of Cancellation
6. REG-06 Issued registration certificate u/s 19(8A) of the GST Act, 20
7. REG-07 Application for Registration as TDS or TCS u/s 19(1) of the GST
Act, 20
8. REG-08 Order of Cancellation of Application for Registration as TDS /TCS
u/s 21 of the GST Act
9. REG-09 Non-Resident Taxable Person Application for Registration
10. REG-10 Person supplying online information and database access or
retrieval services from a place outside India to a person in India,
other than a registered person Application for registration
11. REG-11 Amendment in Particulars subsequent to Registration Application
12. REG-12 Temporary Registration/ Suo Moto Registration Order of Grant
13. REG-13 Grant of Unique Identity Number (UIN) to UN Bodies/ Embassies
/others Application/Form
14. REG-14 Application for Cancellation of Registration under GST 20
15. REG-15 Amendment Order
16. REG-16 Cancellation of Registration Application
17. REG-17 Cancellation of Registration Show Cause Notice
18. REG-18 Show Cause Notice issued for Cancellation Reply
19. REG-19 Cancellation of Registration Order
20. REG-20 Dropping the proceedings for cancellation of registration Order
21. REG-21 Revocation of Cancellation of Registration Application
22. REG-22 Order for revocation of cancellation of registration

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23. REG-23 Show Cause Notice for rejection of an application for revocation
of cancellation of registration
24. REG-24 Reply to the notice for rejection of an application for revocation of
cancellation of registration
25. REG-25 Provisional Registration Certificate
26. REG-26 Existing Taxpayer Application Enrolment
27. REG-27 Provisional registration Show Cause Notice cancellation
28. REG-28 Provisional registration Order Cancellation
29. REG-29 Provisional registration Application cancellation
30. REG-30 Field Visit Report Form

Goods and Services Tax (GST) Forms for

Composition:-
Sr.No Form Description
Number

1. CMP-01 Notification for the payment of taxes under section 10

(composition scheme)

(Concerning taxpayers registered under the present regime

migrate on the elected day)
2. CMP-02 Notification for the payment of taxes under section 10
(composition scheme)
(Concerning Taxpayers registered under the Act)
3. CMP-03 Notification of stock details from the date of opting
composition scheme
(Concerning taxpayers registered under the present regime
migrate on the elected day)
4. CMP-04 Notification/ Application to opt out from the composition
scheme
5. CMP-05 Notification of denial option for the payment of tax under
composition scheme
6. CMP-06 Responding to the notification to show cause
7. CMP-07 Reply order to accept or reject concerning show cause notice

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List of forms for a GST Practitioner:-
Forms for GST-Practitioner
Form Purpose of Form
FORM GST Application to become a practitioner
PCT-1
FORM GST Certificate of Registration for a GST-Practitioner
PCT-2
Form GST Notice seeking additional information on application for enrollment or
PCT-3 show cause notice issued to GST practitioner for misconduct
Form GST Order of rejection of application for enrollment or disqualification of a
PCT-4 GST practitioner found guilty of misconduct
Form GST List of enrolled GST practitioners maintained on the Common portal
PCT-5
Form GST Authorization of a GST practitioner by a taxable person on the Common
PCT-6 Portal
Form GST Withdrawal of authorization of a GST practitioner by a taxable person
PCT-7
List of Forms for Input Tax Credit (ITC) under GST
ITC Forms
Form Purpose of Form
Form GST Declaration for claim of input tax credit under sub-section (1) of
ITC – 1 section 18.
Form GST Declaration for transfer of ITC in case of sale, merger, demerger,
ITC – 2 amalgamation, lease or transfer of a
business under sub-section (3) of section 18.
Form GST Declaration for intimation of ITC reversal on inputs, inputs contained in
ITC – 3 semi-finished and finished
goods and capital goods in stock under sub-section (4) of section 18.
Form GST Details of goods/capital goods sent to job worker and received back.
ITC – 4

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List of Form for Tax payment under GST:-
Form Purpose of Form
Form GST PMT- Electronic Liability Register of registered person
01 (Part–I: Return related liabilities
Electronic Liability Register of taxable person
(Part–II: Other than return related liabilities)
Form GST PMT- Electronic Credit Ledger
02
Form GST PMT- Order for re-credit of the amount to cash or credit
03 ledger on
rejection of refund claim
Form GST PMT- Application for intimation of discrepancy in Electronic
04 Credit Ledger/Cash Ledger/Liability Register
Form GST PMT- Electronic Cash Ledger
05
Form GST PMT- Challan For Deposit of Goods and Services Tax
06
Form GST PMT- Application for intimating discrepancy in making
07 payment
List of Tax Refund forms under GST:-

Refund forms under GST

Form Purpose of Form
GST Application for Refund
RFD-01
GST Acknowledgement
RFD-02
GST Deficiency Memo
RFD-03
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GST Provisional Refund Order
RFD-04
GST Payment Advice
RFD-05
GST Refund Sanction/ Rejection Order/Interest on delayed refund
RFD-06 order (same as refund order)
GST Order for complete adjustment of sanctioned Refund
RFD-07
GST Notice for rejection of application for refund
RFD-08
GST Reply to show cause notice
RFD-09
GST Application for Refund by any specialize agency of UN or
RFD-10 Multilateral Financial Institution and Organization, Consulate or
Embassy of foreign countries, etc
3(3) Findings & Recommendation:-
Types of GST Returns:
S.No Return Particulars

1. GSTR-1 Details of outward supplies of taxable goods or services or

both effected

2. GSTR-2 Details of inward supplies of taxable goods or services or both

claiming input tax credit

3 GSTR-3 Monthly return on the basis of finalization of details of

outward supplies and inward supplies along with the
payment of amount of tax

4 GSTR-4 Quarterly Return for compounding taxable persons

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 5 GSTR-5 Return for Non-Resident foreign taxable persons

6 GSTR-6 Input Service Distributor return

7 GSTR-7 Return for authorities deducting tax at source

8 GSTR-8 Details of supplies effected through e-commerce operator and

the amount of tax collected as required under sub-section
(52)

9 GSTR-9 Annual Return

10 GSTR-9A Simplified Annual return by Compounding taxable persons

registered under section 10

Due Dates for filing of Return in GST:-

S.No Return Due Date
Form

1. GSTR-1 10th of Next Month

2. GSTR-2 After the 10th but before 15th of Next Month

3 GSTR-3 20th of Next Month

4 GSTR-4 18th from end of the Quarter

5 GSTR-5 20th from end of the month or within 7 days after the last day
of validity of registration whichever is earlier

6 GSTR-6 13th of Next Month

7 GSTR-7 10th of Next Month

8 GSTR-8 10th of Next Month

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 9 GSTR-9 31st December of Next Financial Year

10 GSTR-9A 31st December of Next Financial Year

The GST Council Has Recommended Changes in the

GST Rates on the Following Goods:-
Sl. No. HSN Description Present Recommended
GST Rate
1. 0802 Walnuts, 12% 5%
whether or
not shelled

2. Tamarind 12% 5%
0813 dried

3. 2106 Roasted 12% 5%

Gram

4. 2106 Custard 28% 18%

powder

5. 2106 Batters, 18% 12%

including idli
/ dosa batter

6. 2304,2305 Oil cakes Nil for 5%

7. 2306 Cotton seed Cattle [irrespective of

oil cake feed 5% end use]
for other Nil
uses Nil
for

8. 33074100 Dhoopbatti, cattle feed [irrespective of

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 dhoop, 5% for end use 5%
sambhrani other
uses12%
and

9. 3926 other similar 28% 18%

items

Medical
grade
sterile
disposable

10. 3926 Gloves of 28% 18%

plastics

Plastic
raincoats

11. 4016 Rubber bands 28% 12%

12. 4016 Rice rubber 28% 18%

rolls for
paddy de-
husking

13. 4907 Machine 12% 5%

Duty Credit
Scrips

14. 50 to 55 Khadi fabric, 5% Nil

sold through
Khadi and

15. 5801 Village 12% 5% [with no

industries

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 Commission’s
outlets

16 5808 Saree fall 12% Refund of ITC

5%

17. 6501 Textile caps 18% 12%

18. 6912 Idols made of 28% Nil

clay

19. 44,68,83 Idols of 28% 12%

wood, stone
[including

20. 7102 Rough 3% 0.25%

industrial
diamonds
including

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Recommendation of GST:-
The major recommendations are as detailed below:-
1. Upper limit of turnover for opting for composition scheme to be raised from
Rs. 1 crore to Rs. 1.5 crore. Present limit of turnover can now be raised on the
recommendations of the Council.
2. 2. Composition dealers to be allowed to supply services (other than restaurant
services), for up to a value not exceeding 10% of turnover in the preceding
financial year, or Rs. 5 lakhs, whichever is higher.
3. Levy of GST on reverse charge mechanism on receipt of supplies from
unregistered suppliers, to be applicable to only specified goods in case of
certain notified classes of registered persons, on the recommendations of the
GST Council.

4. The threshold exemption limit for registration in the States of Assam,

Arunachal Pradesh, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand
to be increased to Rs. 20 Lakhs from Rs. 10 Lakhs.

5. Taxpayers may opt for multiple registrations within a State/Union

territory in respect of multiple places of business located within the same
State/Union territory.

6. Mandatory registration is required for only those e-commerce operators

who are required to collect tax at source.

7. Registration to remain temporarily suspended while cancellation of

registration is under process, so that the taxpayer is relieved of continued
compliance under the law.

8. The following transactions to be treated as no supply (no tax payable)

under Schedule III:

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 a) Supply of goods from a place in the non-taxable territory to another place in
the non-taxable territory without such goods entering into India;

b) Supply of warehoused goods to any person before clearance for home

consumption; and

c) Supply of goods in case of high sea sales.

9.Scope of input tax credit is being widened, and it would now be made
available in respect of the following:

a) Most of the activities or transactions specified in Schedule III;

b) Motor vehicles for transportation of persons having seating capacity of

more than thirteen (including driver), vessels and aircraft;

c) Motor vehicles for transportation of money for or by a banking company

or financial institution;

d) Services of general insurance, repair and maintenance in respect of

motor vehicles, vessels and aircraft on which credit is available; and

e) Goods or services which are obligatory for an employer to provide to its

employees, under any law for the time being in force.

10. In case the recipient fails to pay the due amount to the supplier within 180
days from the date of issue of invoice, the input tax credit availed by the recipient
will be reversed, but liability to pay interest is being done away with.

11. Registered persons may issue consolidated credit/debit notes in respect of

multiple invoices issued in a Financial Year.

12. Amount of pre-deposit payable for filing of appeal before the Appellate
Authority and the Appellate Tribunal to be capped at Rs. 25 Crores and Rs. 50
Crores, respectively.

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13. Commissioner to be empowered to extend the time limit for return of inputs
and capital sent on job work, up to a period of one year and two years,
respectively.

14. Supply of services to qualify as exports, even if payment is received in

Indian Rupees, where permitted by the RBI.

15. Place of supply in case of job work of any treatment or process done on
goods temporarily imported into India and then exported without putting them to
any other use in India, to be outside India.

16. Recovery can be made from distinct persons, even if present in different
State/Union territories.

17. The order of cross-utilisation of input tax credit is being rationalised.

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Chapter (4):- conclusion
4(1) conclusion of GST:-
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 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.
Bibliography:-

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