CHAPTER 1: INTRODUCTION

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 INDEX

Sr. No. Particulars Page No

1 Introduction 5

2 Objectives of the study 33

3 Scope and Limitations of the study 37

4 Research Methodology 48

5 Review of Literature 77

6 Data Analysis and Interpretation 78

7 Conclusions, Suggestions and Recommendations 79

8 Bibliography 81

9 Appendix 85

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AN INTRODUCTION – GST IN INDIA BACKGROUND
In any Welfare State, it is the prime responsibility of the Government to fulfill the increasing
developmental needs of the country and its people by way of public expenditure. India, being a
developing economy, has been striving to fulfill the obligations of a Welfare State with its
limited resources; the primary source of revenue being the levy of taxes. Though the collection
of tax is to augment as much revenue as possible to the Government to provide public services,
over the years it has been used as an instrument of fiscal policy to stimulate economic growth.
Thus, taxes are collected to fulfill the socio-economic objectives of the Government.

What is a tax?
A tax may be defined as a "pecuniary burden laid upon individuals or property owners to
support the Government, a payment exacted by legislative authority. A tax "is not a voluntary
payment or donation, but an enforced contribution, exacted pursuant to legislative authority". In
simple words, tax is nothing but money that people have to pay to the Government, which is
used to provide public services.

DIRECT AND INDIRECT TAXES

Taxes are broadly classified into direct and indirect taxes.
Direct Taxes: A direct tax is a kind of charge, which is imposed directly on the taxpayer and
paid directly to the Government by the persons (juristic or natural) on whom it is imposed. A
direct tax is one that cannot be shifted by the taxpayer to someone else. A significant direct tax
imposed in India is income tax.
Indirect Taxes: If the taxpayer is just a conduit and at every stage the tax-incidence is passed on
till it finally reaches the consumer, who really bears the brunt of it, such tax is indirect tax. An
indirect tax is one that can be shifted by the taxpayer to someone else.
Its incidence is borne by the consumers who ultimately consume the product or the service,
while the immediate liability to pay the tax may fall upon another person such as a manufacturer
or provider of service or seller of goods.

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 Also called consumption taxes,
they are regressive in nature
because they are not based on the
principle of ability to pay. All the
consumers, including the
economically challenged bear the
brunt of the indirect taxes equally.
Indirect taxes are levied on
consumption, expenditure,
privilege, or right but not on
income or property. Earlier, a number of indirect taxes were levied in India, namely, excise duty,
customs duty, service tax, central sales tax (CST), value added tax (VAT), entry tax, purchase
tax, entertainment tax, tax on lottery, betting and gambling, luxury tax, tax on advertisements,
etc.
However, indirect taxation in India witnessed a paradigm shift on July 01, 2017 with usherance
into a unified indirect tax regime wherein a large number of Central and State indirect taxes were
amalgamated into a single tax – Goods and Services Tax (GST). The introduction of GST has
been a very significant step in the field of indirect tax reforms in India. Customs duty continues
in post- GST regime.
Economists world over agree that direct and indirect taxes are complementary and therefore, a
rational tax structure should incorporate in itself both types of taxes.
HISTORICAL EVOLUTION OF INDIRECT TAXATION IN POST INDEPENDENCE
INDIA TILL GST:
1 In post-Independence period, central excise duty was levied on a few commodities which
were in the nature of raw materials and intermediate inputs, and consumer goods were outside
the net by and large. The first set of reform was suggested by the Taxation Enquiry Commission
(195354) under the chairmanship of Dr. John Matthai. The Commission recommended that sales
tax should be used specifically by the States as a source of revenue with Union governments'
intervention allowed generally only in case of inter-State sales. It also recommended levy of a
tax on inter-State sales subject to a ceiling of 1%, which the States would administer and also
retain the revenue.
2 The power to levy tax on sale and purchase of goods in the course of inter State trade and
commerce was assigned to the Union by the Constitution (Sixth Amendment) Act, 1956. By
mid-1970s, central excise duty was extended to most manufactured goods. Central excise duty
was levied on unit, called specific duty, and on value, called ad valorem duty. The number of
rates was too many with no offsetting of taxes paid on inputs leading to significant cascading
and classification disputes.

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 3 The Indirect Taxation Enquiry Committee constituted in 1976 under Shri L K Jha
recommended, inter alia, converting specific rates into ad valorem rates, rate consolidation and
input tax credit mechanism of value added tax at manufacturing level (MANVAT).

In 1986, the recommendation of the Jha Committee on moving on to value added tax in
manufacturing was partially implemented. This was called modified value added tax
(MODVAT). In principle, duty was payable on value addition but in the beginning it was limited
to select inputs and manufactured goods only with one-to-one correlation between input and
manufactured goods for eligibility to take input tax credit. The comprehensive coverage of
MODVAT was achieved by 1996-97.
4 The next wave of reform in indirect tax sphere came with the New Economic Policy of
1991. The Tax Reforms Committee under the chairmanship of Prof. Raja J Chelliah was
appointed in 1991. This Committee recommended broadening of the tax base by taxing services
and pruning exemptions, consolidation and lowering of rates, extension of MODVAT on all
inputs including capital goods. It suggested that reform of tax structure must have to be
accompanied by a reform of tax administration, if complete benefits were to be derived from the
tax reforms. Many of the recommendations of the Chelliah Committee were implemented. In
1999-2000, tax rates were merged in three rates, with additional rates on a few luxury goods. In
2000-01, three rates were merged into one rate called Central Value Added Tax (CENVAT). A
few commodities were subjected to special excise duty.
5 Taxation of services by the Union was introduced in 1994 bringing in its ambit only three
services, namely general insurance, telecommunication and stock broking. Gradually, more and
more services were brought into the fold. Over the next decade, more and more services were
brought under the tax net. In 1994, tax rate on three services was 5% which gradually increased
and in 2017 it was 15% (including cess). Before 2012, services were taxed under a ‗positive list
‘approach. This approach was prone to ‗tax avoidance‘. In 2012 budget, negative list approach
was adopted where 17 services were out of taxation net and all other services were subject to
tax. In 2004, the input tax credit scheme for CENVAT and Service Tax was merged to permit
cross utilization of credits across these taxes.
6 Before state level VAT was introduced by States in the first half of the first decade of this
century, sales tax was levied in States since independence. Sales tax was plagued by some
serious flaws. It was levied by States in an uncoordinated manner the consequences of which
were different rates of sales tax on different commodities in different States. Rates of sales tax
were more than ten in some States and these varied for the same commodity in different States.
Inter-state sales were subjected to levy of Central Sales Tax. As this tax was appropriated by the
exporting State credit was not allowed by the dealer in the importing State. This resulted into
exportation of tax from richer to poorer states and also cascading of taxes. Interestingly, States
had power of taxation over services from the very beginning. States levied tax on
advertisements, luxuries, entertainments, amusements, betting and gambling.

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 7 A report, titled "Reform of Domestic Trade Taxes in India", on reforming indirect taxes,
especially State sales tax, by National Institute of Public Finance and Policy under the leadership
of Dr. Amaresh Bagchi, was prepared in 1994. This Report prepared the ground for
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implementation of VAT in States. Some of the key recommendations were; replacing sales tax by
VAT by moving over to a multistage system of taxation; allowing input tax credits for all inputs,
including on machinery and equipment; harmonization and rationalization of tax rates across
States with two or three rates within specified bands; pruning of exemptions and concessions
except for a basic threshold limit and items like unprocessed food; zero rating of exports, inter-
State sales and consignment transfers to registered dealers; taxing inter-State sales to non-
registered persons as local sales; modernization of tax administration, computerization of
operations and simplification of forms and procedures.
9 The first preliminary discussion on transition from sales tax regime to VAT regime took
place in a meeting of Chief Ministers convened by the Union Finance Minister in 1995. A
standing Committee of State Finance Ministers was constituted, as a result of meeting of the
Union Finance Ministers and Chief Ministers in November, 1999, to deliberate on the design of
VAT which was later made the Empowered Committee of State Finance Ministers (EC).
Haryana was the first State to implement VAT, in 2003. In 2005, VAT was implemented in most
of the states. Uttar Pradesh was the last State to implement VAT, from 1st January, 2008.

FEATURES OF INDIRECT TAXES

i. An important source of revenue: Indirect taxes are a major source of tax revenues for
Governments worldwide and continue to grow as more countries move to consumption
oriented tax regimes. In India, indirect taxes contribute more than 50% of the total tax
revenues of Central and State Governments.
ii. Tax on commodities and services: It is levied on commodities at the time of
manufacture or purchase or sale or import/export thereof. Hence, it is also known as
commodity taxation. It is also levied on provision of services.
iii. Shifting of burden: There is a clear shifting of tax burden in respect of indirect taxes.
For example, GST paid by the supplier of the goods is recovered from the buyer by
including the tax in the cost of the commodity.
iv. No perception of direct pinch: Since, value of indirect taxes is generally inbuilt in the
price of the commodity, most of the time the tax payer pays the same without actually
knowing that he is paying tax to the Government. Thus, tax payer does not perceive a
direct pinch while paying indirect taxes.
v. Inflationary: Tax imposed on commodities and services causes an all-round price
spiral. In other words, indirect taxation directly affects the prices of commodities and
services and leads to inflationary trend.
vi. Wider tax base: Unlike direct taxes, the indirect taxes have a wide tax base. Majority
of the products or services are subject to indirect taxes with low thresholds.
vii. Promotes social welfare: High taxes are imposed on the consumption of harmful
products (also known as ‘sin goods’) such as alcoholic products, tobacco products etc.

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 This not only checks their consumption but also enables the State to collect substantial
revenue.

Regressive in nature: Generally, the indirect taxes are regressive in nature. The rich and
the poor have to pay the same rate of indirect taxes on certain commodities of mass

viii. consumption. This may further increase the income disparities between the rich and the
poor.
GENESIS OF GST IN INDIA
❖ In the year 2000, the then Prime Minister mooted the concept of GST and set up a committee
to design a Goods and Services Tax (GST) model for the country. In 2003, the Central
Government formed a task force under Vijay Kelkar, which in 2004 strongly recommended
fully integrated ‘GST’ on national basis.

❖ Subsequently, the then Union Finance Minister, Shri P. Chidambaram, while presenting the
Union Budget (2006-2007), announced that GST would be introduced from April 1, 2010.
Since then, GST missed several deadlines and continued to be shrouded by the clouds of
uncertainty.

❖ The talks of ushering in GST, however, gained momentum in the year 2014 when the NDA
Government tabled the Constitution (122nd Amendment) Bill, 2014 on GST in the
Parliament on 19th December, 2014. The Lok Sabha passed the Bill on 6th May, 2015 and
Rajya Sabha on 3rd August, 2016. Subsequent to ratification of the Bill by more than 50%
of the States, Constitution (122nd Amendment) Bill, 2014 received the assent of the
President on 8th September, 2016 and became Constitution (101st Amendment) Act,
2016, which paved the way for introduction of GST in India.

❖ In the following year, on 27th March, 2017, the Central GST legislations - Central Goods
and Services Tax Bill, 2017, Integrated Goods and Services Tax Bill, 2017, Union Territory
Goods and Services Tax Bill, 2017 and Goods and Services Tax (Compensation to States)
Bill, 2017 were introduced in Lok Sabha. Lok Sabha passed these bills on 29th March,
2017 and with the receipt of the President’s assent on 12th April, 2017, the Bills were
enacted. The enactment of the Central Acts was followed by the enactment of the State
GST laws by various State Legislatures. Telangana, Rajasthan, Chhattisgarh, Punjab, Goa
and Bihar were among the first ones to pass their respective State GST laws. By 30th June,
2017, all States and Union Territories had passed their respective SGST and UTGST Acts
except Jammu and Kashmir. With effect from 1st July, 2017, the historic indirect tax
reform - GST was introduced. GST law was extended to Jammu and Kashmir on 8th July,
2017.

❖ GST is a path breaking indirect tax reform which attempts to create a common national
market. GST has subsumed multiple indirect taxes like excise duty, service tax, VAT, CST,
luxury tax, entertainment tax, entry tax, etc.

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❖ VAT and GST are often used inter-changeably as the latter denotes comprehensiveness of

VAT by coverage of goods and services. France was the first country to implement
VAT/GST in 1954. Presently, more than 160 countries have implemented VAT/GST in
some form or the other because this tax has thecapacity to raise revenue in the most
transparent and neutral manner. Most of the countries follow unified GST i.e., a single tax
applicable throughout the country. However, in federal polities like Brazil and Canada, a
dual GST system is prevalent. Under dual system, GST is levied by both the federal and
the State Governments. India, too, has adopted a dual GST.

INTERNATIONAL PERSPECTIVES ON GST / VAT:

1 VAT and GST are used inter-changeably as the latter denotes comprehensiveness of VAT by
coverage of goods and services. France was the first country to implement VAT, in 1954. Presently,
more than 160 countries have implemented GST / VAT in some form or the other. The most
popular form of VAT is where taxes paid on inputs are allowed to be adjusted in the liability at the
output. The VAT or GST regime in practice varies from one country to another in terms of its
technical aspects like ‗definition of supply‘, ‗extent of coverage of goods and services‘, ‗treatment
of exemptions and zero rating‘ etc. However, at a broader level, it has one common principle, it is a
destination based consumption tax. From economic point of view, VAT is considered to be a
superior system over sales tax of taxing consumption because the former is neutral in allocation of
resources as it taxes value addition. Besides, there are certain distinct advantages of VAT. It is less
cascading making the taxation system transparent and anti-inflationary. From revenue point of
view, VAT leads to greater compliance because of creation of transaction trails.

2 When compared globally, VAT structures are either overly centralized where tax is levied and
administered by the Central government (Germany, Switzerland, Austria), or dual GST structure
wherein both Centre and States administer tax independently (Canada) or with some co-ordination
between the national and sub-national entities (Brazil, Russia). While a centralized structure reduces
fiscal autonomy for the States, a decentralized structure enhances compliance burden for the
taxpayers. Canada is a federal country with unique model of taxation in which certain provinces
have joined federal GST and others have not. Provinces which administer their taxes separately are
called ‗non participating provinces‘, whereas provinces which have teamed up with the Federal
Government for tax administration are called ‗participating provinces‘.

3 The rate of GST varies across countries. While Malaysia has a lower rate of 6% (Malaysia
though scrapped GST in 2018 due to popular uproar against it), Hungary has one of the highest rate
of 27%. Australia levies GST at the rate of 10% whereas Canada has multiple rate slabs. The
average rate of VAT across the EU is around 19.5%.

GST: A HISTORICAL PERSPECTIVE:

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 The Kelkar Task Force on Fiscal Responsibility and Budget Management (FRBM) recommended in
2005 introduction of a comprehensive tax on all goods and service replacing Central level VAT and
State level VATs. It recommended replacing all indirect taxes except the customs duty.

1 In the year 2000, the then Prime Minister introduced the concept of GST and set up a committee
to design a GST model for the country. In 2003, the Central Government formed a taskforce on Fiscal
Responsibility and Budget Management, which in 2004 recommended GST to replace the existing tax
regime by introducing a comprehensive tax on all goods and services replacing Central level VAT and
State level VATs. It recommended replacing all indirect taxes except the customs duty with value
added tax on all goods and services with complete set off in all stages of the value chain. An
announcement was made by the then Union Finance Minister in Budget (2006-07) to the effect that
GST would be introduced with effect from April 1, 2010 and that the EC, on his request, would work
with the Central Government to prepare a road map for introduction of GST in India. After this
announcement, the EC decided to set up a Joint Working Group in May 10, 2007, with the then
Adviser to the Union Finance Minister and Member-Secretary of the Empowered Committee as its
Coconveners and four Joint Secretaries of the Department of Revenue of Union Finance Ministry and
all Finance Secretaries of the States as its members. This Joint Working Group got itself divided into
three Sub-Groups and had several rounds of internal discussions as well as interaction with experts and
representatives of Chambers of Commerce & Industry. On the basis of these discussions and
interaction, the Sub-Groups submitted their reports which were then integrated and consolidated into
the report of Joint Working Group (November 19, 2007).

2 This report was discussed in detail in the meeting of the EC on November 28, 2007, and the
States were also requested to communicate their observations on the report in writing. On the basis of
these discussions in the EC and the written observations, certain modifications were considered
necessary and were discussed with the Co-conveners and the representatives of the Department of
Revenue of Union Finance Ministry. With the modifications duly made, a final version of the views of
EC on the model and road map for the GST was prepared (April 30, 2008). These views of EC were
then sent to the Government of India, and the comments of Government of India were received on
December 12, 2008. These comments were duly considered by the EC (December 16, 2008), and it
was decided that a Committee of Principal Secretaries/Secretaries of Finance/Taxation and
Commissioners of Trade Taxes of the States would be set up to consider these comments, and submit
their views. These views were submitted and were accepted in principle by the EC (January 21, 2009).
Based on discussions within the EC and between the EC and the Central Government, the EC released
its First Discussion Paper (FDP) on GST in November, 2009. This spelled out the features of the
proposed GST and has formed the basis for discussion between the Centre and the States.

CHALLENGES IN DESIGNING GST:

1 In the discussion that preceded amendment in the Constitution for GST, there were a number of
thorny issues that required resolution and agreement between Central Government and State
Governments. Implementing a tax reform as vast as GST in a diverse country like India required the

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reconciliation of interests of various States with that of the Centre. Some of the challenging issues,
addressed in the run up to GST, were the following:

Origin-based versus Destination-based taxation: GST is a destination-based consumption tax. Under

destination based taxation, tax accrues to the destination place where consumption of the goods

1.1 An argument put forward on behalf of producing states in support of origin based taxation is
that they need to collect at least some tax from inter-State sales in order to recover the cost of
infrastructure and public services provided by the State Governments to the industries producing the
goods which are consumed in other states. This line of reasoning is based on the assumption that in the
absence of a tax on inter-State sales, the location of export industries within their jurisdiction would
not contribute to the tax revenues of the exporting state. This view was missing the fact that any value
addition in a jurisdiction necessarily means extra income in the hands of the residents of that
jurisdiction. Spending of this income on consumer goods expands the sales tax base of the producing
states and thereby contributes to their revenues. In fact, to the extent that consumer expenditures are
dependent on the level of income of the residents of a State, it is the producing States that stand to gain
the most in additional sales tax revenues (even under the destination basis of consumption taxes) from
increased export output.

2 Rate Structure and Compensation: There was uncertainty about gains in revenue after
implementation of GST. Though attempts were made to estimate a revenue neutral rate, nonetheless it
remains an estimate only. It was difficult to estimate accurately as to how much the States will gain
from tax on services and how much they will lose on account of removal of cascading effect and
phasing out of CST. In view of this, States asked for compensation during the first five years of
implementation of GST.

2.1 A Committee headed by the Chief Economic Adviser Dr. Arvind Subramanian on possible tax
rates under GST suggested RNR (Revenue Neutral Rate). The term RNR refers to that single rate,
which preserves revenue at desired (current) levels. This would differ from the standard rate, which is
the rate that would apply to a majority of goods and services. In practice, there will be a structure of
rates, but for the sake of analytical clarity and precision it is appropriate to think of the RNR as a
single rate. It is a given single rate that gets converted into a whole rate structure, depending on policy
choices about exemptions, what commodities to charge at a lower rate and what to charge at a very
high rate.

2.2 The Committee recommended RNR of 15-15.5% (to be levied by the Centre and States
combined). The lower rates (to be applied to certain goods consumed by the poor) should be 12%.

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Further, the sin or demerit rates (to be applied on luxury cars, aerated beverages, pan masala, and
tobacco) should be 40%.

3 Dispute Settlement: A harmonized system of taxation necessarily required that all stakeholders
stick to the decisions taken by the supreme body, which was later constituted as the Goods and
Services Tax Council (the Council). However, the possibility of departure from the recommendations
of such body cannot be completely ruled out. Any departure would definitely affect other stakeholders
and in such circumstances there must be a statutory body to which affected parties may approach for
dispute resolution. The nature of such dispute resolution body was a bone of contention. Under the
Constitution (One Hundred Fifteenth Amendment) Bill, 2011, a Goods and Services Tax Dispute
Settlement Authority was to be constituted for this purpose. This body was judicial in nature. The
proposed constitution of this Authority was challenged because its powers would override the
supremacy of the

Parliament and the State Legislatures. The Constitution (One Hundred Twenty Second Amendment)
Bill, 2014 departed from the previous GST amendment bill and proposed that the Goods and Services
Tax Council may decide about the modalities to resolve disputes arising out of its recommendations.

4 Alcohol and Petroleum products: Alcoholic liquor for human consumption and petroleum
products are major contributor to revenue of States. As States were uncertain about impact of GST on
their finances and moreover loss of autonomy in collection of tax revenue, States unanimously argued
for exclusion of these products from the ambit of GST. In the 115th Amendment Bill alcoholic liquor
for human consumption and five petroleum products namely crude petroleum, high speed diesel, motor
spirit or petrol, aviation turbine fuel and natural gas were kept out of GST. But in the 122nd
Amendment Bill, only alcoholic liquor for human consumption was kept outside GST and above
mentioned five petroleum products were proposed to be brought under GST from a date to be
recommended by the Council. The Central Government has also retained its power to tax tobacco and
tobacco products, though these are also under GST. Thus, to ensure smooth transition and provide
fiscal buffer to States, it was agreed to keep alcohol completely out of the ambit of GST.

12. ROLE OF CBIC:

1 CBIC is playing an active role in the drafting of GST law and procedures,
particularly the CGST and IGST law, which will be exclusive domain of the Centre.
This apart, the CBIC has prepared itself for meeting the implementation challenges,
which are quite formidable. The number of taxpayers has gone up significantly. The
existing IT infrastructure of CBIC has been suitably scaled up to handle such large
volumes of data. Based on the legal provisions and procedure for GST, the content of
work-flow software such as ACES (Automated Central Excise & Service Tax) would
require re-engineering. The name of IT project of CBIC under GST is ‗SAKSHAM‘
involving a total project value of Rs. 2,256 Cr.

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2 Augmentation of human resources would be necessary to handle large taxpayers‘
base in GST scattered across the length and breadth of the country. Capacity building,
particularly in the field of Accountancy and Information Technology for the
departmental officers has to be taken up in a big way. A massive four-tier training
programme has been conducted under the leadership of NACIN. This training project
is aimed at imparting training on GST law and procedures to more than 60,000
officers of CBIC and Commercial Tax officers of State Governments.
3 CBIC would be responsible for administration of the CGST and IGST law. In
addition, excise duty regime would continue to be administered by the CBIC for levy
and collection of central excise duty on five specified petroleum products as well as
on tobacco products. CBIC would also continue to handle the work relating to levy
and collection of customs duties.

4 Director General of Anti-profiteering, CBIC has been mandated to conduct

detailed enquiry on anti-profiteering cases and should give his recommendation for
consideration of the National Anti-profiteering Authority.
5 CBIC has been instrumental in handholding the implementation of GST. It had
set up the Feedback and Action Room which monitored the GST implementation
challenges faced by the taxpayer and act as an active interface between the taxpayer
and the Government.

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CONCEPT OF GST

Before we proceed with the finer nuances of Indian GST, let us first understand the basic
concept of GST.
 GST is a value added tax levied on manufacture, sale and consumption of goods and
services.
 GST offers comprehensive and continuous chain of tax credits from the producer's
point/service provider's point up to the retailer's level/consumer’s level thereby taxing
only the value added at each stage of supply chain.
 The supplier at each stage is permitted to avail credit of GST paid on the purchase of
goods and/or services and can set off this credit against the GST payable on the supply of
goods and services to be made by him. Thus, only the final consumer bears the GST
charged by the last supplier in the supply chain, with set-off benefits at all the previous
stages.
 Since, only the value added at each stage is taxed under GST, there is no tax on tax or
cascading of taxes under GST system. GST does not differentiate between goods and
services and thus, the two are taxed at a single rate.

NEED FOR GST IN INDIA

Under the earlier indirect tax regime, despite the introduction of the principle of taxation of value
added in India – at the Central level in the form of CENVAT and at the State level in the form of
State VAT - its application always remained piecemeal and fragmented on account of the
following reasons:
 Double taxation of a transaction as both goods and services as the distinction between
goods and services was often blurred, e.g. software was liable to both VAT and service
tax.

 CENVAT did not include chain of value addition in the distributive trade below the stage
of production. Similarly, in the State-level VAT, CENVAT load on the goods was not
removed leading to the cascading of taxes. To illustrate, when the goods were
manufactured and sold, both central excise duty (CENVAT) and State-Level VAT were
levied.
 Though CENVAT and State-Level VAT were essentially value added taxes, set off of
one against the credit of another was not possible as CENVAT was a central levy and
State- Level VAT was a State levy.
 There were several taxes in the States, such as, Luxury Tax, Entertainment Tax, etc.
which were not subsumed in the VAT.
 VAT on goods was not integrated with tax on services, at the State level, to remove the
cascading effect of service tax. With service sector being the fastest growing sector in the
economy, the exclusion of services from the tax base of the States potentially eroded their
tax- buoyancy.
 CST was another source of distortion in terms of its cascading nature since it was non-
VATABLE. Being an origin based tax, CST was also against one of the basic principles
of consumption taxes that tax should accrue to the jurisdiction where consumption takes
place.
 A comprehensive tax structure covering both goods and services viz. Goods and Services
Tax (GST) addresses the above-mentioned problems. Simultaneous introduction of GST
at both Centre and State levels has integrated taxes on goods and services for the purpose
of set-off relief and ensures that both the cascading effects of CENVAT and service tax
are removed and a continuous chain of set-off from the original producer’s point/ service
provider’s point up to the retailer’s level/ consumer’s level is established.
 In the GST regime, the major indirect taxes have been subsumed in the ambit of GST.
The erstwhile concepts of manufacture or sale of goods or rendering of services are no
longer applicable since the tax is now levied on “Supply of Goods and/or services”.
 FRAMEWORK OF GST AS INTRODUCED IN INDIA
I. Dual GST:
 India has adopted a Dual GST model in view of the federal structure of the country.
Consequently, Centre and States simultaneously levy GST on taxable supply of goods
or services or both, which takes place within a State or Union Territory. Thus, tax is
imposed concurrently by the Centre and States, i.e. Centre and States simultaneously
tax goods and services. Now, the Centre also has the power to tax intra-State sales &
States are also empowered to tax services. GST extends to whole of India including
the State of Jammu and Kashmir. II. CGST/SGST/UTGST/IGST
 GST is a destination-based tax applicable on all transactions involving supply of
goods and services for a consideration subject to exceptions thereof. GST in India
comprises of Central Goods and Services Tax (CGST) - levied and collected by
Central Government, State Goods and Services Tax (SGST) - levied and collected by
State
Governments/Union Territories with Legislatures and Union Territory Goods and
Services Tax (UTGST) - levied and collected by Union Territories without
Legislatures, on intra-State supplies of taxable goods and/or services.
 Inter-State supplies of taxable goods and/or services are subject to Integrated Goods
and Services Tax (IGST). IGST is the sum total of CGST and SGST/UTGST and is
levied by Centre on all inter-State supplies.
III. Legislative Framework
 There is single legislation – CGST Act, 2017 - for levying CGST. Similarly, Union
Territories without Legislatures [Andaman and Nicobar Islands, Lakshadweep, Dadra
and Nagar Haveli, Daman and Diu and Chandigarh] are governed by UTGST Act,
2017 for levying UTGST. States and Union territories with their own legislatures
[Delhi and Puducherry] have their own GST legislation for levying SGST.
 Though there are multiple SGST legislations, the basic features of law, such as
chargeability, definition of taxable event and taxable person, classification and
valuation of goods and services, procedure for collection and levy of tax and the like
are uniform in all the SGST legislations, as far as feasible. This is necessary to
preserve the essence of dual GST.
IV. Classification of goods and services
 HSN (Harmonized System of Nomenclature) is used for classifying the goods under
the GST. Chapters referred in the Rate Schedules for goods are the Chapters of the
First Schedule to the Customs Tariff Act, 1975.
 A new Scheme of Classification of Services has been devised wherein the services of
various descriptions have been classified under various sections, headings and groups.
Each group consists of various Service Codes (Tariff).
V. Composition Scheme
 In GST regime, tax (i.e. CGST and SGST/UTGST for intra-State supplies and IGST
for inter-State supplies) is payable by every taxable person and in this regard
provisions have been prescribed in the law.
 However, for providing relief to small businesses, primarily manufacturers, suppliers
of food articles, traders, etc. making intra-State supplies, a simpler method of paying
taxes is prescribed, known as Composition Levy. Further, for small service providers
also, a scheme prescribing concessional rate of tax has been formulated. VI.
Registration
 Every supplier of goods and/ or services is required to obtain registration in the
State/UT from where he makes the taxable supply if his aggregate turnover exceeds
the threshold limit during a FY.
 States with threshold limit of Rs 10 lakh for both goods and services. (Manipur,
Mizoram, Nagaland and Tripura)
 States with threshold limit of Rs 20 lakh for both goods and services. (Arunachal
Pradesh, Meghalaya, Sikkim, Uttarakhand, Puducherry and Telangana)
 States with threshold limit of Rs 20 lakh for services and Rs 40 lakh for goods.
(Jammu and Kashmir, Assam, Himachal Pradesh and All other states)  Persons
engaged exclusively in intra state supply of goods. VII. Exemptions
 Apart from providing relief to small-scale business, the law also contains provisions
for granting exemption from payment of tax on essential goods and/or services. VIII.
Seamless flow of credit
 Since GST is a destination based consumption tax, revenue of SGST ordinarily
accrues to the consuming States. The inter-State supplier in the exporting State is
allowed to set off the available credit of IGST, CGST and SGST/UTGST (in that
order) against the IGST payable on inter-State supply made by him.
 The buyer in the importing State is allowed to avail the credit of IGST paid on inter-
State purchases made by him. Thus, unlike the earlier scenario where the credit chain
used to break in case of inter-State sales on account of non-VATable CST, under
GST regime there is a seamless credit flow in case of inter-State supplies too.
 The revenue of inter-State sale does not accrue to the exporting State and the
exporting State transfers to the Centre the credit of SGST/UTGST used in payment of
IGST.
 The Centre transfers to the importing State the credit of IGST used in
payment of SGST/UTGST.
IX. GST Common Portal
 Before GST, since, the Centre and State indirect tax administrations worked under
different laws, regulations, procedures and formats, their IT infrastructure and
systems were also independent of each other. Integrating them for GST
implementation was complex since it required integrating the entire indirect tax
ecosystem so as to bring all the tax administrations (Centre, State and Union
Territories) to the same level of IT maturity with uniform formats and interfaces for
taxpayers and other external stakeholders.
 Besides, GST being a destination-based tax, the inter-State trade of goods and
services (IGST) needed a robust settlement mechanism amongst the States and the
Centre. A Common Portal was needed which could act as a clearing house and verify
the claims and inform the respective Governments to transfer the funds. This was
possible only with the help of a strong IT Infrastructure.
 Resultantly, Common GST Electronic Portal – www.gst.gov.in – a website managed
by Goods and Services Network (GSTN) [a company incorporated under the
provisions of section 8 of the Companies Act, 2013] is set by the Government to
establish a uniform interface for the tax payer and a common and shared IT
infrastructure between the Centre and States.
 The GST portal is accessible over Internet (by taxpayers and their CAs/Tax
Advocates etc.) and Intranet by Tax Officials etc. The portal is one single common
portal for all GST related services.
 A common GST system provides linkage to all State/ UT Commercial Tax
Departments, Central Tax authorities, Taxpayers, Banks and other stakeholders. The
eco-system consists of all stakeholders starting from taxpayer to tax professional to
tax officials to GST portal to Banks to accounting authorities.
 The functions of the GSTN include facilitating registration; forwarding the returns to
Central and State authorities; computation and settlement of IGST; matching of tax
payment details with banking network; providing various MIS reports to the Central
and the State Governments based on the taxpayer return information; providing
analysis of taxpayers' profile.
 However, it is important to note that the Common GST Electronic Portal for
furnishing electronic way bill is www.ewaybillgst.gov.in [managed by the National
Informatics Centre, Ministry of Electronics & Information Technology, Government
of India]. E- way bill is an electronic document generated on the GST portal
evidencing movement of goods.
X. GSPs/ASPs
 GSTN has selected certain IT, ITeS and financial technology companies, to be called
GST Suvidha Providers (GSPs). GSPs develop applications to be used by taxpayers
for interacting with the GSTN.
 They facilitate the tax payers in uploading invoices as well as filing of returns and act
as a single stop shop for GST related services.
 They customize products that address the needs of different segment of users. GSPs
may take the help of Application Service Providers (ASPs) who act as a link between
taxpayers and GSPs. XI. Compensation Cess
 A GST Compensation Cess at specified rate has been imposed under the Goods and
Services Tax (Compensation to States) Cess Act, 2017 on the specified luxury items
or demerit goods, like pan masala, tobacco, aerated waters, motor cars etc., computed
on value of taxable supply. Compensation cess is leviable on intra-State supplies and
inter- State supplies with a view to provide for compensation to the States for the loss
of revenue arising on account of implementation of the GST. XII. GST – A tax on
goods and services
 GST is levied on all goods and services, except alcoholic liquor for human
consumption and petroleum crude, diesel, petrol, ATF and natural gas.
 Alcoholic liquor for human consumption: is outside the realm of GST. The
manufacture/production of alcoholic liquor continues to be subjected to State excise
duty and inter-State/intra-State sale of the same is subject to CST/VAT respectively.
 Petroleum crude, diesel, petrol, ATF and natural gas: As regards petroleum crude,
diesel, petrol, ATF and natural gas are concerned, they are not presently leviable to
GST. GST will be levied on these products from a date to be notified on the
recommendations of the GST Council.
 Till such date, central excise duty continues to be levied on manufacture/production
of petroleum crude, diesel, petrol, ATF and natural gas and inter-State/intra-State sale
of the same is subject to CST/ VAT respectively.
Tobacco: Tobacco is within the purview of GST, i.e. GST is leviable on tobacco.
However, Union Government has also retained the power to levy excise duties on
tobacco and tobacco products manufactured in India. Resultantly, tobacco is subject
to GST as well as central excise duty.
 Further, real estate sector has been kept out of ambit of GST, i.e., GST will not be
levied on sale/purchase of immovable property.
BENEFITS OF GST
GST is a win-win situation for the entire country. It brings benefits to all the stakeholders of industry,
Government and the consumer. The significant benefits of GST are discussed hereunder:
Benefits to economy
 Creation of unified national market: GST aims to make India a common market
with common tax rates and procedures and remove the economic barriers thus paving
the way for an integrated economy at the national level.
 Boost to ‘Make in India' initiative: GST gives a major boost to the ‘Make in India'
initiative of the Government of India by making goods and services produced in India
competitive in the national as well as international market. This will create India as a
— Manufacturing hub.
 Enhanced investment and employment: The subsuming of major Central and State
taxes in GST, complete and comprehensive setoff of input tax on goods and services
and phasing out of Central Sales Tax (CST) reduces the cost of locally manufactured
goods and services and increases the competitiveness of Indian goods and services in
the international market and thus, gives boost to investments and Indian exports. With
a boost in exports and manufacturing activity, more employment is generated and
GDP is increased.
Simplified tax structure
 Ease of doing business: Simpler tax regime with fewer exemptions along with
reduction in multiplicity of taxes under GST has led to simplification and uniformity.
The uniformity in laws, procedures and tax rates across the country makes doing
business easier.
 Certainty in tax administration: Common system of classification of goods and
services ensures certainty in tax administration across India. Easy tax compliance
 Automated procedures with greater use of IT: There are simplified and automated
procedures for various processes such as registration, returns, refunds, tax payments.
All interaction is through the common GSTN portal, therefore, less public interface
between the taxpayer and the tax administration.
 Reduction in compliance costs: The compliance cost is lesser under GST as
multiple record-keeping for a variety of taxes is not needed, therefore, there is lesser
investment of resources and manpower in maintaining records. The uniformity in
laws, procedures and tax rates across the country goes a long way in reducing the
compliance cost.
Advantages for trade and industry
 Benefits to agriculture and Industry: GST has given more relief to industry, trade
and agriculture through a more comprehensive and wider coverage of input tax set-off
 and service tax set-off, subsuming of several Central and State taxes in the GST and
phasing out of CST. The transparent and complete chain of set-offs which results in

widening of tax base and better tax compliance also leads to lowering of tax burden
on an average dealer in industry, trade and agriculture.
 Mitigation of ill effects of cascading: By subsuming most of the Central and State
taxes into a single tax and by allowing a set-off of prior-stage taxes for the
transactions across the entire value chain, it helps in mitigating the ill effects of
cascading, improving competitiveness and improving liquidity of the businesses.
 Benefits to small traders and entrepreneurs: GST has increased the threshold for
GST registration for small businesses. Further, single registration is needed in one
State. Small businesses have also been provided the additional benefit of composition
scheme. With the creation of a seamless national market across the country, small
enterprises have an opportunity to expand their national footprint with minimal
investment.

CONSTITUTIONAL PROVISIONS
India has a three-tier federal structure, comprising the Union Government, the State Governments
and the Local Government.
The power to levy taxes and duties is distributed among the three tiers of Governments, in
accordance with the provisions of the Indian Constitution.
The Constitution of India is the supreme law of India. It consists of a Preamble, 25 parts containing
448 Articles and 12 Schedules.
Power to levy and collect taxes whether, direct or indirect emerges from the Constitution of
India. In case any tax law, be it an act, rule, notification or order is not in conformity with the
Constitution, it is called ultra vires the Constitution and is illegal and void.
Thus, a study of the basic provisions of the Constitution is essential for understanding the genesis of
the various taxes being imposed in India.
The significant provisions of the Constitution relating to taxation are:
I. Article 265: Article 265 of the Constitution of India prohibits arbitrary collection of tax. It
states that “no tax shall be levied or collected except by authority of law”. The term “authority
of law” means that tax proposed to be levied must be within the legislative competence of the
Legislature imposing the tax.
II. Article 245: Part XI of the Constitution deals with relationship between the Union and States.
The power for enacting the laws is conferred on the Parliament and on the Legislature of a
State by Article 245 of the Constitution. The said Article provides as under:
 Subject to the provisions of this Constitution, Parliament may make laws for the whole or
any part of the territory of India, and the legislature of a State may make laws for the whole
or any part of the State.
  No law made by the Parliament shall be deemed to be invalid on the ground that it would
have extra-territorial operation.

III. Article 246: It gives the respective authority to Union and State Governments for levying tax.
Whereas Parliament may make laws for the whole of India or any part of the territory of India, the
State Legislature may make laws for whole or part of the State.
IV. Seventh Schedule to Article 246: It contains three lists which enumerate the matters under
which the Union and the State Governments have the authority to make laws
Entries 82 to 91 of List I enumerate the subjects where the Central Government has power to
levy taxes. Entries 45 to 63 of List II enumerate the subjects where the State Governments have
the power to levy taxes. Parliament has a further power to make any law for any part of India not
comprised in a State even if such matter is included in the State List.
Income tax is levied by virtue of Entry 82 - Taxes on income other than agricultural income and
customs duty vide Entry 83 - Duties of customs including export duties of the Union List.
Power to levy Goods and Services Tax (GST) has been conferred by Article 246A of the
Constitution which was introduced by the Constitution (101st Amendment) Act, 2016. Before
discussing the significant provisions of the Constitution (101st Amendment) Act, 2016, let us
first understand why there arose a need for such constitutional amendment.
Need for constitutional amendment
The Constitutional provisions hitherto had delineated separate powers for the Centre and the
States to impose various taxes. Whereas the Centre levied excise duty on all goods produced or
manufactured in India, the States levied Value Added Tax once the goods entered the stream of
trade upon completion of manufacture.
In the case of inter-State sales, the Centre had the power to levy a tax (the Central Sales Tax), but
the tax was collected and retained entirely by the States. Services were exclusively taxed by the
Centre together with applicable cesses, if any. Besides, there were State specific levies like entry
tax, Octroi, luxury tax, entertainment tax, lottery and betting tax, local taxes levied by
Panchayats etc.
With respect to goods imported from outside the country into India, Centre levied basic customs duty
and additional duties of customs together with applicable cesses, if any.
Introduction of the GST required amendment in the Constitution so as to enable integration of
the central excise duty, additional duties of customs, State VAT and certain State specific taxes
and service tax into a comprehensive Goods and Services Tax and to empower both Centre and
the States to levy and collect it.
Consequently, Constitution (101st Amendment Act), 2016 (hereinafter referred to as Constitution
Amendment Act) was passed. It has 20 sections. Newly inserted Article 279A empowering
President to constitute GST Council was notified on 12.09.2016. Remaining provisions were
notified with effect from 16.09.2016.
Significant provisions of Constitution (101st Amendment) Act, 2016

Significant amendments made by Constitution Amendment Act are discussed below:

V. Article 246A: Power to make laws with respect to Goods and Services Tax
Newly inserted Article 246A
(1) Notwithstanding anything contained in Articles 246 and 254, Parliament, and, subject to
clause (2), the Legislature of every State, have power to make laws with respect to goods and
services tax imposed by the Union or by such State.
(2) Parliament has exclusive power to make laws with respect to goods and services tax where
the supply of goods, or of services, or both takes place in the course of inter-State trade or
commerce.
Explanation.—The provisions of this article, shall, in respect of goods and services tax referred
to in clause (5) of article 279A, take effect from the date recommended by the Goods and
Services Tax Council.
 This article grants power to Centre and State Governments to make laws with respect to GST
imposed by Centre or such State.
 Centre has the exclusive power to make laws with respect to GST in case of inter-State
supply of goods and/or services.
 However, in respect to the following goods, the aforesaid provisions shall apply from the date
recommended by the GST Council:
  The provisions of Article 246A are notwithstanding anything contained in Articles 246 and
254. Article 254 deals with the supremacy of the laws made by Parliament.
VI. Article 269A: Levy and collection of GST on inter-State supply
 Article 269A stipulates that GST on supplies in the course of inter-State trade or commerce
shall be levied and collected by the Government of India and such tax shall be apportioned
between the Union and the States in the manner as may be provided by Parliament by law
on the recommendations of the Goods and Services Tax Council.
 In addition to above, import of goods or services or both into India will also be deemed to
be supply of goods and/ or services in the course of Inter-State trade or Commerce.
 This will give power to Central Government to levy IGST on the import transactions which
were earlier subject to Counter vailing duty under the Customs Tariff Act, 1975.
 Where an amount collected as IGST has been used for payment of SGST or vice versa, such
amount shall not form part of the Consolidated Fund of India. This is to facilitate transfer of
funds between the Centre and the States.
 Parliament is empowered to formulate the principles regarding place of supply and when
supply of goods, or of services, or both occurs in inter-State trade or commerce.
VII. Definitions of ‘Goods and Services Tax’, ‘Services’ and ‘State’ incorporated under
Article 366
The terms Goods and Services Tax, services and State have been defined under respective clauses
of Article 366 as follows:
 Goods and services tax means any tax on supply of goods, or services or both except taxes
on the supply of the alcoholic liquor for human consumption. Consequently, GST can be
levied on supply of all goods and services except alcoholic liquor for human consumption.
 Services means anything other than goods.
 State, with reference to articles 246A, 268, 269, 269A and article 279A, includes a Union
territory with Legislature.
Definition of “goods”: The term goods has already been defined under clause (12) of Article 366
in an inclusive manner to provide that “goods include all materials, commodities, and articles”.
VIII. GST Council: Article 279A
 Article 279A of the Constitution empowers the President to constitute a joint forum of the
Centre and States namely, Goods & Services Tax Council (GST Council).
 The provisions relating to GST Council came into force on 12thSeptember, 2016. President
constituted the GST Council on 15thSeptember, 2016.
 The Union Finance Minister is the Chairman of this Council and Ministers in charge of
Finance/Taxation or any other Minister nominated by each of the States & UTs with
Legislatures are its members. Besides, the Union Minister of State in charge of Revenue or
Finance is also its member.
 The function of the Council is to make recommendations to the Union and the States on
important issues like tax rates, exemptions, threshold limits, dispute resolution etc.
 It shall recommend the special provisions with respect to the Special Category States.
There are 11 Special Category States, namely, States of Arunachal Pradesh, Assam,
 Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura,
Himachal Pradesh and Uttarakhand. Special threshold limits for registration,
composition, exemptions, etc. have been recommended for some or all of these States.

 GST Council shall also recommend the date on which GST be levied on petroleum crude,
high speed diesel, motor spirit, natural gas and aviation turbine fuel.
 Every decision of the GST Council is taken by a majority of not less than three-fourths of the
weighted votes of the members present and voting. Vote of the Centre has a weightage of
one-third of total votes cast and votes of all the State Governments taken together has a
weightage of two-thirds of the total votes cast, in that meeting.
Input Tax credit
Just after the removal of input tax credit facility from the food mall the operating costs of the
food mall have increased. In order to deal with the withdrawal of input tax credit, the food mall
have started raising the base menu prices. Famous brands like Starbucks, Dominos have already
increased their base prices as denying the input cost credit has increased the input cost of the
food mall due to which food mall have quite effectively increased the prices of a few items to
cover the portion of the increased cost.
Cases when ITC is not available under GST
1. Motor vehicles & conveyances
ITC is not available for Motor vehicles used to transport persons, having a seating capacity of less
than or equal to 13 persons (including the driver).
Further, ITC is not available on vessels and aircraft.
For example, XYZ & Co. buys a car for their business. They cannot claim ITC on the same.
Exceptions to ITC on motor vehicles/vessels/aircrafts:
ITC will be available when the vehicle is used for making taxable supplies by the following.
a) Supply of other vehicles or conveyances, vessels or aircrafts.
If you are in the business of supplying cars then ITC will be available.
For example, a car dealer purchases a car for Rs.50 lakh plus 14 lakh GST (ignoring cess
calculations). The same car was later sold for 70 lakhs along with Rs.19.60 lakh GST. Since he is
a dealer, he can claim ITC of 14 lakhs and pay only Rs.5.60 lakh (19.60 – 14). b)
Transportation of passengers
If you are providing transportation of passengers then ITC will be allowed on the vehicle purchased.
For example, Happy Tours purchased a bus for inter-city transport of passengers. ITC is
available. c) Imparting training on driving, flying, navigating such vehicle or conveyances
or vessels or aircrafts, respectively.
A driving school purchases a car to give training to students. The school can claim ITC on the GST
paid on the car.
d) Transportation of goods
ITC will be allowed on motor vehicles (and other conveyances) used to transport goods from one
place to another. However, this is concerning other transporters and not goods transport agencies
(GTA).
2. Food, beverages, club memberships and others
ITC is not for the supply of following goods or services or both:
• Food and beverages
• Outdoor catering
• Beauty treatment
• Health services
• Cosmetic and plastic surgery
However, ITC will be available if the category of inward and outward supply is same or the
component belongs to a mixed or composite supply under GST.
Examples -
Ajay Enterprises arranges for an office party for its employees. Ajay Enterprises will not be able to
claim ITC on the food & beverages served.
3. Services of general insurance, servicing, repair and maintenance
No ITC is allowed on services of general insurance, servicing, repair and maintenance in so far
as they relate to motor vehicles, vessels or aircraft referred to in (1). Exceptions to ITC on
insurance, repair or maintenance
• Same as expections mentioned for motor vehicles/vessels/aircrafts
• where received by a taxable person engaged—
(I) In the manufacture of such motor vehicles, vessels or aircraft; or

(II) In the supply of general insurance services in respect of such motor vehicles, vessels or
aircraft insured by him
4. Sale of membership in a club, health, fitness center
No ITC will be allowed on any membership fees for gyms, clubs etc.
Example-
X, a Managing Director has taken membership of a club and the company pays the membership fees.
ITC will not be available to the company or Mr. X.
5. Rent-a-cab, life insurance, health insurance
ITC is not available for rent-a-cab, health insurance and life insurance.
However, the following are exceptions, i.e., ITC is available for-
a. Any services which are made obligatory for an employer to provide its employee by the Indian
Government under any current law in force
For example, assuming the government passes a rule for all employers to provide mandatory cab
services to female staff in night shifts. ABC Ltd. hires a rent-a-cab to provide to transportation to
its female staff on night shifts. Then ITC will be available to ABC Ltd. on the GST paid to the
rent-a-cab service.
b. If the category is same for the inward supply and outward supply or it is a part of the mixed or
composite supply
For example, ABC Travels lends out a car to XYZ Travels. Then XYZ Travels can claim ITC on the
same.
c. leasing, renting or hiring of motor vehicles, vessels or aircraft with exceptions same as those
mentioned for (1).
6. Travel
ITC is not available in the case of travel, benefits extended to employees on vacation such as leave
or home travel concession.
For example,
ABC Ltd. offers a travel package to its employees for personal holidays. ITC on GST paid by ABC
Ltd. for the holiday package will not be allowed.
ITC will be allowed for travel for business purposes.
7. Works contract
ITC shall not be available for any work contract services. ITC for the construction of an
immovable property cannot be availed, except where the input service is used for further work
contract services.
For example, XYZ Contractors are constructing an immovable property. They cannot claim any
ITC on the works contract. However, XYZ hires ABC Contractors for a portion of the works
contract. XYZ can claim ITC on the GST charged by ABC Contractors.
8. Constructing an immovable property on own account
No ITC is available for goods/services for construction of an immovable property on his own
account. Even if such goods/services are used in the course or furtherance of business, ITC will
not be available.
But this rule does not apply to plant or machinery. ITC is available on inputs used to manufacture
plant and machinery for own use.
Example -Ajay Steel Industries constructs an office building for its headquarters. ITC will not be
available.
Ajay Steel Industries also construct manufacture steel. ITC is available since it is a plant.
9. Composition Scheme
No ITC would be available to the person who has made the payment of tax under composition
scheme in GST law.
10. No ITC for Non-residents
ITC cannot be availed on goods/services received by a non-resident taxable person. ITC is only
available on any goods imported by him.
11. No ITC for personal use
No ITC will be available for the goods/ services used for personal purposed and not for business
purposes.
 12. Free samples and destroyed goods
No ITC is available for goods lost, stolen, destroyed, written off or given off as gift or free samples.
13. No ITC in fraud cases

ITC will not be available for any

tax paid due to fraud cases which
has
resulted into –
1. Non or short tax payment or
2. Excessive refund or
3. ITC utilized or
Fraud cases include fraud
or willful misstatements or
suppression of facts or
confiscation and seizure of goods.

14. No ITC on restaurants

As per Notification No. 46/2017-Central Tax (Rate), dated 14th November 2017, standalone
restaurants will charge only 5% GST but cannot enjoy any ITC on the inputs.
However, restaurants as part of hotels with room tariffs exceeding Rs. 7,500 still continue pay 18%
GST and enjoy ITC.
McDonald’s charges 5% GST and cannot claim any ITC.

Taj’s Grill by the Pool restaurant in Kolkata is a part of the Taj Bengal hotel and so it will charge
18% GST while enjoying ITC.

GST Registration Process

How to Register for GST The GST registration process for food mall can be divided into three broad
parts for existing taxpayers. These are: -

• Filling the enrolment form within the specified time-frame

• Submitting the necessary documents
• Receiving an acknowledgment number
1. Filling the Enrolment Form for Existing Taxpayers ‘Enrolment’ for existing taxpayers would mean
further validating your database and fill the remaining text fields in the ‘Enrolment Form’ on

https://www.gst.gov.in. Paper-based enrollment is not an option. The entire process and has been
made smoother by creating an online portal for GST which will also enable easy filing of returns
and tax payments through credit/debit cards and other modes which are great ease during this
phase of demonetization. Enrollment under the GST is common for both Central GST and the
State GST. There will be common registration, common return and common challan for Central
and State GST. Further, it is mandatory to get yourself registered if the annual turnover of your
food mall business is Rs 20 Lakh, the upper limit
Enrolment Dates
Enrolment dates for all states have been specified, and the existing taxpayers are to enroll
themselves (state-wise) in the GST database. To avoid commotion and ensure the transition
to GST is smooth, existing taxpayers are encouraged to complete the enrollment process
within the dates specified by the GST portal.
1. Documents Required For GST Registration
Make a note of the following requirements for GST enrollment, and ensure you have all the
required documents and information ready to avoid any confusion:
• Valid Mobile Number
• Valid Email Address
• Bank Account Number
• Bank IFSC
• Provisional ID received from State/ Central Authorities
• Password received from the State/ Central Authorities
The provisional ID also called as GSTIN and password will be issued to you by the State
government. Hence, contact your ward officer to complete the online pre-registration under
GST.
Make sure you take along your PAN card while you visit the concerned ward officer.
Here is the format of the Provisional ID that the State government will issue to you:
Find the list and requirement for documents needed below

2. Submitting the Form and Receiving an Acknowledgement Number

Once you fill in all the information and upload the required documents, and click ‘Submit’, an
acknowledgment number will be generated. Save the number for future reference.
Ensure you have added all your information correctly and your documents are uploaded in PDF
or JPEG format in a maximum size of 1 MB.
Even petty mistakes concerning GST could render penalties of lakhs, so make sure you are
well armed and equipped with all your documents and enrollment details for further
correspondence. After all, the GST is for your good, and you would not want to make even a
single mistake.
CHAPTER 2. RESEARCH METHODOLOGY
 2.1 SCOPE OF STUDY

There search study involves exploration of which attribute of Study of Indirect Tax Framework of GST in India

and Benefits of GST has more intense effect on the investor decision and which attributes of financial statement

fraud impact on organization are relatively significant or insignificant for investors, and also to determine how

much level of each attributes is most or least preferred. Similarly, the primary data pertaining to the opinions,

views & perceptions of the Investors were collected through a Questionnaire from the study area. Mumbai City

of the Maharashtra State was purposively selected for the study as the researcher is from the same City.

2.1.1 STATISTICAL TOOLS ADOPTED:

The data was interpreted & analyzed with the help of tables, percentages, graphs & chart
presentation.

2.1.2 SAMPLING TECHNIQUE:

The technique used for this Project is based on a QUESTIONNAIRE which consists of
about 15 general questions. This questionnaire aims to provide the data which is of
most important in nature to enable a comprehensive analysis Study of Indirect Tax
Framework of GST in India and Benefits of GST of. questions consist of statements, the
intensities of which arc from the respondents to extract the opinion of respondents.
These questions evaluate the intensity of respondent on various parameters with high
and Low extremes on the scale.

2.1.3 LIMITATIONS:

The study is limited only within Mumbai City of Maharashtra State, because of the
time & financial constraints the study is restricted to the sample size up to 100
respondents of different age groups. However, it is reasonably sufficient number to
generalize the information collected. The study could not cover the legal investment
strategies & aspects on the whole.
2.2 DATA TYPES & SOURCES

Both quantitative & qualitative data will be used. Primary data will be collected through
observation, structured questionnaires & semi-structured interviews using
checklist & the responses of the leading questions. Secondary data will be obtained
from external sources like Newspapers, journal, magazines, Internet, Website etc.
which will be included to gather more information for International comparisons.
 2.2.1 MEANING OF PRIMARY DATA & ITS IMPORTANCE

Primary data is information that you collect specifically for the purpose of your research project. An
advantage of primary data is that it is specifically tailored to your research needs. A disadvantage is
that it is expensive to obtain.

Primary data are information collected by a researcher specifically for a research assignment. In other
words, primary data are information that a company must gather because no one has compiled and
published the information in a forum accessible to the public. Companies generally take the time and
allocate the resources required to gather primary data only when a question, issue or problem presents
itself that is sufficiently important or unique that it warrants the expenditure necessary to gather the
primary data. Primary data are original in nature and directly related to the issue or problem and
current data. Primary data are the data which the researcher collects through various methods like
interviews, surveys, questionnaires etc.

Advantages of primary data are as follows:

l. The primary data are original and relevant to the topic of the research study so the degree of
accuracy is very high.

2.Primary data is that it can be collected from a number of ways like interviews, telephone surveys,
focus groups etc. It can be also collected across the national borders through emails and posts. It
can include a large population and wide geographical coverage.

3. Moreover, primary data is current and it can better give a realistic view to the researcher about
the topic under consideration.

4. Reliability of primary data is very high because these are collected by the concerned and
reliable party.

2.2.2 MEANING OF SECONDARY DATA & ITS IMPORTANCE

Secondary data are the data collected by a party not related to the research study but collected these
data for some other purpose and at different time in the past. If the researcher uses these data then
these become secondary data for the current users. These may be available in written, typed or in
electronic forms. A variety of secondary information sources is available to the researcher gathering
data on an industry, potential product applications and the market place. Secondary data is also used to
gain initial insight into the research problem. Secondary data is classified in terms of its source —
either internal or external. Internal, or in-house data, is secondary information acquired within the
organization where

research is being carried out. External secondary data is obtained from outside sources. There are
various advantages and disadvantages of using secondary data.
Advantages of secondary data are following:

1. The primary advantage of secondary data is that it is cheaper and faster to access.

2. Secondly, it provides a way to access the work of the best scholars all over the world.

3. Thirdly, secondary data gives a frame of mind to the researcher that in which direction he/she
should go for the specific research.

4. Fourthly secondary data save title, efforts and money and add to the value of the research
study.

2.1 POPULATION, SAMPLING FRAME & SAMPLE SIZE

2.1.1 POPULATION:

This is the set of maximum Investors [Male & female] to which the findings are to be
generalized.

2.1.2 SAMPLING FRAME:

In order, to perform non probability sampling, a sampling frame is constructed based

on the study area. The list of Corporate, households, etc. is generated from the selected
areas & randomly.

2.1.3 SAMPLE SIZE:

Sample size of 100 respondents is selected for the study to make the study meaningful and
relevant.

2.2 STUDY AREA, SAMPLE TYPE - SAMPLING PROCEDURE:

2.2.1 STUDY AREA:

The topic of sector

Study of Indirect Tax Framework of GST in India
CGST/SGST/UTGST/IGST and Benefits of GST is generally known by all masses, but due
to time constraints, the study is bounded throughout the city of Mumbai only. The
reason for selecting this City is because there are a large number of people residing &
who are familiar about it as they may invest on regular basis too.
 2.2.2 SAMPLE TYPE & SAMPLING PROCEDURE:

The sample type & procedure opted for this study is by prepared by circulating
Questionnaire via social media WhatsApp within the Mumbai city. The data collected
is mainly based age wise, gender wise, educational background, minimal knowledge
about financial statement fraud in an organization issues and solution.

2.3 DATA COLLECTION TECHNIQUES:

For the collection of data regarding the conceptual framework, performance of the

impact of financial statement fraud in organization in India the preference of impact of

financial statement solutions in organization in India

The data has been collected through Primary and Secondary Sources as follows:

1.) Documentation — This involves collecting information & data from existing
surveys, reports & documents.

2.) Structured Questionnaires — Questionnaires will be developed to obtain

survey & statistical data that allows an understanding with respect to the review of
people in financial statement fraud in organization in India& their decisions.

3.) Observation & Analysis — The observation during the fieldwork will be used
mainly to review the issues beyond those covered in the structured & semistructured
questionnaires. The data will be analyzed in the form of graphs, charts table format, etc.
according to the age-groups, gender wise.
CHAPTER 3: OBJECTIVES OF STUDY
Objectives of the Study: -

The research has been undertaken and presented considering the following foremost objectives :

• To gain an in-depth understanding of GST taxation system evolution.

• Study the Features and Framework of GST

• Understanding in - depth the concept of new taxation system introduced - Goods and Services
Tax (GST) in India.

• Study the Benefits of GST

• Understanding the features, working, and differentiating the current taxation system in India
v/s GST.

• To evaluate the advantages and challenges surrounding GST.

• To evaluate the prospects of taxation position of various goods and services in India.

• To furnish the information for future research on GST based taxation system.
CHAPTER 4: REVIEW OF LITERATURE
 REVIEW OF LITERATURE

G. Garg,6(2014) analysed the impact of GST on Indian tax scenario. He tried to highlight the objectives of the
proposed GST plan along with the possible challenges and opportunity that GST brings. He concluded that GST
is the most logical steps towards the comprehensive indirect tax reform in our country since independence. GST
is leviable on all supply of goods and provision of services as well combination thereof. All sectors of economy
i.e the industry, business including Govt. departments and service sector shall have to bear impact of GST. All
sections of economy viz., big, medium, small-scale units, intermediaries, importers, exporters, traders,
professionals and consumers shall be directly affected by GST. One of the biggest taxation reforms in India –
the Goods and Service Tax (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. Experts say that GST is likely to improve
tax collections and Boost India’s economic development by breaking tax barriers between States and integrating
India through a uniform tax rate. Under GST, the taxation burden will be divided equitably between
manufacturing and services, through a lower tax rate by increasing the tax base and minimizing exemptions.

B John(2014) the authors in the paper have explored the concept of GST, the need to introduce it in India, the
hurdles in introducing it in India and suggestions to overcome the same. The paper also discusses the benefits of
introducing GST at the earliest. The authors have discussed the options to introduce the dual GST in India which
could be Concurrent Dual GST, National GST or State GST. Under the concurrent dual GST the better option
was the one where GST is applied on both goods and services. The other option explored was whether the
Central GST would be on goods and services but state GST would be only on goods since state to collect GST
in services is difficult to determine. This option also recommended one single return with both CGST and SGST
details and PAN based registration. The authors have also discussed the constitutional amendments required if
GST is ever to be introduced since without the amendment taxing both goods and services using one tax is not
possible. The paper also highlights the issues in the credit mechanism in the CGST/SGST model since it is
difficult to practically implement in terms of determination of place where service is taxable. The other
challenges to introduction of GST in India highlighted are the availability of strong IT network, infrastructure
and programmes, agreement on other provisions like basic threshold, exemption to goods/services, rates to be
applied, etc.

Rashid et al.,8 (2014) in this paper the authors study impact of GST in Malaysia since it is proposed
to introduce GST in Malaysia in 2015. The GST is being introduced mainly so as to increase the revenue
collections of the government and reduce the deficit. The authors have studied the impact of the introduction
of this GST and its relation to certain indicators like the consumer price index and the structural balance. For
this the relation between these factors and the GST are studied for Singapore, Thailand and Indonesia so that
whilst implementing GST in Malaysia the administration can adopt the best practice. The paper recommends
transparency in implementing GST and review of the rates/base of GST after 5 years and rectification based
on the 5 year experience.
 N. Kumar,9 (2014) concluded that GST will help in eradicating economic distortion by current
Indian tax system and is expected to encourage unbiased tax structures which will be indifferent to
geo locations.

Jaiprakash ( 2014) in his research study mentioned that the GST at the Central and the State level are expected
to give more relief to industry, trade, agriculture and consumers through a more comprehensive and wider
coverage of input tax set-off and service tax setoff, subsuming of several taxes in the GST and phasing out of
CST.

Saravanan Venkadasalam,10 (2014) has analyzed the post effect of the goods and service tax (GST) on the
national growth on ASEAN States using Least Squares Dummy Variable Model (LSDVM) in his research
paper. He stated that seven of the ten ASEAN nations are already implementing the GST. He also suggested that
the household final consumption expenditure and general government consumption expenditure are positively
significantly related to the gross domestic product as required and support the economic theories. But the effect
of the post GST differs in countries

Shaik et al ,11(2015) studied the concept and impact of GST on Indian economy. The study
also focused on some aspects of GST models. This study also covered the advantages and working
of GST. The study concluded that GST in Indian framework will lead to commercial benefits which
were untouched by VAT system and would essentially leads to economic development.
Sehrawat & Dhanda,12 (2015) conducted a study focused on advantages and challenges of
GST faced by India in execution. They concluded that a simplified and transparent tax system was
the need of Indian economy. Pointing out the various advantages they said that GST will provide
India a world class tax structure and a seamless tax system but it will depend upon effectiveness of
its implementation.

Khurana & Sharma,13 (2016) conducted a study with a view to explore various benefits and
opportunities of GST by throwing a light on its’ background, objectives of proposed GST plan and
its impact on Indian tax scenario. They concluded that GST implementation will definitely benefit
producers and consumers although its’ implementation requires concentrated efforts of all stake
holders especially central and state government.
 Munde & chavan ,14 (2016) conducted a study to discuss the pros and cons of GST and
accordingly make suggestions to minimize loopholes and make it more effective. They concluded
that if the probable loopholes are dealt effectively, tax payers will accept the change brought upon
and if procedures in GST proves to be simple and assures the involvement of interest of all
stakeholders then definitely it will lead to economic development and rationalization of prices.

Kumar, R.,15 (2016), in his paper ‘Comparison between Goods and Services Tax and Current
Taxation System – A Brief Study’ differentiate the GST framework and previous taxation
system and highlighted the impact of GST on Indian economy.
Khurana, A. And Sharma, A.,16 (2016), in their paper ‘Goods and Services Tax in India – A
Positive Reform for Indirect Tax’ highlighted the objectives of GST and reforms in indirect taxation
system in India. And conclude after implementation of GST, manufacturer, wholesaler and retailer
can be easily recovered input taxes in form of tax credit.
Shefalidani, (2016) stated impact of GST on Indian economy in the study in which some
benefits of GST such as one nation one tax, free from cascading effect, increase consumption due to
cascading effect, transparency and GDP growth are studied. Petroleum products, real estate, and
liquor are free from GST.
Dani, S., (2016) in her research study revealed that GST being a system replacing all
indirect taxes might hamper the progress of the country as the attempt to implement it is not being
made whole heartedly.
Lourdunathan F and Xavier P.,19 (2016) studied inexplicit opinion of manufacturers,
traders and society. It also included challenges and prospectus of GST in future in India. Centre and
state level taxes also discussed in this paper. Various states are shown in which GST is followed for
growth of economy. Some issues such demonetization issue, inappropriate time, political issues, rate
for manufacturers and traders, impact on working and cash flow and implementation in unorganized
sectors became some main issues in path of GST.

Lourdunathan & Xavier,20 (2017) conducted a study based on exploratory research technique
on the basis of past literature to study the opinions of manufacturers, traders, society etc. about the
GST and the challenges and prospects of introducing GST in India. They concluded that no doubt
GST stands with one tax one nation slogan and will provide relief to producers as well as
consumers. Its efficient implementation will lead to resource and revenue gains. They also said that
seamless credit and return processing without human intervention requires educating, training, and
conducting workshops on GST on the part of government.
Mujalde, S. and Vani, A.,21 (2017), in their research paper on ‘Goods and Services Tax
(GST) and its outcomes in India’ focused on the features of GST, impact of GST on Indian economy
and discussed possible advantages and challenges of GST.
Nath, B.,22 (2017), in his paper on ‘Goods and Services Tax: A Mile Stone in Indian
Economy’ discussed benefit and impact of GST on Indian economy and also conclude that GST has
a positive impact on various sectors and industries.

Nishitha Guptha,23 (2017) in her study stated that implementation of GST in the Indian
framework will lead to commercial benefits which were untouched by the VAT system and would
essentially lead to economic development.
Kawle ,S, P. and Aher, L.,Y.,24(2017) in their research paper highlighted the working of GST
in India along with its impact on the Indian economy.
Nayyar, A. and Singh, I.,25 (2017) in their study cited that introduction of GST is a major
breakthrough in the Indian economy. It will help in redefining the Indian Tax Structure by being
more transparent and corruption free.
Abda, S.,26 (2017) in his research paper concentrated on the objectives, purpose and benefits
of GST to our economy and how it will help in strengthening it.
B, MitraPriya,27 (2017) stated GST as a Game changer in Indian Economy. The paper
showed that GST reduced complexity of various taxes and also removed cascading effect. Tax
structure shown in paper in which various tax rates included. Impact on Tax incidence included
various sectors such as Telecom, E- Commerce, Automobile, real estate, banking and consumer
goods. Impact on input tax credit showed that there would be availability of cross credit utilization
in CGST and SGST.
Bhattacharjee (2018) evaluates the impact of GST after implementation and completion of one
year. It emphasis that now government officials and experts have also been considering the need
to make several changes in the GST architecture e.g. taking off the 28% tax bracket and shifting
towards fewer tax-slabs by merging 12% and 18%rates,taking in electricity, real estate sector and
petroleum products under its purview in a systematic way. It also simplify the submission by
taking out the requirement of submission of so many returns at short intervals, besides improving
the strength of anti - evasion measures.

Ritu Bala (July 11, 2017) in her article, “An overview of the Goods and Services Tax” covers
provisions of GST having a crucial impact on the industry and provides an insightful perspective
regarding the same. While GST is yet to come into effect, it will evolve post implementation.
Further, though clarity on various critical issues affecting the industry is still unanswered, the
benefit to the economy cannot surely be undermined.
Praharaj (2017) analyze the GST on the basis on one nation, one tax and one market in India.
Exemptions under GST for startup and small businesses and easy registration clearly aligned
with the study. Challenges faced by general businesses after introduction of GST rate also a part
of this study.
Nisa (2017) evaluate the impact of GST on India’s foreign trade. It highlights that GST will
make life easier for businesses in India due to development of common national market. With
even taxation and cost effectiveness owing to reduced time and costs in transportation, one
obvious effect would be that “Made in India” products would now be more cost competitive in
the global markets.
Mujalde and Vani (2017) in their paper make an attempts to present the GST over the current
taxation system in India. Advantages of input tax credit and results of GST implications are the
main objectives of the study.
Dr Barnamali Nath (2017) studied the concept of GST and its timelines of introduction in India
to know its benefits and impact on the Indian Economy. From his study he drew that GST will
reduce the cascading effect of the current indirect taxation system that will provide relief to the
producers and consumers by subsuming several indirect taxes. He added that with the
implementation of GST, manufacturer, wholesaler and retailer could be easily recovered input
taxes in the form of tax credits. The same implementation will also lead to commercial benefits
more employment opportunities and would essentially lead to economic development that will
improve the GDP of the country. She finally concluded that proper awareness programs,
workshops, training and seminars on GST must be conducted in all states by their respective state
governments.
Poonam (2017) conducted a study on, “Goods and services tax in India – An Introductory
study”. The objectives of the study is to study the concepts of GST and its impact on Indian
economy, and to preserve how GST will work in India, to know the advantages and challenges of
GST in Indian context.

Alka Shah (2nd Nov 2017) conducted a study on, “Integrated Goods and services tax an Indian-
innovation”. The objective of the study is to cross utilization of credit is to be done and
adjustments to be made between centre and states. The paper mainly focuses on the key
provisions for determining place of supply of Goods/services and nature of supply i.e. interstate
or intra-state.

Dash. A Volume 3 Issue 5 May 2017, conducted a study on, “positive and negative impact of
GST on Indian economy”. The objective of the study is to cognize the concept of GST, to study
the features of GST, to furnish information for further research work on GST, to evaluate the
advantages and challenges of GST. Credits of input taxes paid at each stage will be available in
the subsequent stage of value addition which makes GST essentially a tax only on value addition
at each stage.
Prajapati (2016) examines the challenges faced at the time of implementation of GST, the
crucial tax reform in India with some practical examples and also examined the tax credit
mechanism applied under GST, the tax on value added goods and services.
Siddiqui (2016) opines GST would replace the multipurpose tax system applied in manufacture,
sale and consumption of goods and services in India. The study also highlights on the merits and
demerits at the time of application and its impact on overall economy.
Kumar (2016) in this paper examines GST as the biggest tax reform in India since
independence. Effects of GST bill on pricing of products and services, supply chain optimization,
IT accounting and tax compliance system are the main issues of the study.

Dr. Manjunath and t. Al (2016) conducted a study on, “Customer satisfaction in Fast food
industry”. The objective of the study is to find out the key success factors for fast food industry
and its aim is to find out the essential factors or determinants of customer satisfaction in the
restaurant industry. The findings revealed that the service quality and physical design are the key
factors for satisfaction in fast food industry.

Chaurasia et al. (2016) Studied, “Role of Goods and Services Tax in the growth of Indian
economy” and concluded that in overall GST will be helpful for the development of Indian
economy and this will also help in improving the Gross Domestic Products of the country more
than two percent.
S. Thowseaf (2016) studied the benefits of goods and services tax on the economy, business,
industry and consumer and analyze the implementation strategy of GST in India. If GST properly
implemented with tax exemption for certain goods like agricultural commodities, it will result in
increasing revenue at the centre as the tax collection system becomes more clear, making tax
avoidance problem vanish and leading to economic growth, helping Indian people regain the
wealth list within country.
Sehrawat and Dhanda (2015) studied, “GST in India: A Key Tax Reform” and concluded that
due to dissilent environment of India economy, it is demand of time to implement GST. Focus on
advantage of GST and challenges faced by India in execution. It also highlights that its
implementation stands for a coherent tax system which will subsume most of current indirect
taxes which in long term will lead to higher output, more employment opportunities and flourish
GDP.
Shaik et al. (2015) have same view about GST, they said that GST acts as helper in the
collective gain for industry, trade, agriculture and common consumers as well as for the Central
Government and the State Government and thus ultimately helpful in development of Indian
economy. It was further reported that GST will lead to provide commercial benefits, which were
remained untouched by the VAT system.
Adhana,(2015) concluded that Government should be very clear with the fact that for smooth
working of GST, the Information Technology/Infrastructure should also be properly developed
throughout India. Government should take the state government into assurance to implement the
GST. Furthermore all effort should be made to include all the items under GST so that no item
will left outside the preview of GST otherwise the main purpose of introducing GST will defeat.
Pinki, Supriya Kamma and Richa Verma (July 2014) studied, “Goods and Service Tax-
Panacea For Indirect Tax System in India” and concluded that the new NDA government in India
is positive towards implementation of GST and it is beneficial for central government, state
government and as well as for consumers in long run if its implementation is backed by strong IT
infrastructure.
Agogo Mawuli (May 2014) studied, “Goods and Service Tax-An Appraisal” and found that GST
is not good for low-income countries and does not provide broad based growth to poor countries.
If still these countries want to implement GST then the rate of GST should be less than 10% for
growth.
Nitin Kumar (2014) studied, “Goods and Service Tax - A way forward” and concluded that after
implementation of GST in India many indirect tax system will be finished and there will be only
one tax i.e. GST which is expected to encourage unbiased tax structure.
Nishita Guptha (2014) in her study stated that implementation of GST in the Indian framework
will lead to commercial benefits which were untouched by the VAT system and would
essentially lead to economic development. Hence GST may usher in the possibility of a
collective gain for industry, trade, agriculture and common consumers as well as for the Central
Government and the State Government.

Anushuya and Narwal (2014) studied, “Application of CGE Modals In GST” and concluded
that both GST & CGE are very popular all over the world but GST is a powerful concept in the
field of indirect taxes.
Jaiprakash (2014) had same view that GST at Central and State levels are expected to give more
relief to agriculture, industry and consumers. He also indicated that trade and industry have
encouraging responses to GST. Thus, GST offers us the best option to broaden our tax base and
we should not miss this opportunities to introduce it when the circumstances are quite favorable
and economy is enjoying steady growth with only mild inflation.
Garg (2014) analyses the details of characteristics, background and impact of new tax system to
be introduced in India. Benefits of GST model, opportunities and justification of GST are the key
areas of the study.
Tanwar (2014) investigates the significance of Arthashastra in present scenario. With the help of
Arthashastra, the study focused on the importance of levy of tax under moderate tax rate
otherwise people would decide for tax evasion and which would decrease the revenue income of
the government. The study proves that the strategy of Kautilya applies in modern world too.
Borec, (2013) The authors have discussed how assesses may comply with the VAT laws given
that the GST is a destination-based tax. The authors mainly deal with B2C cases where the VAT
compliances would need to be done in the state where the customer is located. The authors have
discussed the difficulties in this compliance especially in the e commerce transactions.
Huang (2013) The authors examine the relation between the newly introduced GST in Australia
in 2000 and the mortgage costs between 1999 and 2001. The study concludes that given that in
Australia financial services industry is taxed in input taxation basis i.e. the output mortgage
service is not liable to GST and GST paid on input services to provide these mortgage services
are also not allowed. This extra cost of sunk input tax is passed in the form of increased mortgage
costs to customers making housing costly post introduction of GST in Australia.
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.
Firth (2012) GST on financial services as always been a subject matter of great debate. There is
a problem in taxing financial services due to their intangible nature, the confusion around the
location of service provider and service recipient and the value of the service. The authors in
their paper are trying to address these issues specially for the country of Canada. In Canada, there
is an exemption for financial services, intermediary services in relation to financial services etc.
The authors in their paper have discussed the existing laws and suggested changes to the existing
laws for better efficiency in taxing financial services.
Herekar (2012) The Ministry of Finance had set up the Task Force with Mr. V. Kelkar as the
chairman of the Task Force. The main task of the Task Force was to evaluate the impact of the
proposed GST on the Indian economy. The author in the paper has studied the different parts of
GST and their impact on the common man, the business and the economy. The author has
concluded based on secondary data that if GST is introduced in India, it would have a positive
impact on the overall economy.
New Zealand Government (2012) The author has traced the GST and import duties applicable
on the various imports into New Zealand. The paper discusses not only the goods on which duty
is payable but also whether further GST is payable on the same goods. The paper also discusses
the applicability of the taxes on the goods ordered and delivered through internet. The paper also
discusses various exemptions available like personal effects to the import taxation.
Benedict, (2011) The author studies the law provisions dealing with financial services under the
Australian GST law with the intention to verify whether the provisions have been construed
correctly in light of the original purpose of the legislation and how the concerns identified may
be rectified.

Dr. R. Vasanthagopal (April 2011) concluded in “GST in India: A Big Leap in the Indirect
Taxation System” that GST will be booming Indian economy. According to him India is
suffering from complicated tax system GST will give a boost to the Indian economy and
concluded that switching to seamless GST from current complicated indirect tax system in India
will be a positive step in booming Indian economy. Success of GST will lead to its acceptance by
more than 130 countries in world and a new preferred form of indirect tax system in Asia also.
Tripathi (2011) The authors have discussed the concerns faced in India post the implementation
of VAT, the learning we could take from it, the effects on the social order in India. All this is
discussed in the background of the impending GST in India. The authors have discussed the
various issues around VAT, how it impacts the different sections of society. VAT is present in all
goods produced and GST would be present in all goods and services produced making it a tax
payable by all sections of the society. Thus it is a tax which though good to increases the revenue
impacts ven the poorer sections of society.
Keating (2010) GST is operative in both Australia and New Zealand with anti-evasion/avoidance
provisions under the GST law framed in both the countries. The author compares the said anti
evasion provisions in both countries, examines their effectiveness and also whether tax payers
have successfully evaded the law. The author concludes that if the law interpretations based on
the New Zealand Court decisions are referred to, it implies that assesses will find it difficult to
evade the law.

Ehtisham Ahmed and Satya Poddar (2009) studied, “Goods and Service Tax Reforms and
Intergovernmental Consideration in India” and found that GST introduction will provide simpler
and transparent tax system with increase in output and productivity of economy in India. But the
benefits of GST are critically dependent on rational design of GST.
Chadha et al. (2009) has analyzed that GST would lead to efficient allocation of factors of
production. The overall price level would go down. It is expected that the real returns to the
factors of production would go up. Their results showed gains in real returns to land ranging
between 0.42 and 0.82 per cent. Wage rate gains varied between 0.68 and 1.33 per cent. The real
returns to capital would gain somewhere, between 0.37 and 0.74 per cent. In sum,
implementation of a comprehensive GST in India is expected to lead to efficient allocation of
factors of production thus leading to gains in GDP and exports. This would translate into
enhanced economic welfare and returns to the factors of production, viz. land, labour and capital.
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.
CHAPTER 5: DATA ANALYSIS AND INTERPRITAION
DATA ANALYSIS AND INTERPRETATION

Table no. 4.1. Is GST is a very good tax reforms for india ?

Category Response Percentage

YES 86 86%
NO 14 14%
Total 100 100%

Chart no. 4.1. Is GST is a very good tax reforms for India

1. Is GST is a very good tax reforms for India ?

14.00%

Yes
No

86.00%

INTERPRETATION – Out of 100 Respondent, 86% Respondent yes and 14% said no.
Table no. 4.2. Do you think after implementation of GST the prices of goods and services has
increased?

Category Response Percentage

AC 87 87%
NON AC 13 13%
Total 100 100%

Chart no. 4.2. Do you think after implementation of GST the prices of goods and services has increased?

Do you think after implementation of

13%

yes
No

87%

INTERPRETATION - Out of 100 Respondent, 87% Respondent like to say yes and 13%
Respondent like to say no.
 Table no. 4.3. What is GST?

Category Response Percentages

Goods and services tax 83 83%
Goods and Sales Tax 17 17%
Total 100 100%

Chart no. 4.3. What is GST?

3. what is GST?

17.00%

Go
ods
an

83.00%

INTERPRETATION - Out of 100 Respondent, 83% Respondent as goods and services tax and
17% Respondent as goods and sales tax

Table no. 4.4. Awareness about GST

Category Percentages
 Response

Government notification 36 36%

Media 39 39%

Friends and Relatives 17 17%

CA’s 6 6%

Beneficiaries 2 2%

Total 100 100%

Chart no. 4.4. Awareness about GST

4. Awareness about GST ?

2%

6%

17% 36% Government Notification

Media
Friends and Relatives
CA's
Beneficiaries

39%

INTERPRETATION – From pie diagram below information is obtained, 36% from total
responses get the awareness about GST through Government Notification, 39% from total
responses get the awareness about GST through Media, 17% from total responses get the
awareness about GST through Friends and Relatives, 6% from total responses get the awareness
about GST through CA’s and 2% from total responses get the awareness about GST through
 Beneficiaries. Hence, GST officials take to media, conduct awareness programmes to bust
misconceptions.
Table No. 4.5. Reasons for payment of tax

Category Response Percentages

Government Regulation 38 38%

As a National Responsibility 44 44%

Advice by Tax consultant 12 12%

As a routine 6 6%

Total 100 100%

Chart No. 4.5. Reasons for payment of tax

5. Reasons for payment of tax ?

6%

12%

38% Government Regulation

As a National Responsibility
Advice by Tax consultant
As a rountine

44%

INTERPRETATION - From pie diagram below information is obtained, 38% from total
responses says that reasons for payment of tax is Government Regulation, 44% from total
responses says that reasons for payment of tax is a National Responsibility, 12% from total
responses says that reasons for payment of tax is advice by Tax consultant and 6% from total
responses says that reasons for payment of tax is a Routine. Thus, people need to pay taxes for
the government needs run smoothly, huge help for the underprivileged and overall infrastructure
development.
Table No 4.6.
GST is “One Nation One Tax”

Categor Response Percentage

y

Strongly 25 25%
Agree

Agree 55 55%

Strongly 12 12%
Disagree

Disagree 8 8%

Total 100 100%

Chart No. 4.6. GST is “One Nation One Nation

 6. GST is "One Nation One Tax"

8%

12% 25%

Strongly Agree
Agree
Strongly Disagee
Disagree

55%

INTERPRETATION – Out of 100 Respondent, 25% Respondent Strongly Agree with GST is
‘One Nation One Tax’, 55% Respondent Agree with GST is ‘One Nation One Tax’, 12%
Respondent Strongly Disagree with GST is ‘One Nation One Tax’ and 8% Respondent Disagree
with GST is ‘One Nation One Tax’. Hence, it is expected that in the long run GST will prove
beneficial and make the dream of “One Nation One Tax” come true.

Table No. 4.7. GST is Progressive Tax

Category Response Percentage

65 65%
Yes

35 35%
No

Total 100 100%

 Chart No. 4.7. GST is Progressive Tax

7. Do you think GST is Progressive Tax ?

35%

Yes
No

65%

INTERPRETATION – Out of 100 Respondent, 65% Respondent think GST is Progressive Tax
and35% Respondent don’t think GST is Progressive Tax. Generally, the GST is regressive in
nature, not a progressive. Direct tax rate is not flat. The rates are progressive – higher the
income, higher the rate whereas indirect tax rates are flat or fixed. Hence they are called
regressive – the poor and the rich pay the same tax.
Table No.4.8. GST Rate on AC Restaurants
Category Response Percentage

12% 30 30%

18% 42 42%

28% 4 4%

Total 100 100%

Chart No. 4.8. GST Rate on AC Restaurants

 8. What is GST rate on AC restaurants ?

4%

24%

5%
12%
42%
18%
28%

30%

INTERPRETATION – Out of 100 Respondent, 24% Respondent says GST rate on AC

restaurant is 5%, 30% Respondent says GST rate on AC restaurant is 12%, 42% Respondent
says GST rate on AC restaurant is 18% and 4% Respondent says GST rate on AC restaurant is
28%. Therefore, GST rate on AC Restaurants is 12%. Earlier the rates were 18% for AC
restaurants. Each people gave different response about GST rate. So there are lack of GST
statistics.
 Table No. 4.9. GST Rate on NON AC Restaurants
Categor Response Percentge
y

5 40 40%

12 46 46%

18 13 13%

28 1 1%

Total 100 100%

Chart No. 4.9. GST Rate on NON AC Restaurants

9. What is GST rate on NON AC Restaurants ?

1%

13%

40% 5%
12%
18%
28%

46%

INTERPRETATION - Out of 100 Respondent, 40% Respondent says GST rate on NON AC
restaurant is 5%, 46% Respondent says GST rate on NON AC restaurant is 12%, 13%
Respondent
 says GST rate on NON AC restaurant is 18% and 1% Respondent says GST rate on NON AC
restaurant is 28%. Hence, GST rate on NON AC Restaurant is 5%. Earlier the rates were 12%
for NON AC restaurants. However, with the reduced in GST rate the input tax credit (ITC)
benefit was withdrawn from the restaurant owner. Each people gave different response about
GST rate. So there are absence of GST facts.

Table No. 4.10. GST rate on 5 Star Restaurants

Category Response percentage

5 7 7%

12 9 9%

18 44 44%

28 40 40%

Total 10 100%

Chart No. 4.10. GST rate on 5 Star Restaurants

 10. What is GST rate on 5 Star Restaurants ?

7%

9%

40% 5%
12%
18%
28%

44%

INTERPRETATION - Out of 100 Respondent, 7% Respondent says GST rate on 5 Star

restaurant is 5%, 9% Respondent says GST rate on 5 Star restaurant is 12%, 44% Respondent
says GST rate on 5 Star restaurant is 18% and 40% Respondent says GST rate on 5 Star
restaurant is 28%. Generally, GST rate on 5-star restaurants is 28%. There are many different
response about GST rate on 5 star restaurants. So, there are insufficiency knowledge about GST.
 Table No. 4.11. Are you aware about GST features?
Categor Respons percentage
y e s

Fully 47 47%
aware

Partly 36 36%
aware

Not 17 17%
aware

Total 100 100%

Chart No. 4.11. . Are you aware about GST features?

11. . Are you aware about GST features?

17%

Part
47% ly
Full
y

36%

INTERPRETATION – Out of 100 Respondent, 47% Respondent says GST fully is 5%, 36%
Respondent says GST partly is 12% and 17% Respondent says GST not aware is18%. All you
require to know about GST rates.
 Table No. 4.12. GST is applicable for take away food
Categor Response Percentages
y

Yes 82 82%

No 18 18%

Total 100 100%

Chart No. 4.12. GST is applicable for take away food

12. Is GST applicable for take away food ?

18%

Yes
No

82%

INTERPRETATION – Out of 100 Respondent, 82% Respondent says GST is

applicable for take away food and 18% Respondent says GST is not applicable for take
away food. Thus, Yes, GST is applicable for take away food. GST rate on takeaway
Category Response Percentage

Yes 53 53%
 No 47 47%
Total 100 100%

Table No. 4.13. GST on Alcohol

13. Is there GST on Alcohol ?

47% Yes

53% No

INTERPRETATION – Out of 100 Respondent, 53% Respondent says GST is applicable on

Alcohol and 47% Respondent says GST is not applicable on Alcohol. Hence, GST is not
applicable On Alcohol. Thus there is no GST on alcoholic liquor for human consumption but
these goods would be subject to existing State levies.

Chart No. 4.14. Positive Impact of GST

Category Response Percentage

Current GST rates are far less 38 38%

than previous service tax
Option of input tax credit 33 33%
GST return file process is 29 29%
now quicker and easier
Total 100 100%

14. What is Positive Impact of GST?

29%
38% Current GST rates are far lessthan
previous service tax on food mall
Option of input tax credit

GST return file process is now

quicker and easier

33%
INTERPRETATION – From pie diagram below information is obtained, 38% Respondent says
Positive impact of GST on food mall is Current GST rates are far less than previous service tax ,
33% Respondent says Positive impact of GST is Option of input tax credit and 29% Respondent
says Positive impact of GST. return file process is now quicker and easier.
Table No. 4.15. Negative Impact of GST
Categor Response
y
Confusion about Percentage
rates
41 41%

Loss of revenue 19 19%

Higher tax rate 28 28%

Short term inflation 12 12%
Total 100 100%

Table No. 4.15. Negative Impact of GST

15. Whatis NegativeImpact of GST?

12%

41% Confusionaboutrates
Lossof revenue
28% Highertax rate
Shortterminflation

19%

INTERPRETATION – From pie diagram below information is obtained, 41% Respondent says
Negative impact of GST is Confusion about rates, 19% Respondent says Negative impact of
GST is Loss of revenue, 28% Respondent says Negative impact of GST on food mall is higher
tax rate and 12% Respondent says Negative impact of GST isShort term inflation.
 Table No. 4.16. Type of registration better for business

Composition
Response Percentages
45 45%
Regular 55 55%
Total 100 100%

Chart No. 4.16. Type of registration better for business

16. What type of registration better for business?

45%
Composition
Regular
55%

INTERPRETATION – Out of 100 Respondent, 45% Respondent says that type of registration
better for is Composition and 55% Respondent says that type of registration better for is regular
So, I think composition registration better for. If the owner opts for composition scheme than he
is required to pay GST @5% and file GSTR-4 return on a quarterly basis.
 Table No. 4.17. GST filing

Category Response Percentages

Simple 54 54%

Complicated 46 46%

Total 100 100%

17. How do you feel about GST filing ?

46
Simple
Complicated
54
INTERPRETATION – Out of 100 Respondent, 54% of total respondent feel about
GST filing is simple and 46% of total respondent feel about GST filing is complicated.
CHAPTER 5 :CONCLUSTION , SUGGESTION AND RECOMDATION
 CONCLUSIONS

The introduction of Goods and Services Tax (GST) would be a significant step in the reform
of indirect taxation in India. Amalgamating several Central and State taxes into a single tax
would mitigate cascading or double taxation, facilitating a common national market. The
simplicity of the tax should lead to easier administration and enforcement. GST is expected
to pave way for better e-commerce and will make industries more competitive. GST will be a
game changing reform for Indian economy by developing a common Indian market and
reducing the cascading effect of tax on the cost of goods and services. It will impact the Tax
Structure, Tax Incidence, Tax Computation, Tax Payment, Compliance, Credit Utilization and
Reporting leading to a complete overhaul of the current indirect tax system.
Business is undergoing rapid transformation due to the globalization. Tax regime and policies
of any country are gaining high importance due to growing foreign trade between various
countries. In this competitive world of business, GST has a positive impact.
The problems with the anti-profiteering clause can be ironed out with more time and the
implementation of widespread education and price monitoring policies in the lead-up to the
GST. The formation of a committee to handle all complaints, creation of an audit unit
specifically geared towards anti-profiteering testing, and putting in place regulations
outlining what specifically constitutes anti-profiteering can help build corporate and public
trust in the GST.

It is also imperative to have a robust country wide IT network and infrastructure to make the
implementation seamless. The IT network work is still in progress. Government has launched
National Digital Literacy Mission for addressing the challenge of Digital Literacy. It is also
important to relook at the targets given that GST is a reality. It is only when these concerns
are addressed GST shall achieve the Goal of 'One Nation, One Tax and One Market'. It can
also be concluded from the above discussion that GST will provide relief to producers and
consumers by providing wide and comprehensive coverage of input tax credit set-off, service
tax set off and subsuming the several taxes. It can be further concluded that GST have a
positive impact on various sectors and industry.

SUGGESTIONS AND RECOMMENDATIONS

Any new change is accompanied by difficulties and problems at the outset. A
change as comprehensive as GST is bound to pose certain challenges not only for
the government but also for business community, tax administration and even
common citizens of the country. Some of these challenges relate to the
unfamiliarity with the new regime and IT systems, legal challenges, return filing
and reconciliations, passing on transition credit. Lack of robust IT infrastructure
and system delays makes compliance difficult for the taxpayers. Many of the
processes in the GST are new for small and medium enterprises in particular,
who were not used to regular and online filing of returns and other formalities.

Based on the feedback received from businesses, consumers and taxpayers from
across the country, attempt has been made to incorporate suggestions and reduce
problems through short-term as well as long-term solutions. After rectifying
system glitches, E-way bill for inter-State movement of goods has been
successfully implemented from 01.04.2020. As regards intra-State supplies, option
was given to States to choose any date on or before 03.06.2020. All States have
notified e-way bill rules for intra-State supplies last being NCT of Delhi where it
was introduced w.e.f. 16.06.2020. A total of 37.12 crore e-way bills for inter-State
movement and 3.17 crore for intra-State movement have been generated till
31.05.2021.

NAA has initiated investigation into various complaints of anti-profiteering and

has passed orders in some cases to protect consumer interest.

To expedite sanction of refund, electronic filing of refunds, along with all supporting
documents/invoices, has been enabled on the common portal.
Clarificatory Circulars and notifications have been issued to guide field formations
of CBIC and States in this regard. The government has put in place an IT grievance
redressal mechanism to address the difficulties faced by taxpayers owing to
technical glitches on the GST portal.

The introduction of GST is truly a game changer for Indian economy as it has
replaced multi-layered, complex indirect tax structure with a simple, transparent
and technology–driven tax regime. It will integrate India into a single, common
market by breaking barriers to inter-State trade and commerce. By eliminating
cascading of taxes and reducing transaction costs, it will enhance ease
of doing business in the country and provide an impetus to ―Make in India‖ campaign. GST will result in ONE
NATION, ONE TAX, ONE MARKET‖.
BIBLIOGRAPHY
www.gstcouncil.gov.in www.icai.org
www.gstindia.com
http://gstcouncil.gov.in/compendium-articles-
gst https://www.icai.org/post.html?
post_id=6894
https://cleartax.in/s/gst-cases-where-input-tax-credit-is-unavailable
https://www.taxinvestcare.com/2020/02/Goods-and-services-tax.html?m
https://www.voolsy.com/updates/blog/overview-impact-gst-restaurant-industry/
Pinki, Supriya Kamma and Richa Verma, “Goods and Service Tax- Panacea for Indirect Tax System
in India”, “Tactful Management Research Journal”, Vol2, Issue 10, July 2014
Agogo Mawuli “Goods and Service Tax – An appraisal” Paper presented at the PNG Taxation
Research and Review Symposium. Holiday Inn, Port Moresby. Pg. No.29-30. April 2014
Nitin Kumar (2014), “Goods and Service Tax in India- A way forward”, “Gobal journal of
multidisciplinary studies” Vol3, issue 6, may 2014
Nishita Gupta, GOODS and service tax: Its implementation on Indian economy. CASIRJ volume
5 issue 3 (year 2014) ISSN 2319-9202, Pg. no 126-133.
Dr. R. Vasanthagopal (April 2011) “GST in India: A Big Leap in the Indirect Taxation System”,
international journal of trade, economics and finance, vol2, 2 April, 2011
Ehtisham Ahamad and Satya Poddar, “Goods and Service tax reforms and intergovernmental
consideration in India”, “Asia research center” L.SE Volume4, pg. 138-151 in 2009
Sehrawat,: ISSN-2350-0530(O) ISSN-2394-3629(P) Impact factor:2.035(120R)
Http://www.granthaalayah.com @Intrenational journal of research GRANTHAALATAH,
December,2015 Vol3 issue12 pg. 1333-14
Garg, R. and Garg, S. Hand Book of GST in India: Concepts and Procedures, Bloomsbury India
Professional, 2014.
Alka Saha (2017), “Integrated Goods and service tax an Indian-innovation”, INTRNATIONAL
JOURNAL FOR INNOVATIVE RESEARCH IN MULTIDISCIPLINARY FIELD, Assistant
Professor, Department of Accounting and Financial Management, Faculty of Commerce, The
Maharaja Sayajirao University of Baroda.
Dash. A (2017), “Positive and Negative impact of GST on Indian economy”, International Journal
of Management and Applied Science, Biju Pattanaik University of Technology, India.
Dr. Manjunath and et. Al (2016), “ Customer satisfaction in Fast food industry”, International
Journal Of Research in Finance and Marketing, B. N. Bahadur Institute of Management Science,
Mysore, Karnataka.
Jonathan and et Al (2017), “Impact of GST in hotel and restaurants”, International Jornal of
Academic Research and Development, Head and Assistant professor, Department of Hotel
Management, AJK College of Arts and Science, Navakkarai, Coimbatore, Tamil Nadu, India.
Poonam (2017), “Goods and service tax in India- An Introductory study”, International journal
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Teg Bahadur Khalsa College, Sri Anandpur Sahib, Punjab, India.
APPENDIX

Name:
Gender:

o Male

o Female

Age Group:

o 18-30

o 30-45

o 45-60

o 60-Above

Occupation:

o Student
o Salaried Person
o Self Employed
o Others
Q.1. Is GST is a very good tax reforms for India?
o Yes
o No

Q.2. Do you think after implementation of GST the prices of goods and services has increased? ?

o YES

o NO

Q.3. What is GST ?

 o Goods and
services tax

o Government
sales tax

Q.4. Awareness about GST?

o Government
Notification
Media
o Friends and
Relatives
o CA’s
o Beneficiaries

Q.5. Reasons for payment of tax?

o Government
Regulation
o As a National
Responsibility
o Advice by Tax
consultant
o As a routine

Q.6. GST is “ONE NATION ONE TAX”?

o Strongly Agree
o Agree
o Strongly
Disagree
o Disagree
Q.7. Do you think GST is Progressive Tax?
o Yes
o No
Q.8. What is GST rate on AC Restaurants?

o 5% o 12% o
18% o 28%
Q.9. What is GST rate on NON AC Restaurants?

o 5% o 12% o
18% o 28%

Q.10. What is GST rate on 5 Star Restaurants?

o 5% o
o 12%
o 18%
o 28%
Q.11 Are you aware about GST features?

o Full y
o partly
o Not aware
Q.11.Is GST applicable for take away
food?
o Yes

o No

Q.12.Is there GST on Alcohol?

o Yes
o No
Q.13.What is Positive Impact of GST ?
o Current GST
rates are far less
than previous
service tax on
food mall o
Option of input
tax credit
o GST return file
process is now
quicker and
easier

Q.15.What is Negative
Impact of GST ?
o Confusion about
rates
o Loss of revenue
o Higher tax rate
o Short term
inflation
Q.16. What type of registration better for business?
 o Composition
o Regular
Q.17. How do you feel about GST filing?

o Simple
o Complicated