SUMMER TRAINING PROJECT REPORT

ON
“IMPACT OF GST IN INDIA “
Submitted in Partial Fulfilment of the requirements for the Two
Years Full-Time Master in Business Administration.
(AFFILIATED TO DR. A.P.J. ABDUL KALAM TECHNICAL UNIVERSITY, LUCKNOW)

(SESSION – 2022-24)

Submitted to: Submitted By:

Mr. NAME OF STUDENT
Asst. Prof. MBA MBA-III SEM
Roll no.-

IIMT ENGINEERING COLLEGE, MEERUT

I
CERTIFICATE

II
 DECLARATION

I hereby declare that the project report entitled in the partial

fulfilment of course curriculum of the degree of Master of
business administration from IIMT ENGINEERING
COLLEGE, MEERUT.

The Work Done by me is my own piece of Work and Authentic

to the best of my knowledge under the supervision of ………..

Place: MEERUT NAME OF STUDENT

MBA III SEM
ROLL NO.

III
 ACKNOWLEDGEMENT

I take this Responsibility to express my profound and sincere

gratitude to MBA, for providing me with the opportunity to
explore the corridors of the corporate world and gather
invaluable knowledge and partial experience via Summer
Internship Project.

The successful completion of the internship would not have

been possible without the guidance and support of many
people. I express my sincere gratitude to CA SANDEEP
KUMAR for allowing doing my internship at SANDEEP
BHALLA & CO.

I am thankful to my internal guide ASST. PROF. MR.

…………for his constant support and inspiration throughout
the project and invaluable suggestions, guidance and also
for providing valuable information. Finally, I would also like
to thanks all those people who are directly or indirectly related
in the completion of this project report.

IV
 TABLE OF CONTENT

PARTICULARS Page No.

Title Page I
Certificate of Internship II
Declaration III
Acknowledgement IV
Table of Content V
Executive Summary VI

Chapter 1: Company Profile 1

Chapter 2: Introduction to Topic (GST) 5
Chapter 3: Literature Review 18
Chapter 4: Research Methodology 23

Chapter 5: Data collection & Interpretation 27

Chapter 6: Findings 31
Chapter 7: Conclusion 34
❖ Bibliography 36
❖ Questionnaire 37

V
 Executive Summary

As an aspirant finance student of MBA course have selected

new & fresh taxation revolution in India named “GST“. As a
taxpayer of India one should enter under GST Act with the
“Registration”. Hence topic of SIP selected as “A Study of GST
Registration Process under GST Act 2017”
While learning, the purpose of the “Registration under GST “
is to learn the procedure of GST registration for different types
of taxpayer like individual, proprietorship, partnership along
with the solutions for the obstacles.
Some problems faced during the GST registration like RC
cancelled, validation error, pan details mismatch, pending for
verification, ARN not received, DSC not registered, OTP not
received, provisional ID etc. Many of these problems solved
through get in touch with GST helpdesk and discussion with
experts and seniors. In the above list few problems incurred
due to technical reasons and many of them due to clerical
mistakes.
Therefore, here like to conclude that the project taught
excellent problem solving approach and acclimatize with the
new approach, concept of the revolutionary GST Act
implemented in India.

VI
 CHAPTER -1
COMPANY PROFILE

1
 COMPANY PROFILE

Name of the Firm: ………..

Date of Establishment: 2013
Address: Shop No. ………..

COMPANY INFORMATION
Established in 2013, Mr. ………(Chartered Accountant), is an
acknowledged consultant for financial planning. This
consultancy provides a full spectrum of financial and
accounting services, investment consultancy, project
evaluation and services related to all types of business and
corporate agreements. Their speciality lies in providing end-to-
end support to start-ups as well as in shop act consultancy. This
consultant's office is at……….., Meerut.

Professional service offered Accounting

1. Assisting corporate entities including Branches of domestic

enterprises to maintain account and comply with local tax laws
and RBI guidelines.

2
2. Pre-audit review of account and Preparation of final
statement of account such as profit and loss accounts, Balance
sheet and Cash flows in accordance with legal requirement and

accounting Standards, both Indian and International, so as to

facilitate smooth completion of audit by Independent auditors.

They are specialized in the following areas:

1. Accounting including Payroll processing

2. Statutory Audits, Internal Audits, Tax Audits and VAT
Audits
3. Transfer Pricing Study and Audit and Domestic Taxation

Auditing

1. Statutory audit of private companies as required by law for

reporting to the Shareholder.

2. Internal/concurrent/Management audit of corporate/ non-

corporate.

3. Stock/ Fixed assets/ Special audits for reporting to finance

institutions/Banks/management for ascertaining the security
coverage and other related matter.

4. Audit of entries, as required under the Income Tax Act,

VAT Act and other status.
3
Taxation

❖ Consultancy/ advisory services for tax planning in order

to comply with the various laws of the country, direct and
indirect, whether under normal provisions or under double
Taxation Avoidance Agreements, including withholding
taxes.

❖ Representation before the Appellate and Administrative

authorities at all levels in respect of appeals review
petitions prepared for clients under direct tax laws such as
Income Tax/ Service Tax.

SOFTWARE USED:

They used various accounting systems and software such as

Compu tax and Tally. They have efficient software of tax, those
are linked to Income Tax and Other Departments websites to
file the returns electronically.

4
 CHAPTER -2
INTRODUCTION TO GST

5
 INTRODUCTION TO GST

GST is known as the Goods and Services Tax. It is an

indirect tax which has replaced many indirect taxes in
India such as the excise duty, VAT, services tax, etc. The
Goods and Service Tax Act was passed in the Parliament
on 29th March 2017 and came into effect on 1st July
2017.

In other words, Goods and Service Tax (GST) is levied

on the supply of goods and services. Goods and Services
Tax Law in India is a comprehensive, multi-stage,
destination-based tax that is levied on every value
addition. GST is a single domestic indirect tax law for the
entire country.

6
In order to offset the GST payable on the goods and
services he would deliver, the supplier is permitted
to claim a credit for the GST paid on the products and
services he purchased at each stage. As a result, set-off
opportunities are available at all earlier levels, and only
the ultimate customer is liable for the GST imposed by
the supply chain's last supplier. Because only the value
contributed at each level is taxed, there is no tax on tax
or cascading of taxes under the GST system.

In 1954, the GST was first implemented in France.

Nearly 160 nations throughout the world employ this
indirect taxation system. Some of the nations that make
use of this taxing system include the following. Several
nations, including France, Australia, Singapore, the
United Kingdom, Spain, Italy, Nigeria, Brazil, South
Korea, Canada, Vietnam, and Monaco, impose this tax.

Why GST has been proposed?

According to our Constitution, the Central Government

may impose excise taxes on manufactured goods and
service taxes on the provision of services. Additionally,
it gives state governments the authority to charge a sales
tax or value-added tax (VAT) on the purchase of goods.
There are many different indirect taxes in the nation as a
result of this exclusive division of fiscal authority.
Additionally, the central government imposes central
7
sales tax (CST) on the interstate sale of products;
nevertheless, the exporting States are responsible for
collecting and keeping this tax. Additionally, a lot of
States charge an entry fee for products entering local
territories.

A complicated indirect tax system with many buried

expenses for business and industry has developed in the
nation as a result of the multitude of taxes levied at the
State and Central levels. At various points in time, the
Indian government tried a variety of tax policy reforms
in an effort to streamline and rationalize indirect tax
structures. In 2002, the central government instituted a
system of VAT on services. State sales taxes are
collected by the states through the CST on interstate
trade and the VAT imposed on intrastate trade that was
implemented in 2005. Theoverall taxes system is still
complicated and contains a number of exemptions
despite all the numerous improvements.

As a result, the "One Nation, One Tax" concept and the

implementation of GST in the Indian financial system
were born. Simply put, this is quite similar to the VAT
that is already in place in the majority of the states and
can be referred to as National level VAT on Goods and
Services, with the exception that in this system services
are included as well as goods, and the rates of tax are
generally the same.

8
Different types of taxes:

In India, different types of taxes are common. In India,

taxes can be direct or indirect. The types of taxes,
however, also depend on whether a specific tax is
imposed by the federal, state, or any other municipalities.

9
 WHY GST REQUIRED IN INDIA

• One Nation One Tax

• GST has replace all indirect taxes with uniform levy

• Equal GST rate all over the country

• Reduce the complicated tax structure and input credit

related issues

• Easy in compliance and maintenance of records

• To increase taxpayer base in India

• Improvement in international cost competitiveness

• Weapon against corruption

• Enhancement in efficiency of manufacture and

distribution

10
 TAX STRUCTURE

GST will have four slabs of indirect taxation: 5%, 12%, 18% and
28%, with goods and services attracting any of these slab
percentages depending on various factors such as being a
luxury good/service. The current indirect tax structure will give
way to a Dual GST model, with the Centre and States
simultaneously levying GST on a common tax base, as follows:

➢ Central GST Bill (CGST): For intra-state transactions related

to supply of goods and/or services, levied by the Centre.

➢ State or Union Territory GST Bill (SGST or UTGST): For

the supply of goods and/or services in the States and Union
Territories, levied by the States /Union Territories

➢ Integrated GST Bill (IGST): For inter-state transactions and

imports related to supply of goods and/or services, carried out by
the Centre.

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5% • Household necessities such as
edible oil, sugar, spices, tea, and
coffee (except instant) are
included.
• Cashew nuts/cashew nuts in shell
• Ice and snow
• Bio gas
• Insulin
• Incense stick
• Coir mats, matting and floor
covering

12
12% • Preparations of vegetables, fruits, nuts or
other parts of plants, including pickle,
murabba, chutney, jam, jelly

• Ketchups, sauces and mustard sauce but

excluding curry paste, mayonnaise and
salad dressings, mixed condiments and
mixed dressings

• Bari made of pulses including soyabean

• Menthol and menthol crystals, peppermint,

fractionated/de-terpenated mentha oil,
dementholised oil, Mentha piperita oil
and spearmint oil

• All diagnostic kits and reagents

• Plastic beads

• Exercise books and note books

• Glasses for corrective spectacles and flint

buttons

• Spoons, forks, ladles, skimmers, cake

servers, fish knives, tongs

13
18% • Hair oil, toothpaste and soaps, capital
goods and industrial intermediaries, Kajal
, pencil sticks

• Dental wax

• Plastic Tarpaulin

• School satchels and bags other than of

leather or composition leather, toilet cases,
Hand bags and shopping bags of artificial
plastic material, cotton or jute; Handbags of
other materials excluding wicker
work or basket work

• Headgear and parts thereof

• Precast Concrete Pipes

• Salt Glazed Stone Ware Pipes

• Aluminium foil

• All goods, including hooks and eyes

14
28% • Luxury items such as small cars, consumer
durables like AC and Refrigerators,
premium cars, cigarettes and aerated
drinks, High-end motorcycles are included.

POSTIVE IMPACT OF GST ON CONSUMERS:

1.The introduction of GST served to unify a number of indirect

taxes, including CST, VAT, service tax, SAD, CAD, excise,
and others.

2.The cascading effect of taxes, or tax on tax, was stopped with

the introduction of the goods and services tax.

3.Manufacturing costs will decrease as a result of the GST's

reduction in the tax burden on the manufacturing sector. As a
result, it is also expected that consumer good prices will drop.

4.Some products, like vehicles and FMCG, will be a little less

expensive as a result of decreasing manufacturing costs.

5.As a result, the average person will have to spend less money
to obtain the same goods and services that were previously
more expensive.

6.Low prices will boost demand and consumption of

commodities either directly or indirectly.

15
7.Demand growth will ultimately improve supply. As a result,
this will eventually lead to an increase in product production.

8.A rise in production will eventually lead to more job

possibilities. However, this is only possible if consumers really
receive things at lower prices.

9.This will reduce the flow of illicit currency. Only when the
KACHA or Invalid Bill system, typically used by traders and
shops, will be checked, would it be possible.

10.A single tax code will lessen corruption, which will either
directly or indirectly benefit the average person.

11.Most importantly, economists anticipate that the GST will

have a good long-term effect on the Indian economy.

❖NEGATIVE IMPACT OF GST ON CONSUMERS:

1.Compliance burden: You must timely file your return

and submit GST.

2.It's not as simple as it seems to file GST returns. You must

designate a tax expert too versee it.

3.The government is taking measures to simplify and make

filing taxes easier. Even so, it will take time to genuinely
streamline the whole procedure from beginning to end.

16
4.With enough staff, large organizations can manage the
process more easily. However, itis still complicated for small
business owners, service providers, and people who have
recently launched their own ventures.

5.The current service tax rate is 15%, and it is applied to

services. Therefore, the price of services will rise if GST is
implemented at a higher rate, which is expected to happen soon.
Maximum services would be subject to GST at 18%, and some
services will be subject to GST at 28%. Which implies that all
services, including banking, travel, and telephones, will
become more expensive. The cost of services will increase due
to the higher service tax, which will be added to the average
person's monthly expenses.

6.You will need to adjust the average person's budget to cover

the cost of new services.

7.Everyone is still learning and adjusting to the new legislation,

including business people and service providers. At this
moment, there is a growing reliance on tax professionals, which
raises some additional business costs.8.

8.After a given amount of time, the true effects of GST can be

felt.

9.Since the Goods and Services Tax (GST) is a consumption-

based tax, the location of the service's provision must be
identified.

17
 CHAPTER-3
LITERATURE REVIEW

18
 Literature Review

1. YEAR: 2021
TITLE OF THE PROJECT: Tax Administration
AUTHOR: Sourav Das
CONCLUSION:

He has discussed the impacts of GST reforms of efficiency,

growth and redistribution of income in India. This paper is
aimed mainly at evaluating the micro and macro effect of GST
with a sophisticated mainframe model of the overall
equilibrium of the Indian economy. The paper is a complex
CGE model based on the Indian economy’s micro stable input-
output statistics to analyze the impacts of GST on resource
allocation capacity in productive sectors, income development,
and income redistribution among households. While GST
reforms would increase the competitiveness in goods and
services development across India’s major economic sectors by
removing inequalities in goods and services generation and
delivery, clarity in taxation would help to sustain a growth rate
in over 7% for exports, investments and physical resources.

The result of GST reforms are extremely positive for the Indian
economy on production, capital formation, expenditure,
consumption and employment. Since, the GST reforms, tax
allocation is now fairer. The economic well-being and income
of households were 8% higher than the average .

19
2. YEAR:2020
TITLE OF THE PROJECT: On the basis of Tax
Knowledge
AUTHOR: Ajay Sharma

CONCLUSION:

The researcher notes in his report that this indirect tax structure
is modified. However, with this new tax system, people do not
have much knowledge and understanding about GST-shift, the
Small Business Persons (SBP) was the most affected group.
The researcher has observed GST knowledge among SBPs of
this new tax structure. The awareness was initially small, but
the level of awareness also increased among SBP’s as the time
went by. Few SBPs have found the program simple and few
make efforts to familiarize themselves with the new system.

There is no internet connection in many areas, which means

that work is not done intime? All this is adding up to the
problems of the SBPs. The government will attempt to get
people to know GST more. The GST was seen as straight
forward, but enforcement costs give SBPs a burden.

3. Bar hate (2017):

found that people have no doubt whatsoever regarding

the proposed benefits of GST irrespective of their business
type, legal status of business for the reason being they feel
irritated by the present system which appears to be
cumbersome. Most respondents believe that GST will bring
monetary gains to their business and do not anticipate any

20
significant boost in tax compliance costs. Interestingly,
respondents expect the spending on tax compliance to go down
after GST is implemented. The lack of information coupled
with the apathy towards reforms may paralyze the speedy
implementation of this system especially in small towns where
still not a single orientation programs have been planned and
executed till date by competent authorities.

4. YEAR: 2017
TITLE OF THE PROJECT: Impact of GST on Indian
economy
AUTHOR: Jadhav Bhikha Lala

CONCLUSION:
Goods and Service Tax (GST) is a full tax charge on
manufacture, sales and expenditure of goods and services. The
fundamental aim of GST is to make uniform the scattered
indirect tax system in India and avoid the cascading effect in
taxation. The impact going to make by GST will be a
transformation in the entire tax system in India. GST is termed
as biggest tax reform In Indian Tax Structure. It will not be an
additional tax, it will include central excise duty, service tax
additional duties of customers at the central level, VAT, central
sales tax, entertainment tax, octroi, state surcharge, luxury tax,
lottery tax and other surcharge on supply of goods and services.
The purpose of GST is to replace all these taxes with single
comprehensivetax, bringing it all under single umbrella. The p
-urpose is to eliminate tax on tax. This paper will throw light
on GST its features and also effect of GST on prices of goods
and Services.

21
5. Times of India dated (27 July, 2017):

stated that the GST implication across different places for the
same product has wider differences which the consumers are
unaware, resulting them in surprise. Ex: A Rasmalai sold in
counter at a shop is taxed with 5% but if it is served in the hotel
it is taxed with 18% this has resulted in difference of consumers
shopping to purchase the similar products.

6. International Journal of Scientist research

and management (2014):

Girish Gargh Assistant Professor from PGDAV College

University of Delhi has published paper titled- Basic Concepts
and Features of good and service tax in India. In this paper he
has given the outline of GST and what does this tax system
wants to achieve with threats and challenges opportunities that
the free market economy can bring.

22
 CHAPTER-4
RESEARCH METHODOLOGY

23
 RESEARCH METHODOLOGY

I looked into the issues surrounding the topic "Impact of GST

in India, "which has already been defined and has moved from
well-known to little-known terms and facts by many
researchers, but I discovered a lot of fresh information and
other people's suggestions on the matter.

I conducted my research using both primary and secondary

data, and after gathering the data from both sources, I
established my research design and sample size.

OBJECTIVE OF THE STUDY:

The current study's objectives are to investigate the connection
between income and consumer spending patterns in India and
to assess the "effect of GST on consumer spending patterns in
India."

1)The Goods and Services Tax Act should be understood,

2)To comprehend and be aware of consumer buying habits.

3)To comprehend the effects that the GST has on the populace.

4)To be aware of the goods and services on which the GST

has had the biggest impact.

LIMITATION OF THE STUDY:

1.Lack of Information

2.Lack of education about GST

24
3.Lack of Time

4.Short sample size

5.This study is limited to Meerut.

1.Research Design:
With the aid of a few key categories of research design, we can
create the research design and frame work. Such as:

i. Exploratory Research Design

ii. Descriptive Research Design
iii. Causal Research Design

I conducted research on the subject of "Impact of GST in

India" using both exploratory and causal research designs and
I came up with some extremely useful and original findings.
Design for Exploratory Research Regarding my research topic,
I used to look into and examine the concerns and problems that
Indian citizens and consumers faced. From Ahmedabad. I
carried out an exploratory study in India using a questionnaire
with a time-based Likert Scale structure. And Causal Research
design I used to concentrate on situation analysis and
Identifying specific issues.

2. Scope of study:
To understand the "Impact of GST in India," a
surveyis being performed in Ahmedabad using a questionnair
e with the help of social networking sites. The sample units are
25
the customers who used their money to buy various goods and
services to satisfy their requirements and wants.

3. Sample Size:
I approached 100 consumers in the entire population of
Ahmedabad with the questionnaire in order to gather primary
data for my research project, "Impact of GSTon Consumer
Spending Behavior in India," but only 70 returned
questionnaires (some of which were incomplete) were returned
by the consumers, so I ultimately chose the70 questionnaires.
And finally, I prepared the sample size of 70 questionnaires.

4.Methods of Data Collection:

•Primary Data Collection:

I collected the primary data through Questionnaires.

•Secondary Data Collection:

I collected Secondary data through,

✓The Books,
✓Internet (Google, Website),
✓By published Articles,
✓By scholar thesis and Research

26
 CHAPTER-5
DATA COLLECTION & INTERPRETATION

27
 DATA COLLECTION & INTERPRETATION

Gender:

Gender Num. of Percentage%

Respondent

Male 45 64.3%

Female 25 35.7%

No. of Respondents

25, 36%

45, 64%

Male Female

Interpretation:

According to this chart it is clear that majority of the

respondents are male i.e. 64.3% are male and 35.7% are
Female.
28
Age:

Age group No. of Respondent Percentage%

18-25 42 60%
25-35 18 25.7%
35 & above 10 14.3%

Num. of Respondents

14%

26%
60%

18-25 25-35 35 & Above

Interpretation:

This chart shows that majority of respondents are 18– 25 years

i.e. 60% respondents are 18– 25 years, 25.7% respondents are
25 –35 years and remaining14.3% respondents are 35 & above.

29
Education:
Education No. of Respondents Percentage(%)
Under Graduation 6 8.6%
Graduation 39 55.7%
Post Graduation 16 22.9%
Any other 9 12.9%

NO. OF RESPONDENTS
Under Graduation Graduation Post Graduation Any other Qualification

13% 8%

23%

56%

Interpretation:
This chart shows that majority of respondents are Graduation
i.e. 55.7% respondents are Graduation, 22.9% respondents are
post-graduation, 12.9%respondents are any other qualification
and remaining 8.6% respondents are under graduation.

30
CHAPTER-6
FINDINGS

31
 FINDINGS
1.Most of the respondents are Male.

2.Majority of the respondents are come to the age group

of 18-25 years.

3.Majority of respondents are graduate.

4.Majority of the respondents are related to employee

category.

5.Most of the respondent monthly income is below 10000.

6.Many of the respondent opinion is the normal goods and

finished goods for most impacted by the GST.

7.Majority of respondents opinion is entertainment services

are most impacted by GST.

8.Many of the respondent opinion is pharmaceuticals &

medical supplies are to be tax exempt by the GST.

9.Majority of respondent are neutral about the GST is work to

improve the consumer spending power.

10.Many of the respondent are Neutral about the very

significant correlation between “necessary routine household
products and income” is demonstrated by the GST act.

32
11.Most of the respondent are also neutral about this GST
eliminate the impact of cascading taxes on goods and services.

12.Majority of consumers is also neutral about this the risk of

tax fraud and evasion is decreased by the GST.

13.Majority of the consumers are agreed about the

government profit from eliminating the value-added tax.

14.Majority of the respondent are agreed and neutral about the

place any accounting burden on business men.

15.Majority of respondent are agreed about this consuming

electronic goods is encouraged by the goods & service tax.

16.Majority of people are agreed about the GST rate

affect comparable goods.

17.Majority of people are also agreed about the GST has a

direct impact on every consumer, according to the income
tax Act.

33
CHAPTER-7
CONCLUSION

34
 CONCLUSION

• Do the consumers get the benefits from GST? This is a very

tricky question and there is no definitive answer to this, as for
the producers and the government, the straight answer was
YES. But the benefits from GST for the consumers it is not that
simple. This is because the GST will have different impact on
different goods and services used by consumers. One thing is
for certain that, it will bring down the prices and leading to
increasing the demand for goods and services which would
benefit to the consumers, but not everything will become
cheaper.

• If the government will take necessary care for essential

commodities prices, there will not be any hike and then the
consumers will not suffer. With all these facts stated above,
there is no denying the fact the GST impact on consumers looks
like a mixed stake, making few things cheaper and some
costlier.

35
BIBLOGRAPHY

36
 QUESTIONNAIRE

1. Do you think implementing GST will cause higher price of

goods & services?

( ) Yes
( ) No

2. Do you think all businesses need to be registered under

GST?

( ) Yes
( ) No

3. How do you get know about GST?

From :( ) Friend/Family
( ) Mass Media
( ) Online source
( ) Other : _______________

4.Which system do you think is more beneficial to both

Government and people?

( ) Goods & Service Tax

( ) Sales Tax & Service Tax

5. Do you think GST will burden the people/consumer?

37
 ( ) Yes

( ) No

6.. Do you think GST will be easier to comply with or

difficult?

( ) Easier

( ) Difficult

( ) Don’t know

7. Which goods and services are must impacted by the

GST?

( ) Routine Household Goods

( ) Electronic Items

( ) Entertainment services

( ) All of the above

( ) None of the above

8. Which of these Goods and Services ought to be tax-

exempt?

( ) Mineral Water

( ) Butter & Ghee

38
 ( ) Pharmaceuticals & Medical supplies

( ) All of the above

( ) None of the above

9. The risk of tax fraud and evasion is decreased by the

GST?

( ) Strongly Agree

( ) Agree

( ) Neutral

( ) Disagree

( ) Strongly Disagree

10. Does the government profit from eliminating the value -

added tax?

( ) Strongly Agree

( ) Agree

( ) Neutral

( ) Disagree

( ) Strongly Disagree

39