Annexure-V- Cover Page for Academic Tasks

Course Code: MGN-303 Course Title: BUSSINESS ENVIRONMENT

Course Instructor: Ravish Verma, Kavita Verma

Academic Task No.: Task 2 Academic Task Title: GST

Date of Allotment: 17/09/2018 Date of submission: 01/10/2018

Student’s Roll no:25,26,27,28 Student’s Reg. no:11811505,11811683

Evaluation Parameters: (Parameters on which student is to be evaluated- To be mentioned by

students as specified at the time of assigning the task by the instructor)

Learning Outcomes: we learned more about the concept of GST

Declaration:

We declare that this Assignment is our work. We have not copied it from any other student’s work
or
from any other source except where due acknowledgement is made explicitly in the text, nor has
any part
been written for me by any other person.

Student’s Signature: Soumya Ranjan, Sai Bharath

Evaluator’s comments (For Instructor’s use only)

General Observations Suggestions for Improvement Best part of assignment

Evaluator’s Signature and Date:

Marks Obtained: Max. Marks: …………………………

 PEER RATING

Criteria Exceeds Fully Meets Minimally Meets Doesn’t Meet Max

Standards Standards Standards Standards Points
ROLL Na
Content Shows full Shows good Shows somewhat Does not seem no.
understandin understandin Understanding of to understand
g of the GST g of the GST the GST Act. the GST Act. 4
Act Act
A25 Soum
4 points 2 points No Points
3 points Ranja
Delivery Very clear Clear flow of Most ideas flow Difficult to
and and concise ideas. Shows but focus is lost at follow the A26
Enthusiasm flow of interest in times. Limited flow of ideas. A27
Ideas. the GST Act. interest in the GST Lack of A28 T. Sa
Shows high Act Enthusiasm 3
interest and Interest. Bhara
in the GST
Act.
2 points No points
3 points 1 point
Q/A Excellent Good Questions/discussio Limited or no
Discussion discussion discussion of n addressed surface attempt to
of Key main points features of the GST engage class in
points Act learning
Good
Excellent responses to Satisfactory Limited
responses questions responses response 3
to questions to questions to questions

3 points 2 points 1 point No points

Total 10
RUBRIC FOR REPORT ON GST ANALYSIS

Criteria Exceeds the Fully Meets Minimally Doesn’t Meet Rating

Standards the Standards Meets the the Standards
Standards
Ability to Has a very Properly Although Missed all of
clearly clear identifies the various aspects the important
identify understanding various aspects of problem are aspects of the
the case of the problem of the problem identified, but problem and is
challenges and is able to and is able to the description unable to 7
incorporate clearly point fails to clearly clearly
his/her out the nature define the GST identify the
knowledge/ of the GST Act Act problem.
insights in
addressing the
GST Act

7 points 6 points 5 points

No point
Ability to Suggestions Suggestions Suggestions Inappropriate
propose were were were suggestions
suggestions sufficiently adequately confusing, and does not
that can be specific, clear, identified and incomplete or align with the 7
 implemented and described. lacked GST Act.
appropriate relevance to
given the GST the GST Act
Act.
5 points
7 points 6 points No points
Ability to Able to clearly Shows the Shows Show no
apply relate the clear minimal understanding
different problem to understanding understanding of
concepts various and of various of various various
styles in shows provisions provisions provisions
addressing evidence under this GST under this GST under this 6
the of depth and Act. Act. GST Act.
issue at breadth of
hand. applying 5points
related
knowledge to 4 points No points
the issue.

6points
TOTAL 20

INTRODUCTION OF GST (GOODS & SERVICES TAX)

In this we take a closer look at what is GST.
GST is an indirect Tax which has replaced many Indirect Taxes in India. The Goods and Service Tax Act
was passed in the Parliament on 29th March 2017. The Act came into effect on 1st July 2017. Goods &
Services Tax Law in India is a Comprehensive, Multi-stage, Destination based tax that is levied on every
VALUE ADDITION.
In simple words, Goods & Service Tax (GST) is an indirect tax levied on the supply of goods and services.
This law has replaced many indirect tax laws that previously existed in India. GST is one indirect tax for the
entire country. That one nation one tax system is called GST.

So, before GST the pattern of tax levy was as follows.

Under the GST regime, the tax will be levied at every point of sale. In case of intra-state sales, Central GST
and State GST will be charged. Inter-state sales will be chargeable to Integrated GST.
The definition of GST is – “GST is a comprehensive, multi-stage, destination-based tax that will be levied on every
value addition.”

Multi-stage
There is multiple change of hands an item goes through along its supply chain from manufacture to final sale
to the consumer.
Let us consider the following case:
 Purchase of raw materials
 Production or manufacture
 Warehousing of finished goods
 Sale to wholesaler
 Sale of the product to the retailer
Sale to the end consumer
Goods and services tax will be levied on each of these stages which makes it a multi-stage tax.

Value Addition
GST will be levied on these value additions i.e. the monetary worth added at each stage to achieve the final
sale to the end customer.

Destination-Based
Consider goods manufactured in Maharashtra and sold to the final consumer in Karnataka. Since goods &
service tax is levied at the point of consumption, in this case, Karnataka, the entire tax revenue will go to
Karnataka and not Maharashtra.

Journey of GST in India

The GST journey in the year 2000 when a committee was set up to draft law. It looks 17 years from then for
the law to evolve. In 2017 the GST bill was passed in the Lok Sabha and Rajya Sabha. On 1st July 2017 the
GST law came into force.

Advantages of GST
GST will mainly remove the Cascading effect on the sale of goods and services. Removal of cascading
effect will directly impact the cost of goods. Since tax on tax is eliminated in this regime, the cost of goods
decreases.
GST is also mainly technologically driven. All activities like registration, return filling, application for
refund and response to notice needs to be done online on the GST portal. This will speed up the processes.
  Removing cascading tax effect
 Higher threshold for registration
 Composition scheme for small businesses
 Online simpler procedure under GST
 Lesser compliances
 Defined treatment for e-commerce
 Increased efficiency in logistics
 Regulating the unorganized sector

Components of GST
There are 3 taxes applicable under this system.
CGST, SGST & IGST.
CGST: Collected by the central government on an intra-state sale. (i.e. transaction happening within state)
SGST: Collected by the state government on an intra-state sale (i.e. transaction happening within the state)
IGST: Collected by the central government for inter-state sale (i.e. transaction happening with state to state)
In most cases, the tax structure under the new regime will be as follows.

Transaction New Regime Old Regime

Sale within the CGST+SGST VAT+ central Revenue will be
state excise/ service tax shared equally
between the center
and the state
Sale to another IGST Central sales tax + There will only be
state excise/service tax one type of tax in
case of inter-state
sales. The center
will then share the
IGST revenue
based on the
destination of
goods.
The non-GST goods such as
1) Petroleum crude
2) High-speed diesel
3) Motor spirit
4) Alcoholic liquor for human consumption

Objectives of the case study

  Ensuring that the cascading effect of tax on tax will be eliminated.
 Improving the competitiveness of the original goods and services, there by improving the GDP rate
too.
 Ensuring the availability of input credit across the value chain.
 Making a unified law involving all the bases, laws and administration procedures across the country.

Limitations of the case study

 Some of the shopkeepers was very busy.
 Some of them they don’t know about GST.
 Some shopkeepers are saying they are not having permission from higher authorities to share such
information.
 Some of them are not responding accurately.
 Some are not interested to tell that information.
Data analysis in chart

1) Have you faced any problem in getting GSTIN number?

Many of the people are not facing problems in getting GSTIN number because it is compulsory number to
every seller. 100% are saying yes.
 2) Are you facing any problem in filling GST3B return?

90% of them are saying they are not facing any problem in that situation. 10% of them are facing some kind
of problems.
3) Do you think the government has made adequate arrangements while making up the interface to file
return?

Maximum of the shopkeepers are saying they think the government has made adequate arrangements
while making up the interface to file return. 98% are saying yes and 2% are saying no.
4) What is the effect on your sales after implementation of GST?

Maximum shops are saying there is no profit nor loss after implementing GST and some of the shops are
affected by the GST.90% are saying no and 10% saying yes.
 5) Do you feel necessary to hire a professional accountant to file GST Returns?

Yes, many of them need a professional accountant to check their accounts. 100% are said yes.
 6) Have you got proper understanding about the GST calculation mechanism?

Some of the people are knowing the calculation of the GST and some unorganised sectors. 72% of them are
knowing the mechanism of calculation of the GST and 28% are don’t have the calculation of the GST.
 7) Are you facing any issue in input tax credit under GST?

Maximum people are not facing the problem of input credit tax.98% 0f them are saying No they are not
facing any problem and 2% are saying Yes having some problems.

8) Does GST provide relief to you from the overall tax burden?
72% are saying yes that GST provided tax burden and 28% are saying no that they didn’t get any relief in
paying of overall tax burden.

9) Is your business ready for GST?

100% are saying they are ready for GST.

10) Do you think that GST will cover unorganized sector also under taxation system?
99% of them are saying yes that GST will cover unorganized sector under taxation and 1% are saying no.

Findings and suggestions

 1) All of them replied that GST will cover unorganized sector also under the taxation system.

2) All of them are replied that their business is ready for GST.

3) Every shop accountant knows the calculation of the GST.

4) Majority of the people replied yes very few replied no. they are aware about GST.

5) In GST all the organizations have to fill returns online. The government has launched GST portal
where firm can fill return.

6) This shows that the government dealed in very much better way in the field of input tax credit.

7) GST3B return is a simple tax return form.

8) They said a professional accountant to file GST return is necessary.

9) There should be options to make corrections after submission of return in case of error.

10) The firm should not be penalized on late return of submission.

11) All of them replied that GST act affected them in a positive way because they were able to sell
products at a cheaper rate than before, since input tax is payed back.

Conclusion
Many economists and experts have predicted that the GST bill will boost up the economy in long run. India
is a collective economy where each state has its own set of rules for them. This makes the growth of the
country slow, causes difficulties to the businesses and higher possibilities of tax evasion and corruption to
make tax payment process simpler and create an environment for both, government as well as businesses,
and to reduce corruption, GST bill is introduced in India which is very important.
Goods & service tax is all set to integrate state economics 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 economy development by breaking tax barriers between manufacturing and
services, through a lower tax rate by increasing the tax base and minimizing exemptions.
It can be looked as simplification of taxes in country and avoiding unnecessary complexities. GST is directly
or indirectly adding wealth to nation only.