Study On GST - Vaibhav Soni

INSTITUTE OF MANAGEMENT STUDIES
GHAZIABAD
A
SUMMER INTERNSHIP PROJECT REPORT ON
STUDY ON GOODS AND SERVICE TAX AND COMPARISON
BETWEEN PREVAILING TAX REGIME AND GST REGIME.
OF
POST GRADUATE DIPLOMA IN MANAGEMENT
Academic session
2016-18
SUBMITTED BY
VAIBHAV SONI (BM-016267)
INDUSTRY GUIDE: SUBMITTED TO:

Mr. MAHESH SHARMA Mr. GAURAV DAWAR
HEAD OF DEPARTMENT FACULTY- FINANCE
OF ATMA AUTOTECH
1|Page
DECLARATION
I, Vaibhav Soni, do hereby declare that the Summer Internship Project entitled study on goods
and service tax and comparison between prevailing tax regime and GST regime has been
undertaken by me as part of my studies in the degree of Post-graduation diploma in management.
I have completed this study under the guidance of Mr. GAURAV DAWAR, PROFESSOR OF
FINANCE.
I also declare that this work has not been submitted for the award of any degree, diploma,
associate ship or fellowship or any other title in this Institute or any other College/ University.
Place: Ghaziabad Vaibhav Soni
Date: Registration No: - 016267
2|Page
CERTIFICATE
This is to certify that the Summer Internship Project submitted by Mr. Vaibhav Soni on the title
study on goods and service tax and comparison between prevailing tax regime and GST regime, is a
record of project work done by him during the academic year 2016-2018 under my guidance and
supervision in partial fulfillment of Post Graduate Diploma in Management. This Summer
Internship Project has not been submitted for the award of any degree, diploma, associate ship or
fellowship or any other title in the Institute or any other College/ University.
Place: Ghaziabad
Date: Prof. Gaurav Dawar
3|Page
CERTIFICATE FROM THE COMPANY
4|Page
ACKNOWLEDGMENTS
I am indebted to many people who helped me accomplish this internship successfully.
First, I thank to the Director, Dr. J.P. SHARMA of Institute of Management Studies for giving
me the opportunity to do my summer internship project.
I wish to take this opportunity to express my deep sense of gratitude to thank Mr. MAHESH
SHARMA (Head of finance) for this invaluable guidance throughout my project. I sincerely
thank ATMA AUTOTECH ENGINEERS PVT. LTD. for providing me with an opportunity to
work in the Finance Department of Atma to get an insight about the Prevailing Tax and GST
Regime.
I thank Prof. Gaurav Dawar, for his support and guidance during the course of my summer
internship. I remember him with much gratitude for his patience and motivation, but for which I
could not have submitted this work.
I thank my parents for their blessings and constant support, without which this summer
internship would not have seen the light of day.
Vaibhav Soni
BM- 016267
5|Page
TABLE OF CONTENTS
CHAPTER NO CHAPATER NAME PAGE NO.
Executive Summary 8
CHAPTER 1 Introduction 9
1.1 Industry overview 10-12
1.2 Company overview 13-22
1.3 Introduction to the GST 23-30
CHAPTER 2 Literature review 31-33
CHAPTER 3 Objective of the study 34-35
CHAPTER 4 Research methodology 36-37
CHAPTER 5 Main elements of GST 38-43
CHAPTER 6 Current indirect tax regime in INDIA 44
6.1 Indirect tax 45
6.2 Types of indirect tax 45-49
CHAPTER 7 Comparison between current tax regime and GST regime 50
7.1 Difference in current tax regime and GST regime 51
7.2 Tax rates before and after GST 52-55
CHAPTER 8 Case analysis 56-60
CHAPTER 9 Interpretation, benefits and limitations of GST 61
9.1 Interpretation 62
9.2 Benefits 63
9.3 Limitations 64
CHAPTER 10 Impact of GST on manufacturing Sector 65-68
Bibliography 69
Annexure 70
6|Page
LIST OF TABLE AND FIGURES
FIGURE/TABLE NO. TABLE/ FIGURE NAME PAGE NO.
TABLE 1 Plastic Production In Megatons 10
TABLE 2 Work Handled By Atma Autotech 20-21
TABLE 3 Difference Between Tax Regimes 51
TABLE 4 Rates Difference For Consumer Goods 52
TABLE 5 Rates Difference For Lifestyle And Home 52
TABLE 6 Rates Difference For Beauty And Persona Care 53
TABLE 7 Rates Difference For Kitchenware And Appliances 53
TABLE 8 Rates Difference For Metals And Minerals 53-54
TABLE 9 Rates Difference For Other Goods 54
TABLE 10 Rates Difference For Services 55
TABLE 11 Question For Normal Goods 57
TABLE 12 Question Of Manufacturing Of Machine 58-59
TABLE 13 Question Of Manufacturing Of Plastic Product 59-60
7|Page
EXECUTIVE SUMMARY
This report is structural as well as procedural study about the extent of flexibility and
transparency present inside the framework of financial industry. GST stands for goods and
service tax, GST will be a single destination based tax that will replace existing taxes, including
CENVAT, octroi, Sales tax, and excise duty, etc. unlike the old tax structure, where the state of
origin received tax revenue in the new GST model the state in which goods and services are
consumed is the state that will receive the revenue. This study focuses on the Introduction of the
sector as well as the company. Firstly it is describing about manufacturing sector, secondly about
the Company (Atma Autotech Engineers Pvt. Ltd.) and about the GST regime which includes the
types, features etc. Also its describes about the Elements Of GST and it includes Taxable events,
liability, Input Tax Credit, Indirect Tax Regime and includes the types of indirect tax. This study
is also contains the comparison between indirect tax regime and GST regime. In the end its
describes the technical analysis of GST and its interpretation, benefits, limitations of GST regime
and Impact of GST on manufacturing Sector. A Goods and Services Tax Council (GSTC) shall
be constituted comprising the Union Finance Minister, the Minister of State (Revenue) and the
State Finance Ministers to recommend on the GST rate, exemption and thresholds, taxes to be
subsumed and other features.
8|Page
CHAPTER-I
INTRODUCTION
9|Page
1.1 INDUSTRY OVERVIEW
PLASTIC INDUSTRY
The plastics industry manufactures polymer materials - commonly called plastics and offers
services in plastics important to a range of industries, including packaging, building and
construction, electronics, aerospace, and transportation. It is part of the chemical industry. In
addition, as mineral oil is the major constituent of plastics, it is regarded a part of the
petrochemical industry.
Besides plastics production, plastics engineering is an important part of the industrial sector. The
latter field is dominated by engineering plastic as raw material because of its better mechanical
and thermal properties than the more widely used commodity plastics
Plastics production grows globally. The numbers include thermoplastics and polyurethanes, as
well as thermosets, adhesives, coatings and sealants and PP-fibers.
World plastic production in megatons are described as follows:-
TABLE 1:- PLASTIC PRODUCTION IN MEGATONNES
YEAR MEGATONNES
2002 204
2007 250
2009 257
2011 279
2012 288
2013 299
2015 330
2017 350(APPROAX)
SOURCE: - Wikipedia
10 | P a g e
MACHINE INDUSTRY
The machine industry or machinery industry is a subsector of the industry that produces and
maintains machines for consumers, the industry, and most other companies in the economy.
This machine industry traditionally belongs to the heavy industry. Nowadays, many smaller
companies in this branch are considered part of the light industry. Most manufacturers in the
machinery industry are called machine factories.
Source: - Wikipedia
The machine industry is a subsector of the industry that produces a range of products from power
tools, different types of machines, and domestic technology to factory equipment etc. On the one
hand the machine industry provides. These means of production are called capital goods, because
a certain amount of capital is invested. Much of those production machines require regular
maintenance, which becomes supplied specialized companies in the machine industry.
On the other end the machinery industry supplies consumer goods, including kitchen appliances,
refrigerators, washers, dryers and a like. Production of radio and television, however, is generally
considered belonging to the electrical equipment industry. The machinery industry itself is a
major customer of the steel industry.
The production of the machinery industry varies widely from single-unit production and series
production to mass production. Single-unit production is about constructing unique products,
which are specified in specific customer requirements. Due to modular design such devices and
machines can often be manufactured in small series, which significantly reduces the costs. From
a certain stage in the production, the specific customer requirements are built in, and the unique
product is created.
11 | P a g e
SPECIAL PURPOSE MACHINE
Special Purpose Machines (SPM) are those Machine which are not available off the Shelf. These
are not covered in Standard Manufacturing Programs. There Fore they have to be Designed &
Tailor Made as Per the Customers Specific Requirements.
They are also called as Bespoke Machines. Always in the Production process there is a Long Felt
need to improve the Quality of Product, Minimize Rejection and Increase the Productivity per
Person, to Cater to the Pressing Circumstances in the globalized world economy.
The answer to this need is use of Special Purpose Machines (SPM) giving very High
Productivity. The theme can be Further Elaborated by doing a Full Scale Automation of the of
the Industrial Process, wherever Possible. The use of Special Purpose Machines (SPM) And
Automation Minimizes Possibility of Human Errors and also Reduces Human Fatigue in
Carrying out Repetitive Operations again And again. It also assures the Quality and
Interchangeability of Parts, by Carrying out the Same Designed Process each time without any
Shortcuts.
The Special Purpose Machines (SPM) And Automatic Machines are designed to Operate
Continuously for 24 hours a day, with Minimum Supervision. The Special Purpose Machines are
Generally Product Specific & they are required to be Designed & Developed for each Specific
Requirement. Sometimes it May be Possible to Cater to the Jobs having Similar Features but
Differing in Dimensions by Using Change Tooling Concept.
These Special Purpose Machines (SPM) are either Cam Operated Machine or they use
Hydraulics & Pneumatics as Actuating Elements or Combination of all the three of them. Many
times a Dedicated Programmable Logic Controller is used in Conjunction with Positional
Sensors & Transducers, to give Commands to the Actuating Elements some Times Different
Special Motors like Stepper Motor & Servo Motors are used as Actuating Element. The
Productivity Achieved after all these Efforts is very high. Productivity of 3 to 10 times are
Achievable. However to Fetch the Fruits of these Highly Specialized Machines the Pre-
Condition is that the Input to the Automatic Machine must have Strict Quality Control.
Source: - prabodhnirman.com
12 | P a g e
1.2 COMPANY OVERVIEW
ATMA AUTOTECH
We, at ATMA, are proud to have contributed to the progress of Indian Industry by excelling in
the field of manufacturing Automotive Products & SPMs (Special Purpose Machines) within a
short span of time. Our success is attributable to our sincerity and approach towards excellence.
Employing the world's most advanced machines and using the best practices in our processes, we
work towards attaining perfection with continual improvement in our product, quality and
providing entire satisfaction to our customers with up-gradation of the competence of our
employees and fulfilling our objective to be a world class company recognize by our customers.
Atma Group established in 1998 as a center of excellence to provide design, development and
consulting expertise in the field of engineering services. In April 2008 initially to cater the need
for testing equipment and assembly automation in automotive industry switchgear, medical
industries.
o Start production of plastic molded parts for automat in 2006.

o Atma Autotech (Plastic Division) Engineers Pvt. Ltd. has certified ISO 9001:2000 in
2006.
o AAEPL is currently a 250 member organization spanning over 3 different locations.
o Established Zink Plating Plant (Trivalent Passivation) in Bawal Industrial Area in 2007.
COMPANY INFORMATION
CIN : - U34300DL2005PTC143391
Company Name : - ATMA AUTOTECH ENGINEERS PRIVATE LIMITED
Company Status : - Active
Date of Incorporation : - Dec 7, 2005
RoC : - RoC-Delhi
13 | P a g e
Registration Number : - 143391
Company Category : - Company limited by Shares
Company Sub-Category :- Non-govt Company
Class of Company : - Private
Authorized Capital : - 1, 00, 00,000 (One Crore Indian Rupees)
Paid Up Capital : - 80, 25,600 (Eighty Lakh, Twenty-five Thousand And Six
Hundred Indian Rupees)
Listing Status : - Unlisted
Date of Last Annual General Meeting (AGM) :- Sep 30, 2016
Date of Latest Balance Sheet : - Mar 31, 2016
Website : - http://www.atmaautotech.com
o There are 2 Directors associated with Atma Autotech Engineers Private Limited. They
are
(1) Krishan Kumar Yadav
(2) Asha Yadav
o As per the records of Ministry of Corporate Affairs (MCA), Atma Autotech Engineers
Private Limited's last Annual General Meeting (AGM) was held on Sep 30, 2016, and the
date of latest Balance Sheet is Mar 31, 2016.
GROUP OF COMPANIES
Atma Autotech have 3 types of group of companies in manesar, Gurgaon (Haryana) and have 1
registered office in rohini, Delhi. The group of companies are the different manufacturing unit in
the Gurgaon are:-
1. ATMA AUTOTECH ENGINEERS PVT. LTD. (SPM division)

This division is the first manufacturing unit of Atma and it design special purpose machines for
assembly. This division is located in 270 sec-8 IMT manesar. This manufacturing unit 8800 sq.
ft. facility provided for best quality products.
14 | P a g e
AIM
This division has design, development and manufacturing of special purpose machines for
assembly and testing automation. This division of Atma Autotech has 141 member in the
company working hard to achieve the daily goals.
2. ATMA AUTOTECH ENGINEERS PVT. LTD. (Plastic molding division)

This is 2 division of Atma Autotech Engineers PVT. LTD. And it is the production unit of plastic
parts. This division is located in 108, 128 sec-6, IMT manesar. This manufacturing unit is spread
into 25000 sq. ft. for covering up the huge demand in plastic products.
AIM
This division does production of plastic molded parts for Automotive, Electrical, Health care,
solar and kitchen part industries. This production unit has 100 members in the organization to
achieve its objective.
3. ATMA MACHINOPLAST PRIVATE LIMITED

This unit of Atma does the work in the production of control cable, assembly for clutch and
brake. This unit of Atma also works in manufacturing of special purpose of plastic products. This
unit is mostly working on plastic manufacturing and special purpose work. This unit is located in
97 sec-6, IMT Manesar and spread into 22000 sq. ft. facility to provide better result for the
company.
AIM
This unit is indulge in production of control cable assembly for clutch, brake, window regulator
and plastic parts and also take projects for special purpose machines. This unit has a 50 member
who work hard achieve the daily and monthly goal for the company.
COMPETITION ADVANTAGE
a) We maintain healthy and better Customer Relationship

b) We involve our Customers right from the Initial Stage
c) Our Objective are Clean and Pure
d) Customer Satisfaction is our satisfaction but not on the grounds of compromise on
Quality.
15 | P a g e
AWARDS AND ACHIEVEMENTS
UDHYOD PATRA AWARD

For outstanding progress among self-made industrialist.
Date: 16 April 2010
Location: CGO Complex, New Delhi
PRIDE OF INDIA AWARD

For remarkable contribution in industrial growth
Date: 09 May 2010
Location: Bangalore
FARO
Atma Autotech Carves a Time-efficient Future with FARO
Special Purpose Machines (SPMs) are innovative turnkey solutions that are not readily available
in the market. Also known as Bespoke Machines, these exclusive technologies are tailor made to
suit specific requirements, and they provide improvements in safety, throughput, efficiency, and
quality. Customizing SPMs is a service that requires specialized knowledge and attention to
detail. One such company that supports Indian automotive manufacturers in achieving high
productivity is Atma Autotech Engineers Pvt. Ltd (Atma Autotech).
SIEMENS
Hitting on all cylinders
Solid Edge drives Atma Autotech Engineers strategy of expansion; software enables design
cycle time reduction of 30 percent, with an almost 70 percent reduction in design errors and
rework.
16 | P a g e
COMPANY MISSION, VISION AND VALUES
Corporate culture refers to the beliefs and behaviors that determine how a company's employees
and management interact and handle outside business transactions. Often, corporate culture is
implied, not expressly defined, and develops organically over time from the cumulative traits of
the people the company hires. A company's culture will be reflected in its dress code, business
hours, office setup, employee benefits, turnover, hiring decisions, treatment of clients, client
satisfaction.
MISSION
We aim to expand our horizon into innovation and development of efficient yet economical
solutions for our customers with Rs. 500 Million Turn over in Financial Year2017-18.
VISION
People working together as a lean, global enterprise to make peoples lives better through
mobility leadership.
To produce high-quality, low cost, easy to use products that incorporate high technology for the
individual.
VALUES AND CULTURE

You cant beat having team members who are pleasant and friendly to each other, and are both
good at and love what they are doing. No program, activity or set of rules tops having happy and
fulfilled employees who feel that what they are doing matters.
Even the best culture needs to revisit itself to meet a growing companys team. The most
successful company culture leads to successful business, and that requires an evolving culture
that can grow with it.
17 | P a g e
TYPES OF SOLUTION OFFERED
Fully Automatic lines (Linear & Rotary Index)

Lean assembly cells & Semi-automatic lines.
Test rigs (Performance Test, Functional Test, Leak Test, etc.)
Vision based system
Robotic Welding cell
Robotic Assembly Lines
Double gasket riveting machine
Source: - atmaautotech.com
Laser marketing and inspection machine
18 | P a g e
Burnishing machine
Performance testing machine
19 | P a g e
PROJECTS HANDLED BY ATMA AUTOTECH
TABLE 2:- WORK HANDLED BY ATMA AUTOTECH
TYPES OF PROJECTS WORK HANDLED UNDER PROJECTS
Endurance test Axial & Radial Endurance Test Machine For Rubber
Mount
Gear Shifter
Lever Pulsato
Torque test Internal Ball Joint

Outer Ball Joint
Slip Torque Checking
Electrical/continuity/HV/IR Relay Test & Laser Marking

testing Meter Testing
Switch Testing
Servo pressing machine Pulley & Impeller Pressing Machine for Water Pump
Line
Bearing & Mechanical Seal Pressing for W P Line
Needle Bearing Pressing Machine
Lower Shaft Pressing Machine
Leak testing Dry Leak & Electrical Testing for Fuel Filter
Throttle Body
Exhaust Tank
Air Fuel Cock
Air intake Manifold
End of line tester EOL for Parking Break
EOL for Brake Paddle
EOL for Clutch Paddle
EOL for Drum Brake
Welding and cutting Ultrasonic Welding Machine

Rotary Torch Welding Machine
Wind Shield End Cutting Machine
Panel Sheet Back Rear Cutting Machine
Front Facia Cutting Machine
Segregation
20 | P a g e
Process machine Bending Machine
Bellow Making Machine
Marking and printing Laser Marking & Inspection Machine

for Connecting Rod
Pulley Marking Machine
Telesis Marking Machine
Rack Bar Marking Machine
Tightening application with DC torque Brake Switch Screw Tightening

Machine
Steering Wheel Assembly & Screw
Tightening
Fuel Tank Screw Tightening Machine
Head Stud Tightening Machine
Throttle Injector Screw Tightening
Machine
Thermostat Screw Tightening Machine
HCU Assembly Screw Tightening
Machine
Connector Assembly Screw Tightening
Machine
Gap inspection machine
Testing machine
All projects of ATMA AUTOTECH ENGINEERS PVT. LTD. is handled under the guidance of
respected director Mr. Krishan Kumar Yadav and Mrs. Asha Yadav. So all projects can be
handled very successfully and both are the person with great knowledge and know about to solve
the problem and completed the task very efficiently and effectively. After the testing and
inspection is passed and give to the customer. Special purpose machine (SPM) required time and
money.
21 | P a g e
OUR CLIENTS-PARTNERS
We work with a number of industries ranging from technology, to consumer. Our clients are our
partners and our priority. The list are:-
22 | P a g e
1.3 INTRODUCTION TO GST
OVERVIEW OF GST
GST stands for goods and service tax, GST will be a single destination based tax that will replace
existing taxes, including CENVAT, octroi, Sales tax, and excise duty, etc. unlike the old tax
structure, where the state of origin received tax revenue in the new GST model the state in which
goods and services are consumed is the state that will receive the revenue.
The introduction of Goods and Services Tax (GST) would be a very significant step in the field
of indirect tax reforms in India. By amalgamating a large number of Central and State taxes into
a single tax, it would mitigate cascading or double taxation in a major way and pave the way for
a common national market. From the consumer point of view, the biggest advantage would be in
terms of a reduction in the overall tax burden on goods, which is currently estimated to be around
25%-30%. Introduction of GST would also make Indian products competitive in the domestic
and international markets. Studies show that this would have a boosting impact on economic
growth. Last but not the least, this tax, because of its transparent and self-policing character,
would be easier to administer.
GENESIS
The idea of moving towards the GST was first mooted by the then Union Finance Minister in his
Budget for 2006-07. Initially, it was proposed that GST would be introduced from 1st April,
2010. The Empowered Committee of State Finance Ministers (EC) which had formulated the
design of State VAT was requested to come up with a roadmap and structure for the GST. Joint
Working Groups of officials having representatives of the States as well as the Centre were set
up to examine various aspects of the GST and draw up reports specifically on exemptions and
thresholds, taxation of services and taxation of inter-State supplies. Based on discussions within
and between it and the Central Government, the EC released its First Discussion Paper (FDP) on
GST in November, 2009. This spells out the features of the proposed GST and has formed the
basis for discussion between the Centre and the States so far.
TRIGGER GST AND APPLICABILITY
The SUPPLY of goods and/or services to any person or entity in India.

SUPPLY: -The sale, transfer, exchange, license, rental, lease or disposal of goods and services.
GST will be managed through the GST, GSTN-http://gstn.org/. All taxes will be paid online and
there will be no manual filing of returns. Post generation of challan online, you can pay GST by
one of the following modes-AXIS debit/credit card, AXIS internet banking or cash/cheque at any
AXIS bank branch.
23 | P a g e
TYPE OF GST
CGST: - central goods and services tax, paid on all transactions, collected by the central
government. This process is fully done with help of softwares.
SGST: - state goods and services tax, paid on all transactions within a state, collected by the state
government. This process is fully done online.
IGST: - Integrated goods and services tax, paid on all inter-state transactions, or import of goods
into INDIA, collected by the central government. This process is done online.
GST AND CENTRE-STATE FINANCIAL RELATIONS

Currently, fiscal powers between the Centre and the States are clearly demarcated in the
Constitution with almost no overlap between the respective domains. The Centre has the powers
to levy tax on the manufacture of goods (except alcoholic liquor for human consumption, opium,
narcotics etc.) while the States have the powers to levy tax on sale of goods. In case of inter-State
sales, the Centre has the power to levy a tax (the Central Sales Tax) but, the tax is collected and
retained entirely by the originating States. As for services, it is the Centre alone that is
empowered to levy service tax. Since the States are not empowered to levy any tax on the sale or
purchase of goods in the course of their importation into or exportation from India, the Centre
levies and collects this tax as additional duties of customs, which is in addition to the Basic
Customs Duty. This additional duty of customs (commonly known as CVD and SAD) counter
balances excise duties, sales tax, State VAT and other taxes levied on the like domestic product.
Introduction of GST would require amendments in the Constitution so as to concurrently
empower the Centre and the States to levy and collect the GST.
CONSTITUTION (ONE HUNDRED AND FIRST) AMENDMENT ACT, 2016

To address all these and other issues, the Constitution (122nd Amendment) Bill was introduced
in the 16th Lok Sabha on 19.12.2014. The Bill provides for a levy of GST on supply of all goods
or services except for Alcohol for human consumption. The tax shall be levied as Dual GST
separately but concurrently by the Union (central tax - CGST) and the States (including Union
Territories with legislatures) (State tax - SGST) / Union territories without legislatures (Union
territory tax- UTGST). The Parliament would have exclusive power to levy GST (integrated tax -
IGST) on inter-State trade or commerce (including imports) in goods or services. The Central
Government will have the power to levy excise duty in addition to the GST on tobacco and
tobacco products. The tax on supply of five specified petroleum products namely crude, high
speed diesel, petrol, ATF and natural gas would be levied from a later date on the
recommendation of GST Council.
24 | P a g e
CONSTITUTION AMENDMENT BILL
The Constitution Amendment Bill was passed by the Lok Sabha in May, 2015. The Bill was
referred to the Select Committee of Rajya Sabha on 12.05.2015. The Select Committee had
submitted its Report on the Bill on 22.07.2015. The Bill with certain amendments was finally
passed in the Rajya Sabha and thereafter by Lok Sabha in August, 2016. Further the bill had
been ratified by required number of States and received assent of the President on 8th September,
2016 and has since been enacted as Constitution (101st Amendment) Act, 2016 w.e.f. 16th
September, 2016.
ROLE OF CBEC
CBEC 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 CBEC would need
to prepare, in advance, for meeting the implementation challenges, which are quite formidable.
The number of taxpayers is likely to go up significantly. The existing IT infrastructure of CBEC
would also need to be 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.
GOODS AND SERVICE TAX COUNCIL (GSTC)

A Goods and Services Tax Council (GSTC) shall be constituted comprising the Union Finance
Minister, the Minister of State (Revenue) and the State Finance Ministers to recommend on the
GST rate, exemption and thresholds, taxes to be subsumed and other features. This mechanism
would ensure some degree of harmonization on different aspects of GST between the Centre and
the States as well as across States. One half of the total number of members of GSTC would
form quorum in meetings of GSTC. Decision in GSTC would be taken by a majority of not less
than three-fourth of weighted votes cast. Centre and minimum of 20 States would be required for
majority because Centre would have one-third weightage of the total votes cast and all the States
taken together would have two-third of weightage of the total votes cast.
The GSTC has been notified with effect from 12th September, 2016. GSTC is being assisted by a
Secretariat. Thirteen meetings of the GSTC have been held so far. The following major decisions
have been taken by the GSTC:
(i) The threshold exemption limit would be Rs. 20 lakh. For special category States enumerated
in article 279A of the Constitution, threshold exemption limit has been fixed at Rs. 10 lakh.
(ii) Composition threshold shall be Rs. 50 lakh. Composition scheme shall not be available to
inter-State suppliers, service providers (except restaurant service) and specified category of
manufacturers.
25 | P a g e
(iii) Existing tax incentive schemes of Central or State governments may be continued by
respective government by way of reimbursement through budgetary route. The schemes, in the
present form, would not continue in GST.
(iv) There would be four tax rates namely 5%, 12%, 18% and 28%. Besides, some goods and
services would be under the list of exempt items. Rate for precious metals is yet to be fixed. A
cess over the peak rate of 28% on certain specified luxury and demerit goods would be imposed
for a period of five years to compensate States for any revenue loss on account of
implementation of GST. The Council has asked the Committee of officers to fit various goods
and services in these four slabs keeping in view the present incidence of tax.
(v) The five laws namely CGST Law, UTGST Law, IGST Law, SGST Law and GST
Compensation Law have been recommended.
(vi) In order to ensure single interface, all administrative control over 90% of taxpayers having
turnover below Rs. 1.5 crore would vest with State tax administration and over 10% with the
Central tax administration. Further all administrative control over taxpayers having turnover
above Rs. 1.5 crore shall be divided equally in the ratio of 50% each for the Central and State tax
administration.
(vii) Powers under the IGST Act shall also be cross-empowered on the same basis as under
CGST and SGST Acts with few exceptions.
(viii) Power to collect GST in territorial waters shall be delegated by Central Government to the
States.
(ix) Formula and mechanism for GST Compensation Cess has been finalized.
(x) Four rules on input tax credit, composition levy, transitional provisions and valuation have
been recommended. Further five Rules on registration, invoice, payments, returns and refund,
finalized in September, 2016 and as amended in light of the GST bills introduced in the
Parliament, have also been recommended.
GOODS AND SERVICES TAX NETWORK

Goods and Services Tax Network (GSTN) has been set up by the Government as a private
company under erstwhile Section 25 of the Companies Act, 1956. GSTN would provide three
front end services to the taxpayers namely registration, payment and return. Besides providing
these services to the taxpayers, GSTN would be developing back-end IT modules for 27 States
who have opted for the same. The migration of existing taxpayers has already started from
November, 2016. The Revenue department of both Centre and States are pursuing the presently
registered taxpayers to complete the necessary formalities on the IT system operated by Goods
and Services Tax Network (GSTN) for successful migration. About 70 percent of existing
registrants have already migrated to the GST systems. GSTN has already appointed M/s Infosys
as Managed Service Provider (MSP) at a total project cost of around Rs 1380 crores for a period
of five years.
26 | P a g e
GST SUVIDHA PROVIDERS (GSPS).
GSTN has selected 34 IT, ITES and financial technology companies, to be called GST Suvidha
Providers (GSPs). GSPs would develop applications to be used by taxpayers for interacting with
the GSTN.
SALIENT FEATURES OF GST
The salient features of GST are asunder:-
1. GST would be applicable on supply of goods or services as against the present concept
of tax on the manufacture of goods or on sale of goods or on provision of services.
2. GST would be based on the principle of destination based consumption taxation as

against the present principle of origin based taxation.
3. It would be a dual GST with the Centre and the States simultaneously levying it on a
common base. The GST to be levied by the Centre would be called Central GST (CGST)
and that to be levied by the States [including Union territories with legislature] would be
called State GST (SGST). Union territories without legislature would levy Union territory
GST (UTGST).
4. Import of goods would be treated as inter-State supplies and would be subject to IGST in
addition to the applicable customs duties. Whereas Import of services would be treated as
inter-State supplies and would be subject to IGST.CGST, SGST /UTGST & IGST would
be levied at rates to be mutually agreed upon by the Centre and the States under the aegis
of the GSTC.
5. GST would replace the following taxes currently levied and collected by the Centre:-
a. Central Excise Duty;

b. Duties of Excise (Medicinal and Toilet Preparations);
c. Additional Duties of Excise (Goods of Special Importance);
d. Additional Duties of Excise (Textiles and Textile Products);
e. Additional Duties of Customs (commonly known as CVD);
f. Special Additional Duty of Customs (SAD).
6. State taxes that would be subsumed within the GST are: -
a. State VAT;
b. Central Sales Tax;
c. Purchase Tax;
d. Luxury Tax;
27 | P a g e
e. Entry Tax (All forms);
f. Entertainment Tax (except those levied by the local bodies);
g. Taxes on advertisements;
h. Taxes on lotteries, betting and gambling;
7. GST would apply to all goods and services except Alcohol for human consumption. GST
on five specified petroleum products (Crude, Petrol, Diesel, & Natural gas) would be
applicable from a date to be recommended by the GSTC. Tobacco and tobacco products
would be subject to GST. Taxpayers with an annual turnover of Rs. 20 lakh (Rs. 10 lakh
for special category States as specified in article 279A of the Constitution) would be
exempt from GST. A compounding option (i.e. to pay tax at a flat rate without credits)
would be available to small taxpayers (including to specified category of manufacturers
and service providers) having an annual turnover of up to Rs. 50 lakh. The threshold
exemption and compounding scheme would be optional.
8. Exports would be zero-rated.
9. Credit of CGST paid on inputs may be used only for paying CGST on the output and the
credit of SGST/UTGST paid on inputs may be used only for paying SGST/UTGST. In
other words, the two streams of input tax credit (ITC) cannot be cross utilized, except in
specified circumstances of inter-State supplies for payment of IGST. The credit would be
permitted to be utilized in the following manner:
a. ITC of CGST allowed for payment of CGST & IGST in that order
b. ITC of SGST allowed for payment of SGST &IGST in that order

c. ITC of UTGST allowed for payment of UTGST & IGST in that order
d. ITC of IGST allowed for payment of IGST, CGST & SGST/UTGST in that order
NOTE:-ITC of CGST cannot be used for payment of SGST/UTGST and vice versa.
10. Accounts would be settled periodically between the Centre and the State to ensure that
the credit of SGST used for payment of IGST is transferred by the originating State to the
Centre. Similarly the IGST used for payment of SGST would be transferred by Centre to
the Destination State. Further the SGST portion of IGST collected on B2C supplies
would also be transferred by Centre to the Destination State. The transfer of funds would
be carried out on the basis of information contained in the returns filed by the taxpayers.
11. Input Tax Credit (ITC) to be broad based by making it available in respect of taxes paid
on any supply of goods or services or both used or intended to be used in the course or
furtherance of business.
12. Electronic filing of returns by different class of persons at different cut-off dates.
13. Various modes of payment of tax available to the taxpayer including internet banking,
debit/ credit card and National Electronic Funds Transfer (NEFT) / Real Time Gross
Settlement (RTGS).
28 | P a g e
14. Obligation on certain persons including government departments, local authorities and
government agencies, who are recipients of supply, to deduct tax at the rate of 1% from
the payment made or credited to the supplier where total value of supply, under a
contract, exceeds two lakh and fifty thousand rupees (Rs. 2.5 lac). Refund of tax to be
sought by taxpayer or by any other person who has borne the incidence of tax within two
years from the relevant date.
15. Obligation on electronic commerce operators to collect tax at source, at such rate not
exceeding two per cent. (2%) of net value of taxable supplies, out of payments to
suppliers supplying goods or services through their portals.
16. System of self-assessment of the taxes payable by the registered person.
17. Audit of registered persons to be conducted in order to verify compliance with the
provisions of Act.
18. Limitation period for raising demand is three (3) years from the due date of filing of
annual return or from the date of erroneous refund for raising demand for short-payment
or non-payment of tax or erroneous refund and its adjudication in normal cases.
19. Limitation period for raising demand is five (5) years from the due date of filing of
annual return or from the date of erroneous refund for raising demand for short-payment
or non-payment of tax or erroneous refund and its adjudication in case of fraud,
suppression or willful mis-statement.
20. Arrears of tax to be recovered using various modes including detaining and sale of goods,
movable and immovable property of defaulting taxable person.
21. Officers would have restrictive powers of inspection, search, seizure and arrest.
BENEFITS OF GST
MAKE IN INDIA:-
1. Will help to create a unified common national market for India, giving a boost to foreign
investment and Make in India campaign.
2. Will prevent cascading of taxes as Input Tax Credit will be available across goods and
services at every stage of supply.
3. Harmonization of laws, procedures and rates of tax.
4. It will boost export and manufacturing activity, generate more employment and thus
increase GDP with gainful employment leading to substantive economic growth.
5. Ultimately it will help in poverty eradication by generating more employment and more
financial resources.
6. More efficient neutralization of taxes especially for exports thereby making our products
more competitive in the international market and give boost to Indian Exports.
7. Improve the overall investment climate in the country which will naturally benefit the
development in the states.
29 | P a g e
8. Uniform SGST and IGST rates will reduce the incentive for evasion by eliminating rate
arbitrage between neighboring States and that between intra and inter-State sales.
9. Average tax burden on companies is likely to come down which is expected to reduce
prices and lower prices mean more consumption, which in turn means more production
thereby helping in the growth of the industries . This will create India as a
Manufacturing hub.
EASE OF DOING BUSINESS:-
1. Simpler tax regime with fewer exemptions.

2. Reductions in the multiplicity of taxes that are at present governing our indirect tax
system leading to simplification and uniformity.
3. Reduction in compliance costs - No multiple record keeping for a variety of taxes - so
lesser investment of resources and manpower in maintaining records.
4. Simplified and automated procedures for various processes such as registration, returns,
refunds, tax payments, etc.
5. All interaction to be through the common GSTN portal - so less public interface between
the taxpayer and the tax administration.
6. Will improve environment of compliance as all returns to be filed online, input credits to
be verified online, encouraging more paper trail of transactions.
7. Common procedures for registration of taxpayers, refund of taxes, uniform formats of tax
return, common tax base, common system of classification of goods and services will
lend greater certainty to taxation system.
8. Timelines to be provided for important activities like obtaining registration, refunds, etc.
9. Electronic matching of input tax credits all - across India thus making the process more
transparent and accountable.
BENEFIT TO CONSUMERS:-
1. Final price of goods is expected to be lower due to seamless flow of input tax credit
between the manufacturer, retailer and service supplier.
2. It is expected that a relatively large segment of small retailers will be either exempted
from tax or will suffer very low tax rates under a compounding scheme- purchases from
such entities will cost less for the consumers.
3. Average tax burden on companies is likely to come down which is expected to reduce
prices and lower prices mean more consumption.
30 | P a g e
CHAPTER-II
LITERATURE REVIEW
31 | P a g e
2. REVIEW OF LITERATURE
Jha Diwakar (2017) describe in the article on 1 July 2017. Its been more than a decade now
since we have been listening the buzz about Goods and Services Tax (GST), but now we have
seen implementation of GST turning into reality as the Govt. has launched GST on 01/07/2017.
The GST is a value added tax that will replace all indirect taxes levied on goods and services by
the Government, both Central and States. Amalgamating several central and state taxes into a
single tax would mitigate cascading or double taxation, facilitating a common nation market.
This is the biggest taxation reform since independence that is going to take place in India.
Chaturvedi Ajay (2017) elucidate the benefits of GST in his article. Much awaited Goods and
Services Tax (GST) will finally be a reality tonight that would radically change the way
manufacturer, service provider, trader and eventually the consumer, pay taxes to the exchequer,
both at the state and Central level, through a single levy, subsuming a plethora of indirect taxes
and making India unified market. All the imported goods will be charged Integrated Goods &
Services Tax (IGST) which is equivalent to the Central GST + State GST. This will bring
equality with taxation on local products.
Raj Ravishu (2016) analyze the impact of GST on consumers. The goods and services tax is the
biggest and substantial indirect tax reforms since 1947. The main idea of GST is to replace
existing tax like value added tax, excise duty, service tax and sales tax. The consumer shall also
be equally benefited by availing the goods and services at lower price as the cascading effect will
be eliminated under proposed GST. The revenue of both central government and state
government shall be increased in long run. It is expected to iron out wrinkles of existing indirect
tax system and play a vital role in growth of India. The only hurdle to cross over in
implementation of GST at the earliest is the disagreement of some of the state to do implement it.
The goods and services is aimed at creating a single, unified market that will benefit both
corporate and the economy. Several countries implemented this tax system followed by France,
the first country introducing GST. India is centralized democratic and therefore the GST will be
implemented parallel by the central and state government.
Goyal Nitin (2017) illustrates Payment of GST on Supply of GOODS under Reverse Charge
Mechanism. Prior to introduction of GST, Reverse Charge Mechanism was common for Service
Sector as several of the services were in Reverse Charge. Thus Service Sector is well
comfortable with the Reverse Charge provisions. However the goods sector is in dilemma as
with GST set to be roll-out from the mid-night of 30th June, the manufacturing and trading
sector will face a big change with respect to Payment of GST on Reverse Charge in respect of
Goods.
32 | P a g e
Gupta Rajiv (2017), describes the why Indian bureaucracy is undermining the GST. GST is a
technology driven system. The system is adopted per force because it is not humanly possible to
organize the tax collection efficiently & minimize leakages. However, by increasing the number
of rates within the product in itself they have unnecessarily created scope for adjustments. The
policymakers say that the system is robust but if the system is robust enough then the strength of
the system should have been used to facilitate the users particularly the exporters. The point is
simple that that exports including deemed exports are zero rated. Therefore, the GST on imports
related to the exports should have never been collected in the system. Please see the irony that
you believe in the system for collection, validation & refund of the taxes wherever applicable but
dont believe in it for the purpose of grant & monitoring of exemption.
Jain Surbhi (2017) emphasized the need of audit under GST. He Commissioner or any officer
authorized by him, by way of a general or a specific order, may undertake audit of any registered
person for such period, at such frequency and in such manner as may be prescribed. Audit may
be conducted at the place of business of the registered person or in the office of the
Commissioner or officer authorized by him. A notice will be sent to the registered person at least
15 days prior to the conduct of the audit. The audit shall be completed within a period of 3
months from the date of commencement of the audit. The Commissioner can extend the audit
period for a further period of 6 months with reasons recorded in writing.
Purohit C Mahesh and Purohit Vishnu (July) describes Estimating Revenue Implications of the
Proposed GST. With a view to furthering progress made under the system of VAT in the
country, the Union Finance Minister announced in his budget speech of 2007-08 that the Goods
and Services Tax (GST) would be introduced by 2010. The proposed GST will replace the
existing Cen VAT and service tax levied by the Central Government and the state-VAT levied
by the State Governments. There will be major changes in the structure of all these taxes under
the GST regime. Such change s are essential due to the fact that the existing system of dual-VAT
is fraught with certain weaknesses. First, due to the separate taxation of goods and services there
is the need to split the value of transactions into the value of goods and the value of services for
the purpose of taxation. This leads to greater complexities, and higher administrative and
compliance costs. Second, due to further globalization of the Indian economy, a number of Free
Trade Agreements have been signed in the recent years. This allows duty free or low duty
imports into India. Hence, there is need to have a nationwide simple and transparent system of
taxation to enable the Indian industry to compete not only internationally but also in the domestic
market. To pave the way for the introduction of GST, the Empowered Committee (EC)
appointed a Joint Working Group (JWG) on GST consisting of four Joint Secretaries from the
Central Government and Secretaries/ Principal Secretaries of Finance/Taxation of the States as
its members, and with Advisers to the Union Finance Minister and Member Secretary (EC) as
the Co-conveners. Additional Secretary (Revenue), Ministry of Finance Adviser (Financial
Resources), Planning Commission; Commissioner, Central Board of Excise and Customs
(Service Tax); and Director (Sales Tax), Department of Revenue, Ministry of Finance, were
requested to join the deliberations of the JWG as special invitees.
33 | P a g e
CHAPTER-III
OBJECTIVE OF THE
STUDY
34 | P a g e
3. OBJECTIVE OF THE STUDY
It was a very good opportunity to familiarize myself with the Goods and service tax, introduce
by the government to reduce the burden from the manufacturer, consumer as well as from the
government itself. It is a very good step by the government to introduce this in India for better
future. This study gives me the opportunity to understand the concept of GST and its
implications and how it is different from the prevailing or old tax regime.
PRIMARY OBJECTS OF THE STUDY
1. To study the probable impact of Goods and service tax through case study method.
2. To study the differences between prevailing tax regime and Goods and Service Tax regime.
35 | P a g e
CHAPTER-IV
RESEARCH
METHODOLOGY
36 | P a g e
4. RESEARCH METHODOLOGY
DATA IN THIS STUDY IS DESCRIPTIVE IN NATURE.
SECONDARY DATA
The secondary data is the already existing data from the other sources. This data is cheaper and is
easily available. This type of data is used to save time. The secondary data comprises of
information from internal records of the organization, text books, journals and various literature
available in and outside of the corporation, presentation reports on various topics, standing
orders. This is the data which is already available, published or unpublished and is collected
from the company records and manuals which are maintained by it.
PERIOD OF STUDY
The study was done in the period of May and June.
TOOLS USED
Comparative analysis is done between Indirect tax regime and Goods and Service tax regime
37 | P a g e
CHAPTER-V
MAIN ELEMENTS OF GST
38 | P a g e
5. MAIN ELEMENTS OF GST LAW
TAXABLE EVENT:-
1. Tax on supply of goods or services rather than manufacture / production of goods,
provision of services or sale of goods.
2. Powers to declare certain supplies as supply of goods or of services Schedule II.
3. Powers to declare certain activities/transactions as neither supply of goods nor of services
- Schedule III.
4. On Intra-State supplies of goods or services - CGST & SGST shall be levied by the
Central and State Government respectively, at the rate to be prescribed.
5. Maximum rate ring fenced in law.
6. On Inter -State supplies of goods or services - IGST shall be levied by the Central
Government, at the rate to be prescribed.
7. Maximum rate ring fenced in law.
DETERMINATION OF NATURE OF SUPPLY:

1. Elaborate Rules provided for determining the place of supply
2. Intra-State supply of goods or services - where the location of the supplier and the
place of supply are in the same State
3. Inter-State supply of goods or services - where the location of the supplier and the
place of supply are in different State
LIABILITY TO PAY:
1. Liability to pay tax arises only when the taxable person crosses the exemption
threshold.
2. Provision for levy of tax on fixed rate on aggregate turnover up to a prescribed limit
in a financial year (Composition scheme) without participation in ITC chain.
Source:- customs.gov
39 | P a g e
TIME & VALUE OF SUPPLY:
1. Elaborate principles devised for determining the time of supply of goods or services
with following being crucial determinants with certain exceptions.
:-Date on which supplier issues invoice.
:-Date on which supplier receives the payment, whichever is earlier.
2. Tax is to be paid on Transaction value (TV) of supply generally i.e. the price actually
paid or payable for the supply of goods or services.
INPUT TAX CREDIT (ITC):

1. ITC is available in respect of taxes paid on any supply of goods or services used or
intended to be used in the course or furtherance of business (i.e. for business purposes).
2. Negative list approach for non-allowance of ITC.
3. ITC of tax paid on goods or services used for making taxable supplies by a taxable person
allowed subject to four conditions.
4. Full ITC allowed on capital goods in one go.
5. Proportionate credits allowed in case inputs, inputs services and capital goods are partly
used for business and partly for non-business purposes.
6. Proportionate credits allowed in case inputs, inputs services and capital goods are used
for taxable including zero rated and exempt (including non-taxable) supplies.
7. ITC cannot be availed after filing of return for the month of September of next Financial
Year or filing of Annual Return.
8. ITC available only on provisional basis for a period of two months until payment of tax
and filing of valid return by the supplier.
9. Matching of suppliers and recipients invoice details. ITC to be confirmed only after
matching of such information
Registration.
Source:- legalraasta.com
40 | P a g e
PAN BASED REGISTRATION
1. Required to be obtained for each State from where taxable supplies are being
made.
2. A person having multiple business verticals in a State may obtain separate
registration for each business vertical.
3. Liability to be registered.
4. Every person who is registered or who holds a license under an earlier law.
5. Every person whose turnover in a year exceeds the threshold limit.
6. A person, though not liable to be registered, may take voluntary registration.
7. Certain suppliers liable for registration without threshold..
8. Registration to be given by both Central and State Tax Authorities on a common
e-application.
9. Deemed registration after three common working days from date of application
unless objected to self serviced Amendments except for certain core fields.
10. Provision for surrender of registration and also for suo-moto cancellation by the
tax authorities.
RETURNS FOR GSTN

1. Normal taxpayers, compositions taxpayers, Casual taxpayers, non-resident
taxpayers, TDS Deductions, Input service Distributors (ISDs) to file separate
electronic returns with different cut-off dates
2. Annual return to be filed by 31st December of the following Financial Year
along with a reconciliation statement
3. Short-filed returns not to be treated as a valid return for matching & allowing
ITC and fund transfer between Centre and States
4. GST practitioners scheme to assist taxpayers mainly in filing of returns
Source:- legalraasta.com
41 | P a g e
PAYMENT OF MONEY
1. System of electronic cash ledger and electronic ITC ledger.
2. Tax can be deposited by internet banking, NEFT / RTGS, debit/credit card and
Over the Counter.
3. Date of credit to the Govt. account in the authorized bank is the date of payment
for credit in electronic cash ledger.
4. Payment of Tax is made by way of the debit in the electronic cash or credit
ledger.
5. Cross-utilization of ITC between CGST & IGST, between SGST/UTGST &
IGST allowed.
6. Hierarchy for discharging payments of various tax liabilities.
7. Provision for TDS on certain entities.
8. E-Commerce Operators, facilitating supplies by other suppliers, to collect Tax at
source (TCS), at the time of supply, out of payments to be made to such
suppliers.
Source: - klmanagement.com
ASSESSMENT AND AUDIT:

1. Self assessment of tax.
2. Provisions for assessment of non-filers, unregistered persons & summary
assessments in certain cases.
3. Provision for provisional assessment on request of taxable person to be
finalized in six months.
4. Audit to be conducted at the place of business of the taxable person or at the
office of the tax authorities, after prior intimation to taxable person.
5. Audit to be completed within 3 months, extendable by a further period of 6
months.
42 | P a g e
REFUND OF MONEY BY GOVERMENT
1. Refund claim along with documentary evidence to be filed online without any
physical interface with tax authorities.
2. Provisional sanction of 90% of refund claim on account of zero-rated supplies
within 7 days.
3. Tax refund will be directly credited to the bank account of applicant.
Source:- slideshare.net
POWER OF OFFICERS AND TAXPAYERS RIGHT TO APPEAL:-
1. Officers to have power of search & seizure with inbuilt safeguards.

2. Restricted power to arrest and for prosecution.
3. Elaborate provisions for appeals up to Supreme Court.
43 | P a g e
CHAPTER-VI
CURRENT INDIRECT TAX
REGIME
44 | P a g e
6. CURRENT INDIRECT TAX REGIME IN INDIA
6.1 INDIRECT TAX:-

By definition, indirect taxes are those taxes that are levied on goods or services. They differ from
direct taxes because they are not levied on a person who pays them directly to the government,
they are instead levied on products and are collected by an intermediary, the person selling the
product. The most common examples of indirect tax Indirect tax can be VAT (Value Added
Tax), Taxes on Imported Goods, Sales Tax, etc. These taxes are levied by adding them to the
price of the service or product which tends to push the cost of the product up.
6.2 TYPES OF INDIRECT TAXES:
Sales Tax:
As the name suggests, sales tax is a tax that is levied on the sale of a product. This product can
be something that was produced in India or imported and can even cover services rendered. This
tax is levied on the seller of the product who then transfers it onto the person who buys said
product with the sales tax added to the price of the product. The limitation of this tax is that it
can be levied only ones for a particular product, which means that if the product is sold a second
time, sales tax cannot be applied to it.
Service Tax:
Like sales tax is added to the price of goods sold in India, so is service tax added to services
provided in India. In the reading of the budget 2015, it was announced that the service tax will be
raised from 12.36% to 14%. It is not applicable on goods but on companies that provide services
and is collected every month or once every quarter based on how the services are provided. If the
establishment is an individual service provider then the service tax is paid only once the
customer pays the bills however, for companies the service tax is payable the moment the
invoice is raised, irrespective of the customer paying the bill.
Value Added Tax:-

VAT, also known as commercial tax is not applicable on commodities that are zero rated (eg.
food and essential drugs) or those that fall under exports. This tax is levied at all the stages of the
supply chain, right from the manufacturers, dealers and distributors to the end user.
45 | P a g e
The value added tax is a tax that is levied at the discretion of the state government and not all
states implemented it when it was first announced. The tax is levied on various goods sold in the
state and the amount of the tax is decided by the state itself. For example in Gujarat the
government split all the good into various categories called schedules. There are 3 schedules and
each schedule has its own VAT percentage. For Schedule 3 the VAT is 1%, for schedule 2 the
VAT is 5% and so on. Goods that have not been classified into any category have a VAT of
15%.
Custom duty & Octroi:

When you purchase anything that needs to be imported from another country, a charge is applied
on it and that is the customs duty. It applies to all the products that come in via land, sea or air.
Even if you bring in products bought in another country to India, a customs duty can be levied on
it. The purpose of the customs duty is to ensure that all the goods entering the country are taxed
and paid for. Just as customs duty ensures that goods for other countries are taxed, octroi is
meant to ensure that goods crossing state borders within India are taxed appropriately. It is levied
by the state government and functions in much the same way as customs duty does.
Excise Duty:
This is a tax that is levied on all the goods manufactured or produced in India. It is different from
customs duty because it is applicable only on things produced in India and is also known as the
Central Value Added Tax or CENVAT. This tax is collected by the government from the
manufacturer of the goods. It can also be collected from those entities that receive manufactured
goods and employ people to transport the goods from the manufacturer to themselves.
The Central Excise Rule set by the central government provide suggest that every person that
produces or manufactures any 'excisable goods', or who stores such goods in a warehouse, will
have to pay the duty applicable on such goods in. Under this rule no excisable goods, on which
any duty is payable, will be allowed to move without payment of duty from any place, where
they are produced or manufactured.
46 | P a g e
Other Indirect taxes:-
While direct and indirect taxes are the two main types of taxes, there are also these small cess
taxes that are also seen in the country. Although, they arent major revenue generators and are
not considered to be as such, these taxes help the government fund several initiatives that
concentrate on the improving the basic infrastructure and maintain general wellbeing of the
country. The taxes in this category are primarily referred to as a cess, which are taxes levied by
the government and the funds generated through this are used for specific purposes as per the
Finance Ministers discretions.
Professional Tax:
Professional Tax, or employment tax, is another form of tax levied only by state governments in
India. According to professional tax norms, individuals earning income or practicing a profession
such as a doctor, lawyer, chartered accountant, or company secretary etc. are required to pay this
tax. However, not all states levy professional tax and the rate differs across all the states that levy
the tax.
Property Tax - Municipal Tax:

Also known as Property Tax or Real Estate Tax, this is one of the taxes levied by local municipal
bodies of every city. These taxes are levied in order to provide and maintain the for basic civic
services. All owners of residential or commercial properties are subject to Municipal Tax.
Entertainment Tax:
Entertainment Tax is yet another type of tax commonly seen in India. It is levied by the
government on feature films, television series, exhibitions, amusement, and recreational parlors.
This tax is collected taking into account a business entitys gross collection collected from
earnings based on commercial shows, film festival earnings, and audience participation.
Stamp Duty, Registration Fees, Transfer Tax:

Stamp duty, registration fees, and transfer taxes are collect as a supplement of property tax. For
instance, when an individual purchases a property, they also have to pay for the cost of stamps
(stamp duty), registration fees (fee charged by local registrar to legalize a property transaction),
and transfer tax (tax paid to transfer the ownership of a commodity.
47 | P a g e
Education Cess/Surcharge:
Education cess is a tax in India primarily introduced to help cover the cost of government-
sponsored educational programs. This tax is collected independently of other taxes and is
applicable to all Indian citizens, corporations, and other people living in the country.
Source: - quora.com
Gift Tax:
When an individual receives a gift from another person. It is considered to be a part of their
income generated through other sources and the relevant tax is levied. This tax is applicable if
the gift amount is more than Rs. 50,000 in a year.
Wealth Tax:
Wealth Tax was another tax levied by the government, which was charged based on the net
wealth of the assesse. Wealth tax is chargeable with respect to the net wealth of a property. Net
wealth is equal to all the assets an individual owns minus the cost of acquiring them (any loan
taken to acquire them). Wealth tax is no longer operational as it was abolished during the Union
Budget of 2015.
48 | P a g e
Toll Tax & Road Tax:
Toll tax is a tax you often pay to use any form of infrastructure developed by the government,
example roads and bridges. The tax amount levied is rather negligible which is used for
maintenance and basic upkeep of a particular project.
Swachh Bharat Cess:

This is a cess imposed by the government of India and was started from 15 November 2015. This
tax is applicable on all taxable services and the cess currently stands at 0.5%. Swachh Bharat
cess is levied over and above the 14% service tax that is prevalent in the present times. One thing
worth noting here is that this cess is not applicable on services that are fully exempt of service
tax or those services covered under the negative list of services. It is collected by the Consolidate
Fund of India and will be used to funding and promoting any government campaigns concerning
the Swachh Bharat initiatives. This tax, however, is independent of service tax and is charged as
a separate line item in invoices.
Krishi Kalyan Cess:

This is yet another cess brought about by the government of India since the June of 2016. It is
basically introduced in order to extend welfare to all the farmers and to the improvement of
agricultural facilities in the country. Like Swachh Bharat cess, this tax is also applicable on all
taxable services with an effective rate of 0.5% and is charged over and above the service tax and
Swachh Bharat cess.
Source: taxpage.com
49 | P a g e
CHAPTER-VII
COMPARISON BETWEEN
INDIRECT TAX REGIME
AND GST REGIME
50 | P a g e
7.1 DIFFERENCE IN INDIRECT TAX REGIME AND GST REGIME
TABLE 3:- DIFFERENCE BETWEEN TAX REGIMES
ISSUES INDIRECT REGIME GST REGIME
Broad scheme There are separate laws for separate There will be only one such law because GST
levy. For e.g. Central Excise Act, shall subsume various taxes as specified above.
1944, respective State VAT laws.
Tax rates There are separate rates. For e.g. There will be one CGST rate and a uniform rate
Excise 12.36 % and Service Tax of SGST across all states.
14%.
Cascading effect This Problem arises because credit This situation will not arise as CST concept is
of CST and many other taxes not being eliminated with introduction of IGST.
allowed.
Tax burden Under present scenario, tax burden Under this, tax burden is expected to reduce
on tax payer is high. since all taxes are integrated which make it
possible the burden to be split equitably between
manufacturing and services
Cost Burden on Due to presence of cascading effect, As GST mechanism removes such effect by
Consumers certain taxes become part of cost. providing credit, cost burden is reduced.
Concurrent Power At present, there is no such power to Both Centre and State are vested with the power
both Centre and State on same to make law on GST by virtue of proposed
subject tax matter Article 246A of the Constitution
Compliance Tax compliance is complex because Tax compliance would be easier as only one law
of multiplicity of laws and their subsuming other taxes need to be followed
provisions to be followed.
Transparent Tax Presently, tax is levied at two stages GST is to be levied only at final destination of
Administration in broad manner i.e. 1. When consumption and not at various points. This
product moves out of factory. 2. At brings more transparency and corruption free tax
retail outlet. administration.
Source: - gstindia.com
51 | P a g e
7.2 TAX RATES BEFORE AND AFTER GST
Rates for most items and services under the Goods and Services Tax have been finalized in the
two-day meeting of the GST Council that ended on Friday. While the rates on key daily use
items like sugar, tea and hair oil have come down, they have been increased for luxury and sin
products. Eating out in a five-star restaurant will be taxed at the highest bracket.
CONSUMERS GOODS
TABLE 4:- RATES DIFFERENCE FOR CONSUMER GOODS
ITEMS GST RATE EXISTING

RATE
ALUMINUM FOIL 18 18.5
ESSENCE STICK 5 0
PRESERVE VEGETABLES 18 0
BUTTER, GHEE, CHEESE 12 6
DRY FRUITS 12 6
JAMS, JELLIES 12 12
BRANDED PANEER 5 0
BRANDED CEREALS 5 0
COCOA BUTTER, OIL, CHOCOLATES 28 26
INSTANT, AROMA COFFEE 28 26
SALT Exempt 0
PUFFED RICE Exempt 0
SOURCE: - BLOOMBERGQUINT.COM
LIFESTYLE AND HOME

TABLE 5:- RATES DIFFERENCE FOR LIFESTYLE AND HOME

RATE
CELL PHONE 18 6
AIR CONDITONER 28 26
WRIST WATCHES 28 26
SPECTACLE LENS 12 18
PRINTER 18 26
52 | P a g e
BEAUTY AND PERSONAL CARE
TABLE 6:- RATES DIFFERENCE FOR BEAUTY AND PERSONAL CARE
ITEMS GST RATE EXISTING RATE

PERFUME 28 26
SHAMPOO AND HAIR CREAM 28 26
SKIN CARE ITEMS 28 26
KITCHENWARE AND APPLIANCES

TABLE 7:- RATES DIFFERENCE FOR KITCHENWARE AND APPLIANCES

STOVE 28 8.5
ALUMINIUM UTENSILS 12 18.5
LPG( FOR DOMESTIC SUPPLY) 5 17
COPPER UTENSILS 5 18.5
METALS AND MINERALS

TABLE 8:- RATES DIFFERENCE FOR METALS AND MINERALS
PEAT 5 19.5
ORES AND CONCENTRATES 5 18.5
KEROSENE PDS 5 17
TAR 5 12
COAL 5 12
LIGNITE 5 12
53 | P a g e
COPPER BARS, SCREWS, NUTS, BOLTS 18 18.5
ZINC GOODS 18 18.5
TINS BARS AND ROADA 18 18.5

OTHERS
TABLE 9:- RATES DIFFERENCE FOR OTHER GOODS
RUBBER TYRES 28 18.5
STEAM 12 0
PLASTIC PRODUCTS 28 18.5
FOUNTAIN PEN INK OR BALL PEN INK 12 12
PRINTED BOOKS 0 0
HELMETS 18 18.5
AGRICULTURE IMPLEMENTS 0 12.5
TRACTOR 12 18.5
54 | P a g e
SERVICES
TABLE 10:- RATES DIFFERENCE FOR SERVICES

RATE
TELECOM 18 15
WORK CONTRACTS 12 15
NON A.C. ALCOHAL SERVING 12 13-14

RESTAURANT
A.C. ALCOHAL SERVING RESTAURANT 18 22
FIVE STAR RESTAURANTS 28 18
55 | P a g e
CHAPTER-VIII
CASE ANALYSIS
56 | P a g e
8. CASE ANALYSIS
CASE-1 CASE FOR NORMAL GOODS

Q1: A Mother Dairys branch in Mumbai transfers its products to its branch in Nagpur worth
Rs.1000, further from Nagpur it was sold to final customer in Chennai with a profit margin of
Rs.1000. Calculate the total cost of the products under:
1) Prevailing tax regime/Indirect tax.
2) GST regime.
Further compare the cost stating the reason for the difference.
Sol:
TABLE 11:- EXAMPLE FOR NORMAL GOODS
BASIS PRESENT TAX REGIME GST REGIME
PRODUCT
TRANSFER Cost of goods transferred = Rs. 1000 Cost of goods transferred = Rs. 1000
TO
MUMBAI TO + Value Added Tax(@10%) = Rs. 100 + SGST (@6%) = Rs. 60
NAGPUR + CGST (@6%) = Rs. 60
BRANCH Total = Rs.1100
Total = Rs.1120
PRODUCT
SOLD TO Cost of goods sold = Rs. 1100 Cost of goods sold = Rs. 1120
NAGPUR TO
CHENNAI + Profit Margin = Rs. 1000 + Profit Margin = Rs. 1000
Selling price = Rs.2100 Selling Price = Rs.2120

+ Central Sales Tax(@14%) = Rs. 294
+ IGST(@12%) = Rs. 255
Total = Rs. 2394 - Tax credit = Rs. 120
Total= Rs. 2255
SOURCE: - GSTINDIA.COM
57 | P a g e
CASE-2 CASE ON MANUFACTURING A MACHINE
A manufacturer bears the cost of Rs.1, 00,000 on the manufacturing of plastic parts for daily
use. He further sells the blocks to the wholesaler with the profit margin of 10%. Again the goods
were sold by wholesaler to the retailer with the same profit margin i.e.10%. Calculate the invoice
value at each stage with the prevailing tax/indirect tax system and GST system.
Sol:
TABLE 12:- QUESTION OF MANUFACTURING OF MACHINE
PARTICULARS VALUE AND TAX AMOUNT VALUE AND TAX AMOUNT

UNDER CURRENT LAWS UNDER GST LAW.
Value to manufacturer
Production cost 100000 100000
Add Profit Margin @10% 10000 10000
Add excise duty @12% 13200
Total cost of production 123200 110000

Add VAT @12.5% 15400
Add SGST @6% 6600
Add CGST @6% 6600
Invoice value for 138600 123200
manufacturer
Value to wholesaler
Cost of goods 138600 123200
Add profit margin @10% 13860 12320
Total Value 152460 135520
Add VAT @12.5% 19058
Add SGST @6% 8131
Add CGST @6% 8131
Invoice value to wholesaler 171518 151782
Value to Retailer
58 | P a g e
Cost of goods 171518 151782
Add Profit margin @10% 17152 15178
Total Value 188670 166960
Add VAT @12.5% 23584

Add SGST @6% 10018
Add CGST @6% 10018
Invoice value to retailer 212254 186996
SOURCE: - GSTINDIA.COM
CASE 3:- CASE OF PRODUCTION OF PLASTIC PRODUCTS

This case represents the difference between prevailing tax regime and GST regime of plastic
products. One example is taken where plastic products is manufactured.
TABLE 13:- QUESTION OF MANUFACTURING OF MACHINE
DESCRIPTION PREVAILING GST

TAX SYSTEM
SYSTEM
A Price of the plastic per piece (manufacturing cost) 22.55 22.55
B Quantity of plastic manufacturing. 10000 10000
C (A*B) 225500 225500
D Excise duty payable (12.5%) 28188 0
E (C+D) 253688 225500
F Output VAT (4%) 10148 0
59 | P a g e
G (E+F) 263836 225500
H Surcharge for sales tax (5%) 13192 0
I (G+H) 277028 225500
J SGST (14%) 0 31570
K (I+J) 277028 257070
L CGST (14%) 0 31570
M (K+L) 277028 288640
TOTAL PRICE 277028 288640
SOURCE: - SELF
60 | P a g e
CHAPTER-IX
INTERPRETATION,
BENEFITS AND
LIMITATIONS
61 | P a g e
9.1 INTERPRETATIONS
INTERPRETATION FOR CASE-1

This case represents the difference between prevailing tax regime and GST regime for normal
goods where mother dairy where they manufacture the normal goods and transfer from Mumbai
to Nagpur where he further added his profit margin and sell it to the consumer where central
sales tax (CST) is @ 14% so to the total price in prevailing tax system is Rs. 2394 where in case
in GST the price is Rs. 2255.
Total price in the prevailing tax Regime is Rs.2394 whereas in the case of GST the price is
Rs.2255 with the difference of Rs.139 between the two i.e. present tax and GST regime. The
difference in the price is due to the tax credit which is being given in the case of GST as the tax
is only applied on supply of goods and services and not on the purchase.

We are divided the question in the 3 parts and calculate the values and the cost for all the stages
in the supply chain.
STAGE-1
If we check the cost of production of manufacturer we can see the difference of Rs. 13200 and
calculating total invoice price there comes a difference of 15400 in the first stage of the supply
chain.
STAGE-2
If we calculate the difference between the cost and invoice value to the wholesaler its comes out
to be 16940 and 19726 respectively.
STAGE-3
If we calculate the difference between the cost and invoice value to the Retailer its comes out to
be 17710 and 25258 respectively.
With this we can say that supply chain in the above example the customer can save Rs. 25258 on
purchases of goods in the above example, therefore GST is proved to be a better taxation policy
in comparison to the prevailing one. If we compare thee total taxes in this example, the total tax
in the present regime comes out to be Rs. 71692 and in the GST regime its comes out to be Rs.
49498, so customer is saving Rs. 22194.
62 | P a g e
The case is about the tax incurred on the plastic product of Atma Autotech and the total price
which a customer has to pay for the product in both the cases. In the case of manufacturing of
plastic products GST is 28% where as in prevailing regime tax rate is total 21% before it sell to
the consumer.
If we check the example the total tax in the indirect tax regime comes out to be Rs. 51538 i.e.
Excise duty@12.5%, VAT@4% and Sales tax@5% whereas, in the GST total tax comes out to
be Rs. 63140 i.e. 28%. By which we can say that the plastic products will be sold at the much
higher rate than that of the previous rate. In this example GST rate is 28%, and it is divided into
two equal parts i.e. for CGST and SGST. In GST tax amount is equally divide in equal parts to
central and state government.
9.2 BENEFITS
The Goods & Service Tax or GST is one of the biggest fiscal reforms in India since
Independence. All businesses, small or large, will be impacted by this new indirect tax regime.
GST will be levied on both goods and services and will subsume and replace the current indirect
taxes such as excise, VAT, and service tax.
REMOVING CASCADING TAX EFFECT

An important benefit of the introduction of GST will be the removal of the cascading tax effect.
In simple words, cascading tax effect means a tax on tax.
Under the current regime, the service tax paid on input services cannot be set off against output
VAT. Under GST, the input tax credit can be availed smoothly across the spectrum of goods and
services, thus reducing the tax burden on the end user and removing cascading effect. Lets take
the following example to understand how removing the cascading effect will reduce taxes
COMPOSITION SCHEME FOR SMALL BUSINESSES

GST also has an optional scheme of lower taxes for small businesses with turnover between Rs.
20 to 50 lakhs. It is called the composition scheme. It has now been proposed to be increased to
75 lakhs. This will bring respite from tax burdens to many small businesses.
63 | P a g e
SIMPLER ONLINE PROCEDURE UNDER GST
The entire GST process starting from registration to filing returns and payment of GST tax is
online. Startups do not have to run around to tax offices to get various registrations under excise,
VAT, service tax.
INCREASED EFFICIENCY IN LOGISTICS

The logistics industry in India had to maintain multiple warehouses across states to avoid the
current CST and state entry taxes on inter-state movement. Most of the times, these warehouses
were forced to operate below their capacity thus increasing their operating costs.
When GST goes live, these restrictions on inter-state movement of goods will be lessened and
the logistics sector might start consolidating warehouses across the country. As an outcome of
GST, warehouse operators and e-commerce players have already shown interest in setting up
their warehouses at strategic locations such as Nagpur, which is the zero-mile city of India,
instead of every other city on their delivery route.
REDUCED COST OF PRODUCTION
There are many other advantages of new GST administration and one of them is reduced cost of
production that is expected to be spurred by tax reduction. Another advantage of GST
administration is non-accessibility of union or central tax credit over state taxes and vice versa
can be removed. This is going to be done by giving permission to unrestricted tax credit. Even if
there is 2% lower tax rate in GST it will increase the profitability of the Manufacturer by 10%.
9.3 LIMITATIONS OF GST
GST will not be a cost to registered retailers therefore there will be no hidden taxes and the cost
of doing business will be lower. This in turn will help Export being more competitive. In GST
System both Central GST and State GST will be charged on manufacturing cost and will be
collected on point of sale. This will benefit people as prices will come down which in turn will
help companies as consumption will increase. Critics say that GST would impact negatively on
the real estate market. It would add up to 8 percent to the cost of new homes and reduce demand
by about 12 percent.
Critics say that GST would impact negatively on the real estate market. It would add up to 8
percent to the cost of new homes and reduce demand by about 12 percent. Some Economist says
that CGST, SGST and IGST are nothing but new names for Central Excise/Service Tax, VAT
and CST and hence GST brings nothing new for which we should cheer.
64 | P a g e
CHAPTER-X
IMPACT OF GST ON
MANUFACTURING
SECTOR
65 | P a g e
10. IMPACT OF GST ON THE MANUFACTURING SECTOR
Introduction
The manufacturing sector in India is not only plagued with concerns ranging from decline in
exports and infrastructure spending but also with the burden of complying with a complex
indirect taxation system. Multiple indirect tax legislations have led to significant compliance and
administrative costs, classification and valuation disputes and generally impaired the ease of
doing business in this sector. The implementation of goods and services tax (GST) is therefore
critical and necessary to give a boost to an already flagging sector.
In this update, we analyze the key impact of the model goods and services tax law (Model GST
Law) and the likely issues relevant to the manufacturing sector. This is our second update in the
series of updates regarding the impact of GST on key sectors of the Indian economy. Our first
update on the impact of GST in the e-commerce sector can be accessed from here.
State incentives
Companies have set up units with significant investment outlays based on incentives offered by
States under their respective investment promotion policies. These incentives are usually in the
form of tariff incentives (lower tax rates, refund /deferment of taxes etc.) and non-tariff
incentives (economical land lease terms, lower electricity duty etc.). At present, States have the
flexibility to offer such incentives. However, under the GST regime, such flexibility given to the
States is likely to be curtailed to achieve the intended effect of uniformity. Further, the Model
GST Law does not clarify the fate of current incentives. Companies which have based their
financial projections around these fiscal incentives may have to reassess their projections.
The implementation of GST will also signal a move away from the producer State tax system to
a consumption State tax system. Producer States will have a lower financial incentive to offer
such concessions, as GST will only be credited to the State where the supplies are consumed, as
opposed to the present situation where the Producer State is credited with central sales tax on
inter-state sales. This would lead to a loss of revenue for the producer States and therefore such
States may not be in a financial position to continue offering such incentives, even though there
may be other compelling reasons such as generation of labor, improvement of infrastructure,
market creation etc. However, it seems likely that future incentives may only be non-tariff based.
Area based incentives

Manufacturing units enjoy exemption of taxes based on their location in specified backward
areas, capital investment etc.
66 | P a g e
There is no clarity under the Model GST Law on the treatment of such area based exemptions.
Given this uncertainty, companies should make a representation to the Government for
appropriate compensation for the unutilized portion of such incentives.
Increased working capital

Impact on working capital may be significant for the manufacturing sector. Under the current
regime, stock transfers are not subject to tax. However, under the GST regime, stock transfers
are deemed to be supplies and are subject to GST.
Though GST paid at this stage would be available as credit, realization of this GST would only
occur when the final supply is concluded. This would likely result in cash flow blockages and
therefore companies would have to rethink their supply chain management strategies to minimize
this impact on their cash flows.
Free supplies
Under the present indirect tax regime free supply of goods are not subject to VAT. The Model
GST Law stipulates that specific transactions without consideration would also be treated as
supplies. Accordingly, free samples may be subject to GST, leading to increase in overall costs.
Discounts
The Model GST Law stipulates that post supply discounts are to be excluded from the
transaction value, provided such discounts are known at or before the time of supply of goods
and are linked to the invoices for such supply. Companies may need to analyze existing post
supply discounts/incentive schemes where the quantum of discount is not known at the supply
stage. Example, secondary market incentive schemes, volume based discounts etc.
MRP valuation
Currently, various pre-packaged products for retail consumption are subject to excise duty not on
the ex-factory transaction value but on a specified percentage of the maximum retail price (MRP)
printed on the package. The MRP based value (which is usually between 30%-35% of the MRP)
is in most cases, much higher than the ex-factory transaction value leading to a higher excise
duty liability than would otherwise be the case.
Reduction of cascading taxes

Under the present indirect tax regime, the manufacturing sector is able to set-off most input taxes
levied in the production value chain. However, Central taxes cannot be set-off against State taxes
and vice versa. This often leads to a situation where manufacturers are unable to set off excess
67 | P a g e
credit of central or state levies. Further, central sales tax paid on inter-state procurements is also
not creditable and are costs for the company.
Another issue faced currently is the cascading of taxes at the post manufacturing stage. Dealers,
retailers etc. are subject to taxes on their input side which are not creditable (service tax on input
services, excise duty on capital goods).
This leads to an increase in the cost of goods, ultimately affecting the competitiveness of Indian
manufactured imports goods.
Reduction of classification disputes

Currently, due to varying rates of excise duty and VAT on different products, as well as several
exemptions provided under excise and VAT legislations, classification disputes are a regular
cause for litigation under both central excise and VAT, especially for the manufacturing sector. It
is expected that the inception of GST which is based on the principles of a simplified rate
structure and minimization of exemptions will significantly reduce disputes regarding
classification of products.
Supply chain restructuring based on economic factors

Current supply and distribution models are structured to optimize indirect tax impact arising at
various levels of value addition. Transition to GST should hopefully result in such decisions
being taken to optimize business efficiency (as opposed to indirect tax efficiency). Example,
currently warehousing choices are often based on arbitrage between VAT rates in different
States/ between applicable VAT and CST rates. With the advent of GST, it is hoped that such
warehousing and logistics decision would be based on economic efficiency such as costs and
locational advantages vis-a-vis key customers.
68 | P a g e
BIBLIOGRAPHY
Websites
http://www.customs.gov.
https://www.legalraasta.com
http://www.klmanagement.com.
https://www.slideshare.net.
https://www.quora.com.
https://www.Bloomberg.com.
http://www.klmanagement.com.
http://taxguru.in.
http://indianexpress.com.
https://en.wikipedia.org.
http://economictimes.indiatimes.com.
http://www.ey.com.
https://www.aces.gov.in.
http://www.cbec.gov.in.
References
Purohit C Mahesh and Purohit Vishnu, (July 1th 2017). Estimating Revenue Implications of the
Proposed GST. Retrieved July 4, 2017, from https://scholar.google.co.in/scholar.
69 | P a g e
ANNEXURE
MY WORK IN ATMA AUTOTECH

My work in Atma Autotech engineers Pvt. Ltd, as separation of excise duty (basic), excise duty
(ad valorem and special duty), CST, VAT, and surcharge if any. Also after the separation this
works should be recorded in the tally and match the invoice with the Performa invoice.
70 | P a g e

Study On GST - Vaibhav Soni

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Study On GST - Vaibhav Soni

Uploaded by

Copyright:

Available Formats

INSTITUTE OF MANAGEMENT STUDIES

INDUSTRY GUIDE: SUBMITTED TO:

Place: Ghaziabad Vaibhav Soni

Date: Registration No: - 016267

Date: Prof. Gaurav Dawar

I am indebted to many people who helped me accomplish this internship successfully.

CHAPTER NO CHAPATER NAME PAGE NO.

1.1 Industry overview 10-12

1.2 Company overview 13-22

1.3 Introduction to the GST 23-30

CHAPTER 2 Literature review 31-33

CHAPTER 3 Objective of the study 34-35

CHAPTER 4 Research methodology 36-37

CHAPTER 5 Main elements of GST 38-43

CHAPTER 6 Current indirect tax regime in INDIA 44

6.1 Indirect tax 45

6.2 Types of indirect tax 45-49

CHAPTER 7 Comparison between current tax regime and GST regime 50

7.1 Difference in current tax regime and GST regime 51

7.2 Tax rates before and after GST 52-55

CHAPTER 8 Case analysis 56-60

CHAPTER 9 Interpretation, benefits and limitations of GST 61

CHAPTER 10 Impact of GST on manufacturing Sector 65-68

FIGURE/TABLE NO. TABLE/ FIGURE NAME PAGE NO.

TABLE 1 Plastic Production In Megatons 10

TABLE 2 Work Handled By Atma Autotech 20-21

TABLE 3 Difference Between Tax Regimes 51

TABLE 4 Rates Difference For Consumer Goods 52

TABLE 5 Rates Difference For Lifestyle And Home 52

TABLE 6 Rates Difference For Beauty And Persona Care 53

TABLE 7 Rates Difference For Kitchenware And Appliances 53

TABLE 8 Rates Difference For Metals And Minerals 53-54

TABLE 9 Rates Difference For Other Goods 54

TABLE 10 Rates Difference For Services 55

TABLE 11 Question For Normal Goods 57

TABLE 12 Question Of Manufacturing Of Machine 58-59

TABLE 13 Question Of Manufacturing Of Plastic Product 59-60

World plastic production in megatons are described as follows:-

TABLE 1:- PLASTIC PRODUCTION IN MEGATONNES

o Start production of plastic molded parts for automat in 2006.

1. ATMA AUTOTECH ENGINEERS PVT. LTD. (SPM division)

2. ATMA AUTOTECH ENGINEERS PVT. LTD. (Plastic molding division)

3. ATMA MACHINOPLAST PRIVATE LIMITED

a) We maintain healthy and better Customer Relationship

UDHYOD PATRA AWARD

PRIDE OF INDIA AWARD

VALUES AND CULTURE

Fully Automatic lines (Linear & Rotary Index)

Laser marketing and inspection machine

Performance testing machine

TYPES OF PROJECTS WORK HANDLED UNDER PROJECTS

Torque test Internal Ball Joint

Electrical/continuity/HV/IR Relay Test & Laser Marking

Welding and cutting Ultrasonic Welding Machine

Marking and printing Laser Marking & Inspection Machine

Tightening application with DC torque Brake Switch Screw Tightening

Gap inspection machine

The SUPPLY of goods and/or services to any person or entity in India.

GST AND CENTRE-STATE FINANCIAL RELATIONS

CONSTITUTION (ONE HUNDRED AND FIRST) AMENDMENT ACT, 2016

GOODS AND SERVICE TAX COUNCIL (GSTC)

GOODS AND SERVICES TAX NETWORK

SALIENT FEATURES OF GST