SUMMER TRAINING REPORT ON

COMPLIANCE OF GOODS & SERVICES TAX (GST)

Undertaken at

“ARUN KUMAR JAIN AND ASSOCIATES”

Submitted in partial fulfillment of the requirements for the

award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

By:-

Lovit Jain

07117701718

Vivekananda School of Business Studies

Vivekananda Institute of Professional studies

Guru Gobind Singh Indraprastha University, Delhi

December - 2020
 CONTENTS

Topic Page No
Certificate 1
Declaration 2
Acknowledgement 3
Executive Summary 4
Chapter I: Introduction 5
Chapter II: Review of Literature 32
Chapter III: Research Methodology 38
a.) Objectives of the study
b.)Research Design
c.) Data Collection
d.)Data Sampling
e.) Statistical tools used

Chapter IV: Data Analysis & Interpretation 49

Chapter V: Findings 64
Chapter VI: Conclusions & Suggestions 65
References/ Bibliography 66
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 DECLARATION

To Whomsoever It May Concern

I L o v i t J a i n , Enrolment No. 0 7 1 1 7 7 0 1 7 1 8 from BBA-V Semester of the Vivekananda

Institute of Professional Studies, Delhi hereby declare that the Summer Training
Report (BBA 311) entitled “Compliance of Goods & Services Tax (GST)” undertaken at Arun Kumar Jain
And Associates is an original work and the same has not been submitted to any other Institute for
the award of any other degree. The suggestions on Summer Training Report as approved by the
faculty were duly incorporated.

Date: Signature of the Student:

Certified that the Summer Training Report submitted in partial fulfillment of Bachelor of
Business Administration (BBA) to be awarded by G.G.S.I.P. University, Delhi by
Lovit Jain , Enrolment No. 07117701718 has been completed under my guidance and is
Satisfactory.

Date: Signature of the Guide:

Name of the Guide:

Designation:

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 ACKNOWLEDGEMENT
At the outset of this report , I would like to express my deep sense of gratitude and warm for all those who
helped me directly or indirectly and whose diligent efforts made this report possible .To start with , I would
like to thank Arun Kumar Jain And Associates and Vivekananda Institute of Professional Studies for
providing me the chance to undertake this internship study and allowing me to explore Deep insights into
the practicality of GST.

I would then like to thank Mr. Paras Jain (Head of the organization) who gave me a chance to be a part of
their organization and undergo my Summer Internship Training. Without his support my work could not
have been realized.

Then I would like to express my profound gratitude towards my Faculty Guides Ms. Ashmeet Kaur & Dr.
Ramanpreet Singh whose excellent teaching has left an undeniable print on my mind leading me to prepare
this project report in a better way and which would not have been possible without her support and active
guidance. Her valuable suggestions, comments, feedback and support throughout the internship helped me
a lot. It has been great to work under her guidance.
The present report has made me learn a lot about the Indirect Taxation specifically about the GST and its
working.

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 EXECUTIVE SUMMARY
I have done my Summer Internship Training at Arun Kumar Jain and Associates.
This organization is a Tax Advocate firm that solves the tax related legal disputes of
its clients and maintain Database of Financial Accounts of its clients. At this
organization I have done Invoicing of Sales ,Purchases, Debit and credit notes ,
Recording Entries in an Accounting ERP Software , Understanding Banking
Statements and its accounting , How to record TDS , E-way Bill , Filing of GST
Returns and all those relating to GST Compliances. My duration of the Internship is
from 18th May’2020 to 11th July’2020 i.e. 55 Days.

My Project Report Title is Compliance of GST. The rationales behind the project
are to find out :-

 How GST is better than previous Tax Regime?

 How GST Compliances are incorporated in Business and the maintenance of
accounts?
 How many Taxpayers are actually aware about various Compliances and
Provisions of GST?
 How many Taxpayers are adhering to GST Laws?
 Is there Any Limitation of GST?

This Project Report Gives an insight of the Ambit of GST, how GST Functions,
Impact of it in day to day business transactions and many other things.

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 CHAPTER I: INTRODUCTION
 1.1 Introduction to the topic

Source: Google

The above image depicts the origin of the word Tax. If we talk about the term tax from a
general perspective it means a Compulsory payment levied by the government on
persons whether individuals, companies or anything specified in order to finance the
government.

It is the tax which ensures a continuous flow of money income in the economy.
Government Collects taxes from people and spends on them (in the form of expenditure
eg. Subsidies, grants, Autonomous investment eg. Welfare schemes, Investment eg.
Construction of Dams and infrastructure facilities) and again the money flows in the hand
of the people. Then people do economic activity and pays taxes and the circular flow
continue. Taxes account a major proportion of government revenues.

If anyone ponder over why they need to pay taxes to government then the logical reason
is that it is the government only which provides sufficient and appropriate resources
(place to carry out activities) and environment (through various laws and regulations for
the interest of the mass) to carry out the economic activities to earn living and earn daily
bread and butter for the survival. Also it is the government only who has to and is
spending that collected amount (of tax) on the people of the country only and not for its
personal benefit or accumulation. So it is the rightful duty of the person who is
generating or adding some value to its income to do the just to the government by
honestly paying the taxes to it. And that’s why the people should possess requisite
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correct knowledge about the various provisions, laws and regulations of taxes that affect
them and they are a part of it somehow because Ignorantia juris non excusat means a
person who is unaware of a law may not escape liability for violating that law merely
because one was unaware of its content.

Now after analyzing the term Tax and its relevance to the people, let’s talk about its
structure and how it levies in the context of India.

Taxes in India are levied by the Central Government and the state governments. Some
minor taxes are also levied by the local authorities such as the Municipality. The
authority to levy a tax is derived from the Constitution of India which allocates the power
to levy various taxes between the Central and the State. An important restriction on this
power is Article 265 of the Constitution which states that "No tax shall be levied or
collected except by the authority of law”. Therefore, each tax levied or collected has to
be backed by an accompanying law, passed either by the Parliament or the State
Legislature. There are broadly 2 types of taxes in India:-

 Direct Taxes
A direct Tax is imposed directly on the taxpayer. It is paid directly to
the government by the person on whom it is imposed. It cannot be
transferred or shifted to another person. For instance, income tax is
direct tax. An individual pays income tax on his income directly to the
government. The burden of it falls flatly on the individual who earns
his taxable income and income tax cannot be shifted to others. Direct
tax is generally progressive in nature i.e. rate of income tax is higher
for taxpayers having higher ability to pay tax. Types of direct taxes
are:-

1). Corporate Tax

i. Minimum Alternative Tax (MAT)
ii. Fringe Benefits Tax (FBT)
iii. Dividend Distribution Tax (DDT)
iv. Securities Transaction Tax (STT)
2). Income Tax

3). Capital Gains Tax

4). Wealth Tax (Now abolished)

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  Indirect Taxes
It is a tax which can be shifted to another person. In the case of
indirect tax, the person who collects tax on sale/supply of a
commodity is just a conduct. Tax incidence is passed on at every stage
till the commodity finally reaches the consumer. In this case it is the
consumer who bears the incidence of commodity tax. Commodity tax
is thus indirect tax. Indirect tax is generally regressive in nature i.e.
persons consuming goods will have to bear equal burden regardless
of their capacity to bear tax.

Goods And Services Tax is the only Indirect Tax currently prevailing in
India after introduction of CGST Act, 2017 which submerges all Pre-
GST regime indirect taxes into one tax i.e. GST.

In this project we will narrow our discussion to the indirect taxation i.e. GST only and
will get in depth insight to it.

1.1.1 History of GST

Synopsis:-

GST Full Form Goods and Services Tax

The Constitution (One Hundred and First Amendment)
Introduced as Act
Act 2016
Constitutional Amendment
Constitution 122nd Amendment Bill, 2014
Bill
Meeting in 1999 between Prime Minister Atal Bihari
Idea of GST first raised
Vajpayee and three former RBI governors namely IG
during
Patel, Bimal Jalan and C Rangarajan.
GST Bill First published in
December 19, 2014
16th Lok Sabha on
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GST Bill - Date Passed in
03 August 2016
Rajya Sabha
Amended GST Bill was
8 August 2016
passed by the Lok Sabha on
GST Bill received assent
from President Pranab 8 September 2016
Mukherjee on
Article Article 368 of the Constitution
First state which ratified the
Assam (on 12 August 2016)
GST bill
GST introduced by Arun Jaitley

Chairman of GST Council Arun Jaitley

Lok Sabha and Rajya Sabha
passed all the four key GST
27 March, 2017
Bills (CGST, SGST, IGST,
UTGST) on
GST came into force across
India (except Jammu & July 1, 2017
Kashmir) on
GST launched in Jammu and
July 8, 2017
Kashmir on

Overview:-

India's biggest tax reform in the 73 years of independence is implementation of GST,

which will help modernize India as Asia's third largest economy. The 17-year-old
dream of GST in India unifies the US $2 trillion economy with 1.3 billion people into a
single market.
Nationwide Goods and Services Tax (GST) has come into effect from 1 July, 2017. This
is the marvelous way for a new Common National Market and replaced several
cascading indirect taxes levied by the central and state governments.

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 World’s first country implemented GST is France (in the year 1954). More than 160
countries have implemented GST system. Framework of GST in India had formed 17
years ago. The first move on GST implementation in India was begun on July 17, 2000,
under Vajpayee Government. In 12 August 2016, Assam became the first state to pass
GST. On September 23, 2016, GST Network was formed, it is an online network
designed to solve the problems and questions of consumers and businessmen.

Journey of GST in India:-

The detailed event according to various timelines for GST implementation in India is
granted below:-

During 1999:

The idea of Goods and Services Tax (GST) in India started during meeting held in 1999
between Prime Minister Atal Bihari Vajpayee and his economic advisory panel, which
included three former RBI governors namely IG Patel, Bimal Jalan and C Rangarajan.

During 2000:

On July 17, 2000, Indian Government under Vajpayee leadership set up the
Empowered Committee (EC) of State Finance Ministers to design a nationwide GST
model.

This committee was headed by Asim Dasgupta (Finance Minister of West Bengal) and
its members are State Finance Ministers of Karnataka, Madhya Pradesh, Maharashtra,
Punjab, Uttar Pradesh, Gujarat, Delhi and Meghalaya. This committee which had
formulated the design of State VAT (Value Added Tax) was requested to come up with
a roadmap and structure for the GST with the following objectives:

 To monitor the implementation of uniform floor rates of sales tax by States and
Union Territories;
 To monitor the phasing out of the sales-tax based incentive schemes;
 To decide milestones and methods of States to switch over to VAT; and
 To monitor reforms in the Central Sales Tax system existing in the country.

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During 2003:

The Vajpayee led government formed a task force to recommend tax reforms. This
task force was under Vijay Kelkar on the implementation of Fiscal Responsibility and
Budget Management (FRBM) Act, 2013.

During 2004:

Vijay Kelkar recommends GST to replace the existing tax regime. Vajpayee headed BJP-
led NDA government fell.

During 2006:

On 28 February, 2006, under Congress-led UPA government, new Finance Minister P

Chidambaram continued work on the same. He proposed 1 April, 2010 as deadline for
GST implementation throughout India.

During 2007:

On May 10, 2007, a Joint Working Group on GST was formed, which submitted its
report to the Empowered Committee (EC) on November 19, 2007.

During 2008:

On April 2008, Empowered Committee (EC) finalized its view on GST, submitted a
report titled “A model and roadmap for Goods and Services Tax (GST) in India”.

During 2009:

The Empowered Committee (EC) released its First Discussion Paper (FDP) on GST in
November, 2009, based on discussions within and between it and the Central
Government.

During 2010:

Finance Minister P Chidambaram had announced that GST will be implemented from
April, 2011.

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During 2011:

In the Lok Sabha, the 115th Constitution Amendment Bill was introduced for the levy
of GST on all goods and services across India.

During 2012:

In 8th November, 2012, a ‘Committee on GST Design’ was constituted, with members
as officials of the Government of India, State Governments and the Empowered
Committee was.

During 2013:

In August 2013, Standing Committee submitted its report on GST. In November 2013,
EC rejected Government’s proposal to include petroleum products under GST regime.

During 2014:

Under the leadership of Narendra Modi, the NDA government was re-elected into
power. The new Finance Minister Arun Jaitley introduced the GST Bill (122th
Constitution Amendment) in the Lok Sabha.

During 2015:

In February 2015, Jaitley set another deadline for GST implementation in India as 1
April 2016.

During 2016:

On August 3, 2016, Rajya Sabha passed the GST. In 12 August 2016, Assam became
the first state to pass GST.

On September 8, 2016, Hon’ble President of India gave his final assent for Constitution
122nd Amendment Bill, 2014. Constitutional 101st Amendment Act came into force
which empowers both the States and Centre to levy this GST.

On September 23, 2016, GST Network was formed, it is an online network designed to
solve the problems and questions of consumers and businessmen.

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 During 2017:

On 16 January, 2017, Jaitley announces 1 July, 2017 as GST rollout deadline.

On 20 March, 2017, Cabinet approved CGST, IGST and UT GST and Compensation bills.

On 27 March, 2017, Lok Sabha and Rajya Sabha pass all the four key GST Bills - Central
GST (CGST), Integrated GST (IGST), State GST (SGST) and Union Territory GST (UTGST).

On 18 May, 2017, the GST Council fits over 1,200 goods in one of the four rates of GST
(5%, 12%, 18%, 24%).

On 19 May, 2017, the GST Council decides on 5, 12, 18 and 28 percent as service tax
slabs.

On 20 May, 2017, GST Council fixed four GST tax rates in India (5%, 12%, 18%, 24%)
for all goods and services.

During Midnight of 30 June, 2017 - GST came into force across India except Jammu &
Kashmir.

During Midnight of 7 July, 2017 - Jammu and Kashmir, the only State missed to adopt
the Goods and Services Tax (GST) on July 1, finally joined the GST regime.

1.1.2 All About GST

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

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 Multi-stage
An item goes through multiple change-of-hands along its supply chain: Starting from
manufacture until the final sale to the consumer.

Let us consider the following stages:

 Purchase of raw materials

 Production or manufacture

 Warehousing of finished goods

 Selling to wholesalers

 Sale of the product to the retailers

 Selling to the end consumers

The Goods and Services Tax is levied on each of these stages making it a multi-stage
tax.

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 Value Addition

A manufacturer who makes biscuits buys flour, sugar and other material. The value of
the inputs increases when the sugar and flour are mixed and baked into biscuits.

The manufacturer then sells these biscuits to the warehousing agent who packs large
quantities of biscuits in cartons and labels it. This is another addition of value to the
biscuits. After this, the warehousing agent sells it to the retailer.

The retailer packages the biscuits in smaller quantities and invests in the marketing of
the biscuits, thus increasing its value. GST is levied on these value additions, i.e. the
monetary value 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 the Goods and Service Tax is levied at the point of consumption, the
entire tax revenue will go to Karnataka and not Maharashtra.

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 Advantages of GST:-

Components:-
There are three taxes applicable under this system: CGST, SGST & IGST.

 CGST: It is the tax collected by the Central Government on an intra-state sale (e.g., a
transaction happening within Maharashtra)

 SGST: It is the tax collected by the state government on an intra-state sale (e.g., a
transaction happening within Maharashtra)

 IGST: It is a tax collected by the Central Government for an inter-state sale (e.g.,
Maharashtra to Tamil Nadu)

In most cases, the tax structure under the new regime will be as follows:

Transaction New Old Regime Revenue

Regime Distribution

Sale within CGST VAT + Central Revenue will be shared

the State + Excise/Service tax equally between the
SGST Centre and the State

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 Sale to IGST Central Sales Tax + There will only be one
another Excise/Service Tax type of tax (central) in
State case of inter-state
sales. The Centre will
then share the IGST
revenue based on the
destination of goods

Exceptions:-
There are certain taxes such as the GST levied for the inter-state purchase at a
concessional rate of 2% by the issue and utilization of ‘Form C’ is still prevalent.

It applies to certain non-GST goods such as:

i.Petroleum crude;

ii.High-speed diesel

iii.Motor spirit (commonly known as petrol);

iv.Natural gas;

v.Aviation turbine fuel; and

vi.Alcoholic liquor for human consumption.

It applies to the following transactions only:

1) Resale
2) Use in manufacturing or processing
3) Use in certain sectors such as the telecommunication network, mining, the generation
or distribution of electricity or any other power sector

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Taxes replaced by GST:-
GST would replace the following taxes which are levied and collected by the Central
Government:

 Central Excise Duty;

 Duties of Excise (Medicinal and Toilet Preparations);

Additional Duties of Excise (Goods of Special Importance);

 Additional Duties of Excise (Textiles and Textile Products);

 Additional Duties of Customs (commonly known as CVD);

 Special Additional Duty of Customs(SAD);

 Service Tax;

 Cesses and surcharges insofar as they relate to supply of goods or services.

State Government taxes that would be subsumed within the GST are:

 State VAT;

 Central Sales Tax;

 Purchase Tax;

 Luxury Tax;

 Entry Tax (All forms);

 Entertainment Tax (except those levied by the local bodies);

 Taxes on advertisements;

 Taxes on lotteries, betting and gambling;

 State cesses and surcharges insofar as they relate to supply of goods or services.

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New Compliances Under GST:-
Apart from online filing of the GST returns, the GST regime has introduced several
new systems along with it.

E-Way Bills

GST introduced a centralized system of waybills by the introduction of “E-way bills”.

This system was launched on 1st April 2018 for inter-state movement of goods and on
15th April 2018 for intra-state movement of goods in a staggered manner.

Under the e-way bill system, manufacturers, traders and transporters can generate e-
way bills for the goods transported from the place of its origin to its destination on a
common portal with ease. Tax authorities are also benefited as this system has
reduced time at check -posts and helps reduce tax evasion.

E-invoicing

Recently, the e-invoicing system has been launched on a trial basis starting from
January 2020 and applicable from October 2020. This system requires large
businesses with an annual aggregate turnover of more than Rs.100 crore to comply
with some requirements.

They must obtain a unique invoice reference number for every business-to-business
invoice by uploading on the GSTN’s portal known as the invoice registration portal.
The portal verifies the correctness and genuineness of the invoice. Thereafter, it
authorizes using the digital signature along with a QR code.

E-invoicing allows interoperability of invoices and helps reduce data entry errors. It is
designed to pass the invoice information directly from the IRP to the GST portal and
the e-way bill portal. It will, therefore, eliminate the requirement for manual data
entry while filing ANX-1/GST returns and for the generation of part-A of the e-way
bills.

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1.1.3 Current Statistics for August 2020

GST Revenue Statistics:-

GST Revenue collection for August, 2020 Rs. 86,449 crore of gross
GST revenue collected in the month of August The gross GST revenue
collected in the month of August, 2020 is Rs. 86,449 crore of which
CGST is Rs. 15,906 crore, SGST is Rs. 21,064 crore, IGST is Rs.
42,264 crore (including Rs. 19,179 crore collected on import of goods)
and Cess is Rs.7,215 crore (including Rs. 673 crore collected on import
of goods). The government has settled Rs. 18,216 crore to CGST and
Rs. 14,650 crore to SGST from IGST as regular settlement. The total
revenue earned by Central Government and the State Governments after
regular settlement in the month of August, 2020 is Rs. 34,122 crore for
CGST and Rs. 35,714 crore for the SGST. The revenues for the month
are 88% of the GST revenues in the same month last year. During the
month, the revenues from import of goods were 77% and the revenues
from domestic transaction (including import of services) were 92% of
the revenues from these sources during the same month last year. It may
also be noted that the taxpayers with turnover less than Rs. 5 crore
continue to enjoy relaxation in filing of returns till September. The chart
shows trends in monthly gross GST revenues during the current year as
compared to last year.

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1.1.4 Various GST Models at Global Level

There are several models of GST, each with its own merit and demerit. A look at some
of the models in circulation:

Australian Model: In Australia GST is a federal tax, collected by the Centre and
distributed to the states. But India is a heterogeneous country and there is no chance
that states will allow the Centre to collect all the taxes while they become just
spending institutions.

Canadian Model: The GST in Canada is dual between the Centre and the states and
has three varieties:

(i) Federal GST and provincial retail sales taxes (PST) administered separately -
followed by the largest majority.
(ii) Joint federal and provincial VATs administered federally (Harmonious Sales Tax -
HST).
(iii) Separate federal and provincial VAT administered provincially (QST) - only for
Quebec as it is like a breakaway province.

The first variety is fundamentally the Canadian model, which is similar (though not
the same) to the existing situation in India.

Kelkar-Shah Model: This model of a unified goods and services tax, is based on a
"grand bargain" to merge Central Excise, Service Tax and State VAT into one common
base. Two different rates of tax are to be levied by the Centre and the states. The
collection will be by the Centre. This is like the HST model in Canada.

Ajay Shah wants the collection from big industries to be done by the Centre while the
states collect it from the smaller industries. They want the model to be introduced
straightaway.

This exposition does not even take into account the Constitution in the country. The
Constitution allows Central Excise and Service Tax to be collected by the Centre and
the VAT (sales tax) to be collected by the states. If the Constitution does not allow
such an amalgam, how the model can be operative is not indicated in the model.

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 Bagchi-Poddar Model: This model, just like Kelkar-Shah's, envisages a combination of
Central Excise, Service Tax and VAT to make it a common base of goods and services
tax to be levied both by the Centre and the states separately. This means that the
Central Excise Act will be abolished and the goods tax will be only on the sale of
goods. It will merge in it the service tax.

To put this in legal lingo, the “taxable event" for the GST will be the act of sale of
goods and services. The concept of manufacture will simply vanish. The difference
between the Bagchi-Poddar and Kelker-Shah models is that in the former, the
collection is at two levels, by the Centre and the states, while in the latter the
collection is only by the Centre.

The various rationales to study that topic for better understanding are as sighted as
follows:-

1. How GST is better than previous Tax Regime?

2. How GST Compliances are incorporated in Business and the maintenance of accounts?
3. How many Taxpayers are adhering to GST Laws?
4. Is there Any Limitation of GST?

 1.2 Objectives of Study

The Various objectives to be achieved through this project are as follows:-

1. To understand the working of GST in present context which came into effect with the
recent Law i.e. CGST ACT, 2017.
2. To study various provisions under this act and understand the responsibility of the
taxpayer to the government.
3. To understand the various benefits available to the taxpayer.
4. To know the approach of introduction of GST whether it’s more to the benefit for
government or to the general public.
5. To understand the accounting of GST and how to deposit it with government.
6. How much the taxpayer are actual adhering to and paying GST.

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 1.3 Scope and Limitations of study

1. This project studies the Taxation i.e. GST for the individual taxpayer that are
residents of India for taxation purposes.
2. The tax rates are subject to that are prevailing in the Financial Year 2020-
2021 at 39th GST Council meeting which was held on 14 March 2020,
Saturday at New Delhi.
3. The methodology used to collect data is collected without any bias.

The study is conducted in the field of taxation specifically GST and is conducted in
the same period as that of internship in the organization. The data collected by the
following methods:-
1. Primary data
In this the data is collected through structured Questionnaire from various
Respondents, some of them are the clients while others are general business
people/suppliers of goods and services that are not client of my organization
where I am working as an intern. They were given full liberty to fill up the
aforesaid questionnaire.
The questionnaire is prepared on the basis of following types of questions:

 Demographic questions

 Dichotomous questions

 Multiple choice questions

 Likert scale questions

2. Secondary Data
It is collected from various sources like books, websites, restricted and freely
available database of the company and various sources on the internet.

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 1.4 Industry Profile

Now let’s talk about the industry associating with my project. My company, where
I am working as an intern, is a part of Professional services and wherein broadly
speaking Accounting services Industry and the minor part is of Legal advisory
services Industry. Now let’s discuss both these industries.

Overview of Accounting Industry

Accountants and the accounting functions are the backbone of a business. This
department is responsible for the recording, reporting and analyzing financial
transactions within a business or corporation. So it’s imperative that information
be recorded properly and in the correct way. Generally in large businesses this
function is broken out into receivables and payables and has a team of individuals
associated with each.
A company’s accounting process allows business management to see the overall
businesses performance and gauge things such as profit, loss and spending.
Accounting practices generally follow set rules so companies can clearly see how
their money is being processed – what’s coming in as well as what is going out.
Accounting includes items such as recording transactions (debits and credits),
maintaining financial records and keeping track of information for internal audits.
Through the accounting process, businesses can see their profit or loss as well
their assets and liabilities. Due to the structure in how this information is kept,
businesses can create reports and statements that are shared with internal
resources as well as shareholders. Having this information readily available keeps
the business prepared for unexpected events as well as opportunities.
The accounting services market consists of the sales of accounting services and
related goods by entities (organizations, sole traders and partnerships) that
provide recording and analysis of financial transactions and other financial values
pertaining to businesses and other organizations. Accounting services are the
processes of summarizing business transactions and reporting the analysis to
regulators, and government entities.

Market Size/Current Status

o The accountancy market consists of revenues generated by firms engaged in
designing, preparing and auditing accounting records.
o The Indian accountancy market had total revenues of $13.4bn in 2019,
representing a compound annual growth rate (CAGR) of 8.5% between 2015
and 2019.
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 o The advisory segment was the market's most lucrative in 2019, with total
revenues of $6.4bn, equivalent to 47.7% of the market's overall value.
o Strong economic growth in India has led to an ever-expanding business
sector, resulting in a higher demand for accounting services.

Growth in the historic period resulted from globalization, outsourcing back-end

operations to low-cost economies. Factors that negatively affected growth in the
historic period were accounting scandals, regulatory challenges, and unstable
political and social situations.

Going forward, changes in standards of financial reporting, technological

development and regulatory reforms are expected to drive the market. Shortage
of skills could hinder the growth of the accounting services market in the future.

Market Trends
Major trends influencing the accounting services market include:

o Increase in Outsourcing at Accounting Firms

Some accountants are outsourcing basic accounting tasks such as payroll

accounting, accounts payable and accounts receivable to allow their employees to
focus on higher value activities such as becoming vertical experts in their
customer’s markets and analyzing their clients business data. This extra attention
and analysis is transforming the role of a traditional accountant into a business
advisor and takes customer service to the next level by developing strong counsel-
focused relationships. OHI- OutsourcingHubIndia provides outsourced accounting,
finance and other services to accountants and accountancy firms in the India.

o Accounting Services Using New Communication Technologies

Technology is driving collaboration between accountants and clients in the

accounting services market. It is being driven by portals, tools and technology that
promote simple flow of information between accountants and businesses. New
communication technologies are replacing traditional communication platforms
such as email and are speeding up communications and enabling real time
interactions.

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Accounting Services Market Segmentation
The accounting services market is segmented by type of service.
By Type of Service- The accounting services market can be segmented by type of
service:-
a) Bookkeeping, Financial Auditing and Other Accounting Services
b) Payroll Services
c) Tax Preparation Services
The bookkeeping, financial auditing and other accounting services market was the
largest segment of the accounting services market segmented by type of service,
accounting for $424.18 billion or 73.8% of the total in 2019 and is expected to be
the fastest-growing segment going forward at a CAGR of 6.6%.
By Geography– The accounting services market is segmented on the basis of
political and geographical boundaries.

Major Competitors are:

• PWC (PricewaterhouseCoopers)
• Ernst & Young
• KPMG
• Deloitte
• ADP (Automatic Data Processing Inc.)

Overview of Legal Advisory Industry

“legal service means any service provided in relation to advice, consultancy or
assistance in any branch of law, in any manner and includes representational
services before any court, tribunal or authority;”
Advocates are lawyers who are registered in Bar Council of India of any State. They
can represent a client in the court of law, speak on behalf of a client, Plead their
case, etc

Lawyers are law graduates but unlike advocates lawyers are not registered under
Bar Council of India of any state. Lawyers can give legal advice but are not eligible
to stand in court of law on behalf of their clients.

The legal industry is among those industries that highly impact our lives in various
ways. We need legal help in different walks of our lives, be it professional or
personal. If you follow the legal industry closely, you probably know what’s
trending in there and how that’s going to impact the industry as a whole. While

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change is the only constant factor in this cohort, let’s take a quick look at the 5
Trends that will Re-model the Legal Industry Outlook in 2020!

1) The impact of retiring baby boomer generation

With the baby boomer generation retiring in large numbers, legal professionals
can await an increased demand for legal help in areas such as asset management,
will execution, retirement planning, and many others.

2) Avant-Garde technological advancement

Needless to mention, legal procedures are intricate. New technological

advancements like Lexis Advance® India, Lexis Red, and others used for easy and
efficient online legal research are more likely to streamline the complications
related to legal procedures to a great extent.

3) Outsourcing is going to rule the roost

The entire niche of lawyers is in the continuous lookout to make the legal
procedures smooth, efficient, and less complicated. And, one of the most trending
things in this industry is legal process outsourcing. And, why not? It is a cost-
effective medium, after all.

4) Increased demand for paralegal professionals

Paralegal professionals are those professionals who assist lawyers in doing their
work effortlessly and in a better way. There are a number of reasons why people
choose this sector of the legal industry. Some people choose the paralegal
profession to assess if or not they’re the right candidates for the legal field, while
some see it as an impressive way to make money as a part-time professional.
According to the American government, the paralegal industry is likely to offer
higher job growth in the years to come.

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 5) Mergers and Acquisitions

The legalities of businesses are driven by a number of factors. Mergers and

acquisitions are some of those factors that most businesses are engaged in. And
no wonder, mergers and acquisitions need a decent amount of legal assistance
and assistance. So, with the rapid increase in the number of such business
processes, the legal professionals will also see an increased demand.

Overall market trends/Current Status

The Indian legal market stands to grow to a potential $1.3 billion (Rs. 8,400 crore)
by March 2018. Of this market value, around $400 million (just over Rs. 2500
crore) can be attributed to “contentious legal work,” which includes practices of
complex litigation and arbitration.

In terms of billing rates, the hourly rate for a Senior Partner at a top law firm
averages at around $992 (approximately Rs. 64,000). The hourly rate for a Junior
Partner at the same firm would be $612 (approximately 40,000) on average.
However, as per the report, these rates have registered a drop of 8% for Senior
Partners, and a staggering 39% for Junior Partners in the market.

Whether due to increased competition or other market factors, these falling rates
act as a major disincentive for foreign firms to open local offices in India, despite
currently accounting for $600 million (Rs.3800 crore) in the $1.3 billion market.
This is because rates abroad are much higher. For example, the average hourly fee
for a lawyer in the UK stands at $1,200 (Rs.77,000), dwarfing Indian rates. Speaking
of foreign law firms doing business in India, Reena Sengupta, the Chief Executive at
RSG said, “A majority (75%) said that India was less attractive as a destination to
set up shop, even if the market opens, because of the current pressure on fees, “

However, not all areas of legal work are seeing falling rates or competition.
According to Sridhar Gorthi, a Founding Partner at Trilegal, “Certain types of
volume-based work, like standard banking and venture capital deals, have seen
pricing pressure. For more complex work such as restructuring and high-value
litigation, we don’t face fee pressures.”

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 1.5 Company Profile

1.5.1 Basic Details of the Company

Company Name: Arun Kumar Jain And Associates

Registered Address: 122/4-H Plot no.57 Main Shankar Nagar, Krishna Nagar, East
Delhi-110051

Telephone Number: 9871201762 , 8010101762

Email Id: infoarunjainandassociates@gmail.com

I have worked in this company as an intern and its reach is local. The areas of its
operations are limited to Delhi only, which includes its clients from all over Delhi.

1.5.2 Functions of the Company

It’s very imperative that the business records the day to day transactions
ergonomically and systematically. A business has to record and maintain 2 types of
accounting data for the legality purpose to the government.

• Day to day Transactions relating to sales, purchase, banking, etc. (These are
concern with adhering to GST Laws and Provisions).

• Preparing year-end financial reports and statements to calculate net

profit/net loss (These are concerned with adhering to Income Tax Act 1961).

In the above case we are talking about the Individual Taxpayer.

My Company Provides Professional Services to its clients. This Company caters this
demand of its client i.e. proper maintaining database of accounting records of its
client in ERP Accounting Software (belongs to accounting industry). This Includes
Book keeping as well as preparing Financial Statements. Also it Files GST Returns,
ITRs, TDS, Advocacy to its clients in the Legal Tax matters of business (belongs to
Legal Services Industry) and is very suitable only for the small and large individual
taxpayers.

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1.5.3 Company Vision & Mission
Our Vision:-

Arun Kumar Jain And Associates‘s vision is to be regionally recognized as the

accounting firm of choice for providing comprehensive business and tax related
services to individuals and businesses and assist enterprises to tackle complex
situations in the fast changing scenarios of business with the power of rightful
decision making.

We constantly strive for excellence in our professional domain and ensure ‘Quality
is Priority’ as an ultimate aspiration. We build long-lasting relationship with clients
by providing cost efficient, personalized, reliable, value driven and highly
professional services serving the best interests of the clients.

Our Mission:-

The mission is to provide exceptional financial and professional services while

maintaining the highest levels of integrity and professionalism. To meet the
current and future needs of our clients and help them to cultivate long-term
success. To respect our staff and those we serve as professionals and individuals.
To establish trust and loyalty between staff members, partners, and the firm’s
clients. To create a dynamic, open environment that encourages creative thinking,
innovative ideas and challenges staff to meet their optimal levels of success. To be
a Catalyst in the Growth of People and Organization and create a harmonious
balance between work and family life. Our core professional values encompass
Confident Leadership, Quality Service, Professional Ethics and Healthy Client
Relationship.

1.5.4 Service Range of the Company

There are various services provided by the company in relation to Financial, Tax
related matters and other Business related Legal matters.

The Gist of the services rendered, by the company, are as follows. Please note; this
range of services are not Exhaustive but rather Inclusive List. If any taxpayer or
Business People don’t find or can’t relate to the below list of services that they
need, they may contact the company for the desired services as per their
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 requirement. Since as said earlier in the Mission statement the services are highly
customizable along with high Professionalism.

The List includes:-

1) Income Tax
2) Business Taxation
3) Accounting Services
4) Service Tax
5) GST
6) Tax Litigation
7) Insolvency & Bankruptcy
8) Risk Advisory Services
9) Direct Tax Compliances
10) Any Other Business Related Services.

1.5.5 Size of the Organization

Generally there is very much less of Employee turnover in this company and most
of the staff renders services for a considerable period of time. This is the Notable
edge of the company as the staffs are able to maintain rapport and establish a
personal as well as business connection with the clients. Also the company spent a
lot of time in training and making familiar the staffs with the work. So the
company strives its best to hire such qualified professionals and retain them. But
there is employee turnover (not exactly but can be considered) of the CA interns
who are under their Articleship and after completing so leaves the organization as
well as undergraduate interns who are temporary employees for a short time. The
current size of the organization as on 20th August’2020 is 20 staffs and some
interns.

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 1.5.6 Organization Structure of the Company

Owner of the
firm/Authorise
d Signatory

Co- Senior Senior

Assistant Accountant/Ex Accountant/Ex
assistant ecutive ecutive

Accountant Accountant Accountant Accountant

Junior Staff Junior Staff Junior Staff Junior Staff Junior Staff Junior Staff Junior Staff Junior Staff

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 CHAPTER II : REVIEW OF LITERATURE
We already have a discussion on the term “Tax” and its essence. Also we have talked
about the taxation system in context of India and got a brief idea about its levying by
the Central as well as State Government in 1.1 (For reading again click on this). Now in
this chapter we will have a look at the various numbers of research papers and articles
which provide a detailed insight of GST. The findings from the literature are presented
here.

Poirson (2006)

Studied the Indian tax system from the perspective of how effective it is towards
encouraging growth of the economy. The author has compared the Indian tax system
to other countries and concluded that Indian economy is highly indirect tax
dependent, effective tax rates and productivity are lower, and marginal tax rates are
higher. The study has concluded that indirect taxes are a big contributor of total taxes
which can be regressive, effective tax rates are lower and marginal effective tax rates
are high.

Empowered Committee of Finance Ministers (2009)

Introduced their First Discussion Paper on Goods and Services Tax in India which
analyzed the structure and loopholes if any in GST.

Ahmad (2009)

It Discussed the GST specifically in relation to the place of supply rules for services to
be adopted, the method to apply dual GST. The author has discussed the options to
introduce the dual GST in India which could be Concurrent Dual GST, National GST or
State GST. Under the concurrent dual GST the better option was the one where GST is
applied on both goods and services. The other option explored was whether the
Central GST would be on goods and services but state GST would be only on goods.
This option also recommended one single return with both CGST and SGST details and
PAN based registration. Given the difficulties in identifying the state where SGST on
services is payable, one more variant of dual GST was where the center collects SGST
on behalf of states and then apportioning it on some scientific basis. The authors then
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discussed the various rates available to tax, the slab structures, exemptions, etc. The
paper concluded that whilst GST is much awaited all these issues need to be
addressed for it to be effective.

Ehtisham Ahmed and Satya Poddar (2009)

Studied “Goods and Service Tax Reforms and Intergovernmental Consideration in

India” and found that GST introduction will provide simple and transparent tax system
with increase in output and productivity of economy in India. But the benefits of GST
are critically dependent on rational design of GST.

NCAER (2009)

Pointed out that the introduction of GST in India would lead to benefits like increase
in efficiency in use of energy, increase in general economic welfare, increase in the
exports, increase in the GDP, increase in the return on capital, optimum returns and
allocation of the factors of production, reduction in general price level, etc. The paper
has stated how indirect taxes have always been a major contributor in the GDP in
India as compared to most countries forming a part of the study. Similarly in India,
indirect taxes form major part of the total taxes collected in the economy. The paper
further states that with the introduction of GST, resources would be used better; the
tax could become environment friendly. Further, the recommended rate for the
comprehensive GST is 6-10 %. It was suggested that there should be fewer taxes,
most indirect taxes should be subsumed within the GST, and there should be very few
exemptions. The paper also studies the impact of the proposed GST on the imports,
tax collections, exports, etc.

Dr. R. Vasanthagopal (2011)

Studied “GST in India: A Big Leap in the Indirect Taxation System” and concluded that
switching to seamless GST from current complicated indirect tax system in India will
be a positive step in booming Indian economy. Success of GST will lead to its
acceptance by more than 130 countries in world and a new preferred form of indirect
tax system in Asia also.

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Seventy Third Report of Standing Committee on Finance (2012-2013) The
Constitution (One Hundred Fifteenth Amendment) Bill, 2011.

Bird (2012)

It summarizes in the article The GST/HST: Creating an integrated Sales Tax in a Federal
Country the impact of GST will be on Canada.

Jana V. M., Sarma& V Bhaskar (2012)

It Studied “The Road Map for implementation of Goods and Service Tax”. He found
that the steps to be undertaken to implement the comprehensive tax system i.e., GST.
The authors have thrown light on the constitutional amendment required for the
implementation of GST in India.

Syed Mohd Ali Taqvi (2013)

It studied the challenges and opportunities of Goods and Service Tax in India. He
explained that GST is only indirect tax that directly affects all sectors and sections of
our country. It is aiming at creating a single, unified market that will benefit both
corporates and economy. He also explained the proposed GST model will be
implemented parallel by the central and state governments as Central GST and State
GST respectively.

Jaiprakash ( 2014)

in his research study mentioned that the GST at the Central and the State level are
expected to give more relief to industry, trade, agriculture and consumers through a
more comprehensive and wider coverage of input tax set-off and service tax set off,
subsuming of several taxes in the GST and phasing out of CST. Responses of industry
and also of trade have been indeed encouraging. Thus GST offers us the best option
to broaden our tax base and we should not miss this opportunities to introduce it
when the circumstances are quite favorable and economy is enjoying steady growth
with only mild inflation.

Nitin Kumar (2014)

It studied “Goods and Service Tax- A Way Forward” and concluded that
implementation of GST in India help in removing economic distortion by current
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indirect tax system and expected to encourage unbiased tax structure which is
indifferent to geographical locations.

Nishitha Guptha (2014)

in her study stated that implementation of GST in the Indian framework will lead to
commercial benefits which were untouched by the VAT system and would essentially
lead to economic development. Hence GST may usher in the possibility of a collective
gain for industry, trade, agriculture and common consumers as well as for the Central
Government and the State Government.

Saravanan Venkadasalam (2014)

It analyzed the post effect of the goods and service tax (GST) on the national growth
on ASEAN States using Least Squares Dummy Variable Model (LSDVM) in his research
paper. He stated that seven of the ten ASEAN nations are already implementing the
GST. He also suggested that the household final consumption expenditure and
general government consumption expenditure are positively significantly related to
the gross domestic product as required and support the economic theories. But the
effect of the post GST differs in countries. Philippines and Thailand show significant
negative relationship with their nation’s development. Meanwhile, Singapore shows a
significant positive relationship.

Agogo Mawuli (2014)

It studied “Goods and Service Tax-An Appraisal” and found that GST is not good for
low-income countries and does not provide broad based growth to poor countries. If
still these countries want to implement GST then the rate of GST should be less than
10% for growth.

Garg (2014)

In the article named Basic Concepts and Features of Good and Services Tax in India
analyzed the impact and GST on Indian Tax scenario and concluded that it will
strengthen out free market economy.

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Shefali Dani (2015)

It has suggested that GST administration is an irresolute endeavor to legitimize

backhanded expense structure. Roughly more than 150 nations have executed GST
idea. The legislature of India must examination the GST administration set up by
different nations and furthermore their aftermaths previously actualizing GST. IT is
the need of hour that, the legislature must make an endeavor to protect the huge
poor populace of India, against the expansion because of execution of GST. GST will
disentangle its current roundabout duty framework and should expel wasteful
aspects made by the current heterogeneous expense framework, just if there is a
reasonable agreement over issues of edge constrain, income rate, and incorporation
of oil based commodities, power, alcohol and land.

Indirect Taxes Committee of Institute of Chartered Accountants of India (ICAI)

(2015)

It submitted a PPT naming Goods and Service Tax (GST) which stated in brief details of
the GST and its positive impact on economy and various stakeholders.

The Institute of Companies Secretaries of India (ICSI) (2015)

It published a Reference on Goods and Service Tax to provide the information on the
concept of GST in details.

Srinivas K. R (2016)

In in his article “Issues and Challenges of GST in India” mentioned that central and
state governments are empowered to levy respective taxes as per the Indian
constitution which is likely to change the complete scenario of present indirect
taxation system. GST will be a compressive indirect tax structure on manufacture,
sales and consumption of goods and services throughout India, to replace the various
indirect taxes levied by the both the governments.

Poonam (2017)

In her study cleared that in the system of indirect taxation GST plays a very important
role. The cascading and double taxation effects can be reduced by combing central
and state taxes. Consumer’s tax burden will approximately reduce to 25% to 30%
36 | P a g e
when GST is introduced and then after Indian manufactured products would become
more and more inexpensive in the domestic and international markets. This type of
taxation system would directly encourage economic growth. GST with its transparent
features will prove easier to administer.

Parkhi

It did an exploratory research in an article Goods and Service Tax in India: the
changing face of economy and stated that implementation of GST is a changing face
of India and the government is well equipped for that which is a symptom of fast
paced economy.

It is undeniable that those countries who are implementing GST always encounter
grows. Nevertheless, the extent of the impact varies depending on the governance,
compliance cost and economic distortion. A positive impact of GST depends on a
neutral and rational design of the GST such a way it is simple, transparent and
significantly enhances involuntary compliance. It must be actual, not presumptive,
prices and compliance control would be exercised through an auditing system.

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 CHAPTER III: RESEARCH METHODOLOGY

3.1 Objectives of the Study

3.1.1 Problem Definition
Before Discussing the Objectives of Research it is imperative to discuss the very
Problem Definition or the Question for which this study is conducted so as to get
a clear cut idea for further Research Process.

How much Compliances do the taxpayer has to follow in GST regime and how
many are actually aware and adhering to the same?

The aforesaid Problem Question is the basis to conduct this research. Various
Studies were conducted (as stated in the Previous chapter i.e. Literature Review)
and among all, that Gap which this research project is trying to fulfill is
Awareness of the various Compliances under GST and Adhering of the same.

3.1.2 Objectives of the study

The various objectives for which this study is conducted as discussed in 1.2 are
as follows:-

1. To understand the working of GST in present context which came into effect with the
recent Law i.e. CGST ACT, 2017.
2. To study various provisions under this act and understand the responsibility of the
taxpayer to the government.
3. To understand the various benefits available to the taxpayer.
4. To know the approach of introduction of GST whether it’s more to the benefit for
government or to the general public.
5. To understand the accounting of GST and how to deposit it with government.
6. How much the taxpayer are actual adhering to and paying GST?

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3.2 Research design
3.2.1 Research
Research in common parlance refers to a Re-search for knowledge. It is also
defined as a scientific and systematic search for pertinent information collection
on a specific topic. In fact it is an art of scientific investigation. Research is not
only concerned top the decision of the fact but also building up to date
knowledge and to discover the new facts involved through the process of
dynamic change in the society.

3.2.2 Methodology
Methodology is the systematic, theoretical analysis of the methods applied to a
field of study. It comprises the theoretical analysis of the body of methods and
principles associated with a branch of knowledge. Typically, it encompasses
concepts such as paradigm, theoretical model, phases and quantitative or
qualitative techniques.

A methodology does not set out to provide solutions - it is, therefore, not the
same thing as a method. Instead, it offers the theoretical underpinning for
understanding which method, set of methods or so called “best practices” can
be applied to specific case, for example, to reach to the possible end result.

3.2.3 Research Methodology

Research Methodology is the process used to collect the data and others types
of information for use in making business decisions. Examples of these types of
methodology include interviews, surveys and research of publications. All of
these types include the use of present and Historical information.

It simply refers to the practical “how” of any given piece of research. More
specifically, it’s about how a researcher systematically designs a study to ensure
valid and reliable results that address the research aims and objectives.

For example, how did the researcher go about deciding:-

 What data to collect (and what data to ignore)

 Who to collect it from (in research, this is called “sampling design”)

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  How to collect it (this is called “data collection methods”)
 How to analyze it (this is called “data analysis methods”)

3.2.4 Research Design

Research Design is the conceptual structure within which research would be
conducted. The Preparation of such a design facilitates research to be as
efficient as possible yielding maximal information. In other words, the function
of Research Design is to provide for the collection of relevant evidence with
optimum effort, time and expenditure.

These are categorized broadly into two categories exploratory research design
and conclusive research design. Conclusive research design is further divided
into descriptive and causal/ experimental research design. The suitability of a
research design for a specific research depends on nature of the problem,
method of data collection and analysis.

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  Exploratory research design is when the researcher is seeking insights
into the general nature of the problem and possible decision alternatives for
which he uses highly flexible, unstructured, and qualitative methods.
Exploratory research design is characterized by flexibility to gain insights
and develop hypotheses. It does not follow a planned questionnaire or
sampling. It is based on literature survey, experimental survey, and
analysis of selected cases. Unstructured interviews are used to offer
respondents a great deal of freedom. No research project is purely and
solely based on this design. It is used as complementary design to
descriptive design and causal design.
 Descriptive research design is typically concerned with describing
problem and its solution. It is more specific and purposive study. Before
rigorous attempts are made for descriptive study, the well-defined problem
must be on hand. Descriptive study rests on one or more hypotheses.
Descriptive research requires clear specification of who, why, what, when,
where, and how of the research. Descriptive design is directed to answer
these problems
 Causal research design deals with determining cause and effect
relationship. It is typically in form of experiment. In causal research
design, attempt is made to measure impact of manipulation on independent
variables (like price, products, advertising and selling efforts or marketing
strategies in general) on dependent variables (like sales volume, profits,
and brand image and brand loyalty). It has more practical value in
resolving marketing problems. Test marketing is the most suitable
example of experimental marketing in which the independent variable like
price, product, promotional efforts, etc., are manipulated (changed) to
measure its impact on the dependent variables, such as sales, profits, brand
loyalty, competitive strengths product differentiation and so on.

3.2.5 Research Design for this Project Report

The Research Study is Exploratory in nature. The established Objectives are kept
in mind during the study, however no hypothesis is formed as the study was
more in the form of Descriptive Design attempting to analyze the awareness
and the conduct of the respondents to the very Objective of this study.

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3.3 Data Collection
Data collection is defined as the procedure of collecting, measuring and
analyzing accurate insights for research using standard validated techniques. A
researcher can evaluate their hypothesis on the basis of collected data. In most
cases, data collection is the primary and most important step for research,
irrespective of the field of research. The approach of data collection is different
for different fields of study, depending on the required information.

The most critical objective of data collection is ensuring that information-rich

and reliable data is collected for further Analysis so that data-driven decisions
can be made for research.

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Primary Data Collection Methods
Primary data is collected from the first-hand experience and is not used in the
past. The data gathered by primary data collection methods are specific to the
research’s motive and highly accurate. Primary data collection methods can be
divided into two groups: Quantitative and Qualitative:-

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Quantitative data collection methods are based in mathematical calculations in
various formats. Methods of quantitative data collection and analysis include
questionnaires with closed-ended questions, methods of correlation and
regression, mean, mode and median and others. Quantitative methods are
cheaper to apply and they can be applied within shorter duration of time
compared to qualitative methods. Moreover, due to a high level of
standardization of quantitative methods, it is easy to make comparisons of
findings.

Qualitative research methods, on the contrary, do not involve numbers or

mathematical calculations. Qualitative research is closely associated with words,
sounds, feeling, emotions, colors and other elements that are non-quantifiable.
Qualitative studies aim to ensure greater level of depth of understanding and
qualitative data collection methods include interviews, questionnaires with
open-ended questions, focus groups, observation, game or role-playing, case
studies etc.

Your choice between quantitative or qualitative methods of data collection

depends on the Area of your research and the Nature of research aims and
objectives.

Secondary Data
Secondary data is a type of data that has already been published in books,
newspapers, magazines, journals, online portals etc. There is an abundance of
data available in these sources about your research area in business studies,
almost regardless of the nature of the research area. Therefore, application of
appropriate set of criteria to select secondary data to be used in the study plays
an important role in terms of increasing the levels of research validity and
reliability. These criteria include, but not limited to date of publication,
credential of the author, reliability of the source, quality of discussions, depth of
analyses, the extent of contribution of the text to the development of the
research area etc. It is the data that has been used in the past. The researcher
can obtain data from the sources, both internal and external, to the
organization.
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Internal sources of secondary data:

 Organization’s health and safety records

 Mission and vision statements

 Financial Statements

 Magazines

 Sales Report

 CRM Software

 Executive summaries

External sources of secondary data:

 Government reports

 Press releases

 Business journals

 Libraries

 Internet

The secondary data collection methods, too, can involve both quantitative and
qualitative techniques. Secondary data is easily available and hence, less time-
consuming and expensive as compared to the primary data. However, with the
secondary data collection methods, the authenticity of the data gathered
cannot be verified.

Data Collection for this Project Report

After understanding the types of data collection methods and the suitability of
the particular method according to the Research Design and the Research
Objectives, for this Qualitative Primary Method of Physical Questionnaire is
used. The Rationale to choose this method is that first it consist of all the
advantages of primary data collection needed for this Research Study and
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 second is that the Questionnaire is very suitable for this Research Design and to
know the awareness and the Conduct of the Specified respondents.

For this Physical Structured Close-ended Questionnaire (Refer Annexure) is

being used to collect the relevant first hand data.

The Questions used in that are as follows:-

a) Multiple choice questions

b) Likert Scale
c) Demographic Questions
d) Close-ended questions
e) Dichotomous questions
f) Matrix questions

3.4 Data Sampling

Data sampling is a statistical analysis technique used to select, manipulate and
analyze a representative subset of data points to identify patterns and trends in
the larger data set being examined. It enables data scientists, predictive
modelers and other data analysts to work with a small, manageable amount of
data about a statistical population to build and run analytical models more
quickly, while still producing accurate findings.

Population VS Sample
First, you need to understand the difference between a population and a
sample, and identify the target population of your research.

 The population is the entire group that you want to draw conclusions
about.
 The sample is the specific group of individuals that you will collect data
from.
In My Project Report, the Population is Individual Business Taxpayer of GST.

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Sampling frame
The sampling frame is the actual list of individuals that the sample will be drawn
from. Ideally, it should include the entire target population (and nobody who is
not part of that population).

In My Project Report, the Sampling Frame is the Clients of the Organization

where I am working as an intern and many of the Business Taxpayers who are
not a part of my organization and are sole proprietors.

Geographical Location:- Client of my Organization and the Individual Business

Taxpayer of Gandhi Nagar Market Delhi whose Nearest Metro Station is Shastri
Park metro station.

Sample size
The number of individuals in your sample depends on the size of the population,
and on how precisely you want the results to represent the population as a
whole.

In My Project Report, the Sample Size is 120 Respondents (80 of my

Organization and 40 outside my Organization).

Sampling Methods and Use of the

appropriate one in the Study

47 | P a g e
 For My Project Report, the Sampling is done by using Convenience sampling
and Purposive sampling of Non-probability sampling method. The Rationale is
that the Respondent Whether it is of Organization and outside of the
organization are easy accessible to the researcher and also as per the researcher
Judgment Samples have been chosen.

3.5 Statistical tools used

In My Project Report, Percentage Analysis and Averages are used as statistical
tools for the analysis of the discrete Data.

Graphical representation tools such as tables, bar graphs and pie charts have
been used for the data Representation.

48 | P a g e
 Chapter IV: Data Analysis & Interpretation
Data analysis is the process of ordering, categorizing, manipulating, and summarizing
data to obtain answers to research questions. It is usually the first step taken towards
data interpretation.

Data interpretation is the process of reviewing data through some predefined processes
which will help assign some meaning to the data and arrive at a relevant conclusion. It
involves taking the result of data analysis, making inferences on the relations studied,
and using them to conclude.

It is evident that the interpretation of data is very important, and needs to be done
properly. Therefore, researchers have identified some data interpretation methods to
aid this process.

Data interpretation methods are how analysts help people make sense of numerical
data that has been collected, analyzed and presented. Data, when collected in raw form,
may be difficult for the layman to understand, which is why analysts need to break
down the information gathered so that others can make sense of it. For example, when
founders are pitching to potential investors, they must interpret data (e.g. market size,
growth rate, etc.) for better understanding. There are 2 main methods in which this can
be done, namely; Quantitative methods and Qualitative methods.

For this Project Report, Quantitative Method of Data Interpretation is being used. The
Quantitative data is the number of Reponses Filled by the Respondents of the sampling
frame. The following pages of this chapter contain the analysis and the corresponding
interpretation of each of the questions of the Questionnaire (Click to view).

49 | P a g e
Q1.) Gender

Options No. of Responses Responses (%)

Male 110 91.67

Female 10 8.33

Total 120 100

Gender

Male
Female

Interpretation- The data is highly skewed towards male option which has the highest
percentage of 91.67 compared to 8.33% of the respondents who are female. This means
that from the Respondents there is a high majority of Individual business taxpayer who are
males.

50 | P a g e
Q2.) Age Group

Options No. of Responses Responses (%)

19-26 31 25.83

27-40 48 40.00

41-55 33 27.50

Above 55 8 6.67

Total 120 100

Age Group

50

40

30
Age
20 Group

10

0
19-26 27-40 41-55 Above 55

Interpretation- The number of business Taxpayers are Highest from the group of 27-40
Years and the least are from the age group of 56 years or above.

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Q3.) Educational Qualification

Options No. of Responses Responses (%)

Secondary Education 25 20.83

Under Graduate 15 12.50

Graduate 52 43.33

Post Graduate 28 23.33

Total 120 100

Secondary Education
Under Graduate
Graduate
Post Graduate

Interpretation- As it is clearly depicted that the majority of the Business taxpayer are
graduate followed by Post Graduate. Least have qualified up to secondary education.

52 | P a g e
Q4.) Occupation

Options No. of Responses Responses (%)

Student 15 12.5

Business 105 87.5

Total 120 100

No. of Responses

120
100

80
No. of Responses
60
40
20
0
Student Business

Interpretation- As we can see and verify that the student who are pursuing under
graduation are equal in number. Also the majority of the business taxpayer are not
students.

53 | P a g e
Q5.) Registered Under GST

Options No. of Responses Responses (%)

Yes 117 97.5

No 03 2.5

Total 120 100

Registered Under GST

Yes
No

Interpretation- We can see that 97.5% are registered under GST and Paying
Taxes. Only 2.5% are not required or have not registered under GST and hence is out of
the scope of GST.

54 | P a g e
Q6.) Tax Rate

Options No. of Responses Responses (%)

5% 31 25.83

12% 66 55.00

18% 12 10.00

28% 8 6.67

NA 3 2.50

Total 120 100

No. of Responses

5% Tax
12% Tax
18% Tax
28% Tax
NA

Interpretation – Majority of the taxpayer are paying GST @ 12% and the least are
paying @ 28% according to the types of goods.

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Q7.) Impact on the Price of goods/Services

Options No. of Responses Responses (%)

Increase 30 25

Decrease 58 48.33

No impact 32 26.67

Total 120 100

Impact on price

60

50

40

30 No. of Responses

20

10

0
Increase Decrease No impact

Interpretation- Majority of believe that after introduction of GST the price of

their goods or services are decrease followed by who believes that there was no
impact.

56 | P a g e
Q8.) Reason of Price

Options No. of Responses Responses (%)

GST rate 10 8.33

Input tax credit 79 65.84

Overhead
0 0
compliance

None of the above 31 25.83

Total 120 100

Reason of Price
80
70
60
50
40
30
20
10 No. of Responses
0

Interpretation – Many believe that it is the ITC benefit that is responsible for the
change in the price of their goods and services.

57 | P a g e
Q9.) Comparison to VAT

Options No. of Responses Responses (%)

Yes 68 56.67

No 52 43.33

Total 120 100

Compliance compare to VAT

Yes
No

Interpretation- It’s a type of mixed responses and many believe that the
compliances burden are increased as compared to VAT.

58 | P a g e
Q10.) Compliances Impactful

Options No. of Responses Responses (%)

E-Way Bill 120 31.33

E-voicing 113 29.50

Linking with IT 92 24.02

RCM 58 15.15

Total 383 100

Number of Significant compliances

120
100
80
60
No. of Responses
40
20
0
E-Way Bill E-voicing Linking RCM
with IT

Interpretation- majority of them believe that the significant compliance are e-

way and e-voicing under GST that have impacted the most.

59 | P a g e
Q11.) Composition Scheme

Options No. of Responses Responses (%)

Yes 12 10

No 19 15.83

I Don’t Know 89 74.17

Total 120 100

Composition Scheme

I Don’t Know

No
No. of Responses

Yes

0 20 40 60 80 100

Interpretation- Majority of them don’t know the composition scheme as under

GST Regime.

60 | P a g e
Q12.) Penalties of Tax Evasion

Options No. of Responses Responses (%)

Yes 26 21.67

No 94 78.33

Total 120 100

Awareness of Penalities

Yes
No

Interpretation- Majority doesn’t know the Penalty, interest and the Punishment
in terms of imprisonment and recovery proceeding if taxes are not paid honestly.

61 | P a g e
Q13.)Strict

Options No. of Responses Responses (%)

Strongly No 35 29.17

Maybe 47 39.16

Strongly Yes 38 31.67

Total 120 100

Is GST a Strict Law?

50

40

30
No. of Responses
20

10

0
Strongly No Maybe Strongly Yes

Interpretation- Most of them believe that the current tax regime is very strict
which includes strongly yes and may be responses.

62 | P a g e
 Q14.) Satisfaction

Options No. of Responses Satisfaction No. of Responses

A) Input tax
refund
processing
31 Very Satisfied 66
time
B) Filing of GST
Return
23 Satisfied 23

C) E–way bill
and E-voicing 33 Neutral 14

D) GST Official
Website
18 Unsatisfied 10

E) Auto
Population of 15 Very Unsatisfied 07
the Records

Total 120 Total 120

Options Satisfaction

35 70
30 60
25 50
20 40
15 30
10 20
5 10
0 0
A) Input B) Filing C) E–way D) GST E) Auto
tax refund of GST bill and E- Official Population
processing Return voicing Website of the
time Records

Interpretation- As seen Majority are satisfied with the e-way bill system.

63 | P a g e
 Chapter V: Findings
The various findings are Observed:-

1. The major of the respondent are business people who are studing.
2. Majority believe that the introduction of GST Has decrease their price of goods
and services.
3. The major reason for decrease in the price is the introduction of ITC in inters
state.
4. Majority of believe that there is a drastic increase in the burden of the
compliances under the GST.
5. The most notable compliance are E-Way bill and E-voicing.
6. Majority of them don’t know the Composition schemes and Penalties and
punishment for not honestly paying taxes to the government..

64 | P a g e
 Chapter VI: Conclusions & Suggestions
The Conclusion of this Project Report are as follows:-

Although GST is the Recent law introduced but it has definitely overcome the limitation of
the VAT Tax Regime. Although people are adhering to its provisions but are only aware
that is widely recognized. They are lacking the knowledge of its punishment and various
other provisions that might be beneficial to them.

So the conclusion is that people are adhering to the same but is not aware of all its
provision under its ambit.

Suggestions are:-

1. Government should take some steps or set up to make aware the small taxpayer
about its provisions that are a part of GST Department only.
2. Should declutter the regulation and compliances as much as possible.
3. More Public centric approach
4. Should make more relief to the small taxpayer.

Limitations are:-

1. It is restricted to a narrow geographical location.

2. Highly gender skewed as most of the respondents are males only.
3. The sampling method involves some biases and not accurately selected.
4. Have some scope of minimum error in collection of data.

65 | P a g e
 References/ Bibliography
1. Agogo Mawuli (2014): “Goods and Service Tax- An Appraisal” Paper presented at the
PNG Taxation Research and Review Symposium, Holiday Inn, Port Moresby,29-30.

2. Ahmad E. and Poddar S. (2009), “GST Reforms and Intergovernmental

Considerations in India, Asia Research Centre”, Working Paper 26, Pg. 1-43.

3. Dr. R. Vasanthagopal (2011), “GST in India: A Big Leap in the Indirect Taxation
System”, International Journal of Trade, Economics and Finance, Vol. 2, No. 2, April 2011.

4. Ehtisham Ahamad and Satya Poddar (2009), “Goods and Service Tax Reforms and
Intergovernmental Consideration in India”, “Asia Research Center”,LSE-2009.

5. GST India (2015) “Economy and Policy”.

6. Jaiprakash (2014), “Indirect Tax Reform in India and a way ahead for GST”,
International Journal of Computing and Corporate Research, Vol 4, Issue 1.

7. NCAER (2009), “Moving to Goods and Services Tax in India: Impact on India’s growth
andInternational Trade, Final Report, Pg. 1-78.

8. Nishita Gupta (2014), “Goods and Services Tax: Its implementation on Indian
economy”, CASIRJVolume 5, Issue 3, Pg. No.126-133.

9. Nitin Kumar (2014), “Goods and Service Tax in India -A Way Forward”, Global
Journal of Multidisciplinary Studies, Vol 3, Issue6, May 2014.

10. Saravanan Venkadasalam (2014), “Implementation of Goods and Service Tax (GST):
An Analysis on ASEAN States using Least Squares Dummy Variable Model (LSDVM)”,
International Conference on Economics, Education and Humanities (ICEEH'14), Bali
(Indonesia), Pg No. 7-9.

11. Sarma, Jana.V.M and Bhaskar.V, (2012), “A Road Map for Implementation of Goods
and Service Tax”, Economic & Political Weekly.

12. Syed Mohd Ali Taqvi, (2013), “Challenges and Opportunities of Goods and Service
Tax (GST) in India”.

66 | P a g e
13. Madhu Bala (2018, March 21).GST in India: A Critical Review. Paper presented at
GST: Benefits and Impact on Indian Economy Conference, Guru Nanak Girls College,
Yamuna Nagar (Haryana), India.

14. Bird, Richard M. (2012). The GST/HST: Creating an integrated Sales Tax in a Federal
Country. The School of Public Policy, SPP Research Papers, 5(12), 1-38.

15. Empowered Committee of Finance Ministers (2009). First Discussion Paper on

Goods and Services Tax in India, The Empowered Committee of State Finance Ministers,
New Delhi.

16. Garg, Girish (2014). Basic Concepts and Features of Good and Services Tax in India.
International Journal of scientific research and Management, 2(2), 542-549.

17. Indirect Taxes Committee, Institute of Chartered Accountants of India (ICAI) (2015).
Goods and Service Tax (GST). Retrieved from: http://idtc.icai.org/download/Final-PPT-on-
GST-ICAI.pdf.

18. Kumar, Nitin (2014). Goods and Services Tax in India: A Way Forward. Global
Journal of Multidisciplinary Studies, 3(6), 216-225.

19. Parkhi, Shilpa. Goods and Service Tax in India: the changing face of economy.
Retrieved from: http://www.parkhiassociates.org/kb/gstcfe.pdf.

20. Seventy Third Report of Standing Committee on Finance (2012-2013), The

Constitution (One Hundred Fifteenth Amendment) Bill, 2011, pp. 11. Retrieved from:
http://www.prsindia.org/uploads/media/Constitution%20115/GST%20SC%20Report.pd
f.

21. The Institute of Companies Secretaries of India (ICSI) (2015). Referencer on Goods
andService Tax. Retrieved from: https://www.icsi.edu/Docs/Website/GST_Referencer.pdf.

22. Vasanthagopal, Dr. R. (2011). GST in India: A Big Leap in the Indirect Taxation
System. International Journal of Trade, Economics and Finance, 2(2), 144-146.

23. 10. Various Websites:

a. www.wikipedia.com

b. www.google.com

67 | P a g e
24. Khan, M., & Shadab, N., Goods and Services Tax (GST) in India: prospect for states.
Budgetary Research Review, 4(1), 38–64.n.d.

25. Vasanthagopal, R., GST in India: A Big Leap in the Indirect Taxation System.
International Journal of Trade, Economics and Finance, 2(2), 144–147, 2011.

26. The Empowered Committee Of State Finance Ministers (2009), First Discussion
Paper On Goods and Services Tax In India, November 10, 2009.

27. Nakhchian, A., Gorji, N., Shayesteh, T., & Sheibany, E., Value Added Tax and Its
Relationship With Management Information Technology. Interdisciplinary Journal of
Contemporary Research in Business, 4(9), 402–410, 2013.

28. Cnossen, S., Preparing the way for a modern GST in India. International Tax and
Public Finance, 20(4), 715–723, 2013.http://dx.doi.org/10.1007/s10797-013-9281-0.

29. Nishita Gupta, Goods and Services Tax: Its implementation on Indian economy,
CASIRJ Volume 5 Issue 3 [Year - 2014] ISSN 2319 – 9202, Pg. No.126-133.

30. Saravanan Venkadasalam, Implementation of Goods and Service Tax (GST): An

Analysis on ASEAN States using Least Squares Dummy Variable Model
(LSDVM)International Conference on Economics, Education and Humanities (ICEEH'14)
Dec. 10-11, 2014 Bali (Indonesia), Pg No. 7-9.

31. http://www.indiataxes.com/Information/VAT/Introduction.htm

32. http://www.taxmanagementindia.com/wnew/detail_rss_feed.asp?ID=1226

33. https://www.gst.gov.in/

68 | P a g e
 Annexure
Quesstionnaire

1. Gender: ☐ Male ☐ Female

2. Age: ☐ 19-26 ☐ 27-40 ☐ 41-55 ☐ Above 55

3. Educational qualification: ☐Secondary Education ☐ Under graduate ☐ Graduate ☐ Post

graduate

4. Occupation: ☐ Student ☐ Business

5. Are you registered under GST: ☐ Yes ☐ No

6. What is the tax rate for your product/service?

☐ Zero rated ☐ 5% ☐ 12% ☐ 18% ☐ 28%

7. What change, after the introduction of GST in India, has been on the price of your
product/service?
☐ Increase ☐ Decrease ☐ No Impact
8. What is the main reason Do you think that has influence the price?
☐ GST rate ☐ Input tax credit ☐ Overhead compliance ☐ None of the above

9. Do you think that the compliances burden increased compared to VAT Regime?
☐ Yes ☐ No

10. If yes, what are according to you , are the compliances under the GST regime that impacted the
most?(MCQ)
☒ E-Way Bill ☐ E-voicing
☐ Linking with IT ☐ RCM

11. Have you opted for composition scheme?

☐ Yes ☐ No ☐ I don’t know

12. Are you aware of the penalties, interest and recovery proceeding in case of Tax Evasion. ☒ Yes
☐ No

69 | P a g e
13. Do you think that the current tax regime is very strict and?(Likert Scale)
☐ Strongly No ☐ Maybe ☐ Strongly Yes

14. How much you are satisfied with the following:

Very Unsa N Sa Very

unsat tisfie e tis Satisfie
isfied d u fie d
t d
r
a
l
F) Input tax
refund processing
time
G) Filing of
GST Return
H) E–way bill
and E-voicing
I) GST Official
Website
J) Auto
Population of the
Records

70 | P a g e