Vishweshwar Education Society’s

Indira Institute of Business

Management

FUNCTIONAL PROJECT REPORT ON

“A Comparative study of GST return”

Submitted in partial fulfillment for the award of the degree of

MASTER OF MANAGEMENT STUDIES

UNIVERSITY OF MUMBAI

Submitted by

Ms. PRAJAKTA SURESH SHIRKE

ROLL NO. 2022040

2022-24

Under The Guidance of

Prof. Nikhil Shirshat

 DECLARATION

I hereby declare that this project report submitted by me in partial fulfillment of the
requirement for the award of MASTER OF MANAGEMENT STUDIES (MMS)
of the University of Mumbai is a bonafide work undertaken by me and it has not
been submitted to any other University or institution for the award of any other
degree or diploma certificate or published any time before.

Prajakta Suresh Shirke

Roll No.:2022040

Signature of the student

 Vishweshwar Education Society’s
Indira Institute of Business
Management

Certificate

This is to certify that the project entitled ‘A Comparative Study of GST Return’
submitted by Miss Prajakta Suresh Shirke in partial fulfilment for the award of
Master of Management Studies of Mumbai University is her original work and does
not form any part of the projects undertaken previously.

Date:

------------------------------ ---------------------------
DR. /PROF. DR. ASHOK LUHAR
(PROJECT GUIDE) DIRECTOR
 ACKNOWLEDGEMENT
This project has been a great learning experience for me. I take this opportunity to
thank Prof. Nikhil Shirshat, my internal project guide whose valuable guidance &
suggestions made this project possible. I am extremely thankful to him/her for his/her
support.She has encouraged me and channelized my enthusiasm effectively.

I express my heart-felt gratitude towards my parents, siblings and all those friends
who have willingly and with utmost commitment helped me during the course of my
project work.

I also express my profound gratitude to Dr. ASHOK LUHAR, Director of Indira

Institute of Business Management for giving me the opportunity to work on the
projects and broaden my knowledge and experience.

I would like to thank all the professors and the staff of Indira Institute of Business
Management especially the Library staff who were very helpful in providing books
and articles I needed for my project.

Last but not the least, I am thankful to all those who indirectly extended their co-
operation and invaluable support to me.

EXECUTIVE SUMMARY
The project conducts a comparative analysis of GST return filing processes across diverse
jurisdictions. Goods and Services Tax (GST) is a significant indirect tax reform introduced in many
countries to simplify the tax structure and enhance compliance.
One crucial aspect of GST compliance is the filing of returns, which involves reporting business
transactions to the tax authorities periodically. The GST return filing process varies across different
jurisdictions, influenced by factors such as legal frameworks, technological infrastructure, and
administrative policies.
Key findings highlight the impact of these factors on compliance rates, administrative efficiency,
and taxpayer satisfaction. Recommendations include harmonizing procedures, investing in
technology and taxpayer education, and refining enforcement strategies.
This study contributes valuable insights for policymakers, tax authorities, businesses, and
practitioners, facilitating informed decision-making to enhance GST compliance and
administration.
By comparing and contrasting these elements, we uncover insights that can inform policymakers, tax
authorities, businesses, and practitioners about the challenges and best practices associated with GST
compliance.
Our findings underscore the importance of harmonization, technological advancement, taxpayer education,
and tailored enforcement strategies in fostering efficient and effective GST return filing systems. This study
serves as a valuable resource for stakeholders, offering actionable recommendations to improve compliance
rates and streamline administrative procedures in the realm of GST.
 Contents

Chapte Description Page No.

r No.

I INTRODUCTION
 General Introduction to the study
 Statement of the Problem
 Objectives
 Scope of the Study
 Limitations of the Study

II REVIEW OF LITERATURE

III METHODOLOGY
 Data collection Methods
 Tools of questionnaire design
 Sampling Design
 Statistical tools used

IV DATA ANALYSIS (RESULTS OF THE

STUDY)
Tables, Graphs, Charts and inferences

V FINDINGS(DISCUSSION)

VI CONCLUSION

BIBLIOGRAPHY / REFERENCES

APPENDICES
 Chapter 1

INTRODUCTION
1.1General introduction to the study

The title of the project study “A Comparative study of GST return” gives us broad knowledge

about GST and analysis of GST return. The study also helps to know how auditing of various

GST return done in practical world of finance.

The Goods and Services Tax, or GST, is an indirect tax law applicable across India. It has

replaced multiple indirect taxes such as excise duty, service tax, value-added tax, octroi, entry

tax, and luxury tax. Laws pertaining to the same were put into effect on July 01, 2017, in India.

This indirect taxation system has gone through multiple amendments since to arrive at the

current juncture. However, it must be noted that GST does not replace customs duty, which is

still mandatory on imported goods and services. Every kind of product and service attracts a

different tax rate under GST. For example, luxury or sin goods are classified to attract a higher

interest rate, whereas necessities have been included in lower and nil rate slab rates.

Terminologies

 GST - The Goods and Services Tax, or GST, is an indirect tax law applicable across India. It has
replaced multiple indirect taxes such as excise duty, service tax, value-added tax, octroi, entry tax,
and luxury tax.

 Auditing is a part of the accounting world. It is an examination of accounting and financial records
that is undertaken independently.

 CGST, SGST, IGST, UGST

 Comparison of GSTR-3B vs GSTR-2A

  GSTR-3B with GSTR-1

History of Goods and Service Tax

 Back in 2000, the then Prime Minister of India introduced the concept of Goods and Services Tax. He
also formed a committee to draft new indirect tax law.
 It, however, took 17 more years for its implementation. Meanwhile, the bill went through multiple
introductions, amendments and rescheduling.

Year Event

PM Atal Bihari Vajpayee sets up a committee to draft the Goods & Services Tax law
2000 for India.

A task force is put together to figure out the requirements to create and implement
2004 GST with the purpose of improving the indirect tax system.

Goods and Services Tax introduction scheduled on 1st April 2010 by the Finance
2006 Minister of India.

Decision to phase out Central Sales Tax (CST) Consequently, CST rates were reduced
2007
to 3% from 4%.

GST’s dual structure was finalised by the EC for separate legislation and levy.
2008

2010 Postponement of GST introduction due to structural and implementation hurdles. A

project launched for the computerisation of commercial taxes.

Introduction of Constitution Amendment Bill for enabling the Goods and Services
2011
Tax Law.

2012 Discussion regarding the tax initiated by the Standing Committee; stalled due to lack
of clarity regarding Clause 279B.

2013 GST’s report presented by the Standing Committee.

 2014 The Finance Minister of India reintroduces the Goods and Services Tax Bill to
Parliament.

The lok sabha clears the bill , but it is stalled in the Rajya Sabha.
2015

Goods and Services Tax Network (GSTN) went live. The law’s amended model
2016
passed in both Houses of Parliament and received a nod from the President of India.

2017 The Cabinet approves four supplementary bills on GST cleared by the Lok Sabha and
the Rajya Sabha. The Goods and Services Tax Law was implemented on 1st July
2017.

Types of GST Charged in India

1. State Goods & Service Tax

The State Goods and Services Tax is one of the GST types which the government of a particular state

imposes. The state government taxes goods and services within the state (intrastate, for example Mysore),

and the state government is the sole beneficiary of the collected revenue.

 The SGST replaces various state-level taxes such as lottery tax, luxury tax, VAT, purchase tax and

sales tax.

 However, if the transaction of the goods is interstate (outside the state), then both SGST and CGST are

applied. But, if the goods and services are transactions within the state, only SGST is imposed.

 The rate of GST is equally divided among the two types of GSTs. For instance, when the traders sell

their commodities within their state, they must pay SGST and CGST. The

 The SGST of various goods and services depends on the government notification published from time

to time.
 SGST Rates

Commodities SGST

Common Groceries such as Tea, Salt, Spices ,Sugar etc. 2.5%

Processed foods Electronic goods 6%

Capital Goods, toiletries, etc. 9%

Premium luxury commodities 14%

2. Central goods and Services tax (CGST)

The Central goods and Services tax applies to the intrastate (within the state) supply of goods and

services. The central government taxes it. The CGST Act governs this type of GST. Here, the revenue

generated from the CGST is collected along with the SGST and is divided between the central and state

government.

For instance, when a trader makes a transaction within the state, the goods are taxed with SGST and

CGST. The GST rate is divided equally between SGST and CGST, while the revenue collected under the

CGST belongs to the central government.

CGST Rates

Commodities CGST

Common Groceries such as Tea, Salt, Spices, Sugar, Etc. 2.5%

Processed foods Electronic goods 6%

Capital Goods, toiletries, etc. 9%

Premium luxury commodities 14%

3.Integrated Goods and Services tax (IGST)

The Integrated Goods and Services tax is a type of GST, where the tax applies on the interstate supply of

goods and services. This GST type is also imposed on the goods and services that are imported as well as

exported. The IGST Act governs it, and the central government is responsible for the collection of IGST.

The collected IGST is equally divided into central and state government portions. The State portion of the

IGST is provided to the state where the goods and services are received. The remaining IGST received

goes to the central government.

For instance, when the trader makes a supply between two states, the type of tax in this case would be

IGST.

IGST Rates

Commodities IGST
Common Groceries such as Tea, Salt, Spices, Sugar, Etc. 5%

Processed foods Electronic goods 12%

Capital Goods, toiletries, etc. 18%

Premium luxury commodities 28%

4. Union Territory Goods and Services Tax (UGST)

The Union Territory Goods and Services Tax is a type of GST imposed on the goods and services in the

union territories. This is similar to the SGST but applies only to the union territories. The UGST is

applicable in Dadra, Nagar Haveli, Chandigarh,

Andaman and Nicobar along with Pondicherry and Delhi. Here the revenue collected by the government

belongs to the Union territory government. As the UGST is a replacement for the SGST, they are collected
along with the CGST.

GST return

A GST Return is a legal document persisting GST invoices, receipts, payments, etc., of a certain period. It is
a collection of all the details of income, sales, expenses, and purchases of a GST-registered taxpayer.

The main parts of a GST return include-

 Purchases

 Sales

 Output GST (on sales)

 Input tax credit (GST paid on purchases)

All businesses registered under the Goods and Service Tax (GST) are liable to file GST returns monthly,
quarterly, and annually on the basis of the business. While filing the GST return, it is mandatory to provide
the respective details about the sales or purchases of the goods and services together with the amount of tax
that is collected and paid.

For filing the GST returns, one has to file 4 forms that may include the returns for the purchases made,
returns for the supplies, monthly/annual returns, etc.

The government has made GST return filing in India compulsory for all such entities that carry a legit GST
registration.
Types of GST Return

GSTR-1 Returns of outward supplies The due date is 11th of next month

undertaken by a typical registered Previously, the due date

taxpayer
for GST return filing was 10th of
under GST.
the next month.

GSTR-2 Returns of inward supply of goods 15th of next month.

and services as agreed by the

recipient of the goods and

services.

GSTR-3 A monthly GST return filing of 20th of next month.

inward and outward supplies of

goods and services.

GSTR-3B Returns of outward supplies along Previously it was the 20th of the

with input tax credit is declared and next month for all taxpayers. Now

payment of tax is affected by the it's from the month of January 2020

taxpayer. onwards.
GSTR-4 GST filing for taxpayers registered The due date is the 30th of the

under the composition scheme under month succeeding a financial year.

section 10 of the CGST Act

(Supplier of goods)

and CGST (Rate)

GSTR-5 Return for a non- resident foreign 20th of next month.

taxable person.

Returns that an Input Service

GSTR-6 Distributor files every calendar

13th of next month.
month. It has all the information of

the invoices on which credit has been

received and are

issued by an ISD.

GSTR-7 A monthly return that has to be filed 10th of next month.

by the deductors who are required to

deduct TDS under

GST.

GSTR-8 10th of next month.

Returns for the electronic commerce

operator who is

required to deduct TDS.

 GSTR -9 Annual return for a 31st December of next

normal taxpayer. financial year.

GSTR -9 Annual return for a 31st December of next

normal taxpayer. financial year.

GSTR-9A Annual return to be filed by the

registered taxpayer under the 31st December of next financial

composition levy anytime during the year.

year.

GSTR-9 C 31st December of next financial

Certified reconciliation year.

statement

GSTR-10 A final return that needs to be filed to To be filed within 3 months of

make sure the taxpayer pays off any cancellation of order.

liability

outstanding.

1.2 Statement of the Problem

 In the wake of the implementation of Goods and Services Tax (GST) in many countries, including India,
there exists a necessity to comprehensively understand and evaluate the GST return filing processes and
systems.
 This study aims to compare the GST return filing systems across different jurisdictions or regions,
identifying similarities, differences, strengths, and weaknesses.

 Through this comparative analysis, the project seeks to provide insights into the efficiency,
effectiveness, and challenges associated with GST return filing, facilitating informed policy
recommendations and improvements in GST administration

1.3 Objectives of the study

 To know the in depth knowledge about GST, how to file GST return.

 Understanding various aspects of GST which help company at time of auditing.

 Analyse and compare the GST return filing procedures in India.

1.4 Scope of the Study

 Getting importance of various tax slab in GST.

 Understanding comparison of GST return.

 Understanding recursion of not filling return.

 Acquiring knowledge of GST and return.

1.5 Limitations of the Study

 In the auditing of GST return extensive use of paper work is involved.

 There is no specified format to record data entries.

 It takes lot of time to record each entry in the excel format.

 Traders does not follow scheduled date to file return which increases work of filling

penalties.

 Businesses does not record all transaction in GST return to save tax.

 Because of heavy traffic on website it takes lot of time and efforts to download file from

government portal.

Chapter 2

Review of Literature
In the study of ‘A comprehensive analysis of GST in India’(2020) by Maruti M. V. analysed
the impact of GST on Indian tax scenario. He tried to highlight the objectives of the proposed GST plan
along with the possible challenges and opportunity that GST brings. He concluded that GST is the most
logical steps towards the comprehensive indirect tax reform in our country since independence. GST is
leviable on all supply of goods and provision of services as well combination thereof. All sectors of
economy i.e the industry, business including Govt. departments and service sector shall have to bear
impact of GST. All sections of economy viz., big, medium, small scale units, intermediaries, importers,
exporters, traders, professionals and consumers shall be directly affected by GST. One of the biggest
taxation reforms in India – the Goods and Service Tax (GST) is all set to integrate State economies and
boost overall growth. GST will create a single, unified Indian market to make the economy stronger.
Experts say that GST is likely to improve tax collections and Boost India’s economic development by
breaking tax barriers between States and integrating India through a uniform tax rate. Under GST, the
taxation burden will be divided equitably between manufacturing and services, through a lower tax rate
by increasing the tax base and minimizing exemptions.

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

In study of GST studied in India: A Big Leap in the Indirect Taxation System discussed by
Vasantha gopal (2011), the article focused on the impact of GST on various sectors of the economy.
The article further stated that GST is a big leap and a new impetus to India’s economic change. The paper
is concluded positive impacts on different sectors are dependent on unbiased and normal design of the
GST.
 Chapter -3
Method of Study