Gst Project

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BANGURNAGAR ARTS SCIENCE & COMMERCE COLLEGE
BANGURNAGAR ARTS SCIENCE AND

COMMERCE COLLEGE. DANDELI
A major concurrent project report on
“Factors and issues leading to Non filling of returns under GST”
During academic year 2023-2024
Submitted by
Jyoti Gopi Badiger
U02JR21C0015
Under the guidance of Ashitha Saldanha-Pinto

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ACKNOWLEGMENT
It is indeed a great privilege to extend my sincere thanks to all the persons who helped, guided
and also encouraged me in completing the project the topic” Factors and issues leading to Non
filling of returns under GST” I express my deep sense of gratitude to internal guide, prof.
Ashitha Saldanha-Pinto who supported me, with their path and guidance the project was
successfully completed within the given time.
DECLARATION
I hereby declare the project entitled” Factors and issues leading to Non filling of returns under
GST” As major Concurrent project for the partial fulfillment of my Graduation degree of
b.com which is been submitted to Karnataka university Dharwad, for the academic year 2023-
2024. The report has been submitted to prof. Ashitha Saldanha-Pinto and Bangurnagar
degree college
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TABLE CONTENT
SL No CONTENTS PAGE
NO
1) EXECUTIVE SUMMERY 6
2) INTRODUCTION TO COMPANY 9
3) LITEATURE REVIEW 31
4) RESEARCH METHODOLOGY 35
5) THEORTICAL FRAMEWORK 38
6) DATA ANAYSIS AND INTERPRETATION 42
7) FINDINGS 65
8) SUGGESTIONS 68
9) CONCLUSION 76
10) BIBILOGRAPHY 70
11) ANNEXURE
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EXECUTIVE SUMMARY
INTRODUCTION
GST was rolled out with effect from 1 july 2017 with the objectives of reducing tax cascading,
ushering in a common market fot goods and services and bringing in a simplified, self –
regulating and non-intrusive tax compliance regime.A person doing all over india needs to
understand the laws of Centre and the laws of different states. Taxpayer has to deal with
multiple departments which increases cost of Compliance for tax payer. Cost of collection and
administration of justice is also higher for government agencies on account of multiplicity of
agencies/tribunals and multiple laws. All these whether levid by the Centre to the states are
ultimately loaded on the product and recovered from the ultimate consumer, Taxes levied and
collected by the Centre and the States as per the Finance Commission Report. The burden of
all these taxes is passed on to ultimate consumer consuming the goods and Services. All these
complexities can be addressed by the Centre. However, on account of Federal characteristics
of India, single GST cannot be introduced as taxing powers of states cannot be taken away
completely. Therefore, India is geared up to introduce a dual GST on a common taxing event
of supply by central as well as state government. The Basic framework of the proposed GST is
as under For supplies within the state. That is intra-State supply there shall be a CGST levied
and collected by the state, The taxing event for CGST & SGST, valuation provisions, persons
liable to pay, point of collection , etc. is going to be the same. Therefore , if there is a liability
of CGST for a particular transaction, All the major decisions regarding levy shall be taken by
GST council comprising of representatives of centre and states. The rate applicable,
exemptions, threshold limit for exemption, principle of levying special rates for any specified
period or any specified area, etc. has to come from the GST Council and thus, Whatever it
recommends, that will be uniform throughout India. States are not getting liberty to decide these
issues unilaterally. The GST council will have one-third of votes of the Central Government
and two-third for states and every decision of the council must be approved by not less than
members presend and voting. At shyama sagar there is lot of Emhasis given on the factors and
issues leading to non filling of returns under GST have their own company in basavangudi
Banglore They have 3 branches to needs in banglore and they also production in Tax analysis,
Ratios, Income tax also this study is done in order to know whether actually the GST and Tax
analysis correlated To help the company know whether their in GST are increasing their profits
.
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ABSTRACT
The dream of ‘one country – One tax’ and India becoming an integrated market from indirect
tax perspective has come into force from 1st july, 2017. The Constitution of India’s 101st
Amendment Act 2016- has come into force on 8th September , and notification of the GST
council on 15th September- the road to GST rollout tax clear. Government is keen on
introducing GST – the biggest indirect tax reform. One of the biggest challenges is to teain
the indirect tax officials of both Centre and State, as well as the traders. This study assesses
the level of GST acceptance, awareness, and particulary the level of filing of returns and
reasons for not filing of returns in time Under GST among the traders.
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COMPANY PROFILE
INTRODUCTION
TO
COMPANY
Mr. Shyama Sagar is a commerce graduate and fellow of Chartered Accountants of India.In the year 2013
he started a proprietorship firm called Shyama Sagar & Associates. Chartered Accountants and in the year
2014 he founded along with partner CA Karthikeya , a partnership firm S R K C & Co, Chartered
Accountants. He have been involved in the audit of major Corporate and non – Corporate clients in
industries such as Education, Construction, Information Technology Services, Human Resource,
Healthcare, Banking Hospitality,
SRKC & Co. The firm is having 25 years experience in the areas of statutory Audits, Internal Audits,
Company Law Matters, and Taxation including Appeals. In a global marketplace with complex
environment, companies face new challenges in today’s economy. Our Audit
Firm helps clients Successfully respond to the challenges by providing professional Services,
Wherever and Whenever they’re needed. In a global marketplace driven by remarkable growth and
Consolidation, Companies face a host of new challenges in today’s economy.
S R K C & Co. endeavors to help clients to successfully respond to changing opportunities by providing
need – based professional services. S R K C & Co. has tailored its services which include Audit and
attestation services, tax and legal consulting and financial advisory services address the Complex business
environment and the challenges faced by clients.
Services Offering
 Startup Business
We provide ideas for both entrepreneurship & venture capitalism as the neeed of business expansion
looks for many avenues of growth.
 Goods & Services Tax(GST)
Our specialist’s tax knowledge encompasses both national & global laws of taxation. As result, you
would get expert advice.
BANGURNAGAR DEGREE COLLEGE
 Audit and Assurance
Auditing advice helps you formulate your strategy for the future business diversifications and better
ROL.
 Virtual CFO Services
The passion behind each business venture inspires us. Naturally, we too are passionate in providing
quality ideas and insights that work.
 Direct Taxes
Auditing needs to give authentic. Actionable and insightful Statements for the investors to base
their investment decisions
 Accounting and Outsourcing
We Understand each family business is unique. Therefore. Our solutions too are unique and
personalized.
Overall Rank of Srkc & Co
Overall rank 32 out Amongst top 24.62% Chartered accountants

In 560004 Of 130 In 560004
Overall rank 170 out of Amongst bottom 100 % Chartered accountants
In Bangalore 170 In Bangalore
Overall rank 183 Amongst bottom 100% Chartered accountants

In Karnataka out of In Karnataka
183
Overall rank 488 Amongst top 28.05% Chartered accountants
In India Out of In India
1740
Overall Average
Rating
He has an extensive exposure to the income Tax Law , Company Law and Finance and
Accounts Controls and Management. He has exposure to India Accounting and Audit Standards and
generally accepted Accounting principles in India.
a partnership firm S R K C & Co, Chartered Accountants. He have been involved in the audit of major
corporate and non – corporate clients in industries such as Education, Construction, Information
Technology Services, Human Resource, Healthcare, Banking, Hospitality, Solar and Engineering etc.
Vission
Our vision is to provide best solutions in matter of accounting. auditing and Taxation.
We constantly strive for excellence in all related activities by ensuring the highest quality Standards.
We build enduring relationship With clients by providing most Cost efficient and highly professional
Services.
Mission
Understanding the client and its business
Meeting the expectations of the client
To impart highest quality value added Services to the clients Communicate Continuously
and expeditiously.
Audit Taxation & Advisory Firm
We are a young and dynamic team of Chartered Accountants in Bangalore . We have been rendering diverse
professional Services under one roof over the past 9 years in the field of Audit and Assurance. Taxation ,
Virtual CFO, Start – up business Services, Valuation,
Corporate Advisory, NRI Taxation, Registrations, etc
Reasons for doing internship:
1 To get real-life experience and exposure towards corporate workings.
2 It’s an opportunity to assess our strengths and weaknesess.
3 Helps connect with professional people and opens door to corporate network.
4 Gives an opportunity to prove our self in performance.
5 Acts as a transformational tool to student to become employee

Introduction to project:
Name of the project: The study of Factors and Issues Leading to Non-Filing of Returns under GST’’
About the project:
As we all know that GST is a progressive concept in India after it became a new tax regime. Even though
GST plays such an important role in taxation system and influences the future economy growth of the
country, when it come to the performance and revenues generating from the GST, the growth is not up to
the mark. This is reflected by the decrease in the returns filing under GST over a period of time. The
project is about finding the reasons, problems, responses and grievances resulting in the traders, registered
under GST, to not file the returns in time. To know and find the ways and overcome this serious issue, a
survey is conducted to find the reasons for why such decrease in returns filing. The findings and
observations were identified along with necessary suggestions. This survey is conducted in a region( GST)
and non-filers in that area were asked for reasons for such non-filing of returns under GST. The data of
non-filers of returns is taken from respective GST office with the permission of the Commissioner of
Commercial Taxes.
Objectives of GST:-
1. To concentrate and conform one Country- One Tax.
2. To ensure consumption based tax instead of Manufacturing
3. To ensure Uniform GST Registration, payment and Input tax Credit.
4. To eliminate the cascading effect of indirect taxes on single transaction.
5. To ensure the subsume all indirect taxes at Centre and State Level under.
6. To increase tax to GDP Ratio and Revenue surplus.
7. To reduce tax evasion and corruption.
8. To increase productivity.
9. To increase Compliance.
Limitations of the project:

• Time is the main constraint for the project to do a complete study – the project was assigned to be
completed in two moths
• The project survey is restricted to GST Region only(i.e. Jayanagar)
• Since the targeted respondent were technically and educationally poor in majority of the cases, there
may be a deviation in project result and actual scenario by up to 10 to
20%
• As many of the respondents were depending upon the consultants, auditors and third parties,the
responses given by them may not be accurate in some of the cases
Scope of the project:

• This project helps in knowing the reasons for non-filing of returns by the Traders
• This project helps is assessing the Traders’ Perception towards GST
• This project helps the department to know where the gap is growing and the reasons for such gap in
filing returns under GST
Brief overview on GST:

Overview on GST in India:
The Constitution (122 nd Amendment) Bill, 2014, seeks the Constitution of India to facilitate
the introduction of Goods and service Act. It is the Indirect Tax charged on local consumption and is borne
by end consumers. It is collected at each stage of the production and distribution chain by registered
vendors, who have to account for the tax on the value that they have added to goods and services. France is
the first country to introduce GST. Almost Countries have introduced GST in some form. While countries
such as Singapore and New Zealand tax virtually everything at a single rate, Indonesia has five positive
rates, a zero rate over 30 categories of exemptions. the authority to levy tax is derived from the
Constitution of India which allocates the power to levy various taxes between centre and state.
Need for GST:

India’s recent progress towards economic growth stems from reforms undertaken after the
1991 fiscal crisis, which lifted India from decades of slow growth under socialist rule and offered an
opportunity to improve living conditions in the immense, poor country . At the same time, much had
changed in India after the balance of Payments crisis of 1991.Indian policies became more positive towards
promoting export and allowing foreign capital to participate in the process of India’s growth. Globalization
and liberalization have become the order of the day. The interdependence of economics in their move for
development compelled the governments of all the countries to follow the globalization policies adopted by
the major economies of the world. To surive and grow in this economic order, rational and competitive tax
policies are being adopted by every county. India has also fallen in line with the requirement and has been
initiating modifications in indirect taxes. The recent proposals of Goods and Services Tax (GST) are
considered as path-breaking in the economic restructuring in general and in the taxation area in particular.
As the revenue to the government is increasing its figures from indirect taxes year by year, this change will
further boost the economy in a positive way which is necessary for the international competence and
globalizing the market and economy.
Various Studies on GST:
Chief Economic Advisor Committee:-

In December, 2015, Chief Economics Advisor (CEA) Arvind Subramanian, released a
comparative study of GST implementations in the federal Systems around the world. ‘Report on the
Revenue Neutral Rate and Structure of Rates for the Goods and Services Tax (GST)’. His report focused on
the experiences of European Union, Canada, Brazil, Indonesia, China (a unitary nation and Australia.
Subramanian found that most of these countries were facing ‘serious challenges’ in working with the GST.
Reserve Bank of India:-

The Reserve Bank of India too studied the GST implementations in various countries and incorporated its
findings in the report titled: ‘State Finances: A study of budgets of 2016-17’ and released in may 2017. The
RBI took notes from the GST experiences of Argentina, Australia, Brazil, Canada, Malaysia, New Zealand
and Russia. It found flaws in all the GST models. On the basis of the global experience, the RBI listed
some of the risks that GST may bring to India in the new taxation regime.
GST to be major test of digital India success:
On July 1 , 2015, the prime minister launched the Digital India programme with the objective of
creating a participative, transparent and responsive government. And on January 16, 2016, the much -
talked-about Start-up India, Stand up India initiative , aimed at encouraging new ventures and creating
jobs, was kicked off amidst much fanfare.
Without doubt, these are some of the most- important initiatives of the government expected to transform
the corporate sector. Along with these initiatives , there is yet another game Start-up India complement
each other, GST is crucial for the success of both these initiatives
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Impact of GST on Business:
GST is widely seen as the most important and far-reaching indirect tax reform that will, potentially, have an
impact on almost all industries and business since it will create a common Indian marketplace and reduce the
cascading effect of taxes. It will Subsume all indirect taxes and create just one rate for the entire nation.
GST will have a profound effect on the way business is conducted in India and the way prices are determined.
The legislation will affect the pricing of goods and services, supply chain optimization, accounting and tax
compliance systems, as also the tax structure, tax incidence, tax computation, tax payment, compliance, credit
utilization and reporting. In short, the present indirect tax system, with all its inefficiencies, will be completely
overhauled.
GST will create a wider tax base, which will lower tax rates. Not only will the multiplicity of taxes be
eliminated and the tax structure rationalized, compliance procedures will also become easier. Additionally,
the automation of compliance procedures will also become easier. Additionally, the automation of compliance
procedures (which comes under the domain of the Digital India initiative) will reduce errors and increase
efficiency .
GST will enable the digital industry business initiative to take root by providing a uniform tax rate and
standard regulations across the nation. This will enhance ease of doing business, and will allow start-up,
online market places and the retail sector to flourish. These sectors are also seen as major job creators. With
GST roll-out, industries in these domains can expect huge gains, which will, in due course of time, lead to
more jobs and a higher GDP.
The roll-out of GST has already been delayed, largely due to lack of political consensus. The smooth passage
of the bill is deemed crucial for the success of mega economic and social projects, such as Digital India and
Start-up India. The government is now hoping to kick-start the initiative on April 1, 2017. That leaves very
little time for companies to upgrade their accounting systems and ERP software to comply with the new tax
regime.
Some companies have already come out with GST-ready software offerings and suites that will help
companies migrate smoothly to the new tax regime, and enable them to integrate the older financial structure
with the new one seamlessly. All stakeholders are now waiting with bated breath.
Goods and Services Tax in India:

Meaning of GST:
GST is defined as any tax on supply of goods and services, other than on alcohol for human
consumption. In brief, before GST came into existence tax was levied at two-tax system, one is sale value
or about invoice amount, and second one is on the value-added amount under value added taxation. Now
Goods
& Services Taxes id destination-based and input tax credit system (ITC) paid at previous stage of purchases
and it can be set off right from the manufacturer to the end users. In the supply chain of goods and Services,
value added will be taxed and ultimate burden tax to be paid by the final consumer.
Features of GST Model:
The following are the some of the important features of GST:-
1.The GST shall have two components: one levied by the centre (here in after referred to as Central GST),
and the other levied by the states (here in after referred to as state GST).
2. The Central GST and the state GST are to be paid to the accounts of the Centre and the States
separately
3. The Central GST and the State GST would be applicable to all transactions of goods and Services
made for a consideration except exempted goods and services, goods which are outside the purview of GST
4. Since the Central GST and the state GST are to treated separately; taxes paid against the Central GST
shall be allowed to be taken as input tax credit (ITC) for the Central GST and could be utilized only against
the payment of Central GST. the same principle will be applicable for the state GST.
5.The administration of Central GST to the Centre and for state GST to the States would be given.
6. To the extent feasible, uniform procedure for collection of both central GST and the State GST would
be prescribed in the respective legislation.
7. The taxpayer would need to submit periodical returns, in common format 42, introducing GST and
its impact on Indian economy, as far as possible, to both the central GST authority and to the concerned State
GST authorities.
8. Each taxpayer would be allotted a PAN-Linked taxpayer Identification Number with a total of 13/15
digits. This would bring the GST PAN-Linked system in line with the prevailing PANbased system for
Income Tax, facilitating exchange and taxpayer Compliance.
GST will eliminate the around 16 different types of taxes from regime which were levied by central and
state government before the GST Act has been implemented in which central taxes
(excise, surcharges, service tax, central sale tax etc…,) and state levied tax (VAT, Octroi , luxury tax,
entertainment tax, advertisement tax, cess and surcharge etc..,)
The GST in India is dividend into three types CGST, SGST,IGST. If the transction of goods and, if the
transaction belongs to inter-state then IGST is attracted. The consolidated rate of CGST and SGST will be
equal to the rate of IGST.
GOODS & SERVICES TAX NETWORK:

Goods and services Tax Network (GSTN) has been set up by the Government as a private company under
erstwhile Section 25 of the Companies Act, 1956. GSTIN would provide three front end services to the
taxpayers namely registration, payment and return. Besides providing these services to the taxpayers ,
GSTN would be developing back-end IT modules for 27 states who have opted for the same. Infosys has
been appointed as Managed Service provider (MSP). GSTN has selected 73 IT, ITes and financial
technology companies and 1 Commissioner of Commercial Taxes ( CCT, Karnataka), to be called GST
Suvidha providers
(GSPs). GSPs would develop applications to be used by taxpayers for interacting with the GSTN . The
diagram below shows the work distribution under GST.
Central Government holds 24.5 percent stake in GSTN while the state government holds 24.5 percent. The
remaining 51 per cent are held by non-Government financial institutions , HDFC and HDFC Bank hold 20%
,ICICI Bank holds 10%, NSE Strategic Investment hlods
10% and LIC Housing Finance holds 10%. The GST Council in its 27th meeting held 04.05.2018 has
approved the change in shareholding pattern of GSTN, Considering the nature of ‘state’ function’
performed by GSTN, the GST Council felt that GSTN be converted into a fully owned Government
company. Accordingly, the Council approved acquisition of entire 51 per cent of equity held by non-
Governmental institutions in GSTN amounting to Rs.5.1 crore, equally by the centre and the state
Governments.
The design of GST systems is based on role based access. The taxpayer can access his own data through
identified applications like registration, return, view ledger etc. The tax official having jurisdiction, as per
GST law, can access the data. Data can be accessed by audit authorities as per law. No other entity can have
any access to data available with GSTN.
GST Advantages:-
GST eliminates the cascading effect of tax.
Higher threshold for registration.
1. Composition scheme for small businesses.
2. Simple and easy online procedure.
3. The number of compliances is lesser.
4. Defined treatment for E-commerce operators.
5. Improved efficiency of logistics.
6. Unorganized sector is regulated under GST
7. GST brings uniformity in the taxation process and allows centralized registration.
8. GST is a transparent tax and also reduces the number of indirect taxes.
9. GST will also help to build a transparent and corruption free tax administration.
10. Benefit people as prices will come down which in turn will help companies as consumption will
increase.
GST Disadvantages:
1. Some Economist says that GST in India would impact negatively on the real estate market. It would
add up to 8 percent to the cost of new homes and reduce demand by about 12 percent.
2. Some Experts says that (Central GST), SGST (State GST) are nothing but new names for central
Excise/service Tax, VAT and CST. Hence, there is no major reduction in the number of tax layers.
3. Some retail products currently have only a four percent tax on them. After GST, garments, and
clothes could become more expensive.
4. The aviation industry would be affected. Service taxes on airfares currently range from six to nine
percent. With GST, this rate will surpass fifteen percent and effectively double the tax rate.
5. Adoption and migration to the new GST system would involve teething troubles and learning for the
entire ecosystem.
Why GST has been proposed?

Our Constitution empowers the Central Governments to levy excise duty on manufacturing and service tax
on the supply of services. Further, It empowers the state governments to levy sales tax or value added tax
(VAT) on the sale of goods. This exclusive division of fiscal powers has led to a multiplicity of indirect taxes
in the country. In addition, central sales tax (CST) is levied on inter-State sale of goods by the Central
Governments, but collected and retained by the exporting States. Further, many States levy an entry tax on
the entry of goods in local areas.
This multiplicity of taxes at the State and Central levels has resulted in a complex indirect tax structure in the
country that is ridden with hidden costs for the trade and industry. In order to simplify and rationalize indirect
tax structures, Government of India attempted various tax policy reforms at different points of time. A system
of VAT on services at the central government level was introduced in 2002, levied on intra-state trade and the
CST on inter-state trade. Despite all the various changes the overall taxation system continues to be complex
and has various exemptions.
This led to the idea of “One nation one Tax” and introduction of GST in Indian financial system. This is
simply very similar to VAT which is at present applicable in most of the states and can be termed as National
level VAT on Goods and Services with only one difference that in this system not only goods but also services
are involved and the rate of tax on goods and services are generally the same.
Different types of Goods and Service Tax (GST):-
1. Central Goods and Services Tax(CGST):
Under GST, CGST is a tax levied on Intra state supplies Of both goods and services by the Central
Government and will be governed by the CGST Act. SGST will also be levied on the same Intra state
supply but will be governed by the state Governments.
This implies that both the central and the state government will agree on combining their levies with an
appropriate proportion for revenue sharing between them. However, it is clearly mentioned in section 8 of
the GST Act that the taxes be levied on all Intra-state supplies of goods and/or services but the rate of tax
shall not be exceeding 14%, each.
2. State Goods and Services Tax(SGST)
Under GST, SGST is a tax levied on Intra State supplies of both goods and services by the state
Government and will be governed by the SGST Act. As explained above. CGST will also be levied on the
same Intra State Intra State supply but will be governed by the Central Government.
3. Integrated Goods and Services Tax (IGST):
Under GST, IGST is a tax levied on all Inter-State supplies of goods and/or services and will be governed
by the IGST Act. IGST will be applicable on any supply of goods and/or services in both cases of import
into India and export from India.
Documents Required for GST Registration:

1. PAN of the Applicant.
2. Aadhaar Card.
3. proof of business registration or Incorporation certificate.
4. Identify and Address proof of Promoter.
5. Address proof of the place of business.
6. Bank Account statement/ Cancelled cheque
7. Digital Signature.
8. Letter of Authorization/Board Resolution of Authorized signatory.
Why the split into SGST, CGST, and IGST?

India is a federal country where both the Centre and the States have been assigned the Powers to levy and
collect taxes. Both the Governments have distinct responsibilities to perform, as per the Constitution, for
which they need to raise tax revenue.
Different types of taxes:-

Prevalence of various kinds of taxes is found in India. Taxes in India can be either direct or indirect.
However, the types of taxes even depend on whether a particular tax is being levied by the central or the
state government or any other municipalities.
In the earlier indirect tax rule, there were many indirect taxes levied by both state and centre. States mainly
collected taxes in the form of value Added Tax (VAT). Every state had a different set of rules and
regulations. Interstate sale of goods was taxed by the Centre. CST (Central State Tax) was applicable in
case of interstate sale of goods. Other than above there were many indirect taxes like entertainment tax,
octroi and local tax that was levied by state and centre. This led to a lot of overlapping of taxes levied by
both state and centre.
For example, when goods were manufactured and sold , excise duty was charged by the centre. Over and
above Excise Duty, VAT was also charged by the state. This lead to a tax on tax also known as the
cascading effect of taxes.
The following is the list of indirect taxes in the pre-GST rule:
1. Central Excise Duty

2. Duties of Excise
3. Additional Duties of Customs
4. Additional Duties of Excise
5. Special Additional Duty of Customs
6. Cess
7. State VAT
8. Central Sales Tax
9. Purchase Tax
10. Luxury Tax
11. Entertainment Tax
12. Entry Tax
13. Taxes on advertisements
14. Taxes on lotteries, betting, and gambling
LITERATURE
REVIEW
1. Study on Awareness and perception of taxpayers towards goods and services tax
(GST)
Author: Mohamad Ali Roshidi Ahmad’,
Published year: 2016
This study attempts to find out what level of awareness and perception to GST taxpayers in
Malaysia. This study only consists 256 civil servants of the secondary school teachers . the result
showed that the level of awareness was moderate and the the majority of respondents give a high
negative perception to the impact of GST.
1) Study on Awareness about implementation of GST:

Author: Vineet Chouhan, Pushpkant Shakdwipee, Shagufta Khan
The study has revealed that there is a lack of awareness amongst the small business owners
regarding the GST and its rules. For the purpose of the paper the responses were gathered form
those who will be affected from the applicability of GST were selected.
2) Study on Taxpayer knowledge, perceived corruption and service orientation:

Author: Katharina Gangl,
Published year: August 13, 2015
Tax non-filing and the resulting tax evasion are a challenge to public welfare, particulary in
developing countries, scholarly knowledge on taxable citizens who do not register as taxpayers, also
known as the ‘ghosts’, is minimal.
To expand this knowledge base, this empirical paper compares rich self-employed individuals
identified as non-filers with a randomized group of tax filers with similar socio demographic
backgrounds in terms of two bases of perceived tax system legitimacy: knowledge of taxpayers.
3) Study on Challenges in filing GST returns in India:
Author: BS Lalitha
GST(Goods and Service Tax ) is considered as one of the most economic reforms and has replaced
the various forms of taxes into one. It is expected to bring in robust growth to the country. The aim
of this paper is to find out the implementation of GST and the various challenges that are faced by
the taxpayers while filing the GST returns. The major findings includes majority of the respondents
file their returns through auditors, they face variety of problems while filing their returns and
technical glitch is a common problem.
4) The implementation of the goods and services tax in issues perceived by business taxpayers
Author: Appadu Santhariah, Binh Tran-Nam, Dale Boccabella, Nthati Rametse Published year:
2018
The implementation of the goods and services tax (GST) government’s taxation reforms aimed at
improving the collection of revenue and reducing the country’s budget deficit. This study presents
some of the major issues and concerns that Malaysian business taxpayers .
Perceived as key challenges in preparing for GST implementation. A survey was conducted April to
June 2013, in which 426 business taxpayers responded from various small- and medium sized
enterprises
5) Study on taxpayer issues and challenges facing tax administrations:

Author: John Wickerson
This paper provides an overview of some of the fundamental challenges facing tax administrations
in their efforts to measure or estimate statistically the extent to measure or estimate statistically the
extent to which individual taxpayers correctly report their tax liabilities.
6) A Study on Small business in the GST regime:

Author : S Banerjee,
The gst liability. However, Form GSTR-3B10 that has to be filed for filing returns did not have
…This meant that tax credit was being denied and gst had to be first paid in cash the way GST has
been introduced is too onerous for small business.
7) Inter- governmental fiscal transfers in the presence of revenue:

Author: S Mukherjee
Following this, we discuss possible causes of GST revenue …. Business to take GST registration
and get integrated with…The reason for volatility in on-time return submission needs to though it is
not right time to comment on success or failure od Indian GST system unless the tax system.
The genesis of revenue shortfall may be design and structural in nature and compliance and tax
administration related.
8) Perspectives and Role of GST Practitioners in Promoting GST Compliance in India:

Author: Basavangouda,
Factors, and GST registration, return filings, refunds and other requirements. The government has
responded by introducing the concept of GST practitioners to assist taxpayers with GST low and to cope up
with technological aspects, it is difficult for a non-tech savvy taxpayer to comply with GST.
The paper provides deeper understanding of the issues under GST from the views of practitioners in
the field.
RESEARCH METHODOLOGY
TITTLE OF THE PROJECT
“A STUDY ON THE FACTORS AND ISSUES LEADING TO NON-FILING OF

RETURENS UNDER GST”
Duration of the project : Two Months
Area/Region of the project conducted : Bangalore(GST)
Data Collected : Primary and Secondary Data

Sample Size : 100 Taxpayers
Primary Data: In the process of conducting the study, a survey of 100 Traders/taxpayers was made in
GST(region) Banglore
Secondary Data : The Data collected from books, research, journals
Nature of the Study:
This research is on the basis of “A STUDY ON THE FACTORS AND ISSUES LEADING TO NON-
FILING OF RETURENS UNDER GST”. The one of the primary objectives is the to study the efficiency of
non-filling returns under GST of the Company
Research Methodology:
This report is based on primary as well as secondary Data, however primary data collection was given more
importance since it is over hearing factor in studies. One of the most important users of research
methodology is that is helps in identifying the problem, collecting, analyzing the required information data
and providing an alternative solution to the problem. primary data helps better decision making both day
decision and critical once.
OBJECTIVES:-
1) To Study the level of GST awareness among Taxpayers

2) To Study the level of returns filing knowledge of Taxpayers registered under GST
3) To know the awareness of the process of filing of returns under GST
4) To identify the issues, problems, faced by the Taxpayers registered under GST
5) To identify the reasons for not filling returns
6) To know the reasons for not filing on time by GST registrants
THEORETICAL FRAMEWORK
Goods and Service Tax:

What is GST?
All the taxes mentioned earlier are proposed to be subsumed in a single tax called the goods and services
Tax (GST) which will be levied on supply of goods or services pr both at each stage of supply chain
starting from manufacture or import and till the last retail level. So basically any tax that is presently being
levied by the Central or Son the Government on the supply of goods or services is going to be converged
into GST.
GST is proposed to be a dual levy where the Central( Government will levy and collect Central
GST(CGST) and the State will levy and collect State GST(SGST) on intra-State supply of goods and
services. The Centre will also levy and Collect Integrated GST (IGST) on inter-State supply of goods or
Services. Thus GST is a Unifier that is going to integrate various taxes being levied by the Centre and the
State at present and provide a platform for forging an economic union of the country.
Factors of Goods and Service Tax(GST):-
1) Reduction in Trade Barriers:

Trade is the buying and selling goods and services from one point of origin to another point of
consumption. It can be either domestic or international. Considering India , with such diversity, if
you have to trade a product from North to south, you will have to come across multiple states and
will have to pay taxes for the goods carried for every time you cross a state’s border, which is a
huge drawback for the trade and ultimately the nation’s economy.
2) Decrease in Fleet downtime:

A fleet downtime is a situation when the vehicles stop functioning. Such situations can arise due
various factors:
Delayed service, low maintenance, collisions, breakdowns, etc.
Apart from these unplanned downtime of the fleets, there are possibilities of planned downtime of
fleets by the company itself.
3)Unification of Warehouses (Bigger warehose)

We know that a producer or manufacturer is the origin point of an trade and the end point is
the consumer is it possible to trade the products immediately after the manufacture? Definitely not , the
products are to be examined on various aspect, packed and starred at a place before the distribution is called
the warehouses.
4)Adoption of Technology advancements.:
As GST has been one of the huge advancements in the taxation system technology has also seen various
advancements in the field of logistics benefit the traders. Advancements has taken place in every aspect like
communication, machinery, electronic ,electrical, management etc.
5) Eliminating challenges to improve turnaround time (Improved transport time):
Time is a key factor of logistics business and it determines the efficiency in productivity of any company.
Pre-GST regime had several drawbacks with respect to the taxation systems, one of those is the time
management.
Issues In Implementing GST:-

1) The buyer received a tax invoice from the supplier.
2) The buyer has received goods/services.
3) The taxes charged on purchase have been deposited/ paid by supplier.
4) The supplier has filed GST Returns.
5) Cash flow issues.
Non Filling of Returns under GST:-

GSTR is a Return which is to be filled by a Regular GST Tax payer. It contains the summary details of
outward Supplies made and details of outward Supplies made and the details of input Tax Credit. Usually,
the due date for filling of GSTR 3B is 20 of next month but the Government can extend the due date.
Late fees under Section 47 of the CGST ACT, 2017 – Starts Immediately after due date
Late fees is the first consequence you will face for non filling of GSTR 3B. The late fees will increase
everyday until it hits the capping limit. The fee will automatically be added in the next months GSTR 3B.
Moreover you can’t edit it or you can’t proceed to file the return until you pay the late fees.
DATA ANALYSIS
1) Duration of the business ?
Particulars Responses
1 74
2 17
3 7
4 3
Sales
7 1.2
17 1
2
3
4
74
INTERPRETATION:
t Iis evident from the above table that 74% of the non-filers of GST returns are owners of business while
7% are Franchises an d remaining 3% are lessees. This categorisation was primarily considered to examine
if the antecedents the non-filing of GST returns is same or different across groups
2) Eligible for paying Tax?
1 46
2 57
46
57
1st Qtr
2nd Qtr
INTERPRETATION:
It is evident from the above table that 46% of the non-filers of GST returns are owners of business while
57% are Franchises an d remaining are lessees. This categorisation was primarily considered to examine if
the antecedents the non-filing of GST returns is same or different across groups
3) What is the annual turnover of the business?
1 85
2 14
3 2
4 1
2
14
1
2
3
4
85
INTERPRETATION:
It is evident from the above table that 85% of the non-filers of GST returns are owners of business while
14% are Franchises an d remaining 2% are lessees. This categorisation was primarily considered to
examine if the antecedents the non-filing of GST returns is same or different across groups
34 Chetan Business school
4) Are you registered under GST?
1 39
2 65
1
39
2
65
INTERPRETATION:
It is evident from the above table that 39% of the non-filers of GST returns are owners of
business while 65% are Franchises an d remaining are lessees. This categorisation was
primarily considered to examine if the antecedents the non-filing of GST returns is same
or different across groups
5) Do you face any issues/problems while registering the GST?

1 23
2 78
23
1
2
78
INTERPRETATION
primarily considered to examine if the antecedents the non-filing of GST returns is same
or different across groups
6) Awarness on goods and service tax (GST)

Pariculars Responses
1 53
2 19
3 30
30
1
53 2
3
19
INTERPRETATION
business while 19% are Franchises an d remaining 30% are lessees. This categorisation
was primarily considered to examine if the antecedents the non-filing of GST returns is
same or different across groups
7) Have you understood the basic concept of gst?
Pariculars Responses
1 76
2 26
Sales
26
1
2
76
INTERPRETATION
primarily considered to examine if the antecedents the non-filing of GST returns is same or
different across groups
8) Lack of Skilled labour in your business who can do such filling under gst?
1 54
Chetan Business school
2 48
1
2
48
54
INTERPRETATION
9) Are you facing any difficulties regarding your taxpayers profile?

1 32
2 70
32 1
2
70
INTERPRETATION
10)Are you facing any issues regarding categoriestion of goods/services that you are
oprtating?
1 33
2 67
33 1
2
67
INTERPRETATION
11)Are you waiting for refunds from department?
1 44
2 58
1
44 2
58
INTERPRETATION
12) Are you out of funds to pay tax liability?

1 41
2 63
1
41
2
63
INTERPRETATION
13)Is there any issues in receiving the payments for the Tax invoice raised?
1 27
2 74
27
1
2
74
INTERPRETATION
14)mode of filling returns?
1 29
2 15
3 17
4 42
17 1
29 2
3
4
15
INTERPRETATION
business while 29% are Franchises an d remaining 17% are lessees. This categorisation was
primarily considered to examine if the antecedents the non-filing 15% of GST returns is
same or different across groups
15) Are you facing any issues such as different rate of tax in different locations that you are
operating?
1 29
2 84
29
1
2
84
INTERPRETATION
16) Is there any earlier tax refunds which are still in process?
1 35
2 68
35 1
2
68
INTERPRETATION
17) Are you waiting for set off liability from the ITC/TRANS/ISD?
1 34
2 61
34 1
2
61
INTERPRETATION
18) Is there any time problem regarding GST paid and GST collected ?
1 33
2 70
33 1
2
70
INTERPRETATION
19) Are you facing any issues regarding multi-applicable tax rates?
1 30
2 69
30
1
2
69
INTERPRETATION
20) Are you not registered under GST?

1 34
2 63
34 1
2
63
INTERPRETATION
FINDINGS
1) It is evident from the above table seventy four percent of the non-filers of GST
returns are owners of business While seven percent are Franchises and remaining
three percent are lessees. This categorization was primarily considered to examine
if the antecedents the non-filing of GST returns is same or different across groups
2) From the above data , it may be observed that majority of the respondents are
owners of business while the remaining few are either franchises or lessees. This
implies that most of the business filing GST returns in India may be owners who
are bound by unlimited liability as evident from the response rate of fifty seven
percent
3) The respondents were running their business for more than ten years eight five
percent of respondents business tenure. The following table shows the number of
people liable for paying tax under GST which can be known by their turnover, the
table shows the total number of respondents and their turnover per annum
The eligibility to pay tax under GST on the basis of their annual turnover. As we can see,
only thirty-nine of the respondents were not eligible to pay taxes as their turnover.
3) The actual turnover were between Rs 20 lakh to Rs 1.5 crore, 14% of the
respondents’ annual turnover is Rs 1.5 crore to Rs 5 crore , and 85% of
respondents, turnover is less than Rs 20 lakh. By the majority of the respondents
4) The earlier registrations pf Traders under VAT/Service Tax who were now
registered under GST. It merely shows from where GST registrations were flown
from.
5) The following table shows the mode of transactions made by the Traders while
conducting inward and outward supplies in their businesses.
6) The following various technical issues based on the questionnaire which were the
suggested/top-rated issues or problems refferred from Commercial Tax Officer’s
in the GST department.
7) Such, respondents, who were doing the transactions both ways, were further
divided into cash and credit proportionately which is shown in below pie diagram
that concludes that respondents were majority depending upon credit basis of
transactions .
8) The following various Administrative issues based on the questionnaire which

were the suggested/top-rated issues/problem referred from Commercial Tax
Officer’s and Field officers in GST the department.
SUGGESTIONS
As the Ratio Anlaysis is decreased for the recent year, companies can utilize
current assets even better mainly focusing on GST” Cash and Cash equivalents
should be utilized and receivables should berecovered. Company needs to
maintain an emergency level of stock; it should not fall inany case.
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CONCLUSION
Indian businesses have to comply with multiple taxations systems at the intra-state ,interstate
and central level like excise, sales tax , service tax, entertainment tax, VAT etc. These clusters
of taxes have significant cascading effect and are complex to decipher for both.
From a businessman’s perspective he/she is not confident to commit deliveries and prices
because of uncertainties. From a consumer perspective, it is difficult to fathom the impact of
the same and always suspect dubious manipulations. Introduction of GST aims to alleviate.
Though not all, many of the problems leading to efficiency in operations for
Individuals leading to economic growth of the country.
GST Act came into existence, leading to the realization of “One country”, One tax”. It is a
centralized tax-paying network which simplifies payment of tax by the citizens as well as
Revenue collecation by the government. It widens the tax base.
This survey observed that a majority of the taxpayers was not able to migrate from their
manual system of filing returns to E-filing system. Important factors attributable are their
educational knowledge, lack of computer skills, and discussed in this report earlier.
Confusing the traders and changing them huge amount. However , It can be seen that the
government has designed GST filing system in such a way that a person with minimum
Computer knowledge can file the returns without any problem. This fact has to be promoted
and the traders educated on filing returns so that the middle men between government and
taxpayers are eliminated and the tax returns filing process is transparent and esy.

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1

BANGURNAGAR ARTS SCIENCE & COMMERCE COLLEGE

BANGURNAGAR ARTS SCIENCE AND

A major concurrent project report on

“Factors and issues leading to Non filling of returns under GST”

During academic year 2023-2024

Jyoti Gopi Badiger

Under the guidance of Ashitha Saldanha-Pinto

6) DATA ANAYSIS AND INTERPRETATION 42

 Goods & Services Tax(GST)

 Audit and Assurance

 Virtual CFO Services

 Accounting and Outsourcing

Overall Rank of Srkc & Co

Overall rank 32 out Amongst top 24.62% Chartered accountants

Overall rank 183 Amongst bottom 100% Chartered accountants

Understanding the client and its business

Meeting the expectations of the client

Audit Taxation & Advisory Firm

Reasons for doing internship:

1 To get real-life experience and exposure towards corporate workings.

2 It’s an opportunity to assess our strengths and weaknesess.

4 Gives an opportunity to prove our self in performance.

5 Acts as a transformational tool to student to become employee

About the project:

Limitations of the project:

Scope of the project:

Brief overview on GST:

Need for GST:

Various Studies on GST:

Chief Economic Advisor Committee:-

Reserve Bank of India:-

GST to be major test of digital India success:

Impact of GST on Business:

Goods and Services Tax in India:

Features of GST Model:

The following are the some of the important features of GST:-

GOODS & SERVICES TAX NETWORK:

GST eliminates the cascading effect of tax.

Higher threshold for registration.

1. Composition scheme for small businesses.

2. Simple and easy online procedure.

3. The number of compliances is lesser.

4. Defined treatment for E-commerce operators.

5. Improved efficiency of logistics.

6. Unorganized sector is regulated under GST

Why GST has been proposed?

Different types of Goods and Service Tax (GST):-

1. Central Goods and Services Tax(CGST):

2. State Goods and Services Tax(SGST)

3. Integrated Goods and Services Tax (IGST):

Documents Required for GST Registration:

3. proof of business registration or Incorporation certificate.

4. Identify and Address proof of Promoter.

5. Address proof of the place of business.

6. Bank Account statement/ Cancelled cheque

8. Letter of Authorization/Board Resolution of Authorized signatory.

Why the split into SGST, CGST, and IGST?

Different types of taxes:-