4 PROJECT REPORT 4

Submitted for the Degree of B.com Honours in Accounting & Finance

under the University of Calcutta.

STUDY ON
GOODS AND SERVICES TAX(GST)

SUBMITTED
BY: AYUSS KUMAR SONAR
NAME OF THE CANDIDATE
CU REGISTRATION NO.: 121-1111-0046-21
CU ROLL NO. : 211121-21-0011
COLLEGE ROLL NO. : 102

SUPERVISED BY
NAME OF THE SUPERVISOR : DR. S. GANGOPADHYAY
NAME OF THE COLLEGE : CHITTARANJAN COLLEGE

MONTH & YEAR OF SUBMISSION

JUNE-2024

4 4
 Supervisor’s Certificate

This is to certify that MR. AYUSS KUMAR SONAR a student of B.com.

Honours in Accounting & Finance of CHITTARANJAN COLLEGE under the
University of Calcutta has worked under my supervision and guidance for his
project work and prepared a project Report with the title study on Goods and
Services Tax (GST) which he is submitting, is his genuine and original work to
the best of my knowledge.

SIGNATURE: ………………..
NAME:- DR. S. GANGOPADHYAY
NAME OF COLLEGE: - CHITTARANJAN COLLEGE

PLACE
KOLKATA

DATED

1
 Student’s Declaration

I hereby declare that the project work with the title study on Goods and Services
Tax (GST) submitted by me for the partial fulfillment of the degree of B.com.
Honours in Accounting & Finance under the University of Calcutta is my origin
and has not been submitted earlier to any other University/Institution
for the fulfillment of the requirement for any course of study.

I also declare that no chapter of this manuscript in whole or in part has been
incorporated in this report from any earlier work done by others or by me.
However, extracts of any literature which has been used for this report has been
duly acknowledge providing details of such literature in the references.

SIGNATURE:-…………….
NAME: - AYUSS KUMAR SONAR
REGISTRATION NO: - 121-1111-0046-21
ROLL NO: - 211121-21-0011

PLACE
KOLKATA

DATE:-

2
 ACKNOWLEDGEMENT

I express my thanks towards my professors and faculty members of

“CHITTARANJAN COLLEGE”, Department of Commerce. A Debt gratitude
towards my guide, DR. S. GANGOPADHYAY,for patiently hearing me out and
for giving valuable inputs on my research project.

I would like to make special thanks to my teachers, without whose blessings, this
project would not be possible.

3
 content
PAGE

SL.NO. PROJECT
CONTENT NO .
. I. SUPERVISOR’S CERTIFICATE 1
II. STUDENT’S DECLARATION 2
III. ACKNOWLEDGEMENT 3
IV. CONTENT 4
V. CHAPTER 1- INTRODUCTION TO GOODSAND SERVICES TAX(GST) 5-12
VI. CHAPTER 2- IMPACT OF GST ON INDIAN ECONOMY 13-16
VII. CHAPTER 3-REGISTRATION UNDER GST 17-22
VIII. CHAPTER 4-AN IN-DEPTH ANALYSIS OF GST COLLECTIO
AND REVENUE DISTRIBUTION IN INDIA 23-28
IX. CHAPTER 5-CONCLUSION 29-30
X. CHAPTER 6-BIBLIOGRAPHY 31-32

4
 CHAPTER 1

INTRODUCTION
TO GOODS
AND SERVICES
TAX
(GST)
1.What Is GST:

GST is a tax on goods and services with comprehensive and continuous chain of
set-off benefits up to the retailer level. It is essentially a tax only on value
addition at each stage, and a supplier at each stage is permitted to set-off,
through a tax credit mechanism, the GST paid on the purchase of goods and
services. Ultimately, the burden of GST is borne by the end-user (i.e. final
consumer) of the commodity/service
With the introduction of GST, a continuous chain of set-off from the original
producer’s point and service provider’s point up to the retailer’s level has been
established, eliminating the burden of all cascading or pyramiding effects of an
indirect tax system. This is the essence of GST. GST taxes only the final
consumer. Hence the cascading of taxes (tax-on-tax) is avoided and production
costs are cut down.
As already noted, prior to the introduction of GST, the indirect tax system of
India suffered from various limitations. There was a burden of tax-on-tax in the
pre-GST system of Central excise duty and the sales tax system of the States.
GST has taken under its wings a profusion of indirect taxes of the Centre and
the States. It has integrated taxes on goods and services for set-off relief.
Further, it has also captured certain value additions in the distributive trade.
There is now a continuous chain of set-offs which would eliminate the burden
of all cascading effects.
Presently, services sector in India constitutes a tax base with vast potential
which has not been exploited as yet. It is in this context that GST is justified as
it has subsumed under it almost all the services for the purpose of taxation.
Since major Central and State indirect taxes have got subsumed under GST, the
multiplicity of taxes has been substantially reduced which, in turn, would
decrease the operating costs of the country’s tax system. The uniformity in tax
rates and procedures across the country will go a long way in reducing
compliance costs.
In a nutshell, GST is a comprehensive indirect tax levy on manufacture, sale and
consumption of goods as well as services at the national level. GST is an
indirect tax for the whole of India to make it one unified common market. GST
is designed to give India a world class tax system and improve tax collections. It
would end the long-standing distortions of differential treatment of
manufacturing sector and services sector. GST will facilitate seamless credit
across the entire supply chain and across all States under a common tax base.

6
2.Evolution of GST in India:

In 2000, the Vajpayee Government started discussion on GST by setting up an Empowered Com-
mittee, headed by Asim Dasgupta (West Bengal Finance Minister) to design the GST model. There-
after, the Task Force on Implementation of the Fiscal Responsibility and Budget Management Act,
2003 (Chairman: Vijay Kelkar) recommended the removal of all inefficient and distortionary taxes so
that India obtains the efficiencies of a single national tax, and suggested a comprehensive GST based
on VAT principle. The idea of moving towards a GST was proposed in 2005 by the then Union Finance
Minister, P. Chidambaram in his budget speech for the year 2005-06 where he observed that the
entire production-distribution chain should be covered by a goods and services tax that encompasses
both the Centre and the States. He reiterated his idea in 2006-07 budget speech and proposed April
1, 2010 as the date for introducing GST. Towards this objective, an Empowered Committee (EC) of
State Finance Ministers was to work with the Central Government to prepare a roadmap for
introduction of GST. The final version of the report of EC was presented in the form of ‘A Model and
Roadmap for Goods and Services Tax in India’ on April 30, 2008.
After receiving comments on the report from Government of India and concerned officials of the
State Governments and taking into account their recommendations, the EC released the First
Discussion paper on Goods and Services Tax in India on November 10, 2009 to obtain the inputs of
industry, trade bodies, and people at large. On 22nd March 2011, the Constitution (115th
Amendment) Bill was introduced in the Lok Sabha to operationalize the GST and enable Centre and
States to make laws for levying of GST. However, the Bill lapsed with the dissolution of the 15th Lok
Sabha. There-after, on 19th December, 2014 the Constitution (122nd Amendment) Bill, 2014 was
introduced in the Lok Sabha to address various issues related to GST. It is noteworthy that the
introduction of GST required a Constitutional amendment as the Constitution did not vest express
power either in the Central Government or State Government to levy tax on the ‘supply of goods and
services’. While the Centre was empowered to tax services and goods up to the production stage, the
States had the power to tax sale of goods. Since the GST regime requires goods and services to be
simultaneously taxed by both the Central and State Governments, a Constitutional amendment was
needed.
The Constitution (122nd Amendment) Bill, 2014 was passed by the Lok Sabha on 6th May, 2015 after
which the Rajya Sabha passed the Bill with 9 amendments on 3rd August, 2016. The Lok Sabha then
passed the modified Bill on 8th August, 2016. After getting approval of half of the States, it was sent
to the President for his assent which was given on 8th September, 2016. Thus the road to GST rollout
was cleared and the process of enactment was completed.

7
3.Salient Features of GST in India:

The salient features of GST in India have been highlighted below:

1. Supply as the base: GST would be applicable on “supply” of goods or services as against
the erstwhile concept of tax on the manufacture of goods or on sale of goods or on provision
of services.
2. Destination-based tax: As opposed to the previous principle of origin-based taxation, GST
would be based on the principle of destination-based consumption taxation.
3. Dual GST: The Centre and the States would simultaneously levy tax on a common base.
The GST to be levied by the Centre would be called Central GST (CGST) and the GST to be
levied by the States (including Union territories with legislature) would be called State GST
(SGST). Union territories without legislature would levy Union territory GST (UTGST).
4. Inter-State supply: An integrated GST (IGST) would be levied on inter-State supply of
goods or services. This would be collected by the Centre so that the credit chain is not
disrupted. Imports of goods and services would be treated as inter-State supplies and would
be subject to IGST. (This would be in addition to applicable customs duties).
5. Central taxes subsumed: GST would subsume the following taxes that were levied and
collected by the Centre: Central excise duty; Additional duties of excise; Additional duties of
customs (commonly known as countervailing duty); special additional duty of customs (SAD);
service tax; and cesses and surcharges insofar as they relate to supply of goods or services.
6. State taxes subsumed: GST would subsume the following taxes that were levied and
collected by the State: State VAT; Central Sales Tax; purchase tax; luxury tax; entry tax;
entertainment tax (except those levied by the local bodies); taxes on advertisements; taxes
on lotteries, betting and gambling; and State cesses and surcharges insofar as they relate to
supply of goods or services.
7. Applicability: GST would apply to all goods and services except alcohol for human
consumption. GST on five specified petroleum products (crude, petrol, diesel, aviation
turbine fuel, natural gas) would be applicable from a date to be recommended by the GST
Council.
8. Threshold for GST: A common threshold exemption would apply to both CGST and SGST.
Taxpayers with an annual turnover of ` 20 lakh (` 10 lakh for special category States (ex-cept
J&K) as specified in article 279A of the Constitution) would be exempt from GST. A
compounding option (i.e. to pay tax at a flat rate without credits) would be available to small
taxpayers (including to manufacturers other than specified category of manufacturers and
service providers) having an annual turnover of up to ` 1 crore (` 75 lakh for special category
States (except J&K and Uttarakhand) enumerated in article 279A of the Constitution). The
threshold exemption and compounding scheme is optional.
9. Exports: All exports and supplies to Special Economic Zones (SEZs) and SEZ units would be
zero-rated.
10. Input tax credit: Credit of CGST paid on inputs may be used only for paying CGST on the
output and the credit of SGST/UTGST paid on inputs may be used only for paying SGST/
UTGST. In other words, the two streams of input tax credit (ITC) cannot be cross utilized,
except in specified circumstances of inter-State supplies for payment of IGST. (For details, see
the Chapter on Input Tax Credit).

8
4.Proposed benefits of GST:

The implementation of GST is expected to bring in various benefits as discussed below:

1. Dynamic common market: GST would make India a dynamic common market and result in
generation of positive externalities. By ensuring uniformity of indirect tax rates across the
country, it will substantially improve the ease of doing business.
2. Elimination of cascading effect: Under GST, provision of seamless input tax credit across
transactions will avoid tax cascading, eliminate double taxation and improve resource
allocation.
3. Efficiency: Subsuming of all major indirect taxes will result in the removal of inefficient
taxes. With as single tax to be paid, manufacturers will become more competitive and this
could lead to growth in exports.
4. Reduced compliance costs: Harmonisation of tax rates and laws along with seamless input
tax credits and a sound IT infrastructure is expected to lead to reduced compliance costs. As
all the taxpayer services like registrations, payments, returns etc. will be available online, the
compliance process would become simpler.
5. Reduction in tax evasion: Uniform rates of taxation would reduce the incentive for tax
evasion by eliminating rate arbitrage opportunities between neighbouring states and that
between intra-State and inter-State sales.
6. Improved collection efficiency: GST is also desirable from the point of view of tax policy
and collection. Even if the taxes are lowered, the revenue of the Union and the states is
expected to be buoyant due to less evasion. A single rate across all goods and services will
eliminate classification disputes and make tax assessment more predictable. Harmonisation
of tax assessment, levy and collection procedures across states will reduce compliance costs,
limit evasion, enhance transparency and improve collection efficiency.
7. Revenue generation: By controlling tax leakage from the system and having a wider base,
GST would generate more tax revenues for both the Central and State Governments.
8. Encourages savings and investment: As GST is a tax on consumption and not on income,
so the tax system inherently encourages savings and investments instead of consumption.
Further, input tax credit would lead to a decrease in the cost of capital goods and provide
boost to investments.
9. Improved efficiency of logistics : Due to GST implementation, the restriction on inter-State
movement of goods is likely to be lessened and the logistics sector is anticipated to start
consolidating warehouses across the country. In the erstwhile indirect tax structure,
decisions related to logistics and distribution centres were based on tax considerations as
opposed to operational efficiency. With GST in place, these decisions will now be based on
operational efficiency and warehouses would be set up at locations that would help in
reaching customers faster and reduce costs.
10. Regulation of the unorganized sector : For a large unorganized sector that exists in
business, GST has provisions for online compliances and payments, and availing of input
credit only when the supplier has accepted the amount, thereby bringing accountability and
regulation to these businesses.

9
5.ADVANTAGES OF GST:
1.Simplification of Tax Structure: GST replaces multiple indirect taxes with a single tax,
streamlining the tax structure and making compliance easier.
2.Elimination of Cascading Effect: GST is a value-added tax that is levied only on the value
added at each stage of production, thus eliminating the cascading effect of taxes.
3.Wider Tax Base: GST aims to bring more businesses under the tax net, increasing tax
revenues for the government.
4.Promotion of Transparency: GST is a transparent tax system with online registration, filing,
and payment processes, reducing tax evasion.
5.Boost to GDP: By promoting ease of doing business and reducing tax burden on
businesses, GST can contribute to economic growth.

6.DISADVANTAGES OF GST:

1.Initial Implementation Challenges: Transitioning to GST can be complex and time-

consuming, especially for businesses accustomed to the previous tax regime.
2.Impact on Small Businesses: Compliance costs may disproportionately affect small
businesses, especially in the initial phases of GST implementation.
3.Possible Inflationary Pressures: The introduction of GST can lead to temporary inflationary
pressures as businesses adjust to the new tax rates and pass on increased costs to
consumers.
4.Complex Tax Structure: Despite its aim to simplify the tax system, GST can still be complex
due to multiple tax rates and exemptions.
5.Potential Revenue Loss for States: States may face revenue loss in the short term due to
the shift from state taxes to GST, leading to concerns about fiscal autonomy.

10
7.THE FOUR TIER TAX STRUCTURE OF GST:
The Goods and Service Tax in India is organized in such a way that all the necessary services and
some food items are placed in the lowest bracket, and the other luxury goods and services and de-
merit goods are placed in the highest bracket.
The GST council has set the four-tier structure at 0%,5%,12% and 18% and 28%.The Government
has decided in an attempt to keep inflation in check to exclude essential items such as basic food
commodities from tax. However, a 5% tax will be applicable for common commodities. Most of the
standard services will fall under the 12%, and 18% tax slab and the luxury items will fall under the
28% slab.

The Four-Tier Tax Structure

 Nil rate Rate
 Lower Rate
 Standard Rate
 Higher Rate

 NIL Rate (0%)

Under this category, the GST council has decided to exempt or not charge any taxes on a few of
the basic commodities. Most of the items in the Consumer Price Index (CPI) comes under the zero
rate. Basically, in simple words, no GST will be charged on these goods.

The following items stated below are some of the GST-Exempted Goods:

 Raw vegetables including potatoes, onions, and various leguminous vegetables, etc
 Live animals such as sheep, goats, live poultry, birds, bird’s eggs in the shell, fresh fish
 Wheat, corn, maize, cereal grains, soybeans that have yet to put into containers
 Human blood and various components of the same
 Fresh ginger, melon, roasted coffee beans, unprocessed green tea leaves, etc.
  Raw materials such as raw silk, silk waste, khadi fabric, khadi yarn, charcoal, firewood,
handloom fabrics and wool (not processed).
 Tools and instruments such as hearing aids, spades, shovels, tools used in agricultural
purposes, handmade musical instruments, etc.
11

*There are many more products that are exempted from GST and the products mentioned above
are just an indication of some of the products that qualify for zero GST.

 Lower Rate (5%)

Under this slab, a 5% rate will apply to most of the common commodities and services.
This mainly includes the rest of the items under the Consumer Price Index and the mass
consumption products. Some of these items are-frozen vegetables, coffee, tea, rail tickets,
economy air tickets, takeaway food, fertilizers, etc.

 Standard Rate (12% and 18%)

Most of the goods and services come under this slab. To keep inflation in check, the
government has decided to keep two standard rates for the products and services. The
12% slab consists of -butter, cheese, handbags, jewelry boxes, cellphones, frozen meat,
business class air tickets, movie tickets priced under ₹100, etc. Some of the items under
the 18% slab are-pasta, pastries, cakes, vacuum cleaners, hairdryers, panels, wires, IT
services, telecom services, etc.

 Higher Rate (28%)

More than 200 products will come under the 28% tax slab. This mostly consists of luxury
products. Some of these items include-pan masala, paint, cement, automobile, washing
machine, shampoo, sunscreen, motorcycles, aerated water, etc. For some of the products
under the 28% slab category, an additional cess has been fixed by the government.

8.TYPES OF GST:
I. Central Goods and Services Tax (CGST).

II. State Goods and Services Tax (SGST).

III. Integrated Goods and Services Tax (IGST).

IV. Union Territory Goods and Services Tax (UTGST).

 CHAPTER 2

IMPACT OF GST
ON
INDIAN ECONOMY

13
1.IMPACT OF GST ON INDIAN ECONOMY:
 It may increase the flow of FDI.
 GST will increase the government's revenue in the long.
 A single tax would help in lowering the final selling price for the consumer.

 GST will facilitate ease of doing business in India.

 It will reduce the cost of tax compliance and transaction cost.
 It will create more employment opportunities.
 GST would append to government revenues by widening the tax base.

 Uniformity in tax laws will lead to single point taxation for supply of goods or services all
over India.
 It will also reduce litigation and waste of time of the judiciary and the assessee due to
frivolous proceedings at various levels of adjudication and appellate authorities.
 Reduce tax burden on producers and build a fire under growth at the hand of more
production. This replicate taxation prevents manufacturers from producing to their
optimum capacity and retards growth.
 There will be more transparency in the system as the customers would know exactly how
much taxes they are being charged and on what base.
 GST would also help in removing the custom duties on exports. Our
competitiveness in foreign markets would increase on account of lower cost of
transaction.

14
2.GST IMPACT ACROSS SECTORS:
TECH
GST will eliminate multiple levies. It will also allow deeper penetration of digital
services.
Duty on manufactured goods will increase from 14-15% to 18%, so electronic products
would be expensive.

FMCG

Companies could stir substantial savings in logistics and distribution costs as requirement
for countless sales depots will be eliminated. FMCG companies have to pay around 24-
25% tax and GST would help in reduction of tax. Reduction of overall tax rates, is
expected to generate saving.

ECOMMERCE
GST will help create a single unified market across India and allow free movement and
supply of goods in every part of the country. It will also eliminate the cascading effect of
taxes on customers which will bring efficiency in product costs. It may increase the
workload for ecommerce firms and push up costs.

TELECOM
Handset prices likely to come down/even out across states. Manufacturers are further
likely to come through with flying colours on to consumers charge benefits they will earn
from consolidating their warehouses and efficiently managing inventory. For handset
makers, GST will require ease of doing job as they take care of no longer require to
strengthen state adamant entities and relinquish stocks to them and invest heavily into
logistics of creating warehouses in each state across the country.
Call charges, data rates will go up if tax rate in the GST regime exceeds 15%. Tower
firms won't be able to set off their input duty liabilities if petro-products continue to stay
outside GST framework.

AUTOMOBILES

On road price of vehicles could drop by 8%. Lower price can be construed as indirect
stimulus to boost the volume. The demand for commercial vehicles may increase. GST
will help in reducing the time at check-posts, and will ease logistics hurdles. With fleet
productivity increasing, operators may not feel the need to expand the midterm.

15
MEDIA
Service tax and entertainment tax are levied on DTH, film producers and multiplex
players. GST will captivate major critical point and dreariness in businesses. Taxes could
go down by 2-4%. Multiplex chains will amass on revenues as there will be in a superior
way uniform load, unlike current high outlay of entertainment thorn in one side levied by
different states. It may lower the average ticket price and increase the footfalls in
multiplex. GST will be a carrying a lot of weight boon to silver screen producers and
studios that currently conclude service tax on most of their charge, as they fall under the
negative list. Under GST, they will be able to claim credit of these services also, which
will help is lowering the overall cost.Insurance policies: life, health and motor will begin
to cost more from April 2017 as taxes will increase..

AIRLINES
Airlines may become expensive, as service tax will be replaced by GST. Earlier service
tax on air tickets were 5.6% on economy class and 8.4% on business class . Now rate of
GST on economy class would be 5% and 12% on business class.

CEMENT

Currently tax rates on cement are 27% - 32% but GST will bring down the rate to 18-
20%. It will help in reduction in logistics costs. India is second largest producer of
cement in the world.

16
 CHAPTER 3

REGISTRATION
UNDER GST

17
1.INTRODUCTION:

Registration is the most fundamental requirement for identification of taxpayers

ensuring tax compliance in the economy. Without registration, a person can neither
collect tax from his customers nor claim any input tax credit of tax paid by him.

Registration of any business entity under the GST Law implies obtaining a unique number
from the concerned tax authorities for the purpose of collecting tax on behalf of the
government and to avail input tax credit for the taxes on his inward supplies.

2.ADVANTAGES OF REGISTRATION:
The following are advantages to a taxpayer who obtain registration under GST:

(i) He is legally recognized as supplier of goods or services or both.

(ii) He is legally authorized to collect taxes from his customers and pass
on the credit of the taxes paid on the goods or services supplied to
the purchasers/recipients.
(iii) He can claim Input Tax Credit of taxes paid and can utilize the same
for payment of taxes due on supply of goods or services.
(iv) Seamless flow of Input Tax Credit from suppliers to recipients at the
national level.
(v) Registered person is eligible to apply for Government bids or
contracts or assignments.
(vi) Registered person under GST can easily gain trust from customers.

18
3.SPECIAL CATEGORY STATES UNDER GST:

As per Explanation (3) of Section 22 of CGST act 2017, ” special category

States ” shall mean the States as specified in sub-clause (g) of clause (4) of
article 279A of the Constitution. List of which is as follows: –

1. Arunachal Pradesh

2. Assam

3. Jammu & Kashmir

4. Manipur

5. Meghalaya

6. Mizoram

7. Nagaland

8. Sikkim

9. Tripura

10. Himachal Pradesh

11. Uttarakhand

Note:

(1) Registration is required if the aggregate turnover exceeds ` 10 Lakhs in

case of special category States except Jammu & Kashmir. It means person
located in Jammu & Kashmir may enjoy the benefit of minimum threshold
limit of ` 20 lakh.

(2) The small businesses, having turnover below the threshold limit can,
however, voluntarily opt to register.

19
4.PERSONS NOT LIABLE FOR REGISTRATION:

 Sec 23(1)(a): Any person engaged exclusively in the business of

supplying of goods or services or both they are not liable to tax or
wholly exempt from tax under CGST or IGST.

 Sec 23(1)(b): An agriculturist, to the extent of supply of produce out of

cultivation of land.

 Sec. 23(2): The Government may, on the recommendation of the GST

Council.

5.COMPULSORY REGISTRATION IN CERTAIN CASES:

Sec. 24: the following categories of persons shall be required to be registered under GST:

i. Person making any inter-state taxable supply;

ii. Causal taxable persons making taxable supply;
iii. Person who are required to pay tax under reverse charge;
iv. Person who are required to pay tax under sec. 9(5) of CGST (i.e. Electronic
Commerce Operator);
v. Non-resident taxable person making taxable supply;
vi. Persons who are required to deduct tax under Sec 51, whether or not separately
registered under this Act;
vii. Persons who make taxable supply of goods or services or both on behalf of other
taxable person whether as an agent or otherwise;
viii. Input Service Distributor, whether or not separately registered under CGST;
ix. Persons who supply of goods or services or both, other than supplies specified
under Sec 9(5), through such electronic commerce operator who is required to
collect tax at source under Sec 52;
x. Every electronic commerce operator;
xi. Every person supplying online information and database access or retrieval
services from place outside India to a person in India, other than a registered
person; and
 xii. Such other person or class of persons as may be notified by the Govt. on the
recommendation of the Council.
20
6.PROCEDURE FOR REGISTRATION:

Registration Procedure under GST [u/s 25 of CGST]:

Every person who is liable to be registered shall apply for registration within 30 days from
the date on which he becomes liable to registration, before applying for registration declare
his
1. Legal name of business,
2. PAN,
3. Mobile number,
4. e-mail address,
5. State or Union territory
in Part A of Form GST REG -01 on Common Portal.
On successful verification of these numbers, a reference number will be generated.
Applicant shall submit Part B of Form GST REG-01, duly signed, along with documents
specified in the said Form at the Common Portal. Form GST REG – 02: Acknowledgement of
Application If these documents are found to be in order, the Proper Officer shall approve the
registration within 3 working days from the date of submission.

7.DEEMED REGISTRATION:

If the Proper Officer fails to take action in 3 working days from the date of submission, the
registration is deemed to have been approved.
The Proper Officer is satisfied with the clarification; he may approve the grant of registration
to the applicant within 7 working days on receipt of such clarification.
If no reply is furnished by applicant in response to notice issued or Proper Officer is not
satisfied with the clarification, he shall reject such application with reasons in writing and
inform the applicant in Form GST REG-05.
Where no action is taken in 7 working days on the clarification received from the applicant,
the registration is deemed to have been granted.

8.Certificate of Registration:

Certificate of registration shall be granted in Form GST REG-06.

Certification of registration contains Goods and Service Tax Identification Number (GSTIN):
• Two characters for the State code
• Ten characters for the PAN
• Two characters for the entity code; and
• One checksum character

9.CANCELLATION OF REGISTRATION:

Cancellation of GST Registration [Section 29 of the CGST Act, 2017]:

The following persons are allowed to cancel GST registration:
o The registered person himself
o By a GST officer
o The legal heir of the registered person

22
 o

CHAPTER 4

AN IN-DEPTH
ANALYSIS OF GST
COLLECTION AND
REVENUE
DISTRIBUTION IN
INDIA
23
1.GST Collection - Trends

The presented chart offers a comprehensive view of the GST collection trends of the
Indian Government since the fiscal year 2018. It is meticulously designed to
encompass three critical dimensions of analysis:

a) Yearly Trends: This aspect traces the annual progression of GST collections,
providing insights into the broader fiscal patterns and economic health over the years.

b) Monthly Trends: By breaking down the data month-by-month, this dimension

offers a granular view of GST collections, highlighting seasonal variations and short-
term fluctuations in revenue.

c) Month-on-Month Growth: This comparison with the corresponding month of the

previous fiscal year furnishes a perspective on the growth trajectory of GST
collections. It allows for an assessment of the government's revenue performance in a
year-over-year context.

Overall, the chart serves as a valuable tool in understanding the dynamics of GST
revenue generation, reflecting both the stability and volatility in government
collections across different time frames (excluding data on cess on imported
goods).

24
2.Analysis:-
The GST collection data for the Government of
India reveals a significant upward trajectory since
FY22. The fiscal year 2022 saw an impressive
growth of 23.6%, which was closely followed by a
21.8% increase in FY23. Currently, with a steady
monthly growth rate hovering between 10 to 15%,
projections suggest that the collections could
reach approximately Rs 5 lakh crore in the next
three months of the current financial year. This
would culminate in a total collection nearing Rs
20 lakh crore, marking an 11.3% growth
compared to the previous fiscal year.
Moreover, a closer examination of the chart
highlights a distinct pattern in the GST collections.
Typically, there is a noticeable spike at the
beginning of each fiscal year, which then
transitions into a phase of steady growth.
Following this initial surge, the collection figures
gradually stabilize, settling at more moderate
levels. This cyclical pattern underscores the
dynamism inherent in the GST collection trends,
influenced by various economic factors and
seasonal variations.

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GST Collections - State Wise Breakup

Below is the GST collection trends broken down by various states.

The data is aggregated till Oct 23.

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3.Analysis:-
The data in the above table reveals a critical insight: the top 10 states
are responsible for 76% of the total GST collections. It's important to
note that these figures do not encompass GST collected on imports,
which accounts for approximately 26% of the total revenue. To
illustrate, in FY 2023, out of the total GST collections of Rs 17.97 lakh
crore, Rs 13.25 lakh crore were amassed domestically from states,
while the remaining Rs 4.72 lakh crore originated from import-related
collections. The rising volume of imports has notably bolstered the
GST revenue from this segment, as is evident from the subsequent
figure. This trend underscores the significant contribution of
import-based GST to the overall fiscal landscape, complementing
the domestic GST collections.

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Central Government's Share in GST Collections

Our analysis focuses on the Central Government's portion of GST

collections. Utilizing data from the Controller General of Accounts
(CGA), as depicted in the accompanying figure, we gain insights into
the Central Government's tax revenue trends.

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 CHAPTER 5

CONCLUSION

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CONCLUSION

The implementation of GST has given a positive notion in 150

countries across the world and it will give a positive impact on the
Indian service sector. It will increase the GDP undoubtedly but it will
take some years to show the effect because economic growth may not
jump immediately, but its beneficial for the economy of the country.
So, we can conclude by stating that the execution of GST will give
relief to the producers and consumers by giving them input tax credit
setoff.

Good and services tax likely bring balance to government

empowerment. The malicious activity of not paying the tax will go
away under this regime so that both Government, as well as
consumers, can take profit. This helps the Indian economy to become
stronger and more stable.

With the reduction in tax rates on various goods and services, the cost
of various goods and services has been reduced. Thus, making the
products affordable, and this has led to an increase in demand, which
in turn would increase in production and hence will make the
economy grow faster. Also, by placing the demerit goods in the
highest tax slab, 28% GST council has focused on discouraging the
consumption of such sin goods so as to make India a better place to
live.

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 CHAPTER 6

BIBLIOGRAPHY

31
 BIBLIOGRAPHY

This project has been done with the help of different

books,magazines,journals and websites.My supervisor
has also suggest some suggestions. I visited many sites
and followed many journals like :-

www.slideshare.net

www.legalserviceindia.com

www.paragkar.substack.com

www.okcredit.in

www.infinitycompliance.in

www.blog.saginfotech.com

www.cleartax.in

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