The document provides a comprehensive analysis of the Goods and Services Tax (GST) in India, highlighting its structure, implementation timeline, and the impacts on various sectors. It discusses the transition from multiple taxation to a unified GST system, including challenges faced by small businesses and the provision for technology support through the Goods and Services Tax Network (GSTN). Key points include the simplification of tax rates, the benefits for consumers, and the complexities arising from GST compliance.

1. ANALYSIS OF GST AND GSTN
Akshay Sharma: 2013IPG-008
Ankit Kumar: 2013IPG-021
Gaurav Singh: 2013IPG-047
Neha Namdeo: 2016MBA-15
ABV- Indian Institute of Information Technology and Management, Gwalior
Submitted to Prof. Rajendra Sahu

2. Introduction
 GST is a single tax on the supply of goods and services, right from the
manufacturer to the consumer. Credits of input taxes paid at each stage will be
available in the subsequent stage of value addition, which makes GST essentially
a tax only on value addition at each stage. The final consumer will thus bear only
the GST charged by the last dealer in the supply chain, with set-off benefits at all
the previous stages.
 GST proposes to abolish the varying levels of taxation between States, and
consider the country as a single whole organism when it comes to taxes on
goods and services instead of as a segmented creature. All the sundry taxes will
be clubbed into just 2 levels – Central GST and State GST.

3. TIMELINE OF GST
1. Constitution of Empowered Committee of State Finance Ministers
February 1986 Finance Minister Vishwanath Pratap Singh proposes a major overhaul of the excise
taxation structure in the budget for 1986-87
2000 Prime Minister Atal Bihari Vajpyee introduces the concept, sets up a committee
headed by the then West Bengal Finance Minister Asim Dasgupta to design a GST
model.
2003 The Vajpayee government forms a task force under Vijay Kelkar to recommend tax
reforms.
2004 : Vijay Kelkar, then advisor to the Finance Ministry, recommends GST to replace the
existing tax regime
February 28, 2006 GST appears in the Budget speech for the first time; Finance Minister P
Chidambaram sets an ambitious April 1, 2010 as deadline for GST implementation.
He says the Empowered Committee of finance ministers will prepare a road map
for GST.
2008 : Empowered Committee of State Finance Ministers constituted.
April 30, 2008 The Empowered Committee submits a report titled ‘A Model and Roadmap Goods
and Services Tax (GST) in India’ to the government
November 10, 2009 Empowered Committee submits a discussion paper in the public domain on GST
welcoming debate.

4. 3. 115th Constitution Amendment Bill in the Lok Sabha for bringing GST
March 22, 2011 : UPA-II tables 115th Constitution Amendment Bill in the Lok Sabha for bringing GST.
March 29, 2011 GST Bill referred to Parliamentary Standing Committee on Finance led by Yashwant Sinha.
Asim Dasgupta resigns, replaced by the then Kerala Finance Minister KM Mani.
November 2012 Finance Minister P Chidambaram holds meetings with state finance ministers; decides to resolve all issues
December 31, 2012 for GST rollout.
February 2013 Declaring UPA government’s resolve to introducing GST, Chidambaram in his Budget speech makes
provision for Rs. 9,000 crore to compensate states for losses incurred because of GST.
August 2013 Parliamentary standing committee submits report to Parliament suggesting improvements on GST. GST Bill
gets ready for introduction in Parliament.
October 2013 Gujarat Chief Minister Narendra Modi opposes GST Bill saying state would incur losses worth Rs. 14,000
crore every year due to GST.
2014 GST Bill cleared by Standing Committee lapses as Lok Sabha dissolves; BJP-led NDA government comes to
power.
2. BJP Opposition
• BJP opposes GST basic structure.
• February 2010: Finance Ministry starts mission-mode computerisation of commercial taxes in states, to lay
the foundation for GST rollout.
• Pranab Mukherjee defers GST to April 1, 2011

5. December 18, 2014 Cabinet approves 122nd Constitution Amendment Bill to GST.
December 19, 2014 Finance Minister Arun Jaitley introduces the Constitution (122nd) Amendment Bill in
the Lok Sabha; Congress objects.
February 2015 Jaitley sets April 1, 2016 as deadline for GST rollout
May 6, 2015 Lok Sabha passes GST Constitutional Amendment Bill.
May 12, 2015 The Amendment Bill presented in the Rajya Sabha
May 12, 2015 Congress demands the Bill be sent to Select Committee of Rajya Sabha; demands
capping GST rate at 18 per cent.
May 14, 2015 The GST Bill forwarded to joint committee of Rajya Sabha and Lok Sabha.
August 2015 Government fails to win the support of Opposition to pass the bill in the Rajya
where it lacks sufficient numbers
July 2016 Centre opposes capping GST rate at 18%; gets states around.
6. Amendment Bill in Rajya Sabha
5. Lok Sabha passes GST Constitutional Amendment Bill
4. 122nd Constitution Amendment Bill to GST

6. 7. August 2016: Congress, BJP agree to pass the Constitution Amendment Bill.
August 3, 2016 Rajya Sabha passes the Constitution Amendment Bill by two-thirds majority.
September 2, 2016 16 states ratify GST Bill; President Pranab Mukherjee gives assent to the Bill.
September 12 Union Cabinet clears formation of GST Council
September 22 Council meets for first time.
November 3 GST Council agrees on four slab tax structure of 5, 12, 18 and 28 % along with an additional cess on luxury and sin.
January 16, 2017 Jaitley announces July 1 as GST rollout deadline. Centre, states agree on contentious issue of dual control and taxing
rights on goods at high sea.
February 18 GST Council finalises draft compensation bill providing to make good any revenue loss to states in first five years of GST
rollout.
March 4 GST Council approves CGST and Integrated-GST bills.
March 20 Cabinet approved CGST, IGST and UT GST and Compensation bills
March 27 Jaitley tables CGST, IGST, UT GST and Compensation bills in Parliament. Lok Sabha and Rajya Sabha pass all the four key
GST Bills — Central GST (CGST), Integrated GST (IGST), State GST (SGST) and Union Territory GST (UTGST).
May 18 GST Council fits over 1,200 goods in one of the four tax slabs of 5, 12, 18 and 28 %. Over 80% of goods of mass
consumption either exempted or taxed under 5% slab.
May 19 GST Council decides on 5, 12, 18 and 28% as service tax slabs.
Jun 21 All states except Jammu and Kashmir pass SGST law.
June 28 Mamata Banerjee announces her party’s decision to skip midnight launch of GST.
June 29 Congress, left too decide to skip launch.
July 1 GST launch

7. IMPACTS:
 TECH :
Positive
GST will eliminate multiple levies.
Negative
IT companies can have several delivery centres and offices working together to service a single contract. With GST, companies
might require each centre to generate a separate invoice to every contracting party. Duty on manufactured goods is going to go
up from existing 14-15% to 18%, which means the cost of electronics from mobile phones to laptops- will rise.
 FMCG:
Positive
Companies could generate substantial savings as the need for multiple sales depots will be eliminated. FMCG companies pay
nearly 24-25% including excise duty, VAT and entry tax. GST at 17-19% could yield significant reduction in taxes.

8. IMPACTS:
TELECOM :
Positive
Handset prices likely to come down/even out across states. Manufacturers are also likely to pass on to consumers cost benefits
they will get from consolidating their warehouses and efficiently managing inventory. For handset makers, GST will bring in ease
of doing business as they may no longer need to set up state specific entities and transfer stocks to them and invest heavily into
logistics of creating warehouses in each state across the country.
Negative
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. Negative for Bharti Airtel, Idea and Reliance Comm.

9. IMPACTS:
AUTOMOBILES
Positive
On-road price of vehicles could drop by 8%, as per a report by Motilal Oswal Securities. Lower prices can be construed as indirect
stimulus to boost volumes. Key beneficiaries: Maruti Suzuki, M&M; Eicher Motors' margins may expand.
Negative
Demand for commercial vehicles may be hit in the medium term. GST will subsume local taxes, reduce time at check-posts, ease
logistics hurdles. With fleet productivity increasing, operators may not feel the need to expand mid-term.
MEDIA
Positive
DTH, film producers and multiplex players are levied service tax as well as entertainment tax, GST will bring major change and
uniformity in businesses. Taxes could go down by 2-4%.
Multiplex chains will save on revenues as there will be a more uniform tax, unlike current high rate of entertainment tax levied by
different states. It may lower the average ticket price, and increase the footfalls in multiplexes.
Negative
Insurance policies: life, health and motor will begin to cost more from April 2017 as taxes will go up by up to 300 basis points.

10. IMPACTS:
AIRLINES
Negative
Flying to become expensive, as service tax will be replaced by GST. Service tax on fares currently range between 6% and 9%
(depending on the class of travel). With GST, the rate will surpass 15%, if not 18%, effectively doubling the tax rate.
Exports:
Exporters worried about new restrictions in using duty credit scrips - The Federation of Indian Export Organisations (FIEO) has
approached the government to reduce the restrictions on using duty credit scrips. A duty credit scrip is an incentive provided by
the government to exporters. It is given to promote exports by providing tax incentives to exporters. It is a pass that allows
holders to import goods by not paying a certain amount in import duties. But with the implementation of GST, the new rules say
that these scrips can now be utilised only for payment of basic Customs duty and not Integrated Goods and Services Tax (IGST).
Manufacturers:
GST is a boost competitiveness and performance in India’s manufacturing sector. Declining exports and high infrastructure
spending are just some of the concerns of this sector.

11. PROBLEMS AFTER GST
Problems for Small Unorganized Wholesalers
 While unorganized cash based small wholesalers were still recovering from the impacts of last
year’s demonetization, GST has further added to their losses. Small shopkeepers and even
dealers are now preferring to buy their daily grocery supplies from GST compliant wholesale
chains like Walmart and Metro cash.
Shopkeepers Struggling with Creating Invoices and Filing Returns
 Small shopkeepers are mainly struggling in creating different invoices for goods with different
GST rates. The confusion is about whether they should make different bills for such products
or mention separate tax information in the same bill. Since they have so many types of items
with different GST categories, it is almost impossible to maintain separate invoices.
How to File GST Return
 The tax return filing procedure under GST is also becoming a major cause of a headache for
small businesses. No one seems to be sure about the appropriate process for filing GST
return. For now, people have to file only one return every month and an annual tax return.

12. PROBLEMS AFTER GST
Variety of Taxes
 Many food retailers, especially Mithai shopkeepers are also confused about how to charge
GST on different items in a single dish. For example, a ‘Mix vegetable’ contains different types
of vegetables and even some fruits and dry-fruits, so whether they should charge different
taxes or a single tax on the dish.
Different Rates for Different Locations
 Since GST is still not implemented completely by every business around the country, the
prices of some products are changing the location.
Non-AC Restaurants Charging GST at 18% Rate
 According to the official GST rules, non-AC restaurants are supposed to levy 12% GST while
AC restaurants will charge 18% GST rate.
GST on Local (GST Exempted) Goods
 According to GST rules, clothing and footwear below Rs. 500 are exempted from GST. But
many shopkeepers, especially retail chains are still mentioning GST rate of 5% in their bills for
such items.

13. REFORMS TO TACKLE:
21st GST Council meet:
 Small cars, hybrid cars and 13-seater vehicles: No change
 Large cars: Tax up by 5 per cent
 SUVs: Tax up by 7 per cent
 Mid-size cars: Tax up by 2 per cent

14. REFORMS TO TACKLE:
• Composition scheme limit to be increased to Rs 1.5 crore (can be extended to Rs 2 crore later).
• 1 % GST rate for manufacturers & traders
• Composition tax of 1% on turnover of taxable goods (turnover of exempted goods to be excluded)
• Those supplying goods and services (services not exceeding Rs 5 lakhs in total) eligible for compositions scheme
• Composition Returns, GSTR-4 due date extended to 24th December
• Composition dealers cannot make inter-state sales. Input tax benefit not allowed.
• All businesses to file GSTR-1 and GSTR-3B till March 2018.
• GSTR-2 and GSTR-3 filing dates for July 2017 to March 2018 will be worked out later by a Committee of Officers
• Turnover under Rs 1.5 Cr to file quarterly GSTR-1
• Turnover above Rs 1.5 Cr to file monthly GSTR-1
• All businesses to file GSTR-3B by 20th of next month till March 2018.
23RD GST Council meet:
Changes in Composition Scheme
Relief in GSTR compliance

15. Status report of GST after 100 days:

16. GSTN

17. GSTN- GST Network
As per the government website on GST, "Goods and Services Tax" Network (GSTN) is
a nonprofit organization proposed to be formed for creating a website / platform
for all the concerned parties related to the GST, namely stakeholders, government
and taxpayers to collaborate on a single portal.
The GSTN will handle:
 Invoices
 Various returns
 Registrations
 Payments & Refunds

18. Registration process

21. Structure of GSTN

22. Leadership Team (GSTN)
Dr. Ajay Bhushan Pandey
Chairman
Dr. Ajay Bhushan Pandey is an officer of Indian
Administrative Service having over 33 years of experience
at various positions in Government of India.
Prakash Kumar
CEO
Dr. Abhishek Gupta
EVP(Support)
Kajal Singh
EVP (Services)
Nitin Mishra
EVP(Technology)
Nirmal Kumar
SVP - Software Development
Col. Pankaj Dikshit
SVP - IT Infrastructure
Vashishtha Chaudhary
SVP (Services)
Rajeev Agarwal
SVP (Outreach and Capability Building)
Pramod B. Somnathe
Senior Vice President (Procurement &
Contracts)
Anand Pande
Senior Vice President (CISO)
Pankaj Sharma
VP - Company Secretary & Chief
Compliance Officer

23. 1 Dr Ajay Bhushan Pandey, Chairman, GSTN, Goods and Services Tax Network.
2 Shri Prakash Kumar, CEO, GSTN, Goods and Services Tax Network.
3 Shri B.N. Sharma, Addl Secretary (Revenue), Department of Revenue, Ministry of Finance.
4 Smt. Meera Swarup, JS & FA, Department of Revenue, Ministry of Finance
5 Shri Nitin K. Jage, General Manager (Taxation) & Company Secretary, LIC Housing Finance Ltd.
6 Shri Bhavesh C. Zaveri, Country Head, Wholesale Banking Operations & Cash Management Products, HDFC Bank Ltd,
7 Shri R. Chandrashekhar, President, NASSCOM International Youth Centre.
8 Shri Anand Sinha, Retired Deputy Governor, RBI
9 Dr. C. Chandramouli, Additional Chief Secretary,Govt. of Tamil Nadu.
10 Shri Arun Goyal, Additional Secretary, GST Council, 5th Floor, Tower-II, Jeevan Bharti Building, Connaught Place, New Dlhi-
110001.
11 Shri S K Panda, Special Secretary & Member (IT), CBEC, Department of Revenue, Ministry of Finance, North Block, New Delhi –
Board Of Directors

24. Salient Features of the GSTN
The GSTN is a complex IT initiative. It will establish a uniform interface for the taxpayer and
also create a common and shared IT infrastructure between the Centre and States.
• Trusted National Information Utility
The GSTN is a trusted National Information Utility (NIU) providing reliable, efficient and robust IT backbone for
the smooth functioning of GST in India.
• Handles Complex Transactions
GST is a destination based tax. The adjustment of IGST (for inter-state trade) at the government level (Centre &
various states) will be extremely complex, considering the sheer volume of transactions all over India. A rapid
settlement mechanism amongst the States and the Centre will be possible only when there is a strong IT
infrastructure and service backbone which captures, processes and exchanges information.

25. • All Information Will Be Secure
The government will have strategic control over the GSTN, as it is necessary to keep the information of all taxpayers
confidential and secure. The Central Government will have control over the composition of the Board, mechanisms
of Special Resolution and Shareholders Agreement, and agreements between the GSTN and other state
governments. Also, the shareholding pattern is such that the Government shareholding at 49% is far more than that
of any single private institution.
• Expenses Will Be Shared
The user charges will be paid entirely by the Central Government and the State Governments in equal proportion
(i.e. 50:50) on behalf of all users. The state share will be then apportioned to individual states, in proportion to the
number of taxpayers in the state.

26. Funding of GSTN
Year Funds released by GoI Actual Expenditure by
GSTN
2013-14 3,03,65,612 3,03,65,612
2014-15 20,00,00,000 13,80,31,415
2015-16 120,93,00,000 45,27,97,027
Total 143,96,65,612 62,11,94,054
The Empowered Committee of State Finance Ministers has, in its meeting held on 30th Aug 2016, approved
the Revenue Model of GSTN which is based on taking commercial loan from a commercial bank for its pre-
operative fund requirement of Rs. 550 crores in FY 2016-17, which includes payments to M/S Infosys, the
Managed Service Provider developing the software and providing required hardware and software licenses.

27. Expenses of GSTN
The major chunk of expenses to be incurred by GSTN consists of payment to Managed Service Provider M/S Infosys
for design and development of GST Systems, supply of all underlying infrastructure, software licenses, bandwidth
and operation and maintenance of GST systems for five years from the go-live date. M/S Infosys was selected by
open tendering process. The second chunk will be on ‘Fraud Analytics Tools’ and team to run the same during
project operation period along with cost of security audit and other program governance functions. The agency to
do this function will be selected through open tendering process. The third component is operating expenses of
GSTN which consists of salary, rent of office building, office expenses, internal IT facilities, etc.

28. GST IT Strategy: Role assigned to GSTN

29. Role of GSTN in Payment of GST by Taxpayers
Under GST, all challans will have to be prepared by taxpayers on the GST portal only. This has been done to ensure that
bank tellers do not enter wrong TIN number from hand written challans as happens sometimes today. Once Challan is
created with GSTIN, name of taxpayer, amount under various tax heads and sub-heads, the taxpayer has following two
options to pay the tax:
1. He can choose online option under which, he will have to choose one of the agency banks (i.e. banks authorized
by RBI to collect GST on their behalf) from the dropdown menu and after that he will be taken to the website of
chosen bank to make payment by providing user ID and password of bank. After completion of payment, he will be
brought back to GST portal from where he can download the paid challan, which is generated by GST System on
confirmation from the Bank.
2. The other option of tax payment is to print the challan and present the same in the relevant bank for ‘Over the
Counter Payment’ (OTC). The bank after realizing the payment will transfer the money to RBI and send
confirmation of payment to GST Portal for accounting.
“No tax money will ever come to GSTN in any manner. GSTN will only get conformation of payment
from the Banks.”

30. Role of GSTN with respect to Filing of Returns
Under GST, there will be common return for CGST, SGST and IGST, eliminating the need to file
separate tax returns with Central and state GST authorities. Checking of claim of Input Tax
Credit (ITC) is one of the fundamental pillars of GST, for which data of Business to Business
(B2B) invoices have to be uploaded and matched. The Common GST Portal created and
managed by GSTN will do this matching on the basis of invoice level data filed as part of
return by all taxpayers. Similar exercise will be done for inter-state supplies where goods or
services will move from the state of origin to the state of consumption and so will the taxes.
The claim of IGST and its utilization will be settled based on returns filed at the Common GST
portal.

31. Role of GSTN with respect to Registration Application
Under GST, the registration of taxpayers will be common under Central and State GST and hence one place of
filing application for the same i.e. the Common GST portal. The application so received will be checked for its
completeness by the GST portal, which will also carry out validation of data like PAN from CBDT, CIN/DIN from
MCA and Aadhaar of promoters, if provided, from UIDAI. After completion of validation, the registration
application will be shared with respective central and state tax authorities. Query of tax authorities, if any and
their final decision will be communicated to GST portal which in turn will communicate the same to the taxpayer.
Access to Data
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

32. Monthly Cycle
The monthly GST cycle to be followed would be as follows:
1 On 10th of subsequent month—Details of outward supply would be filed in Form GSTR 1
2 On 11th—Auto populated purchase details would need to be downloaded in Form GSTR 2A
3 By 15th—GSTR 2A details would need to be validated and uploaded in Form GSTR 2
4 By 17th—Validated details in Form GSTR 1A based on recipient’s filing in Form GSTR 2 would need to be
checked and uploaded
5 On 18th—Auto populated Part A of GSTR 3 with all supply and purchase details would be generated and the
same needs to be downloaded
6 Between 18th and 20th—Tax payment needs to be made
7 By 20th—Once the tax payment challan number is generated, post insertion of the said number in Part B of
GSTR 3, the final return needs to be submitted.

33. Infosys
Infosys was awarded a five-year contract worth Rs. 1,380 crore to develop GSTN in September 2015. Many
technical glitches have been at the core of the GST rollout since July 1 due to which several states had raised
the issues being faced by taxpayers in the 21st GST Council meeting on September 9. Subsequently, a five-
member Group of Ministers (GoM) headed by Bihar’s deputy chief minister Sushil Modi was constituted to
monitor technology-related implementation issues of GST. The GoM held its first meeting in Bengaluru on
September 16 where it identified 27 issues and asked Infosys to sort them.

34. Issues faced by GSTN
A high-powered group of ministers will meet every fortnight to resolve over two dozen technical
glitches identified in the GST tax portal GSTN, the panels head and Bihar Deputy Chief Minister Sushil
Modi has said.
Over 25-odd glitches, which had led to the GST-Network portal crashing on at least two occasions in
the very first month of filing, relate largely to payments and registration. The grouping had extensive
interaction with executives of Infosys, which is providing the IT support for the portal, and businesses
will notice a "lot of difference" on the GSTN portal in the next 7-10 days.
1. Crashes
2. Erroneous Penalty
3. Offline Tool

35. 1. Crashes
Good and service tax Network (GSTN), the only official website for GST enrollment crashes for the second time. The government
allows tax payers to get fresh Registration under GST from 25th June. But the website crashes as soon as the clock struck 12.
Earlier on 15th June too, the website was crashed due to heavy traffic as this was supposed to be the last date for migrating into GST
Regime. Later on, it was communicated that the Enrollment procedure shall be open again from 25th June.
2. Erroneous Penalty
More respite could be on the way small and medium enterprises (SMEs), with the goods and services tax (GST) council set to ease a
string of procedures, including partial relief on penalties on late filing of GST returns. The tax department's proposal, if approved by
the GST Council in its next meeting on November 10 on Guwahati, will lessen the struggles of small businesses still grappling to
understand the nuances of the new indirect tax system that was rolled out from July 1. The idea is that an entity should not end up
paying penalty higher than his tax liability, however, doesn't intend to waive off the entire late fee.
3. Offline Tool
GST Network today said it has launched an offline tool for businesses to quarterly file a form detailing inputs or capital goods sent to
job workers and received back from them. The excel-based offline tool has been made available for preparing and uploading the
statement in form GST ITC-04. The tool can be accessed at 'Download' section of GST portal, GSTN said in a statement.

36. Response of Infosys
“Given the complex nature of the project and rapid change management, there have been several stakeholder
concerns that have also been raised,” Infosys added. “Some of our finest engineers are supporting the GSTN
(GST Network) team as they work towards resolving these and serving all stakeholders.”
Infosys’ statement is in response to a letter from the Confederation of All India Traders (CAIT) urging the
government to initiate a CBI probe on Infosys and other companies for the “poor and dismal performance” of
the GST portal.
“Infosys is very proud to be associated with the prestigious GST project which is the largest tax project of its
kind in the world,” the company said. “The system has already demonstrated success across several
parameters — till date 37 crore invoices have been uploaded on the system while the system is designed to
handle 300 to 320 crore invoices every month. Seventy lakh tax payers have successfully migrated to the new
system and the country has recorded 25 lakh new registered taxpayers.”

37. Statistics
Nearly 37 lakhs GST returns for September have been filed till 1900 hours and 75,000 sales data is
being uploaded on the GSTN portal on hourly basis, its Chairman Ajay Bhushan Pandey said. The
deadline for filing the initial returns in GSTR- 3B for September under the Goods and Services Tax
regime ends midnight yesterday. In an interview to PTI, Pandey said the GSTN system is stable and
has been handling data at just 30 per cent of its capacity with 20 lakh returns being uploaded in
last two days.

38. Since India dealt with a very complex system of VAT and simplifying it is a very tedious task. Every
now and them, policies are formed based on people and businesses grievances. It would take a
while to develop a smooth working system by resolving loopholes time-to-time. Currently,
Government of India and GoM has decided not to extend any more deadlines as it did for July and
August due to the failure of the GSTN but in our view, it will totally depend on the conditions that
would be prevailing in the upcoming months.
CONCLUSION

39. THANK
YOU