The document is a project report on Goods and Services Tax (GST) by Vishnu and Dharminder from Army Public School Dhaula Kuan, guided by Mrs. Rosy Sony. It covers various aspects of GST, including its history, implementation, types, advantages, and disadvantages, along with the impact on the Indian economy and commodities. Key findings indicate that while GST will streamline taxation and reduce costs for many goods, it may also result in higher prices for certain services and products.

1. ARMY PUBLIC SCHOOL
DHAULA KUAN
project on
GST(Goods and Services Tax)
Submitted to: Submitted by:
MRS. ROSY SONY Vishnu, Prince

2. She has been a source of inspiration for me and she
helped me in understanding and remembering importance
and necessary details of the project.
I would also like to thanks my parents and friends who helped
me a lot in this project and motivated me a lot.
I would also like to thank god for giving me such wonderful
guides who keep on guiding me at every moment whenever I
need them.
ACKNOWLEGEMENT

3. Certificate
This is to certify that Vishnu, Prince and
Dharminder of class XI-H Commerce of Army
Public School Dhaula kuan , has completed her
project under the guidance of Mrs. Rosy Sony , her
economics teacher. She has taken proper care and
has shown utmost sincerity in the completion of
this project. I certify that this project is up to my
expectations and as per the guidelines issued by
CBSE

4. Index
• My aims and objectives
• Introduction
• Meaning and definition
• History of GST
• Reasons for implementation
• Proposed tax Structure in India
• Types of GST
• Why is GST Necessary in India?
• Features of GST
•GST Advantages
•Problems in implementation
• GST disadvantages
• How is GST applied?
• GST rates
• Things to get cheaper
• Things to get costlier
• Conclusion
• Bibliography

5. My Aim and Objective
To study and understand the concept of GST.
To learn about the effect of GST on different sectors of the economy.
To gain knowledge about the effects on the prices of different
commodities after the introduction of GST.
To know the advantages and disadvantages of GST.
To gain knowledge about which products fall under GST and what are
the different GST rates.
To learn about the long-term and short-term impact on the economy.
To learn about the different taxes that the different countries had
adopted.

6. Introduction:
Goods and service tax in India is set to be implemented from 01/04/2016
It empowers the state government to levy the
state tax on Value Added Tax (VAT) on sales of
goods. This exclusive division of fiscal powers has
led to a manipulation of indirect tax in the country.
one of the biggest taxation reforms in India -- the goods and services
TAX (GST )-- is all set to integrate state economies and boost overall
growth
GST will create a single unified Indian market to make the economy
stronger.

7. Meaning and Definition
GST is set to become one of the biggest financial reform that our country has
witnessed.
GST is a comprehensive tax levied on the manufacture, sale, and
consumption of goods and services at the national level under which no
distinction is made on goods and services by central and state government in
India.
GST is a tax on goods and services under which every person is liable to pay
tax on his output and is entitled to get Input Tax Credit (ITC) on its input (a tax
on value addition only) and ultimately the final consumer shall bear the tax.
GST is a Canadian value-added tax levied on the sale of domestic
consumption.

8. It has streamlined all the different types of indirect taxes
and implements a single taxation system.
This single taxation system is GST. The main Meaning and
Definition purpose accomplished by the implementation
of GST is the abolition of all other indirect taxes prevailed
earlier, we can also say that all those taxes trap had finally
come to an end with only one indirect tax in the country
called GST.
It is the collaboration of all taxes within a new name
which replace all indirect tax rate with a new and single
rate taxation system

9. History of GST
The president of India approved the Constitutional Amendment Bill for Goods
and Services Tax (GST) on 8th September 2016 following the bill's passage in
the parliament and its ratification by more than 160 countries who have
adopted some forms of GST.
The following taxes are bounded by GST: - • Central excise duty • Service tax
and commercial tax • Value added tax and food tax • Central state tax and
entertainment tax • Purchase tax and luxury tax • Octroi, advertisement tax and
lottery tax GST levied on all transactions which means taxation system is
administered by both state and union government.
Transactions are made within a single state will be levied with CGST and SGST.
The Government of that state for History of GST intrastate transactions and
imported goods and services are integrated GST (IGST) be levied.

10. It complicated the tax collection by the state due to the
rebate. IT sector infrastructure also rebate.
This was proposed by SHRI SANTOSH KUMAR, minister of state
in the Ministry of Finance in a written reply to a question in Rajya
Sabha.
At the end of the day, GST comes out with a better result as it will
reduce the cost of production and inflation in the economy both
domestically and internationally and contribute to significant
growth of Indian economy.
This was all about the history of GST...

11. Reasons for GST
implementatION OF GST
• There was no uniformity of tax rates and structure across
states.
• There is a cascading of taxes due to "Tax on Tax". No credit
excise duty and service tax are paid at the state of
manufacture are available to the traders while paying the
state level sales tax or VAT.
• No payment of state taxes speed in one state can be
reimbursed in other states. Hence the prices of goods set
artificially inflated to the extent of "Tax on Tax".

13. Types of GST
There are three kinds of taxes under the GST. They
are: -
1. SGST: - State Goods and Services Tax is a part of a tax
diverted to the state which is credited by the revenue
department of the state government. This is generally
equivalent to GST. In the case of local sales, 50%
quantum of tax amount under GST is diverted to SGST
tax.

14. 2. CGST: - Central Goods and Services Tax is
all the goods tax diverted to revenue
department of Central Government. This
share of the tax compensates the loss of
existing excise duty and service tax to
the Central government. In the case of
local Types of GST sales, balance i.e.
50% quantum of GST is transferred to
CGST.

15. 3. IGST: - Integrated Goods and
Services Tax is levied under interstate sales
and purchase is made. One part of this tax
transferred to the central government and
other to the state government to whom
goods and services belong. The IGST is the
separate tax which is charged only in case of
interstate sales or when transactions
between two states are issued.

17. Features of GST
• Dual Good and Services Tax: The functioning of CGST
and SGST has helped a lot to the economy.
• Interstate transactions and IGST mechanism: The center
would levy and collect the Integrated Goods and Services
Tax on all interstate supply of goods and services. IGST
mechanism has been signed to ensure seamless goods flow
from one state to another. The interstate seller would pay
IGST on the sale of his goods to the central government.

18. After adjusting credit of IGST, CGST, and SGST on his
purchases in that order. The exporting state will transfer to
the Center. The credit of SGST used in payments of IGST.
The importing dealer will claim a credit of IGST while
discharging his content tax liability (both CGST added GST
of state) in his own state. The center will transfer to the
importing state, the credit of IGST used in payment of
SGST.
• Destination-based consumption tax: GST will
be a destination-based tax. This implies that all
SGST collected will ordinarily occur to the state
where the consumer of goods and services sold
resides.

19. • Consumption of GST: on the basis of Invoice
Credit Method: The liability under the GST will
be invoice credit method i.e. credit will be
allowed on the basis of the invoice issued by
suppliers.
• Payment of GST: The CGST and SGST are to be
paid to accounts of the central and state
respectively.
• Input Tax Credit (ITC) set off: ITC for CGST and SGST
will be taken for taxes allowed against central and state
respectively.

20. GST Advantages
• GST is a transparent tax and
reduces the number of indirect
taxes.
• GST will not be a cost to
registered retailers. Therefore,
there is no hidden taxes and
the cost of doing business will
be lower.
• Benefit people as prices will
come down which will intern
help companies as
consumption will increase.

21. • There is no doubt that the production
and distribution ok good services will not
increase.
• It will also help to build a transparent and
corruption-free taxation system.
• GST is backed by GSTN which is fully an GST
Advantages integrated platform to deal with all
aspects of GST.
• Adaptation and migration to the new GST
system reduce thinking troubles and learning
from the entire ecosystem.

22. Problems of Implementation
of GST

23. GST is a regressive tax since it has a greater impact on low-
income earners, i.e., it consumes a greater proportion of their
income than those with a higher income. This is because the
GST tax base is expenditure rather than income. As a result,
everyone who buys or uses products or services is required to pay
GST.
Revenue Neutrality Rate: RNR is one of the biggest hurdle or
challenge under GST. RNR is the rate at which tax revenue of the
Central Government and State Government will remain the same.
The GST rate structure comprises of four slabs i.e. 5, 12, 18 and 28%
In addition to this, the costs of doing business have increased
considerably not only for big businesses but also for small ones
since they have to hire tax professionals in order to become GST-
compliant.

25. GST Disadvantages
• The aviation industry would be affected. Service taxes on airfares
currently range from 6-9 % and effectively double the tax rates.
• Some retail products currently have only 4% text on them. After
GST, garments, and clothes would become more expensive. GST
Disadvantages
• Adaptation and migration to the new GST system would have
thinking troubles and learning from the entire ecosystem.

26. How is GST
applied?
GST is a consumption-based tax. It is based on destination
principles. It is applied to all goods and services at the
place where final consumption happens. GST is paid on
procurement of goods and services.
GST can be levied on the place of consumption of goods
and services. It will be levied on intrastate supply and
consumption of goods and services. GST is a
comprehensive tax levied on the manufacture, sale, and
consumption. The system will change from the current
production-based taxation to consumption based. It is
expected to increase efficiency.

27. GST Rates
Starting from quite essential soap two to hotel and restaurant
services will become cheaper.
1. Soaps are being taxed at 28% but not at 18% under GST
cheaper as it dropped to 10% from 28%.
2. 2. Cereals and food grains that have a current tax rate of 6%
and 5% will be excluded from from GST and brought under
10% tax rate are milk and cream, not concentrated nor
containing added sugar or other sweetening matter.
Excluding UHT milk and dairy products.

28. 3. Food grains will be at 0% tax rate.
4. Eggs, butter, curd, milk etc. will be at 0% tax rate under GST.
5. Edible oil that is currently taxed between 3 to 9% will be
brought down to 5% under GST.
6. Tea, coffee, and masala that are taxed at 3 to 9% will be at 5%
under GST.
7. Coal will come down from 11.7% to GST 5%.
8. Entertainment services will fall from 22% to 18%.
9. Restaurants at 18% tax.

29. Things to get
cheaper
The following are the things that will get cheaper for the common man: -
1. Prices of movie tickets will become cheaper in most of the states.
2. Food grains, edible oils, etc.
3. Dining in restaurants.
4. Books, pencils, notebooks, etc.
5. Two wheelers.
6. Coal and coal products.

30. 7. SUV's or luxury or premium cars. Things to get cheaper
8. Staying in hotels.
9. Televisions.
10. Other entertainment services.
11. Washing machines.
12. Tea, coffee and other masalas.
13. Stones.
14. Eggs, curd, butter, paneer.
15. Toothpaste, hair products, cereals, and soaps.

31. Things to get costlier
The following things are expected to become costlier under GST for the common man.
1. Mobile bills.
2. Renewal premium for Life Insurance policy.
3. Banking and investment management.
4. Residential rent.

32. 5. Healthcare.
6. School fees.
7. Courier services.
8. Aerated drinks. Things to get costlier
9. Cigarettes and tobacco.
10. Basic luxurious for the common man like Wi-Fi and
DHT services.
11. Online booking of tickets for railways, airways, etc.

34. Bibliography
• www.gstindia.com
• https://cleartax.in
• economicstimes.indiatimes.com
• The Tribune
• Times of India
• The Economic Times
• www.successmantra.com
• www.medetariansea.com