1.
1 INTRODUCTION
Indirect Taxation (Goods and Service Tax) :
Tax policies play an important role on the economy through their impact on both efficiency and
equity. A good tax system should keep in view issues of income distribution and, at the same time, also
endeavor to generate tax revenues to support government expenditure on public services and infrastructure
development. The introduction of Goods and Services Tax (GST) would be a very significant step in the field
of indirect tax reforms in India. By amalgamating a large number of Central and State taxes into a single tax, it
would mitigate cascading or double taxation in a major way and pave the way for a common national market.
From the consumer point of view, the biggest advantage would be in terms of a reduction in the
overall tax burden on goods, which is currently estimated at 25%-30%. Introduction of GST would also make
our products competitive in the domestic and international markets. It will lead to the abolition of taxes such
as Octroi, Central Sales Tax, State level Sales Tax, Entry Tax, Stamp duty, Telecom License Fees, Turnover
Tax, Tax on Consumption or Sale of Electricity, etc. It will also improve government's fiscal health as the
tax collection system would become more transparent, making tax evasion difficult.
CAG Mr. Vinod Rai in his National Conference on GST put forth the concept as "An integrated
scheme of taxation that does not discriminate between goods and services and is a part of the proposed tax
reforms that centre on evolving an efficient and harmonized consumption tax system in the country.
"GST stands for Goods and Service Tax. It was first initiated in 1986 by Vishwanath Pratap Singh 7th
Prime Minister of India. After that in 2007, the current government proposed to implement GST and presented
the same in Lok Sabha in 2011. In Dec 2014 GST again presented in Lok Sabha and in same is passed in
2015. After approval of Rajya Sabha same is called as101th amendment of the Constitution and is rolling out
from 1 July 2017. After the passage of 25years of economic reforms in the indirect taxes is going for a
revolutionary change in the form of GST.GST is defined as the giant indirect tax structure designed to support
and enhance the economic growth of a country. More than 150 countries have implemented GST so far.
However, the idea of GST in India was mooted by Vajpayee government in 2000 and the constitutional
amendment for the same was passed by the Loksabha on 6th May 2015 but is yet to be ratified by the
Rajyasabha. However, there is a huge hue and cry against its implementation. It would
interesting to understand why this proposed
GST regime may hamper the growth and development of the country.
1.2 Need of Study:
This study aims to explore the how GST returns are filled by companies and concomitant adjustments to
other indirect taxes will have on the country of India's ability to generate income.
Policy makers must fully comprehend how India's revenue has been influenced by the introduction of the
GST and other indirect levies. It supports in determining the success of the tax reform and helps in making
defensible choices regarding future policy changes. The study can provide insight into how the GST will
impact the various industries in India economically. It can demonstrate which industries have benefited or
suffered as a consequence of the tax reforms, enabling a more complex view of the state's economic situation.
The state's budget relies on revenue to pay for development projects, infrastructure improvements, and public
services. Understanding how tax changes affect revenue collection might help with revenue management
tactics.
Changes in tax laws have a bearing on businesses' financial planning, pricing tactics, and daily
operations. It is crucial for both businesses and the government to comprehend how taxes like the GST and
others have impacted enterprises' financial performance.
Consumer attitudes and expenditure habits may be modified by indirect tax. Analyzing how consumer
behavior has altered as a result of tax legislation might reveal changes in demand that may affect markets and
tax income. The investigation can determine whether tax evasion rates have changed or whether GST has
increased tax compliance. For evaluating the efficacy of anti-evasion methods, this information is crucial.
India's performance in terms of revenue collection after the GST can be understood by contrasting its
revenue trends with those of other states. It aids in identifying strengths and prospective growth. By offering
concrete data and insights on how GST affects revenue in certain sectors, the study can add to an existing
body of scholarly literature. It can be used as a resource for further investigation and study.
Transparency in taxation and its effects on revenue generation improve governance accountability. A
detailed examination adds to the informed public debate of tax policies and their results. Constant
examination is necessary due to the ever-changing nature of tax policies and the implications that they have.
This kind of research keeps up with developments and offers timely insights for modifying policies.
The study is useful for both researchers and policymakers thinking about the bigger picture of India's
taxation.
1.3 Objective of the Study:
1. To determine how the GST's being enacted will influence India’s total income collection
2. To evaluate the effects of the GST on revenue fluctuations by sector
3. To comprehend modifications in consumer expenditure and behaviour following the introduction
of the GST
4. To evaluate the success of countermeasures put in place after the GST.
5. To determine which industries have seen substantial changes in revenue under the GST.
6. To analyze how the GST influences revenue from various indirect taxes.
7. To assess the extent of compliance among companies in India after the GST.
8.To analysis investment performance of last five year.
1.4 Research Methodology :
The topic under study was selected through discussion with the project guide and organization guide in
the Tax Consultant Office. The research approach used for the study is exploratory.
Research is a logical and systematic search for new and useful information on a particular topic.Research
methodology is a systematic way to solve a problem. It is a science of studying how research is to be carried
out. Essentially, the procedures by which researchers go about their work of describing, explaining and
predicting phenomenon are called research methodology.
1.4.1 Data Collection :
1. Primary Data :
2. Secondary Data :
1.5 Limitation of the study :
1. The Tax Consultant operation is confidential and because of that some information can’t be obtained.
2. The time period was not sufficient to study all aspects of “GST.”
3. Data is collected for 5 years only.
1.6 Scope of the study :
1.To know about the Indirect taxation system in India.
2.To know about the Goods and Services Tax (GST)
3.To know the perception of tax payers regarding the tax filling, auditing and GST.
4.Develop National Market - One Nation One Tax.
5. Avoid cascading effect of various indirect taxes like Central Excise, Central Sales Tax, State Vat and
Entry Tax (Octroi).
6.Reduce multiplicity of indirect taxes.
7.Reduce distinction between goods and services to avoid overlapping of State and Central Tax on same
transaction.
8.Remove barriers in inter-State movement of goods to reduce wastage of truck time and wastage of man-
hours at check posts.
