Summer Internship Report

In partial fulfillment of the Summer Internship Project

of the

Master of Business Administration

Prepared by

Arun K S

Registration No: 2016MBA010

In

Organization Name and Address: SSG SOFTWARE PVT LTD

RT NAGAR BANGALORE

Under the Guidance of DR. BALANAGARAJAN

School of Management

PRESIDENCY UNIVERSITY,

BENGALURU – 560 064

JUNE – AUGUST 2017

1
 DECLARATION

This is to acknowledge that the Report entitled “GST READYNESS OF THE

VARIOUS ORGANIZATIONS” is made as a partial fulfillment of the Summer
Internship Program by me in “SSG SOFTWARE SYSTEMS PVT LTD”, under the
supervision of Mr. Sabyasachigupta.

I confirm that this report truly represents my work and accomplishment undertaken
as a part of my Internship Project. This work is not a replication of work done
previously by any other person. I also confirm that the contents of the report and the
views contained therein have been discussed and deliberated with the Industry
Supervisor.

Name & Signature of the Student : ARUN KS

Registration No : 2016MBA010

SABYASACHIGUPTA

Managing director at

SSG SOFTWARE SYSTEMS PVT LTD

1
 ACKNOWLEDGEMENTS

would be incomplete without mentioning the names of all the people who
helped me with it and without whose guidance and encouragement this
wouldn’t have been successful. Above all I thank the Almighty for his grace
and blessings at each and every stage of the project.

I express my sincere gratitude to Mr. Krishna Kumar, HOD, Presidency

University Bangalore, for showing his overwhelming support and interest
shown in the work.

I would like to express my deepest gratitude to project guide Mr.

SABYASACHIGUPTA Managing director of SSG software systems Pvt
Ltd for his constant support and guidance during the study. My short
experience with SSG software systems has enabled me to understand the
importance of team effort, timely decisions and more.

I extend my sincere thanks to all Faculty Members for having spared their
valuable time and for all the guidance given in executing the project as per
requirements.

Last but not the least I would like to record my deepest sense of gratitude to
my family and friends for their support and constant encouragement.

2
 CONTENTS

CHAPTER TITLE PAGE

1 Introduction
5 - 14

2 Organizational profile
15 - 16

3 Literature review
17-18

4 Research methodology
19-20

5 Data analysis
21-36

6 Findings
37-39

7 recommendations
40-41

8 conclusion
42

3
CHAPTER 1

EXECUTIVE SUMMARY

4
Introduction

GST is implemented on 1st July 2017.many companies are frustrated for

preparation of GST implementation. Some companies are not ready for GST,
they are against GST. the purpose of the research is to understand the GST
readiness of the various organizations. SSG software systems helped me to
complete this project

Introduction about GST

The goods and service tax has revolutionized the Indian Taxation system. The
GST act was passed in the Lok Sabha on 29th march, 2017, and came into effect
from 1st July, 2017.

GST in India is a comprehensive, multistage, destination based tax that will be

levied on every value addiction. In simple words, GST is an indirect tax levied
on the supply of goods and services. GST law has replaced much indirect tax
law that previously existed in India. Introduction of a GST to replace the
existing multiple tax structures of Centre and State taxes is not only desirable
but imperative in the emerging economic environment. Increasingly, services
are used or consumed in production and distribution of goods and vice versa.
Separate taxation of goods and services often requires splitting of transaction
values into value of goods and services for taxation, which leads to greater
complexities, administration and compliances costs. Integration of various taxes
into a GST system would make it possible to give full credit for inputs taxes
collected. GST, being a destination-based consumption tax based on VAT
principle, would also greatly help in removing economic distortions and will
help in development of a common national market.

5
Justification of GST

Despite the success of VAT, there are still certain shortcomings in the structure
of VAT, both at the Centre and at the State level.

A. Justification at the Central Level

i. At present excise duty paid on the raw material consumed is being

allowed as input credit only. For other taxes and duties paid for post-
manufacturing expenses, there is no mechanism for input credit under the
Central Excise Duty Act.

ii. Credit for service tax paid is being allowed manufacturer/ service
provider to a limited extent. In order to give the credit of service tax paid
in respect of services consumed, it is necessary that there should be a
comprehensive system under which both the goods and services are
covered.

iii. At present, the service tax is levied on restricted items only. Many other
large number of services could not be taxed. It is to reduce the effect of
cascading of taxes, which means levying tax on taxes.

B. Justification at the State Level

i. A major defect under the State VAT is that the State is charging VAT on
the excise duty paid to the Central Government, which goes against the
principle of not levying tax on taxes.

ii. Many of the States are still continuing with various types of indirect
taxes, such as luxury tax, entertainment tax , entry tax etc.

iii. As tax is being levied on inter-state transfer of goods, there is no

provision for taking input credit on CST leading to additional burden on
the dealers.

6
Model of GST

 The dual GST model proposed by the Empowered Committee and

accepted by the Centre will have dual system for imposing the tax. GST
shall have two components i.e.

(i) Central GST

(ii) State GST

 Central Excise duty, additional excise duty, services tax and additional
duty of customs (equivalent to excise), state VAT entertainment tax, taxes
on lotteries, betting and gambling and entry tax (not levied by local
bodies)would be subsumed within GST

Subsuming of Existing Taxes

S. Subsumed under CGST Subsumed under SGST

No
1 Central excise duty VAT/sales tax
2 Additional excise duties Entertainment tax (unless it is levied
by the local bodies
3 Excise duty medicinal and Luxury tax
toiletries preparation act
4 Service tax Taxes on lottery; betting and
gambling
5 Additional CVD State cesses and surcharges (supply
of goods and services)
6 Special additional duty of customs Entry tax not lieu of octroi
7 Surcharges
8 Cesses

7
The sub-summation should result in free flow of tax credit in intra and inter-
State levels so that unrelated taxes, levies and fees are not be subsumed under
GST.

What will be out of GST?

 Levies on petroleum products

 Levies on alcoholic products

 Taxes on lottery and betting

 Basic customs duty and safeguard duties on import of goods into India

 Entry taxes levied by municipalities or panchayats

 Entertainment/ Luxury taxes levied by local bodies

 Electricity duties/ taxes

 Stamp duties on immovable properties

 Taxes on vehicles

Chargeability

S G S T- State GST both tax charged on all intra state transations

C G S T-Central GST SGST levied by state Govt. and CGST levied

by central govt

I G S T-Integrated GST: - Applicable on interstate transaction,

aggregate of CGST and SGST Rate
Transfer of funds through Clearing
Agency.

8
Taxable Person

 It will cover all types of person carrying on business activities, i.e.

manufacturer, job-worker, trader, importer, exporter, all types of service
providers, etc.

 If a company is having four branches in four different states, all the four
branches will be considered as TP under each jurisdiction of SGs.

 All the dealers/ business entities will have to pay both the types of taxes
on all the transactions.

 A dealer must get registered under CGST as it will make him entitle to
claim ITC of CGST thereby attracting buyers under B2B transactions.

 Importers have to register under both CGST and SGST as well.

ISSUES IN IMPLEMENTTION

a. Agreement on GST rates among states and Centre

b. Constitutional amendments empowering states to levy tax on
services & empowering centre to levy tax on sales.
c. Compensation to be given by the Centre to States incurring
revenue losses on implementation of GST.
d. Drafting & implementation of Centre GST and State GST laws are
lagging behind.
e. Final approval and support of industry is a must.
f. Success of GST would depend upon implementation of IT
resources in every nook and corner of the country.

9
Why are some States against GST; will they lose money?

 The governments of Madhya Pradesh, Chhattisgarh and Tamil Nadu say

that the information technology systems and the administrative
infrastructure will not be ready to implement GST.

 The central government has offered to compensate States in case of a loss

in revenues.

 Some States fear if the uniform tax rate is lower than their existing rates,
it will hit their tax kitty. The government believes that dual GST will lead
to better revenue collection for States.

 However, backward and less-developed States could see a fall in tax

collections

Impact of GST on Manufacturing Sector

 No Excise Duty at the time of Manufacture & GST will be applicable on

“SUPPLY”. Will be great relief to all Manufacturers.

 Reduction in cascading effect ( Like earlier VAT was charged on Value +

Excise amount)

 Hassle Free Supply of Goods _ because on no Entry Tax/Octroi

 Increased Working Capital Requirements (Because Branch Transfer will

be treated as supply)

 Free Supplies & After Sale discount will be burden on supplier

 Valuation of Self Supplies required clarity

 Pre packaged products for retail consumption valued on MRP leading

higher cost price which is unlikely in GST

10
  Reduction of classification disputes

Impact of GST on Traders & Resellers

• Reduction in Cost because of cross input tax credit available

• No Cascading effect will reduced cost & ultimate benefit to customer

• No need to open multiple branches in different states as claim of

interstate purchase & interstate sale is available now.

• GST compliance will be burden for small traders & retailers, Considering
higher no. of returns and monthly credit matching concept

• Filling of monthly returns with purchase & Sales monthly cross

examination helps to curb circulations of dummy purchase and sales
invoices in the market

Impact of GST on Service Sector

Example : -

“Services provided by beauty parlour in which goods are used to provide the
service to the client, however its providing output service and not trading in
goods cannot claim input credit on VAT paid on that products”

 Number of filing return will increase as against only two half yearly
returns in current indirect tax regime
 Centralized Registration will become Decentralized Registration in GST (
Will be tough for few industries like Telecommunication Industry)
 Services are often delivered through third party vendors and hence,
determining point and time of supply is ambiguous.
 Reverse and partial charge mechanism likely to continue under GST

GST Impact on import of Goods & Services

11
 • With Constitutional Amendments, both CGST and SGST will be levied
on import of goods and services into the country.

• The incidence of tax will follow the destination principle (Place of supply
rules).

• Tax revenue in case of SGST will accrue to the State where the imported
goods and services are consumed.

• Full and complete set-off will be available on the GST paid on import on
goods and services.

• Thus, import of goods will attract BCD and IGST. It may be noted that
import of services, as against service tax at present, in GST regime, will
attract IGST.

• Basic Custom Duty will continue to there under GST system. However,
the additional custom duty in lieu of CVD /Excise and the Special
Additional Duty (SAD) in lieu of sales tax/VAT will be subsumed in the
import GST.

• The import of services will be subject to Central GST and State GST on a
reverse charge mechanism. In other words, the GST will be payable by
the Importer on a self declaration basis.

GST impact of export of Goods & Services

• Export of Goods & Services= Zero rated (Tax-Free/Exempted)

• Lower Logistic cost by subsuming Octroi/Entry Tax

• Free flow of goods makes Exports faster

• Refund of GST paid on Input is also available.

• Overall Indian Products will be more competitive

12
Duty Drawback: -

Earlier there was no provision for duty drawback in GST, but after public &
experts opinions, provision of duty drawback has been made in GST which will
be a big relief to the exporters.

Registration under GST

 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
PAN-based system for Income tax facilitating data exchange and
taxpayer compliance.

 The exact design would be worked out in consultation with the Income-
Tax Department.

Returns under GST

 The taxpayer would need to submit periodical returns to both the Central
GST authority and to the concerned State GST authorities.

 ITC credit can also be verified on the basis of the returns filed and
revenues reconciled against Challan data from banks.

 Common standardized return for all taxes (with different account heads
for CGST, SGST, IGST) can come into picture.

 Common standardized Challan for all taxes (with different account heads
for CGST, SGST, IGST) can come into picture.

HSN CODE

HSN (Harmonized system of Nomenclature) is an internationally accepted

product coding system. In India, HSN coding is currently used under Excise,

13
customs, and state value added Tax (VAT) laws and is now also proposed to
be used under Goods and service Tax law for classification of products
/goods

Codes under GST

Under GST law, the HSN code to be used by a tax payer for classification of
goods will be based on the tax payers turnover. The HSN code needs to be
declared on the tax invoice and also to be reported while filling the GST
returns.

The HSN codes for mandatory mapping of goods that need to be used by a
tax payer are as follows

Tax payer whose turnover is Rs 5 crore and above shall use 4 digit HSN
Code

Tax payers whose turnover is above Rs 1.5 crore but below Rs 5 crore shall
use 2 digit HSN code

Tax payers whose turnover is below Rs 1.5crore are not required to mention
HSN code in their invoices

The draft list of HSN code released and available in the public domain can
be assessed on the govt. GST website

Under the GST laws, the services will be classified as per the service
accounting code (SAC).

2 Digit HSN code for goods

the tax payers with turnover between Rs 1.5 crore in the preceding financial
year ,need to specify HSN codes only at 2 digit chapter level as an optional

14
 exercise for the first year of GST operations. From the second year of GST
operations, mentioning 2 digit chapter level HSN code will be mandatory for
all taxpayers with turnover between Rs 1.5 crore and Rs 5 crore in the
previous financial year

4 Digit HSN code for goods

HSN code of 4 digits will be mandatory for taxpayers having turnover more
than Rs.5crore in the preceding financial year. Turnover will be considered
on the basis of taxpayers self declaration for the first year . After completing
the first year under GST, the turnover for the previous year will be
considered for determining the used of 4 digit HSN codes.

8 Digit HSN code for export and import of goods

HSN codes of 8 digits are mandatory in case of export and import of goods

PROBLEM STATEMENT

There are too many small, medium, large organizations are in Bangalore. If the
organization annual turnover above 20lakh they should have to pay the GST. So
the task is to identify the various organizations if they are paying tax or not.
There is a need to understand the readiness of the organizations to pay tax. It is
important to understand why some organizations resist the new tax regime.
Therefore this survey on “GST Readiness” is carried out.

15
Objective of the study

 to identify the impact on GST implementation to the firms

 to determine the tax payers and non tax payers
 give awareness about GST to people
 give awareness to people about the benefit of the GST
 to identify the peoples response about GST

Limitations of the study

The data collected for this research is collected from the district of Bangalore.
The result received from this research may or may not be suitable for
application to the other states of India due to geographical limitations.

Data collected only the medium size organizations, opinions about large
companies and small companies are not collected.

Another limitation of the study is that some of the respondents don’t have much
knowledge about the GST, so it is also affect the reliability of the data.

16
CHAPTER 2

ORGANIZATIONAL PROFILE

17
SSG software system pvt ltd is a 20 year old software development company. It is
owned and managed by Mr. Sabyasachygupta. It is located in RT Nagar Bangalore.
The company was incorporated on 03 March 1997. It is classified as Non-Govt
Company and is registered at registrar of companies, Bangalore. Its authorized
share capital is RS 100000 and its paid up capital is RS100000. It is involved in
software publishing, consultancy and supply of software [software publishing
includes production, supply and documentation of readymade software, operating
systems software, business and other application software and computer game
software for all platforms. Consultancy includes providing the best solution in the
form of custom software after analyzing the user’s needs and problems. Custom
software also includes made-to-order software based on orders from specific users.
Also included writing of software of any kind of following directives of the users;
software maintenance, web page design].

Currently 6 employees are working in the organization.5 peoples are working as

a software developers and 1 person working on marketing department. The
working time of the company is 8:30am -6:30 pm. Number of working days in a
week is 5 Saturday and Sunday holiday. The motto of the organization is
‘Committed to improve your profits’

Objective of the company

 To help customers win in their business endeavors and to take care of

their various concerns in business. using the product, services and domain
expertise of SSG logic
 To excel in the continuously improving quality system of the global
software market
 To create the wealth for the company, shareholders and society by legal
and ethical means

18
SWOT analysis

Strength - good employee relationship,

Customer service

Weakness - lack of marketing and promotion activities

Opportunities - provide training to graduates and postgraduates on

Yearly

Threats - poor infrastructure

19
CHAPTER 3

LITERATURE REVIEW

20
Literature review

Pinki et al. (2014) studied, “Goods and Service Tax- Panacea For Indirect
Tax System in India” and concluded that the new NDA government in India
is positive towards implementation of GST and it is beneficial for central
government, state government and as well as for consumers in long run if its
implementation is backed by strong IT infrastructure. Kumar (2014) studied,
“Goods and Service Tax - A way forward” and concluded that after
implementation of GST in India many indirect tax system will be finished
and there will be only one tax i.e. GST which is expected to encourage
unbiased tax structure. Sehrawat and Dhanda (2015) studied, “GST in India:
A Key Tax Reform” and concluded that due to dissilent environment of
India economy, it is demand of time to implement GST. Anushuya and
Narwal (2014) studied, “Application of CGE Modals In GST” and
concluded that both GST & CGE are very popular all over the world but
GST is a powerful concept in the field of indirect taxes. Chaurasia et al.
(2016) Studied, “Role of Goods and Services Tax in the growth of Indian
economy” and concluded that in overall GST will be helpful for the
development of Indian economy and this will also help in improving the
Gross Domestic Products of the country more than two percent.

21
CHAPTER 4

RESEARCH METHODOLOGY

22
Data used in research are primary data .survey method are used to data
collection. Collect data of 30 organizations in different locations in Bangalore.
This research is based on these data. . In many companies are not responded.
Some of them are not allowed to enter office. We have to meet IT manager or
accounts manager or owner of the organization. They are only able to answer
our questions. GST will affect if the companies annual turnover above 20
lakh.so that we should have to select these types of companies so that we prefer
medium scale industries to collect information. We didn’t collect information
from small scale industry. The types of companies we collect information are

Real estate sector -4

Service sector - 6

Software companies -5

Manufacturing companies -4

Logistics companies -5

Retail sector -6

Secondary data’s are collected from internet and various news papers like
economic times, The Hindu, business line etc. current publications and
journals give many information. I did this project in SSG software systems
Bangalore , that organization help me lot for collecting data. They give many
journals and various power point documents regarding GST.

Tools of analysis

With the help of MS EXCEL various statistical tools are used for data analysis.
The tools are pie diagram and bar diagram.

23
CHAPTER 5

DATA ANALYSIS

24
 Table 5.1 showing the results of no of companies having annual turn over
above 20 lakh

Table 5.1

Si Annual turnover above 20 lakh No of respondents percentage

no

1 Yes 30 42.85%

2 No 40 57.14%

Annual turnover above 20 lakh

yes
43%
yes
no
no
57%

Conducted survey on 70 companies. Out of these 70 companies 30 companies

having annual turnover above 20lakh. If companies annual l turnover above
20lakh then GSTwill be applicable for that company. So that I collect data from
GST applicable company. I didn’t collect data from annual turnover having
below 20 lakh companies.

25
 Table 5.2 showing no. of organizations having sales tax no.

Table 5.2

Si no Having sales tax no No of Percentage

respondents

1 Yes 18 60%

2 No 12 40%

Sales tax no

no
40%
yes
no
yes
60%

In this diagram shows how many organizations have sales tax no and how many
organizations don’t have. In service providing firms don’t have sales tax no they
have service tax no. in this graph 18 companies have sales tax no. 12 companies
don’t have sales tax no. in our data 6 companies are service providing
companies and I understood that rest of the 6 companies they are not paying tax
to the government.

26
 Table 5.3 showing no of companies having service tax no.

Table 5.3

Si Having service tax no. No of Percentage

no respondents

1 Yes 5 16.67%

2 no 25 83.33%

organizations having service tax no

yes
30%

yes
no

no
70%

In this figure only 5 companies have service tax no. total 6 companies are
service providing company. In that 6 companies one company not paying tax to
the government. rest of the 25 companies having sales tax number and some of
them don’t have

27
Table 5.4 showing the no of companies having GST no.

Table 5.4

Si Companies having GST Number No of percentage

no respondents

1 Yes 20 66.67

2 No 10 33.33

companies having GST NO

33.33

YES
66.67 NO

In this figure there are 20 companies having GST no. rest of the 10 companies
don’t have GST no. the reason is that they are not paying tax and some of the
companies are registered GST but they didn’t get the GST no.and another
reason is that some of them are not ready to GST.

28
 Table 5.5 shows organizations having more than one ware house

Table 5.5

Si no Organizations having more than one ware no of percentage

house respondents
1 Yes 9 30%
2 No 21 70%

organizations having more than one ware

house

yes
30-%

yes
no

no
70%

In this figure 19 companies having warehouse and 21 companies don’t have

warehouse. If a organization having warehouse they should pay GST

29
 Table 5.6 showing the organizations transfer material from one branch to
another

Table 5.6

Si no Transfer material from one branch to No of percentage

another respondents
1 Yes 14 46.66%
2 No 16 53.33

organizations transfer material from one

branch to another

yes
46.66%
no yes
53.33%
no

In this figure 46.66% of companies transfer material from one branch to another
branch and 53.33% organizations are not transferring the material from one
branch to another. If the company transfers material from one branch to another
GST is applicable to that company

30
Table 5.7showing organizations having factory

Table 5.7

Si no Organizations having No of respondents percentage

factory
1 Yes 10 33.33
2 no 20 66.67

organizations having factory

yes
33.33%

yes
no

no
66.67%

There are 33.33% of the organizations having factory which means out of 30
companies companies having factory. If a company having factory they should
have to pay GST

31
 Table 5.8 showing organizations having stock before 30th june

Si Having stock before 30th june No of percentage

no respondents
1 Yes 12 40%
2 No 18 60%

any stock before 30th june

yes
40%

yes
no
no
60%

There are 40% of the companies having stock before 30th june others don’t
have. out of 30 companies 12 companies having old stock. If GST implement
the prices of the stocks will be change. Sometimes it may be increase some time
it will be decrease. Some companies are giving discounts to the customers for
clearing their old stock

32
Table 5.9 showing organizations fix MRP on the old stocks

Si Fix MRP on old products No of percentage

no respondents
1 Yes 7 23.33
2 no 23 76.66%

fix MRP on old stock

yes
23.33%

yes
no

no
76.66%

There are 12 companies having old stock. Out of these 12 companies 7

companies are fix MRP on the old stock. If GST is implement the price of the
product will be change.

33
Table 5.10 showing organizations doing online business

Si no Doing online business No of percentage

respondents
1 Yes 5 16.66%
2 no 25 83.335

doing online business

yes
16.66%

yes
no

no
83.33%

There are only 16.66% companies are doing online business. GST is applicable
on online business.

34
 Table 5.11 showing organizations doing export and import trade

Table 5.11

Si no Export and import trade No of percentage

respondents
1 Yes 6 20%
2 No 24 80%

export and import trade

yes
20%

yes
no

no
80%

In this figure 20% off the companies are doing export and import trade. Out of
30 companies 6 companies are doing export and import. If company is doing
export and import they should pay GST

35
Table 5.12 showing RESPONDENTS know the benefit of the GST

Table 5.12

SI NO Know the benefit of the GST NO OF PERCENTAGE

RESPONDENTS
1 YES 18 60%
2 NO 12 40%

Aware of GST benefit

no
40%

YES
NO

yes
40%

60%of the persons know the benefit of the GST. rest of them not aware about
the GST. some of them are against to GST.

36
 Table 5.13 showing people think GST is beneficial for their organizations

Si no GST is beneficial for the organizations No of Percentage

respondents
1 Yes 17 56.66%
2 no 13 43.33%

GST is beneficial for organizations

no yes
43.33% yes
56.66% no

70% of persons thinking GST is beneficial for their organizations. They know
the benefits of the GST.GST is a single taxation system.

37
 Table 5.14 showing organizations trained their accountants for GST
accounting and return formats

Si no Trained their accounts No of Percentage

respondents
1 Yes 19 63.33
2 no 11 36.66

Sales
no
36.66%

yes
no

yes
63.33%

63.33% of the organizations trained their accountants for GST accounting and
return formats. Which means out of 30 companies 19 companies trained their
accountants. So that they are ready for GST implementation.

38
 Table5.15 shows organizations having GST software

Table5.15

Si no GST software No of percentage

respondents
1 Yes 4 13.33
2 no 16 53.33

GST software

yes
13.33%

yes
no

no
53.33%

There are out of 30 companies 4 companies having GST software. Some of the
companies are ordered GST software. Main problem is that GST softwares are
not ready.

39
CHAPTER 6

FINDINGS

40
Most of the companies are ready for implement GST; I understand that based on
the analysis of the survey results. They are aware about the GST. They know
the benefit of the GST. Most companies are registered GST. But some
companies are not ready for GST. They are against GST. They don’t have sales
tax number, service tax number and GST no also .they are doing business
without paying tax. So that they afraid of GST. if GST implement government
will catch them.

The main problem of GST implementation is operational issues. The

companies need to change their old accounting software. Another problem
companies have to train their accountants for GST accounting formats. It
takes time and cost.

The main challenges of GST implementation is

 Legacy issues which will use resources

 Non Harmonization of Tax rates

 Lack of automation

 Lack of Procedural Manuals

 Lack of Skilled officials

 Double Registration- Handling old Registration

 Poor Quality of tax Returns

 No System for 100% Scrutiny of Tax Returns and Tax Audit

 Lack of Cross Verifications with other tax administrations

 Lack of mechanism to control Evasion

 Impact on Prices

41
These are the main challenges of GST. so that many firms are opposing
GST. they are thinking GST will not give any benefit to their organization.
Lack of knowledge about GST is one of the problems. Small firms are afraid
of GST; they have not much knowledge about GST.

Industry’ Expectations from GST

 Low compliance cost

 Simple business processes

 Less requirement of automation initially

 Minimal ITC refund cases

 Exemptions instead of exclusions from GST

 Seamless flow of input credit

 Seamless flow of information between, supplier, buyer and tax

administration

 Need for IT portal or agency like TINXSYS, NSDL

42
CHAPTER 7

RECOMMENDATIONS

43
Most of them have not much aware about GST. They are afraid of GST. They
do not know the benefit of the GST. If they get awareness they will support
GST. Many organizations are not ready for GST implementation. The time
period is very less. One of the problems is that GST software’s are not ready.
The organization should have to change their old billing software and peoples
are not trained for GST it is the problem.

Many companies have old stock. If GST is implemented the prices of the items
will be change. Sometimes price will be decrease. That will affect the
profitability of the organization. So that some peoples opposing GST. If they get
some times more they will the old products.

If government arrange seminars and awareness programs to peoples people will

support GST. There is lot of confusions related in GST. Accounting
professionals don’t know how to adjust GST in balance sheet. So that
organization should train their accountants for GST accounting and return
formats

Conclusion

GST seems to be beneficial for the economy and can reduce the tax burden on
various sectors and individuals. It will bring uniformity in the cascading tax rate
which will lead to more government revenues and impulsive growth in
economy. GST will ensure that the cost of tax the consumer will have to bear
would definitely reduce. The consumer would also benefit in the long run as
price of goods will decline eventually.

One of the greatest benefits a tax payer can gain from GST is elimination of
multiple taxation. This will also reduce the paperwork and clean up the mess
that indirect tax has created

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 QUESTIONNAIRE

An appeal by a Student

Respected sir,

I am ARUN K S. I am an MBA student of PRESIDENCY UNIVERSITY, BANGALORE.

As a part of our curriculum I have to execute a project. Kindly help me.

The purpose of our survey is “GST implementation readiness of various companies”. Your
participation in this survey is completely voluntary, but, your company will be able to review
the GST readiness status, if you participate in this survey. I kindly invite you to participate in
the survey research about GST Implementation.

Thanking you,

Sincerely,

Name: ARUN .KS Signature:

Date:

GST IMPLEMENTATION READINESS SURVEY

Name of the company: __________________________________________________

Name of the owner: __________________________________________________

Type of industry: ___________________________________________________

Address of the company: __________________________________________________

City: _______________ state: ___________________ zip: _______________

Telephone: ___________________________ email id: __________________________

Date:

Name: Signature

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1. Is your annual turnover above 20 lakh? YES/NO

2. Do you have sales tax no? YES/NO

3. Do you have service tax no? YES/NO

4. Do you have GST no? YES/NO

5. Do you have more than one ware house in more than one city or state?

YES/NO

6. Do you transfer material from one branch to another branch? YES/NO

7. Do you have factory? YES/NO

8. How many ware house you have? _______________

9. Do you have any stock before 30th June? YES/NO

10.Do you fix MRP on those products? YES/ NO

11.Are you doing online business? YES/NO

12.Are you doing export and import trade? YES /NO

13.Do you know the benefit of GST? YES /NO

14.Do you think GST is beneficial for this company? YES /NO

15.Do you train your accountants for GST accounting and return formats?

YES?NO

16.Do you have any GST software? YES/NO

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