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Specimen of Project Work

Project Title: A Comparative Study on Pre -GST and Post -GST Tax
Regime-A Case Study of Indian Banking Sector

A project submitted in partial fulfillment of the requirements for the Degree of

Bachelor of Commerce

By
..........................

University Roll No: ……………

Registration No: …………

Session: ………………

Under The Supervision of

Dr. / P r o f . . . . . . . . . . .

Faculty of Commerce, Karim City College, Jamshedpur

 College Logo University Logo

Faculty of Commerce
Karim City College, Jamshedpur

CERTIFICATE OF APPROVAL
The foregoing project report entitled“A Comparative Study on Pre- GST and

Post-GST Tax Regime-A Case Study of Indian Banking Sector ” is hereby

approved as a creditable study of project topic and has been presented in satisfactory manner
to warrant its acceptance as prerequisite to the degree for which it has been submitted.
It is understood that by this approval, the undersigned do not necessarily endorse any conclusion
drawn or opinion expressed therein, but approved the project report for the purpose for which it
is submitted.

Name and Signature of Project Supervisor Signature of External Examiner

Dr./Prof. ............
 Acknowledgement

I express my deep sense of gratitude and indebtedness to my project supervisor Dr.

/Prof…………….. for providing precious guidance, inspiring discussions and constant
supervision throughout the course of this work. His timely help, constructive criticism and
conscientious efforts made it possible to present the work contained in this project. I am also
thankful to our HOD Dr…………………….. for his help during my project work.
My sincere thanks to all faculty members of Commerce who helped directly or indirectly in the
completion of this project.
I am also thankful to our Honourable Principal, Dr. Mohammad Reyaz for his inspiration.
Last but not least I feel pleasure and privileged to fulfill my parent’s ambition and I am greatly
indebted to them for bearing the inconvenience during my B.Com Course.

Name and signature of the Student: ………………

University Roll No.: ...…………..

Reg. No.: …….

Session:……..
 CONTENTS

1. List of Abbreviations........................................................... ii

2. List of Tables............................................................................iii

3. List of Figures.............................................................................iv

4. ABSTRACT ………………………………………….............v

5. Chapter 1 INTRODUCTION………………………………………

6 .Chapter 2 LITERATURE REVIEW

7. Chapter 3.Indian Banking Sector.........................................

8. Chapter 4. Data Collection.......................................

9. Chapter 5.Data Analysis and Interpretation.......................................

10. Chapter 6.Conclusion and Suggestions…………………………………

11. REFERENCE…………………………………………………

12. APPENDICES............................................................................

i
 List of abbreviations

SL.No.
1. GST Goods and Service Tax
2 NABARD National Bank for Agriculture and
Rural Development
3. PSB Public Sector Banks
4 SBI State Bank of India

ii
 List of Tables

SL.No. Description Page.No

1. 4.1
2. 4.2

iii
 List of Figures

SL.No Description Page No.

1. 4.a
2. 4.b

iv
 ABSTRACT (specimen)
(Overall about the study in maximum of 200- 250 words)
In abstract, following contents should be mentioned in maximum three to four lines:-

1. General Problems
2. Objective of the study
3. Research Methods
4. Findings
Follow the following example of writing Abstract

The Goods and Services Tax (GST) implemented in India in 2017 aimed to revolutionize the
country's indirect tax landscape. This study delves into the impact of GST on the Indian Banking
Sector. Through a comparative analysis of the pre-GST and post-GST eras, the research
investigates how GST has influenced the operational efficiency, tax compliance procedures,
credit growth patterns, and overall profitability of banks. The study employs a combination of
secondary data analysis from government reports and research papers, along with primary data
collected through surveys and interviews with banking professionals and industry experts. The
findings will shed light on whether GST has simplified tax compliance for banks, impacted the
cost of operations, influenced credit growth patterns, and presented any unforeseen challenges.
By identifying these impacts and potential areas for improvement, the research aims to contribute
valuable insights for policymakers and the banking sector in India.
1. General Problems: The pre-GST regime's complexity with cascading taxes, cumbersome
compliance procedures, and challenges with input tax credit (ITC) claims.
2. Objective of the study: This study aims to assess the impact of GST on bank operational
efficiency, tax compliance procedures, credit growth patterns, and overall profitability.
3. Research Methods: The research employs a combination of secondary data analysis from
RBI reports, Banks' Annual Reports, and research papers, along with primary data collected
through surveys and interviews with banking professionals and industry experts.
4. Findings: The analysis has revealed whether GST has simplified tax compliance for
banks, impacted operational costs, influenced credit growth patterns, and presented any
unforeseen challenges.
Keywords:Goods and Services Tax (GST),Indian Banking Sector,Pre-GST regime,Post-GST
regime,Tax compliance,Operational efficiency,Credit growth,Profitability,Input Tax Credit
(ITC),Cascading effect
Keywords related to research in the study (Maximum 10 keywords)

vi
 Chapter-1 Introduction (Specimen)

The Goods and Services Tax (GST) implemented in India on July 1st, 2017, marked a significant
reform of the country's indirect tax system. This study aims to assess the impact of this reform on
the Indian Banking Sector. By comparing the pre-GST and post-GST eras, the research will
analyze how GST has influenced the operational efficiency, tax compliance procedures, credit
growth, and overall profitability of banks.

1.1 Meaning and Concept of Pre-GST and Post-GST Tax Regime

Pre -GST Tax Regime:
Prior to GST, India had a complex indirect tax structure with multiple levies imposed by both the
central and state governments. Some of the major indirect taxes included:
Central Excise Duty: Levied on the production of manufactured goods.
Value Added Tax (VAT): Levied by state governments on the sale of goods within the state.
Service Tax: Levied on various service providers.
This multi-layered system created a cascading effect, where taxes were applied on top of already
taxed amounts, ultimately inflating the final price for consumers. Additionally, claiming input
tax credit (ITC) for taxes paid on purchases used in production or service provision was a
cumbersome process. This complexity and lack of seamless credit flow burdened businesses and
impacted banking transactions.
Post-GST Tax Regime:
GST introduced a unified tax system for the entire country. It replaced most of the pre-existing
indirect taxes, bringing uniformity and transparency. Key features of GST include:
Destination-based Tax: Tax is levied at the final point of consumption, eliminating the
cascading effect.
Input Tax Credit (ITC): Businesses can claim credit for GST paid on inputs used in production
or service provision, reducing the overall tax liability.
Single Tax System: GST combines central and state levies under one head, simplifying tax
compliance.
The concept behind GST is to tax the value added at each stage of production or service delivery,
ultimately leading to a more efficient and transparent tax system. This reform has the potential to
improve the ease of doing business and boost economic growth, potentially impacting the
banking sector as well.
1.2 Background (Mention in brief history of the topic)
The Pre-GST tax regime in India was characterized by a complex web of indirect taxes levied by
both the central and state governments. This multi-layered system, with taxes like central excise
duty, state VAT, and service tax, created a cascading effect, inflating prices for consumers and
hindering a seamless flow of input tax credit (ITC) for businesses. This complexity burdened
banks, impacting transactions and hindering operational efficiency.

The introduction of GST in 2017 aimed to address these issues by creating a unified tax system.
GST operates as a destination-based tax, levied at the final point of consumption, eliminating the
cascading effect. It also allows for seamless ITC claims, potentially reducing the overall tax
burden on businesses. This reform promised a more transparent and efficient tax regime, with the
potential to improve the ease of doing business and stimulate economic growth.

Given the potential impact of GST on the Indian economy, it is crucial to analyze its specific
effects on the banking sector, a vital component of the financial system. This study aims to
bridge this knowledge gap by exploring how GST has reshaped the operational landscape of
Indian banks.
Overview: Impact of GST on the Indian Banking Sector
The Goods and Services Tax (GST) implemented in India in 2017 aimed to simplify the indirect
tax system and boost economic activity. This study explores how GST has impacted the Indian
Banking Sector, a crucial component of the financial system.
Pre -GST Scenario
 Complex tax structure with cascading effects, leading to inflated prices.
 Cumbersome compliance procedures for various indirect taxes.
 Difficulties in claiming input tax credit (ITC).
Post- GST Scenario
Potential Impact of GST on Banks Operational Efficiency: Streamlined compliance processes
could potentially reduce costs and improve efficiency. However, initial challenges in adapting to
the new system are possible.
Tax Compliance: GST might initially increase compliance burden due to a new tax regime.
However, in the long run, it could lead to a more transparent and efficient system.
Credit Growth: A more robust economy due to GST could stimulate credit demand from
businesses, impacting banks' lending activities.
Profitability: Changes in operational efficiency, tax compliance costs, and credit growth
patterns can ultimately influence the profitability of banks.

1.3 Justification for Selecting the Topic:(Mention why do you want to study on the topic)
Impact of GST on the Indian Banking Sector
The topic "Impact of GST on the Indian Banking Sector" is a relevant and significant area of
research for several reasons:

Recent Policy Change: GST is a major economic reform implemented in India in 2017.
Understanding its impact on various sectors, including banking, is crucial to evaluate its
effectiveness.
Interconnection: The banking sector plays a vital role in facilitating financial transactions and
economic activity. Analyzing the impact of GST on banks provides insights into how this reform
influences the broader financial ecosystem.
Potential for Multiple Impacts: GST has the potential to affect banks in various ways,
including:

Operational Efficiency: GST might simplify compliance procedures, potentially reducing costs
and streamlining operations. However, initial implementation challenges could also occur.
Tax Compliance: GST introduces a new tax regime, which may initially increase compliance
burden for banks. However, in the long run, it could lead to a more transparent and efficient
system.
Credit Growth: A more robust and efficient economy due to GST could stimulate credit
demand from businesses, impacting banks' lending activities.
Profitability: Changes in operational efficiency, tax compliance costs, and credit growth
patterns can ultimately influence the profitability of banks.
Limited Existing Research: While there's likely some research on the general impact of GST
on the Indian economy, a focused study on the banking sector can provide deeper insights. This
research can contribute valuable knowledge to policymakers and banking professionals.
By investigating the impact of GST on the Indian Banking Sector, this study can offer insights
into the effectiveness of the reform and its potential to improve the overall financial landscape in
India.
1.4 Significance of the Study:(Mention the need of the study)
This research will provide valuable insights into the impact of GST on the Indian Banking
Sector. These insights can be used by policymakers in the following way.

 To evaluate the effectiveness of GST in achieving its objectives for the banking sector.
 Identify areas where further reforms or clarifications might be needed to smoother the
transition for banks.
 How to adapt to the new tax regime and optimize their operations.
 Potential opportunities and challenges arising from GST implementation.
 The findings can also benefit banking professionals by helping them understand

Overall, this study aims to contribute to a deeper understanding of the impact of GST on the
Indian Banking Sector, thereby informing future policy decisions and industry practices.
1.5 Research Objectives:(Mention your objective of the study with clarity)

(A) . Assess the impact of GST on bank operational efficiency.

(B) Evaluate changes in tax compliance procedures for banks Post-GST.
(C) Analyze the impact of GST on credit growth and profitability of banks.
(D) Identify any challenges faced by the banking sector due to the GST implementation.
1.6 Research Methodology: (Mention Methodology to achieve the objectives)
1. Data Collection (Mention sources of data collection)

 Secondary data from government reports, RBI publications,Annual Reports of Banks and
research papers on Pre- GST and Post-GST tax structures and their impact on the banking
sector.
 Collect primary data through surveys and interviews with bankers, tax consultants, and
industry experts.

2.Data Analysis and interpretation :(Mention Tools of Data Analysis)

 Comparative analysis of Pre-GST and Post-GST tax data related to the banking sector.
 Statistical techniques (Descriptive Analysis) to evaluate the significance of changes in
banking sector performance Post-GST.

1.7 Limitation of the Study :(Mention the specified area of research and period)

1.8 Scheme of Chapters (Mention chapters as per your topic)

Chapter-1 Introduction: The introduction part should cover 1Meaning, and Concept
2.Background (issues/problems) .3.Justification for Selecting the Topic 4.Significance of the
Study 5.Research Objectives ( cover the main and sub-objectives of the study and should clearly
mention and correlate with the abstract ). 6.Research Methodology 7. Use of Sources and
Method of Data Collection 8.Data Analysis and interpretation tools and techniques 8.Limitation
of the Study 9.Scheme of Chapters.

Chapter-2 Literature Review (The review of literature is done basically to get a fair idea of the
possible areas of research, which have already been done in the area. The review of the literature
should be done based on studies related to the issues.Discuss 10 to 15 Literature Review )
Chapter-3 ( Discuss Study of the Topic)
Chapter-4.Data Collection :Tables should be numbered sequentially. The title of the table
should be centralised and placed above the table. The source if any, should be indicated at the
bottom. Please provide a table(s) as a real table(s) with rows, columns, and cells.
Chapter-5 Data Analysis and Interpretation :This section should be dealt with in details and
elaborately. (Use figures or graphs and Descriptive Analysis)
Chapter-6 Findings
Chapter-7 Conclusion and Suggestions
References: (Put the references which are used to complete the project.)
Only cited works should be included in the 'References' which should appear alphabetically at
the end of the paper. The references must follow the American Psychological Association (APA)
format. When quoting directly or indirectly from a source, the source must be acknowledged in
the text by the author’s name and year of publication. If quoting directly, a location reference
such as page number(s) or paragraph number should be mentioned. An example of the APA style
is given below for your reference.

Book: Narasimham, N.V. 1994. A model for the commodity price system analysis. Himalaya
Publications, New Delhi.
Journal Article: Aagh, Y.K. 1997. Agriculture trade and policies. The Indian Journal of
Commerce L (192): 1-11.
Government Publication: Government of India, Ministry of Communications, Department of
Telecommunications. Annual report 2019-20. New Delhi.
Book chapter: Gilberto Mendoza, 1995, A premier on marketing channels and margins. Pages
257-276 in Prices, products, and People (Gregory J. Scott, ed.) London. Lynne Rienner
Publishers.
Website:https://www.sciencedirect.com/science/article/pii/S0040603122002714
Bibliography: (Other than references, gather the knowledge directly or indirectly but not use as
references
Appendices:
 Format of data collection
 Format of Questionnaire

Prepared By
Dr. Md. Moazzam Nazri
HOD & Faculty In-Charge of Commerce, Karim City College, Sakchi campus, Jamshedpur