Chapter 1

INTRODUCTION

1.1 Background

Internship is the process of working as an assistant to gain practical experience and skills
in an occupation. In order to expose the students to the actual working environment,
internship has been included as a compulsory requirement for the successful completion
of 3 years BBA under University School of Business Chandigarh University. BBA is a
management program with the provision of 6 semester comprising of 6 weeks industrial
training.

Internship is an opportunity to observe, learn and understand the corporate culture,

acquire knowledge and skills in the respective field which helps the students in their
further carrier development. It is carried out in the organization which suits the area of
specialization.

Internship provides the opportunity to understand how the knowledge acquired through
the lectures, group discussion and formal study is applied in real working situation. It is
the best way of knowledge gaining as it provides as experience. Similarly, the assigned
responsibilities during the internship period help to enhance the interpersonal and
communicative skills and boost up the confidence level as well.

Even though the interns are not the employees of the organizations, they are given an
opportunity to work as if they are the employees. The interns do what the staffs of the
organizations have to do. However, they do not have obligations or authority over
anything.

The interne did his internship in under Mr. Nikhil Gupta (Charted Accountant)

The interne was given the opportunity to observe and learn about the GST Registration
and Return process.
1.2 Objectives of the Study

The general objective of the study is to get practical insights of Goods and Services Tax

The specific objectives are as follows

a. To learn about the GST Registration process.

b. To learn how to file GST Return both online & offline

c. To help clients in the Registration process.

d. To help clients in downloading the offline return software.

1.3 Rational of the study

In college we learn the organizational structure only in theoretical basis. Internship is the
place where how theoretical knowledge are useful in real life scenarios. For that students
need to prepare resumes, write cover letters and go through interviews as if they were
applying for the job. This gives students valuable experience in preparation for
employment.
The internship allows opportunities for the development of practical’s skills in contexts
where professional criticism is both immediate and constructive. It also furnishes
students with opportunities to observe and understand connections between coursework
and skills needed to perform effectively in a given profession. Finally, internship aid in
the identification of knowledge and skills essential to doing well in a particular
profession.

1.4 Scope of the study

Generally, an internship consists of an exchange of services for experience between the

student and an organization Internship program is a good opportunity to show our
learning skills that we get from our school/college. Students can also use an internship to
determine if they have an interest in a particular career. It helps to build Curriculum Vitae
(CV) for the student.

1.5 Methodology

For the preparation of this report both primary and secondary sources of data are used.
The secondary data are collected from annual reports, brochures, website of GST,
different financial magazine, published documents. Most of the information in this report
is written on the basis of experience gained by the internee in the company during the
period of internship.

While preparing this report I took help from company staff and group discussion with
friends. I have consulted related departmental staff as a primary source. For the
secondary data I used gst website, cbec website, financial express website, clear tax
website.

1.6 Organization Selection

Selection of the organization is one of the most difficult task. However, the specialization
of the student in finance has made GST a better option for doing internship. Since GST is
related to financial transaction, it would be easy to understand various dimensions related
to services like registration, quarterly return, monthly return, annual return. Besides this,
one should have strong reference to get enrolment in the organizations.
1.7 Duration

The duration of internship period has been defined for 6 weeks by the Chandigarh
University. The intern has completed internship from 21st May to 5 July 2018 under Mr.
Nikhil Gupta CA.

1.8 Limitations of the Study

Even though great support was provided by the organization and the staff to the intern
during the internship period to make the work environment conducive, they had to face
variours difficulties during the internship period. Due to various unavoidable constraints,
the report could not do complete justice to the study.

The interns in the organization are more focused to assist their supervisors. It restricts the
amount of information and the level of complex work assigned to its interns owing to the
confidentially and competency issues. It is because of this interns get to learn mostly by
observation and some amount of discussion with supervisor only. The report is limited to
the department in which the intern is placed it might not be able to provide the
comprehensive knowledge of the overall functioning of the company.
Chapter 2

Company Profile

About NSG & ASSOCIATES:

We are an Indian chartered accountant firm based in 109, I.P. Tower, Wazirpur Industrial
Area, New Delhi 110052. We provide all sort of chartered accountant services related to
Accounting, Income Tax, Financial Services, Company Law Matters, Goods & Service
Tax, Sales Tax / Vat Matter, EPF/ESI, PAN card services, Service Tax, TDS, Accounting
Entries, Transfer Pricing related matters, Company Registration etc. In order to meet the
specific requirements of the clients, we provide the best possible solution and
consultancy for their respective matters. With the active support we receive from our
competent team of professionals, we have managed to provide the effective services to
our various esteemed clients.

Head office

109, I.P. Tower

Wazirpur Industrial Area

New Delhi 110052

SERVICES

Services No. of Clients

• Company Registration 1

• One Person Company 2

• LLP Registration 3

• Service Tax Registration 4

• GST Registration 5

• Project Financing 8

• ROC Filling 15

• Service Tax Return 16

• GST Returns 17

• TDS Returns 18

• Income Tax (Salaried) 20

• Income Tax (Business) 21

• Tally Accounting 22
Chapter 3

Introduction to Goods and Services Tax (GST)

3.1 About GST

The Good and services tax (GST) is the biggest and substantial indirect tax reform since
1947. The main idea of GST is to replace existing taxes like value-added tax, excise duty,
service tax and sales tax. GST as it is known is all set to be a game changer for the Indian
economy. India as world’s one of the biggest democratic country follow the federal tax
system for levy and collection of various taxes. Different types of indirect taxes are
levied and collected at different point in the supply chain. The centre and the states are
empowered to levy respective taxes as per the Constitution of India. The Value Added
Tax (VAT) when introduced was considered to be a major improvement over the pre-
existing Central excise duty at the national level and the sales tax system at the State
level. Now the Goods and Services Tax (GST) will be a further significant breakthrough
- the next logical step - towards a comprehensive indirect tax reform in the country.

Goods and Services Tax (GST) is an indirect tax which was launched at midnight on 1
July

2017 by the President of India Shri Pranab Mukherjee and Prime Minister of India, Shri
Narendra Modi. The launch was marked by a historic midnight (30 June-1 July) session
of both houses of the Parliament convened at the Central Hall of the Parliament.

GST is applicable throughout India which replace multiple cascading taxes levied by the
central and state governments. It was introduced as The Constitution (One Hundred and
First (Amendment) Act 2017, following the passage of Constitution 122nd Amendment
Act Bill.
3.2 Key features of GST

1. Dual Goods and Service Tax: CGST and SGST

2. Destination-Based Consumption Tax: GST will be a destination-based tax. This

implies that all SGST collected will ordinarily accrue to the State where the consumer
of the goods or services sold resides.

3. Computation of GST on the basis of invoice credit method: The liability under the
GST will be invoice credit method i.e. cenvat credit will be allowed on the basis of
invoice issued by the suppliers.

4. Payment of GST: The CGST and SGST are to be paid to the accounts of the central
and states respectively.

5. Goods and Services Tax Network (GSTN): A not-for-profit, Non-Government

Company called Goods and Services Tax Network (GSTN), jointly set up by the
Central and State Governments will provide shared IT infrastructure and services to
the Central and State Governments, tax payers and other stakeholders.

6. GST on Imports : Centre will levy IGST on inter-State supply of goods and services.

Import of goods will be subject to basic customs duty and IGST.

 7. Maintenance of Records : A taxpayer or exporter would have to maintain separate
details in books of account for availment, utilization or refund of Input Tax Credit of
CGST, SGST and IGST.

8. Administration of GST : Administration of GST will be the responsibility of the GST

Council, which will be the apex policy making body of the GST. Members of GST
Council comprised of the Central and State ministers in charge of the finance
portfolio.

9. Goods and Service Tax Council : The GST Council will be a joint forum of the
Centre and the States. The Council will make recommendations to the Union and the
States on important issues like tax rates, exemption list, threshold limits, etc. One-
half of the total number of Members of the Council will constitute the quorum of
GST council.

figure 3.1: Present taxation system

Business Organizations

Manufacturer Trader Service

Goods Services
 Production Trading Provider Reciver

Central Excise VAT , CST Service Tax

Entry Tax, Luxury Tax, Entertainment Tax, State Cess, Lottery Tax
figure 3.2: Indirect Taxation System in India
 Indirect Taxes

Central Levies State Levies

Central Excise Duty Vat / Sales Tax

Additional Excise Purchase Tax

Duty

Countervailing Duty CST

Add. Spl. Duty of Entry Tax

Customs

Service Tax Luxury Tax

 Figure 3.3: GST model

GST

Central GST State GST Integrated GST

Levied by the Levied by the Levied by the

Centre State Centre & State

This is applicable on supplies

This is applicable This is applicable
within the state.
on supplies on interstate and
within the state. Tax collected will be shared to import
State. transactions. Tax
Tax collected will
collected is shared
be shared to
between Centre
Centre.
and
State

3.3 Dual GST Model

India is a federal country where both the Centre and the States have been assigned the
powers to levy and collect taxes through appropriate legislation. It has been proposed
that there would be a “Dual GST “model in India, taxes will be levied by both centre
(Central GST) and state (State GST) on Goods and Services. Hence, a dual GST would
be according to the Constitutional requirement of fiscal federalism.

3.4 Commodities not subsumed in GST

Alcohol for human consumption Petrol Products Gas and Aviation Turbine Fule– Crude,
Petrol, High Speed Diesel

3.5 Taxes not subsumed in GST

Stamp Duty & Property Tax, Toll Tax, Electricity Duty

3.6 GST Rates in India

• Exempted categories – 0

• Commonly used Goods and Services – 5%

• Standard Goods and Services fall under 1st slab – 12%

• Standard Goods and Services fall under 2nd Slab – 18%

• Special category of Goods and Services including luxury - 28%

3.7 GST Council

• It is set up by president under article 279-A. It is chaired by union finance

minister.

• It will constitute union minister of state in charge of revenue and minister in

charge of finance or taxation or of any other field nominated by state
governments. The 2/3rd representatives in council are from states and 1/3rd from
union.

• It will make recommendations on :

a. Taxes, surcharge, cess of central and states which will be integrated in GST.

b. Goods and services which may be exempted from GST.

c. Interstate commerce – IGST- proportion of distribution between state and

center.

d. Registration threshold limit for GST.

e. GST floor rates.

f. Special rates during calamities.

g. Provision with respect to special category states specially north east states.

• It may also work as Dispute Settlement Authority for GST.

• The Council would consist of 2/3rd representation of states and 1/3rd representation
of the Centre. The GST Council will take all decisions regarding tax rates, dispute
resolution, exemptions and so on. Recommendations of the GST Council (75%
votes) will be binding on the Centre and the States.
3.8 Goods and Services Tax Network (GSTN)

Goods and Services Tax Network has been set up by the Government as a private
company under erstwhile Section 25 of the Companies Act, 1956. GSTN would provide
three front end services, namely Registration, Payment and Return to taxpayers. It will
also assist some State with the development of back end modules.

3.9 GSTIN

Goods and Services Identification Number is a 15 digit alphanumeric number.

First two digit shows the State code,

Another ten digit shows the Permanent Account Number (PAN).

Next number shows the entity number of the same PAN holder in a state.

Next is alphabet Z by default.

Next is the check sum digit.

GST Identification Number

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
State PAN Entity Code/
code Check digit
3.10 SWOT Analysis

Strengths

• GST provides a comprehensive and a wider coverage of input credit set off
service tax credit could be used for the payment of tax on the sale of goods etc.

• A single GST could be used instead of other indirect taxes at the state and central
level.

• It would end the cascading effects.

• There would be uniformity of tax rates across the states.

• It ensures better compliance as the aggregate tax reduces.

• It helps in the reduction of prices of the goods and services to the consumer with
the reduction of tax.

• It would reduce transaction costs and unnecessary wastage to both government

and individuals.

• It encourages transparency and unbiased tax structure.

• It brings efficiency in the indirect tax mechanism.

Weaknesses

• It doesn’t include alcohol and petroleum products which would lead to incurring
of huge losses.

• It requires strong IT infrastructure which is not highly developed in India.

• Single GST rate would be high compared to individual indirect tax rate.

• In reality, it might result in a dual tax system in which both state and the Centre
would collect tax separately.

• Dealers paying VAT in the state will be required to pay GST at the Centre
 • Sudden implementation of GST might create confusion to the common man.

Opportunities

• Reduction in tax burden will increase the competitiveness of Indian products in

the international market

• There would be a gradual increase in the revenues of state and the union

• Helps reducing corruption as the implementation of GST would result in a

gradual decrease of procedures and formalities

Threats

• It is entirely dependent on the efficiency and effectiveness of the system

• Beneficiaries of the system are uncertain. It could be either state or the Centre.
This would create a chaos while preparing budgets and financing polices
• Lack of co-ordination between the Centre and the state might affect the system
and also the revenues generated

Interpretation of the SWOT Analysis

From the above SWOT analysis it is clear that GST would create uniformity of taxes and
also reduce tax burden. This in turn would increase revenues of the state and the union at
the country level and increase competition at the international level. But this in reality
might appear to be a dual tax system and would also require a strong IT infrastructure.
Besides this, it is entirely dependent on the efficiency of the system. Co-ordination
between the Centre and the state only can help in its implementation and execution of the
proposed plan. Therefore before implementation of such a tax regime, it should be
carefully examined at every levels to benefit all the stakeholders.
Chapter 4

Impact of GST on various sectors

IT

Currently IT sector is paying 14 percent of tax to the authority and subjected to 18-20
percent after the imposition of GST. Also an important point to notice here, that the long
disputed issue of canned software taxation will also come to end as their will no
difference arise between goods and services after the GST. Overall impact could be
suggested here is neutral or slightly negative.

Telecom

In the current stage, the Telecom sector is paying 14 percent of tax to the government
body, but the scenario takes the shift after the imposition of GST. The rate arise to 18
percent and the companies expect to pass the burden on the post-paid customers. There is
also a lower input tax credit in this sector's capex cost. Overall, it seems that this regime
will be negative to the industry and the sector will also be in state where they can't pass
the entire tax burden to the customers especially their prepaid segment.

Automobiles

Currently, automobile sector pays around 30 to 47 percent tax to the Government which
is now expected to range between 20-22 per cent, after the implementation of GST. And
the overall cost cutting can be expected for the end user by around 10 per cent.
Transportation time should also be reduced as the check points and octroi is cleared
hands before. Overall GST will bring a smile into the automobile sector.

Cement

In the current scenario, cement sector is presenting 27 to 32 per cent of their share to the
tax authority. After the rolling out of GST, this will improve the sector growth in various
terms, like transportation by 20-25 per cent and in the warehouse scheme as the
rationalization would be easy in terms of state wise fragmentation and also in the
transportation cost as reduced transit time.

Pharmacy

Here, the impact could be neutral as the sector only shares 6 per cent of his share to the
tax authority. The sector also avails the incentives in tax benefits of location wise. There
are various concessional benefits and exemptions held for this sector and will extend till
the expiry of the period. The implications of GST would also try to reduce the logistics
cost and would also try to see in to the matter of inverted duty structure.

Banking and Financial Institutions

The sector is paying 14 percent right now, but not on the interest part of transaction. After
the GST implied, the tax horizon can expand up to 18 to 20 percent on the fee based
transactions. Overall input expense of operations will likely to increase and also hike in
the transactions of financial in nature such as loan processing fees, debit/credit charges,
insurance premiums etc.

4.1 Result Analysis

Basic concept of GST

Importer to wholesaler
Gold 100000 100000
Sales Tax (14%) 14000 -
duty (12.5%) 12500 -
Excise Duty (1%) 1000 -
CGST (18%) - 18000
Grand Total 127500 118000

wholesaler to retailers
 Price 127500 118000
Add margin (10%) 12750 11800
other charges (rent, transport) 15000 15000
Sub Total 155250 144800
Sales Tax (14%) 21735 -
SGST (18%) - 26064
Total Price 176985 170864
figure 4.1: How GST work

Effect on IT Industrial
M&G LTD.

Software for school uses 9500 9500

Service Tax (14%) 1330 -
GST (5%) - 475
Grand Total 10830 9975
figure 4.2: Effect on IT Sectors

Effect on Manufactory Industrial

Whirlpool 6.5 kg Fully Automatic Top Load
Washing Machine
Price (exclusive Tax) 15490 15490
Sales Tax (14.5%) 2168.6 -

GST (12%) - 1858.8

Grand Total 17658.6 17348.8

figure 4.3: Effect on Home use Products Rates

Effect on LED T.V. Price
SONY BRAVIA 32" KLV 32R306

Price (exclusive tax) 20700 20700

Sales Tax (14.5%) 3001.5 -
GST (18%) - 3726
Grand Total 23701.5 24426

figure 4.4: Effect on Home use Product Rates

Effect on Spare Parts Price

Motor vehicle spare parts
Names Qt Per Unit Total Price
Price
Throttle Body Cleaning 5 750 3750 3750
AC Disinfectant 4 700 2800 2800
AC Servicing of Maruti
Car Including Gas
Refill and Labour 10 2500 25000 25000
Charges
Sub-
Total 31550 31550
Sales Tax (14.5%) 4574.8 -
Surcharges (2%) 631 -
GST (12%) - 3786

Grand Total 36756 35286

figure 4.5: Effect on Automobile Product Price
Effect on mobile company
Description Qt MRP VAT/CST KKC Net Net
Amount Amount
(exclusive (in GST)
of taxes)
Redmi 3S Grey 1 8.999 5.50% - 8530 8530
32G
Mi Protect 1 599 14.50% 0.50% 521 521
Sub Total 9051 9051
VAT/CST 469 -
ST 76 -
GST (18%) - 1629
KKC 3 -
Grand Total 9598 10680
figure 4.6: Effect on Mobile Rates

4.2 Impact of GST on Indian Economy

Reduce tax burden on producers and foster growth through more production. This
double taxation prevents manufacturers from producing to their optimum capacity
and retards growth. GST would take care of this problem by providing tax credit to
the manufacturer.

• Various tax barriers such as check posts and toll plazas lead to a lot of wastage for
perishable items being transported, a loss that translated into major costs through
higher need of buffer stocks and warehousing costs as well. A single taxation
system could eliminate this roadblock for them.
• A single taxation on producers would also translate into a lower final selling price
for the consumer.
• Also, there will be more transparency in the system as the customers would know
exactly how much taxes they are being charged and on what base.
• GST would add to government revenues by widening the tax base.
 • GST provides credits for the taxes paid by producers earlier in the goods/services
chain. This would encourage these producers to buy raw material from different
registered dealers and would bring in more and more vendors and suppliers under
the purview of taxation.
• GST also removes the custom duties applicable on exports. Our competitiveness
in foreign markets would increase on account of lower cost of transaction.
• The proposed GST regime, which will subsume most central and state-level taxes,
is expected to have a single unified list of concessions/exemptions as against the
current mammoth exemptions and concessions available across goods and
services

The introduction of Goods and Services Tax would be a very noteworthy 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 alleviate cascading or double taxation in a major
way and pave the way for a common national market.

Chapter 5

GST REGISTRATION & RETURN

1) Every person who is liable to be registered under Schedule III of this Act, shall
apply for registration in every such State in which he is liable within 30 days from
the date of which he becomes liable to registration, in such manner and subject to
such conditions as may be prescribed.
2) Notwithstanding anything contained in sub-section (1), a person having multiple
business verticals in a State may obtain a separate registration for each business
vertical, subject to such conditions as may be prescribed.
3) A person, though not liable to be registered under Schedule III, may get himself
registered voluntary, and all provisions of this Act, as are applicable to a
registered taxable person, shall apply to such person.
4) Every person shall have a Permanent Account Number issued under the Income
Tax Act, 1961 (43 of 1961) in order to be eligible for grant of registration under
subsection (1), (2) or (3).
5) Where a person who is liable to be registered under this Act fails to obtain
registration, the proper officer may, without prejudice to any action that is, or may
be taken under this Act, proceed to register such person in the manner as may be
prescribed.
6) The registration or the Unique Identity Number, shall be granted or, as the case
may be, rejected after due verification in the manner and within such periods as
may be prescribed.
7) A registration or an Unique Identity Number shall be deemed to have been
granted after the period prescribed under sub-section (7), if no deficiency has
been communicated to the applicant by the proper officer within that period.
8) Notwithstanding anything contained in sub-section (7), any rejection of
application for registration under the CGST/SGST Act shall be deemed to be a
rejection of application for registration under the CGST/SGST Act.
9) The Central or State Government may, on the recommendation of the Council, by
notification, specify the category of persons who may be a exempted from
obtaining registration under this Act.
 figure 5.1 GST registration page

figure 5.2: GST Identification Number

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
State PAN Entity Code/
code Check digit
5.1 Amendment of Registration

• Every registered taxable person shall inform the proper officer of any changes
in the information furnished at the time of registration, or that furnished
subsequently, in the manner and within such period as may be prescribed.
• The proper officer may, on the basis of information furnished under sub-
section (1) or as ascertained by him, approve or reject amendments in the
registration particulars in the manner and within such period as may be
prescribed, provided that approval of the proper officer shall not be required
in respect of amendment of such particulars as may be prescribed.
• The proper officer shall not reject the request for amendment in the
registration particulars without giving a notice to show cause and without
giving the person a reasonable opportunity of being heard.
• Any rejection or approval of the amendments under the CGST/SGST Act
shall be deemed to be rejection or approval of amendments under the
CGST/SGST Act.

5.2 Tax Invoice :

A registered taxable person supplying –

i. taxable goods shall issue, at the time of supply, a tax invoice showing the
description, quantity and value of goods, the tax charged thereon and such other
particulars as may be prescribed;
ii. taxable service shall issue a tax invoice, within the prescribed time, showing the
description, the tax charged thereon and such other particulars as may be
prescribed;

Provided that a registered taxable person may issue a revised invoice against the invoice
already issued during the period starting from the effective date of registration till the
date of issuance of certificate of registration to him;
Provided further that a registered taxable person supplying non-taxable goods or services
or paying tax under the provision of Section 8 shall issue, instead of a tax invoice, a bill
of supply containing such particulars as may be prescribed;

5.3 GST RETURNS

Every registered taxable person shall, for every calendar month or part thereof, furnish,
in such form and in such manner as may be prescribed, a return, electronically, of inward
and outward supplies of goods or services, input tax credit availed, tax payable, tax paid
and other particulars as may be prescribed within 20 days after the end of such month:

Provided that a registered taxable person paying tax under the provisions of Section 8 of
this Act shall furnish a return for each quarter or part thereof, electronically, in such form
and in such manner as may be prescribed, within 18 days after the end of such quarter:
Every registered taxable person, who is required to furnish a return under sub-section (1)
shall pay to the credit of the appropriate Government the tax due as per such return not
later than the last date on which he is required to furnish such return.

A return furnish under the sub-section (1) by a registered taxable person without payment
of full tax due as per such return shall not be treated as a valid return for allowing input
tax credit in respect of supplies made by such person. Every registered taxable person
shall furnish a return for every tax period under sub-section (1), whether or not any
supplies of goods or services have been effected during such tax period.

Note: Subject to the provisions of Section 25 and 26, if any taxable person after
furnishing a return discovers any omission or incorrect particulars therein, other than as a
result of scrutiny, audit, inspection or enforcement activity by the tax authorities, he shall
rectify such omission in the return to be filed for the month or quarter, as the case may
be, during which such omission are noticed, subject to the payment of interest, where
applicable and as specified in the Act:

figure 5.3 Types of GST Returns

S.No. Return Particulars

1 GSTR-1 Details of outward supplies of taxable goods or services.

2 GSTR-2 Details of inward supplies of taxable goods or services.

3 GSTR-3 Monthly return on the basis of details of inward and outward

supplies along with the payment of amount of tax.

4 GSTR-4 Quarterly Return for compounding taxable persons.

5 GSTR-5 Return for Non-Resident foreign taxable persons.

6 GSTR-6 Input Service Distributor return.

7 GSTR-7 Return for authorities deducting tax at source.

8 GSTR-8 Details of supply affected through e-commerce operator.

9 GSTR-9 Annual Return

1) What is GSTR-1?

GSTR-1 is a monthly return that should be filed by every registered dealer by the 10th of
the following month. It is the first or the starting point for passing input tax credit to the
dealers. It contains details of all outward supplies i.e. sales.

GSTR-1 has to be filed by "all" taxable registered persons under GST. However, there
are certain dealers who are not required to file GSTR-1, instead are required to file other
different GST returns as the case may be. These dealers are E-Commerce operators, Non-
Resident dealers and Tax deductors. It has to be filed even in cases where there is no
business conducted during the reporting month.
figure 5.4 GSTR-1 Registration

How to file GSTR-1 ?

The Suppliers need to log in to the GSTN portal with the given User ID and Password,
following these steps :

• Search for "Services" and then click on Returns, followed by Returns Dashboard.

• In the Dashboard, the dealer has to enter the financial year and the month for
which the return needs to be filed. Click on Search after that.
• All returns relating to this period will be displayed on the screen.

• Dealer has to select the tile containing GSTR-1

• After this, he will have the option either to prepare online or to upload the return.

• The dealer will now Add invoices or upload all invoices directly.
• Once the entire form is filled up, the dealer shall then Click on Submit and
validate the data filled up
• With the data validated, dealer will now click on FILE GSTR-1 and proceed to
either E-Sign or digitally sign the form.
• Another confirmation pop-up will be displayed on the screen with a yes or no
option to file the return.
• Once Yes is selected, an Acknowledgement Reference Number (ARN) is
generated.
 -

2) What is
GSTR 2 ?

It is mandatory to furnish details of inward supplies of goods/services received during a tax

period for every registered taxable person. These details are furnished based on FORM
GSTR-2A which is auto populated on the basis of GSTR 1 filed by your supplier,
electronically through the Common Portal, either directly or from a Facilitation Centre.
However, GSTR 2A does not in itself auto populates a complete GSTR 2, as there are certain
other transactions which are to be mentioned manually in addition to the data which is
generated through GSTR 2A, viz. Details of Inward Supplies from an Unregistered Persons
on which tax is paid on the Reverse Charge basis and Imports effected during the tax period,
etc.

Who can file GSTR-2 ?

It is mandatory to file a GST Return for each and every entity registered under the GST
Act. Even in case where there are no inward supplies during the tax period, NIL return for
that period is required to be filed.
 -
In case of failure to file the return within due period, the tax payer is penalized with the late
fees of INR 100 per day up to a maximum limit of INR 5,000/-

When to file GSTR-2 ?

• Every registered taxable person is required to furnish details of Inward Supply for a
tax period i.e. the end of the relevant month.
• This return has to be filed by the recipient of (goods/services) supplies within 15 days
from the end of the relevant tax period.
• However to facility the ease of payment and return filing for small and medium scale
businesses with annual aggregate turnover up to Rs.1.5 crores, it has been decided in
the 22nd GST Council meeting dated 06th October 2017, that such tax payers shall be
required to file quarterly returns in Form GSTR 1,2 and 3 and pay taxes only on
quarterly basis, starting from the third quarter of this financial year, i.e. October to
December 2017.

3) What is GSTR 3?

GSTR-3 is a return to be filed on monthly basis (compounding and ISD taxpayers are
exceptions). GSTR-3 is more like a pooled version of GSTR-1 and GSTR-2. The form
captures the information of outward and inward supply information at aggregate level which
will be auto populated through GSTR-1, GSTR-1A and GSTR-2.It will comprise of the entire
turnover related details, including, local sales turnover, export sales turnover, exempted local
sales turnover, turnover except GST and taxable turnover. A taxpayer just has to validate this
prefilled information and make modifications if required.
 -

4) What is GSTR 4 ?

Compounding taxpayers would have to file a quarterly return called GSTR-4. Taxpayers
otherwise eligible for the compounding scheme can opt against the compounding and file
monthly returns and thereby make their supplies eligible for ITC in hands of the purchasers.
Compounding taxpayer will also file a simple Annual return (GSTR-9)

5) What is GSTR-5 ?
 -
Non –Resident Taxpayers would have to file GSTR-1, GSTR-2 and GSTR-3 returns for the
period for which they have obtained registration. The registration of Non–Resident taxpayers
will be done in the same manner as that of Regular taxpayers. Non-Resident Taxpayers would
be required to file GSTR-5 return for the period for which they have obtained registration
within a period of seven days after the date of expiry of registration. In case registration
period is for more than one month, monthly return(s) would be filed and thereafter return for
remaining period would be filed within a period of seven days as stated earlier.

6) Annual Return

Every registered taxable person, other than an input service distributor, a deductor under
Section 37, a casual taxable person and a non-resident taxable person, shall furnish an annual
return for every financial year electronically in such form and in such manner as may be
prescribed on or before the thirty first day of December following the end of such financial
year. Every taxable person who is required to get his accounts audited under sub-section(4) of
section 42 shall furnish, electronically the annual return along with the audited copy of the
annual accounts and a reconciliation statement, reconciling the value of supplies declared in
the return furnished for the year with audited annual financial statement, and such other
particulars as may be prescribed.
 figure 5.5 Challenges faced during Return Filing

VAT GST

Interaction with Government for compliance

Once a Quarter or Month 3 times Every Month

Return filing

Summary of Sales/Purchases needs Need to upload Every Transaction

to be filed

Invoice Matching

Not Monitored extensively Invoices of Supplier and Recipient

need to Match

Input Credit

Availed based on Returns Can be availed only when Invoices

are matched and seller pays tax
ACCOUNTS AND RECORDS

Every registered person shall keep and maintain, at his principal place of business, as mention
in the certificate of registration, a true and correct accounts of production or manufacture of
goods, of inward or outward supply of goods and services, of stocks of goods, of input tax
credit availed, of output tax payable and paid, and such other particulars as may be prescribed
in this behalf:
Provided that where more than one place of business is specified in the certificate of
registration, the accounts relating to each place of business shall be kept at such places of
business concerned:
Provided further that the registered person may keep and maintain such accounts and other
particulars in the electronic form in the manner as may be prescribed.
The Commissioner may notify a class of taxable persons to maintain additional accounts or
documents for such purpose.
Every registered taxable person whose turnover during a financial year exceeds the prescribed
limit shall get his accounts audited by a chartered accountant or a cost accountant and shall
submit to the proper officer a copy of the audited statement of accounts, the reconciliation
statement under sub-section (2) of section 30 and such other documents in the form of
manner as may be prescribed in this behalf.

Period of retention of accounts

Every registered taxable person required to keep and maintain books of account or other
records under sub-section (1) of section 42 shall retain them until the expiry of sixty months
from the last date of filing of Annual Return for the year pertaining to such accounts and
records:
Provided that a taxable person, who is a party to an appeal or revision or any other
proceeding before any Appellate Authority or Tribunal or Court, whether filed by him or by
the department, shall retain the books of account and other records pertaining to the subject
matter of such appeal or revision or proceeding for a period of one year after final disposal
of such appeal or revision or proceeding, or for the period specified under sub-section (1),
whichever is later.
 Introduction of TDS

Every individual, company, firm, organisation are affected by the tax laws. Taxation enables
the government to mobilise a substantial amount of revenue. The tax revenue is generated by
imposing direct taxes and indirect taxes. The report analyses the types of Direct taxes and
Indirect Taxes and in-depth study of the taxes which are levied by the TPDDL.

WHAT IS TDS?

TDS means Tax Deducted Source. It is the amount withheld from payments of various kinds
such as salary, contract payment, commission, etc. This withheld amount can be adjusted
against your tax. TDS is one of the modes of collecting Income-tax from the assesses in India.
This is governed under Indian Income Tax Act, 1961, by the Central Board for Direct Taxes
(CBDT) and is part of the Department of Revenue managed by Indian Revenue Service (IRS).
A method of tax collection on income assessments in India. The tax collection can be affected
if the income increases. The taxpayer pays tax on income from the preceding year. Tax
collection is therefore delayed until the year has been completed. In order to prevent from
hiding income, the government collects some amount of tax owed from the amount that is
receivable by the tax payer. Income is earned over a period of time but the assessment/
determination of tax liability takes place much later. To avoid a liquidity problem for the tax
payer and also to ensure a regular flow of revenue for the government, the Income tax Act has
provided for periodic recovery of tax from income liable to tax by requiring the tax to be
deducted at source from certain income/payments as and when such

income/payments are credited. The concept of TDS is that the person responsible for making
certain specified payments is required to deduct tax at the prescribed rates from the payments
made to a specified recipient in accordance with the provisions of the Income Tax Act.
Importance of e-TDS Returns - The computerised processing of the e-TDS returns filed
by tax deductors is now in sync with the processing of individual returns of income filed by the
deductees. In view of this,credit for the taxes deducted at source by the deductor cannot be
given only on the basis of TDS certificates mentioned in the return of income. The deductee is
given credit for the taxes deducted only if the tax deducted has been paid and the deductor has
filed the relevant quarterly e-TDS Return. It is also essential that in the e-TDS Return, the
correct PAN of the deductee and the amount deducted is mentioned. The details of payment i.e
BSR code, serial number and date of payment should also be correctly mentioned in the return.

Claim for refund - A claim for refund for TDS paid to the credit of the Central
Government shall be furnished by the deductor in Form No.26B electronically under Digital
Signature.

AUDIT

Audit by tax authorities :

1. The Commissioner of CGST/SGST or any officer authority by him, may undertake audit
of the business transactions of any taxable person for such period, at such frequency and in
such manner as may be prescribed.

2. The tax authorities referred to in sub-section (1) may conduct audit at the place of business
of the taxable person or in their office.
1. The taxable person shall be informed by way of notice, sufficient in advance, not less
than 15 working days, prior to the conduct of audit.
2. The audit under sub-section (1) shall be carried out in a transparent manner and
completed within a period of three months from the date of commencement of audit.
3. During the course of audit, the authorized officer may require the taxable person,

• to afford him the necessary facility to verify the books of accounts or other
documents as he may require.
 • to furnish such information as he may require and render assistance for timely
completion of the audit.
6. On conclusion of audit, the proper officer shall without delay inform the taxable person,
whose records are audited, of the findings, the taxable person's rights and the obligations
and the reasons for the findings.
7. Where the audit conducted under sub-section (1) results in detection of tax not paid or
short paid, the officer may initiate action under section 51.

E Filing of Income Tax Return

E filing or electronic filing is submitting your income tax returns online. ... The traditional
way is the offline way, where you go the Income Tax Department's office to physically file
your returns. The other way is when you e-file through the internet.

ITR-1• Can be used by an individual having : ▫ Income from salary/pension; or

▫ Income from one house property (excluding cases where loss is brought forward from
previous years); or

▫ Income from other sources

▫ Clubbing of Income if income falls in above categories.

ITR-1

• Cannot be used by Individuals having

▫ income from more than one house property. ▫ income from winnings from lottery or
income from race horses. ▫ income chargeable to tax under the head "Capital Gains“ or
“Business or profession”. ▫ exempt income of more than Rs. 5,000. ▫ loss under the head
“Other sources“ or House Property. ▫ claimed relief under Section 90 and/or Section 91 ▫
Who is a resident and ordinarily resident and having any assets (including financial interest
in any entity) located outside India or signing authority in any account located outside
India.

ITR-2  Can be used by Individuals having

 Income from Salary / Pension; or

▫ Income from House Property (From more that 1 House property)

▫ Income from Capital Gains; or

▫ Income from Other Sources (including winnings from lottery and income from race
horses).

▫ Exempt Income exceeding Rs. 5000.

▫ Clubbing of Income if income falls in above categories.

ITR-2

• cannot be used by an

▫ individual or HUF

▫ income is from Business or Profession.

ITR-3

• can be used by an individual or a Hindu Undivided Family ▫ who is a partner in a firm

▫ Income "Profits or gains of business or profession"

▫ the income by way of :

 Interest

 Salary, bonus, commission or remuneration

 Received from that Firm.

ITR-3
• In case a partner of the firm does not have any income from the firm by way of interest,
salary, etc., and has only exempt income by way of share in the profit of the firm, he shall
use Form ITR – 3 only and not Form ITR-2.

ITR - 3

• cannot be used by

▫ an individual or HUF

▫ whose total income for the year includes income from Business or Profession under any
proprietorship.

ITR-4S

• Can be used by : ▫ Individual/HUF having

 Business income computed as per the provisions of Section 44AD or 44AE

 Income for which Form ITR – 1 can be used.

ITR-4S

• The Form cannot be used by : ▫ Individual/HUF having

 Income from speculative business and other special incomes.  Income from profession
as referred to in section 44 AA(1).  income from agency business / commission /
brokerage.  Presumptive income but the assessee wants to get himself audited u/s 44AB.

ITR-4

• Can be used by
▫ an individual or a Hindu Undivided Family who is carrying on a proprietary business or
profession.

▫ Has any other income apart from above.

ITR-5 • Can be used by

▫ Partnership firm including LLP.

▫ Association of Persons

▫ Body of Individuals

▫ Artificial juridical person

▫ Cooperative society

▫ Local authority.

ITR-6 • Can be used by

 a company,

 Unless it is claiming exemption under section 11 (charitable/religious trust can claim

exemption under section 11).

ITR-7

•Can be used by

• persons including companies who are required to furnish return under • Section 139(4A)
– Charitable Trusts

• Section 139(4B) – Political Party

 • Section 139(4C) and Section 139(4D) – research Association, News Agency, professional
bodies, educational institutions, trade unions, etc

Special Audit

If at any stage of scrutiny, enquiry, investigation or any other proceedings before him, any
officer not below the rank of [Deputy/Assistant Commissioner] having regard to the nature
and complexity of the case and the interest of revenue, is of the opinion that the value has not
been correctly declared or the credit availed is not within the normal limits, he may, with the
prior approval of the [Commissioner], direct such taxable person by notice in writing to get
his records including books of account examined and audited by a chartered accountant or a
cost accountant as may be nominated by the [Commissioner] in this behalf.

OFFENCES AND PENALTIES

Offences and penalties :

Where a taxable person who –

• supplies any goods or services without issue of any invoice or issue any false
invoice with regard to any such supply ;
• issue any invoice or bill without supply of goods or services in violation of the
provisions of this Act ;
• collects any amount as tax but fails to pay the same to the credit of the appropriate
Government beyond a period of three months from the date on which such
payment becomes due ;
• fails to deduct the tax in terms of sub-section (1) of section 37, or deduct the
amount which is less than the amount required to be collected ;
• fraudulently obtains refund of any CGST/SGST under this Act ;

• is liable to be registered under this Act but fails to obtain registration ;

• transport any taxable goods without the cover of documents ;

 • fails to keep, maintain or retain books of account ;

• issues any invoice by using the identification number of another taxable person ;

• destroys any material evidence ;

• fails to furnish information and/or documents called for by a CGST/SGST officer

in accordance with the provisions of this Act or rules made there under or furnishes
false information and/or documents during any proceedings under this Act;
• supplies, transports or stores any goods which he has reason to believe are liable to
confiscation under this Act;

Any person who contravenes any of the provisions of this Act or rules made
there under for which no penalty is separately provided for in this Act, shall
be liable to a penalty which may extend to Rs. 25,000/-

STATEMENT ANALYSIS IN EXCEL SHEET

Name of the party

 Bank statement analysis for GST in excel sheet

Business Inflow of the Company

Business Outflow of the Company

Personal Inflow of the Company

Personal Outflow of the Company

 Summary Report

Chapter 6

23rd GST Council Meeting Summary:–

 Changes in the tax slabs :-

Taxes on over 200 items have been squeezed and a whopping 88% of the items from the
highest slab of 28% have been switched to 18%. Out of the 228 items in the 28% category,
only 50 have been retained and the rest 178 have been slid downwards to different tax
brackets. 2 items saw a dip from 28% to 12%, 6 items from 18% to 5%, 8 items from 12% to
5% and 6 items from 5% to nill.

Changes in the composition scheme :-

- Manufacturers and traders would now operate at a standard rate of 1%.

- The threshold to opt GSTR-3B along with payment of tax will now need to be filed by 20th of
the next month till March 2018.

- Threshold for the composition scheme has been increased to Rs. 1.5 crores from the current
limit of Rs. 1 crore.

Softened fines on late filing :-

- Fine for late returns has been slashed by 90% to a mere Rs. 20 per day from Rs. 200 per day
for a taxpayer with nil liability.

- Late fine for not submitting the GSTR-3B within due dates for the month of July, August and
September 2017 has been waived off.

Relaxed deadlines for filing returns :-

- GSTR-3B along with payment of tax will now need to filed by 20th of the next month till
March 2018.

- Taxpayers divided into two categories for filing GSTR-1 till March 2018.

The categories are :-

Businesses with an annual aggregate turnover of upto 1.5 crores will file
GSTR-1 quarterly.

Period New Due Date

July - September 31 – Dec - 2017

October - December 15 – Feb - 2018

January - March 30 – April - 2018

Business with an annual aggregate turnover of above 1.5 crores will file
GSTR-1 monthly.

Period New Due Date

July – October 31 – Dec - 2017
November 10 – Jan - 2018
December 10 – Feb - 2018
January 10 – Mar - 2018
February 10 – Apr - 2018
March 10 – May - 2018

Conclusion

It can be concluded from the above discussion that GST will provide relief to producers and
consumers by providing wide and comprehensive coverage of input tax credit set-off, service
tax set off and subsuming the several taxes. Efficient formulation of GST will lead to
resource and revenue gain for both Centre and States majorly through widening of tax base
and improvement in tax compliance. It can be further concluded that GST have a positive
impact on various sectors and industry. Centre has decided to review the existing exemptions
from Central Excise Duty so that list of goods exempt from CGST and SGST list and 99
items exempted from VAT are taken off from both the components of GST. VAT has to some
extent reduced tax-evasion and frauds. It is encouraging to note that most of the traders and
general public are aware of VAT. GST, the major reforms on indirect taxes, will reduce tax
burden due to cascading effect. The efficiency in tax administration will be improved,
indirect tax revenue will be increased considerably due to inclusion of more goods and
services, and at last the cost of compliance will be reduced for the dealers. The
implementation of GST will be in favor of free flow of trade and commerce throughout the
country. This single most important tax reform initiative by the Government of India since
independence provides a significant fillip to the investment and growth of our country’s
economy. To get the desired result, it should be assured that the benefit of input credit is
ultimately enjoyed by final consumers. Although implementation of GST requires
concentrated efforts of all stake holders namely, Central and State Government, trade and
industry. GST effect the indirect taxation systems and help reduce the burden on tax payer.
GST help to reduce the burden of record make and file maintain. Because GST cover 10-12
Tax. GST reduce the price of various goods and increase the sale. After the implementation of
GST indirect taxation systems will remove and it easy to all tax payer to pay the tax to
government. Efficient formulation of GST will lead to resource and revenue gain for both
Centre and States majorly through widening of tax base and improvement in tax compliance.
It can be further concluded that GST have a positive impact on various sectors and industry.

Although implementation of GST requires concentrated efforts of all stake holders namely,
Central and State Government, trade and industry.
Reference

• www.gst.gov.in

• www.gstn.org

• www.gstcouncil.gov.in

• www.cbec.gov.inwww.cleartax.com