NAME : G.

IMMANUVEL
REGISTER NO. : 311422631036
BATCH : 2022-24
SEMESTER. II
INTERNSHIP DURATION. : 30 DAYS

INTERNSHIP REPORT ON INTERNAL AUDIT USING TALLY

UNDERTAKEN AT GAYATHRI & ASSOCIATES CHARTERED
ACCOUNTANTS

INTRODUCTION

Audit is the examination or inspection of various books of accounts by an auditor followed by

physical checking of inventory to make sure that all departments are following documented
system of recording transactions. It is done to ascertain the accuracy of financial statements
provided by the organisation. Audit can be done internally by employees or heads of a
particular department and externally by an outside firm or an independent auditor. The idea is
to check and verify the accounts by an independent authority to ensure that all books of
accounts are done in a fair manner and there is no misrepresentation or fraud that is being
conducted. All the public listed firms have to get their accounts audited by an independent
auditor before they declare their results for any quarter.

COMPANY PROFILE

The Audit firm is founded by Mrs.CA R .Gayathri, M.com., FCA having more than 20 years
of experience focusing on audit & assurance, internal audit, risk governance and Direct &
Indirect taxation services. She has worked for national and multi-national companies and a
trusted advisor to the senior management with a proven track record. Mrs.CA.S.Muddassir,
FCA, ACMA, ACS, who has experience around 15 years had joined the firm. She has domain

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expertise in assessments, tax audits, tax planning, appeals, litigations, search and surveys. The
core strength of the firm lies in its team and their efforts. The team is a blend of experienced,
young & energetic chartered accountants, infused with specialized skills and competence.

JOB PROFILE

1. Audit & Assurance: Statutory Audit under various Statutes, IFRS & Ind AS
conversions & Compliances.
2. Risk Advisory: Internal Audit, Management Audit, Standard Operating Procedures –
Drafting & Revamping, Internal Finance Controls, IT review and Assessment of
Controls, Compliance review and support, Preparation of project reports along with
Liaison with bankers, corporate affairs and compliances, Book keeping services,
Preparation of MIS reports.
3. Direct Taxation: Transfer pricing – Domestic & International ¬ M&A Tax services,
Litigation Advisory, Assessments, Tax audits, Search & Survey, International Tax
Advisory
4. Indirect Taxation: GST Compliances and Advisory, Litigations Advisory, Foreign
Trade Policy compliance, Import Regulations review & compliance
5. Outsourcing Services: Cost optimization & Revenue maximization, Business Process
reviews, Accounting Services, Payroll Services, Asset/inventory verification,
reconciliation & registers, Automation of compliance services – Consolidation process,
Contracts, Fixed assets, Legal compliances etc., Filing of Income tax returns, e-TDS
returns, GST returns, ROC returns indirect tax, Incorporation of Companies, LLP,
Partnership firms and all applicable registrations with various authorities

EXPERIENCE OF THE INTERN

Internship training at GAYATHRI & ASSOCIATES CHARTERED ACCOUNTANTS has

helped the intern to gain knowledge about INTERNAL AUDIT USING TALLY, where the
intern was taught about importance of internal audit using tally and roles of an auditor. The
intern was also provided with few companies audit details for their reference and that helped
them to learn audit using tally. The intern was also taught about tally in detail, recording day
to day business data of the company.

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The intern had real time experience of auditing various companies transaction. Traditionally,
audits were mainly associated with gaining information about financial systems and the
financial records of a company or a business

CONCLUSION

Audit is the examination or inspection of various books of accounts by an auditor followed by

physical checking of inventory to make sure that all departments are following documented
system of recording transactions. It is done to ascertain the accuracy of financial statements
provided by the organisation. Audit can be done internally by employees or heads of a
particular department and externally by an outside firm or an independent auditor. The idea is
to check and verify the accounts by an independent authority to ensure that all books of
accounts are done in a fair manner and there is no misrepresentation or fraud that is being
conducted. Overall Internship on Audit helped the intern to know about the strategies and
techniques used and to gain knowledge how Audit works in real world.

The staff of the GAYATHRI & ASSOCIATES CHARTERED ACCOUNTANTS were helpful
and guided effectively during the internship period.

Signature of student

(G.IMMANUVEL)

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 INTRODUCTION

Audit is the examination or inspection of various books of accounts by an auditor followed by

physical checking of inventory to make sure that all departments are following documented
system of recording transactions. It is done to ascertain the accuracy of financial statements
provided by the organisation.

Audit can be done internally by employees or heads of a particular department and externally by an
outsidefirm or an independent auditor. The idea is to check and verify the accounts by an independent
authority to ensure that all books of accounts are done in a fair manner and there is no
misrepresentation or fraud that is being conducted.

All the public listed firms have to get their accounts audited by an independent auditor before they
declaretheir results for any quarter.

Who can perform an audit? In India, chartered accountants from ICAI or The Institute of
Chartered Accountants of India can do independent audits of any organisation. CPA or Certified
Public Accountantconducts audits in USA.

There are four main steps in the auditing process. The first one is to define the auditor’s role and the
termsof engagement which is usually in the form of a letter which is duly signed by the client.

The second step is to plan the audit which would include details of deadlines and the departments the
auditor would cover. Is it a single department or whole organisation which the auditor would be
covering. The audit could last a day or even a week depending upon the nature of the audit.

The next important step is compiling the information from the audit. When an auditor audits the
accounts orinspects key financial statements of a company, the findings are usually put out in a report
or compiled in a systematic manner.

The last and most important element of an audit is reporting the result. The results are documented
in theauditor’s report.

Objectives of Auditing

The objective of an audit is to express an opinion on financial statements. The auditor has to
verifythe financial statements and books of accounts to certify the truth and fairness of the financial
position and operating results of the business. Therefore, the objectives of audit are categorized as
primary or main objectives and secondary objectives. Primary Objectives The primary or main
objective of audit is as follows: 1. To Examine the Accuracy of the Books of Accounts An auditor has
to examine the accuracy of the books of accounts, vouchers and other records to certify that Profit and
Loss Account discloses a true and fair view of profit or loss for the financial period and the Balance
Sheet on a given date is properly drawn up to exhibit a true and fair view of the state of affairs of the
business.

Therefore the auditor should undertake the following steps:

· Verify the arithmetical accuracy of the books of accounts.

· Verify the existence and value of assets and liabilities of the companies.
· Verify whether all the statutory requirements on maintaining the book of accounts has been
complied with.Meaning of Books of Accounts
· Books of Accounts mean the financial records maintained by a business concern for a period of one
year.The period of one year can be either calendar year i.e., from 1st January to 31st December or
financial year
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i.e., from 1st April to 31st March. Usually, business concerns adopt financial year for accounting all
business transactions.

· Books of accounts include the following: ledgers, subsidary books, cash and other account books either in
the written form or through print outs or through electronic storage devices. 2. To Express Opinion on
Financial Statements After verifying the accuracy of the books of accounts, the auditor should express his
expert opinion on the truthness and fairness of the financial statements. Finally, the auditor should certify
that the Profit and Loss Account and Balance Sheet represent a true and fair view of the state of affairs of
the company for a particular period.

CLASSIFICATION OF AUDIT

Basis Types

 Specific Audit − Cash audit, Cost audit, Standard audit, Tax audit, Interim
audit, Audit in depth, Management audit, Operational audit, Secretarial audit,
Scope
Partial audit, Post & vouch audit, etc. are common types of specific audit.
 General Audit − It can be an internal or an independent Audit.

 Commercial
Activities
 Non-Commercial

 Government
Organization
 Private

 Statutory − Insurance Company, Electricity Company, Banking Companies,

Legal Trust, Company, Corporations, Co-operative societies.
 Non-statutory − Individual, Firm, Sole trader, etc.

Examination  Periodicals
methods  Continuous

 Internal Audit
Who conducts
 Independent Audit

Audit of Individuals
Sources of income of any individual may be from his investments, property, shares, commission as agent,
interest income, etc.
Following are the purposes and benefits if anyone opts for an audit −

 To know the correct income from all of his sources.

 Assurance of accuracy.
 Prevention and detection of any fraud or misappropriation
 Helpful and useful in Income Tax Assessment.
 To keep moral check on accountant and agent.

Audit of Sole-Trader’s Books of Accounts

The scope of audit will depend on the instructions and agreement between Auditor and sole proprietor, the
latter being an individual owner of the business; the sole proprietor decides himself the scope of audit.
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The purpose and benefit of audit in a sole trader’s business are almost the same as for an individual. Following
are some additional benefits −
 Assurance about proper vouchers of his expenditure and preparation of his accounts with accuracy and
correctness.
 Assurance about true and fair picture of his business income and expenditure.
 His accounts can be compared with the previous years’.

Audit Of Partnership Firm

An Auditor for a partnership firm may be appointed by the partners with mutual consent. Mutual agreement
between partners and Auditor is based on the latter’s rights, liabilities & the scope of his audit. Reference to
the partnership deed is must for an Auditor and he should refer to the Partnership Act, 1932 in case where
partnership deed is silent. Certificate of an Auditor will contain points related to the following −
 Reliability of accounts depending upon the nature of business.
 If any restrictions and limitations imposed by the partners on his audit scope.
 Whether the auditor got all the required information and explanations or not.

Government Audit
Government of India maintains a separate department known as the Account and Audit Department and this
department is headed by the Comptroller and Auditor General of India, which works only for government
offices.

Statutory Audit
Where the appointment of a qualified Auditor is compulsory as per the law is called as a statutory audit. The
following are the essential characteristics of statutory audit −
 An Auditor must be a qualified accountant.
 Norms of the appointment of Auditor are provided by the law. Rights, duties and liabilities of an
Auditor are as defined by the statute; management cannot make any changes in it.
 Organization cannot restrict the scope of statutory audit.
 Statutory audit provides true and fair view of financial position to shareholders and members of an
organization. It helps the shareholders to keep themselves protected from any fraud and
misrepresentation.
 Statutory audit is a compulsory audit. Auditor is an independent person and management doesn’t have
any control over his work.
Following stakeholders are covered under the statutory or compulsory audit.
Audit of Companies
First time in India, the Indian Companies Act, 1913 made it compulsory for joint stock companies to get their
accounts audited by a qualified person (chartered accountant). Appointments, duties, qualifications, powers
and liabilities are amended through the Companies Act, 1956 and 2013.
Audit of Trust
The Public Trust Act provides compulsory audit of accounts by a qualified Auditor. Conditions and terms as
laid down in Trust deed are the basis on which accounts of trusts are maintained. Any Beneficiary of trust
does not have control or access over accounts of trust, therefore, there are more chances of fraud and
misappropriations.
Audit of Co-operative Societies
The Companies Act is not applicable to societies; co-operative societies are established under the Co-operative
Societies Act, 1912. It is a must for a qualified accountant to have the required expertise and he should be
updated with various amendment of the Act. An Auditor should also have knowledge of the by-laws of this
act.
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Audit of other Institutions
Banks, Insurance companies and Electricity companies are audited as per the provisions of special Act of the
Parliament.
Cost Audit

"Cost audit would apparently mean an examination of Cost books, Cost Accounts, Cost Statements and
Subsidiary and prime documents with a view to satisfy the Auditor that these represent a fair and true view of
the cost of production. This will naturally mean an examination of appropriateness of the cost accounting
system adopted by business and effectiveness of its implementation.”

-J.G. Tickhe

Services of qualified cost accountants are necessary to have full control on the records of costs and cost
variations. Big business houses and manufacturing units do understand the importance of cost accounting.
Cost Auditors check the work done by Cost Accountants to ensure correctness of the accounting.
Tax Audit
Under the provision of section 44AB of the Income Tax Act, 1961, every person carrying a
business/Profession is required to get his accounts audited, if the total turnover or gross receipts during the
previous year exceed Rs. 100 lacs in case of business and Rs. 25 lacs in case of profession.
Profit and Loss account of a business or profession is adjusted according to the provision of the Income Tax
Act, therefore accounting profit and tax profit differ. The reason behind the difference in profit or loss may be
because of the following −
 Amount of depreciation
 Under the Income Tax Act, certain expenses are allowed only on the basis of actual payment and those
should be within the prescribed time as provided by law, like the payment of Provident Fund, ESI,
Interest to financial institutions, VAT/Central Sales Tax, Employees related payments, etc.

Balance Sheet Audit

Balance sheet audit is very popular in the United States of America. Balance sheet audit is an annual audit and
it covers each and every item of nominal accounts as appeared in profit and loss account, assets, liabilities,
reserves, provisions, stocks and surplus. Balance sheet audit is also done by highly-skilled accountants.
Continuous Audit
Under continuous audit each and every transaction of the business is checked by the Auditor regularly.
Continuous audit is required in large organizations where number of transactions is very high, internal control
system is not effective, periodicals statements are required and final accounts are prepared immediately after
the close of financial years like banks.
Advantages − Complete checking of records, up-to-date accounts, moral-check on staff and early finalization
of financial statements are the main advantages of continuous audit.
Disadvantages − High cost of continuous audit, mechanical work of Auditor, chances of unhealthy relations
with staff due to frequent visits, etc., are main disadvantages of continuous audit.
Annual Audit
In an organization where the number of transactions is not large, an Auditor usually comes after the close of
financial year and completes his audit work in continuous session. In case of small business houses, annual
audit gives satisfactory results.

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Partial Audit
Partial audit is done only for a specific purpose; for example, to check the receipt side or the payment side of
the cash book, to check cash sale, to check purchases or expenses only. The reason for calling out for a Partial
Audit largely depends on the Management of the organization.
Internal Audit
Internal audit may be done by an independent person or by the employees of the company; internal Auditor
may or may not be qualified person for audit. Internal audit is continuous in nature. As per section 144 of the
Companies Act, an internal Auditor cannot render his services as Statutory Auditor for the same company.
As per the new section 138 of the Companies Act, internal audit has been made compulsory for certain
categories of companies;
 Certain class of companies or may be prescribed shall be required to appoint an internal Auditor, who
shall either be a chartered accountant or cost accountant or such other professional as may be decided
by the Board to conduct internal audit of the functions and activities of the company.
 The central Government, may, by rules, prescribed the manner and intervals in which the internal audit
shall be conducted and reported to the Board.

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 COMPANY PROFILE

NAME OF THE COMPANY : GAYATHRI & ASSOCIATES CHARTERED ACCOUNTANTS

ADDRESS : No.110/2, Avvaithirunagar 1st Street Koyambedu, Chennai – 600092 Tamilnadu.

Land Mark – Behind Koyambedu Market

Our Mission

To consistently provide excellent quality service to clients at all times. We believe in Growing Together. We
see our growth as a reflection of the success of our clients.

Knowledge is most essential and important in profession. In our profession, knowledge of legal aspects and
its application is vital. It is therefore, our mission to be a powerhouse in knowledge in the field of
accounting and fiscal laws.

Our Vision

To be a respected & trusted professional firm and recognised as a leading service provider in core areas.

To be a reputed & reliable partner for other professional service providers

Our Values

Our core values are driven by integrity, ethical practices, innovation, independence and mutual respect.

About the Firm

The core strength of the firm lies in its team and their efforts. The team is a blend of experienced, young &
energetic chartered accountants, infused with specialized skills and competence.

The Audit firm is founded by Mrs.CA R. Gayathri, M.com., FCA having more than 20 years of experience
focusing on audit & assurance, internal audit, risk governance and Direct & Indirect taxation services. She
has worked for national and multi-national companies and a trusted advisor to the senior management with a
proven track record.

Mrs. CA. S. Muddassir, FCA, ACMA, ACS, who has experience around 15 years had joined the firm. She
has domain expertise in assessments, tax audits, tax planning, appeals, litigations, search and surveys.

Experience

The firm has dedicated and expert team duly assisted by qualified CA/CS/CMA with requisite knowledge
and experience. The Firm

  Has an extensive experience of over 20 years in the field of Accountancy, Auditing and Domestic
and International Taxation.
  Has a commendable track record as an advisor in Accountancy, Auditing and Taxation.
  Has been a catalyst in expanding the portfolio of the firm’s services from traditional Auditing and
Taxation to multi-faceted consultancy.
  Has developed the practice for Indirect Taxes like VAT, Excise and Service Tax etc and currently
exploring the area of GST.

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   Apart from above, the firm has also developed practice in the fields of Company Law matters and
Limited Liability Partnership.
  Has also gained the knowledge of International Financial Reporting Standards (IFRS).
  Has vast experience in Internal Audit, Concurrent Audit, Stock Audit and Management Audit.
  Also has experience in Statutory Audit, Concurrent Audit, Stock Audit, Revenue Audit of banks.
  Has massive experience in preparation of Project reports of newly started and already established
companies.
  Is good in liaison with Bankers for loans, tax authorities.
  Has extensive experience in representing clients with direct and indirect tax authorities for
appeals.
  Has a commendable track record in drafting and representing with direct and indirect tax
authorities.
  Is good in liaison with Bankers for loans, tax authorities.
  Has good experience in companies Liquidation and Mergers & Acquisitions.

Key Service Areas Audit & Assurance

 Statutory Audit under various Statutes  IFRS & Ind AS conversions & Compliances

Risk Advisory

 Internal Audit
 Management Audit
 Standard Operating Procedures – Drafting & Revamping
 Internal Finance Controls
 IT review and Assessment of Controls
 Compliance review and support
 Preparation of project reports along with Liaison with bankers  Corporate affairs and compliances
 Book keeping services
 Preparation of MIS reports

Direct Taxation
 Transfer pricing – Domestic & International  M&A Tax services
 Litigation Advisory
 Assessments
 Tax audits
 Search & Survey
 International Tax Advisory

Indirect Taxation
 GST Compliances and Advisory

 Litigations Advisory
 Foreign Trade Policy compliances
 Import Regulations review & compliance

Outsourcing Services

  Cost optimization & Revenue maximization

  Business Process reviews

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   Accounting Services
  Payroll Services
  Asset / inventory verification, reconciliation & registers
  Automation of compliance services – Consolidation process, Contracts, Fixed assets, Legal
compliances etc.,
  Filing of Income tax returns, e-TDS returns, GST returns, ROC returns indirect tax
  Incorporation of Companies, LLP, Partnership firms and all applicable registrations with various
authorities Our commitment.

  Proactively understand requirements & provide concrete solutions distinguishing client ethos,
background and restrictions
  Customised client service ensuring timely and quality deliverables
  Distinctive service parameters having domain experience and expertise
  Growth approach

OUR CLIENTELE
Over the years we have provided our professional services to industries of diverse nature as follows

o Manufacturing
o Agriculture
o Entertainment
o Banking
o Hospitals
o Chit fund
o Construction
o Trading
o Garments
o Information Technology
o Infrastructure
o Education
o Trusts & Societies
o Professional services

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 JOB PROFILE

TOPIC : INTERNAL AUDIT USING TALLY IN GAYATHRI & ASSOCIATES CHARTERED

ACCOUNTANTS

Under this chapter there are two parts. The first part describes the details of intern’s caption and the
second part describes the intern’s experience in the company

PART-I

The intern was initially given an introduction about AUDIT; ROLE OF AUDITOR AND
AUDIT USING TALLY

AUDIT

Audit is an important term used in accounting that describes the examination and verification of a
company’s financial records. It is to ensure that financial information is represented fairly and accurately.

Also, audits are performed to ensure that financial statements are prepared in accordance with the relevant
accounting standards. The three primary financial statements are:

1. Income statement
2. Balance sheet
3. Cash flow statement

Financial statements are prepared internally by management utilizing relevant accounting standards, such
as International Financial Reporting Standards (IFRS) or Generally Accepted Accounting Principles
(GAAP). They are developed to provide useful information to the following users:

 Shareholders
 Creditors
 Government entities
 Customers
 Suppliers
 Partners

Financial statements capture the operating, investing, and financing activities of a company through various
recorded transactions. Because the financial statements are developed internally, there is a high risk of
fraudulent behavior by the preparers of the statements.

Without proper regulations and standards, preparers can easily misrepresent their financial positioning to
make the company appear more profitable or successful than they actually are.

Auditing is crucial to ensure that companies represent their financial positioning fairly and accurately and in
accordance with accounting standards.

ROLE OF AUDITOR

An auditor is an authorised personnel that reviews and verifies the accuracy of financial records
and ensures that companies comply with tax norms. Their primary objective is to protect businesses from
fraud, highlight any discrepancies in accounting methods, among other things.

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The role of an auditor, in general, is no walk in the park. Having been regarded as a certified professional,
the auditor has placed himself, responsibilities to various parties and the duties that
go with it.

The auditor's opinion basically makes or breaks the reliability of the financial statements and the
information they provide. Audited financial statements have an extremely high degree of
reliability and validity in comparison with unaudited statements.

The duties of an auditor have been laid down by the Companies Act, 2013, provided in Section
143. The Act explains the duties in a simplified manner, although the list given is not exhaustive.

PREPARE AN AUDIT REPORT

 An audit report, in simple terms, is an appraisal of a business's financial position. The

auditor is responsible for preparing an audit report based on the financial statements of the company. The
books of accounts so examined by him should be maintained in accordance
with the relevant laws

 He must ensure that the financial statements comply with the relevant provisions of the Companies
Act 2013, relevant Accounting Standards etc.

 In addition to this, it is imperative that he ensures that the entity's financial statements
depict a true and fair view of the company's financial position.

FORM A NEGATIVE OPINION’ WHERE NECCESSARY

The auditor's report has a high degree of assurance and reliability because it contains the auditor's opinion
on the financial statements. Where the auditor feels that the statements do not
depict a true and fair view of the financial position of the business, he is also entitled to form an
adverse opinion on the same.

Additionally, where he finds that he is dissatisfied with the information provided and finds that
he cannot express a proper opinion on the statements, he will issue a disclaimer of opinion. A
disclaimer of opinion basically indicates that due to the lack of information available, the
financial status of the entity cannot be determined. However, it is to be noted that the reasons for
such negative opinion is also to be specified in the report.

MAKE INQUIRIES

One of the auditor's important duties is to make inquiries, as and when he finds it necessary. A
few of the inquiries include:-

 Whether loans and advances made on the basis of security are properly secured and the
terms relating to the same are fair
 Whether any personal expenses (expenses not associated with the business are charged to
the Revenue Account
 Where loans and advances are made, they are shown as deposits. d. Whether the financial
statements comply with the relevant accounting standards.

LEND ASSISTANCE IN CASE OF A BRANCH AUDIT

Where the auditor is the branch auditor and not the auditor of the company, he will lend assistance in
the completion of the branch audit. He shall prepare a report based on the accounts
of the branch as examined by him and then send it across to the company auditor.
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 The Auditing Standards are issued by the Central Government in consultation with the National Financial
Reporting Authority. These standards aid the auditor in performing his audit duties with relevant ease and
accuracy. It is the duty of the auditor to comply with the standards while performing his duties as this
increases his efficiency comparatively.

REPORTING OF FRAUD

Generally, in the course of performing his duties, the auditor may have certain suspicions with regard to
fraud that's taking place within the company, certain situations where the financial statements and the
figures contained therein don't quite add up. When he finds himself to be in such situations, he will have to
report the matter to the Central Government immediately and in
the manner prescribed by the Act.

ADHERE TO THE CODE OF ETHICS AND CODE OF PROFESSIONAL CONDUCT

The auditor, being a professional, must adhere to the Code of Ethics and the Code of Professional Conduct.
Part of this involves confidentiality and due care in the performance of his duties. Another important
requisite is professional scepticism. In simple words, the auditor must have a questioning mind, must be
alert to possible mishaps, errors and frauds in the financial
Statements

ASSISTANCE IN AN INVESTIGATION

In the case where the company is under the scope of an investigation, it is the duty of the auditor
to provide assistance to the officers as required for the same. Hence, it can be seen that the duties
of the auditor are pretty diverse, it has an all-round and far-reaching impact. The level of assurance provided
by a set of audited financial statements is comparatively far higher as
compared to regular unaudited financial statements.
.
TALLY AUDIT

Audit is an important function of any business organization, it denotes that the business has True
and Fair transactions during the year. Tally Prime has an inbuilt feature- Tally Audit which
enables the auditor to perform an audit or track changes that affect the integrity of a transaction,
such as changes made to Date, Ledger Masters and Amounts in the Voucher are reflected in the
Tally Audit Listings

TALLY AUDIT FEATURE

Tally. ERP 9 has an inbuilt feature- Tally Audit which enables the auditor to perform an
audit or track changes that affect the integrity of a transaction, such as changes made to Date, Ledger
Masters and Amounts in the Voucher are reflected in the Tally Audit Listings.

Enable Tally Audit Features

Go to Gateway of Tally > press Alt+K (Company) > Alter. In the Company Alteration screen, set Enable
Tally Audit features to Yes.

AUDIT LISTING FOR VOUCHER TYPES

Vouchers document that the goods purchased were actually received, which supports the
auditor's assertion that the goods and services posted to the financial statements truly exist. Vouchers also
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 justify the firm's cash payments to vendors and document the general ledger accounts used to post the
transaction.

Types of Voucher

 1) Receipt voucher- It is also called a credit voucher. ...

 (2) Payment voucher- It is also called a debit voucher. ...
 (3) Journal voucher- A journal voucher is also called a non-cash voucher or transfer voucher

AUDIT LISTING FOR VOCHER TYPES

 Go to Gateway of Tally > Display More Reports> Statement of Accounts > Tally Audit > Voucher Types.
 The Audit Statistics screen showing the audit statistics based on Voucher Types is displayed as shown,
where the Entered and Altered voucher's count are displayed in columnar format.

TALLY AUDIT

Tally Audit, helps to verify and evaluate the accuracy and accounting standards to be followed
in Tally entries.

AUDIT LISTING FOR MASTERS

A Master's in Auditing provides students with the essential knowledge and skills to analyse accounts,
systems or individuals within the public or private sectors

To display the Tally audit statistics for Masters , execute the following steps:

1. Go to Gateway of Tally > Display > Statement of Accounts > Tally Audit > Masters .
2. When drill down from the Master Wise report Name column, it will display the Tally Audit Listing for the
List of Entered/Altered Ledgers

TALLY AUDIT LISTING

Tally Audit, helps to verify and evaluate the accuracy and accounting standards to be followed in Tally
entries. Features of Tally Audit. Verify Voucher Numbering methods. Verify Backdated voucher entries.
Missing Voucher Numbers.

 Go to Gateway of Tally > Display More Reports > Statement of Accounts > Tally Audit > Masters.
 The Audit Statistics screen showing the Audit Statistics for Masters is displayed as shown. Note: Currently,
only Ledger Masters are available under the head Accounting Masters.

STATISTIC REPORT
Statistics is crucial in business as you can make decisions based on the historical data
and ongoing trends. Accurate statistical data always serves as the basis for critical decisions and
with Tally Prime you can view the Statistics of your business as per your requirements. The
Statistics report gives you an insight into the number of transactions passed and the accounts
involved in the process. You can see all the transactions and masters from the last date of
voucher entry in a single view. You can even use Statistics to compare business data. For

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instance, you can view the monthly comparison of the number of sales vouchers and other
vouchers recorded by your company in the Statistics Report. The Statistics report in Tally Prime
provides you with a snapshot of all the masters created and the number of voucher types entered.
You can use the Statistics Report to drill down to specific transactions to get more details. Varied
configurations are available for viewing the Statistics reports as per your business needs.
With the Statistics report, viewing and comparing statistical data has become simpler. To know
more about using the common features in Statistics report

View Statistics Report

The Statistics Report provides you with detailed information about the types of vouchers and
accounts involved in your business transactions for a particular period. By default, you can view
the statistics side by side in a columnar format.

In this section

 View default report

 Vertical statistics
 Sort by default vouchers
 Vouchers with zero entries

View Default Report

The Statistics report displays the types of vouchers and types of accounts side-by-
side by default. You can see the total number of vouchers passed and accounts involved in your
business transactions in a particular period. Suppose you want to view the Journal entries passed
during March,

Vertical Statistics

The Statistics report displays the Types of Vouchers on the top, and the Types of
Accounts on the bottom instead of displaying them side-by-side.

Alternatively, press Ctrl+H (Change view) to modify the view of the Statistics report

Sort by Default Vouchers

There are 22 default voucher types available in TallyPrime that are sorted alphabetically by
default in the Statistics report. Suppose you create additional vouchers apart from the pre-defined
ones,

 The default report sorts all the voucher types – both predefined and the ones you have
created – alphabetically.
 On setting Sort by Default Vouchers to Yes, Tally Prime sorts the pre-defined voucher
types alphabetically and groups the additionally created voucher types under their
respective groups.

13
This helps you to get a consolidated view of the voucher types, depending on your business
requirements.

Vouchers with Zero Entries

It could be possible that there were certain vouchers that did not have any entries made
in a particular period. By default, the Statistics report includes voucher types that have zero
entries.

PART-II
Internship training at GAYATHRI & ASSOCIATES CHARTERED ACCOUNTANTS has
helped the intern to gain knowledge about INTERNAL AUDIT USING TALLY, where the intern was
taught about importance of internal audit using tally and roles of an auditor.

The intern was also provided with few companies audit details for their reference and that helped
them to learn audit using tally. The intern was also taught about tally in detail, recording day to day business
data of the company. The intern had real time experience of auditing various companies transaction.
Traditionally, audits were mainly associated with gaining information about financial systems and the
financial records of a company or a business. Financial audits also assess whether a business or corporation
adheres to legal duties as well as other applicable statutory customs and regulations.

The intern was also taught about the three main types of audits: external audits, internal audits, and Internal
Revenue Service (IRS) audits. External audits are commonly performed by Certified Public Accounting
(CPA) firms and result in an auditor's opinion which is included in the audit report.

(1) Independent Auditor's Report.

(2) Management's Discussion and Analysis.
(3) Basic Financial Statements.
(4) Notes to the Basic Financial Statements.

The internship in Audit helped the intern gain theoretical and practical knowledge about Audit skills. It
provides the intern opportunity to gain valuable work experiences.

14
 TOPIC : GST IN GAYATHRI & ASSOCIATES CHARTEREDACCOUNTANTS

GST is a unified tax system that replaced multiple indirect taxes leived by both
Central and State Government. Under GST, both the central and state government share the
authority to levy and collect taxes on goods and services.

CONCEPT OF GST:
GST, or Goods and Services Tax, is an indirect tax imposed on the supply of goods and services. It is
a multi-stage, destination-oriented tax imposed on every value addition, replacing multiple indirect taxes,
including VAT, excise duty, service taxes, etc.

OBJECTIVES OF GST :

* To achieve the ideology of ‘One Nation, One Tax’

GST has replaced multiple indirect taxes, which were existing under the previous tax regime.
The advantage of having one single tax means every state follows the same rate for a particular product or service.
Tax administration is easier with the Central Government deciding the rates and policies. Common laws can be
introduced, such as e-way bills for goods transport and e-invoicing for transaction reporting. Tax compliance is
also better as taxpayers are not bogged down with multiple return forms and deadlines. Overall, it’s a unified
system of indirect tax compliance.

* To subsume a majority of the indirect taxes in India

India had several erstwhile indirect taxes such as service tax, Value Added Tax (VAT), Central
Excise, etc., which used to be levied at multiple supply chain stages. Some taxes were governed by the states and
some by the Centre. There was no unified and centralised tax on both goods and services. Hence, GST was
introduced. Under GST, all the major indirect taxes were subsumed into one. It has greatly reduced the compliance
burden on taxpayers and eased tax administration for the government.

*To eliminate the cascading effect of taxes

One of the primary objectives of GST was to remove the cascading effect of taxes. Previously,
due to different indirect tax laws, taxpayers could not set off the tax credits of one tax against the other. For
example, the excise duties paid during manufacture could not be set off against the VAT payable during the sale.
This led to a cascading effect of taxes. Under GST, the tax levy is only on the net value added at each stage of the
supply chain. This has helped eliminate the cascading effect of taxes and contributed to the seamless flow of input
tax credits across both goods and services.

*To curb tax evasion

GST laws in India are far more stringent compared to any of the erstwhile indirect tax laws.
Under GST, taxpayers can claim an input tax credit only on invoices uploaded by their respective suppliers. This
way, the chances of claiming input tax credits on fake invoices are minimal. The introduction of e-invoicing has
further reinforced this objective. Also, due to GST being a nationwide tax and having a centralised surveillance
system, the clampdown on defaulters is quicker and far more efficient. Hence, GST has curbed tax evasion and
minimised tax fraud from taking place to a large extent.

*To increase the taxpayer base

GST has helped in widening the tax base in India. Previously, each of the tax laws had a
different threshold limit for registration based on turnover. As GST is a consolidated tax levied on both goods and

15
services both, it has increased tax-registered businesses. Besides, the stricter laws surrounding input tax credits
have helped bring certain unorganised sectors under the tax net. For example, the construction industry in India.

*Online procedures for ease of doing business

Previously, taxpayers faced a lot of hardships dealing with different tax authorities under
each tax law. Besides, while return filing was online, most of the assessment and refund procedures took place
offline. Now, GST procedures are carried out almost entirely online. Everything is done with a click of a button,
from registration to return filing to refunds to e-way bill generation. It has contributed to the overall ease of doing
business in India and simplified taxpayer compliance to a massive extent. The government also plans to introduce
a centralised portal soon for all indirect tax compliance such as e-invoicing, e-way bills and GST return filing.

*An improved logistics and distribution system

A single indirect tax system reduces the need for multiple documentation for the supply
of goods. GST minimises transportation cycle times, improves supply chain and turnaround time, and leads to
warehouse consolidation, among other benefits. With the e-way bill system under GST, the removal of interstate
checkpoints is most beneficial to the sector in improving transit and destination efficiency. Ultimately, it helps in
cutting down the high logistics and warehousing costs.

*To promote competitive pricing and increase consumption

Introducing GST has also led to an increase in consumption and indirect tax revenues. Due
to the cascading effect of taxes under the previous regime, the prices of goods in India were higher than in global
markets. Even between states, the lower VAT rates in certain states led to an imbalance of purchases in these
states. Having uniform GST rates have contributed to overall competitive pricing across India and on the global
front. This has hence increased consumption and led to higher revenues, which has been another important
objective achieved.

FILING STEPS OF GST:

The GST return online filing process can be completed in the following steps.

Step 1: Use the GST portal that is www.gst.gov.in.

Step 2: Based on your state code and PAN number, a 15 digit number will be issued.

Step 3: Each invoice that you have needs to be uploaded. Against each invoice, a reference number
will be issued.

Step 4: After this, the next step is to file the outward returns, inward returns, and cumulative monthly
returns. All errors can be rectified.

Step 5: File the outward supply returns of GSTR-1 using the information section at the GST Common
Portal on or before the 10th of the month.

16
 Step 6: The outward supplies furnished by the supplier will be gotten from the GSTR-2A.

Step 7: After this, the recipient has to verify the details of the outward supplies and file details of
credit or debit notes.

Step 8: Next, supply details of the inward supplies of goods and services in the GSTR-2 form.

Step 9: Supplier can accept or reject the details provided by the inward supplies made apparent in
the GSTR-1A.

TYPES OF GST RETURNS

Here is a look at the different types of GST returns.

1. GSTR-1

GSTR-1 has to be filed against all goods and services rendered by a company. This includes all the
invoices raised as well as credit-debit notes against sales for a tax period.

2. GSTR-2A

GSTR 2A is a view-only GST return for buying goods and services. It contains the details of all purchases
made by the recipient in any month. All kinds of inward supplies to the recipient can be viewed as purchases made
from other GST registered suppliers.

3. GSTR- 2B

This is also a static, view-only GST return. It is important for buyers of goods and services. GSTR-2B is
available every month from August 2020 and contains ITC data of any period when it is checked back.

4. GSTR- 3B

GSTR 3B is a monthly self-declaration. It furnishes the summarised details of:

All outward supplies made

Input tax credit claimed

Tax liability

17
 Taxes paid

5. GSTR-4

GSTR-4 is an annual return to be filed by composition taxable persons. It is to be filed by April 30th
following the relevant financial year. This return replaced GSTR-9A.

6. GSTR-5

GSTR-5 is for those non-resident foreign taxpayers who carry out transactions in India. What do these
returns entail? They contain details of the following:

Outward supplies made

Inward supplies received

Credit-debit notes

Tax liability

Taxes paid

7. GSTR-5A

GSTR-5A summarises all the outward taxable supplies and tax payable by OIDAR, which stands for the
Online Information and Database Access or Retrieval Services provider.

You have to file this return by the 20th of every succeeding month.

8. GSTR-6

GSTR-6 must be filed by an Input Service Distributor (ISD) every month. Its composition details are:

Input tax credit distributed and received by ISD

All the details of all documents related to the input tax credit

The due date of the GSTR-6 is the 13th of every succeeding month.

9. GSTR-7

GSTR-7 is to be filed by the persons who are required to deduct the TDS under GST. TDS stands for “Tax
deducted at source.” Here’s what the GSTR-7 entails:

Details of TDS deducted

TDS liability payable and paid

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 TDS refund if any

The due date of the GSTR-7 is the 10th of every succeeding month.

10. GSTR-8

This form is required to be filed by the e-commerce operators registered under GST. They are usually
required to collect tax at the source. All the details of supplies made through the e-commerce platform and the
TCS on the same are recorded.

It is to be filed by the 10th of every succeeding month.

11. GSTR-9

This is an annual return to be filed by taxpayers who are registered under GST. It is due by December 31st
for the year following the specific financial year. What does the GSTR-9 contain? It consists of the following:

Details of outward supplies made

Inward supplies received

Summary of supplies received under HSN code

Details of tax payable and paid

12. GSTR-9C

It is a statement filed by all the taxpayers registered under GST whose turnover exceeds Rs. 2 crores in a
financial year. This is a unique form in that it has to be certified by a Chartered Accountant or a Cost Management
Accountant after a GST audit and looking over the GST-9.

It is to be filed by December 31st of the year that follows the relevant financial year.

However, as per the Union Budget 2021, the mandate for the GST audit by CAs and CMAs has been removed.

13. GSTR-10

The GSTR-10 form is to be filled by a person whose registration was surrendered or cancelled. It is also called
a final return which needs to be filed within three months of the cancellation order or the date of cancellation,
whichever comes first.

14. GSTR-11

GSTR-11 is for foreign diplomatic missions and embassies that do not pay tax in India but require a
refund of taxes. It is filed by those persons who have been issued a Unique Identity Number (UIN) to get a refund
for the goods and services incurred by them in India. These returns have details of the inward supplies received
19
and refunds claimed.

These were the different types of GST returns and who should file them.

Objectives and Advantages of Goods and Services Tax

To make tax rate uniform throughout the country: Only of the main objective of GST is to have
uniformity of indirect tax rates throughout the country. GST rates are same throughout the country. Earlier there
were different rates of Sales Tax/Value Added Tax in the States. Its motto is One Nation, One Market. The main
objective or advantage of GST is single tax structure right the manufacturing.

To remove cascading effect of Taxes: Cascading effect of taxes means levy of tax on tax. GST is
levied only towards the net value added portion and not towards the full portion of value as the taxpayer enjoys
input tax credit. Goods and services will cost less due to removal of cascading effect of taxes. Due to input tax
credit, GST would be finally paid by the consumer for the goods and services purchased.

To Simplify Taxation Process: GST is a comprehensive indirect tax. The taxes which have been
subsumed in GST include:

(i) Central Excise Duty (except on petroleum products),

(ii) Service Tax,

(iii) Value Added Tax levied by the State Government,

(iv) Central Sales Tax,

(v) Additional Customs Duties,

(vi) Entry Tax,

(vii) Entertainment Tax,

(viii) Luxury Tax,

(ix) Tax on Lotteries, etc.

Thus, GST has integrated different tax line and it prevents multiple tax layers imposed on goods and
services.

GST reduces the burden of taxes and ensure compliance of tax payment. The number of compliances
is lesser. Thus, GST simplifies taxation process and helps in ease of doing business. This is a huge benefit for the
business enterprises.

To make Indirect Tax Management Effective: The State Government and Central Government has to
administer now mainly one indirect tax, i.e., GST after implementation of GST. Therefore, administration of GST
will be more effective. As a result, tax evasion is likely to reduce. Previously, management of indirect taxes was a
complicated tax for the Government.
20
 To attract more Foreign Direct Investment: Goods and Services Tax helps in ease of doing
business. Therefore, it will attract more Foreign Direct Investment.

Simple and Easy online Procedure: GST returns are filed online. The online procedure is simple
and easy. Online filing of GST returns helps in making tax administration corruption free.
Composition Scheme for Small Businesses: Composition Scheme is a simple and easy scheme under GST for
small tax payers as they can get rid of GST formalities and pay GST at a fixed rate of turnover. This scheme can
be opted by small tax payer whose turnover is less than the prescribed limit and is not engaged in making inter-
State supplies.
Enhanced Productivity of Logistics: After abolition of octroi and entry tax restriction on inter
statement movement of goods has reduced. This has increased the productivity of logistics companies.

Creation of Common National Market: GST has given a boost to India’s tax to Gross Domestic
Product ratio which helps in promoting economic efficiency and long-term growth. GST has led to uniform tax
law and it has formed a common national market.
Regulation of Unregulated and Unorganised Sector under GST: GST has brought unregulated and unorganised
sectors such as textiles and construction under regulation.

Characteristics of Goods and Services Tax

1. Comprehensive Indirect Tax: GST is a comprehensive indirect tax. It has subsumed 17 indirect
taxes levied by the State Governments and the Central Government under the earlier indirect tax regime. GST has
integrated various taxes on goods and services into one unified tax. Thus, GST has brought about unified tax
regime.

2. Consumption or Destination Based Tax: GST is payable in the state in which goods and services
are finally consumed. Thus, it is a consumption or destination based tax.

3. Same GST Rates throughout the country: The motto of GST is One Nation One Tax One
Market. Under the GST regime, the GST rates are same throughout the country. Earlier, the rates of VAT/Sales
Tax were different in the States.

4. Tax on Supply of Goods and Services: GST is a tax on supply of goods and services, or both,
except taxes on supply of alcoholic liquor for human consumption. At present petroleum products will be out of
GST. Petroleum products can be brought into the GST network if the GST Council so decides. Petroleum products
means petroleum crude, high speed diesel, motor spirit, i.e., petrol, natural gas and aviation turbine fuel.
The word used is “Supply” as against the earlier concept of tax on the manufacture of goods or on sale. Therefore,
stock transfers and branch transfers will also come under the GST net. GST is charged by the registered person/tax
payer from the purchaser of goods and services.

5. No Tax on due to Input Tax credit: Goods and Services Tax belongs to family of Value Added
Tax. GST is levied on the incremental value of the goods. Further, Input Tax Credit (in short, ITC) is allowed
which avoid cascading effect of taxes. Every registered taxable person who carries on business at any place in
India is entitled to credit of tax on inputs admissible to him which will be credited to the electronic credit ledger of
such person in the records of the Government. Thus, there is no tax on tax.

6. Collection of GST by Registered Person/Tax payer: GST can be collected only by a

person/tax payer who is registered under the Central Goods and Services tax Act, 2017.
Person includes:

21
(a) an individual;

(b) Hindu Undivided Family;

(c) a company;

(d) a firm;

(e) a Limited Liability Partnership;

(f) an association of persons;

(g) any corporation established by or under any Central Act, State Act or a Government Company;

(h) any body corporate;

(i) a cooperative society;

(j) a local authority;

(k) Central Government or State Government;

(l) trust.

7. GST Collected is Payable to the Government: GST is collected on supply of goods and
services. GST collected on supply of goods and/or services, after deduction of GST paid on purchases of good
and/or services, is payable to the Government.

8. Multiple Rate Structure: GST has multiple rate structure. GST rates for goods include 5%,
12%, 18%, 28% and 3%. GST rates for services are 5%, 12%, 18% and 28%.

9. Types of Tax: There are four types of tax leviable on supply of goods and services.
These are as follows:

22
GST HISTORY :

The idea of a Goods and Services Tax (GST) for India was first mooted sixteen
years back, during the Prime Ministership of Shri Atal Bihari Vajpayee. Thereafter, on 28th February,
2006, the then Union Finance Minister in his Budget for 2006-07 proposed that GST would be
introduced from 1st April, 2010. The Empowered Committee of State Finance Ministers (EC), which had
formulated the design of State VAT was requested to come up with a roadmap and structure for the
GST. Joint Working Groups of officials having representatives of the States as well as the Centre were
set up to examine various aspects of the GST and draw up reports specifically on exemptions and
thresholds, taxation of services and taxation of inter-State supplies. Based on discussions within and
between it and the Central Government, the EC released its First Discussion Paper (FDP) on GST in
November, 2009. The FDP spelled out the features of the proposed GST and has formed the basis for
the present GST laws and rules.

In March 2011, Constitution (115th Amendment) Bill, 2011 was introduced in

the Lok Sabha to enable levy of GST. However, due to lack of political consensus, the Bill lapsed after
the dissolution of 15th Lok Sabha in August 2013.

On 19th December, 2014, The Constitution (122nd Amendment) Bill 2014 was
introduced in the Lok Sabha and was passed by Lok Sabha in May 2015. The Bill was taken up in Rajya
Sabha and was referred to the Joint Committee of the Rajya Sabha and the Lok Sabha on 14th May,
2015. The Select Committee submitted its report on 22nd July, 2015. Thereafter, the Constitutional
Amendment Bill was moved on 1st August 2016 based on political consensus. The Bill was passed by
the Rajya Sabha on 3rd August 2016 and by the Lok Sabha on 8th August 2016. After ratification by
required number of State legislatures and assent of the President, the Constitutional amendment was
notified as Constitution (101st Amendment) Act 2016 on 8th September, 2016. The Constitutional
amendment paved way for introduction of Goods and Services Tax in India.

After GST Council approved the Central Goods and Services Tax Bill 2017 (The CGST
Bill), the Integrated Goods and Services Tax Bill 2017 (The IGST Bill), the Union Territory Goods and
Services Tax Bill 2017 (The UTGST Bill), the Goods and Services Tax (Compensation to the States) Bill
2017 (The Compensation Bill), these Bills were passed by the Lok Sabha on 29th March, 2017. The
Rajya Sabha passed these Bills on 6th April, 2017 and were then enacted as Acts on 12th April, 2017. T
2015. 6 on 08.09.2016

Thereafter, State Legislatures of different States have passed respective State Goods
and Services Tax Bills. After the enactment of various GST laws, GST was launched with effect from 1st
July 2017 by Sh.Narendra Modi, Hon'ble Prime Minister of India in the presence of Sh.Pranab
Mukherjee, the then President of India in a mid-night function at the Central Hall of Parliament of India.

23
GST COUNCIL STRUCTURE :

As per Article 279A of the amended Constitution, the GST Council is a joint forum
of the Centre and the States, and consists of the following members: -

Union Finance Minister

The Union Minister of State, in-charge of Revenue, Min. of Finance

The Minister In-charge of Finance or Taxation or any other Minister nominated by each State Government

The Council is empowered to make recommendations to the Union and the States on
the following:-

(a) the taxes, cesses and surcharges levied by the Union, the States and the local bodies
which may be subsumed in the goods and services tax;

(b) the goods and services that may be subjected to, or exempted from the goods and
services tax;

(c) model Goods and Services Tax Laws, principles of levy, apportionment of Integrated
Goods and Services Tax and the principles that govern the place of supply;

(d) the threshold limit of turnover below which goods and services may be exempted
from goods and services tax;

(e) the rates including floor rates with bands of goods and services tax;

(f) any special rate or rates for a specified period, to raise additional resources during
any natural calamity or disaster;

(g) special provision with respect to the States of Arunachal Pradesh, Assam, Jammu and
Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and
Uttarakhand; and

(h) the date on which GST shall be levied on petroleum crude, high speed diesel, motor
spirit (petrol), natural gas and aviation turbine fuel

(i) any other matter relating to the goods and services tax, as the Council may decide.
The mechanism of GST Council would ensure harmonisation on different aspects of GST between the
Centre and the States as well as amongst the States. It has been provided in the Constitution (One
Hundred and First Amendment) Act, 2016 that the GST Council, in discharge of various functions, shall
be guided by the need for a harmonized structure of GST and for the development of a harmonized
national market for goods and services.

24
 The Constitution (One Hundred and First Amendment) Act, 2016 provides that
every decision of the GST Council shall be taken at its meeting by a majority of not less than 3/4th of
the weighted votes of the Members present and voting. The vote of the Central Government shall have
a weightage of 1/3rd of the votes cast and the votes of all the State Governments taken together shall
have a weightage of 2/3rd of the total votes cast in that meeting. One half of the total number of
members of the GST Council shall constitute the quorum at its meeting.

On 12th September,2016 the Union Cabinet under the Chairmanship of the

Hon'ble Prime Minister approved setting up of GST Council and creation of its Secretariat as follows:

(a) GST Council as per Article 279A of the amended Constitution;

(b) GST Council Secretariat, with its office at New Delhi;

(c) Secretary (Revenue) as the Ex-officio Secretary to the GST Council;

(d) Inclusion of the Chairperson, Central Board of Excise and Customs (CBEC), as
a permanent invitee (non-voting) to all proceedings of the GST Council;

(e) One post of Additional Secretary to the GST Council in the GST Council
Secretariat (at the level of Additional Secretary to the Government of India), and four posts of
Commissioners in the GST Council Secretariat (at the level of Joint Secretary to the Government of
India).

The Cabinet also decided to provide for adequate funds for meeting the recurring
and non-recurring expenses of the GST Council Secretariat, which shall be borne by the Central
Government. The GST Council Secretariat shall be manned by officers taken on deputation from both
the Central and State Governments.

25
HOW CAN I VIEW THE INWARD SUPPLIES DETAILS In FORM GSTR-2A?

Form GSTR-2A will be generated in below scenarios:

 When the supplier uploads the B2B transaction details in their Form GSTR-1 / 5
 ISD details will be auto-populated on submission of Form GSTR-6 by their Input Service Distributor
 TDS & TCS details will be auto-populated on filing of Form GSTR-7 & 8 respectively by the counter party.
 Auto-population of Import of goods from overseas, on bill of entry, as received from ICEGATE Portal of Indian
Customs.
2. Form GSTR-2A is a ‘Read only’ view form and you cannot take any action in Form GSTR-2A.
3. Form GSTR-2A will be generated in the following manner:
 After saving/filing/submission of Form GSTR-1 by suppliers or when counterparty adds invoices / Credit notes / Debit
Notes etc. or make Amendments in Form GSTR-1/5.
 Form GSTR-6 is submitted for distribution of credit in the form of ISD credit invoice or ISD credit notes.
 Form GSTR-7 & 8 filed by the counterparty for TDS & TCS credit respectively.

To view the Inward Supplies details in Form GSTR-2A, perform the following steps:
1. Access the www.gst.gov.in URL. The GST Home page is displayed. Login to the GST Portal with valid credentials. Click
the Services > Returns > Returns Dashboard option.

2. The File Returns page is displayed. Select the Financial Year & Return Filing Period for which you want to view Form
GSTR-2A from the drop-down list. Click the SEARCH button. GSTR2A tile is displayed.

1. 3. Download GSTR-2A
2. 4. View GSTR-2A

3. Download GSTR-2A

3.1. If number of invoices in Form GSTR-2A is more than 500, then you need to download the invoices by clicking
the DOWNLOAD button.

26
3.2. Click the GENERATE JSON FILE TO DOWNLOAD or GENERATE EXCEL FILE TO DOWNLOAD button to generate
data in the JSON or Excel format. The generated JSON file can be opened in Returns Offline Tool.

3.3. Once the file is generated, the link will appear to download. Download the JSON file by clicking the link.

27
4. View GSTR-2A

4.1. In the Form GSTR-2A tile, click the VIEW tile to view the details directly on GST Portal.

4.2. The Form GSTR-2A – AUTO DRAFTED DETAILS page is displayed.

28
Click the tile names to know more details:

PART- A
3. B2B Invoices
4. Amendments to B2B INVOICES
5. Credit/Debit Notes
6. Amendments to Credit/Debit Notes
7.

29
PART-B

8. ISD Credits
9. Amendments to ISD Credits

PART-C

10. TDS Credits

11. Amendments to TDS Credits
12. TCS Credits

PART-D

13. Import of goods from overseas on bill of entry

14. Import of goods from SEZ units / developers on bill of entry

Part A - 1. B2B Invoices

B2B invoices displays all the invoices added by the supplier through their Form GSTR-1 and/ or Form GSTR 5. The B2B
section of PART-A of Form GSTR-2A is auto-populated on uploading or saving of invoices by the supplier in their respective
returns - Form GSTR-1 and Form GSTR-5.
a. Click the B2B Invoices tile.

b. In supplier wise details, you can view invoices uploaded by the supplier. Click the Supplier GSTIN hyperlink to navigate to
view B2B Invoice summary.

30
Note:
 You can click DOWNLOAD DOCUMENTS (CSV) button to download details of this table. You can download records
upto 500 using this option.
 You can use Display/Hide Columns option, to hide or show columns.
 You can use Search feature to search for required details, which is applicable across all columns.

c. Click the Invoice Number hyperlink to view the invoice details.

d. The item details are displayed.

31
Click here to go back to main menu

Part A - 2. Amendments to B2B Invoices

Amended B2B invoices section covers the invoices which are amended by the supplier in their returns of Form GSTR-1/5
respectively.

a. Click the Amendments to B2B Invoices tile.

b. In supplier wise details, you can view amended B2B invoices uploaded by the supplier. Click the Supplier GSTIN hyperlink
to navigate to view amended B2B Invoice summary.
Note: Column “Effective Date of cancellation” is to show the retrospective date of cancellation in Form GSTR-2A.

32
Note:
 You can click DOWNLOAD DOCUMENTS (CSV) button to download details of this table. You can download records
upto 500 using this option.
 You can use Display/Hide Columns option, to hide or show columns.
 You can use Search feature to search for required details, which is applicable across all columns.

c. Click the Invoice Number hyperlink to view the invoice details.

d. The item details are displayed.

33
Click here to go back to main menu

Part A - 3. Credit/Debit Notes

This section covers the Credit/Debit notes added by the supplier in their respective returns (Form GSTR-1/5).
a. Click the Credit/Debit Notes tile.

b. In supplier wise details, you can view auto-drafted credit or debit notes, consolidated on basis of the supplier’s GSTIN.
Click the Supplier’s GSTIN hyperlink to navigate to credit/debit note wise details and view the credit/debit notes received
from the said supplier.
Note:
 You can click DOWNLOAD DOCUMENTS (CSV) button to download credit/debit note wise details of this table. You
can download records upto 500 using this option.
 You can use Display/Hide Columns option, to hide or show columns.
 You can use Search feature to search for required details, which is applicable across all columns.
 You can click the HELP button to get the help related to this page.

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c. In this page, you can view credit/debit notes issued by the supplier. The number of credit/debit notes that can be viewed in
this table is restricted to 500. Click the Credit/Debit note no. hyperlink to view the item wise details. If the number of
credit/debit notes are more than 500, then you need to download the Form GSTR-2A to view it in the offline utility tool.

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Note: By default, Applicable percentage (%), Tax period in which amended and Amendment type columns are hidden in
credit/debit note wise details page.

Scenario 1: You will see below screenshot, in case you have filed your returns/statements after delinking of credit and debit
notes on the GST Portal.

Scenario 2: You will see below screenshot, in case you have filed your returns/statements before delinking of credit and
debit notes on the GST Portal.

Scenario 3: You will see the below screenshot, in case you have saved your returns/statements before delinking of credit
and debit notes and filed your statements/returns after delinking of credit and debit notes on the GST Portal.

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Note: In this case, taxpayer will be able to view new fields in the form, related to credit/debit notes, uploaded post delinking
of credit/debit notes. Thus, in respect of old data, taxpayer can view these data in the new format, but certain fields for which
data is not available, will be blank.

d. The item details are displayed.

Click here to go back to main menu

Part A - 4. Amendments to Credit/Debit Notes

Amendments to Credit/Debit Notes section covers the amendments of Debit/ credit notes done by the supplier in their
respective statements/returns (Form GSTR-1/5).
a. Click the Amendments to Credit/Debit Notes tile.

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b. In supplier wise details, you can view auto-drafted amended credit or debit notes, consolidated on basis of the supplier’s
GSTIN. Click the Supplier GSTIN hyperlink to navigate to amended credit/debit note wise details and view the amended
credit/debit notes received from the said supplier.

Note:
 You can click DOWNLOAD DOCUMENTS (CSV) button to download amended credit/debit note wise details of this
table. You can download records upto 500 using this option.
 You can use Display/Hide Columns option, to hide or show columns.
 You can use Search feature to search for required details, which is applicable across all columns.
 You can click the HELP button to get the help related to this page.

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c. In this page, you can view amended credit/debit notes issued by the supplier. The number of amended credit/debit notes
that can be viewed in this table is restricted to 500. Click the Credit/Debit note no. hyperlink to view the item details.
Note: By default, Applicable percentage (%), Tax period in which originally reported and Amendment type columns
are hidden in credit/debit note wise details page.

Scenario 1: You will see below screenshot, in case you have filed your returns/statements after delinking of credit and debit
notes on the GST Portal.

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Scenario 2: You will see below screenshot, in case you have filed your returns/statements before delinking of credit and
debit notes on the GST Portal.

Scenario 3: You will see below screenshot, in case you have saved your returns/statements before delinking of credit and
debit notes and filed your returns after delinking of credit and debit notes on the GST Portal.
Note: In this case, taxpayer can view new fields related to credit/debit notes uploaded post delinking of credit/debit notes.
For such notes original invoice fields will be blank. In respect old data, taxpayer can view original invoice number and invoice
date, but new fields will be blank.

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d. The item details are displayed.

Click here to go back to main menu

Part B - 1. Input Service Distributor - ISD Credits

The details of ISD Credits distributed by the Input Service Distributor, for credits available for Services among several
GSTINs linked by common PAN, are auto populated to Form GSTR-2A on submission of Form GSTR-6 by ISDs.

a. Click the ISD Credits tile.

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b. The ISD Credit Received page is displayed. Click the GSTIN hyperlink to invoices uploaded by the supplier.

Note:
 PART B of Form GSTR-2A will be auto-populated on submission of Form GSTR-6.
 You can click DOWNLOAD DOCUMENTS (CSV) button to download credit/debit note wise details of this table. You
can download records upto 500 using this option.
 You can use Display/Hide Columns option, to hide or show columns.
 You can use Search feature to search for required details, which is applicable across all columns.

c. Details related to ISD selected are displayed. Click the ISDCDN tab.

d. Input Service Distributor Credit and Debit Note (ISDCDN) details are displayed.

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Click here to go back to main menu

Part B - 2. Amendments to ISD Credits

Amendments to Input Service Distributor (ISD) Credits section covers the amendments of ISD credits done by the Input
Service Distributor on submission of their Form GSTR-6, on basis of changes made by the suppliers in their respective
returns (Form GSTR-1/5).
a. Click the Amendments to ISD Credits tile.

b. The Amended ISD Invoices-Supplier Details page is displayed. Click the GSTIN hyperlink to amended invoices
uploaded by the supplier.

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Note:
 You can click DOWNLOAD DOCUMENTS (CSV) button to download credit/debit note wise details of this table. You
can download records upto 500 using this option.
 You can use Display/Hide Columns option, to hide or show columns.
 You can use Search feature to search for required details, which is applicable across all columns.

c. Input Service Distributor Amendment (ISDA) details are displayed. Click the ISDCDNA tab.

d. Input Service Distributor Credit and Debit Note Amendment (ISDCDNA) details are displayed.

Click here to go back to main menu

Part C - 1. Tax Deducted at Source - TDS Credits

The details of advance tax deducted by the recipient from the supplier i.e. Tax Deducted at Source Credits, are auto
populated in Form GSTR-2A of the recipient, after filing of Form GSTR-7 by TDS Deductor.

a. Click the TDS Credits tile.

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b. The TDS Credit Received - Summary page is displayed.

Note:
 PART C of Form GSTR-2A is auto-populated on filing of Form GSTR-7 by TDS Deductor.
 You can click DOWNLOAD DOCUMENTS (CSV) button to download details of this table. You can download records
upto 500 using this option.

Click here to go back to main menu

Part C - 2. Amendments to TDS Credits

Amendments to TDS Credits section covers the amendments of TDS credits done by the TDS Deductors, in their return
Form GSTR-7, after its filing.

a. Click the Amendments to TDS Credits tile.

b. The Amendment to TDS Credit Received - Summary page is displayed.

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Note: You can click DOWNLOAD DOCUMENTS (CSV) button to download details of this table. You can download records
upto 500 using this option.

Click here to go back to main menu

Part C - D. TCS Credits

The details of Tax Collected at Source from the supplier by E Commerce Operators, towards supplies undertaken through
them, i.e. TCS Credits, are auto populated in Form GSTR-2A of the recipient, after filing of Form GSTR-8 by TCS Collectors.

a. Click the TCS Credits tile.

b. The TCS Credit Received - Summary page is displayed.

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Note:
 PART C of Form GSTR-2A will be auto-populated on filing of Form GSTR-8 by TCS Collector.
 You can click DOWNLOAD DOCUMENTS (CSV) button to download details of this table. You can download records
upto 500 using this option.

Click here to go back to main menu

Part D- 1. Import of goods from overseas on bill of entry

Import of goods from overseas on bill of entry displays all the details related to import of goods from overseas, on bill of
entry, as received from ICEGATE Portal of Indian Customs.
a. Click the Import of goods from overseas on bill of entry tile.

b. The Import of goods from overseas on bill of entry page is displayed with all the details.
Note: Reference date is the date when the goods have been cleared from customs. Based on the reference date assigned
by ICEGATE Portal of Indian Customs, import data will auto populate to the relevant tax period of Form GSTR-2A. The
reference date will always be greater than or equal to Bill of entry Date.

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Note:
 You can click the Sort button to sort the details of the particular column.

 You can click the HELP button to view the Help related to this page.

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 You can click the DOWNLOAD DOCUMENTS (CSV) button to download the details in CSV format.

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 Taxpayer can view original as well as amended bill of entry details. The amended column will be blank for original
record. In case, amended records is available, then amended column will be ‘YES’. You can click
the Yes hyperlink against the amended record to view the amendment history. The amendment history is displayed.
Amendment history cannot be downloaded or viewed in GST Offline tool. In Excel/ GST Offline tool, the column
would have values as Yes but no history can be viewed. Click CLOSE.

 You can also select Records Per Page drop-down list to view more records in a page.

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 You can use Search option to search for a specific text/value among the details displayed. This will work only for 500
records available on GST Portal. Details matching with the key words entered by you in the search box are
displayed.

 In case, the count of records is more than 500, you can download and view all records after importing the details into
GST Offline tool. On GST Portal, you can use the Advanced Search feature to search for any specific details. Enter
the Port Code, Bill of Entry Number and Bill of Entry Date and click SEARCH. Search results are displayed on
the screen.

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Click here to go back to main menu

Part D- 2. Import of goods from SEZ units / developers on bill of entry

Import of goods from SEZ units / developers on bill of entry displays all the details related to import of goods from SEZ
Units or Developers on bill of entry, as received from ICEGATE Portal of Indian Customs.

a. Click the Import of goods from SEZ units / developers on bill of entry tile.

b. The Import of goods from SEZ units / developers on bill of entry page is displayed with all the details.
Note: Reference date is the date when the goods have been cleared from customs.

Note: You can explore the additional features as explained above.

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 CONCLUSION

Audit is the examination or inspection of various books of accounts by an auditor followed by physical
checking of inventory to make sure that all departments are following documented system of recording transactions. It is
done to ascertain the accuracy of financial statements provided by the organisation. Audit can be done internally by
employees or heads of a particular department and externally by an outside firm or an independent auditor. The idea is to
check and verify the accounts by an independent authority to ensure that all books of accounts are done in a fair manner and
there is no misrepresentation or fraud that is being conducted.

Overall; Internship on Audit at GAYATHRI & ASSOCIATES CHARTERED ACCOUNTANTS helped to

know about the strategies and techniques used and to gain how Audit works in real world. It was useful and were guiding
effectively during the internship training.

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