GST REGISTRATION AND RETURN FILING AT

SS ASSOCIATES

SUBMITTED IN PARTIAL FULFILLMENT OF THE

REQUIREMENTS OF BACHELOR OF COMMERCE DEGREE
OF BANGALORE UNIVERSITY

BY
VAISHALI BABU H.R
REG NO: U03MG21C0025

UNDER THE GUIDANCE OF

UDAY KUMAR C

SURANA EVENING COLLEGE

2023-2024
CERTIFICATE OF INTERNSHIP
CERTIFICATE OF THE COLLEGE IN THE COLLEGE
LETTER HEAD

SURANA EVENING COLLEGE

KENGERI SATTELITE TOWN, BANGALORE - 560060
 STUDENT DECLARATION

I VAISHALI BABU H.R, hereby declare that this report entitled a study on
“GST REGISTARTION AND RETURN FILING AT SS ASSOCIATES”
study conducted by me during the summer vocation from 18-03-2024 to 20-04-
2024 under the supervision and guidance of UDAY KUMAR C Faculty of
Surana Evening College.

DATE:

PLACE: SIGNATURE
VAISHALI BABU H.R

U03MG21C0025
 ACKNOWLEDGEMENT

The success and outcome of this internship report required a lot of guidance and
assistant from many people and I am extremely fortunate to have their support till
the completion of my report work.

Firstly, I would like to thank SS ASSOCIATES for giving me an opportunity to

this internship which made me bring a wider perspective of practical knowledge.

It is an immense pleasure to thank many individuals for their cordial cooperation

and encouragement which has contributed directly and indirectly in preparing this
report. Secondly, I would like to express my gratitude to my internship guide
UDAY KUMAR C for his guidance and feedback which made everything clear to
me to complete this report. He kept me on track to complete this report and his
suggestions and feedback were very dynamic in making this report as impeccable
as possible. As well as our principal DR. GURUPRASAD B.G who gave me the
golden opportunity to do my internship, which helped me a step further in learning
a lot of new things.

I would also take a moment in thanking my parents who gave me the permission
and supported me to complete the internship and also my friends who were the
helping hands when there was a need during the process. Although this report has
been prepared with utmost care and deep routed interest, event then I accept it
respondent and imperfect. It is a great opportunity and pleasure for me to express
my profound gratitude towards all the individual who directly or indirectly
contributed for the completion of this report.
 INDEX

SR NO TOPICS PAGE NO

1
1 Executive Summary

2 - 28
2 Chapter-1 Organisation profile and Introduction

29 - 33
3 Chapter-2 Design of the study

34 - 57
4 Chapter-3 Discussion

5 Chapter-4 Learning outcomes 58 - 72

6 Bibliography 73 - 74

7 Annexures

8 Letter of application to the employer for Internship

9 Letter of acceptance by the employer

 EXECUTIVE SUMMARY

I VAISHALI BABU H.R, currently pursuing my graduation in Bachelor of

Commerce at SURANA EVENING COLLEGE. B.com is an undergraduate
program under NEP syllabus. Bachelor is a 3-year undergraduate program that
offers in depth knowledge in Accounting and Financial subjects by different
means such as classroom teachings, seminars, projects, practical training,
industrial visit, conference, expert talks, etc.

This report summarizes my internship program from 14-03-2024 to 14-04-2024

covering 90 hours of ongoing internship. I had magnificently concluded the
placement in SS ASSOCIATES as a requirement of Bachelor of Commerce.

I earned different sides of experiences with assist of all the individuals in the
organisation. The internship skills are vital for my career path. Principally I
attached GOODS AND SERVICE TAXATION concepts which widely
encompasses of registration process, objectives, wide analysis, types of forms,
reconciliation and using of accounting software such as tally and excel. I had great
opportunity to work in a new environment and it was comfort for me to develop
the communication, punctuality, commitment, talents, and team work abilities.

This report is prepared as per Bangalore University guidelines which starts with
cover page, contents, introduction, design of study, discussion, learning outcomes
and ends with bibliography.

1
 CHAPTER 1:
ORGANISATION
PROFILE

2
 ORGANISATION PROFILE

SS ASSOCIATES established in Bengaluru is a leading Chartered Accountancy

firm rendering comprehensive professional services like GST return filing,
Income Tax filing and Auditing services. The firm provides top notch value to the
market and clients. SS ASSOCIATES has a clear vision for the future growth and
development of financial markets and services to stay ahead of the trends and
developments. It moulds its operations and areas of competencies and introduces
services to assist clients in their business operations and growth.

 VISION: To be a leading firm in delivering value consistently to the clients.

 MISSION: To provide practical& problem-solving solutions and to be
responsive and versatile.

The firm has a rigorous set of client service standards. These standards are followed
throughout the firm to ensure quality service to all our clients. Following are the
standards:

 Analyse client's needs and professional service requirements.

 Establish effective communications, both internal and external, to enhance
client perceptions of the value and quality of our service.
 Provide management with insights on the current condition of their business
and meaningful suggestions for improvement.
 Ensure that any professional, technical, or client-service problem is resolved
promptly with timely consultation in an environment of mutual respect.
 Obtain from the client, formally and informally, a regular assessment of the
performance.

3
SERVICES RENDERED:

A. DIRECT TAX:
 Providing consultancy on various intricate matters pertaining to Income tax.
 Helping the clients through effective tax management, tax structuring and
advisory services.
 Providing tax planning for corporates and others.
 Obtaining PAN for the assesses
 Advance tax estimation and deposit thereby aiding the clients to comply
with the legal provisions.
 Assessing the liability towards deferred taxes.
 Keeping the client abreast with the updates brought about by amendments,
circulars, notifications & judgments.
 Filing Income Tax returns for all kinds of assesses, whether individual, BOI,
AOP, firm or company etc
 Filing Income tax returns for employees of corporate clients.
 Employee compensation structuring to minimize tax burden and provide the
client with a competitive advantage
 Employee tax and statutory compliance assistance to ensure minimum
interference from revenue authorities
 Helping to frame proper policies for Employee incentives
 Expertise in complicated direct tax assessments and scrutiny matters
 Filing the TDS return and obtaining of the TDS certificates
 Optimum use of corporate tax incentives in proposed business activities to
minimise cost and improve the margin.
 Tax-planning strategies and helping resolve uncertain tax positions

B. INDIRECT TAX:
 Registration under the GST law
 Filing of Refund and rebate claims
 Advising and filing of all types of returns and forms under the GST laws
 Computation of tax liability
4
 Getting the business systems and flow ready for GST
 Impact Analysis of GST on the long-term plans of the company
 Structuring of transactions from GST perspective
 Optimizing products and services to minimize indirect tax liability

C. AUDITING SERVICES:
 Performing Risk Assessment Procedures to identify the risk of material
misstatement.
 Designing other audit procedures as per the results of such risk assessment
procedures
 Performing compliance procedures to examine the design, consistency and
operating effectiveness of the internal control system
 Communicating the weaknesses identified in the internal controls to the
management and those charged with governance
 Providing suggestions for improvement and strengthening of the controls
 Performing substantive procedures to examine the completeness, accuracy,
occurrence and validity of the transactions and the balances.
 Ensuring compliance with policies, procedures, and statutes.
 Comprehensive review to ensure that the accounts are prepared in
accordance with Generally Accepted Accounting Principles and applicable
Accounting Standards/IFRS.
 Checking the genuineness of the expenses and incomes booked in accounts.
 Checking the ownership, existence, valuation, and controls over the assets of
the entity
 Detection and prevention of leakages of income and suggesting corrective
measures to prevent recurrence.
 Performing substantive analytical review procedures by using various
ratios, trends, and other statistical tools and examining any significant changes
thereon
 Certification of the books of account agreeing with the Balance Sheet and
Profit and Loss Account.
 Issue of Audit Reports under various laws.

5
INTRODUCTION

6
 GOODS AND SERVICE TAX(GST)

GST stands for Goods and Services Tax, a value-added tax levied on most goods
and services sold for domestic consumption. It is a comprehensive indirect tax that
aims to replace multiple cascading taxes levied by the central and state
governments in India.

Here is an introduction to GST:

HISTORY OF GST:

The concept of Goods and Services Tax (GST) in India has its roots traced back to
the 1980s. Here is a historical overview from 1986 onwards:

1986 - Introduction of Modified Value Added Tax (MODVAT): India introduced

MODVAT in 1986, which allowed manufacturers to avail credit for the excise
duty paid on inputs used in the manufacturing process. This was a precursor to
GST as it allowed for the cascading effect of taxes to be partially mitigated.

2000 - Formation of Empowered Committee: In 2000, the Empowered Committee

of State Finance Ministers was formed to design a roadmap for the
implementation of GST. The committee played a crucial role in shaping the GST
framework and addressing the concerns of both the central and state governments.

2006 - VAT Implementation: India adopted the Value Added Tax (VAT) system in
2006, replacing the archaic sales tax regime. VAT was a significant step towards
harmonizing indirect taxes across states and laying the foundation for GST.

2007 - Announcement of GST Roadmap: The then Finance Minister of India, P.

Chidambaram, announced the government's intention to introduce GST by April
2010. This announcement marked a significant milestone in the journey towards
GST implementation.

2009 - First Attempt to Introduce GST Bill: The first attempt to introduce the
Constitutional Amendment Bill for GST was made in 2009. However, it faced
opposition from several states and could not be passed.

7
2011 - Introduction of Constitutional Amendment Bill: In March 2011, the
Constitution (115th Amendment) Bill, 2011 was introduced in the Lok Sabha to
enable the implementation of GST. This bill aimed to confer concurrent taxation
powers to both the central and state governments for levying GST.

2016 - Passage of GST Bills: After years of deliberation and negotiations, the
Central Goods and Services Tax Bill (CGST), Integrated Goods and Services Tax
Bill (IGST), State Goods and Services Tax Bill (SGST), and Union Territory
Goods and Services Tax Bill (UTGST) were passed by the Indian Parliament in
March 2017, paving the way for the implementation of GST from July 1, 2017.

Throughout this period, there were numerous discussions, consultations, and

efforts made by successive governments to streamline the indirect tax system in
India and pave the way for the eventual implementation of GST. The journey from
the initial discussions in the 1980s to the actual implementation of GST in 2017
represents a long and arduous process aimed at transforming India's tax regime
and fostering economic growth.

8
BACKGROUND:

The Goods and Services Tax (GST) represents a watershed moment in India's
economic history, heralding a paradigm shift in the country's tax regime. Before
the introduction of GST on July 1, 2017, India grappled with a fragmented system
of indirect taxes characterized by a labyrinth of central and state levies. This
complex tax structure gave rise to numerous challenges, including tax cascading,
compliance burdens, and barriers to interstate trade.

The need for reform was evident. India's convoluted tax regime stifled economic
growth, impeded the ease of doing business, and rendered the country's businesses
less competitive on the global stage. Recognizing these challenges, the idea of
GST began to gain traction in the early 2000s. Various committees and task forces
were formed to study and propose a roadmap for implementing GST, culminating
in the recommendation of a comprehensive indirect tax reform.

The journey towards GST saw several milestones, with intensive discussions,
consultations, and negotiations between the central and state governments. One of
the key hurdles was the need for a constitutional amendment to confer concurrent
taxing powers to both levels of government. The passage of the Constitution
(101st Amendment) Act, 2016, paved the way for the introduction of GST and
marked a significant milestone in India's federal structure.

GST was conceptualized as a dual tax system, empowering both the central and
state governments to levy taxes on the supply of goods and services. Under this
model, the tax levied by the central government is known as Central GST
(CGST), while that levied by the state government is termed State GST (SGST).
Additionally, Integrated GST (IGST) is levied on inter-state supplies of goods and
services and is collected by the central government.

The implementation of GST necessitated comprehensive changes in tax

administration, IT infrastructure, and compliance mechanisms. Businesses had to
adapt to the new tax regime, revamp their accounting systems, and ensure
compliance with the stringent reporting requirements under GST law. While the
rollout of GST encountered initial challenges, including technological glitches and

9
compliance hurdles, successive governments worked towards addressing these
issues through amendments and refinements to the GST framework.

Since its introduction, GST has undergone several amendments aimed at

simplifying compliance procedures, rationalizing tax rates, and addressing
industry-specific concerns. The GST Council, comprising representatives from the
central and state governments, plays a pivotal role in decision-making related to
GST, including rate revisions and policy changes.

Despite initial teething problems, GST has emerged as a transformative reform

with far-reaching implications for India's economy. It has simplified the tax
structure, reduced tax cascading, and promoted the ease of doing business. GST
has facilitated the creation of a unified national market, fostered economic
integration, and paved the way for a more competitive and resilient economy.

In conclusion, the introduction of GST represents a landmark moment in India's

economic journey, signalling a departure from the fragmented tax regime of the
past towards a more cohesive and efficient tax system. While challenges persist,
GST stands as a testament to India's commitment to economic reform and
inclusive growth, positioning the country as a more attractive destination for
investment and business.

COMPONENTS:

The Goods and Services Tax (GST) system in India comprises several key
components, each playing a vital role in the taxation framework. These
components include:

10
 Central GST (CGST): The Central Goods and Services Tax (CGST) is a
pivotal aspect of India's Goods and Services Tax (GST) system. It is a tax
imposed by the Central Government on the intra-state supply of goods and
services. CGST operates alongside State Goods and Services Tax (SGST)
and forms the dual GST structure, ensuring that both the central and state
governments have a share in the revenue generated from transactions
within a state or union territory. CGST replaces several central taxes such
as Central Excise Duty and Service Tax, simplifying the tax structure and
enhancing transparency. Administered by the Central Board of Indirect
Taxes and Customs (CBIC), CGST follows the principle of input tax
credit, allowing businesses to claim credit for the CGST paid on inputs
used in their operations, thereby preventing double taxation and promoting
efficiency. The tax rates under CGST, as well as other components of GST,
are determined by the GST Council, comprising representatives from both
the central and state governments. CGST plays a crucial role in facilitating
the seamless flow of goods and services across the country, contributing to
the ease of doing business and fostering economic growth.

 State GST (SGST): State Goods and Services Tax (SGST) is a

fundamental component of India's Goods and Services Tax (GST)
framework. It is a tax levied by state governments on the supply of goods
and services within their respective states or union territories. SGST
operates in conjunction with Central Goods and Services Tax (CGST),
forming the dual GST structure that ensures revenue sharing between the
central and state governments for intra-state transactions. SGST replaces
previous state-level taxes like Value Added Tax (VAT) and Entry Tax,
simplifying the tax regime and promoting uniformity across states.
Administered by state tax authorities, SGST follows the input tax credit
mechanism, allowing businesses to claim credit for the SGST paid on
inputs used in their operations, thus preventing cascading of taxes and
enhancing efficiency. The tax rates under SGST, along with CGST and
Integrated Goods and Services Tax (IGST), are decided by the GST

11
 Council, which comprises representatives from both the central and state
governments. SGST plays a crucial role in empowering state governments
to collect taxes on intra-state transactions, contributing to fiscal autonomy
and facilitating economic growth at the state level.

 Integrated GST (IGST): The Integrated Goods and Services Tax (IGST)
is a significant component of India's Goods and Services Tax (GST)
system, introduced to govern transactions involving the movement of
goods and services across state borders. IGST is levied by the Central
Government on inter-state supplies of goods and services, ensuring that tax
revenue is collected by the destination state where the goods or services
are consumed. IGST replaces the previous system of Central Sales Tax
(CST) and is designed to streamline the taxation of inter-state transactions
under GST. It simplifies compliance for businesses engaged in inter-state
trade by providing a single, integrated tax mechanism. Unlike CGST and
SGST, which are levied separately by the central and state governments,
IGST is administered by the Central Government, ensuring uniformity and
consistency in tax administration across state boundaries. The calculation
of IGST involves determining the tax liability on the supply of goods and
services based on the destination principle. This means that the tax rate
applied is determined by the location where the goods or services are
consumed, rather than where they are produced or supplied from. Upon the
sale of goods or services from one state to another, the seller collects
IGST, which is then apportioned between the central and destination states
or union territories. One of the key features of IGST is the seamless flow
of input tax credit (ITC) across state borders. Businesses engaged in inter-
state trade can claim credit for the IGST paid on inputs used in the
production or supply of goods and services, thereby preventing cascading
of taxes and promoting efficiency in the supply chain. The administration
of IGST is overseen by the Central Board of Indirect Taxes and Customs
(CBIC), which ensures compliance with IGST regulations and facilitates
the smooth implementation of the tax regime. The tax rates under IGST,
like CGST and SGST, are determined by the GST Council, which
comprises representatives from both the central and state governments
12
 Union Territory GST (UTGST): The Union Territory Goods and
Services Tax (UTGST) is a crucial component of India's Goods and
Services Tax (GST) system, designed specifically for the union territories
of India.
UTGST is levied by the Union Territory administration on the supply of
goods and services within its jurisdiction, ensuring that tax revenue
remains within the union territory. It works in tandem with Central Goods
and Services Tax (CGST), forming the dual GST structure that facilitates
revenue sharing between the Union Government and the Union Territory
administration. UTGST replaces previous taxes such as Value Added Tax
(VAT) and other local levies in the union territories, streamlining the tax
system and promoting uniformity in tax administration. The revenue
collected through UTGST contributes to the funding of various
developmental activities and public services within the union territories.
Like SGST, UTGST follows the input tax credit (ITC) mechanism,
allowing businesses to claim credit for the UTGST paid on inputs used in
the production or supply of goods and services. The administration and
enforcement of UTGST are overseen by the respective Union Territory tax
authorities, ensuring compliance with UTGST regulations and facilitating
the smooth functioning of the tax regime. The tax rates under UTGST, as
well as other components of GST, are determined by the GST Council,
which comprises representatives from both the central and state
governments.




13
GST COUNCIL:

The Goods and Services Tax (GST) Council, a constitutional body, serves as a
pivotal decision-making forum for matters related to GST implementation in
India. Chaired by the Union Finance Minister, it comprises finance ministers from
all states and union territories, ensuring representation from both the central and
state governments. This composition fosters cooperative federalism, allowing for
comprehensive discussions and consensus-building on GST-related issues. The
Council convenes regularly to deliberate and make recommendations on a wide
range of GST matters, including tax rates, exemptions, thresholds, and procedural
aspects. Its decisions are arrived at through a collaborative process, considering
the diverse perspectives and interests of all members. With a mandate to ensure
transparency, consistency, and uniformity in the GST framework, the Council
plays a crucial role in India's tax reform landscape. It addresses challenges,
resolves disputes between states, and monitors the implementation of GST across
the country.

Overall, the GST Council and its members contribute significantly to shaping and
refining India's GST regime, ultimately fostering economic growth, promoting
ease of doing business, and creating a harmonized tax environment nationwide.

TAX SLABS:

As of my last update, there are five main GST slab rates: 0%, 5%, 12%, 18%, and
28%. Each slab is applied based on the type of goods or services being supplied.
Here is a detailed explanation of each slab rate:

 0% GST Rate: This slab includes essential goods and services that are
deemed necessary for daily living and are thus exempt from GST. Items
such as fresh fruits and vegetables, milk, eggs, grains, healthcare services,
and education are typically taxed at 0%. The intention behind this slab is to
ensure affordability and accessibility of necessities to all citizens.

14
  5% GST Rate: Goods and services falling under this slab are taxed at a
nominal rate of 5%. Items such as packaged food items, tea, coffee, coal,
medicines, and economy class air travel fall under this category. The 5%
rate is also applicable to certain services like transportation of goods, small
restaurants, and tour operator services.

 12% GST Rate: The 12% slab is applicable to goods and services
considered to be neither essential nor luxurious. Items such as processed
food items, apparel costing less than Rs. 1000, mobile phones, business
class air travel, and state-run lotteries fall under this category. This rate
strikes a balance between revenue generation and affordability.

 18% GST Rate: Goods and services falling under the 18% slab are taxed
at a relatively higher rate. Items such as biscuits, footwear, readymade
garments, financial services, telecom services, and hotel accommodation
with room tariffs between Rs. 1,000 and Rs. 2,500 per night fall under this
category.

 28% GST Rate: The highest slab of 28% applies to goods and services
considered to be luxurious or non-essential. Items such as automobiles,
high-end electronics, luxury goods, aerated drinks, tobacco products, and
five-star hotel accommodation fall under this category. The 28% rate aims
to generate significant revenue from non-essential items while ensuring
that essential goods remain affordable.

It is important to note that some goods and services are subject to additional
cesses on top of the GST rates. Additionally, certain items, particularly those
deemed essential, may be exempt from GST altogether. The categorization of
goods and services into different tax slabs aims to balance revenue collection with

15
considerations of fairness and affordability, ensuring that essential items remain
accessible while providing revenue for the government.

OBJECTIVES OF GST:

Following are the 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 many 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

16
 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 largely
taking place.

 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 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.

17
 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.

18
BENEFITS:

Goods and Services Tax (GST) offers numerous benefits to businesses,

consumers, and the economy. Here are some of the key benefits of GST:

 Simplified Tax Structure: GST replaces multiple indirect taxes levied by

the central and state governments, streamlining the tax structure, and
reducing compliance burdens for businesses. It simplifies the tax process
by providing a unified tax regime across the country.

 Elimination of Cascading Taxation: GST follows a value-added tax

system, allowing businesses to claim input tax credit for taxes paid on
inputs used in the production or supply of goods and services. This
prevents the cascading effect of taxes, where taxes are levied on top of
taxes, leading to higher prices for consumers.

 Uniform Tax Rates: GST promotes uniformity in tax rates across states,
eliminating tax rate disparities and reducing tax evasion. This creates a
level playing field for businesses operating in different parts of the country
and fosters a harmonized tax environment.

 Boost to Economic Growth: By promoting ease of doing business,

reducing compliance costs, and eliminating barriers to interstate trade,
GST fosters economic growth and development. It encourages investment,
innovation, and entrepreneurship, leading to increased productivity and
competitiveness.

 Increased Tax Compliance: GST's robust compliance mechanisms,

including online registration, electronic filing of returns, and invoice
matching, help improve tax compliance and reduce tax evasion. This leads
to higher tax revenues for the government, which can be utilized for public
welfare and infrastructure development.

19
  Expansion of Tax Base: GST expands the tax base by bringing more
businesses into the formal economy. With a broader tax base, the
government can reduce tax rates, making goods and services more
affordable for consumers and boosting consumption.

 Savings in Logistics and Supply Chain Costs: GST eliminates state

checkpoints and entry taxes, reducing transportation time and costs for
businesses. This leads to efficiency gains in logistics and supply chains,
benefiting both producers and consumers.

 Simplified Interstate Trade: Under the pre-GST regime, interstate trade

faced numerous tax barriers and compliance issues. GST simplifies
interstate trade by treating the entire country as a single market, facilitating
the free movement of goods and services across state borders.

 Transparency and Accountability: GST introduces greater transparency

and accountability in the tax system, with all transactions being recorded
electronically. This reduces the scope for corruption and ensures fair and
equitable taxation.

GST represents a significant tax reform initiative aimed at modernizing India's

indirect tax system, promoting economic growth, and enhancing the ease of doing
business. While there may be initial challenges in transitioning to the new tax
regime, the long-term benefits of GST are expected to outweigh the short-term
disruptions.

20
CHALLENGES:

While Goods and Services Tax (GST) brings several benefits, its implementation
has also posed various challenges. Here are some of the key challenges to GST:

 Complexity in Compliance: The GST framework, with its multiple tax

rates, compliance requirements, and online filing procedures, can be
complex for businesses, especially small and medium enterprises (SMEs).
Complying with GST regulations requires businesses to invest time,
resources, and expertise in understanding and adhering to the law.

 Technology Infrastructure: GST relies heavily on technology for

registration, filing returns, invoice matching, and compliance. However,
many businesses, particularly in rural and remote areas, may face
challenges in accessing and using digital platforms due to inadequate
infrastructure, connectivity issues, and limited digital literacy.

 Transition Issues: The transition from the pre-GST regime to GST has
been challenging for businesses, especially in terms of adjusting to new tax
rates, procedures, and compliance requirements. Some businesses have
faced difficulties in migrating their existing tax credits and reconciling
their financial records with the new system.

 Tax Rate Rationalization: The multiplicity of tax rates under GST, with
five main tax slabs and various exemptions, has led to complexity and
confusion. There have been calls for further rationalization of tax rates to
simplify the tax structure and reduce compliance burdens.

 Input Tax Credit (ITC) Challenges: While GST allows businesses to

claim input tax credit for taxes paid on inputs, there have been instances of

21
 challenges in availing and reconciling ITC due to mismatches in invoices,
delayed filings, and non-compliance by suppliers. This has led to liquidity
issues for businesses and disputes with tax authorities.

 Compliance Burden for SMEs: Small and medium enterprises (SMEs)

may face significant compliance burdens under GST, including
registration, filing returns, and maintaining detailed records. Compliance
costs can be particularly challenging for SMEs with limited resources and
expertise, leading to concerns about their competitiveness and survival.

 GST Network (GSTN) Issues: The GSTN, the IT backbone of GST, has
faced technical glitches and system downtime, causing disruptions in filing
returns and accessing taxpayer services. Improvements in the GSTN
infrastructure and user experience are essential to enhance compliance and
taxpayer satisfaction.

 Transitionary Disruptions: The introduction of GST has led to temporary

disruptions in supply chains, pricing strategies, and business operations.
Some sectors may experience initial challenges in adjusting to the new tax
regime, resulting in short-term disruptions to economic activity.

Addressing these challenges requires concerted efforts from the government,

businesses, and other stakeholders. Continuous dialogue, simplification of
procedures, investment in technology infrastructure, capacity building, and
support measures for SMEs are essential for the successful implementation and
long-term success of GST.

22
REGISTRATION:

The registration limits in Goods and Services Tax (GST) vary based on the nature
of the business and its location. As of my last update, there are three primary
thresholds for mandatory GST registration:

 Aggregate Turnover Threshold: For most businesses, GST registration is

mandatory if their aggregate turnover exceeds a specified threshold limit.
For suppliers of goods, this threshold is set at ₹40 lakhs (₹20 lakhs for
special category states). For suppliers of services, the threshold is also ₹40
lakhs, but there is no distinction based on the location of the business.

 Compulsory Registration Categories: Certain categories of businesses

are required to register for GST regardless of their turnover. This includes
businesses engaged in inter-state supply of goods, casual taxable persons,
non-resident taxable persons, persons required to pay tax under reverse
charge, and e-commerce operators.

 Voluntary Registration: Businesses that do not meet the mandatory

registration criteria may opt for voluntary GST registration. This allows
them to avail benefits such as input tax credit and participate in the formal
economy voluntarily.

It is essential for businesses to monitor their turnover regularly to determine their

GST registration status accurately. Failure to register for GST when required may
lead to penalties and legal consequences. Additionally, businesses should consider
the implications of GST registration on their operations, including compliance
requirements, tax liabilities, and input tax credit eligibility.

23
COMPOSITION SCHEME:

The Composition Scheme under Goods and Services Tax (GST) offers a
simplified compliance framework for small businesses, easing their tax
obligations. Businesses with an annual turnover below a prescribed limit, typically
set at ₹1.5 crore for goods and ₹50 lakhs for service providers, can opt for this
scheme. Once enrolled, they pay tax at a fixed rate, usually lower than standard
GST rates, without the need for detailed invoice records or claiming input tax
credit.

Participating businesses enjoy reduced compliance burdens, allowing them to

focus on operations. However, there are limitations. They cannot collect tax from
customers or claim input tax credit on purchases. Inter-state transactions are also
restricted, limiting business expansion. Despite limitations, the Composition
Scheme benefits small businesses in sectors with tight profit margins or high
compliance costs, offering a simpler tax process. Eligibility criteria, turnover
thresholds, and tax rates are set by the GST Council, ensuring relevance to
prevailing economic conditions. Businesses must weigh the scheme's benefits
against restrictions to make informed decisions aligning with their needs.

EXEMPTION:

Exemptions in Goods and Services Tax (GST) refer to specific goods, services, or
transactions that are either completely exempt from GST or taxed at a
concessional rate. These exemptions are designed to achieve various policy
objectives, such as protecting essential goods and services, promoting exports,
supporting specific industries, and easing the compliance burden on small
businesses. Exemptions may be absolute, meaning no GST is levied, or
conditional, subject to certain criteria being met. The list of exempted items is
determined and updated periodically by the GST Council, considering factors
such as economic implications and policy objectives. Understanding GST
exemptions is essential for businesses to ensure compliance and accurately
calculate their tax liabilities.

24
TIME, PLACE AND VALUE OF SUPPLY:

 Time Of Supply: Time of supply means the point in time when

goods/services are considered supplied’. When the seller knows the ‘time’,
it helps him identify due date for payment of taxes.

 Place Of Supply: The place of supply of goods is the place where the
ownership of goods changes. Place of supply is required for determining
the right tax to be charged on the invoice, whether IGST or CGST/SGST
will apply.

 Value Of Supply: The amount collected by the seller from the buyer is the
value of supply. Value of supply is important because GST is calculated on
the value of the sale.

REVERSE CHARGE MECHANISM (RCM):

Typically, the supplier of goods or services pays the tax on supply. Under the
reverse charge mechanism, the recipient of goods or services becomes liable to
pay the tax, i.e., the chargeability gets reversed.

The objective of shifting the burden of GST payments to the recipient is to widen
the scope of levy of tax on various unorganized sectors, to exempt specific classes

25
of suppliers, and to tax the import of services (since the supplier is based outside
India).

Only certain types of business entities are subject to the reverse charge
mechanism.

GOODS AND SERVICE TAX IDENTIFICATION NUMBER

(GSTIN):
Before GST was implemented, all dealers registered under the state VAT law were
assigned a unique TIN number by the respective state tax authorities. Similarly,
service providers were assigned a service tax registration number by the Central
Board of Indirect taxes and Custom (CBIC).

Under the GST regime, all registered taxpayers are consolidated into one single
platform for compliance and administration purposes and are assigned registration
under a single authority.

Each taxpayer is assigned a state-wise PAN-based 15-digit Goods and Services

Taxpayer Identification Number (GSTIN).

26
Here is a format break-down of the GSTIN:

 The first two digits represent the state code as per Indian Census 2011.
Every state has a unique code. For instance, State code of Karnataka is 29
 The next ten digits will be the PAN number of the taxpayer.
 The thirteenth digit will be assigned based on the number of registrations
within a state.
 The fourteenth digit will be “Z” by default.
 The last digit will be for check code. It may be an alphabet or a number.

HARMONISED SYSTEM NOMENCLATURE CODE (HSN):

HSN code stands for “Harmonized System of Nomenclature”. This system has
been introduced for the systematic classification of goods all over the world. HSN
code is a 6-digit uniform code that classifies 5000+ products and is accepted
worldwide. It was developed by the World Customs Organization (WCO) and it
came into effect from 1988. It has about 5,000 commodity groups, each identified

27
by a six-digit code, arranged in a legal and logical structure. It is supported by
well-defined rules to achieve uniform classification.

The main purpose of HSN is to classify goods from all over the World in a
systematic and logical manner. This brings in a uniform classification of goods
and facilitates international trade.

SERVICE ACCOUNTING CODE (SAC):

The SAC code means Services Accounting Code. It applies to all the services
rendered within India. Thus, the SAC code system is used for identifying,
classifying, measuring, and determining the applicability of GST on services in
India.

Under GST, a SAC code consists of six digits. Since services are covered under
chapter 99, all SAC codes start with 99. While the other four digits explain the
nature of the service.

28
 CHAPTER 2:
DESIGN OF THE
STUDY

29
 OBJECTIVES OF THE STUDY

In this introductory segment of my internship report, I aim to elucidate the core

objectives that have guided my study and experiences throughout this insightful
journey. As an intern within SS ASSOCIATES, I embarked on a mission to
unravel key insights, sharpen essential skills, and contribute meaningfully to the
firm's endeavours.

The primary objectives of my internship report revolve around:

 Learn How Things Work: I wanted to dive deep into the world of
accounting and understand the nuts and bolts of how money moves
around, what rules we must follow, and what makes the financial world
tick.

 Master New Skills: I was eager to level up my skills in things like reading
financial documents, understanding tax laws, and communicating
effectively with clients and colleagues. Basically, I wanted to become a
better accountant-in-training.

 Be a Team Player: I aimed to be a helpful member of the team by

pitching in wherever I could. Whether it is assisting with client projects,
crunching numbers, or helping with big tasks, I wanted to do my part to
contribute to the success of the firm.

 Grow Personally and Professionally: I saw this internship as a chance to

grow not just as a professional but also as a person. That meant stepping
out of my comfort zone, tackling challenges head-on, and pushing myself
to learn and improve every day.

30
  Building Professional Networks: To establish meaningful connections
that could potentially lead to future career opportunities or mentorship
relationships.

 Learning GST Software and Tools: The firm used specialized software
and tools for GST compliance and reporting. The objective was to
familiarise myself with these tools, learning how to navigate them
efficiently, and utilizing them to perform various GST-related tasks.

 Developing Analytical Skills: To develop analytical skills by analysing

financial data, interpreting GST laws and regulations, and identifying
compliance gaps or opportunities for improvement. I enhanced my ability
to analyse complex GST-related issues and provide actionable insights.

 To improve communication skills: opportunities to communicate with

colleagues, supervisors, and clients in a professional setting. Engaging in
meetings, discussions, and presentations can enhance verbal
communication skills.

 Staying updated on GST changes: To stay updated on the latest GST

developments through training sessions, workshops, and industry
publications to ensure compliance and provide value-added services to
clients.

By aligning my efforts with these overarching objectives, I endeavour to present a

comprehensive and insightful account of my internship experience.

31
 METHODOLGY

In elaborating this report, it is essential to note that the findings and analyses
presented herein are based solely on secondary sources of data. Secondary data,
derived from existing literature, reports, and databases, forms the foundation of
this study. The research did not involve primary data collection methods such as
surveys or interviews. By utilizing secondary sources, this report aims to provide a
comprehensive overview and analysis of existing knowledge and insights within
the chosen field.

SCOPE OF THE STUDY

The scope of this study is concentrated exclusively on topics pertaining to Goods

and Services Tax (GST), specifically within the context of my internship
experience at SS ASSOCIATES. During my time at the firm, my tasks and
responsibilities predominantly revolved around GST-related matters, including
legislative compliance, client advisory services, and tax filing procedures.
Therefore, this report delves into various aspects of GST, such as its legislative
framework, compliance challenges faced by businesses, implications for different
sectors, and the practical application of GST regulations in client engagements.
Additionally, the scope includes an examination of the benefits and challenges
associated with GST implementation, as well as an exploration of the complexities
involved in filing GST returns and ensuring compliance with regulatory
requirements. It is important to note that the scope of this study does not extend
beyond the realm of GST, as it is informed solely by my experiences and
observations during the internship at the firm.

32
 LIMITATION OF THE STUDY

This report is all about Goods and Services Tax (GST) topics because it reflects
what I learned during my internship at SS ASSOCIATES. So, I will be diving
deep into things like GST laws, challenges businesses face with GST, and how to
file GST returns. However, because my internship was focused on GST, I will not
be talking about other tax or accounting topics. While this might limit the scope of
the report, my goal is to provide a thorough understanding of GST based on what I
learned during my internship.

33
CHAPTER 3:
DISCUSSION

34
ANALYSIS

35
 JOB DESCRIPTION

During my internship, I was tasked with supporting the GST team in various
aspects of GST compliance, advisory, and implementation services. This role
involved assisting in analysing client's financial records, preparing GST returns,
conducting research on GST laws and regulations.

Here is a brief description about the tasks performed during the internship:

 Data Analysis with Excel: Leveraged Excel for data manipulation and
analysis to identify trends and discrepancies in clients' financial records.
Utilized Excel and Tally software to organize and summarize data for
reporting purposes, aiding in the identification of potential GST
compliance issues and opportunities for optimization.

 Assisting in GST Registration: Supported the GST team in the

registration process for new clients, including gathering required
documents, filling out registration forms, and coordinating with
government authorities for registration approval. Provided guidance on
eligibility criteria for various registration categories, including voluntary
registration and composition scheme.

 GST Compliance: Worked closely with senior team members to gather

and analyse clients’ financial data to ensure compliance with GST
regulations. Prepared and filed GST returns accurately and timely,
including GSTR-1 (Outward Supplies), GSTR-3B (Summary Return), and
GSTR-9 (Annual Return). Assisted in identifying GST exemptions
applicable to clients’ transactions and ensuring proper documentation for
exempt supplies.

36
 Research and Analysis: Conducted research on GST laws, regulations,
and updates to stay updated with changes in the GST framework. Assisted
in analysing the impact of GST changes on clients’ businesses and
provided recommendations accordingly.

 Documentation: Maintained accurate records of clients’ GST

transactions, filings, and correspondence using Tally. Assisted in preparing
documentation for GST audits and assessments. Ensured compliance with
documentation requirements for availing GST exemptions and opting for
composition schemes.

These was the few tasks performed by me and helped me bring theoretical
knowledge to practical.

37
FINDINGS

38
 TALLY ERP9

Tally ERP9 software is a trusted solution for businesses navigating the

complexities of Goods and Services Tax (GST). With Tally ERP9, GST firms can
efficiently handle various GST-related tasks such as invoicing, tax calculation,
return filing, and reconciliation. The software automates GST compliance by
accurately computing taxes, generating GST invoices in the prescribed format,
and facilitating seamless filing of GST returns.

For example, purchase entry in the software is as follow:

Step 1: Navigate to Purchase Voucher Entry: Go to "Gateway of Tally" and select

"Accounting Vouchers."
Step 2: Select Purchase Voucher Type: In the accounting voucher screen, choose
the voucher type as "Purchase" (Shortcut: F9).

Step 3: Enter Purchase Details:

 Date: Enter the date of the purchase transaction.

 Supplier's Name: Select or enter the name of the supplier (e.g., "Vendor
ABC").
 Purchase Ledger: Choose the appropriate purchase ledger account.
 Stock Item(s): Enter the details of the items purchased along with quantity
and rate.

Step 4: Enter GST Details:

 Taxable Value: Tally ERP9 calculates the taxable value automatically

based on the quantity and rate entered.
 Tax Amount: Tally ERP9 calculates the GST amount based on the
applicable tax rate (18% in this example).

39
 EXCEL

Excel can serve as a platform for entering and organizing GST-related data,
including sales invoices, purchase invoices, input tax credits, and tax payments.
Each transaction can be recorded in a structured format for easy reference and
analysis.

Excel can also be used to generate GST reports. It is used to create summary
sheets that consolidate data from individual transaction sheets to provide an
overview of GST collected and paid. Using Excel formulas to automatically
calculate GST amounts and total amounts makes it easier to use. For example,
formula =Amount * GST Rate to calculate the GST amount for each transaction.

40
For example,

HARMONISED SYSTEM OF NOMENCLATURE (HSN CODE):

HSN code stands for “Harmonized System of Nomenclature”. This system has
been introduced for the systematic classification of goods all over the world. HSN
code is a 6-digit uniform code that classifies 5000+ products and is accepted
worldwide.

For example:

Handkerchiefs made of Textile matters 62.13.90

First two digits (62) represent the chapter number for Articles of apparel and
clothing accessories, not knitted or crocheted.

Next two digits (13) represent the heading number for handkerchiefs.

Finally, last two digits (90) is the product code for handkerchiefs made of other
textile materials.

41
 SERVICE ACCOUNTING CODE (SAC CODE):

Like goods, services are also classified uniformly for recognition, measurement
and taxation. Codes for services are called Services Accounting Code or SAC

For example:

Legal documentation and certification services concerning patents, copyrights and

other intellectual property rights-- 995411

The first two digits (99) are same for all services.

The next two digits (54) represent the major nature of service, in this case,
construction services

The last two digits (11) represent detailed nature of service, i.e., general
construction services of buildings.

42
 GST REGISTRATION

In India, along with the GST registration threshold limits based on turnover, there
are additional threshold limits for specific categories of businesses and
transactions. Here is a comprehensive overview:

 Regular Threshold: The regular GST registration threshold for most

businesses is an aggregate turnover exceeding ₹20 lakhs (₹10 lakhs for
special category states).

 Special Category States Threshold: For businesses operating in special

category states like northeastern states and hill states (e.g., Himachal
Pradesh, Uttarakhand, and Jammu and Kashmir), the GST registration
threshold is lower, set at an aggregate turnover exceeding ₹10 lakhs.

 Voluntary Registration Threshold: Businesses with turnover below the

mandatory threshold have the option to register for GST voluntarily. There
is no specific turnover threshold for voluntary registration; businesses can
choose to register at any turnover level.

 Composition Scheme Threshold: Businesses with an aggregate turnover

up to ₹1.5 crores can opt for the composition scheme, which offers
simplified compliance and a lower tax rate. However, businesses opting
for the composition scheme cannot avail input tax credit and are subject to
certain restrictions.

 E-commerce Operator Threshold: E-commerce operators are required to

obtain GST registration, irrespective of turnover. This means that even if
an e-commerce operator's turnover is below the regular threshold, they are
still required to register for GST.

 Inter-State Threshold for Service Providers: For service providers,

registration is mandatory if they provide services across state borders

43
 (inter-state services), irrespective of turnover. This means that even if a
service provider's turnover is below the regular threshold, they must
register for GST if they provide inter-state services.

 Threshold for Specific Goods/Services: There are specific threshold

limits for certain goods or services as per GST regulations. For example,
businesses engaged in the supply of certain goods like ice cream, edible
ice, and pan masala are required to register for GST irrespective of
turnover.

It is essential for businesses to be aware of these various threshold limits and

comply with the GST registration requirements applicable to their specific
situation. Failure to register for GST when required can result in penalties and
legal consequences. Additionally, businesses should seek guidance from tax
professionals or refer to official GST guidelines for accurate and up-to-date
information.

PROCESS FOR REGISTRATION:

The process for GST registration in India involves several steps, which can be
completed online through the GST portal. Here is a simplified guide to the
registration process:

1. Visit the GST Portal: Access the official Goods and Services Tax (GST)
portal at https://www.gst.gov.in/.

2. Click on "Register Now": On the GST portal homepage, click on the

"Register Now" button under the "Taxpayers (Normal/TDS/TCS)" section.

3. Fill the Registration Application Form: You will be directed to the GST
registration application form. Fill in all the required details accurately. The
form includes sections for business details, promoter/partner/director
details, address details, and bank account details.

44
4. Upload Documents: Upload the necessary supporting documents as
specified in the registration form. Commonly required documents include:
o Proof of business registration (e.g., certificate of incorporation, partnership
deed, proprietorship documents)
o Address proof of the principal place of business
o Identity and address proof of promoters/partners/directors
o Bank account details (including canceled cheque or bank statement)

5. Verification through OTP: After filling in the application form and

uploading the documents, you will receive an OTP (One-Time Password)
on the mobile number and email ID provided in the application. Enter the
OTP to verify your details.

6. ARN Generation: Once the verification is successful, an Application

Reference Number (ARN) will be generated and sent to your registered
email and mobile number. Note down the ARN for future reference.

7. Processing by Tax Authorities: The GST registration application will be

processed by the tax authorities. They may verify the information provided
and conduct any necessary checks.

8. Approval or Clarification: If the application is found to be in order, the

GST registration certificate will be issued within a few days. In case of any
discrepancies or additional information required, the tax authorities may
ask for clarification or additional documents.

9. Provisional GSTIN: Upon approval of the application, a provisional

GSTIN (Goods and Services Tax Identification Number) will be issued.
This provisional GSTIN can be used to start conducting business
transactions.

10. Final GSTIN: After the verification process is completed, the final GST
registration certificate with the permanent GSTIN will be issued.
45
 11. Ongoing Compliance: Once registered for GST, businesses must comply
with various GST regulations, including filing periodic GST returns,
maintaining proper records, issuing tax invoices, and complying with input
tax credit rules.

COMPOSITION SCHEME

Composition Scheme is a simple and easy scheme under GST for taxpayers. Small
taxpayers can get rid of tedious GST formalities and pay GST at a fixed rate of
turnover. This scheme can be opted by any taxpayer whose turnover is less than
Rs. 1.5 crore.
46
As per the CGST Act, 2018, a composition dealer can also supply services to an
extent of ten percent of turnover, or Rs.5 lakhs, whichever is higher. Turnover of
all businesses registered with the same PAN should be taken into consideration to
calculate turnover.

The following people cannot opt for the scheme:

 Manufacturer of ice cream, pan masala, or tobacco

 A person making inter-state supplies
 A casual taxable person or a non-resident taxable person

The following conditions must be satisfied to opt for composition scheme:

 No Input Tax Credit can be claimed by a dealer opting for composition

scheme
 The dealer cannot supply goods not taxable under GST such as alcohol.
 The taxpayer must pay tax at normal rates for transactions under the
Reverse Charge Mechanism
 If a taxable person has different segments of businesses (such as textile,
electronic accessories, groceries, etc.) under the same PAN, they must
register all such businesses under the scheme collectively or opt out of the
scheme.
 The taxpayer must mention the words ‘composition taxable person’ on
every notice or signboard displayed prominently at their place of business.
 The taxpayer must mention the words ‘composition taxable person’ on
every bill of supply issued by him.

Following chart explains the rate of tax on turnover applicable for

composition dealers:

47
 INPUT TAX CREDIT (ITC)

ITC stands for Input Tax Credit. It is a mechanism under the Goods and Services
Tax (GST) system that allows businesses to claim a credit for the tax paid on
inputs (i.e., inputs, capital goods, and services) used during business. In simpler
terms, businesses can reduce the tax liability they owe to the government by
claiming credit for the GST paid on their purchases.

Here's how Input Tax Credit works:

 Tax Paid on Inputs: When a business purchases goods or services, GST is

levied on those purchases. This tax paid on inputs is known as Input Tax.

 Claiming Input Tax Credit: The business can claim Input Tax Credit for
the GST paid on inputs, provided that the inputs are used for taxable
supplies (i.e., supplies that attract GST). This means that if the inputs are

48
 used for exempt supplies or non-business purposes, Input Tax Credit
cannot be claimed.

 Adjustment Against Output Tax Liability: The Input Tax Credit claimed
by the business is adjusted against its output tax liability. Output tax
liability refers to the GST collected by the business on its sales or supplies.

 Net Tax Liability: After adjusting Input Tax Credit against the output tax
liability, the business is required to pay the net tax liability to the
government. If the Input Tax Credit exceeds the output tax liability, the
excess credit can be carried forward to the subsequent tax periods or
refunded in certain cases.

Example:

Suppose, you are a manufacturer –

Tax payable on output (final product) is Rs 450

Tax paid on input (purchases) is Rs 300

You can claim input tax credit of Rs 300 and you need to pay only Rs 150.

49
 GST RETURNS

A GST return is a document containing details of all income/sales and/or

expenses/purchases that a GST-registered taxpayer (every GSTIN) is required to
file with the tax administrative authorities. This is used by tax authorities to
calculate net tax liability.

There are 13 returns under GST. They are the GSTR-1, GSTR-3B, GSTR-4,
GSTR-5, GSTR-5A, GSTR-6, GSTR-7, GSTR-8, GSTR-9, GSTR-10, GSTR-11,
CMP-08, and ITC-04. However, all returns do not apply to all taxpayers.
Taxpayers file returns based on the type of taxpayer/type of registration obtained.

GSTR-1

In India, GSTR-1 is a monthly or quarterly return that businesses registered under

the Goods and Services Tax (GST) regime are required to file. It contains details
of outward supplies (sales) made by the taxpayer.

Due date: The due dates for GSTR-1 are based on your aggregate turnover.

Businesses with sales of up to Rs.5 crore have an option to file quarterly returns
under the QRMP scheme and are due by the 13th of the month following the
relevant quarter.

Whereas, those taxpayers who do not opt for the QRMP scheme or have a total
turnover above Rs.5 crore must file the return every month on or before the 11th
of the next month.

50
 GSTR – 3B

GSTR-3B is another important form under the Goods and Services Tax (GST)
regime in India. It's a monthly self-declaration that summarizes the details of
outward supplies, inward supplies, input tax credit (ITC) claimed, and tax payable
for a particular tax period.

Due date: The due date is either 20th of every month or 22nd/24th of the month
following every quarter, for monthly and quarterly filers (Refer the image below)

Taxpayers opting for the QRMP scheme from 1st January 2021: The due date is
22nd or 24th of the month following every quarter, as per the State/UT of the
principal place of business (list of States/UT given in the image).

51
 GSTR – 9

GSTR-9 return filing is more than consolidating the monthly returns filed during a
financial year. Businesses must collate the Goods and Services Tax (GST) data,
including sales register, purchase register, returns filed, taxes paid, demands, and
refunds. Further, one must file GSTR-9 if they were registered at least for a single
day in a financial year. They should have filed all the GSTR-1 and 3B returns for
the financial year before filing GSTR-9.

 It consists of details regarding the outward and inward supplies

made/received during the relevant financial year under different tax heads
i.e. CGST, SGST & IGST and HSN codes.
 It is a consolidation of all the monthly/quarterly returns (GSTR-1, GSTR-
2A, GSTR-3B) filed in that year. Though complex, this return helps in
extensive reconciliation of data for 100% transparent disclosures.

Due date: The due date to file GSTR-9 for a financial year is 31st of December
of the year following the relevant financial year. Accordingly, businesses should
file GSTR-9 for FY 2023-24 by 31st December 2024.

NIL RETURN

Nil GSTR-1 return must be filed by all registered taxpayers compulsorily when
there are no sales or supplies during the month or quarter.

Steps to be followed to file a Nil GSTR-1 on the GST portal:

1. Login to the GST Portal.

2. Go to services in the drop-down, select returns dashboard.
3. Select month and year of filing from the drop-down.
4. Click on ‘Prepare online’ on GSTR-1 title.

52
 5. Click on ‘Generate GSTR-1 Summary’.
6. Select the checkbox and click on ‘Preview.’
7. Click on ‘Submit.’ One can file the return by either using DSC or EVC.

Once the return is filed, an acknowledgement reference number will be

displayed stating that the return has been filed.

CMP – 08

CMP-08 is a quarterly return that needs to be filed by taxpayers registered under

the Composition Scheme under the Goods and Services Tax (GST). The
Composition Scheme is designed for small taxpayers to simplify their compliance
requirements.

CMP-08 is a summary of self-assessed tax liabilities for outward supplies and

inward supplies attracting reverse charge. It is a simple return compared to regular
GST returns, as it does not require detailed invoice-level information.

Due date: The due date for filing CMP-08 is the 18th of the month following the
end of the quarter. For example, for the quarter ending in March, the due date
would typically be April 18th. However, it is always advisable to verify the due
dates from official sources or consult with a tax professional for the most accurate
information.

Here is a list of all the returns to be filed as prescribed under the GST Law
along with due dates:

53
Return
Description Frequency Due Date
Form

11th of the next

Monthly
Details of outward month.

supplies of taxable
GSTR-1
goods and/or Quarterly (If 13th of the month
services affected. opted under the succeeding the

QRMP scheme) quarter.

Summary return 20th of the next

Monthly
of outward month.

supplies and input

GSTR-3B tax credit claimed, Quarterly (For

22nd or 24th of the
along with taxpayers under
month succeeding the
payment of tax by the QRMP
quarter
the taxpayer. scheme)

Statement-cum-

challan to make a

tax payment by a 18th of the month

CMP-08 taxpayer Quarterly succeeding the

registered under quarter.

the composition
scheme under

54
Return
Description Frequency Due Date
Form

Section 10 of the

CGST Act.

Return for a

taxpayer

registered under 30th of the month

GSTR-4 the composition Annually succeeding a

scheme under financial year.

Section 10 of the

CGST Act.

20th of the next

Return to be filed month.

GSTR-5 by a non-resident Monthly (Amended to 13th by

taxable person. Budget 2022; yet to

be notified by CBIC.)

Return to be filed

by non-resident 20th of the next

GSTR-5A Monthly
OIDAR service month.

providers.

55
Return
Description Frequency Due Date
Form

Return for an

input service

distributor to
13th of the next
GSTR-6 distribute the Monthly
month.
eligible input tax

credit to its

branches.

Return to be filed

by registered
10th of the next
GSTR-7 persons deducting Monthly
month.
tax at source

(TDS).

Return to be filed

by e-commerce

operators

containing details
10th of the next
GSTR-8 of supplies Monthly
month.
effected and the

amount of tax

collected at source

by them.

56
Return
Description Frequency Due Date
Form

Annual return by a 31st December of the

GSTR-9 Annually
regular taxpayer. next financial year.

Self-certified
31st December of the
GSTR-9C reconciliation Annually
next financial year.
statement.

Final return to be Once, when the Within three months

filed by a taxpayer GST of the date of

GSTR-10 whose GST registration is cancellation or date

registration is cancelled or of cancellation order,

cancelled. surrendered. whichever is later.

Details of inward

supplies to be 28th of the month

furnished by a following the month

GSTR-11 Monthly
person having for which statement

UIN and claiming is filed.

a refund

57
 GST PAYMENT

GST payment is to be made when the GSTR 3 is filed i.e. by 20th of the next
month.

GST payment can be made in 2 ways:

 Payment through Credit Ledger - The credit of ITC can be taken by

dealers for GST payment. The credit can be taken only for payment of Tax.
Interest, penalty, and late fees cannot be paid by utilizing ITC.
 Payment through Cash Ledger - GST payment can be made online or
offline. The challan must be generated on GST Portal for both online and
offline GST payment. Where tax liability is more than Rs 10,000, it is
mandatory to pay taxes Online.

Penalty for non-payment or delayed payment: If GST is short paid, unpaid, or

paid late interest at a rate of 18% is required to be paid by the dealer. Also, a
penalty to be paid. The penalty is higher of Rs. 10,000 or 10% of the tax short
paid or unpaid.

GST REFUND

Usually when the GST paid is more than the GST liability a situation of claiming
GST refund arises. Under GST the process of claiming a refund is standard.

There are many cases where refund can be claimed. Here are some of them:

 Excess payment of tax is made due to mistake or omission.

 Dealer Exports (including deemed export) goods/services under claim of
rebate or Refund
 ITC accumulation due to output being tax exempt or nil-rated
 Refund of tax paid on purchases made by Embassies or UN bodies

58
  Tax Refund for International Tourists
 Finalization of provisional assessment

E-WAY BILL

E-Way Bill is an Electronic Way bill for movement of goods to be generated on

the E-Way Bill Portal. A GST registered person cannot transport goods in a
vehicle whose value exceeds Rs. 50,000 (Single Invoice/bill/delivery challan)
without an e-way bill that is generated on ewaybillgst.gov.in. When an E-Way bill
is generated, a unique E-way Bill Number (EBN) is allocated and is available to
the supplier, recipient, and the transporter.

E-Way bill can be generated by the following persons:

 Registered Person - E-Way bill must be generated when there is a

movement of goods of more than Rs 50,000 in value to or from a
registered person. A Registered person or the transporter may choose to
generate and carry E-Way bill even if the value of goods is less than Rs
50,000.
 Unregistered Persons - Unregistered persons are also required to generate
e-Way Bill. However, where a supply is made by an unregistered person to
a registered person, the receiver will have to ensure all the compliances are
met as if they were the supplier.
 Transporter - Transporters carrying goods by road, air, rail, etc. also need
to generate E-Way Bill if the supplier has not generated an E-Way Bill.

Validity of E-Way bill: The validity period of an E-Way Bill varies depending on
the distance to be travelled. Here is a breakdown:

 Less than 100 kms: The validity period is 1 day.

 100 kms or more but less than 300 kms: The validity period is 3 days.

59
 300 kms or more but less than 500 kms: The validity period is 5 days.
 500 kms or more but less than 1,000 kms: The validity period is 10 days.
 1,000 kms or more: The validity period is 15 days.

60
CONCLUSION

61
"In my internship, I played a vital role in supporting the GST team across various
tasks. Using Excel and Tally, I meticulously analysed clients' financial data,
spotting trends, and addressing discrepancies in their records to ensure accuracy.
This helped us identify potential issues with GST compliance and opportunities
for improvement.

I supported team members in facilitating the GST registration process for our
clients. This involved aiding on the necessary documents and eligibility criteria,
including voluntary registration and the composition scheme. Through
collaborative efforts and effective coordination, we ensured a smooth and hassle-
free registration experience for our clients.

Collaborating closely with senior team members, I contributed to ensuring clients'

adherence to GST regulations. This involved thorough preparation and timely
filing of GST returns such as GSTR-1, GSTR-3B, and GSTR-9, accurately
reflecting their transactions. Additionally, I assisted in identifying applicable GST
exemptions for clients and maintained proper documentation to support exempt
supplies.

Staying updated with changes in GST laws and regulations was crucial. I
conducted research to understand the implications of these changes on our clients'
businesses, providing valuable insights and recommendations to help them
navigate the evolving GST landscape effectively.

Moreover, I gained knowledge about e-way bill generation, which is crucial for
the movement of goods in compliance with GST regulations. This learning further
enhanced my understanding of GST compliance procedures.

Furthermore, I maintained meticulous records of clients' GST transactions, filings,

and correspondence using Tally. This ensured that we were well-prepared for GST
audits and assessments, and that we met all documentation requirements for
availing exemptions and opting for composition schemes.

Overall, my internship experience was marked by a comprehensive fulfilment of

my objectives. By effectively translating theoretical knowledge into practical
applications, I contributed to helping our clients navigate GST compliance with
confidence."

62
CHAPTER – 4:
LEARNING
OUTCOMES

63
During my internship at the firm, I had the chance to dive deep into the world of
GST. Working alongside seasoned pros, I tackled various projects that helped me
sharpen my skills. It was like putting together a puzzle, understanding how
everything in the industry connects. This experience taught me to adapt quickly
and keep growing every step of the way.

Here are few learning outcomes:

 Networking: I learned how to communicate and build relationships with

the people I worked with. I learned how to introduce myself, talk about my
interests, knowledge and skills with entrepreneurs and business owners, as
well as how to ask questions and gain a better understanding of businesses
not only in the co-working space, but also others in the market. This
process overall helped me develop my professional network and
emphasized the importance of creating these connections.

 Tally entries: Tally is an ERP accounting software package used for

recording day to day business data. It helps in maintaining financial
records of the company that includes all receipts and payments along with
taxes and deductions. At first, we were briefed regarding how to use tally
and enter the data on it for few days. Later they provided us with raw data
and punch data in tally.
Since tally is one of important software in business world. And getting the
opportunity to learn regarding that would help me boost my career in
future.

 Data entries in excel sheet: I punched data of customers like their bank
transactions, sales, purchases and so on in excel sheet.
Through this, I learned regarding segmentation of data into different heads.
It also helped me knowing many technical aspects of MS excel and
improved typing speed with more precision.

64
 Following the organisational culture: Every organization despite their
size has its own culture. It is essential to observe others and learn how they
engage and interact with co-workers, or help them with projects and task.
During my internship in that organization, I was able to adopt quite well in
their working environment as employees were kind and helpful. It also
helps me know how the organization culture feels like. A simple example
can be a bio matric for attendance, which aid me in knowing the value of
time.

 Communication: Effective communication was key to succeeding in my

role. I improved my ability to convey ideas clearly and succinctly, whether
through email, presentations, or in-person discussions. This skill was
crucial for collaborating with team members, updating supervisors on
project progress, and interacting with clients.

 Time Management: Throughout the internship, I was often tasked with

managing multiple projects simultaneously, each with its own deadlines. I
learned to prioritize tasks based on urgency and importance, allocating my
time and resources efficiently to ensure timely completion of deliverables.
This skill helped me stay organized and productive amidst a demanding
workload.

 Problem-Solving: As I encountered various challenges during my

internship, I honed my problem-solving abilities. Whether it was
troubleshooting technical issues, resolving conflicts within the team, or
finding creative solutions to project roadblocks, I learned to approach
problems analytically and systematically. This skill empowered me to
overcome obstacles and achieve successful outcomes.

 Technical Skills: Depending on the nature of the internship, I acquired

proficiency in specific software, tools, or equipment relevant to the
industry. Whether it was mastering data analysis tools, learning
programming languages, or becoming proficient in design software, these

65
 technical skills enhanced my capabilities and allowed me to contribute
effectively to projects.

 Teamwork: Collaborating with colleagues from diverse backgrounds

taught me the value of teamwork and collaboration. I learned to
communicate effectively within a team, leverage each member's strengths,
and contribute positively to group dynamics. By working together towards
common goals, we were able to achieve better results than we could have
individually.

 Adaptability: The internship exposed me to a dynamic and fast-paced

work environment where priorities could change rapidly. I developed the
ability to adapt quickly to shifting circumstances, whether it was adjusting
to new project requirements, accommodating changes in deadlines, or
learning new skills on the fly. This adaptability proved invaluable in
navigating unforeseen challenges and seizing opportunities.

 Attention to Detail: In a professional setting, attention to detail is

paramount to ensuring accuracy and quality in work deliverables. I learned
to meticulously review my work for errors, inconsistencies, or oversights
before finalizing it. This attention to detail helped me produce high-quality
work that met or exceeded expectations.

 Professionalism: Interacting with professionals in the industry provided

me with firsthand experience in workplace etiquette and professionalism. I
learned the importance of maintaining a positive attitude, demonstrating
integrity, and respecting confidentiality in all aspects of my work. By
conducting myself professionally, I earned the trust and respect of my
colleagues and supervisors.

 Leadership Skills: Depending on the tasks assigned, I may have had

opportunities to demonstrate leadership qualities. This could involve

66
 taking initiative, delegating tasks, providing guidance to teammates, and
leading project teams to successful outcomes.

 Self-Reflection and Growth: Throughout the internship, I engaged in

self-reflection to identify areas for improvement and actively sought
opportunities for growth. Developing a growth mindset allowed me to
embrace challenges as learning opportunities and continuously strive for
personal and professional development.

Working at the firm taught me a lot. I learned how GST rules work in real-life
situations and how they affect businesses. By working with different clients, I got
better at solving problems and understanding complex tax issues. I also learned
how important it is to communicate well and work as a team. Overall, I'm leaving
the firm with a bunch of new skills and experiences that will help me in my future
career.

67
 CHALLENGES:

I encountered several challenges that pushed me to grow and learn. From

navigating new tasks to adapting to the fast-paced environment, each obstacle
presented an opportunity for personal and professional development. In this
introductory paragraph, I will discuss the various challenges I faced during my
time at the firm and how I overcame them.

 Understanding complex rules: Learning about all the different rules and
laws for taxes, especially GST, was hard. There were so many details and
exceptions to remember!
Solution:
To overcome this challenge, I dedicated time to study and research GST
laws thoroughly. I attended training sessions conducted by the firm and
engaged in discussions with experienced professionals to clarify doubts
and seek guidance. Regular updates on changes in GST regulations helped
me stay informed and adapt to evolving requirements.

 Dealing with different client situations: Every client had their own
unique tax situation, which made it tricky to find the right solutions for
each of them.
Solution:
I addressed this challenge by collaborating with colleagues and seeking
mentorship from senior professionals. Team discussions helped me gain
insights into different approaches for handling complex cases, while
mentorship provided guidance on navigating specific client situations.
Through effective communication and teamwork, we successfully
managed diverse client cases, ensuring timely and accurate resolution.

 Learning tax software: We had to use special computer programs to help

with calculating taxes and filling out forms. Learning how to use these

68
 programs was a bit difficult at first because they were different from what I
was used to.
Solution:
I proactively engaged in hands-on practice with tax software, exploring its
features and functionalities under the guidance of mentors. Seeking
assistance from colleagues and attending software training sessions
facilitated my technical skill development. With perseverance and
continuous learning, I gradually improved my proficiency with tax
software, streamlining processes and enhancing productivity.

 Meeting deadlines: There were a lot of deadlines to keep track of, and it
sometimes felt overwhelming trying to finish everything on time.
Solution:
To manage the pressure of deadlines, I adopted effective time management
strategies, prioritizing tasks based on urgency and importance. Breaking
down larger projects into smaller, manageable tasks helped me stay
organized and focused. Proactive communication with supervisors about
workload and progress ensured alignment with expectations and timely
completion of deliverables.

 Talking to clients: Communicating with clients about their taxes could be

hard, especially when they did not understand all the technical stuff.
Solution:
I sharpened my client communication skills through practice and feedback.
Actively listening to client concerns, asking clarifying questions, and
providing simplified explanations helped bridge communication gaps.
Seeking feedback from supervisors and observing experienced
professionals during client interactions provided valuable insights into
effective communication strategies, enabling me to enhance my client
communication skills over time.

 Getting used to the office culture: Figuring out how things worked in the
office and fitting in with everyone was a bit challenging at first.

69
 Solution:
I actively observed and immersed myself in the firm's culture, seeking to
understand its values and practices. Engaging in team-building activities
and participating in firm-wide events helped me integrate into the
organizational culture. Seeking guidance from colleagues and supervisors
allowed me to navigate the nuances of the firm's environment effectively.

 Balancing learning and working: I had to find a balance between doing

my regular tasks and taking time to learn new things. It was important to
me to keep growing and learning, so I tried to find time for both.
Solution:
I established a structured approach to balance learning and doing, setting
aside dedicated time for self-study and skill development. Proactively
seeking challenging assignments and asking for feedback on completed
tasks helped me identify areas for improvement and prioritize learning
opportunities. By maintaining a growth mindset and seeking continuous
improvement, I struck a balance between learning and contributing to the
firm's objectives.

 Asking for feedback: I sometimes felt nervous about asking for feedback
because I wasn't sure if people would think my work was good enough.
But I knew it was important to learn from my mistakes and get better, so I
pushed myself to ask for feedback anyway.
Solution:
I actively sought feedback from supervisors and colleagues on my
performance, demonstrating a willingness to learn and improve. Engaging
in mentorship relationships with experienced professionals provided
valuable guidance and support in my professional development journey.

 Feeling like I didn't belong: There were moments when I doubted myself
and wondered if I was good enough to be working at the GST firm. But I
reminded myself that everyone starts somewhere and that I was there to
learn and grow.

70
 Solutions:
I overcame my doubts by staying positive and focusing on learning.
Instead of dwelling on my insecurities, I sought guidance from mentors
and colleagues whenever I faced challenges. Their support and
encouragement reminded me that it's okay to make mistakes as long as I'm
willing to learn from them. I gradually gained confidence in my abilities
and became more comfortable in my role at the GST firm.

 Making sure everyone was happy: I wanted to do a good job and make
sure everyone was happy with my work, but it wasn't always easy because
different people had different expectations.
Solutions:
I overcame the challenge of ensuring everyone was happy with my work at
the firm by focusing on effective communication and adaptability. I tried
to understand the expectations of my colleagues and supervisors by
actively seeking feedback and listening to their input. This helped me
tailor my approach to meet their specific needs and preferences.

My internship experience in the firm was not without its challenges, but each
hurdle provided an opportunity for growth and development. Through
perseverance, adaptability, and a proactive approach, I successfully navigated
these challenges, gained valuable skills and knowledge, and emerged from the
experience as a more confident and capable professional.

71
 CONCLUSION

Reflecting on my internship journey at the GST firm fills me with gratitude and
satisfaction. It has been an illuminating experience, where every challenge was
met with an opportunity to learn and grow.

Throughout my time here, I have had the privilege of diving deep into the intricate
world of GST and taxation. Each project presented a chance to apply theoretical
knowledge to practical scenarios, enriching my understanding and skill set.

The unwavering support and guidance from my colleagues and supervisors have
been instrumental in my development. Their mentorship not only helped me
navigate complex tasks but also instilled in me a sense of confidence and
professionalism.

Though there were hurdles to overcome, such as mastering new concepts and
meeting tight deadlines, they were invaluable lessons that have shaped me into a
more resilient and adaptable individual.

As I bid farewell to this chapter of my journey, I am filled with appreciation for

the opportunities I have been given and the relationships I've forged. I carry with
me a wealth of experiences and insights that I know will serve me well in my
future endeavours.

I thank everyone at the firm for the warmth, support, and encouragement. I am
truly grateful for the lessons I have learned.

72
BIBLIOGRAPHY

73
This bibliography lists the sources consulted for this report:

 https://cleartax.in/s/gst-guide-introduction
 https://www.slideshare.net/AakashBhalla2/summer-internship-report-
shekhar-chandra-ca
 https://tutorial.gst.gov.in/contextualhelp/Einv/GSTR_1.htm
 https://www.gst.gov.in/
 https://cleartax.in/s/file-gstr-3b-gst-portal-guide
 https://www.techjockey.com/blog/record-sales-purchase-entry-in-tally-
with-gst
 https://tallysolutions.com/gst/gstr1-filing-format-due-date/
 https://srmus.ac.in/view/governance/naac/1.3.4/Supporting%20Documents
/MBA/MBA.01/20MC205022.pdf

74
ANNEXURES

LOG SHEET