SUMMER INTERNSHIP REPORT

ON
Company’s Accounting & Financial Services Division in Present Scenario

SUBMITTED TOWARDS THE PARTIAL FULFILMENT OF THE

REQUIREMENT FOR THE AWARD OF DEGREE OF
MASTER OF COMMERCE
UNDER THE GUIDANCE OF
CA. EMANSHU WADHWANI
(Director/ Proprietor, EMANSHU & Associates)

SUBMITTED TO:
Department of Commerce
Faculty of Commerce
University of Lucknow
SUBMITTED BY:

ANSHIKA SINGH
MCOM 3rd Semester, 2nd Year
Roll Number: 2150436250004
 ACKNOWLEDGEMENT
The internship opportunity I had with EMANSHU & Associates, was a great
chance for learning and professional development. Therefore, I consider
myself as a very lucky individual as I was provided with an opportunity to
be a part of it. I am also grateful for having a chance to meet so many
wonderful people and professionals who led me though this internship
period.
Bearing in mind previous I am using this opportunity to express my deepest
gratitude and special thanks to the CA EMANSHU WADHWANI,
Proprietor, EMANSHU & Associates who inspite of being extraordinarily busy
with his duties, took time out to hear, guide and keep me on the correct path
and allowing me to carry out my project at their esteemed organization and
extending during the training.
I express my deepest thanks to , Head of Department, Department of
Commerce , University of Lucknow for taking part in useful decision &
giving necessary advices and guidance and arranged all facilities to make life
easier. I choose this moment to acknowledge his contribution gratefully.
It is my radiant sentiment to place on record my best regards, deepest sense
of gratitude to Mr.ANSHUL AGARWAL, Lecturer, Faculty of Commerce,
University of Lucknow for their careful and precious guidance which were
extremely valuable for my study both theoretically and practically.
I perceive as this opportunity as a big milestone in my career development.
I will strive to use gained skills and knowledge in the best possible way, and
I will continue to work on their improvement, in order to attain desired
career objectives. Hope to continue cooperation with all of you in the future.

SINCERELY,
ANSHIKA SINGH
 PREFACE
Internship plays an important role because the act of mediator for the scholar
to attach the theoretical knowledge with practical working environment. It
provides a chance to experience practical knowledge alongside academic’s
program. I took my summer internship in Emanshu & Associates . This firm
was suitable for internship attachment because it had trained and qualified
personals additionally, they're so interactive and willing to be consulted. It
had been my fortunes that we got the chance to try summer training in such
institution which have made us learn. Within the forthcoming pages, and
attempt has been made to present a comprehensive report concerning
different aspects of our training.
 INDEX
Serial Number Title Page Number
1 Introduction 5

2 Objective of the 6
Internship

3 Reason for 7
choosing this
Internship

4 About this 8
Internship

5 Knowledge and 10
Skills Acquired

6 Details of Work 11-44

Accomplished

7 Conclusion 45
 INTRODUCTION
I have done this Internship on the subject “Company’s Accounting &
Financial Services Division in Present Scenario” under the guidance of
CA Emannshu wadhwani “emanshu & Associates
The first published work on a double entry system was the Summa de
arithmetica, published in Italy in 1494 by Luca Pacioli. Accounting is
thousands of years old and may be traced to ancient civilizations. the first
development of accounting dates back to ancient Mesopotamia, and is closely
associated with developments in writing, counting and money, there's also
evidence of early sorts of bookkeeping in ancient Iran, and early auditing
systems by the traditional Egyptians and Babylonians.
Accounting or accountancy is process of measurement, processing, analyzing
and communication of monetary and non-financial information about entities
like businesses and corporations.
Accountings are often divided into several fields including financial
accounting, management accounting, external auditing, tax accounting and
price accounting.
In this present scenario, inclusion of accounting software like Tally is
extremely essential. It’s important tool of accounting which is understood for
its best in financial applications and accounting. It’s been greatly utilized in
calculating commercial transactions, GST calculation effectively and
efficiently.
“Relevant technology has been upgraded in the past year to accommodate
multi-level requirements under GST and make the portal more interactive.

The Government seems to be on the right track in achieving its goal of easing
automated compliance-related processes, and is now diving into deeper
waters with its implementation of the E-Invoicing system and revamping of
the compliance process, which rely heavily on the bandwidth of the GSTN
portal to take on huge data loads and their processing on a real time basis,”
said the firm.
 OBJECTIVE OF THE INTERNSHIP
1. The target to try to this internship is to realize knowledge, experience, and
to develop professional skills.
2. To urge knowledge about the way to file GST return and every one about
its working.
3. I wanted to try to tally course to reinforce my skills and to understand the
way to make accounts on BUSY 21
4. I wanted to possess general idea on accounting, tally and their aspects in
present scenario.
5. To understand the impact of accounting and finance aspects in various
parts of the economy.
6. To develop problem solving skills, organizational skills and computer
application skills.
 REASON FOR CHOOSING THIS INTERNSHIP
Internship is the part of the post graduate degree in Department
of Applied Economics of Lucknow University.
Internship has merged the theoretical and practical knowledge which is
important in our future life. It is an excellent way to prepare students to know
about the practical way to deal with the things, learnt and develop skills.
After the end of 2nd semester, we were entitled to indulge in an internship
programme as per the schedule of M. Com (Applied Economics) curriculum.
Owing to the pandemic condition, it was not possible for most of us toinvolve
in an internship programme in an office.
I wanted to do something different, something not just limited to single sector
and also that would go hand in hand with my undergoing degree
simultaneously.
 ABOUT THIS INTERNSHIP
The duration of the internship was one and half month which started from
12 july 2022 to 12th august 2022. The timings of the Internship were
consistent with the suitability of the scholars and it had been from Monday to
Saturday. During this Internship, the precise area of focus was to be a
“knowledgeable scepticism”. The Internship Programme has been very
fruitful for me and as an intern, I got an in-depth knowledge of software’s
like Tally Prime, GSTIN Portal and GST Portal.
 KNOWLEDGE AND SKILLS ACQUIRED
During the internship, I even have learned a practical approach to find out
new things which is significant in business field. All the sessions are very
interesting and created enthusiasm to understand more.
Here I need to realize some new things in GST and therefore the most amazing
thing is that I ready to know the functioning and procedures of TallyPrime,
GSTN Portal and GST Portal. I learned to form company’s accounts thereon. I
hope that I even have enhanced my communication skills during the
discussions.
At that point I prepared and presented all the ultimate accounts and
submitted it to Ma’am. And at the top she directed us and helped us in
removing our difficulties. While I had many useful experiences at Next
Accounting Service. I feel that I still got to develop my skill in making final
accounts on Tally Prime and I got an in-depth knowledge of software’s like
GSTN Portal and GST Portal.
 DETAILS OF WORK ACCOMPLISHED
Goods & Services Tax (GST)

 Introduction: GST is known as the Goods and Services Tax. It is

an indirect tax which has replaced many indirect taxes in India such
as the excise duty, VAT, services tax, etc. The Goods and Service Tax
Act was passed in the Parliament on 29th March 2017 and came
into effect on 1st July 2017.

In other words, goods are levied on the supply of goods and services.
Goods and Services Tax Law in India is a comprehensive, multi-
stage, destination-based tax that is levied on every value
addition. GST is a single domestic indirect tax law for the entire
country.

Before the Goods and Services Tax could be introduced, the structure
of indirect tax levy in India was as follows:

Under the GST regime, the tax is levied at every point of sale. In the case of
intra-state sales, Central GST and State GST are charged. All the inter-state
sales are chargeable to the Integrated GST.
  Multi-Stage:
An item goes through multiple change-of-hands along its supply chain:
Starting from manufacture until the final sale to the consumer.
Let us consider the following stages:

 Purchase of raw materials.

 Production or manufacture.
 Warehousing of finished goods.
 Selling to wholesalers.
 Sale of the product to the retailers.
 Selling to the end consumers.

The

Goods and Services Tax is levied on each of these stages making it a multi-
stage tax.

 Value Addition:
A manufacturer who makes biscuits buys flour, sugar and other material.
The value of the inputs increases when the sugar and flour are mixed and
baked into biscuits.
The manufacturer then sells these biscuits to the warehousing agent who
packs large quantities of biscuits in cartons and labels it. This is another
addition of value to the biscuits. After this, the warehousing agent sells it to
the retailer.
The retailer packages the biscuits in smaller quantities and invests in the
marketing of the biscuits, thus increasing its value. GST is levied on these
value additions, i.e., the monetary value added at each stage to achieve the
final sale to the end customer.

 Destination-Based:
Consider goods manufactured in Maharashtra and sold to the final
consumer in Karnataka. Since the Goods and Service Tax is levied at the
point of consumption, the entire tax revenue will go to Karnataka and not
Maharashtra.

 The Journey of GST in India:

The GST journey began in
the year 2000 when a
committee was set up to
draft law. It took 17 years
from then for the Law to
evolve. In 2017, the GST
Bill was passed in the Lok
Sabha and Rajya Sabha.
On 1st July 2017, the GST
Law came into force.
 Objectives Of GST:

1. 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 therates
and policies.

2. 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 centralized tax on both goods and
services.

3. 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.

4. 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.

5. 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.
 6. Online procedures for ease of doing business: Previously, taxpayers
faced a lot of hardships dealing with different tax authoritiesunder each
tax law. Besides, while return filing was online, most of theassessment
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.

7. An improved logistics and distribution system: A single indirect

tax system reduces the need for multiple documentation for the
supply of goods. GST minimizes transportation cycle times, improves
supply chain and turnaround time, and leads to warehouse
consolidation, among other benefits.

8. 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 globalmarkets.
Even between states, the lower VAT rates in certain states led to an
imbalance of purchases in these states.

 Main Features of GST:

i. Applicable On supply side: GST is applicable on ‘supply’ of goods or
services as against the old concept on the manufacture of goods or on sale
of goods or on provision of services.

ii. Destination based Taxation: GST is based on the principle of

destination-based consumption taxation as against the presentprinciple
of origin-based taxation.

iii. Dual GST: It is a dual GST with the Centre and the States simultaneously
levying tax on a common base. GST to be levied by the Centre is called
Central GST (CGST) and that to be levied by the States is called State GST
(SGST). Import of goods or services would be treated as inter-state
supplies and would be subject to Integrated Goods & Services Tax (IGST)
in addition to the applicable customs duties.
iv. GST rates to be mutually decided: CGST, SGST & IGST are levied at rates
to be mutually agreed upon by the Centre and the States. The ratesare
notified on the recommendation of the GST Council.

v. Multiple Rates: Initially GST was levied at four rates viz. 5%, 12%, 16%
and 28%. The schedule or list of items that would fall under these
multiple slabs are worked out by the GST council.

 Advantages of GST:
 For the Government:

 Create a unified common market: Will help to create a unified

common national market for India. It will also give a boost to
foreign investment and “Make in India” campaign.
 Streamline Taxation: Through harmonization of laws, procedures
and rates of tax between Centre and States and across States.
 Increase tax Compliance: Improved environment for compliance
as all returns are to be filed online, input credits to be verified
online, encouraging more paper trail of transactions at each level of
supply chain.
 Discourage Tax evasion: Uniform SGST and IGST rates will reduce
the incentive for evasion by eliminating rate arbitrage between
neighbouring States and that between intra and inter-state sales.

 For Overall Economy:

 Bring about certainty: Common procedures for registration of

taxpayers, refund of taxes, uniform formats of tax return, common
tax base, common system of classification of goods and services will
lend greater certainty to taxation system;
 Reduce corruption: Greater use of IT will reduce human interface
between the taxpayer and the tax administration, which will go a
long way in reducing corruption;
 Boost secondary sector: It will boost export and manufacturing
activity, generate more employment and thus increase GDP with
gainful employment leading to substantive economic growth.
 For the Trade and Industry:

 Simpler tax regime with fewer exemptions.

 Increased ease of doing business.
 Reduction in multiplicity of taxes.
 Elimination of double taxation on certain sectors.
 More efficient neutralization of taxes especially for exports
 Making our products more competitive in the international market.
 Simplified and automated procedures for registration, returns,
refunds and tax payments.
 Decrease in average tax burden on supply of goods or services.

 For Consumers:

 Transparent prices: Final price of goods is expected to be

transparent due to seamless flow of input tax credit between the
manufacturer, retailer and service supplier.
 Price reduction: Reduction in prices of commodities and goods in
long run due to reduction in cascading impact of taxation;
 Poverty eradication: By generating more employment and more
financial resources.

 For the States:

 Expansion of the tax base: As states will be able to tax the entire
supply chain from manufacturing to retail.
 More economical empowerment: Power to tax services, which
was hitherto with the Central Government only, will boost revenue
and give States access to the fastest growing sector of the economy.
 Enhancing Investments: GST being destination-based
consumption tax will favour consuming States. Improve the overall
investment climate in the country which will naturally benefit the
development in the States.
  Components of GST:
There are three taxes applicable under this system: CGST, SGST & IGST.

 CGST: It is the tax collected by the Central Government on an intra-

state sale (e.g., a transaction happening within Maharashtra).

 SGST: It is the tax collected by the state government on an intra-state

sale (e.g., a transaction happening within Maharashtra).

 IGST: It is a tax collected by the Central Government for an inter-

state sale (e.g., Maharashtra to Tamil Nadu).

In most cases, the tax structure under the new regime will be as follows:
Transaction New Old Regime Revenue Distribution
Regime

Sale within CGST + VAT + Central Revenue will be shared equally

the State. SGST Excise/Service between the Centre and the
tax State.

Sale to IGST Central Sales There will only be one type of

another Tax + tax (central) in case of inter-
State. Excise/Service state sales. The Centre will
Tax then share the IGST revenue
based on the destination of
goods.

 Illustration:

 Let us assume that a dealer in Gujarat had sold the goods to a

dealer in Punjab worth Rs. 50,000: The tax rate is 18% comprising
of only IGST. In such a case, the dealer has to charge IGST of Rs.9,000.
This revenue will go to Central Government.

 The same dealer sells goods to a consumer in Gujarat worth Rs.

50,000. The GST rate on goods is 12%: This rate comprises CGST at
6% and SGST at 6%. The dealer has to collect Rs.6,000 as Goods and
Service Tax, Rs.3,000 will go to the Central Government and Rs.3,000
will go to the Gujarat government since the sale is within the state.
  GST Helped in Price Reduction:
During the pre-GST regime, every purchaser, including the final consumer
paid tax on tax. This condition of tax on tax is known as the cascading effect
of taxes.
GST has removed the cascading effect. Tax is calculated only on the value-
addition at each stage of the transfer of ownership.
The indirect tax system under GST will integrate the country with a uniform
tax rate. It will improve the collection of taxes as well as boost the
development of the Indian economy by removing the indirect tax barriers
between states.
 Illustration:
Based on the above example of the biscuit manufacturer, let’s take some
actual figures to see what happens to the cost of goods and the taxes, by
comparing the earlier GST regimes.

 Tax calculations in earlier regime:

Action Cost Tax rate at Invoice Total
(Rs) 10% (Rs) (Rs)

Manufacturer 1,000 100 1,100

Warehouse adds a label and 1,400 140 1,540

repacks at Rs.300

Retailer advertises at Rs. 500 2,040 204 2,244

Total 1,800 444 2,244

The tax liability was passed on at every stage of the transaction, and the
final liability comes to a rest with the customer. This condition is known as
the cascading effect of taxes, and the value of the item keeps increasing
every time this happens.
  Tax calculations in current regime:
Action Cost Tax Tax Invoice
(Rs) rate liability to Total
at be (Rs)
10% deposited
(Rs) (Rs)

Manufacturer 1,000 100 100 1,100

Warehouse adds label and 1,300 130 30 1,430

repacks at Rs. 300

Retailer advertises at Rs. 500 1,800 180 50 1,980

Total 1,800 180 1,980

In the case of Goods and Services Tax, there is a way to claim the credit for
tax paid in acquiring input. The individual who has already paid a tax can
claim credit for this tax when he submits his GST returns.
In the end, every time an individual is able to claims the input tax credit,
the sale price is reduced and the cost price for the buyer is reduced because
of lower tax liability.
The final value of the biscuits is therefore reduced from Rs.2,244 to
Rs.1,980, thus reducing the tax burden on the final customer.

 GSTIN: GSTIN, known as GST Identification Number, is assigned to

every GST registered person.

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.
Every business operating in a state or Union territory will be assigned a
unique Goods and Services Tax Identification Number, popularly known
as GSTIN.
 Each taxpayer is assigned a state-wise PAN-based 15-digit Goods and
Services Taxpayer Identification Number (GSTIN).

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.
 State code of Delhi is 07.

 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.
 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. It was developed by the World Customs Organization
(WCO) and it came into effect from 1988.

India is a member of World Customs Organization (WCO) since 1971.

It was originally using 6-digit HSN codes to classify commodities for
Customs and Central Excise. Later Customs and Central Excise added
two more digits to make the codes more precise, resulting in an 8-
digit classification.

 Understanding the HSN Code: The HSN structure contains 21

sections, with 99 Chapters, about 1,244 headings, and 5,224
subheadings.

Each Section is divided into Chapters. Each Chapter is divided into

Headings. Each Heading is divided into Sub Headings.

Section and Chapter titles describe broad categories of goods, while

headings and subheadings describe products in detail.

 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.
  India has 2 more digits for a deeper classification. If the
handkerchiefs are made from a man-made fiber, then the HSN code is
62.13.90.10.

 Structure of HSN Code in India:

 Services Accounting Code (SAC) in GST:

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

o Legal documentation and certification services concerning patents,

copyrights and other intellectual property rights—998213.

o The first two digits are same for all services i.e. 99.

o The next two digits (82) represent the major nature of service, in this
case, legal services.

o The last two digits (13) represent detailed nature of service, i.e., legal
documentation for patents etc.
  Input Credit in GST:
Input credit means at the time of paying tax on output, you can reduce the tax
you have already paid on inputs. Say, you are a manufacturer – taxpayable on
output (FINAL PRODUCT) is Rs 450 tax paid on input (PURCHASES) is Rs 300
You can claim INPUT CREDIT of Rs 300 and you onlyneed to deposit Rs 150
in taxes. See here:

Input Credit Mechanism is available to you when you are covered under the
GST Act. Which means if you are a manufacturer, supplier, agent,
ommerce operator, aggregator or any of the persons
mentioned here, registered under GST, you are eligible to claim
INPUT CREDIT for tax paidby you on your PURCHASES.
 How to claim input credit under GST?
To claim input credit under GST:
 You must have a tax invoice (of purchase) or debit note issued by
registered dealer.

 You should have received the goods/services.

Note: Where goods are received in lots/instalments, credit will be available

against the tax invoice upon receipt of last lot or instalment. Note: Where
recipient does not pay the value of service or tax thereon within 3 months
of issue of invoice and he has already availed input credit based on the
invoice, the said credit will be added to his output tax liability along with
interest.
 The tax charged on your purchases has been deposited/paid to the
government by the supplier in cash or via claiming input credit.

 Supplier has filed GST returns.

 Supplier has uploaded the invoice in their GSTR-1 and it appears in

GSTR-2B of the recipient or buyer.

Possibly the most path-breaking reform of GST is that input credit is ONLY
allowed if your supplier has deposited the tax, he collected from you. So,
every input credit you are claiming shall be matched and validated before
you can claim it.
Therefore, to allow you to claim input credit on Purchases all your
suppliers must be GST compliant as well.

 Reverse Charge Mechanism (RCM) under GST:

Reverse charge is a mechanism where the recipient of the goods or services
is liable to pay Goods and Services Tax (GST) instead of the supplier.
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 of suppliers, and to tax the import of services (since the
supplier is based outside India).
 When is Reverse Charge Applicable?
Section 9(3), 9(4) and 9(5) of Central GST and State GST Acts govern the
reverse charge scenarios for intrastate transactions. Also, sections 5(3),
5(4) and 5(5) of the Integrated GST Act govern the reverse charge
scenarios for inter-state transactions. Let’s have a detailed discussion
regarding these scenarios:
A. Supply of certain goods and services specified by the CBIC:
As per the powers conferred in section 9(3) of CGST Acts, the CBIC has issued
a list of goods and services on which reverse charge is applicable.
B. Supply from an unregistered dealer to a registered dealer:
Section 9(4) of the CGST Act states that if a vendor is not registered under
GST supplies goods to a person registered under GST, then reverse charge
would apply. This means that the GST will have to be paid directly by the
receiver instead of the supplier. The registered buyer who has to pay GST
under reverse charge has to do self-invoicing for the purchases made.
C. Supply of services through an e-commerce operator:
All types of businesses can use e-commerce operators as an aggregator to sell
products or provide services. Section 9(5) of the CGST Act states that if a
service provider uses an e-commerce operator to provide specified services,
the reverse charge will apply to the e-commerce operator and he will be liable
to pay GST.

 Regular GST Scheme and Composite GST Scheme:

The difference between them is pointed out in the tabular form:

Particulars Regular GST scheme Composite GST scheme

Meaning The regular GST scheme is The composite GST
a normal scheme of scheme is an easy scheme
payment of the output tax. for all the small taxpayers.
It also considers the Under this, they can avoid
eligible Input Tax Credit. the complex GST
compliance & pay GST at a
fixed rate.
Filing of The following returns are The following returns are
Returns to be filed: to be filed:

· Annual return: Form

GSTR-9 or GSTR- 9C.
 · Monthly basis: GSTR 3B · Form GSTR- 4 on an
annual basis as decided in
· Monthly or quarterly
the 32nd council meeting.
basis: GSTR- 1.
· Form GSTR -9A for
annual return.

· Statement of tax paid on

quarterly basis: FORM
CMP – 08
Supply Under the regular GST, the Under the composite GST,
supply can be to both inter the supply can be only
and intra state. intra state.
Tax In the regular GST scheme, In the composite GST
Collection tax collection is permitted scheme, tax collection is
at the prescribed rates. not permitted.
Supply Rs. 20 lakhs are the limit & Rs. 50 lakhs are the limit &
Services the tax rate applicable 6% is the tax rate
depends on the particulars applicable on the turnover.
of the service.
Not There are no exceptions. The following cannot opt
eligible to the scheme:
opt for the
· Persons carrying
scheme
interstate supplies.

· Supplier of non- taxable

goods.

· Supply of goods via e-

commerce portal.
 · Producer of ice- creams,
tobacco or pan masala.

· A business whose
turnover exceeds the
prescribed limits.
Specified Once a taxable person is The specific conditions
Condition registered in the regular are:
of Scheme GST scheme, then no
· No dealer under this
business under the same
scheme can claim Input
PAN can be registered
Tax Credit.
under the composition
scheme. · GST exempted goods
cannot be supplied by the
dealer.

· The dealer can supply

services to an extent of
10% of the turnover or Rs.
5 lakhs, whichever is
higher.

· The taxpayer under this

scheme has to mention
that he is a composition
taxable person and is not
permitted to collect taxes
on every bill, notice and as
signboard at their place of
business.
 · Tax is to be paid at
normal tax rates under the
reverse charge
mechanism.

· If there a different
segment of businesses
under the same PAN
name; then they must
either register them
collectively under this
scheme or opt out of the
scheme.
What to Tax Invoice Bill of Supply
issue
GST The GST is payable as: The GST is payable, out of
Payment pocket for the supplies as:
· Output GST – Input GST +
Tax on reverse charge. · GST on supplies made +
Tax on reverse charge.
Merits The following are the The following are the
merits of regular GST merits of composite GST
scheme: scheme:

· It has an unlimited · It has less compliance.

territory of business.
· It has limited tax liability.
· Availability of Credit of
· It does not require
Input Tax paid.
maintaining account
· It can sell via an e- books.
commerce portal.
 · It has high liquidity
because the taxes are at a
lower rate.

Demerits The following are the The following are the

demerits of regular GST demerits of composite GST
scheme: scheme:

· It has more compliance, · It has a limited territory

i.e., there are a number of business, as it does not
returns to be filed. allow interstate
transactions.
· Less liquidity to avoid
high amount of tax in the · No input tax credit
e- ledgers & a person can available to the dealers.
avail input only when the
· The taxpayer is not
supplier has filed the
eligible for supply of
return.
exempted goods or goods
· Detailed account books to via e commerce portal.
be maintained.

Restriction There are no restrictions The person cannot make

on SEZ on export or supply to SEZ any supplies to SEZ or its
& SEZ developers. developers.
 Condition Any person can opt out In composite GST scheme,
To opt Out from regular GST scheme if the turnover of a
at any time. taxpayer is below Rs. 1.5
crores (in case of north-
eastern states & Himachal
Pradesh it is 75 lakhs), can
opt out in the start of
financial year.

 Taxable Person under GST:

A ‘taxable person’ under GST, is a person who carries on any business at
any place in India and who is registered or required to be registered under
the GST Act. Any person who engages in economic activity including trade
and commerce is treated as a taxable person.
‘Person’ here includes individuals, HUF, company, firm, LLP, an AOP/ BOI,
any corporation or Government company, body corporate incorporated
under laws of foreign country, co-operative society, local authority,
government, trust, artificial juridical person.

 Who is Liable to get Registered under GST?

GST registration is mandatory for:
 Any business involved in the supply of goods whose turnover in a
financial year exceeds Rs.40 lakhs for Normal Category states (Rs.20
lakhs for Special Category states) *.

 Any business involved in the supply of services whose turnover in a

financial year exceeds Rs.20 lakhs for Normal Category states (Rs.10
lakhs for Special Category states).

 Every person who is registered under an earlier law (i.e., Excise, VAT,
Service Tax etc.) needs to register under GST, too.
  When a business which is registered has been transferred to
someone/demerged, the transferee shall take registration with effect
from the date of transfer.

 A person making inter-state supplies.

 Casual taxable person.

 Non-Resident taxable person.

 Agents of a supplier.

 Those paying tax under the reverse charge mechanism.

 Input service distributor,

 e-Commerce operator or aggregator*.

 Person who supplies via e-commerce aggregator.

 Person supplying online information and database access or retrieval

(OIDAR) services from a place outside India to a person in India,
other than a registered taxable person.

Note: If your turnover is supply of only exempted goods/services which

are exempt under GST, this clause does not apply.

 Who is a Casual Taxable Person under GST?

A person who occasionally supplies goods and/or services in a territory
where GST is applicable but he does not have a fixed place of business. Such
a person will be treated as a casual taxable person as per GST.
Example: A person who has a place of business in Bangalore supplies taxable
consulting services in Pune where he has no place of business would be
treated as a casual taxable person in Pune.
  Who is a Non-Resident Taxable person under GST?
When a non-resident occasionally supplies goods/services in a territory
where GST applies, but he does not have a fixed place of business in India. As
per GST, he will be treated as a non-resident taxable person. It is similar to
above except the non-resident has no place of business in India.

 Who is an Input Service Distributor?

‘Input Service Distributor’ means an office of the supplier of goods/services
which receives tax invoices on receipt of input services and issues tax
invoices for the purpose of distributing the credit of CGST/SGST/IGST paid
on the said services to your branch with the same PAN. (It must be a supplier
of taxable goods /services having the same PAN as that of the office referred
to above).
Thus, only credit on ‘input services’ can be distributed and not on input goods
or capital goods. This will be a new concept for assesses who are currently
not registered as input service distributors. However, this facilityis optional
in nature.

 Who is a composition taxpayer?

A composition taxpayer refers to those registered under the composition
scheme who need not collect GST from his customers at normal rates.
Instead, he can pay tax at a nominal rate or lower rates to the government
on the basis of turnover or receipts on a quarterly basis while filing CMP-
08.
There are certain conditions defined for such taxpayers. At the inception
of GST, only suppliers of goods could opt into the composition scheme
governed by Section 10 of the CGST Act with annual turnover up to Rs.1.5
crore. From 1st April 2019, service providers are also given an option to
join a similar scheme. The annual aggregate turnover limit must be up to
Rs.50 lakh.

 Who is a QRMP taxpayer?

A registered person who is required to furnish a return in GSTR-3B, and
who has an aggregate turnover of up to Rs.5 crore rupees in the preceding
financial year, is eligible for the QRMP Scheme. Under the scheme, one can
file GSTR-1 and GSTR-3B once in a quarter whereas make tax payment
every month in form PMT-06. Further, if B2B sales invoices need to be
uploaded on the GST portal monthly, then Invoice Furnishing Facility (IFF)
can be used.

 GST Registration by Type of Taxable Person:

 Every person has to apply for registration in every State in which he is

liable, within thirty days from the date on which he becomes liable to
registration.

 Casual / non-resident taxable persons should apply at least five days

before their commencement of business.

 Registration number in GST will be PAN based and hence, having PAN
would be a prerequisite for obtaining registration.

 The assesses must obtain separate registration for each State, as

registration under GST will be State-wise.

 The assesses has an option to obtain a separate registration for each of

the ‘business verticals’ in the same State.

 Special provisions of GST Registration for casual taxable

person and non-resident taxable person:
A casual taxable person or a non-resident taxable person shall apply for
registration at least five days prior to the commencement of business. Section
24 provides for special provisions relating to casual taxable persons and non-
resident taxable persons under GST.
Casual/non-resident taxable person may obtain a temporary registration for
a period of 90 days (extendable for additional 90 days). A person who obtains
registration u/s 24, will be required to make an advance deposit of GST
(based on his estimated tax liability).

 Types of GST Returns:

GST return is a form that a taxpayer registered under the Goods and Services
Tax (GST) law must file for every GSTIN that he is registered. Also,
the status of GSTIN should be active if the taxpayer regularly files the
returns. Out of them, only 11 GST returns are active, 3 suspended, and 8
view-only in nature.
In short, the number and types of GST return that a business/professional
must file is based on the type of taxpayer registered. These types include
regular taxpayer, composition taxable persons, e-commerce operators, TDS
deductor, non-resident taxpayer, Input Service Distributor(ISD), casual
taxable persons, etc.

Further, the frequency of filing some GST returns may differ among the
GSTR-1 and GSTR-3B filers, if they opt into the Quarterly Return filing and
Monthly Payment of taxes (QRMP) scheme.

 Types of GST Returns and Due dates:

 GSTR-1:

GSTR-1 is the return to be furnished for reporting details of all outward

supplies of goods and services made. In other words, it contains the
invoices and debit-credit notes raised on the sales transactions for a tax
period. GSTR-1 is to be filed by all normal taxpayers who are registered
under GST, including casual taxable persons.

Any amendments to sales invoices made, even pertaining to previous tax

periods, should be reported in the GSTR-1 return by all the suppliers or
sellers.

The filing frequency of GSTR-1 is currently as follows:

(a) Monthly, by 11th* of every month: If the business either has an

annual aggregate turnover of more than Rs.5 crore or has not opted into
the QRMP scheme.

(b) Quarterly, by 13th** of the month following every quarter: If the

business has opted into the QRMP scheme.

*Till September 2018, the due date was the 10th of every month.
**Till December 2020, was the end of the month succeeding the quarter.

 GSTR-2A:

GSTR-2A is a view-only dynamic GST return relevant for the recipient or

buyer of goods and services. It contains the details of all inward supplies of
goods and services i.e., purchases made from GST registered suppliers
during a tax period.

The data is auto-populated based on data filed by the corresponding

suppliers in their GSTR-1 returns. Further, data filed in the Invoice
Furnishing Facility (IFF) by the QRMP taxpayer, also get auto-filled.

Since GSTR-2A is a read-only return, no action can be taken in it. However,

it is referred by the buyers to claim an accurate Input Tax Credit (ITC) for
every financial year, across multiple tax periods. In case any invoice is
missing, the buyer can communicate with the seller to upload it in their
GSTR-1 on a timely basis.

It was used frequently for claiming ITC for every tax period until August
2020. Thereafter, the buyers must mostly refer to GSTR-2B, static return, to
claim the input tax credit for every tax period.
 GSTR-2B:

GSTR-2B is again a view-only static GST return important for the recipient
or buyer of goods and services. It is available every month, starting in
August 2020 and contains constant ITC data for a period whenever checked
back.
ITC details will be covered from the date of filing GSTR-1 for the preceding
month (M-1) up to the date of filing GSTR-1 for the current month (M). The
return is made available on the 12th of every month, giving sufficient time
before filing GSTR-3B, where the ITC is declared.

GSTR-2B provides action to be taken against every invoice reported, such

as to be reversed, ineligible, subject to reverse charge, references to the
table numbers in GSTR-3B.
  GSTR-2:

GSTR-2 is currently a suspended GST return, that applied to registered

buyers to report the inward supplies of goods and services, i.e. the
purchases made during a tax period.

The details in the GSTR-2 return had to be auto-populated from the GSTR-
2A. Unlike GSTR-2A, the GSTR-2 return can be edited. GSTR-2 is to be filed
by all normal taxpayers registered under GST. However, the filing of the
same has been suspended ever since September 2017.
 GSTR-3:

GSTR-3 is again currently a suspended GST return. It was a monthly

summary return for furnishing summarized details of all outward supplies
made, inward supplies received and input tax credit claimed, along with
details of the tax liability and taxes paid.

This return would have got auto-generated on the basis of the GSTR-1 and
GSTR-2 returns filed. GSTR-3 is to be filed by all normal taxpayers
registered under GST, however, the filing of the same has been suspended
ever since September 2017.
 GSTR-3B:

GSTR-3B is a monthly self-declaration to be filed, for furnishing

summarized details of all outward supplies made, input tax credit claimed,
tax liability ascertained and taxes paid.

GSTR-3B is to be filed by all normal taxpayers registered under GST. The

sales and input tax credit details must be reconciled with GSTR-1 and
GSTR-2B every tax period before filing GSTR-3B. GST reconciliation is
crucial to identify mismatches in data, that may lead to GST notices in
future or suspension of GST registration as well.

The filing frequency of GSTR-3B is currently as follows:

(a) Monthly, 20th* of every month: For taxpayers with an aggregate

turnover in the previous financial year of more than Rs.5 crore or have
been otherwise eligible but still opted out of the QRMP scheme.
(b) Quarterly, 22nd of the month following the quarter for ‘X’**
category of States and 24th of the month following the quarter for
‘Y’** category of States: For the taxpayers with aggregate turnover equal
to or below Rs 5 crore, eligible and remain opted into the QRMP scheme.

* Effective from January 2021 tax period onwards. Previously, was as

follows:

(i) Was staggered as 20th (turnover of previous FY was more than Rs.5
crore), 22nd and 24th (turnover of previous FY was up to Rs.5 crore, for ‘X’
and ‘Y’ category of States) of every month, from January 2020 till December
2020.

(ii) Was 20th of every month till December 2019.

** ‘X’ category States/UT : Chhattisgarh, Madhya Pradesh, Gujarat,

Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana or Andhra
Pradesh or the Union territories of Daman and Diu and Dadra and Nagar
Haveli, Puducherry, Andaman and Nicobar Islands and Lakshadweep.

‘Y’ category States/UT: Himachal Pradesh, Punjab, Uttarakhand, Haryana,

Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland,
Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand or
Odisha or the Union Territories of Jammu and Kashmir, Ladakh,
Chandigarh and New Delhi.
 GSTR-4:

GSTR-4 is the annual return that was to be filed by the composition taxable
persons under GST, by 30th April of the year following the relevant
financial year. It has replaced the erstwhile GSTR-9A (annual return) from
FY 2019-20 onwards.

Prior to FY 2019-20, this return had to be filed on a quarterly basis.

Thereafter, a simple challan in form CMP-08 filed by 18th of the month
succeeding every quarter replaced it.

The composition scheme is a system in which taxpayers dealing with goods

and having a turnover up to Rs.1.5 crores can opt into and pay taxes at a
fixed rate on the turnover declared. Further, the service providers can avail
a similar scheme CGST (Rate) Notification 2/2019 dated 7th March 2019 if
turnover is up to Rs.50 lakh.
 GSTR-5:

GSTR-5 is the return to be filed by non-resident foreign taxpayers, who are

registered under GST and carry out business transactions in India.

The return contains details of all outward supplies made, inward supplies
received, credit/debit notes, tax liability and taxes paid.

The GSTR-5 return is to be filed monthly by the 20th of each month under
GSTIN that the taxpayer is registered in India.
 GSTR-5A:

GSTR-5A refers to a summary return for reporting the outward taxable

supplies and tax payable by Online Information and Database Access or
Retrieval Services (OIDAR) provider under GST.

The due date to file GSTR-5A is the 20th of every month.

 GSTR-6:

GSTR-6 is a monthly return to be filed by an Input Service Distributor (ISD).

It will contain details of input tax credit received and distributed by the
ISD. It will further contain details of all documents issued for the
distribution of input credit and the manner of distribution.

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

 GSTR-7:

GSTR-7 is a monthly return to be filed by persons required to deduct TDS

(Tax deducted at source) under GST.

This return will contain details of TDS deducted, the TDS liability payable
and paid and TDS refund claimed if any.

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

  GSTR-8:

GSTR-8 is a monthly return to be filed by e-commerce operators registered

under the GST who are required to collect tax at source (TCS).

It contains details of all supplies made through the e-commerce platform,

and the TCS collected on the same.

The GSTR-8 return is to be filed on a monthly basis by the 10th of every

month.
 GSTR-9:

GSTR-9 is the annual return to be filed by taxpayers registered under GST.

It is due by 31st December of the year following the relevant financial year,
as per the GST law.

It contains the details of all outward supplies made, inward supplies

received during the relevant financial year under different tax heads i.e.
CGST, SGST & IGST and a summary value of supplies reported under every
HSN code, along with details of taxes payable and paid.

It is a consolidation of all the monthly or quarterly returns (GSTR-1, GSTR-

2A, GSTR-3B) filed during that financial year. GSTR-9 is required to be filed
by all taxpayers registered under GST.

However, there are few exceptions such as taxpayers who have opted for
the composition scheme, casual taxable persons, input service distributors,
non-resident taxable persons and persons paying TDS under section 51 of
the CGST Act.

Note: As per the CGST notification no. 47/2019, later amended, the annual
return under GST for taxpayers having an aggregate turnover that does not
exceed Rs.2 crore has been made optional for FY 2017-18, FY 2018-19 and
FY 2019-20.
 GSTR-9A:

GSTR-9A is currently a suspended annual return earlier required to be filed

by composition taxpayers. It had a consolidation of all the quarterly returns
filed during that financial year.
Ever since GSTR-4 (annual return) was introduced from FY 2019-20, this
return stands scrapped. Prior to that, GSTR-9A filing for composition
taxpayers had been waived off for FY 2017-18 and FY 2018-19.
 GSTR-9C:

GSTR-9C is the reconciliation statement to be filed by all taxpayers

registered under GST whose turnover exceeds Rs.2 crore in a financial year,
as per the GST law.

It must be certified by a Chartered Accountant/Cost & Management

Accountant after conducting a thorough GST audit of the books of accounts
and comparing the figures with the GSTR-9.

The deadline to file this statement is the same as the due date prescribed
for GSTR-9, i.e., 31st December of the year following the relevant financial
year.

GSTR-9C is to be filed for every GSTIN, hence, one PAN can have multiple
GSTR-9C forms being filed.

As per the Union Budget 2021 outcome, the GST audit requirement by
professionals such as CAs and CMAs has been removed from the GST law.
Sections 35 and 44 were amended for this but yet to be notified by CBIC.
Accordingly, GSTR-9 needs to be filed on the GST portal by taxpayers on a
self-certification basis, completely removing the requirement for GSTR-9C.
However, the financial year and date of applicability of this removal are yet
to be clarified by the government.

Note: As per the CBIC notification 16/2020, which was further amended,
GSTR-9C is waived off for the taxpayers with an aggregate turnover of more
than Rs.5 crore for the financial year 2018-19 and 2019-20.
 GSTR-10:

GSTR-10 is to be filed by a taxable person whose registration has been

cancelled or surrendered. This return is also called a final return and has to
be filed within three months from the date of cancellation or cancellation
order, whichever is earlier.
  GSTR-11:

GSTR-11 is the return to be filed by persons who have been issued a Unique
Identity Number (UIN) in order to get a refund under GST for the goods and
services purchased by them in India. UIN is a classification made for foreign
diplomatic missions and embassies not liable to tax in India, for the
purpose of getting a refund of taxes. GSTR-11 will contain details of inward
supplies received and refund claimed.

 Late filing of GST Returns:

Return filing is mandatory under GST. Even if there is no transaction, you

must file a Nil return.
There are few points to note:
 You cannot file a return if you do not file the previous
month/quarter’s return.

 Hence, late filing of GST return will have a cascading effect leading to
heavy fines and penalty.

 The late filing fee of the GSTR-1 is populated in the liability ledger of
GSTR-3B filed immediately after such delay.

 Interest and Late fee to be paid:

 Interest is 18% per annum. It has to be calculated by the taxpayer on

the amount of outstanding tax to be paid. It shall be calculated on the
net tax liability identified in the ledger at the time of payment.

 The time period will be from the next day of filing due date till the
actual date of payment.

 As per the CGST Act, the late fee is Rs.100 per day per Act. So, it is
Rs.100 under CGST & Rs.100 under SGST. The total shall be
Rs.200/day. However, there is a maximum levy of Rs. 5,000.
  There is no late fee separately prescribed under the IGST Act. Also,
for GSTR-1 and GSTR-3B, the total late fee was reduced to Rs. 50 /day
(Rs.20 /day for Nil filing).

 e-invoicing under GST:

‘e-Invoicing’ or ‘electronic invoicing’ is a system in which B2B invoices and

a few other documents are authenticated electronically by GSTN for further
use on the common GST portal.
In its 35th meeting, the GST Council decided to implement a system of e-
Invoicing, covering specific categories
of persons, mostly large enterprises.
Later on, it has been expanded to cover
mid-sized businesses and small
businesses as well.
e- Invoicing does not imply the
generation of invoices on the GST
portal but it means submitting an
already generated standard invoice on
a common e invoice portal. Thus, it
automates multi-purpose reporting
with a one-time input of invoice
details. The CBIC notified a set of
common portals to prepare e invoice
via Notification No.69/2019 – Central
Tax.
Under the electronic invoicing system,
an identification number will be issued
against every invoice by the Invoice Registration Portal (IRP), managed by
the GST Network (GSTN). The National Informatics Centre launched the
first IRP at einvoice1.gst.gov.in.
All invoice information gets transferred from this portal to both the GST
portal and the e-way bill portal in real-time. Therefore, it eliminates the
need for manual data entry while filing GSTR-1 returns and generation of
part-A of the e-way bills, as the information is passed directly by the IRP to
the GST portal.
  Who must generate e invoice and its Applicability?

The e invoice applicability can be explained as follows:

e-Invoicing under GST denotes electronic invoicing defined by the GST law.
Just like how a GST-registered business uses an e-way bill while
transporting goods from one place to another.
Similarly, certain notified GST-registered businesses must generate e
invoice for Business-to-Business (B2B) transactions.

Turnover criteria or e Invoice limit:

Phase Applicable to taxpayers Applicable Notification number

having an aggregate date
turnover of more than

I Rs 500 crore 01.10.2020 61/2020 – Central

Tax and 70/2020 –
Central Tax

II Rs 100 crore 01.01.2021 88/2020 – Central Tax

III Rs 50 crore 01.04.2021

5/2021 – Central Tax

IV Rs 20 crore 01.04.2022 1/2022 – Central Tax

V Rs 10 crore 01.10.2022 17/2022 – Central Tax

The taxpayers must comply with e-invoicing in FY 2022-23 and onwards if

their e invoice limit or turnover exceeds the specified limit in any financial
year from 2017-18 to 2021-22. Also, the aggregate turnover will include
the turnover of all GSTINs under a single PAN across India.
 CONCLUSION
In conclusion my experience with Emanshu & Associates was crucial in my
development as a future accountant I will be able to take the teachings and
skills acquired and apply them in future career opportunities. I even have
spent great time with Next Accounting Service and gained invaluable
experience and knowledge. Each and each session were worth attending and
created enthusiasm to understand more.
Internship is that the part of my graduate degree in Department of Commerce
of Lucknow University. This Internship has provided the theoretical and
practical knowledge which is important in future career opportunities. It’s
superb thanks to make students aware of the sensible thanks to affect the
items and develop skills.
Emanshu & Associates has provided me the simplest environment through
online platform to find out about the financial and accounting application in
current scenario.I, as an intern, got an honest platform to broader my
knowledge regarding Goods and Services Tax (G.S.T.) and GSTN Portal.