CHAPTER 1

INTRODUCTION

1
 1.1 INTRODUCTION:

Goods and Services Tax is an indirect tax which is imposed in India to upgrade and support the
monetary development of the country. The vast majority of the Developed nations have executed
Goods and Services Tax Bill (GST). Notwithstanding, in India, GST was laid out in 1999. An
advisory group was set up to plan the model of GST. Yet, GST was re-launched on 1 July 2017
by the Indian government. There was a major shout for its execution. The GST supplanted every
one of the different taxes which were taken by state and central government.

To that end it is said "One Nation One Tax" which implies there is no need to pay some other tax
in all around the country. The study deliberately audits the effect of GST in India. This research
paper gives the bibliometric representation and a feeling around of GST of the public. It was
observed that the government's intention of GST was to bring every one individuals of the
country under the tax and to forestall the progression of black money. In any case, it was seen
that bunches of Indian citizens‟ opinions were in a predicament. So, it is recommended to revisit
the structure and keep a scope of continuous improvement.

2
 1.3 Selection of Topic for Study

Topic selection is one of the most or one of the important aspect of out project.
As it decides the course of action , to be followed . The topic selected should be such that
helps in understanding the GST concept clearly, as was given the topic by the company
itself.
“Computation on return filling of GST at M/S.VPACA Business Solutions Pvt.Ltd.

This covers all the things related to the GST on provided by the company.

GST, Goods and Services Tax was launched all over India with effect from 1 July 2017. The
Jammu and Kashmir state legislature passed its GST act on 7 July 2017, thereby ensuring that
the entire nation is brought under an unified indirect taxation system.

Goods and Service Tax will replace all the indirect taxes that are levied by Central and State
Governments , IGST for out of state and CGST & SGST for state. For Corporate India, GST
will remove the cascading effect of tax. As a result of which, double taxations will reduce as
the Centre and State are working in tandem. In short, It is crucial step towards reforming the
indirect tax system in India.
Hence it is important to understand GST. The topic was to collect the financial information
from the company so as to find out the GST tax calculation and GST return filing process of
the company.

3
 1.4 Objective of the Study

To study the concept of Goods and Services tax.

To study the recommendation of various committee on Goods Service Tax.

To learn about the GST Registration process

To learn how to file GST Return online & offline.

To understand the concept of goods and service tax and benefits of current

1.4 Scope of the Study

The project of the financing of Goods Servicing Tax by company an attempt has been made
to analyze the procedure which the company follow finance to industrial units to fulfill their
Goods Service Tax requirements by utilizing the information provided by the tax section of
the company.

The project extends to the study of the criteria on the basis of which company provide finance
the method of computation of the permissible company finance.

A major part of Goods Service Tax is provided by the Company. Industries depend upon the
company as primary source of Goods Service Tax.

Over the past several years, company have become the most reliable information company
provide information by tax is a subject worth studying.
4
 1.5 Limitations of the Study

Generally company do not allow the outsiders to have any study or research work in
company. Therefore, the project work in company itself little different.

Due to confidentiality some important information, which is important for the project, could
not be collected.

Some of the information lacked accuracy due to which approximately values were used for
the analysis. Hence, the results also reveal approximate values.

The tax sanctioning procedure is chalked out by top management and as per the norms and
rules issued by GST return filling. Therefore the project is mot decision by itself but an aid
to the management regarding the procedural GST return filling.

The project based on theoretical guidelines and as per situations prevalent at the time of
practical training. Hence, it may not apply to different situations.

The time span for project is very short which was of 8 weeks. Moreover, studying the
guidelines and applied it practically within such short time span was a task of great pressure.

5
CHAPTER : 2
COMPANY
PROFILE

6
 2.1 Company profile

Introduction :-
We are organisation engaged in various services such as Auditing, Income Tax, Goods
and Services Tax, Financial Management, Company Law Matters, Sales Tax / Vat, Service
Tax, Consultancy, Transfer pricing related matters etc. In order to meet the specific
requirements of the clients, we provide the best possible solution and consultancy for their
respective matters. With active support we receive from our competent team of professionals,
we have manage to provide the effective service to our various esteemed clients.

Name :- VPACA Business Solutions Pvt Ltd.

Established :- 23/02/2022
Type :- Private Limited Company

Head Office :- Off no. 70, A wing, 3rd Floor, K K Market Complex, Pune Satara Road,
Dhankawadi, Pune - 411043

Services Offered: Income Tax Returns, GST Return, Tax Audit, GST Audit, TDS Returns etc.

7
 2.2 Services

Services
Company Registration
GST Registration
Project Financing
GST Return
TDS Return
Income Tax (Salary)
Income Tax (Business)
Statutory Audit
Tax Audit
GST Audit
Bank Audit
TAN Registration

8
 CHAPTER :3
REVIEW OF LITERATURE

9
 REVIEW OF LITERATURE :-

The structure and loopholes of the Goods and Services Tax in India was examined
in the first discussion paper of the Empowered Committee of Finance Ministers (2009).
Poddar& Ahmad (2009) discuss different aspects of GST implementation, relating to the
principles, issues, and procedures. The paper cited the introduction of GST to be the most
significant tax reform in India, increasing tax compliance and transparency. Vasanthagopal
(2011) focussed on how GST would be a significant improvement over the prevalent complex
indirect tax system in the context of different sectors in the economy. FICCI (April 2013)
emphasized GST to be a necessary condition for achieving double digit growth in India,
provided all the stakeholders are prepared for the change. Mawuli (2014) suggested GST to be
less than 10% in low income countries to mitigate the adverse effect of GST. Kumar (2014)
highlighted GST’s role in eliminating economic distortions by enabling the developing a
unified national market with a common tax rate. Pinki and Verma (2014) illustrated that GST
would result in a number of benefits for all the stakeholders involved, consumers, government
at the central and state level. The study also highlighted robust IT infrastructure to beimperative
for GST to be implemented successfully. Sehrawat and Dhanda (2015) concluded GST to result
in increased output, employment and economic growth, owing to greatertransparency. Caruso
et al. (2016) suggested GST to aid economic development of India and also lead to an increase
in the GDP by more than 2%. Khurana& Sharma (2016) point to the role of set offs available,
as an advantage to the producers and consumers in the Indian economy. Rizwana (2016) found
GST to have a positive impact on the employment and economic stability, thus improving the
growth prospects of India. Kumar (2016) compares GSTand the present system of taxation and
mentions tax credit set off to be an important distinguishing factor. Lourdunathan& Xavier
(2017) discuss the challenges in implementationof GST and identify prospects of GST that
would benefit the producers and consumers. The prior literature discusses GST as a concept and
illustrates its benefits theoretically. Empirically,the focus on the impact of GST on economic
growth, employment exists. The present study attempts to fill this research gap by empirically
examining the impact of GST on the sectors ofthe economy – and Automobiles sector, with
significant contribution to the economic growth.The study also provides a comprehensive view
on the GST implementation in this context.

10
 3.1 CONCEPTUAL BACKGROUND:

Introduction to Goods and Service Tax (GST) :-

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

Goods and Services Tax (GST) is an indirect tax which was hunched at midnight on
1 July 2017 by the President of India. Pranab Mukherjee and Prime Minster of India Narendra
Modi. The launch was marked by a historic midnight (30 June-1 July) session of both houses
of the Parliament convened at the Central Hall of the Parliament.

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

11
SWOT Analysis :-

1. Strengths :-

A single GST could be used instead of other indirect taxes at the state and
central level.
It would be uniformity of tax rates across the state.
It ensures better compliance as the aggregate tax reduces.
It helps in the reduction of prices of the goods and services to the consumer
with the reduction of tax.
It would reduce transaction costs and unnecessary wastage to both
government and individuals.
It encourages transparency and unbiased tax structure .

2. Weaknesses :-

It doesn’t include alcohol and petroleum products which would lead to

incurring of huge losses.
It requires strong IT infrastructure which is not highly developed in India.
Single GST rate would be high compared to individual indirect tax rate.
In reality, it might result in a dual tax system in which both state and the
Center would collect tax separately.
Sudden implementation of GST might create confusion to the common man.

12
 3. Opportunities :-

Reduction in tax burden will increase the competitiveness of Indian products

in the international market.
There would be a gradual increase in the revenues of state and the union.
Helps reducing corruption as the implementation of GST would result in a
gradual decrease of procedures and formalities.

4. Threats :-

It is entirely dependent on the efficiency and effectiveness and effectiveness

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

Interpretation of the SWOT Analysis :-

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

13
Benefits of GST :-

1. Benefits for centre :-

As per the existing taxation system the centre does not has power to tax on production
of goods. The power to levy tax on sales rests with state except in case of inter state sales.
Therefore, introduction of GST would empower center to tax sales also.

• Increase in GDP
• Increase in export
• Power to tax after production down to distribution point
• Ensures better compliance and prevent tax evasion

2. Benefits for state :-

There is no uniformity in rate of taxes among the states. Even after introduction of
VAT there are different rates of tax in different states, Therefore, there was rate war among
state. GST will lead to uniformity in tax rates. Other benefits for state are :-

• Will get power to tax services

• Will reduce rate wars, therefore, outflow of investment to other states due to
rate war will be prevented
• Introduction of comprehensive system of reliefs including set off of CENVAT
and service taxes
• Increase in revenue due to broadening of tax base
• Removal of burden of CST

3. Benefits for Industry:-

• Will provide comprehensive input tax credit, the service tax can be set off
with sales tax
• No need to pay CST
• Many central and state indirect taxes will be subsumed in GST, therefore, a
single tax is to be paid
• Reduced tax burden will increase competitiveness of Indian products in
foreign markets

4. Benefits for Consumer :-

• Reduced tax burden will be passed on to consumers in form of reduced

prices
• Better compliance and increased tax revenue will enable the government to
spend more on welfare

14
List of Abbreviations :-

GST :- Goods and service Tax

SGST :- State Goods and Service

Tax CGST :- Central Goods and

Service Tax IGST : Integrated goods

and services tax

GSTIN :- Goods and Service Tax Identification Number

POS :- Place of Supply

UIN :- Unique Identity Code

B to B :- From one registered person to another registered person

B to C :- From one registered person to unregistered person

VAT :- Value Added Tax

CST :- Central Sales Tax

15
 CHAPTER : 4
RESEARCH METHODOLOGY

16
 Research Methodology

Meaning –
Research is the systematic process includes formulating a hypothesis , collecting the
factor data, analyzing the fact & reaching certain conclusions either in the form of
solution towards the concerned problem or in certain generalization for some
theoretical formulation .

Definition
“ Research is a carefully investigation or inquiry especially through search for new fact in
any branch of knowledge.”

Methodology :
For the preparation of this report both primary and secondary sources of data are used. The
research is an descriptive research and the data collection is done mainly from the secondary
data sources such as statistical data available on the official web site of Finance ministry of
India, the books published on GST and various contemporary news articles, journals and
papers. The data so collected is used for understanding the present tax structure and for
calculating the tax structure in the GST regime along with credit provisions. The basic
statistical concept such as forecasting etc is used for determining the tax liability in of GST
at different proposed rates of tax . Most of the information in this report is written on the
basis of experience gained by the intermee in the company during the period of internship.

17
 Data of Collection

Research is the activity on the basic of which investigation can be done and problems can
be solved and decisions can be made.

Analysis of data should be done scientifically frame work which the research activities are
carried is called Research Methodology.

There are two reasons for which research is done :-

a) To find solution for the problem

b) To take decision
For Research there are different ways but for this project I collect the data in two ways :-
A) Primary Data
B) Secondary Data

A )Primary Data :-
Primary data collection means collecting data. It is the original data that is collected by
researchers and this service helps companies extract data from the grass root level.

B )Secondary Data :-
Secondary Data is extracted from existing data it is a quicker and cheaper way of gathering
information, the service itself helps companies extract useful data faster so as to be able to
implement it sooner.

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 METHODS OF DATA COLLECTION :-

Methods of
data
collection

Primary Secondary
data data

Observation Discussions Reports Books

TYPE OF RESEARCH:-

Descriptive Research :-
It is descriptive type of research. Descriptive Research survey and fact finding inquiries
of different kind. The major purpose of descriptive research is descriptive the state of
affairs, as it exist at present. The main control over the variable; he can only report what
has to discover the even when there he cannot the variable. The methods has to
researcher utilize descriptive research are survey methods of all kind.

19
 ANALYASIS AND INTERPRETATION

Tax :
Tax is a compulsory payment to the government by a tax payer. Tax shall means any tax
which must be paid by virtue (by force or authority) of this Law & shall include any fine,
interest or any other burden stipulated (terms of agreement or contract) by virtue of this
Law with the exception of any penalty (punishment). All countries in the world charge
taxes of some sort and there is no country in the world which does not charge any tax.

Tax Definition :
A compulsory contribution to state revenue, levied by the government on workers’
income and business profits, or added to the cost of some goods, services and transactions.

Implication of Tax :
1. Tax is compulsory and failure to tax can cause legal implication.

2. Money received by the government is used by the government for the benefit of
people or to accomplish common national goals.

Categorization of Tax :
1. Direct Tax

2. Indirect Tax

20
Direct Tax :
A direct tax is paid directly by an individual or organization to an imposing
authority. An individual, for example, pays directly to the government for different purposes,
like property tax, income tax etc. Direct taxes are based on the ability-to-pay principle. This
means more the income of resources more is the tax paid. It cannot be passed onto a different
person or business, the individual or business upon which the tax is charged is responsible for
the full tax payment. However. This has some adverse effects also. Direct taxes, especially
income tax, a person has to pay more if he earns more.

Types of Direct Tax:

• Income tax:
It is imposed on an individual who falls under the different tax brackets based
on their earning or revenue and they have to file an income tax return every
year after which they will either need to pay the tax or be eligible for a tax
refund.

• Corporate tax :
Corporate tax may be a sort of tax charged on profits earned by business in an
exceedingly specific amount of your time. varied rates of company taxes are
levied for various levels of profits earned by business homes. company tax is
usually levied on the revenues of a corporation once deductions like
depreciation, COGS (Cost of products sold) and SG&A (Selling general and
body expenses) are taken under consideration.

• Wealth tax :
Wealth tax is imposed on the value of the property that the person possesses.

• Estate tax :
Also known as inheritance tax, it is raised on an estate or the total value of
money and property that an individual has left behind after their death.

21
 Indirect Tax :

An indirect tax is amount paid to the central/state by a business firm

in the industry, but is preceded on to the consumer as part of the price that is paid with price of
goods and services. The tax is finally paid by the customers in terms of paying more for the
product/ service. An indirect tax is passed from one person to another.

Types of Indirect Tax :

• Service Tax :
It was imposed on the gross or aggregate amount charged by the service
provider on the recipient.

• Central Excise Duty :

This tax was payable by the manufacturers who would then shift the tax
burden to retailers and wholesalers.

• VAT(Value Added Tax) :

It was collected on the value of goods or services that were added at each
stage of their manufacture or distribution and then finally passed on to the
customer.

• Custom Duty :
It is an import duty levied on goods coming from outside the country,
ultimately paid for by consumers and retailers in India.

• Sales Tax :
This tax was paid by the retailer, who would then shifts the tax burden to
customers by charging sales tax on goods and service

22
GST (Goods and ServicesTax):

Definition :
GST and Services Tax ( GST) is an indirect tax (or consumption tax ) imposed
in India on the supply of goods and services. It will replace all indirect taxes levied on goods
and services by states and central. The whole issue about the impact of GST on the auto industry
hovers around the compliance of the new taxation system by the
sector as a whole.

The outlined benefits of GST on auto industry are primarily

simplifying logistics and constraining the operational and
manufacturing costs, the compliance is something industry is very
about. GST is single tax including various indirect tax acrossthe
entire nation which will build India’s image in the world.
GST may enhance the revenue on the availability of products and services, right from the
developer of goods to the consumer of the goods.

GST (Goods and Services Tax) is the biggest indirect tax reform of India. GST is a single tax
on the supply of goods and services. It is a destination based tax. GST has subsumed tax like
Central Excise Law, Service Tax Law, VAT, Entry Tax, Octroi, etc. GST is one of the biggest
indirect tax reforms in the country. GST is expected to bring together state economies and
improve overall economic growth of the nation.

There are around 160 countries in the world that have GST in place. GST is a destination based
taxed where the tax is collected by the State where goods are consumed. GST has been
implemented in India from July 1, 2017 and it has adopted the Dual GST model in which both
States and Central levies tax on Goods or Services or both.

23
CGST :- Central Goods and Services Tax :
CGST refers to the Central GST tax that is levied by the Central
Government of India on any transaction of goods and services tax taking
places within a state. It is one of the two taxes charged on every intrastate
(within one state) transaction, the other one being SGST (or UTGST for Union
Territories). CGST replaces all the existing central taxes including Service
Tax, Central Excise Duty, Customs Duty, etc. The rate of CGST is usually
equal to the SGST rate. Both taxes are charged on the base price of the product.
See the example below to understand it better.

24
 SGST :-State Goods and Services Tax :

Under GST, SGST is a tax levied on Intra State supplies of both goods and
services by the State Government and will be governed by the SGST Act. As explained
above, CGST will also be levied on the same Intra State supply but will be governed by
the Central Government.

Example of CGST & SGST -

Let’s suppose Suresh is a dealer in Maharashtra who sold goods to Anand in Maharashtra
worth Rs. 10,000. The GST rate is 18% comprising of CGST rate of 9% and SGST rate of
9%. In such case, the dealer collects Rs. 1800 of which Rs. 900 will go to the Central
Government and Rs. 900 will go to the Maharashtra Government.

IGST :- Integrated Goods and Services Tax :

IGST refers to the Integrated Goods and Services Tax which is a part
of GST under the concept of one nation one tax. It is one of the 3 types of taxes
and is under the Integrated Goods and Services Tax, 2017. It is chargedon the
goods and services supplied from one state to another in the course of import
into India and export of goods and services from India.

Example of IGST- Consider that a businessman Rajesh from Maharashtra had sold
goods to Anand from Gujarat worth Rs.1,00,000. The GST rate is 18% comprised of 18%
IGST. In such case, the dealer has to charge Rs. 18,000 as IGST. This IGST will go to the
Center.

25
GST has 4 tax slabs :

0% slab:- Milk, newspapers, sindoor, eggs, natural honey,fresh fruits

5% slab :- Household necessities such as like tea, coffee, pizza
breadcoal, medicines, spices.

12% slab :-This will include various processed food items and
somedaily products.

18% slab :- This will include AC, refrigerators, smartphones goods.

28% slab :-This will include alcohol, Tobacco, luxury cars and
some ‘white goods’.

26
 CHAPTER : 5
DATA ANALYSIS AND DATA INTERPRETATION

27
 GST REGISTRATION :-

GST registration is mandatory for most persons and entities supplying goods and servicesin
india. In case of a person or entity supplying goods or services, GST registration becomes
mandatory when the aggregate value of supply is more than Rs.20 lakhs. In case the entity is
operating in a special category state, GST registration becomes mandatory when the
aggregate value of supply is more than Rs.10 lakhs per annum. In this article, we look at the
eligibility for obtaining GST registration , list of document required and procedure for
applying for GST registration online.

❖ GST Registration Types:- There are various types of GST registration provided under the
GST Act. While applying for a GST registration, the taxpayer must be aware of the distinction
between the registration and select the right one.

1) Normal Taxpayer:-
This category of GST registration will be applicable for most of the
taxpayer who are running a business in india. To obtain normal taxpayer GST
registration, the applicable would not have to pay a deposit. Also , a registration
provided under the normal category will not have an expiry date.

2) Composition Taxpayer :-
This type of GST registration can be obtained for those wishing to
enroll under the GST Composition Scheme. Taxpayers enrolled under the
composition scheme can pay a flat GST rate. However , the taxpayer would not be
allowed to claim input tax credit.

3) Casual Taxable Person:-

Casual taxable person GST registration can be obtained by those
proposing to setup a stall or seasonal shop. casual taxable person registration is
normally provided for a period of upto 3 months and can be renewed or extended.

28
 4) Non – Resident Taxable persons:-

Non – resident taxable persons GST registration can be obtained

by any person located outside of india who is supplying goods or services to resident
in india. To obtain non-resident taxable person GST registration, the taxpayer must
deposit an advance equal to the amount of GST liability expected during the period in
which the GST registration would be active.

How to Register for GST online :-

This article will help you understand the basic process of GST Registration Every dealer whose
Annual turnover exceeds Rs 20 lakh (for special states, the amount is Rs 10 lakh) has
to register for GST. Here is a step-by-step guide on how to complete registration process online
on the GST Portal–

STEP 1 : Go to the GST portal Click on Register Now under Taxpayers (Normal)

1. Access the GST portal ->https://www.gst.gov.in/

2. Click on services -> Registration > New Registration option.

29
1.

30
STEP 2 :- Generate a TRN by Completing OTP Validation

The new GST registration page is displayed. Select the new Registration option. In case
you left a GST registration application without completing, the section TRN number
option can be used to continue to fill the old application.

1. In the drop down list, select the Taxpayer type from the option provided.

2. In the state/UT and District drop down list, select the state for which GST

Registration is required and district.

3. In the legal name of the business (AS mentioned in PAN ) field, enter the legal name
of your business/ entity as mentioned in the PAN database . hence, ensure the name is
the same as in PAN , apply for correction of PAN first.

4. In the (PAN) filed , enter PAN of your business or PAN of the proprietor. GST
registration is linked to PAN. Hence, in case of company or LLP , enter the PAN of
the company or LLP.

5. In the Email Address field, enter the email address of the primary authorized
signatory.

6. In the mobile Number filed , enter the vaild Indian mobile number of the primary
authorized signatory.

7. Click the proceed button.

31
32
STEP 3 :- OTP Verification & TRN Generation
on submission of the above information , the OTP Verification page is displayed.
OTP will be valid only for 10 minutes. Hence, enter the two separate OTP sent to
validate email and mobile number.

• In the mobile OTP field, enter the OTP you received on your mobile number .

• In the Email OTP field, enter the OTP you received on your email address.

STEP 4:- TRN Generated

on successfully completing OTP verification , a TRN will be generated.

TRN will now be used to complete and submite the GST registration application.

STEP 5:- Login with TRN

Now that TRN is generated, you can begin the GST registration process. In the
Temporary reference number (TRN) field on the GST portal, enter the TRN
generated and enter the captcha text as shown on the screen. Complete the OTP
verification on mobile and email. You will now be taken to the GST registration page
shown below.

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STEP 6:- Submit business information

• In the trade name field, enter the trade name of your business.

• Input the constitution of the business from the drop-down list.

• Enter the district nd sector/circle/ward/charge/unit from the drop-down list.

• In the commissionerate code, division code and range code drop-down list ,Select the
appropriate choice.

• Select if you would like to opt for the composition scheme.

• Input the date of commencement of business.

• Select the date on which liability to register arises. This is the day the business crossed the
aggregate turnover threshold for GST registration. Taxpayers are required to file the
application for new GST registration within30 days from the date on which the liability to
register arises.

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35
STEP 7 :- Submit promoter information

In the next tab, details of the promoters of the business must be submitted . in case of a
company , the directors information must be submitted. In case of proprietorship, the
proprietors information must be submitted. Details of upto 10 promoters partners can be
submitted in a GST registration application.

The following details must be submitted of the promoters:

• Personal details of the stakeholder like name, date of birth , address, mobile number,
email address and gender.
• Designation of promoter.
• DIN of the promoter, only for the following types of application :
1. Private limited company
2. Public limited company
3. Public sector undertaking
4. Unlimited company
5. Foreign company registered in india
• Details of citizenship
• PAN & Aadhar
• Residential address
• Photo of promoter.

In case the applicat provides Aadhar, aadhar e-sign can be used for singing the GST
returns instead of a digital signature.

36
37
STEP 8 :- Submit authorised signatory information :-
The authorised signatory is a person nominated by the promoters of the company to be
responsible for filing GST return of the company and maintaining the necessary compliance.
The authorised signatory will have full access to the GST portal and will be able to undertake
a wide range of transaction on behalf of the promoters. The promoters of a company can be
an authorised signatory.

STEP 9 :- Principal place of business :-

In the section, the details of principal place of business must be provided by the
applicant. The principal place of business is the primary location within the state where a
taxpayer’s business is performed. The principle place of business is generally the address
where the business’s books of accounts and records are kept and is often where the head of
the firm or at least top management is located. Hence, in case of company or LLP, the
principle place of business would be the registered office.

For the principle place of business enter the following:

• Enter the address details of the principal place of business.

• Enter the official contact details like email address, telephone number ( with STD code ),
mobile number filed and fax number ( with STD Code).
• Select the nature of possession of the premises.

38
39
STEP 10 :- Additional place of business
In case you have additional place of business, enter details of the property in this tab. For
instance, if you are a seller on flipkart or other ecommerce portal and use the sellers
warehouse , that location can be added as an additional place of business.

STEP 11 :- Details of Goods and Serivces:-

In the section, the taxpayer must provide details of top 5 goods and services supplied by the
applicant. This is just an indicative list and the business of the applicant will not be restricted
in any way to the goods and services mentioned in this part.

For goods supplied, provide the HSN code and for services , provide SAS code. In case, you
have more than 5 goods or services, you can add the top 5 goods and services you are dealing
with.

Click here to find HSN code and SAC code.

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STEP 12 :- Details of bank Account
in this section, enter the number of bank account held by the applicant. If there are 5
accounts, enter 5. Then provide details of the bank account like account number, IFSC code
and type of account. Finally, upload aa copy of the bank statement or passbook in the place
provided.

STEP 13 :- Verification of Application :-

In this step verify the details submitted in the application before submitted. Once
verification is complete, select the verification checkbox. In the name of authorised signatory
drop-down list, select the name of authorized signatory. Enter the place from where the from
is filled. Finally, digitally sign the application using digital signature certificate (DSC)/ E-
signature or EVC . digitally singing using DSC is mandatory in case of LLP and companies.

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STEP 14 :- ARN Generated :-
On signing the the application, the success message is displayed. You will receive the
acknowledgement in next 15 minutes on your registered e – mail address and mobile phone
number. Application reference number (ARN ) receipt is sent on your e-mail address and
mobile phone number. Using the GST ARN Number , you can track the status of your GST
registration application.

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 WHAT IS GST RETURN –

A return is a document containing details of income which a taxpayer is

required to file with the tax administrative authorities. This isused by tax authorities to
calculated tax liability.

Under GST, a registered dealer has to file GST return that include:

• Purchases
• Sales
• Output GST (on sales)
• Input tax credit (GST paid on purchases)
To file GST return , GST compliant sales and purchase invoice are required . You can
generate GST compliant invoices for free on clear tax billbook.

❖ GSTR- 1 :- SALES
What is GSTR-1 :-
GSTR -1 return will include details of the outward supplies or sales of goods and/or
services by the taxpayer. This return form would capture the following information:

Basic details like Business Name along with GSTIN, period for which the return is being
filed etc.

Details of invoices issued in the previous month and the corresponding taxes to be paid.

Details of advances received against a supply which has to be made in future.

Details of revision in relation to outward sales invoices pertaining to previous tax periods.

GSTR-1 is a monthly or quarterly return that should be filed by every registered

dealer. It contains details of all outward supplies i.e sales.The return has a total of 13 sections.

When is GSTR-1 due :-

Annual Turnover up to Rs. 1.5 crore can opt for quarterly filling

Quarter Due date

Oct –Dec 2018 31st January 2019
Jan- Mar 2019 30th April 2019

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 Monthly GST Return
Annual Turnover of more than Rs 1.5 crore must file monthly

period Dates
December 2018 11th January 2019

January 2019 11th February 2019

February 2019 11th March 2019

March 2019 11th April 2019

Filing Process of GSTR-1 :-

STEP 1:- A taxpayer needs to login at GST portal by using his user ID and password

STEP 2 :- Go to Services. In the drop-down click on Returns > Returns Dashboard

STEP 3 :- This will take you to the Return filing page. From the drop down select the
financial year and the month for which you want to file the return. Click on Search.
This will take you to the Return filing page. From the drop down select thefinancial year and the
month for which you want to file the return. Click on Search.

STEP 4 :- There are 2 options that a return filer has here – Prepare the return online or offline.
Let us take a look at the process of preparing the return online first. Click on Prepare online.

STEP 5:- This will take you to Details of outward supplies of goods or
services.Following details need to be filled here-

1. . Aggregate Turnover of previous Finacial Year. For the returns of July 2018 to March
2019, Financial Year means 1st April 2018 to 31st March 2019.
2 . Aggregate Turnover for April 2017 to June 2019

STEP 6 :- Below is the summary of all the Tables where details of outward supplies need to
Be entered

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❖ GSTR-2A :- PURCHASE

What is GSTR 2A-

GSTR 2A is a purchase-related tax return that is automatically generated for each business by
the GSTN portal.

When a seller files his GSTR-1, the information is captured in GSTR 2A

It takes information of goods and serives which have been purchased in a given month from
the seller’s GSTR-1. Apart from the details of GSTR 1, details operater from GSTR 5 (
supplied by non-resident taxable person), GSTR 6 (ISD), GSTR 7 (TDS Deduction) and
GSTR 8 (collected by TCS e-commerce) will be self- generated.

❖ How is GSTR 2 different from GSTR- 2A

GSTR 2A is an auto generated read only document which is for information purpose only
GSTR 2 is an official return which must be field and it will have the same information as
GSTR 2A . but GSTR 2 can be edited.

GSTR 2A will be an exact copy of GSTR 2, in which your suppliers will have the detail
declared in GSTR 1

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 GSTR 2A Due-date
GSTR 2A means a statement of Input Tax credit and you need not have to file GSTR 2A
legally. Thereby there is no such thing as GSTR 2A due date of filing.

How to file GSTR 2A :-

Step 1 :- login to GST Portal.
Step 2 :- Go to Services. In the drop down click on Return > Return Dashboard

STEP 3 :- select the financial year and the return filing period from the drop-down. Clickon
search

STEP 4 :- click on view button in the tile GSTR 2A

STEP 5 :- The GSTR 2- Auto drafted details is displayed

STEP 6 :- under part A, click on B2B Invocies. The details on this page will be auto- populated
based on the returns filed by the suppliers. Inward supplies from registered taxablepersons other
than the supplies attracting reverse charge
STEP 7 :- under part A- Amendment to B2B Invoices displays the invoices that have
been amended by the suppliers in their GSTR 1 or GSTR5.

STEP 8 :- Next is Credit/Debit Notes under part A. This covers all the credit note or debit
note added by the suppliers. Click on the tile to view GSTIN- wise details of debit/credit
note.

STEP 9 :- Amendments to credit/debit notes ( including amendment there of ) received

during the current tax period: is the next tile under part A.. Click on the tile to see supplier
wise details.

STEP 10 :- ISD Credits tile in part B is the next tile. The details inside this tile are auto-
populated based on the GSTR 6 filed by an input services Distributor.

STEP 11 :- TDS Credit tile under part C of GSTR 2A will get auto populated based on
GSTR 7 filed by the dealers who deduct TDS.

STEP 12 :- Part D TCS Credit received is the next tile. This contains details of TCS
collected by dealers. The details in this section are auto-populated based on GSTR 8 filed by
TCS collector.

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❖ GSTR 3B :- Monthly return.

GSTR- 3B is a monthly return. All regular taxpayer need to file this return till march 2019. .
The GSTR 3B is a simple tax return from introduced by the central board of excise and
custom (CBEC) for the month of July and August. The forms GSTR-1, GSTR-2, and GSTR-
3 for the months of July and August are to be filed in the month of September. In the interim,
all GST registrants have to file GSTR-3B form.

It is must that you have a separate GSTR 3B file for each Goods and Services Tax
Indentification Number (GSTIN) you have. You can mention only total values for each filed
in this form,invoice level information is not required for this form.

An important point to note is that some portions of part B of GSTR-3 will be automatically
populated from GSTR 3B file.So, in case there is any discrepancy between the two forms you
can correct GSTR-3 later and deposit the taxes payable.

“ Due date of filing GSTR-3B for the tax period march, 2019 has been extended to 23rd
April, 2019. Relevant notification is being issed for the same.”

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 Filling process of GSTR-3B :-

STEP 1- login to GST portal.

STEP 2- Go to Services > Return > Return Dashboard.

STEP 3 - This displays the ‘file Returns’ page. Select the ‘ Financial Year’ & ‘ Return
filing period’ for which you want to file the return from the drop-down list. click the
‘SEARCH’ button.

STEP 4 - on ‘Monthly Return GSTR-3B’ tile, click the ‘PREPARE ONLINE’ button.

STEP 5 – Enter values in each tile. You need to enter totals under each head. Fill in interest
and late fees, if applicable.

STEP 6 - click the ‘SAVE GSTR-3B’ button at the buttom of the page after all details are
added. A success message is displayed on the top of the page.

STEP 7 - once all the details are saved, ‘SUBMIT’ button at the page is enaled. Click the
‘SUBMIT’ button to submit the finalized GSTR-3B return. A success message is displayed at
the top of the page. Once you submit the form the added data is frozen . no change in any
filed can be made after this. The ITC and liability ledger will also get updated on submission.

STEP 8 - scroll down the page. You will see that the ‘Payment of Tax’ tile is enabled after
successful submission of the return.

To pay the taxes and offset the liability, perform the following steps;

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 • Click the ‘paymet of tax ‘ file.

• Tax liabilities as declared in the return along with the credits, get updated in the ledger ,
and are reflected in the ‘tax payable’ column of the payment section. Credit get updated in
and the updated balance is seen when hovering on the specific heading in the payment
section.

• Click the ;CHECK BALANCE’ button to view the balance of cash and credit. This
functionally enables the taxpayers to check the balance before making the payment for
the respective minor heads.

• Click the ‘OK’ button to go back to the previous page.

• Provide the amount of credit to be utilized from the available credit (in the separate
heads) to pay off the liabilities.
• While providing the inputs please ensure the utilization principle for credit are
adhered to, otherwise, the system will not allows for the offset of liability.
Click the ‘OFFSET LIBILITY’ button to pay off the liabilities. A confirmationmessage is
displayed. Click the ‘OK’ button

STEP 9 :- select the checkbox for declaration. From the ‘Authorised Signatory’ drop-
down list , select the authorized signatory. Click the ‘FILE GSTR-3B WITH DSC’ or ‘FILE
GSTR-3B WITH EVC button.

STEP 10- Click the ‘PROCEED’ button.

On successful filing, a message is displayed. Click the ‘OK’ button.

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The status of GSTR-3B return will now have changed to ‘filed’. You can click the ‘VIEW
GSTR-3B’ button to view the GSTR-3B return.

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DATA INTERPRETATION

LAXMI AGENCY
YEAR 2020-2021 2021-2022
SALES(Taxable) 1774285.88 4665204.06
CGST 104300.93 279269.20
SGST 104300.93 279269.20
IGST 3110.35 0.00
PURCHASE(ITC)
CGST 119238.22 224160.75
SGST 119238.22 224160.75
IGST 27584 29681.88

SALES OF LAXMI AGENCY

300000
250000
200000
150000
100000
50000
0
CGST SGST IGST

Series 1 Series 2 Column1

PURCHASE OF LAXMI AGENCY

250000

200000

150000

100000

50000

0
CGST SGST IGST

Series 1 Series 2 Column1

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INTERPRETATION:

1. Laxmi agency ITC for the year 2020-21 is more than Sales the Tax refund for the particular
year.
2. Laxmi agency ITC for the year 2022-22 is less than Sales the Tax to be paid for the particular
year

JINDAL STEEL
YEAR 2020-2021 2021-2022
SALES(Taxable) 2011688.98 4665207.06
CGST 109075.93 329269.20
SGST 109075.93 329269.20
IGST 5420.35 4390
PURCHASE(ITC)
CGST 135007.22 329980.75
SGST 135007.22 329980.75
IGST 27584 29431.88

SALES OF JINDAL STEEL

350000
300000
250000
200000
150000
100000
50000
0
CGST SGST IGST

Column1 Column2 Column3

1.

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 PURCHASE OF JINDAL STEEL
350000

300000

250000

200000

150000

100000

50000

0
CGST SGST IGST

Series 1 Series 2 Column1

INTERPRETATION:

1. Jindal Steel ITC for the year 2020-21 is more than Sales the Tax refund for the particular year.
2. Jindal Steel ITC for the year 2021-22 is more than Sales the Tax refund for the particular year

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 CHAPTER :6
FINDINGS ,SUGGESTIONS
AND CONCLUSION

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 6.1. FINDINGS

➢ Goods and service tax is adopted more than 160 countries.

➢ Goods and services tax in India highest tax charge in the other country.
➢ The Suppliers, manufacturers, wholesalers and retailers are able to recover GST
incurred on input costs as tax credits.
➢ Companies which are under unorganized sector will come under tax regime.
➢ Goods and services tax removed the cascading effect.
➢ Tax payer increased after the goods and services tax.

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 6.2. SUGGESTIONS

Goods and Service Tax was considered to be an epitome of the ideal tax mechanism
at the time of its implementation. The assumption is somewhere proved night as the
GST system has reduced effective tax rates and boosted supply chain efficiencies of
businesses. On the other hand, it is also prevalent that the system is not at all simple
and has burdened the taxpayer even more with tax-filing complexities.

Now it is invariably needed to introduce a set of amendments contributing towards

the certainty of the GST system

Steps to Make GST More Compliant:

➢ Reduction in Number of Tax Slabs Rates

➢ Effortless Input Tax Credit Claims

➢ Spreading the GST Net

➢ Renovating ITC System

➢ Practical Targets for GST Collection

➢ Including Some Exempted Goods In GST Regime

➢ Let E-waybill Go Away

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 6.3 CONCLUSION

Primarily, the concept of GST was introduced and proposed in India a few years
back, but implementation has been done by the current BJP government under the
able leadership of Prime Mmister Shri Narendra Modi on July 1, 2017.

The new govemment was in strong favor for the implementation of GST in India by
seeing many positive implications as discussed above in the paper. All sectors in
India - mamifacturing, service, telecom, automobile and small SMEs will bear the
impact of GST.

One of the biggest taxation reform- GST will bind the entire nation under a single
taxation system rate.

As forecasted by experts, GST will improvise tax collections and boost up India's
economic development and break all tax barriers between Central and State
Governments.

No doubt, GST will give India a clear and transparent taxation system, but it is also
surrounded by various challenges. There is need for more analytical based research
for successful implementation.

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58
 .

BIBLIOGRAPHY
WEBSITES:-

1. http://economectimes. Indiatimes.com/news/economy/policy/gst

2. www.google.com.

3. www.gstindia.com

4. www.taxguru.in

5. www.cleartax.com

6. www.taxmanagementindia.com

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