A SUMMER TRAINIG REPORT

ON
GOODS AND SERVICES TAX

SUBMITTED TO SANT BABA BHAG SINGH UNIVERSITY

KHIALA, JALANDHER

FOR THE PARTIAL FULFILLMENT OF THE

REQUIREMENTS FOR THE DEGREF OF

MASTER OF COMMERCE

SESSION (2023-2025)

SUBMITTED TO: SUBMITTED BY:

MR. ROBIN GURLEEN KAUR

(Assistant Professor) M.COM 3rd

Department of Commerce Roll.no 23030014

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 DECLARATION

I Gurleen Kaur hereby declare that this project report titled Goods and Services Tax in chartered
accountant submitted by me to Sant Baba Bhag Singh University, Khiala, Jalandhar, in partial
fulfillment the requirement of Master degree of commerce. Under the guidance of Mr. Robin,
is my original work and the conclusions drawn therein are the based on the material collected by
myself.

Signature of student

Gurleen Kaur
Roll no: 23030014
Date:-_____________

Examined by:

(Signature)

Mr. ROBIN.

2
CERTIFICATE

3
 ACKNOWLEDGEMENT

The time I spent in Krishna Consultancy Services, as an intern from 9 th July to 17th August, 2024
was a memorable one for me. I have learnt a lot of experience and also discovered my potential. I
had so many opportunities and experiences that I personally believe will help me in future. In this
report I have highlighted the opportunities offered by Krishna Consultancy Services. I have learnt
a lot of knowledge about goods and services tax and I have gained a practical knowledge about
GST. This report and internship would not have been possible without the contribution and
collaboration of the chartered accountant Mr. Pardeep Kumar. I express my deepest thanks to Mr.
Pardeep Kumar, Chartered Accountant of Krishna Consultancy Services.

Further on, I am grateful to the people in the Krishna Consultancy Services for giving me this
chance to work with them. It was a great experience of learning and I have learnt a lot of new
things and some of the things I have recalled by practicing the same in the work area. So I would
like to thank industry persons for giving me their precious time and attention which helped me my
improvement and growth for industrial work.

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 INDEX
Chapters Contents Page. No

Title page 1
 Declaration 2
 Certificate 3
 Acknowledgement 4
 Table of contents 5

Introduction of firm 6-14

 Vision 7
 Mission & Objective 7
 Services provided by them 7
 What is tax 9
 Classes of tax 9
 Introduction of GST 10
 Background of GST 10
 Types of GST 12
 VAT(value added tax) 13

2 Review of literature 15-17

3.
Research Methodology 18-23
 Source of data collection 19
 Primary Data 19
 Questionnaire method 19
19
 Target population
19
 Sample size
19
 Secondary Data 19
 Limitations of study 20
 Procedure of Registration 21-23

4. Data analysis and interpretation 24-35

5. Conclusion 36-37

6. Bibliography 38-39

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 CHAPTER: 1
INTRODUCTION OF FIRM

6
 INTRODUCTION TO FIRM

Krishna Consultancy Services is a team of practicing Chartered Accountants, Corporate financial

advisors and Tax consultants. It is situated in Hoshiarpur. The firm of Chartered Accountant
represents the collaboration of specialized skills that is off financial solutions and advices to the
firm's and also do the auditing and taxation work of the firm'

VISION
The Vision of Krishna Consultancy Services is to be the premier Accounting and consultancy
firm that provides excellent service to their clients.

MISSION AND OBJECTIVE OF KRISHNA CONSULTANCY SERVICES

The mission of the organization is to provide effective services to their clients and help them
achieve their desired outcomes. The firm is committed to creating and sustaining long term
relationship which drawn on their experience to help the client achieve real success.

SERVICE PROVIDED BY THE FIRM

Krishna Consultancy Services is a firm of chartered accountants which provides the services
given below:-

AUDITING:-

The most important function of chartered Accountant here is auditing. The auditing is a process of
examination of books, accounts, statutory records of documents and vouchers of an
organization to ascertain the accuracy in the accounts of the organization. It is of the main
work done by the Krishna Consultancy Services.

ACCOUNTANCY:-

The CA firm also do the accountancy work of other client firms. This includes the making
journals, Ledger books and Trial balance of the firm's. After doing this it also maintain the
financial statements of the firm. It helps the organizations to keep record of everything in the
firm.

TAXATION:-

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With a number of taxes on the statute book, current and continuing tax information has become
vital to the effective economics of business management. . The Chartered Accountant with his
experience in accounts is in an advantageous position for preparing the returns for tax purposes,
representing assesses before the Income-Tax authorities and rendering general advice on taxes to
his clients. . The requirement under the Income-Tax law for compulsory maintenance of accounts
by the specified categories of taxpayers would also make a demand on his time and services.

COST ACCOUNTANCY:-

A Chartered Accountant is also trained to ascertain the costs of production and of processes at
different levels of operations in the manufacture of a product and in the rendering of a service. He
is also equipped to provide costing information for the guidance of management, introduce cost
control methods and assist the management in establishing appropriate selling prices.

ADVISING ON FINANCIAL STRUCTURE:-

The firm also gives advices to their client companies in the financial structure of the
company. The financial structure of the company means the mixture of debt and Equity in
the company. The firm also gives suggestions to their clients how to raise the money and
where and from whom to raise the money by looking the market conditions, So that the
company can earn maximum profit from investment decisions of the company.

SOME OTHER SERVICES:-

 BOOK KEEPING SERVICES

 ASSURANCE SERVICES
 TAXATION ADVISORS
 INTERNAL AUDIT SERVICES
 SHARE VALUATION
 MAINTENANCE OF PURCHASE, SALE BOOKS
 RENDERING SECRETARIAL SERVICES AND ADVICE ON CORPORATE
LAW MATTERS
 PROVIDE SUGGESTION REGARDING COST MANAGEMENT AND COST
CONTROL.

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 TAX
MEANING: Taxation is the imposition of compulsory levies on individuals or entities by
governments in almost every country of the world. Taxation is used primarily to raise revenue for
government expenditures, though it can serve other purposes as well.

Taxes are the most important source government revenue. Taxes differ from other sources of
revenue in that they are compulsory levies and are unrequited—i.e., they are generally not paid in
exchange for some specific thing, such as a particular public service, the sale of public property or
the issuance of public debt.

Classes of taxes

In the literature of public finance, taxes have been classified in various ways according to who pays
for them, who bears the ultimate burden of them, the extent to which the burden can be shifted, and
various other criteria. Taxes are most commonly classified as either direct or indirect, an example of
the former type being the income tax and of the latter the sales tax.. There is much disagreement
among economists as to the criteria for distinguishing between direct and indirect taxes, and it is
unclear into which category certain taxes, such as corporate income tax or property tax, should fall.
It is usually said that a direct tax is one that cannot be shifted by the taxpayer to someone else,
whereas an indirect tax can be.

TYPES OF TAXES

Types of
taxes

Direct tax Indirect tax

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DIRECT TAX:

Direct taxes are primarily taxes on natural persons. Direct taxes are one type of
taxes an individual pays that are paid straight or directly to the government, such as income tax,
poll tax, land tax, and personal property tax. Such direct taxes are computed based on the ability
of the taxpayer to pay, which means that the higher their capability of paying is, the higher their
taxes are.

INDIRECT TAX:

Indirect taxes are basically taxes that can be passed on to another entity or individual. They are
usually imposed on a manufacturer or supplier who then passes on the tax to the consumer. The
most common example of an indirect tax is the excise tax on cigarettes and alcohol. Value Added
Taxes (VAT) is also an example of an indirect tax.

INTRODUCTION OF GST:

WHAT IS GOODS AND SERVICES TAX?

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 is 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.

The term GST is defined in the Article 366(12A) to mean "any tax on supply of goods or
services or both except taxes on supply of alcoholic liquor for human consumption

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. GST is a comprehensive indirect tax
levy subsuming all central and state levies with a single unified value added tax transforming the
nation into one single market. Major Central and State taxes are subsumed into GST which will
reduce the multiplicity of taxes, and thus bring down the compliance cost. With GST, the burden of
CST will be phased out. In India, the idea of adopting GST was first suggested by the “Atal Bihari
Vajpayee” Government in 2000. To the “Narendra Modi’s” Government in 2014, India’s new
Finance Minister Arun Jaitley was submit 122 nd Constitution Amendment Bill in the 16 th Lok
Sabha on 19th December 2014. The opposition demanded that the bill be sent for discussion to the
standing committee. Then Government of India has appointed various committees, task force to
give their views to introduce a vibrant and modern Indirect Tax structure in India.

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Finally in August 2016, The Constitution Amendment bill was passed in the parliament & 18
states ratified The Constitution Amendment Bill & The President “Pranab Mukherjee” gave his
assent to it.GST council has also recommended four – tier GST rate structure & thresholds.
.
GST council approved the Central Goods & Services Tax Bill 2017 (The CGST Bill), The
Integrated Goods & Services Tax Bill 2017 (The IGST Bill), The Union Territory Goods &
Services Tax Bill 2017 (The UTGST Bill), The Goods & Services.Tax (Compensation to the
states) Bill 2017 The Compensation Bill, these Bills were passed by the Lok sabha on 29, March,
2017. The Rajya sabha passed these Bills on 6th April 2017.The GST was implemented at
midnight on 1st July 2017 by president of the India, “Pranab Mukherjee” & the government of
India. The Jammu & Kashmir state legislature passed its GST act on 7 July 2017.

OBJECTIVES OF THIS FILE:

 To check the impact of GST.
 To check the current status of GST on growth and development of the country.
 To study about GST and it’s functioning.
 To gain theoretical knowledge about GST.

Objective of the GST:-

 One Country – One Tax.
 Consumption based tax instead of Manufacturing.
 Uniform GST Registration, payment and Input tax Credit
 To eliminate the cascading effect of Indirect taxes on single transaction
 Subsume all indirect taxes at Centre and State Level under
 Reduce tax evasion and corruption
 Increase productivity
 Increase Tax to GDP Ratio and revenue surplus
 Increase Compliance

Concept of GST:-

The Act came into effect on 1st July 2017; Goods & Services Tax Law in India is a
comprehensive, multi-stage, destination-based tax that is levied on every value addition. In simple
words, Goods and Service Tax (GST) is an indirect tax levied on the supply of goods and
services.

 Who shall pay?  Taxable person- sch III

 On what GST shall be paid?  Supply of Goods and services Section

7

 When GST shall be paid?  Point of Supply

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  Where shall GST be paid?  Place of supply

 To who shall would be paid?  Respective Government

 How to pay?  Cash / Credit

Types of GST:-

There are three kinds of taxes under the GST.

SGST, CGST & IGST

1. SGST:-
SGST means State Goods and Service Tax. It is covered under State Goods and Service Tax Act
2016. A collection of SGST will be the revenue for State Government. After the introduction of
SGST all the state taxes like Value Added Tax, Entertainment Tax, Luxury Tax, entry Tax etc.
will be merged under SGST. For example, if goods are sold or services are provided within the
State then SGST will be levied on such transaction.

2. CGST:-
CGST means Central Goods and Service Tax. CGST is a part of goods and service tax. It is
covered under Central Goods and Service Tax Act 2016. Taxes collected under Central Goods
and Service tax will be the revenue for central Government. Present Central taxes like Central
excise duty, Additional Excise duty, Special Excise Duty, Central Sales Tax, Service Tax etc. will
be subsumed under Central Goods And Service Tax.
3. IGST:-
IGST means Integrated Goods and Service Tax. IGST falls under Integrated Goods and Service
Tax Act 2016. Revenue collected from IGST will be divided between Central Government and
State Government as per the rates specified by the government. IGST will be charged on transfer
of goods and services from one state to another state. Import of Goods and Services will also be
deemed to be covered under Inter-state transactions so IGST will be levied on such transactions.
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For example, if Goods or services are transferred from Rajasthan to Maharashtra then the
transaction will attract IGST.
Tax Rates under GST:-
GST rates are divided into five categories which are 0%, 5%, 12%, 18%, 28%.
All the basic need requirement good are pleased in 0% category like food grains, bread, salt,
books etc. Goods like paneer packed food, tea coffee etc. are placed under 5% categories.
Mobiles, sweets, medicine are under 12%. All types of services are under18% category. All other
remaining luxury items are placed under the last head of 28%.
Composition scheme under GST:-
Any taxable person whose aggregate turnover in the preceding financial year is less than Rs. 1.5
Crores and less than Rs. 75 lakhs for North Eastern States can opt for a simplified composition
scheme where tax will payable at a concessional rate on the turnover in a state without the benefit
of Input Tax credit. The floor rate of tax for CGST and SGST shall not be less than 1%. A tax
payer opting for composition levy shall not collect any tax from his customers. Tax payers
making inter-state supplies or paying tax on reverse charge basis shall not be eligible for
composition scheme.
The rationales behind moving from current tax structure to GST are explained
below:-

 The indirect tax Regime where taxes under various headings are levied on goods and
services would be replaced with one common tax module. This will encourage national
market due to uniformity in tax structure across the states.
 Taxes levied at multiple levels mean extra burden on consumers and businesses due to
cascading effect. Implementation of GST would mean relief from excess taxing at
different levels.
 Earlier taxes for goods and services were separate, but clearly distinguishing between
goods and services have become difficult with lot of innovation and technological
advancement. GST will remove this problem too.

VAT (value added tax): Value-added tax (VAT) is consumption on goods and
services that is levied at each stage of the supply chain where value is added, from initial
production to the point of sale. The amount of VAT the user pays is based on the cost of the
product minus any costs of materials in the product that have already been taxed at a previous
stage.

How a Value-Added Tax Works:

VAT is levied on the gross margin at each point in the process of manufacturing,
distributing, and selling an item. The tax is assessed and collected at each stage. That is
different from a sales tax system, in which the tax is assessed and paid only by the
consumer at the very end of the supply chain.
Say, for example, a candy called Dulce is manufactured and sold in the imaginary country
of Alexia. Alexia has a 10% VAT.

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 Vat v/s sales tax
The main difference between a VAT and a sales tax is that a sales tax is only paid once: at
the initial point of sale. This means only the retail customer pays the sales tax.

Pros and Cons of VAT

In addition to the fiscal arguments, proponents of a VAT in the United States suggest that
replacing the current income tax system with a federal VAT would have other positive
effects.
Pros:
 Substituting a VAT for other taxes such as the income tax would close tax
loopholes.
 A VAT provides a stronger incentive to earn more money than a progressive
income tax does.
Cons:
 A VAT creates higher costs for businesses.
 It can encourage tax evasion.
 Passed-along costs lead to higher prices—a particular burden on low-income
consumers.

MEANING OF SUPPLY

Supply includes all forms of supply of goods and services such as

 Sale
 Transfer
 Barter
 Exchange
 License
 Rental or lease
 Disposal

Made or agreed to be made for a consideration by a person in the course of Furtherance

of business.

Normally a supply will involve two independent persons. However, GST makes transactions
between two branches of the same legal entity in different States/ countries or two different
registrations within the same State also taxable under GST.

Transactions of supply of goods between principals and agents which are not subject to tax in
present regime are taxable supplies under GST as these have been treated as supplies under
Schedule I of the CGST Act.

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 CHAPTER 2:
REVIEW OF LITERATURE

15
 Review of Literature
Halakhandi, (2007)
GST was supposed to be introduced in India way back in 2010. It has been getting postponed due
to various reasons major one being getting to a consensus between the various states and the
Centre for compensation. The author in the paper has discussed the existing laws in India for
indirect taxes, the VAT laws in various states with their advantages and disadvantages, the impact
of the proposed GST, the compliances under the proposed GST etc. The author has also used
various numerical examples to demonstrate how GST is cost effective.

Eva, (2008)
The author in his paper has examined the cost of complying with the indirect tax laws in the
Slovak Republic by doing research of small, medium and large businesses through a
questionnaire and concludes that businesses especially the small ones are not able to and do not
make efforts to quantify the cost of compliance which is quite high due to the complex laws.

Eugen, (2011)
The authors have examined the various methods adopted by assesses to evade VAT especially in
intra country transactions in Romania. The authors have also recommended the documentation
and returns which could be relied upon by both the authorities and the assesse to ensure that there
is no tax evasion.

Mansoura, (2013)
GST has always been considered as a tool in the hands of any Government to increase revenue.
The Malaysian Government introduced the said tax in Malaysia in order to reduce its budget
deficit. The authors in the paper have discussed the readiness of the Malaysian economy in
adopting the said newly introduced GST along with the reactions of various sections of the
society.

Satya Bhushan Research Scholar,

GST has started in India by passing a long way. Most of the countries now in the world are
under this system. Again, there was a need for a new one-country tax system to free India
from many taxes and rate system. GST will greatly help overcome economic confusion
caused by the complex tax structure and help in the development of general national
markets. It is expected that all sectors of economy such as industry, business, government
departments and services sectors have to bear its positive impact.

Kaultilya’s arthsastra
Kautilya claims that taxes are often seen as a Means of raising revenue for the government. The
primary goal of tax Collection in the primitive barters societies of medieval Europe and even
Ancient India was to raise funds for the economy. Metric & A Korean study (1977): According to
the Metric report, a 1% Reduction in GST would result in a 0.7 percent reduction in prices.
However, according to a Korean report, the implementation of GST has a Stable effect on prices.
It shows that after the implementation of GST in Korea in July 1977, wholesale prices increased
by 9% and consumer prices Increased by 1.7 percent. Musgrave (1986): GST. Has a wide-ranging
16
effect on the economy. This is because the tax has an effect on a number of macroeconomic
variables, Including savings, expenditure, wages, distribution costs, and resource Performance.
Some of these variables are influenced directly by GST, while others are influenced indirectly.
When a country implements GST.

Tait, Alan A. (1988)

Tait discovered that many governments have adopted unnecessary interventional policies to
handle the sensitive issue of changing tax rate at the time of GST implementation, according to an
analysis of policies in various countries. The impact of GST on prices has been studied, and the
exact impact depends on the situation that, it is a different tax system or a tax replacement.
Overall, the data indicates that this tax is not inflationary.

Tax Council-Paris (1988):

Rises in tax rate do not have an automatic effect on market price, according to studies discussed
in the Sixth Report of Tax Council and same has been presented to The President of the Republic
of Paris; rather, the amount of effect is contingent on the general economic situation and other
government activities. GST inflationary potential is determined not only by potential offsetting
adjustments in other taxes and the existing money supply, but also by wage, transfer payment,
liquidity, and psychological effects.

NIPFP (1989):
India's CENVAT demonstrate the level of wholesale prices for all commodities from April 1986
to September 1987, according to a research carried by NIPFP (National Institute of Public
Finance and Policy). The research discovers that the impact of price on a few products, primarily
intermediate inputs and capital goods, is significant but marginal at the disaggregated level.

Purohit Mahesh (1994):

One of the factors responsible for proper VAT compliance, according to his research, is the
organisation of the tax administration. Another important aspect of VAT management is the
operations, which begin with the registration of taxable persons. Both aspects of the tax system's
administration, as well as the costs of enforcement, are equally significant. The registration of
taxable persons is the first step in the VAT management process. Once registered, the taxpayer's
duty to file returns and procedures for keeping books of accounts vary depending on the activities
and amount of turnover. The method of assessment varies depending on the taxpayer's group.

Purohit Mahesh (1995),

In a separate report, he looked into the structure and administration of India's sales taxes. He
believes that if the sales tax is not adequately administered, it would negate its intent and
jeopardise the canon of equity. It may result in the development of a parallel economy as a result
of increased tax evasion. He outlined the characteristics of sales tax administration, reviewed the
organisational criteria, which included a management information system (MIS), and proposed
changes to the way sales tax is operated and administered. He believes that tax administration
plays an important role in achieving tax policy goals. He stressed the importance of improving
sales tax administration in order to pave the way for the introduction of VAT instead of sales tax.

17
 CHAPTER: 3
RESEARCH METHODOLOGY

18
 RESEARCH METHODOLOGY

The study is based on primary & secondary data collected from various referred books, National
and international journals, government reports, applications from various websites which focused
on various aspects of goods and service tax.

Source of data collection:

Primary data: the study requires detailed investigation on impact of GST on people as well as on
the growth of our country. . To collect such information is more time consuming, but it is likely to
yield a more accurate picture than a study based on secondary data.

Questionnaire method: The researcher has prepared questionnaire covering the data related to
heck the impact of GST for the present study. Questionnaire was of structured and non-disguised
type. To develop a list of items for framing a questionnaire review of existing literature on GST
was undertaken. Consultation with experts was also made in this regards. The questionnaire was
pretested with 100 respondents. Thereafter changes were made to questionnaire with specific
reference to wording, sequence and language.

Target population

The survey‘s target population is the entire set of population units about which the survey data are
to be used to make inference. For this survey all professional, graduates and post graduates were
targeted from the field of accounting, auditing and forensic accounting.

Sample size

● Total respondents were 100 out of this 64% were male and 36% female.

● The number of Age group of 18-30 years was survey was 22%, 31-40 years were 35%, 41-
50 years were 36%, and 51-60 years were 7%.

● Total of 22% Auditor, 25% General Auditor, 24% Chartered accountants and 29% others were
surveyed.

● Total surveyed 52% have less 5 years’ experience and 48% surveyed have more than 5 years’
experience.

Secondary data:
The secondary data in the form of archival information necessary for investigation was collected
mainly from reports and surveyed by Forensic accounting provider mainly KPMG, E & Y
national and international level and government published source as well as internet (websites
related to study topic). Various libraries were visited for collection of secondary data through
access of related books, journals, etc.

 The Researchers used an exploratory research technique based on past literature from
respective journals, annual reports, newspapers and magazines covering wide collection.

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LIMITATIONS OF STUDY:
 As the internship was the first practical experience it was not possible for me to
know all and everything of GST.
 Due to lack of time & more time consuming not able to get proper information
regarding GST.
 This study is mostly based on secondary data so the data may not properly
accurate.
 Limited data is collected due to shortage of time.

REGISTRATION UNDER GST

Registration under GST means the registration of goods and services tax, with the help of the
registration the tax can be paid by a taxable person under goods and services Act.

PERSONS LIABLE FOR REGISTERING UNDER GST ACT:-

 Every supplier whose turnover exceeds 20 Lakh, from where he makes a taxable supply of
goods or services or both, In case of special category states turnover exceeds 10 lakhs, he
shall be liable to be registered under this Act.
 When the business carried on by a taxable person is transferred, whether on account or
succession.
 In case of Amalgamation, Merger or De- merger of two companies registered under this
Act, are liable to be registered under GST Act.
 Every person who has licensed under existing law shall be liable to be registered under
this Act.

PERSONS NOT LIABLE FOR REGISTRATION UNDER GST

 If the person is supplying the goods which are exempted from tax under the goods and
services Act for e.g. alcoholic drinks, liquor.
 The persons who are specified by the government on the recommendation of the council
are exempted from registration under GST.
 An agriculturalist, to the extent of supply of procedure out of cultivation of land is
exempted.

COMPULSORY REGISTRATION

Compulsory Registration is the case where the government put compulsory for getting registered
under the Act. In this case the person has to register. He do not have any option rather than getting
registered under the Act. There are some cases under which the govt. made it compulsory to be
registered.

 Any person making supply within two states or inters state supply.
 Persons who are required to pay tax under Reverse Charge Mechanism.
 The non - residential persons making taxable supply.
 Persons required deducting tax.
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 Persons make taxable supply on behalf of other person for e.g. Agent.
 Input Service Distributor
 Persons supplies goods or services through electronic commerce operator.
 Every electronic commerce operator
 Who makes online supply of information and data base
 Persons notified by the govt. to be registered under this act.
 Casual taxable person making taxable supply of goods or services or both.

PROCEDURE OF REGISTRATION
(PART - A)

APPLICATION FOR REGISTRATION:-

For filling the application form of Registration under GST, a person shall declare his PAN
number, Mobile number, E- mail address, and State or Union territory in the FORM GST REG-
01 on the common portal. In case of Input service distributor separate application is required.

VALIDATION OF DETAILS AND TIN NUMBER

The given details will be validated. The PAN number will be validated online by CBDT. The
mobile number and Email through OTP will be validated. After the verification a temporary
reference number shall be generated and given to the applicant on his mobile no. And Email.
(PART – B)

SUBMISSION OF APPLICATION
After getting the Reference number, the applicant shall electronically submit an application of
form REG -01, duly signed or verified through Electronic Verification Code along with the
documents specified in the form at the GST portal.
In case the application is rejected due to any misstatement or wrong information provided by the
applicant, and officer require a clarification regarding that. He will issue a notice e to applicant
electronically in form GST REG- 03 within 3 working days from submission of application. And
applicant will give clarification information in form GST REG-04 within 7 days of receipt of
notice. If the officer is satisfied with the clarification given by applicant he may approve the grant
of Registration. If the officer is not satisfied he will reject the application with notice of
GST REG-05.

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ISSUE OF REGISTRATION CERTIFICATE AND GSTIN
If the officer has granted the Registration to the applicant, a certificate Registration in the form of
GST REG-06 will be given to applicant in whom the place of business and additional of business
shall be made available on the Common portal.

GST IN NUMBER
Goods and services tax identification number shall be assigned to the applicant who is
registering under GST Act. After getting the GSTIN Number the person can pay tax and avail
input tax credit. The GSTIN Number is in the following format -
a) Two characters of the state code
b) Ten characters of PAN number or TDS account no.
c) Two characters of identity code
d) One checksum character.

CANCELLATION OF REGISTRATION

The Registration granted to person for paying under goods and services tax can be cancelled, this
is called Cancellation of Registration under GST. The Registration can be cancelled in three
Persons under this Act.

1. BY REGISTRED PERSON
2. BY OFFICER
3. BY LEGAL HEIRS IN CASE OF DEATH OF A PERSON REGISTRAED UNDER GST
ACT.

IN CASE OF CANCELLATION BY REGISTRED PERSON

The registered person can request for the cancellation of the Registration. The Registered person
can apply for cancellation in further cases:-

 If within the year the turnover of the applicant reduced from 20 Lakh. In Special category
states >10 Lakhs.
 If the business is disconnected or transferred by the registered person.

IN CASE OF CANCELLATION BY TAX OFFICER

The tax officer can also cancel the Registration of a taxpayer. The taxpayer can cancel the
Registration in the following cases:-

22
1. When the Registered person has not paid the returns for 6 consecutive periods.
2. In case of composition scheme if the taxpayer has not filled the returns for last three
consecutive periods.
3. In case of voluntarily Registration if the person has not commenced the business within 6
months of Registration.

CANCELLATION BY LEGAL HEIRS

The legal heirs can also appeal for the cancellation of registered person in case of death of a
person. The registered person can request to the tax officer for the cancellation of Registration in
the following circumstances:-

 In case of death of the registered person.

LOADING:-When they receive the order from supplier, then the loading process starts for
exporting. In loading firstly they check the temperature of truck, it should under 5 degree. All the
boxes during the loading go through a machine which checks the boxes so that there should not be
any m

23
 CHAPTER: 3
DATA ANALYSIS AND INTERPRETATION

24
 ANALYSIS, FINDINGS & RECOMMENDATION
Data presentation of GST:-
GST- The Goods and Services Tax- is the mother of all tax reforms in India. It is crucial for all
businesses to understand the implications of GST on their brands. Since GST is a new law and
crucial processes like return filing and invoicing have been changed, it is even more important
that business owners and tax professionals understand the nuances of these new laws so that they
can be GST-compliant.

Understanding the Payment Process under GST

Every registered person is required to compute his tax liability on a monthly basis by setting off
the Input Tax Credit (ITC) against the Outward Tax Liability. If there is any balance tax liability
the same is required to be paid to the government.

There are 3 ledgers prescribed by the government that is required to be maintained by every tax
payer –

1. Electronic Tax Liability Ledger

The electronic tax liability ledger shows the total tax liability of a registered person at any point of
time. This detail can be accessed on the GST portal of a registered tax payer

Amount of tax payable A

Interest, late fee B
Amount of tax payable along with interest on account of mismatch C
of credit based on provisions of Section 29 or Section 29A or
section 43C
Any other amount payable by the taxpayer or directed by the board D
on account of any proceeding’s carried out

Tax Deduction at source E

Tax Collection at source F
Tax payable under reverse charge G
Amount payable by the department against any interest, refund, H
penalty, late fee or any other amount determined under the
proceedings under this Act
Balance in Electronics Tax Liability Ledger =A+B+C+D-E-F-G-H

2. Electronic Cash Ledger

An Electronic Cash Ledger will also be maintained on the GST portal. It will display the total
amount deposited by the tax payer towards discharge of his tax liability or interest or late fee or
penalty any other amounts. Also, it is now mandatory for businesses making payment for more
than Rs 10,000 to do it electronically. To know more on how to GST check our Guide on GST
Payment.

25
 3. Electronic credit ledger

All the taxes paid on the inputs would be recorded in the electronic credit ledger. The input tax
credit in each of the cases mentioned below, shall also be transferred to the electronic credit
ledger:

 ITC available to the branch for the amount of credit transferred by ISD
 ITC allowed on input held in stock and the semi-finished or finished goods would be
credited to electronic credit ledger if the taxpayer applies for registration within 30 days of
becoming liable to pay tax.
 ITC available on the input held in stock and semi-finished or finished goods by a taxpayer
in the composition scheme converting to a normal taxpayer shall be transferred to
electronic credit ledger.
 ITC available due to the taxes paid under the reverse charge mechanism shall also be
transferred to the electronic credit ledger.
 ITC available on goods/services used for the business and other purposes shall only be
allowed to the extent applicable for business purposes.

All the payments under GST have to be made by either using the input tax credit available in the
electronic credit ledger or through the electronic cash ledger.

Utilizing ITC for the fulfillment of Tax liability:

IGST: After the IGST input tax credit is used for payment of IGST then the remaining ITC can
be used to pay tax liability under CGST and SGST.
CGST: The CGST input tax credit cannot be used to pay the SGST liability but can be used to
pay the liability under CGST. Further, the balance of CGST credit available can be used to pay
the IGST liability.
SGST: The SGST input tax credit cannot be used to pay the CGST liability but can be used to
pay the liability under SGST. Further, the balance of SGST credit available can be used to pay the
IGST liability.
Data analysis of GST:-
The Prime Minister approved the Constitution Amendment Bill for goods and service tax (GST)
in the parliament Session (Rajya Sabha on 3 August 2016 and Lok Sabha on 8 August 2016)
along with the ratification by 50% of the state legislatures. Thus, the current indirect taxes levied
26
 by state and Centre are all set to be replaced with proposed implementation of GST by April
2017.

Benefits of GST:-

 Removal of bundled indirect taxes such as VAT, CST, Service tax, CAD, SAD, and Excise.
 Less tax compliance and a simplified tax policy compared to current tax structure.
 Removal of cascading effect of taxes i.e. removes tax on tax.
 Reduction of manufacturing costs due to lower burden of taxes on the manufacturing sector.
Hence prices of consumer goods will be likely to come down.
 Lower the burden on the common man i.e. public will have to shed less money to buy the same
products that were costly earlier.
 Increased demand and consumption of goods.
 Increased demand will lead to increase supply. Hence, this will ultimately lead to rise in the
production of goods.
 Control of black money circulation as the system normally followed by traders and
shopkeepers will be put to a mandatory check.
Goods and Services Tax (GST) Forms for Registration & Cancellation:-
Sr.No Form Description
. Number
1. REG-01 Registration Application u/s 19(1) GST Act, 20
2. REG-02 Acknowledgement
3. REG-03 Information regarding Registration / Amendments / Cancellation Notice
4. REG-04 Filing application for clarification Registration / Amendment / Cancellation /
Revocation of Cancellation
5. REG-05 Order application for rejection for Registration / Amendment / Cancellation /
Revocation of Cancellation
6. REG-06 Issued registration certificate u/s 19(8A) of the GST Act, 20
7. REG-07 Application for Registration as TDS or TCS u/s 19(1) of the GST Act, 20

8. REG-08 Order of Cancellation of Application for Registration as TDS /TCS u/s 21 of

the GST Act
9. REG-09 Non-Resident Taxable Person Application for Registration
10. REG-10 Person supplying online information and database access or retrieval services
from a place outside India to a person in India, other than a registered person
Application for registration
11. REG-11 Amendment in Particulars subsequent to Registration Application
27
12. REG-12 Temporary Registration/ Suo Moto Registration Order of Grant
13. REG-13 Grant of Unique Identity Number (UIN) to UN Bodies/ Embassies /others
Application/Form
14. REG-14 Application for Cancellation of Registration under GST 20
15. REG-15 Amendment Order
16. REG-16 Cancellation of Registration Application
17. REG-17 Cancellation of Registration Show Cause Notice
18. REG-18 Show Cause Notice issued for Cancellation Reply
19. REG-19 Cancellation of Registration Order
20. REG-20 Dropping the proceedings for cancellation of registration Order
21. REG-21 Revocation of Cancellation of Registration Application
22. REG-22 Order for revocation of cancellation of registration
23. REG-23 Show Cause Notice for rejection of an application for revocation of
cancellation of registration
24. REG-24 Reply to the notice for rejection of an application for revocation of cancellation
of registration
25. REG-25 Provisional Registration Certificate
26. REG-26 Existing Taxpayer Application Enrolment
27. REG-27 Provisional registration Show Cause Notice cancellation
28. REG-28 Provisional registration Order Cancellation
29. REG-29 Provisional registration Application cancellation
30. REG-30 Field Visit Report Form

Goods and Services Tax (GST) Forms for Composition

Sr.No Form Number Description

1. CMP-01 Notification for the payment of taxes under section 10 (composition

scheme)

(Concerning taxpayers registered under the present regime migrate on the

elected day)

2. CMP-02 Notification for the payment of taxes under section 10 (composition

scheme)
(Concerning Taxpayers registered under the Act)

28
3. CMP-03 Notification of stock details from the date of opting composition scheme
(Concerning taxpayers registered under the present regime migrate on the
elected day)

4. CMP-04 Notification/ Application to opt out from the composition scheme

5. CMP-05 Notification of denial option for the payment of tax under composition
scheme
6. CMP-06 Responding to the notification to show cause
7. CMP-07 Reply order to accept or reject concerning show cause notice

List of forms for a GST Practitioner

Forms for GST-Practitioner
Form Purpose of Form
FORM GST Application to become a practitioner
PCT-1
FORM GST Certificate of Registration for a GST-Practitioner
PCT-2
Form GST Notice seeking additional information on application for enrollment or show cause
PCT-3 notice issued to GST practitioner for misconduct
Form GST Order of rejection of application for enrollment or disqualification of a GST
PCT-4 practitioner found guilty of misconduct
Form GST List of enrolled GST practitioners maintained on the Common portal
PCT-5
Form GST Authorisation of a GST practitioner by a taxable person on the Common Portal
PCT-6
Form GST Withdrawal of authorization of a GST practitioner by a taxable person
PCT-7

List of Forms for Input Tax Credit (ITC) under GST

ITC Forms
Form Purpose of Form
Form GST ITC Declaration for claim of input tax credit under sub-section (1) of section 18.
–1
Form GST ITC Declaration for transfer of ITC in case of sale, merger, demerger, amalgamation,
–2 lease or transfer of a
business under sub-section (3) of section 18.
Form GST ITC Declaration for intimation of ITC reversal on inputs, inputs contained in semi-
–3 finished and finished
goods and capital goods in stock under sub-section (4) of section 18.

29
Form GST ITC Details of goods/capital goods sent to job worker and received back.
–4

List of Form for Tax payment under GST

Form Purpose of Form

Form GST PMT-01 Electronic Liability Register of registered person
(Part–I: Return related liabilities
Electronic Liability Register of taxable person
(Part–II: Other than return related liabilities)
Form GST PMT-02 Electronic Credit Ledger
Form GST PMT-03 Order for re-credit of the amount to cash or credit ledger on
rejection of refund claim
Form GST PMT-04 Application for intimation of discrepancy in Electronic
Credit Ledger/Cash Ledger/Liability Register
Form GST PMT-05 Electronic Cash Ledger
Form GST PMT-06 Challan For Deposit of Goods and Services Tax
Form GST PMT-07 Application for intimating discrepancy in making payment

List of Tax Refund forms under GST

Refund forms under GST
Form Purpose of Form
GST Application for Refund
RFD-01
GST Acknowledgement
RFD-02
GST Deficiency Memo
RFD-03
GST Provisional Refund Order
RFD-04
GST Payment Advice
RFD-05
GST Refund Sanction/ Rejection Order/Interest on delayed refund order (same as refund order)
RFD-06
GST Order for complete adjustment of sanctioned Refund

30
RFD-07
GST Notice for rejection of application for refund
RFD-08

GST Reply to show cause notice

RFD-09

GST Application for Refund by any specialize agency of UN or Multilateral Financial Institution
RFD-10 and Organization, Consulate or Embassy of foreign countries, etc

FINDINGS & RECOMMENDATION

Types of GST Returns:
Return Particulars

Sr.No

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

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

input tax credit

3 GSTR-3 Monthly return on the basis of finalization of details of outward supplies

and inward supplies along with the payment of amount of tax

4 GSTR-4 Quarterly Return for compounding taxable persons

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

6 GSTR-6 Input Service Distributor return

7 GSTR-7 Return for authorities deducting tax at source

GSTR-8 Details of supplies effected through e-commerce operator and the amount
8
of tax collected as required under sub-section (52)

9 GSTR-9 Annual Return

31
 10 GSTR-9A Simplified Annual return by Compounding taxable persons registered
under section 10

Due Dates for filing of Return in GST:

Sr.No Return Form Due Date

1. GSTR-1 10th of Next Month

2. GSTR-2 After the 10th but before 15th of Next Month

3 GSTR-3 20th of Next Month

4 GSTR-4 18th from end of the Quarter

5 GSTR-5 20th from end of the month or within 7 days after the last day of validity
of registration whichever is earlier

6 GSTR-6 13th of Next Month

7 GSTR-7 10th of Next Month

8 GSTR-8 10th of Next Month

9 GSTR-9 31st December of Next Financial Year

10 GSTR-9A 31st December of Next Financial Year

Impact of gst in India Response

Positively 50%

Negatively 37%

No impact 17%

32
 50%
45%
40%
35%
30%
25% Series1
20%
15%
10%
5%
0%
POSITIVELY NEGATIVELY no impact

Do transition of GST region was? Response

Smoother 45%

Difficult 33%

Very difficult 22%

45%
40%
35%
30%
25% smoother
dificult
20%
very difficult
15%
10%
5%
0%
1

33
 RECOMMENDATION OF GST

The major recommendations are as detailed below:

1. Upper limit of turnover for opting for composition scheme to be raised from Rs. 1 crore to
Rs. 1.5 crore. Present limit of turnover can now be raised on the recommendations of the
Council.
2. 2. Composition dealers to be allowed to supply services (other than restaurant services), for
up to a value not exceeding 10% of turnover in the preceding financial year, or Rs. 5 lakhs,
whichever is higher.
3. Levy of GST on reverse charge mechanism on receipt of supplies from unregistered suppliers,
to be applicable to only specified goods in case of certain notified classes of registered persons,
on the recommendations of the GST Council.

4. The threshold exemption limit for registration in the States of Assam, Arunachal Pradesh,
Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand to be increased to Rs. 20 Lakhs from Rs.
10 Lakhs.

5. Taxpayers may opt for multiple registrations within a State/Union territory in respect of
multiple places of business located within the same State/Union territory.

6. Mandatory registration is required for only those e-commerce operators who are required to
collect tax at source.

7. Registration to remain temporarily suspended while cancellation of registration is under

process, so that the taxpayer is relieved of continued compliance under the law.

8. The following transactions to be treated as no supply (no tax payable) under Schedule III:

a) Supply of goods from a place in the non-taxable territory to another place in the non-
taxable territory without such goods entering into India;

b) Supply of warehoused goods to any person before clearance for home consumption;
and

c) Supply of goods in case of high sea sales.

9. Scope of input tax credit is being widened, and it would now be made available in respect of
the following:
34
 a) Most of the activities or transactions specified in Schedule III;

b) Motor vehicles for transportation of persons having seating capacity of more than thirteen
(including driver), vessels and aircraft;

c) Motor vehicles for transportation of money for or by a banking company or financial

institution;

. d) Services of general insurance, repair and maintenance in respect of motor vehicles,

vessels and aircraft on which credit is available; and

e) Goods or services which are obligatory for an employer to provide to its employees, under
any law for the time being in force.

10. In case the recipient fails to pay the due amount to the supplier within 180 days from the
date of issue of invoice, the input tax credit availed by the recipient will be reversed, but liability
to pay interest is being done away with.

11. Registered persons may issue consolidated credit/debit notes in respect of multiple
invoices issued in a Financial Year.

12. Amount of pre-deposit payable for filing of appeal before the Appellate Authority and the
Appellate Tribunal to be capped at Rs. 25 Crores and Rs. 50 Crores, respectively.

13. Work, upto a period of one year and two years, respectively.

14. Supply of services to qualify as exports, even if payment is received in Indian Rupees,
where permitted by the RBI.

15. Place of supply in case of job work of any treatment or process done on goods temporarily
imported into India and then exported without putting them to any other use in India, to be outside
India.

16. Recovery can be made from distinct persons, even if present in different State/Union
territories.

17. The order of cross-utilization of input tax credit is being rationalized.

35
CHAPTER:-5

CONCLUSION

36
 CONCLUSION

Conclusion of GST

Implementation of GST is one of the best decisions taken by the Indian government. For
the same reason, July 1 was celebrated as Financial Independence day in India when all
the Members of Parliament attended the function in Parliament House. The transition to
the GST regime which is accepted by 159 countries would not be easy. Confusions and
complexities were expected and will happen. India, at some point, had to comply with
such regime. Though the structure might not be a perfect one but once in place, such a
tax structure will make India a better economy favorable for foreign investments. Until
now India was a union of 29 small tax economies and 7 union territories with different
levies unique to each state. It is a much accepted and appreciated regime because it
does away with multiple tax rates by Centre and States. And if you are doing any kind
of business then you should register for GST as it is not only going to help
Indian government but will help you also to track your business weekly as in GST you
have to make your business activity statement each week.

37
 BIBLOGRAPHY

WEBSITES

 http://www.taxmann.com
 https://www.google.com/
 https://www.google.com/search?

BOOKS USED
 Goods and Services Tax law, Author: Shubham Jain
 GST Law & Practice (Arpit Haldia, Mohd. Salim)

GST SURVEY QUESTIONNARE SURVEY ON GST

IMPLEMENTATION

Name:

Designation:

Organization Name:

Address:

Sector/Product:

E-mail/Mobile:

Turnover (annual):

No of Employees:

Category: Manufacturing ☐ Services ☐ Trading ☐

Please tick whether you are: Small unit ☐ Medium unit ☐ large unit ☐

38
1. Do you feel that the introduction of GST in India has affected the demand for the

Product/services?

☐ Positively

☐ Negatively

☐ No impact

2. Do you think transition to GST Regime was?

☐ Smoother

☐ Difficult

☐ Very difficult

3. What is the key GST compliance issues being faced by you? Please select the key

Issues and state the order of priority [in column 4] (on scale of 1 to 5; 1 – Most

Important; 5 – Least Important):

a. Cost compliance

b. Issues with goods and

services tax portal

c. Cumbersome
procedure
and documentation
d. Lack of IT
infrastructure

e. Lack of trained
manpower in the
company
f. Any other issues

39