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A

PROJECT REPORT
On
"A Comparative Study of GST return"

Submitted towards Partial Fulfilment of


BACHELOR OF COMMERCE (AFFILIATED
TO LUCKNOW UNIVERSITY, LUCKNOW)

Submitted to: Submitted By:


Feroze Gandhi Degree College ANCHAL MISHRA
Raebareli Roll No. 2140012010021
B. Com – V Semester

FEROZE GANDHI DEGREE COLLEGE,


1
RAEBARELI

“A Comparative study of GST return”

Affiliated to: -

Submitted by:

2140012010021

Company Guide:

Faculty Guide:

Department of Commerce, Feroze Gandhi College Raebareli


Accredited “A” Grade Institution

Academic Year 2023 - 24


2
CERTIFICATE

This is to certify that the investigation described in this report titled


“A Comparative study of GST return” has been carried out by Anchal Mishra during the
summer internship project.The study was done in the organization, Rajpal Tanu & co in partial
fulfillment of the requirement for the degree of bachelor of commerce of Feroze Gandhi
college Raebareli of commerce and economics (An Autonomous college) affiliated to
Lucknow University.

This work is the own work of the candidate, complete in all respects and is of sufficiently high
standard to warrant its submission to the saiddegree.

The assistance and resources used for this work are duly acknowledged.

Prof. ARUN KUMAR


Faculty Guide

3
DECLARATION

I, ANCHAL MISHRA, hereby declare that the project report on " A COMPARATIVE

STUDY OF GST RETURN " with reference to "RAJPAL AND TANU" prepared by me

under the guidance of Mr. ARUN KUMAR, A faculty of COMMERCE DEPARTMENT,

FEROZE GANDHI COLLEGE, RAEBARELI.

I also declare that this project report is towards the partial fulfilment of the university

regulations for the award of the degree of BACHELOR OF COMMERCE by LUCKNOW

UNIVERSITY.

I have undergone CA Firm internship for a period of Four weeks. I further declare that this

report is based on the original study undertaken by me and has not been submitted for the award

of a degree/diploma from any other University / Institution.

(Signature of Student)

Place: ………………………….

Date: …………………………

4
ACKNOWLEDGEMENT

It is a matter of pride and privilege for me to have done a summer internship project in
“RAJPAL TANU & CO” and I am sincerely thankful to them for providing this opportunity
to me.

I am thankful to “MISS. TANU RAJPAL” for guiding me through this project and
continuously encouraging me. It would not have been possible to complete this project without
her support.

I am also thankful to all the faculty members of Department of co m m er ce , F E R O ZE


G A N DH I COL L E G E R A E B ARE LI and particularly Prof. Arun Kumar for helping
me during the project.

Finally, I am grateful to my friends for their unending support.

Anchal Mishra
2140012010021

5
Table of Contents

Offer Latter
Certificates
Declaration
Acknowledgement

Chapter – 1……………………………………………………..

1.1 Introduction……………………………………………………………
1.2 Vision and Mission……………………………………………………
1.3 Company profile………………………………………………………
1.4 Terminologies…………………………………………………………

Chapter – 2……………………………………………………..

2.1 Literature Review……………………………………………………..


2.2 History of GST and it’s types…………………………………………
2.3 Objectives of GST…………………………………………………….
2.4 List of GST and Slab………………………………………………….
2.5 Online GST Registration Process……………………………………..
2.6 GST returns……………………………………………………………

Chapter – 3……………………………………………………..

3.1 Objective of study……………………………………………………..


3.2 Scope of study…………………………………………………………
3.3 Research Methodology………………………………………………..
3.4 Impact on Indian Economy……………………………………………

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Chapter – 4……………………………………………………..

4.1 Graphical representation and comparison…………………………….


4.2 Comparison of GSTR-3B with GSTR-2A…………………………….

Chapter – 5……………………………………………………..

5.1 Findings & Suggestions……………………………………………….


5.2 Limitations…………………………………………………………….
5.3 Conclusions……………………………………………………………
5.4 Bibliography…………………………………………………………..

7
CHAPTER – 1

INTRODUCTION

1|Page
INTRODUCTION

The title of the project study “A Comparative study of GST return” gives us broad

knowledge about GST and analysis of GST return. Thestudy also helps to know how auditing

of various GST return done in practical world of finance.

The Goods and Services Tax, or GST, is an indirect tax law applicableacross India. It has

replaced multiple indirect taxes such as excise duty, service tax, value-added tax, octroi, entry

tax, and luxury tax. Laws pertaining to the same were put into effect on July 01, 2017, in India.

This indirect taxation system has gone through multiple amendments since to arrive at the

current juncture. However, it must be noted that GST does not replace customs duty, which is

still mandatory on imported goods and services. Every kind of product and service attracts a

different tax rate under GST. For example, luxury or sin goods are classified to attract a higher

interest rate, whereas necessities have beenincluded in lower and nil rate slab rates.

2|Page
VISION AND MISSION

Rajpal Tanu & co is a team of individuals that collects, interprets, and maintains financial

information while providing quality customer service and training. We strive to protect the

financial integrity of the University ina changing regulatory and technological environment. A

department recognized for providing excellent customer service, including training, and

reliable, accurate financial information.

Our goal is to provide a full range of financial information: from detailed information, such as

how to process a transaction, to overviewinformation, such as how to interpret the financial

reports. We providea full disclosure of the University's finances in the Reports section.

3|Page
COMPANY PROFILE

Name of firm :- RAJPAL TANU & CO

Type of firm :- Chartered Accountant

Work profile of firm :- Legal and Auditing

Proprietors of firm :- 1) CA TANU RAJPAL

4|Page
TERMINOLOGIES

 GST - The Goods and Services Tax, or GST, is an indirect tax law applicable across
India. It has replaced multiple indirect taxes such as excise duty, service tax, value-
added tax, octroi, entry tax, and luxury tax.

 Auditing is a part of the accounting world. It is an examination of accounting and


financial records that is undertaken independently.

 CGST, SGST, IGST, UGST

 Comparison of GSTR-3B vs GSTR-2A

 GSTR-3B with GSTR-1

5|Page
CHAPTER – 2

LITERATURE
REVIEW

6|Page
LITERATURE REVIEW

G. Garg, analyzed the impact of GST on Indian tax scenario. He triedto highlight the objectives

of the proposed GST plan along with the possible challenges and opportunity that GST brings.

He concluded that GST is the most logical steps towards the comprehensive indirect tax reform

in our country since independence. GST is leviable on all supply of goods and provision of

services as well combination thereof. All sectors of economy i.e., the industry, business

including Govt. departments and service sector shall have to bear impact of GST. All sections

of economy viz., big, medium, small-scale units, intermediaries, importers, exporters, traders,

professionals and consumers shall be directly affected by GST. One of the biggest taxation

reforms in India – the Goods and Service Tax (GST) is all setto integrate State economies and

boost overall growth. GST will createa single, unified Indian market to make the economy

stronger. Expertssay that GST is likely to improve tax collections and Boost India’s economic

development by breaking tax barriers between States and integrating India through a uniform

tax rate. Under GST, the taxation burden will be divided equitably between manufacturing and

services,through a lower tax rate by increasing the tax base and minimizing exemptions.

Pankaj Chand the authors in the paper have explored the concept of GST, the need to

introduce it in India, the hurdles in introducing it in India and suggestions to overcome the

same. The paper also discussesthe benefits of introducing GST at the earliest. The authors have

discussed the options to introduce the dual GST in India which could be Concurrent Dual GST,

National GST or State GST. Under the concurrent dual GST the better option was the one

where GST is applied on both goods and services. The other option explored was whether the

Central GST would be on goods and services but state GST would be only on goods since state to

collect GST in services is difficultto determine. This option also recommended one single return

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with both CGST and SGST details and PAN based registration. The authorshave also discussed

the constitutional amendments required if GST is ever to be introduced since without the

amendment taxing both goods and services using one tax is not possible. The paper also

highlights theissues in the credit mechanism in the CGST/SGST model since it is difficult to

practically implement in terms of determination of place where service is taxable. The other

challenges to introduction of GST in India highlighted are the availability of strong IT network,

infrastructure and programs, agreement on other provisions like basic threshold, exemption to

goods/services, rates to be applied, etc.

8|Page
History of GST

Year Event

2000 PM Atal Bihari Vajpayee sets up a committee to draft

the Goods & Services Tax law for India.

2004 A task force is put together to figure out the

requirements to create and implement GST with thepurpose of improving

the indirect tax system.

2006 The Finance Minister of India, P. Chidambaram,

schedules the introduction of the Goods & Services Tax

on April 01, 2010.

2007 The decision to phase out Central Sales Tax (CST) ismade, after which

CST rates are reduced from 4% to

3%.

2008 The EC finalizes the dual structure of GST for separate

legislation and levy.

9|Page
2010 The introduction of GST is postponed citing structuraland implementing

hurdles.

2013 The Standing Committee presents its report on GST.

2014 The Finance Minister of India reintroduces the GST Bill

to the Parliament.

2015 The Lok Sabha approves the Bill but it gets stalled in

the Rajya Sabha.

2016 The Goods and Services Tax Network (GSTN) goeslive; simultaneously,

the GST Bill as well as all amendments made up until this point get

approved by

the President of India.

2017 The Cabinet approves the creation of foursupplementary bills on GST. Post

which, the Goods & Services Tax Law gets implemented in full force on July

01, 2017.

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Types of GST Charged in India

1. State Goods and Services Tax (SGST)

The State Goods and Services Tax is one of the GST types which the government of a particular

state imposes. The state government taxes goods and services within the state (intrastate, for

example Mysore), and the state government is the sole beneficiary of the collected revenue.

 The SGST replaces various state-level taxes such as lotterytax, luxury tax, VAT,

purchase tax and sales tax.

 However, if the transaction of the goods is interstate (outside the state), then

both SGST and CGST are applied. But, if the goods and services are

transactions within the state, only SGST is imposed.

 The rate of GST is equally divided among the two types ofGSTs. For instance,

when the traders sell their commoditieswithin their state, they must pay SGST

and CGST. The revenue earned from SGST belongs to the state government and

revenue from CGST to the central government.

 The SGST of various goods and services depends on thegovernment

notification published from time to time.

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 SGST Rates

Commodities SGST

Common Groceries such as Tea,Salt, Spices, 2.5%

Sugar, etc.

Processed foods 6%

electronic goods

Capital Goods, toiletries, etc. 9%

Premium luxury commodities 14%

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2. Central goods and Services tax (CGST)

The Central goods and Services tax applies to the intrastate (within thestate) supply of goods

and services. The central government taxes it. The CGST Act governs this type of GST. Here,

the revenue generatedfrom the CGST is collected along with the SGST and is divided between

the central and state government.

For instance, when a trader makes a transaction within the state, the goods are taxed with SGST

and CGST. The GST rate is divided equally between SGST and CGST, while the revenue

collected under the CGSTbelongs to the central government.

 CGST Rates

Commodities CGST

Common Groceries such as Tea, Salt,Spices, 2.5%

Sugar, etc.

Processed foods 6%

electronic goods

Capital Goods, toiletries, etc. 9%

Premium luxury commodities 14%

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3. Integrated Goods and Services tax (IGST)

The Integrated Goods and Services tax is a type of GST, where the taxapplies on the interstate

supply of goods and services. This GST type isalso imposed on the goods and services that are

imported as well as exported. The IGST Act governs it, and the central government is

responsible for the collection of IGST.

The collected IGST is equally divided into central and state government portions. The State

portion of the IGST is provided to the state where the goods and services are received. The

remaining IGST received goesto the central government.

For instance, when the trader makes a supply between two states, the type of tax in this case

would be IGST.

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 IGST Rates

Commodities IGST

Common Groceries such as Tea, Salt,Spices, Sugar, 5%

etc.

Processed foods 12%

electronic goods

Capital Goods, toiletries, etc. 18%

Premium luxury commodities 28%

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4. Union Territory Goods and Services Tax (UGST)

The Union Territory Goods and Services Tax is a type of GST imposed on the goods and services

in the union territories. This is similar to theSGST but applies only to the union territories.

The UGST is applicable in Dadra, Nagar Haveli, Chandigarh,

Andaman and Nicobar along with Pondicherry and Delhi. Here the revenue collected by the

government belongs to the Union territory government. As the UGST is a replacement for the

SGST, they are collected along with the CGST.

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OBJECTIVES OF GST

 The elimination of other taxes –

The introduction of the GST Act led to the replacement of other indirect taxes. The

major taxes are grouped into the GST.

 Increases compatibility –

The tax compliance is easier for MSME or small-scale businesses.In addition, the presence

of a single tax makes the process of filing a return easier.

 Increases transparency –

The GST reduces the chances of corruption and increases transparency. For example,

in businesses there are reduced chances of a false input tax credit.

 Reduction of price –

The GST bill imposes taxes exclusively on the net value-added part, eliminating the

previous tax-on-tax system and reducing thecost of commodities.

 Boost the country's revenue –

A large tax-to-GDP ratio indicates increased governmentrevenues, indicating a healthy

economy. In addition, a broader tax base and greater tax compliance can lead to an

increased government income from GST operations.

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 High efficiency and productivity –

The GST in India intends to eliminate logistical restrictions and the time-consuming

filing process for the input tax credit. Furthermore, by eliminating the entry tax, the

productivity levelsof businesses are predicted to rise.

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List of Goods and Service Tax Rates and Slab

1. 5% Tax Slab

The tax slab of 5% is where the GST tax actually begins. The products which attract a 5% GST

Rate are skimmed milk powder, coffee, fish fillets, coal, fertilizers, ayurvedic medicines,

insulin, cashew nuts, Agar-Batti, Ethanol - Solid biofuels among a few others.

The GST rate in India for services in the 5% tax slab includes smaller restaurants affiliated with

transport services like railways and air travel,standalone AC restaurants, non-AC restaurants,

and restaurants that serve alcohol.

2. 12% GST Slab

The 12% slab includes items such as frozen meat products, butter, sausage, ghee, pickles, fruit

juices, namkeen, tooth powder, instant food mix, umbrella, medicine, cell phones, man-made

yarn, wooden frames for painting, photographs, Brass Kerosene Pressure Stove, Art ware of

iron, mirrors, etc.

3. 18% GST Slab

The GST rate in India is structured in such a way, that the bulk of the items fall under this

category. Some of the main items included are flavored refined sugar, cornflakes, pasta, pastries

and cakes, detergents, washing and cleaning preparations, mirror, glassware, safety glass,

sheets, pumps, light fitting, compressors, fans, chocolate, tractors,preserved vegetables, ice

cream, televisions (up to 68 cm).

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Some others include marble & granite, paints, scent sprays, hair shavers, lithium-ion batteries,

artificial fruits, hair curlers, hairdryers, stones used in flooring, vacuum cleaners, sanitaryware,

leather clothing, wristwatches, cookers, stoves, cutlery, telescope, goggles, binoculars, oil

powder, cocoa butter, fat, detergent as well as artificial flower.

4. 28% GST Slab

The 28% GST slab is the highest GST rate in India. It is mainly reserved for sin goods as well

as luxury items. The goods which are part of this slab are, pan masala, dishwasher, weighing

machine, paint,cement, sunscreen.

Automobiles and motorcycles along with hair clippers are also part of this slab which is also a

bone of contention as the auto industry is goingthrough a downturn currently.

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Step-by-step Guide explaining GST Registration Process
Online

The MoF has simplified the GST registration procedure online. The applicant can process the

GST registration procedure through the GST Portal. After submission of the application, the

portal generates GST ARN immediately. Using the GST ARN, the applicant can check the

application status and post queries if necessary. Within 7 days of ARN generation, the taxpayer

shall receive a GST registration certificate and GSTIN.

Step 1: Go to the GST Portal


Access the GST Portal ->https://www.gst.gov.in/ > Services -> Registration > New Registration
option.

GST Registration – Step 1

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Step 2: Generate a TRN by Completing OTP Validation

The new GST registration page is displayed. Select the New Registration option. If the GST

registration application remains incomplete, the applicant shall continue filling the application

using TRN number.

 Select the Taxpayer type from the options provided.

 Choose the state as per the requirement.

 Enter the legal name of the business/entity, as mentioned in the PAN database. As the

portal verifies the PAN automatically, the applicant should provide details as mentioned

in the card.

 In the Permanent Account Number (PAN) field, enter PAN of the business or PAN of

the Proprietor. GST registration is linked to PAN. Hence, in the case of a company or

LLP, enter the PAN of the company or LLP.

 Provide the email address of the Primary Authorized Signatory. (Will be verified in next

step)

 Click the PROCEED button.

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GST Registration – Step 2

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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 the email and

mobile number.

 In the Mobile OTP field, enter the OTP.

 In the Email OTP field, enter the OTP.

Step 4: TRN Generated

On successfully completing OTP verification, a TRN will be generated. TRN will now be used

to complete and submit the GST registration application.

GST Registration – Step 3

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Step 5: Log in with TRN

Upon receiving TRN, the applicant shall begin the GST registration procedure. 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.

GST Registration – Step 4

Click on the icon marked in red to start the GST registration process.

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Step 6: Submit Business Information

Various information must be submitted for obtaining GST registration. In the first tab, business

details must be submitted.

 In the Trade Name field, enter the trade name of the business.

 Input the Constitution of the Business from the drop-down list.

 Enter the District and 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.

 opt for the Composition Scheme, if necessary

 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 within 30 days from the date on which the liability

to register arises.

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GST Registration – Business Information

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Step 7: Submit Promoter Information

In the next tab, provide promoters and directors information. In case of proprietorship, the

proprietors’ information must be submitted. Details of up to 10 Promoters or Partners can be

submitted in a GST registration application.

The following details must be submitted for the promoters:

 Personal details of the stakeholder like name, date of birth, address, mobile number,

email address and gender.

 Designation of the promoter.

 DIN of the Promoter, only for the following types of applicants:

o Private Limited Company

o Public Limited Company

o Public Sector Undertaking

o Unlimited Company

o Foreign Company registered in India

 Details of citizenship

 PAN & Aadhaar

 Residential address

In case the applicant provides Aadhaar, the applicant can use Aadhaar e-sign for filing GST

returns instead of a digital signature.

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GST Registration – Promoter Information
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Step 8: Submit Authorized Signatory Information

An authorized signatory is a person nominated by the promoters of the company. The

nominated person shall hold responsibility for filing GST returns of the company. Further, the

person shall also maintain the necessary compliance of the company. The authorized signatory

will have full access to the GST Portal. The person shall undertake a wide range of transactions

on behalf of the promoters.

Step 9: Principal Place of Business

In this section, the applicant shall provide the details of the principal place of business. The

Principal Place of Business acts as the primary location within the State where the taxpayer

operates the business. It generally addresses the books of accounts and records. Hence, in the

case of a company or LLP, the principal place of business shall be the registered office.

For the principal place of business enter the following:

 Address of the principal place of business.

 Official contact such as Email address, telephone number (with STD Code), mobile

number field and fax number (with STD Code).

 Nature of possession of the premises.

If the principal place of business located in SEZ or the applicant acts as SEZ developer,

necessary documents/certificates issued by Government of India are required to be uploaded by

choosing ‘Others’ value in Nature of possession of premises drop-down and upload the

document.

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In this section, upload documents to provide proof of ownership or occupancy of the property as

follows:

 Own premises – Any document in support of the ownership of the premises like Latest

Property Tax Receipt or Municipal Khata copy or copy of Electricity Bill.

 Rented or Leased premises – A copy of the valid Rent / Lease Agreement with any

document in support of the ownership of the premises of the Lessor like Latest Property

Tax Receipt or Municipal Khata copy or copy of Electricity Bill.

 Premises not covered above – A copy of the Consent Letter with any document in

support of the ownership of the premises of the Consenter like Municipal Khata copy or

Electricity Bill copy. For shared properties also, the same documents may be uploaded.

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GST Registration – Place of Business

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Step 10: Additional Place of Business

Upon having an additional place of business, enter details of the property in this tab. For

instance, if the applicant is a seller on Flipkart or other e-commerce portal and uses the seller’s

warehouse, that location can be added as an additional place of business.

Step 11: Details of Goods and Services

In this section, the taxpayer must provide details of the top 5 goods and services supplied by the

applicant. For goods supplied, provide the HSN code and for services, provide SAC code.

Click here to find HSN code and SAC code.

GST Registration – Goods & Services Supplied

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Step 12: Details of Bank Account

In this section, enter the number of bank accounts 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 a copy of the bank statement or passbook in the place provided.

GST Registration – Bank Account

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Step 13: Verification of Application

In this step, verify the details submitted in the application before submission. Once verification

is complete, select the verification checkbox. In the Name of Authorized Signatory drop-down

list, select the name of the authorized signatory. Enter the place where the form is filled. Finally,

digitally sign the application using Digital Signature Certificate (DSC)/ E-Signature or EVC.

Digitally signing using DSC is mandatory in case of LLP and Companies.

Step 14: ARN Generated

On signing the application, the success message is displayed. The acknowledgement shall be

received in the registered e-mail address and mobile phone number. Application Reference

Number (ARN) receipt is sent to the e-mail address and mobile phone number. Using the GST

ARN Number, the status of the application can be tracked.

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GST RETURN

GST return is a document that will contain all the details of your sales, purchases, tax collected

on sales (output tax), and tax paid on purchases(input tax). Once you file GST returns, you will

need to pay the resulting tax liability (money that you owe the government).

All business owners and dealers who have registered under the GST system must file GST

returns according to the nature of their businessor transactions.

 Regular Businesses.

 Businesses registered under the Composition Scheme.

 Other types of business owners and dealers.

 Amendments.

 Auto-drafted Returns.

 Tax Notice.

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Different types of GST Returns

GSTR-1 Returns of outward The due date is 11th of

supplies undertakenby next month

a typical registered Previously, the due date


taxpayer
for GST return filing was10th
under GST.
of the next month.

GSTR-2 Returns of inward 15th of next month.

supply of goods and

services as agreed by

the recipient of the

goods and

services.

GSTR-3 A monthly GST return 20th of next month.

filing of inward and

outwardsupplies of

goods and services.

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GSTR-3B Returns of outward Previously it was the 20th of

supplies along with the next month for all

input tax credit is taxpayers. Now it's from the

declared and payment month of January 2020

of tax is affected by the onwards.

taxpayer.

GSTR-4 GST filing for The due date is the 30th ofthe

taxpayers registered month succeeding a financial

under the composition year.

schemeunder section 10

of the CGST Act

(Supplier of goods)

and CGST (Rate)

GSTR-5 Return for a non- 20th of next month.

resident foreign taxable

person.

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GSTR-6 Returns that an Input

Service Distributor

files every calendar

month. It has all the

information of the

invoices on which

credit has been 13th of next month.

received and are

issued by an ISD.

GSTR-7 A monthly return that 10th of next month.

has to be filed by the

deductors who are

required todeduct TDS

under

GST.

GSTR-8 Returns for the 10th of next month.

electronic commerce

operator who is

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required to deductTax

Collected at

Source under GST.

GSTR-9 Annual return for a 31st December of next

normal taxpayer. financial year.

GSTR-9A Annual return to be

filed by the registered


31st December of next
taxpayerunder the
financial year.
composition levy

anytime during the

year.

GSTR-9C Certified reconciliation 31st December of next

statement financial year.

GSTR-10 A final return that To be filed within 3 months

needs to be filed to of cancellation oforder.

make sure the

taxpayer pays off any

liability

outstanding.

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How to file GST returns online?

You can file the GST return online as follows.

Step 1: Register for GSTIN

For those taxpayers who are not registered, you need to register to get the GSTIN number. It is a

15-digit number that is generated based on your state code of operation and PAN.

Step 2: Log in to the GST portal

You must log in to the GST portal (https://www.gst.gov.in/) using your username and password

and then click on the tab called ‘Services’.

Step 3: Returns dashboard

You will see an option called the ‘Returns dashboard’. Click on that. You will be asked to

choose a financial year for which you are filing the GST return. Choose the appropriate one

from the drop-down menu provided.

Step 4: Prepare online

You must then select the return you wish to file. You will be given options of how you wish to

file. For the online GST return process, click on the ‘Prepare Online’ option.

Step 5: Enter details

You will need to enter all the details correctly in the fields provided. Note that if you have any

pending late fees, you must fill in the details of that as well when you are filing your GST

returns. Next, you need to save the form and then submit it.
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Step 6: Check submission status

When the GST return form has been submitted, you need to ensure the status of the GST return

has been changed to ‘Submitted’.

Step 7: Tax payment

When the status shows the return has been submitted, then you need to click on ‘Payment of

Tax.’ You will see a ‘Check Balance’ option which you need to click. The balance shown will

reveal the credit and cash balance.

Step 8: Offset liability

You must click on the option that says ‘Offset Liability’ to make the GST payment online in a

few minutes. You need to then check the relevant boxes for declaration purposes. Then click on

‘File Form with DSC’/’File Form with EVC’ and then make the payment.

There are numerous GST return forms available and filling each can have additional steps or

even lesser steps than the general steps outlined above. The details of how to fill in the details

can be found on the official GST website. Before you fill out any GST form, you should keep

all the information and details close by. Using a software solution such as Tally Prime is

advised to ensure no errors are made during filing the return process.

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Impact on Common People

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CHAPTER – 3

RESEARCH
METHODOLOGY

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OBJECTIVES OF STUDY

 Objective of studying GST return is to know the in-depth knowledge of GST,

how to file GST return.

 Compare GST return invoices for auditing.

 Understanding various aspects of GST which help company attime of auditing.

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SCOPE OF STUDY

 Acquiring knowledge of GST and return

 Getting importance of various tax slab in GST.

 Understanding comparison of GST return.

 Evaluating results with help of graphs.

 Understanding recursion of not filling return.

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RESEARCH METHODOLOGY

A research methodology encompasses the way in which you intend to carry out your research.

This includes how you plan to tackle things like collection methods, statistical analysis,

participant observations.

Research methodology is mainly of two types: -

 Primary Data

 Secondary Data

During internship we have use primary data from seller such as purchase and sale invoice to

reconcile with the GST report filled by theseller.

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Impact on Indian Economy

1. Reshapes Indirect Tax Structure

 It will reshape the indirect tax structure by a subsuming majority of indirect taxes

like excise, sales and services levies

 This will do away with the complex indirect tax structure of the country, thus

improving the ease of doing business in the country.

2. Exports

 Exports will become competitive as the GST regime will eliminate the cascading impact

of taxes.

 GST could boost India’s GDP growth by 0.9-1.7 per cent.

 GST is a key for India’s gross domestic product in times of challenging global

environment.

3. Gross Domestic Product

 The GST will bring about a qualitative change in the tax system by redistributing the

burden of taxation equitably between manufacturing and services

 impact on growth due to reduction in direct cost and cost reduction on capital inputs

pegged the improvement in growth rates between 1.5 and 2 percent.

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4. Inflation

 Due to lower burden of taxes on the manufacturing sector, the manufacturing costs will

be reduced, hence prices of consumer goods likely to come down

 Due to reduced cost some products like car, FMCG, etc. will become cheaper.

 The low prices will further lead to an increase in demand/consumption of goods.

5. Foreign Exchange

 The passing of the GST will be welcome news for the Indian rupee (INR).

 GST will lead to higher foreign direct investment inflows and a narrow current account

deficit-factors that should help the rupee increase.

6. Impact on Make–in– India

 The tax reforms through GST will play a crucial role to attract large-scale investment.

 The impending GST promises a progressive tax system which avoids tax cascades and

helps establish India as a true common market.

 GST will reduce the cost of production and allows the hassle-free supply of goods

7.Unification of Market

 GST will lead to the creation of a unified market, which would facilitate seamless

movement of goods across states and reduce the transaction cost of businesses.

 Presently 11 categories of taxes are levied on the road transport sector.

 The GST will help bring down logistical costs.

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8. Clean–up India

 The clean-up of the Indian taxation system will reduce the number of excise duty

exemptions.

 According to the estimates, excise tax exemptions result in foregone revenues of Rs. 1.8

lakh crore

 India loses about 2.7 percent of GDP because of these exemptions.

9. Foreign Trade

 GST is a solution provider by lining up total indirect tax structure of all streams into one

single tax payable by the companies

 The impact of this will be on the all multinational companies and facilitates for ease of

doing business and adds factor to the globalization and liberalization.

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CHAPTER – 4

ANALYSIS &
INTERPRETATION

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GRAPHICAL REPRESENTATION

Graph showing trends in GST collection in Rs. crore

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GST COLLECTION GRAPH

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Comparison of GSTR-3B vs GSTR-2A

Form GSTR – 3B is a monthly summary return filed by the taxpayer by the 20th of the next

month or 22nd/24th of month following the quarter. Taxpayers are allowed to take the input

tax credit (ITC) basedon the details declared by the taxpayer

Form GSTR – 2A is an auto-populated form generated in the recipient’s login, covering all the

outward supplies (Form GSTR – 1) declared by his suppliers.

When the supplier files GSTR – 1 in any particular month disclosing his sales, the

corresponding details are captured in GSTR-2B and GSTR – 2A of the recipient. While the

filing of Form GSTR – 2 has been kept in abeyance, it’s still important under the GST

framework for the taxpayers to reconcile the ITC claimed in Form GSTR – 3B andForm GSTR

– 2A.GSTR – 3B is a summary return. Hence, the amount of ITC available as disclosed in Table

4(a) must match with tax detailsdisclosed in Form GSTR-2B regularly, along with GSTR – 2A.

GSTR-3B vs GSTR-2A is an important exercise that businesses must not miss out on. It helps

businesses claim the full Input tax credit (ITC)and also reverse any excess ITC claimed. In turn,

the reconciliation before filing GSTR-3B will help avoid any potential demand notices from

the tax authorities.

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Importance for GSTR-3B vs GSTR-2A

 GST authorities have issued notices to a large number of taxpayers asking them to

reconcile the ITC claimed in a self- declared summary return Form GSTR – 3B with

the auto- generated Form GSTR-2B and Form GSTR – 2A. Such notices are issued in

Form GST ASMT – 10. The taxpayer would be required to reply to such notices or pay

the differential amount.

 Tax evaders claiming ITC on the basis of fake invoices have also been penalized in the

past.

 Reconciliation ensures that credit is being claimed for the tax which has been actually

paid to the supplier.

 Ensures that no invoices have been missed/recorded more than once, etc.

 In case the supplier has not recorded the outward supplies in Form GSTR – 1,

communication can be sent out to the supplier to ensure that the discrepancies are

corrected.

 Errors committed while reporting details in GSTR-1 by suppliers or GSTR-3B by

recipients can be rectified.

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Reasons for non-reconciliation of GSTR-2A vs 3B

The details disclosed in Form GSTR – 2A and Form GSTR – 3Bmay not reconcile on

account of the following reasons:

 The credit of IGST claimed on the import of goods

 IGST Credit on the import of services

 The credit of GST paid on reverse charge mechanism, etc.

 Transitional credit claimed in TRAN – I and TRAN – II.

 ITC for goods and services received in FY 2020-21 but availed inFY 2021-22.

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Advantages of GSTR-3B vs 2A report

 Download GSTR-2A anytime across months from the GST portalto start comparing with

GSTR-3B data. Verify GST login once using OTP, and continue to easily update data

in a click, anytimeand anywhere.

 Check the difference for every field such as B2B other than reverse charge to compare

ITC between GSTR-2A and GSTR- 3B.

 ITC comparison at PAN and GSTIN level is available.

 Know the differences instantly at a monthly level or at a quarterly level, to take further

action.

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Auditing of GSTR-3B with GSTR-1

Comparing GSTR-3B with GSTR-1 is a much-needed process to be undertaken by every

taxpayer in order to ensure that there are no variations or gaps, which could, in turn, lead to a

demand notice from the tax authorities or unwanted issues that may arise and hinder the

accurate filing of the annual returns.

GSTR-3B is a monthly summary return filed by a taxpayer by the 20th of the next month or

22nd/24th of month following a quarter. GSTR- 3B discloses supplies made during the month

along with GST to be paid, input tax credit claimed, purchases on which reverse charge is

applicable, etc., and also makes a provision for the payment of taxes, ifany, for the relevant

month.

GSTR-1 is a monthly or quarterly return filed by taxpayers to disclosedetails of their outward

supplies for the month – along with their tax liability. Here, invoice-wise details are to be

uploaded so that the Government can keep a check on every transaction. This forms the basis

for the recipient of supplies to accept the same and take the eligible input tax credit.

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Importance for GSTR-3B vs GSTR-1

 Time and again, GST authorities have issued show cause notices to a large number of

taxpayers asking them to reconcile the total of sales disclosed in the GSTR-3B summary

return and thedetailed GSTR-1 return.

 Reconciliation ensures that no invoice is omitted or recorded more than once in either

of the returns.

 This ensures a taxpayer to arrive at an accurate amount of output tax payable on the sales

made in a period.

 From 1st January 2021, taxpayers must ensure that supplies declared in GSTR-1 must

match the summary total of supplies declared in GSTR-3B. Otherwise, the GSTIN may

be suspended.

 Any late declaration of GST liability can also attract interest.


 Reconciliation would also help the Government to allocate the right share of tax

revenue to the concerned states. This reconciliation is specifically useful to identify any

errors that havebeen made when entering the details of integrated taxes while filing

GSTR-3B.

 GSTR-1 forms the base for the recipients of supplies to claim input tax credit while

filing their returns. Hence, a timely and accurate declaration in both GSTR-1 and GSTR-

3B is necessary,to avoid hassles with recipients at a later date, and also ensure thatonly

genuine input tax credit can be claimed.

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Reconciliation at the time of filing of Annual return

 At the time of filing an Annual return in Form GSTR – 9, a reconciliation of outward

supplies is a must to ensure that the details disclosed match the details disclosed in

GSTR-1 and GSTR-3B, across all months. Details of tax paid during the year need to

be mentioned as well and this must tally with the total taxes disclosed and paid in

GSTR-3B.

 Therefore, it is important that GSTR-1 and GSTR-3B match as the return-filing system

is integrated and a mismatch between thesame could result in improper disclosure in the

annual return. GST Return and Analysis

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Reasons for mismatches in GSTR-3B vs GSTR-1

Most commonly, the details disclosed in Form GSTR – 3B and GSTR –

1 may not reconcile on account of the following reasons:

 Reporting of supplies under the wrong table in GSTR-3B, but correctly reporting the

same when declaring it invoice-wise in GSTR-1. For example: Reporting zero-rated

sales correctly in Table 6A of GSTR-1, but incorrectly reporting it under Table 3.1(a)

in GSTR-3B.

 Issue of an invoice in a particular month, and issue of a debit or credit note at a later

date could lead to mismatches.

 Inter-state supplies made to unregistered persons omitted in GSTR-3B but declared in

GSTR-1.

 Value of supplies correctly shown but tax paid under the wrong head. For example,

IGST instead of CGST & SGST or vice- versa.

 Supplies that may have been amended after GSTR-1 has been filed. In other words, any

change of tax liability between the timeof filing GSTR-1 and GSTR-3B.

 The time difference in reporting of invoices in GSTR-1 and GSTR-3B.

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Advantages of GSTR-3B vs GSTR-1 Tax Comparison
Report

 Download GSTR-1 and GSTR-3B anytime across months and upload sales ledgers to

start comparing data. Verify GST login once using OTP, and continue to easily update

data in a click, anytime and anywhere.

 Check the difference for every field such as outward tax, outwardtaxable value, supplies

under RCM in both returns, etc.

 Data comparison at a PAN and GSTIN level is available.

 Know the differences instantly at a monthly, quarterly, or annual level, to take further

action.

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Repercussion on not filling ITR

The ITR filing deadline has been extended twice, first from the usual July 31, 2021, to

September 30, and then eventually, to December 31. Note that the last date for filing belated

ITR for FY 2020-2021 i.e. AY2021-2022 is March 31, 2022. For the uninitiated, AY i.e.

Assessment Year is the year post financial year (FY) where your income is assessed and

evaluated.

While the due date i.e. December 31 indicates the day seller can file income tax returns without

paying any penalty charges or foregoing any benefits, the last date i.e. March 31 is the final

day seller can file ITR with the IT department, after paying the relevant fine and fees.

In the event seller miss out on filing your returns today, seller will haveto pay a maximum fine

of Rs 5,000, a substantial reduction from the

earlier levy of Rs 10,000. This is applicable in case income is above Rs 5,00,000. If

seller/individual income ranges up to Rs 5,00,000, seller/individual will only be required to

pay Rs 1,000 as a fine for filing ITR after December 31. But, if seller/individual annual

income does not fall in the taxable category, seller/individual will not be charged any penalties.

The midnight of 31st December is the due date only for individual taxpayers whose accounts

are not required to be audited.

A seller can still file your returns under ‘belated returns’, under section 139 (4) of the Income

Tax Act, 1961. Here is a list of financial implications you will have to face:

Payment of penal interest on unpaid tax liability, if any. This amount, payable by assesses will

increase proportionately to the delay. seller/individual will also have to forego any interest

on refund ofexcess taxes seller/individual have paid for the delay period.
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Seller/individual will not be able to set off losses against your current year's income if v fails

to file the ITR before midnight today.

Significantly, seller/individual will not be able to carry forward any losses despite timely

payment of all past taxes. This includes losses from business and profession, short-term or long-

term capital losses or

any other losses. The only exception here is the loss from house property up to an amount of

Rs.2 lakh.

For carrying forward the losses, it is compulsory that seller/individual file all taxes before the

due date. Notably, taxpayers can carry forward their short and long-term capital losses to a

maximum of 8 assessmentyears immediately after the AY in which the loss was evaluated.

And in the situation seller/individual don't file income tax returns at all, seller/individual will

be subjected to a penalty that can range anywhere between 50-200 percent of the assessed tax. In

addition, thereis also a provision of prosecution i.e. rigorous imprisonment of up to 7years.

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CHAPTER – 5

CONCLUSION

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FINDINGS

 Found out various financial techniques which helped in

accounting.

 GST return comparison process

 Learned about various financial terminologies used in business.

 Learning about use of tax slabs in GST.

 Graphical analysis of current with previous data.

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LIMITATIONS

 In the auditing of GST return extensive use of paper work is involved.

 There is no specified format to record data entries.

 It takes lot of time to record each entry in the excel format.

 Traders does not follow scheduled date to file return whichincreases work of filling

penalties.

 Businesses does not record all transaction in GST return to savetax.

 Because of heavy traffic on website, it takes lot of time and effortsto download file

from government portal.

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CONCLUSION

 Summer internship in SNGC Tax serve was very helpful for in learning about financial

and management aspect in the organization.

 During SIP I have gained knowledge of GST and how actual auditing is done to find

out frauds done by seller to save tax.

 In this process I came that working in an organization and studying about working in

organization is very different.

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BIBLIOGRAPHY

 Information from company Boucher and from various invoices of clients.

 Reference book: -

Good and service tax, Dr. H.C. Mehrotra & Prof. V.P. Agrawalthe simplified Indian

GST law, CA Prakhar Jain

 Weblinks: -

https://gstcouncil.gov.in/

https://ijcrt.org/

https://www.incometax.gov.in/iec/foportal

https://gstcouncil.gov.in/

https://jgateplus.com/home/

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