CHAPTER 1

EXECUTIVE SUMMARY

1.1) EXECUTIVE SUMMARY

GST is one of the biggest reforms in Indian taxation system in post independent era. It is a reform which has
taken decades to get a shape. It abolished around 15 state and central indirect taxes to bring uniformity in
indirect taxation system. Pre-GST system was a blend of taxes at different levels like central, state, local which
lead to double taxation and confusion in the market. There is a hue and cry are going on about GST in Indian
economic and political scenario. By implementing GST reform in India; it abridges different tax rates in
different states. The motto of GST is “one nation one market one tax” it would make India as a country for
ease of doing business which attracts more foreign investments, and which also leads to growth of economy
by producing lakhs of employment opportunities. In this paper I am going to discuss on evolution of GST tax
from different times to take this shape, composition of GST Council and kinds of taxes in GST, how it shows
it impact on different sectors like manufacture, agriculture and service sector in India.

1.2) INTRODUCTION TO GST

Goods and Services Tax (GST) is an indirect tax (or consumption tax) used in India on the supply of goods
and services. It is a comprehensive, multistage, destination-based tax: comprehensive because it has subsumed
almost all the indirect taxes except a few state taxes. Multi-staged as it is, the GST is imposed at every step in
the production process, but is meant to be refunded to all parties in the various stages of production other than
the final consumer and as a destination based tax, it is collected from point of consumption and not point of
origin like previous taxes.

Goods and services are divided into five different tax slabs for collection of tax - 0%, 5%, 12%, 18% and 28%.
However, petroleum products, alcoholic drinks, and electricity are not taxed under GST and instead are taxed
separately by the individual state governments, as per the previous tax system. There is a special rate of 0.25%
on rough precious and semi-precious stones and 3% on gold. In addition a cess of 22% or other rates on top
of 28% GST applies on few items like aerated drinks, luxury cars and tobacco products. Pre-GST, the statutory
tax rate for most goods was about 26.5%, Post-GST, most goods are expected to be in the 18% tax range.

1
The tax came into effect from 1 July 2017 through the implementation of the One Hundred and First
Amendment of the Constitution of India by the Indian government. The GST replaced existing multiple taxes
levied by the central and state governments.

The tax rates, rules and regulations are governed by the GST Council which consists of the finance ministers
of the central government and all the states. The GST is meant to replace a slew of indirect taxes with a
federated tax and is therefore expected to reshape the country's 2.4 trillion-dollar economy, but its
implementation has received criticism. Positive outcomes of the GST include the travel time in interstate
movement, which dropped by 20%, because of disbanding of interstate check posts.

1.3) GOODS AND SERVICES

A business can be defined as an organisation that provides goods and services to others who want or need
them. So, what are goods and services? Goods are tangible things that are produced, bought or sold, then
finally consumed.

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Look around your home and you will see dozens of examples, from the microwave to the flat-screen television
and Nintendo Wii console. Services are activities that other people or businesses do for you. When you book
a holiday, visit the hairdresser or eat in a restaurant you are consuming one or more services. Services are
sometimes referred to as intangible, in the sense that you can’t touch or handle them. Most businesses provide
a service rather than make goods.

MEANING OF GOODS

Under GST ‘goods’ have been defined as every kind of movable property other than money and securities but
includes actionable claim, growing crops, grass and things attached to or forming part of the land which are
agreed to be severed before supply or under a contract of supply.

Goods are generally tangible. They can be possessed, stored, delivered, transferred, bought and sold. Services
are generally intangible. However, some intangibles, like electricity, trademark, copy right, technical know-
how have also been interpreted by Courts as ‘goods’ as they are capable of being possessed, stored, delivered
etc. On the other hand, some services can also be tangible e.g. a pre-paid card with talk time.

MEANING OF SERVICES

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Service means anything other than goods, money and securities but includes the use of money or its conversion
by cash or by any other mode, from one form, currency or denomination, to another form, currency or
denomination for which a separate consideration is charged. Any Service which is defined as Taxable Services
comes under GST. As per previous Service Tax act all service including housekeeping comes under the act.

1.4) MEANING OF TAX

A tax is a compulsory financial charge or some other type of levy imposed upon a taxpayer (an individual
or legal entity) by a governmental organization in order to fund various public expenditures. A failure to pay,
along with evasion of or resistance to taxation, is punishable by law. Taxes consist of direct or indirect
taxes and may be paid in money or as its labor equivalent. The first known taxation took place in Ancient
Egypt around 3000–2800 BC.

Most countries have a tax system in place to pay for public, common or agreed national needs and government
functions. Some levy a flat percentage rate of taxation on personal annual income, but most scale taxes based
on annual income amounts. Most countries charge a tax on an individual's income as well as on income.
Countries or subunits often also impose wealth taxes, inheritance taxes, estate taxes, gift taxes, property
taxes, sales taxes, payroll taxes or tariffs.

In economic terms, taxation transfers wealth from households or businesses to the government. This has effects
which can both increase and reduce economic growth and economic welfare.

4
DIFFERENT TYPE OF TAXES

Prevalence of various kinds of taxes is found in India. Taxes in India can be either direct or indirect. However,
the types of taxes even depend on whether a particular tax is being levied by the central or the state government
or any other municipalities. Following are some of the major Indian government are:

1. Direct Taxes:
It is names so because it is directly paid to the union government of India. As per a survey, the Republic of
India has witnessed a consistent rise in the collection of such taxes over a period of past years. The visible
growth in these tax collections as well as the rates of taxes reflects a healthy tax along with better
administration of taxation. To name a few of the direct taxes, which are imposed by the Indian government
are:
• Banking cash Transaction Tax.
• Corporate Tax.
• Capital Gains Tax.
• Double Tax Avoidance treaty.
• Fringe Benefit Tax.
• Securities Transaction Tax.

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2. Indirect Taxes:
As opposed to the direct taxes, such a tax in the nation is generally levied on some specified services or some
particular goods. An indirect tax is not levied on any particular organization or an individual. Almost all the
activities, which fall within the periphery of the indirect taxation, are included in the range starting from
manufacturing goods and delivery of services.
Usually, the indirect taxation in the Indian Republic is a complex procedure that involves laws and regulations,
which are interconnected to each other. These taxation regulations even include some laws that are specific to
some of the states of the country. The organizations offer services in all or most of the related fields, some of
which are as follows:
• Anti-Dumping Duty
• Custom Duty.
• Excise Duty.
• Sales Tax.
• Service Tax.
• Value Added Tax.

3. Local Taxes in India:

The most known tax, which is levied by the local municipal jurisdictions on the entry of goods, is known as
the Entry Tax or the Doctor Tax.

4. Income Tax
Income tax in India includes all income except the agricultural income that is levied and collected by the
central government. This particular income is also shared with the states. The income tax was incorporated in
India from the year 1860.
However, after many alterations, finally with the Indian Income-tax Act, 1922, there was a revolutionary
change brought by the All India Income Tax Committee. The significant as after this the administration of the
Income Tax came under the direct control of the central Government. This act got amended again in the year
1961, and the present Income Tax regime in India is still following the provisions of the act of 1961.

5) Consumption Tax:
Consumption Tax is applicable on the consumption of any type of goods or service. This particular tax is based
on consumption and not on income. The consumption Tax can be regarded as a sales tax, as this tax is also
regressive in nature like the other pure sales taxes.

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 CHAPTER 2

INTRODUCTION TO DIPESH BHUTAK & ASSOCIATES

We are prominent Chartered Accountants in India. We offer services in Mumbai and other major cities in
India, like accounts outsourcing, auditing, company formation in India, Business taxation, corporate
compliance, starting business in India, registration of foreign companies, transfer pricing, tax due diligence,
taxation of expatriates etc.

HOW WE ARE DIFFERENT!

Dipesh Bhutak & Company is a team of distinguished chartered accountant, corporate financial advisors
and tax consultants in India. Our firm of chartered accountants represents a coalition of specialized skills that
is geared to offer sound financial solutions and advices. The organization is a congregation of professionally
qualified and experienced persons who are committed to add value and optimize the benefits accruing to
clients.

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2.1) SERVICES OFFERED

CORPORATE SERVICES: -

• Incorporation of company.
• Consultancy on Company Law matters.
• Planning for Mergers, Acquisitions, De-mergers, and Corporate re-organizations.
• Filing of annual returns and various forms, documents.
• Clause 49 review for compliance with fiscal, corporate and tax laws.
• Secretarial Matters including share transfers.
• Maintenance of Statutory records.
• Consultancy on Public/Rights/Bonus Issue of shares.
• Change of Name, Objects, Registered Office, etc.

TAX DEDUCTED AT SOURCE (TDS): -

• Advice on all matters related to compliance of TDS/TCS provisions.

• Obtaining Tax Deduction Account Number (TAN).
• Periodic review of TDS/ Withholding Tax compliance.
• Computation of monthly TDS.
• Monthly reconciliation of TDS due and deposited.
• Monthly deposit of TDS electronically/manually.
• Issue of monthly/annual TDS certificates.
• Filing of quarterly E-TDS/Manual Returns.
• Filing of Correction Statements.
• TDS assessment.

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AUDIT: -

• In-depth study of existing systems, procedures and controls for proper understanding. Suggestions for
improvement and strengthening.
• Ensuring compliance with policies, procedures and statutes.
• Comprehensive review to ensure that the accounts are prepared in accordance with Generally Accepted
Accounting Policies and applicable Accounting Standards/IFRS.
• Checking the genuineness of the expenses booked in accounts.
• Reporting inefficiencies at any operational level.
• Detection and prevention of leakages of income and suggesting corrective measures to prevent
recurrence.
• Certification of the books of account being in agreement with the Balance Sheet and Profit and Loss
Account.
• Issue of Audit Reports under various laws.

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INCOME TAX: -

• Consultancy on various intricate matters pertaining to Income tax.

• Effective tax management, tax structuring and advisory services.
• Tax Planning for Corporates and others.
• Designing / restructuring salary structure to minimize tax burden.
• Obtaining Advance tax Rulings.
• Obtaining No Objection Certificates from Income tax department.
• Obtaining PAN for assesses, employees etc.
• Advance tax estimation and deposit.
• Assessing the liability towards deferred taxes.
• Providing regular updates on amendments, circulars, notifications & judgments.
• Filing Income Tax and Wealth Tax returns for all kinds of assesses.
• Filing Income tax returns for employees of corporate clients.
• Liaison with Income tax department for rectification, assessment, obtaining refunds etc.
• Expertise in complicated direct tax assessments.
• Filing and pleading appeals under various provisions of IT Act.
• Special expertise in search, seizure and prosecution litigation.
• Advice on future tax implications in respect of the potential acquisition.
• Opinions on the various Double Tax Avoidance Agreement related issues.
• Settlement of various issues raised under FEMA.

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GST RETURN

Goods and Services Tax (GST) is an indirect tax (or consumption tax) used in India on the supply of goods
and services. It is a comprehensive, multistage, destination-based tax: comprehensive because it has subsumed
almost all the indirect taxes except a few state taxes. Multi-staged as it is, the GST is imposed at every step in
the production process, but is meant to be refunded to all parties in the various stages of production other than
the final consumer and as a destination based tax, it is collected from point of consumption and not point of
origin like previous taxes.

BENEFITS OF OUTSOURCING

• Enables business to concentrate on core business activities.

• Use of manpower for more important functions.
• Investment in fixed assets reduced/minimized.
• Substantial Savings in Cost.
• Services of experts made available.
• Improved Internal Controls.
• Enhanced reporting capabilities to provide more timely and accurate financial data.
• Off-site Backup of Data.

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PAYROLL: -

• Preparation of Monthly Salary Sheet.

• Deductions as per applicable laws like Income Tax, Provident Fund, and Professional Tax etc.
• Computation and deposit of TDS, ESI, PF etc.
• Disbursement/ Online Payment of Salary.
• Pay slip by password protected e-mail.
• Reimbursement of telephone, medical bills etc.
• Issue of Form 16 to employees.
• Periodic Reconciliation of payments/statutory deductions etc. with books of accounts.

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 CHAPTER 3

OBJECTIVES AND STATEMENT

The main objectives of accounting are maintaining a complete and systematic record of all transactions and
analyzing the financial position of a business. Every individual or a business concern is interested to know the
results of financial transactions and their results are ascertained through the accounting process.

The main objectives were:

1. GST Filling.

2. Creation of values and accountability.

3. Identification and recording of transactions.

4. Ascertainment of results.

5. Keeping accounts of cash.

6. Control over assets and liabilities.

7. Controlling money defalcation and cost.

8. Helping tax fixation.

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 CHAPTER 4

GOODS AND SERVICE TAX

WHAT IS GST?

The goods and services tax (GST) are a value-added tax levied on most goods and services sold for domestic
consumption. The GST is paid by consumers, but it is remitted to the government by the businesses selling
the goods and services. In effect, GST provides revenue for the government.

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4.1) MEANING OF GST

Clauses 366 (12A) of the constitution Bill defines GST as “goods and service tax” means any tax on supply
of goods, or services or both except taxes on the supply of the liquor for human consumption.

Further the clause 366 (26A) of the Bill defines Services means anything other than Goods. Thus, it can be
said that GST is a comprehensive tax levy on manufacture, sale and consumption of goods and services at a
national level. The proposed tax will be levied on all transactions involving supply of goods and services,
except those which are kept out of its preview.

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Purpose of GST:
The Two Important Purposes of GST are followings:

Single Umbrella Tax Rate:

GST shall replace a number of indirect taxes being levied by union and state government.

Removing Cascading Effect:

GST is intended to remove Tax on Tax Effect and provides to common national market for Goods and
Services.

Types of Categories under GST rate:

The GST tax is levied based on Revenue Neutral Rate. For the purpose of imposing GST tax in India, the
goods and services are categorized in to four.

These are four categories of goods and services are follows:

Exempted Categories under GST in India:

The GST and council and other GST authorities notifies list of exempted goods. Such goods are not fallen
under payment of GST tax. The authorities may modify or amend the list time to time by adding deleting any
item if required by notification to public.

Essential Goods and Services for GST in India:

Essential Category of goods and services are charged very lower GST rate. Essential goods and services are
the goods and services for necessary items under basic importance.

Standard Goods and services for GST in India:

A major share of GST taxpayers falls under this category of Standard Goods and Service. A Standard rate is
charged against the goods and services under this category.

Special Goods and Services for GST tax Levy:

Under special category of goods and services, GST rates would be high. Precious metals including luxury
items of goods and services fall under special goods and services for GST rate implementations.

4.2) HISTORY OF GST IN WORLDS

Goods and Service also known as the value added tax (VAT) or Harmonized sales tax. Following are some
16
successfully implemented GST models in other countries:

France:

a. Rate of GST 19.6%

b. France was the first country to introduced GST in 1954.

Worldwide, almost 150 countries have introduced GST in one or the other form since now. Most of the
countries have a unified GST System. Brazil and Canada follow a dual system vis a vis India is going to
introduce. In china, GST applies only to goods and the provisions of repairs, replacements and processing
services.

Australia:

a. Rates of GST 10%

b. GST is administrated by the tax office on behalf of the Australian Government and is appropriated to the
states and territories.

c. Every company whose turnover exceeds $ 75000 is liable for registration under GST and in default 1/11 th
of the income and some amount is form of penalty.
Canada:

a. GST is imposed at 5% in Part ix of the excise tax act. GST is levied on goods and service made in Canada
except items that are either exempt or zero rated.

b. When a supplier makes a zero-rated supply, he is eligible to recover any GST paid on purchases but the
supplier who makes a supply of exempt goods he is not eligible take input tax credit

SINGAPORE
a. The current GST rate in Singapore is 7%. GST-registered businesses are required to charge and account for
GST at 7% on all sales of goods and services in Singapore unless the sale can be zero-rated or exempted under
the GST law.

CHINA
a. Rates of GST 19%

b. GST is administrated by the tax office on behalf of the China Government.

COUTRY WORKING TOWARDS VAT AND GST SYSTEM: -

17
Afghanistan, Bahamas, Bhutan, Kiribati, Marshall Islands, Micronesia, Palau, Sao Tome and Principe, Syria
Gulf Cooperation Council (Bahrain, Kuwait, Qatar, Saudi Arabia, Oman and the United Arab Emirates)

4.3) HISTORY OF GST IN INDIA

• Amaresh Baghchi Report, 1994 suggests that the introduction of Value Added Tax will act as root for
implementation of Goods and Service Tax in India.
• Ashim Dasgupta, 2000 empowered committee, which introduces VAT system in 2005, which has
replaced old age taxation system in India.
• Vijay Kelkar Task Force 2004, it strongly recommended that the integration of indirect taxes into the
form of GST in India.
• Announcement of GST to be implemented by 1st April 2010 After successfully implementation of VAT
system in India and suggestion various committees and task forces on GST, the union government first
time in union budget 2006-07 announced that the GST would be applicable from 1st April 2010.
• The Government has formed various joint working groups of state finance ministers to study the impact
of GST various states.
• The empowered committees of state finance ministers after various meetings reached on amicable
formula for implementation of GST in India.
• Task force of finance ministers has submitted their report in December 2009 on structure of GST in
India.
• In August 2013 Standing committee on Finance tabled its report on GST Bill.
• In December 2014 revised constitution Amendment bill was tabled in Parliament.

• On June 14, 2016, the ministry of finance released draft model law on GST in public domain for views
and suggestions.
• GST bill passed in Rajya Sabha on 3rd August 2016 the constitution amendment (122nd) bill 2014 was
passed by Rajya Sabha with concern amendments.
• In 2017 – Four GST related bills become act to following Presidents assent and passage in parliament:
a. Central GST Bill.
b. Integrated GST Bill.
c. Union Territory GST Bill.
d. GST (compensation to states) Bill
• In 2017 GST Council finalizing the GST Rules and GST Rates.
• When GST is Applicable – Modi Govt. Want to applicable GST Bill from 1st July 2017, Due to some
18
 legal Problems GST Bill is not applicable before 1st July 2017.

4.4) THE HIMACHAL PRADESH GOODS AND SERVICES TAX ACT, 2017

Definitions-In this Act, unless the context otherwise requires

• “actionable claim” shall have the same meaning as assigned to it in section 3 of the Transfer of Property
Act, 1882, (4 of 1882.);
• “address of delivery” means the address of the recipient of goods or services or both indicated on the
tax invoice issued by a registered person for delivery of such goods or services or both;
• “address on record” means the address of the recipient as available in the records of the supplier;
• “adjudicating authority” means any authority, appointed or authorized to pass any order or decision
under this Act, but does not include the Commissioner, Revision Authority, the Authority for Advance
Ruling, the Appellate Authority for Advance Ruling, the Appellate Authority and the Appellate
Tribunal;
• “agent” means a person, including a factor, broker, commission agent, arcadia, del credere agent, an
auctioneer or any other mercantile agent, by whatever name called, who carries on the business of
supply or receipt of goods or services or both on behalf of another;
• “aggregate turnover” means the aggregate value of all taxable supplies (excluding the value of inward
supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of
goods or services or both and inter-State supplies of persons having the same Permanent Account
Number, to be computed on all India basis but excludes Central tax, State tax, Union territory tax,
integrated tax and Cess;

• “agriculturist” means an individual or a Hindu Undivided Family who undertakes cultivation of land:
a. by own lab our, or
b. by the lab our of family, or
c. by servants on wages payable in cash or kind or by hired lab our under personal supervision
or the personal supervision of any member of the family;
• “Appellate Authority” means an authority appointed or authorized to hear appeals and referred to in
section 107;
• “Appellate Tribunal” means the Goods and Services Tax Appellate Tribunal referred to in section 109;
• “appointed day” means the date on which the provisions of this Act shall come into force.
• “assessment” means determination of tax liability under this Act and includes self-assessment, re-
assessment, provisional assessment, summary assessment and best judgment assessment;
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 • “associated enterprises” shall have the same meaning as assigned to it in section 92A of the Income-
tax Act, 1961, (43 of 1961).
• “audit” means the examination of records, returns and other documents maintained or furnished by the
registered person under this Act or the rules made there under or under any other law for the time being
in force to verify the correctness of turnover declared, taxes paid, refund claimed and input tax credit
availed, and to assess his compliance with the provisions of this Act or the rules.
• “authorized bank” shall mean a bank or a branch of a bank authorized by the Central Government to
collect the tax or any other amount payable under this Act;
• “authorized representative” means the representative as referred to under section 116;
• “Board” means the Central Board of Excise and Customs constituted under the Central Boards of
Revenue Act, 1963, (54 of 1963);
• “business” includes: -
a. any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar
activity, whether or not it is for a pecuniary benefit;
b. any activity or transaction in connection with or incidental or ancillary to sub clause;
c. any activity or transaction in the nature of sub-clause, whether or not there is volume,
frequency, continuity or regularity of such transaction;
d. supply or acquisition of goods including capital goods and services in connection with
commencement or closure of business;
e. provision by a club, association, society, or any such body (for a subscription or any other
consideration) of the facilities or benefits to its members;
f. admission, for a consideration, of persons to any premises;

4.5) RECENT GST SLAB RATES

GOODS

S.NO Items New Old

Rate rate

1 Rakhi (other than that of precious or semi-precious material) Nil 18%

2 Sanitary Napkins Nil 12%

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3 Circulation and commemorative coins Nil 5%

4 Raw material for broom Nil 12%

5 Stone/Marble/Wood Deities Nil 5%

6 Sal leaves and its products Nil 18%

7 Khali dona Nil 18%

8 Coir pith Compost Nil 5%

9 Chenille fabrics and other fabrcis under 5801 5% 12%

10 Handloom dari 5% 12%

11 Phosphoric Acid (fertilizer grade only) 5% 12%

12 Handmade Carpets, Textile Floor, Coverings 5% 12%

13 Knitted cap/topi having retails sale value exceeding Rs. 1000 5% 12%

14 Kota Stones and Similar Stones (other than polished) 5% 18%

15 Ethanol for sale to oil marketing companies for blending with fuel 5% 18%

16 Solid Biofuel pellets 5% 18%

17 Marine Engine 5% 28%

18 Bamboo Flooring 12% 18%

19 Hand Operated Rubber Roller 12% 18%

21
20 Brass Kerosene Pressure Stove 12% 18%

21 Zip and Slide Fastener 12% 18%

22 Handicrafts (Excluding handmade) 12% 18%

23 Handbags including pouches and purses; jewellery box 12% 18%

24 Fuel Cell vehicle 12% 28%

25 Televisions upto 68 cm 18% 28%

26 Glaziers’ putty, grafting putty, resin cements 18% 28%

27 Refrigerators, freezers, water cooler, milk coolers, ice cream freezer 18% 28%

28 Washing Machines 18% 28%

29 Food Grinders & mixer 18% 28%

30 Vacuum Cleaners 18% 28%

31 Paints and Varnishes (including enamels and lacquers) 18% 28%

32 Shavers, Hair Clippers 18% 28%

33 Hair Cleaners 18% 28%

34 Storage water heaters 18% 28%

35 Immersion heaters 18% 28%

36 Hair Dryers, Hand Dryers 18% 28%

22
 37 Electric Smoothing irons 18% 28%

38 Scent Sprays 18% 28%

39 Toilet Sprays 18% 28%

40 Pads for application of cosmetics or toilet preparations 18% 28%

41 Lithium-ion batteries 18% 28%

42 Powder Puffs 18% 28%

43 Special purpose motor vehicles 18% 28%

44 Work Trucks (Self-propelled, not fitted with lifting or handling 18% 28%
equipment)

45 Trailers & Semi trailers 18% 28%

Recent GST Rate Changes on Services

SERVICES

Rate Change

Services New GST Rates Old GST Rates

Supply of e-books 5% 18%

Supply of Multimodal Transportation 12% Nil

4.6) ADVANTAGES OF GST

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 • GST eliminates the cascading effect of tax.

• Higher threshold for registration.

• Composition scheme for small businesses.

• Simple and easy online procedure.

• The number of compliances is lesser.

• Defined treatment for E-commerce operators.

• Improved efficiency of logistics.

• Unorganized sector is regulated under GST.

4.7) DISADVANTAGE OF GST

• Increased costs due to software purchase.

• Being GST-compliant.

• GST will mean an increase in operational costs.

• GST came into effect in the middle of the financial year.

• GST is an online taxation system.

• SMEs will have a higher tax burden.

4.8) PROBLEM FACED AT TIME OF IMPLEMENTATION OF GST

Technical GST Issues for Indian Taxpayers

Goods and services tax are currently going under tremendous pressure to go through some of the burning and
solution seeking problems of the year-old implemented indirect tax regime. The finance ministry, as well as
the GST council, needs to take care of the GST return filing issues and forms related consequences which have
to be faced by the taxpayers alike.

Let us discuss and find those priority topics of GST on which the GST council and the finance ministry must
work immediately:

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September Return Due Dates

It might be wrong to the taxpayers as they cannot claim the ITC before matching the invoice, for the date being
shortened of October 20th. Also, the credit of ITC claimed or unclaimed is to be claimed or reversed according
to the filing dates, so the dates must be extended.

Annual GSTR Form Utility

There is no proper guide about GSTR 9 annual return form which is due for 30th November and with no
solutions such as Invoice Addition, modification, etc. it is hard for the taxpayers to file the return.

Credit Reversal

The credit claimed on the purchases in which the payment has not been given to the suppliers within the 180
days must be reversed. And to keep note of this thing may indulge an extra burden on the organization.

No Option for Extra Tax Paid and Refund Challan

If in case the taxpayer had paid excess taxes, there is no option to correct the paid challan and problems coming
in the claim of refund.

GSTR 2A Availability

As the annual GSTR 2A can’t be downloaded and has to be filed monthly, this has created difficulties to match
the returns with the books of accounts with 2A returns.

Agricultural Commission Agent & Joint Development Agreement Issues

The tax liability has to be paid on the commission according to the taxable goods but when the goods are rated
NIL and the commission is not taxable therefore making it an issue for builders and landlord taxation liability.

GSTR 3B Issues

Under this return type, there is no modification or amendment facility available and in case the changes are to
be made then there is a lengthy one-month period time for the amendment making it interest liability issue.

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GSTR 1 Issues

It is worthy to note that the credit note/debit note or B2C sales made cannot be modified again in the GSTR 1
making it a serious task while filing.

Issues in TRAN 1 form

There will be issues in the Trans 1 notice in Form 603 as it is now sent by the department to everyone making
it a trouble for the real taxpayers. As the notice requires all the previous records to be available making it a
tiresome issue for the taxpayer to provide the details again.

Some Other Important GST Issues

Some Pertinent Issues for Small Traders

GST implies additional operational costs for Small businesses. In a developing country like ours, not all SMEs
will be able to afford the cost of computers and accountants required to implement GST (make bills and file
tax returns). 28% GST rate on some products like plywood, automobile parts, and electronic items forces
potential buyers to opt for unregistered dealers.

It is too difficult to assign MRP to handmade products like local shoes, Banarasi Sarees, etc. Most small
artisans are illiterate and therefore unable to write MRP on their products and/or do any paperwork. Dealers
are confused how to rates of such products.

Small businesses that have a small turnover and need not pay GST face trust issues. Buyers demand bills from
even those sellers who are exempted from GST. Without proof of certificate of GST exemption, small shop
owners find themselves stranded and immobile.

Issues for E-commerce Companies

E-commerce giants like Flipkart, Amazon also have not escaped the aftereffects of GST rollout. TCS has to
be collected by the e-commerce companies from the sellers at the time of payment.

The capital blockage will hamper day to day operational cost due to TCS provisions. The GST council has
fixed the 1 percent TCS over the deduction made while payment to the sellers.

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E-way Bill and Interstate Trade

E-way bill had the potential to liberate interstate trade from all sorts of obstructions. The excitement could be
felt among the slightly nervous business community. But on the day when the Finance Budget 2018 was being
introduced to the Lower House, the lethargic GST network turned to be a major spoilsport and February 1
turned out to be a watershed moment for the upbeat government. The inability of the network to handle large
volume e-way bill requests was at the forefront of public jokes and disappointment. Immediately e-way bill
was rolled back. In the aftermath of the failure, goods carrying vehicles were left stranded and highways
enjoyed pin drop silence for a few hours. The crumbling GST network has been in the spotlight from the very
beginning and it continues to garner unwanted criticism and public grievances.

The GST Council need to find permanent scalable solutions rather than interim ones like the GSTR-3B. The
sloppy GSTN Network raises serious concerns over the Government’s claim of a digital powered economy.
GSTN is managed by Infosys, a premier IT services company. The e-way bill network was managed by the
venerated NIC.

The GST E-way bill is a major concern for most of the companies which are regularly into the business of
transporting goods and sending material over the locations, the transport company is also trying to figure out
how it would deal with the GST E-way bill provisions. As soon the bill expires the transport company or the
trucker himself has to generate the GST E-way bill on his own. The GST Council must have taken all these
concerns into strict consideration and ensured easy and simple e-way bill generation procedure which has been
effective from April 1, 2018

Evaders Bonanza

The consistent policy rollbacks and amendments, powered by the glitchy GSTN Network, have enabled
massive tax evasion. The benevolent composition scheme, as well as windows for filing quarterly returns,
raise concerns about the intention and execution prowess of the government at the center. The increased pool
of registered taxpayers has had little but no impact on Revenue generation. Only 70% of taxpayers file returns
regularly. A major headache is, however, the mismatch between initial and final returns filed by taxpayers.
There is an estimated mismatch of Rs 34,000 crore tax liabilities reported in GSTR-1 and GSTR-3B.

The present GST structure has no mechanism for checking discrepancies found between GST Returns for July-
Dec and Final Returns. About 84 % of the taxpayers were unable to correctly report revenue statements. The
discrepancies and e-way bill failure demand that the GST Council now needs to take rigorous measures to
tackle the menace of tax evasion through under-invoicing.

27
GST and Fiscal Fractures

The GST revenue shortfall promises large dents in the Centre and states’ fiscal applecart. The Center and State
budgets will be pegged down by the gap in Tax revenue. The common man will find himself on the receiving
end if such gap in revenue continues. To bring states on the same wavelength and approve GST, the
government had offered state compensations to the tune of Rs 60,000 crore for July to March in FY18. In order
to stay true to its pre-GST promises, it is estimated the Central Government will have to make payment to the
tune of Rs 90,000 crore further in FY19.

Understandably, the Budget 2018 unleashed record taxation of over Rs 90,000 crore in the form of capital
gains tax, increase in customs duty, Cess and surcharge. The fall in revenue has further made states
apprehensive about bringing petroleum products and real estate under the GST ambit.

Adapting to IT Ecosystem is Hard

Indian economy is majorly driven by small business units i.e SMEs. It will be unfair to expect small-scale
business firms to make the transition to an online IT platform and expect no errors in return filing. It is an
uphill task for the majority of our working population which has little hands-on experience with IT solutions.
The cost of SRP deployment is a major concern for micro-small-medium scale enterprises.

The Confusion

For a frictionless and less burdened GST, the government is looking to shore up revenues to the tune of Rs 1
lakh crore per month. It would be interesting to see if the Government still the courage has to take stern
measures against tax evaders and other business firms involved in anti-profiteering activities. The GST was
projected as India’s second tryst with destiny. However, the financial budget of 2018 has thrown a wide
plethora of taxes at the Indians to gobble up. Increased taxation it seems is the only way of generating
operational revenues for a complex system like GST in the nonlinear Indian Demographics.

4.9) TYPES OF GST IN INDIA

India is currently going through major reforms in its overall economic sectors. The growth trajectory of India
is so high that it is poised to become the third-largest economy of the world by 2030. Government is taking
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significant initiatives to boost the overall economic growth of the country. Introduction to GST and its 3 types-
CGST, SGST, IGST AND UTGST are effectively supporting such major economic development programs.

GST stands for Goods and Services Tax. It is considered as the biggest taxation reform in the history of Indian
economy. It will subsume multiple taxes like VAT, Service Tax, CST, excise and additional excise duty,
entertainment and luxury tax, etc. It is a single uniform taxation system which will help in eliminating time,
cost and effort.

GST is introduced in the parliament as The Constitution Amendment Act 2016 and it is regulated by the Union
Finance Ministry of India. It is a consumption-based tax levied on the supply of goods and services which
mean that it will be imposed at each stage of sale or purchase of goods or services based on the input tax credit
method.

GST will transform Indian economy turning it into one common market based on a uniform taxation system.
It will enhance the ease of doing business in India. Industries will make substantial savings in terms of logistics
and supply chain due to GST. Some companies will benefit more as the GST rate will be lower than the current
taxation. On the other hand, few sectors will have to pay more tax as GST will replace the old taxes uniformly,
which may increase the rate respectively.

The overall impact of GST on India’s economy is expected to be positive. As GST will be applicable from
July 2017, industries and business organizations have already started to create future strategies. Both the
central as well as the state government are focusing on regulating GST and major changes are being made in
the organized monetary framework. Government has joined hands with the National Securities Depository
Limited (NSDL) and together they have created Goods and Services Tax Network (GSTN). It’s a non-
government firm which will provide IT infrastructure services to the central and state governments,
stakeholders and taxpayers for proper implementation and regulation of GST.

29
Indian economy is highly diverse due to numerous industries operating in different sectors having the different
location, supply chain and target consumers. To understand the detailed impact of GST, let’s discuss its three
types-

1. Central Goods & Service Tax (CGST)

As per the Central Goods & Services Tax Act 2016, CGST is the centralized part of GST that subsumes the
present central taxations and levies- Central Sales Tax, Central Excise Duty, Services Tax, Excise Duty under
Medical & Toiletries Preparation Act, Additional Excise Duties Countervailing Duty (CVD), Additional
Custom Duty and other centralized taxations. CGST is applicable on the supply of goods and services of
standard services and commodities which can be amended periodically by a specialized body under the central
government. The revenue collected under CGST belongs to the central government. The input tax is given to
the state governments which they can utilize only against the payment of CGST.

2. State Goods & Services Tax (SGST)

SGST is an important part of GST. It stands for State Goods & Services Tax as per the 2016 GST bill. Various
taxations and levies under the state authority are subsumed by SGST as one uniform taxation. It includes the
amalgamation of State Sales Tax, Luxury Tax, Entertainment Tax, Levies on Lottery, Entry Tax, Octroi and
other taxations related to the movement of commodities.

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 3. Integrated Goods & Services Tax (IGST)

GST focuses on the concept of one tax, one nation. IGST stands for Integrated Goods and Services Tax which
is charged on the supply of commodities and services from one state to another state. For example, if the
supply of goods and services occurs between Gujarat and Maharashtra, IGST will be applicable. Under Article
269A of the Indian Constitution, the inter-state trade and commerce activities that involve the movement of
commodities and services shall be levied with an integrated tax (IGST) under the GST regime. The
Government of India will collect the revenue under IGST. Further changes can be made by the Goods and
Services Tax Council of India.

4. Union Territory Goods & Services Tax (UTGST)

As we have already learned about CGST and SGST which are intra-state taxations and IGST which is inter-
state, the union territories in India are accounted under a specialized taxation called Union Territory Goods
and Services Tax as per the GST regime 2016. It will subsume the various taxations, levies and duties with
one uniform taxation in Union Territories as well. Delhi (India’s Capital Territory), Chandigarh, Dadra &
Nagar Haveli, Andaman & Nicobar Islands, Daman & Diu, Lakshadweep and Puducherry are the prominent
union territories in India. UTGST will account for all the taxations under these union territories in India. The
parliament is looking forward to implementing a separate act to impose and supervise GST in Union Territories
under the name of UTGST act. The bill will be presented in respective union territories for further changes in
the implementation of GST.

HSN CODE: -

India is a member of World Customs Organization (WCO) since 1971. It was originally using 6-digit HSN
codes to classify commodities for Customs and Central Excise. Later Customs and Central Excise added two
more digits to make the codes more precise, resulting in an 8-digit classification. The purpose of HSN codes
is to make GST systematic and globally accepted.

HSN codes will remove the need to upload the detailed description of the goods. This will save time and make
filing easier since GST returns are automated.

If a company has turnover up to INR 15 million in the preceding financial year then they did not mention the
HSN code while supplying goods on invoices. If a company has turnover more than INR 15 million but up to
INR 50 million, then they need to mention the first two digits of HSN code while supplying goods on invoices.
If turnover crosses INR 50 million then they shall mention the first 4 digits of HSN code on invoices.

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4.10) GOODS AND SERVICE TAX NETWORK

WHAT IS GSTN?

The GSTN software is developed by Infosys Technologies and the Information Technology network that
provides the computing resources is maintained by the NIC. "Goods and Services Tax Network" (GSTN) is a
nonprofit organization formed for creating a sophisticated network, accessible to stakeholders, government
and taxpayers to access information from a single source (portal). The portal is accessible to the Tax authorities
for tracking down every transaction, while taxpayers have the ability of connect for their tax returns.

The GSTN's authorized capital is ₹10 crore (US$1.4 million) in which initially the Central Government held
24.5 percent of shares while the state government held 24.5 percent. The remaining 51 percent were held by
non-Government financial institutions, HDFC and HDFC Bank hold 20%, ICICI Bank holds 10%, NSE
Strategic Investment holds 10% and LIC Housing Finance holds 11% .

However, later it was made a wholly owned government company having equal shares of state and central
government.

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4.11) SLAB RATE OF GST

Former finance minister Arun Jaitley said policymakers could merge the 12% and 18% slabs under the goods
and services tax going forward as revenue increases, thereby effectively making it a two-tier tax.
Jaitley suggested in a Facebook post on the second anniversary of the GST roll out. He had opted out of the
new government due to health reasons. The former finance minister, who had led the GST talks with states,
said as many as 20 states were already showing more than a 14% increase in their revenue. These states no
longer require the Centre to compensate them for revenue loss arising out of the GST implementation, he said.

The GST Council chaired by the union finance minister and comprising finance. Under the GST framework,
most items of consumer use have been brought in the 18%, 12% and even 5% category, Jaitley said.
Observing that a sudden reduction of tax rates on all categories of goods could lead to a massive loss of revenue
for the government, leaving it without resources to spend, Jaitley said: “This exercise had to be done in a
gradual manner as the revenue increases”.

After the roll out of the tax system in July 2017, the average monthly GST collection in that fiscal year was
Rs 89,700 crore. In the next year (2018-19), the monthly average increased by about 10% to Rs 97,100 crore.
“The fear of the states today is that for the first five years they get a guaranteed 14% increase. The lurking
doubt is as to what will happen after five years. Every state has been paid its share of tax as also from the
compensation fund, if necessary. We have just completed two years of GST,” Jaitley said.

A single-slab GST is possible only in extremely affluent countries where there are no poor people, he said,
adding that it would be inequitable to apply a single rate in countries where there are a large number of people.
“In the pre-GST regime, the rich and the poor, on various commodities, paid the same tax. The multiple slab
system not only checked inflation, it also ensured that the aam aadmi products are not exorbitantly taxed,” he
said, adding: “A Hawaii chappal and a Mercedes car cannot be taxed at the same rate.”
This, however, is not to suggest that the rationalization of slabs is not needed, he said. “That process is already
on.” The GST system currently has four slabs - 5%, 12%, 18% and 28%. On top of the 28% slab, a Cess is
levied on automobiles, luxury, demerit and sin goods.

33
4.12) PLACE OF SUPPLY FOR GST

PLACE OF SUPPLY OF GOODS

Usually, in case of goods, the place of supply is where the goods are delivered. So, the place of supply of
goods is the place where the ownership of goods changes.

What if there is no movement of goods? In this case, the place of supply is the location of goods at the time of
delivery to the recipient.

For example: In case of sales in a supermarket, the place of supply is the supermarket itself.

Place of supply in cases where goods that are assembled and installed will be the location where the installation
is done.

For example, A supplier located in Kolkata supplies machinery to the recipient in Delhi. The machinery is
installed in the factory of the recipient in Kanpur. In this case, the place of supply of machinery will be Kanpur.

PLACE OF SUPPLY FOR SERVICE

Generally, the place of supply of services is the location of the service recipient. In cases where the services
are provided to an unregistered dealer and their location is not available the location of service provider will
be the place of provision of service.

Special provisions have been made to determine the place of supply for the following services:

• Services related to immovable property

• Restaurant services
• Admission to events
• Transportation of goods and passengers
• Telecom services
• Banking, Financial and Insurance services.

In case of services related to immovable property, the location of the property is the place of provision of
services.

Example 1:

Mr. Anil from Delhi provides interior designing services to Mr. Ajay (Mumbai). The property is located in
Ooty (Tamil Nadu).

In this case, place of supply will be the location of the immovable property i.e. Ooty, Tamil Nadu.

34
Example 2:

A registered taxpayer offers passenger transport services from Bangalore to Hampi. The passengers do not
have GST registration. What will be the place of supply in this case?

The place of supply is the place from where the departure takes place i.e. Bangalore in this case.

VALUE OF GST

Value of supply means the money that a seller would want to collect the goods and services supplied. The
amount collected by the seller from the buyer is the value of supply. But where parties are related and a
reasonable value may not be charged, or transaction may take place as a barter or exchange; the GST law
prescribes that the value on which GST is charged must be its ‘transactional value’.
This is the value at which unrelated parties would transact in the normal course of business. It makes sure GST
is charged and collected properly, even though the full value may not have been paid.

ITC

Input credit means at the time of paying tax on output, you can reduce the tax you have already paid on inputs
and pay the balance amount.

Here’s how-

When you buy a product/service from a registered dealer you pay taxes on the purchase. On selling, you collect
the tax. You adjust the taxes paid at the time of purchase with the amount of output tax (tax on sales) and
balance liability of tax (tax on sales minus tax on purchase) has to be paid to the government. This mechanism
is called utilization of input tax credit.

For example- you are a manufacturer: a. Tax payable on output (FINAL PRODUCT) is Rs 450 b. Tax paid on
input (PURCHASES) is Rs 300 c. You can claim INPUT CREDIT of Rs 300 and you only need to deposit Rs
150 in taxes.

35
Who can claim ITC?

ITC can be claimed by a person registered under GST only if he fulfills ALL the conditions as prescribed.

a. The dealer should be in possession of tax invoice

b. The said goods/services have been received

c. Returns have been filed.

d. The tax charged has been paid to the government by the supplier.

e. When goods are received in installments ITC can be claimed only when the last lot is received.

f. No ITC will be allowed if depreciation has been claimed on tax component of a capital good

How to claim ITC?

All regular taxpayers must report the amount of input tax credit(ITC) in their monthly GST returns of Form
GSTR-3B. The table 4 requires the summary figure of eligible ITC, Ineligible ITC and ITC reversed during
the tax period. The format of the Table 4 is given below:

A taxpayer can claim ITC on a provisional basis in the GSTR-3B to an extent of 20% of the eligible ITC
reported by suppliers in the auto-generated GSTR-2A return.

Hence, a taxpayer should cross-check the GSTR-2A figure before proceeding to file GSTR-3B. A taxpayer
could have claimed any amount of provisional ITC until 9 October 2019. But, the CBIC has notified that from
9 October 2019, a taxpayer can only claim not more than 20% of the eligible ITC available in the GSTR-2A
as provisional ITC.

36
Reversal of Input Tax Credit

ITC can be availed only on goods and services for business purposes. If they are used for non-business
(personal) purposes, or for making exempt supplies ITC cannot be claimed . Apart from these, there are certain
other situations where ITC will be reversed.

ITC will be reversed in the following cases-

1) Non-payment of invoices in 180 days– ITC will be reversed for invoices which were not paid within 180
days of issue.

2) Credit note issued to ISD by seller– This is for ISD. If a credit note was issued by the seller to the HO then
the ITC subsequently reduced will be reversed.

3) Inputs partly for business purpose and partly for exempted supplies or for personal use – This is for
businesses which use inputs for both business and non-business (personal) purpose. ITC used in the portion of
input goods/services used for the personal purpose must be reversed proportionately.

4) Capital goods partly for business and partly for exempted supplies or for personal use – This is similar to
above except that it concerns capital goods.

5) ITC reversed is less than required- This is calculated after the annual return is furnished. If total ITC on
inputs of exempted/non-business purpose is more than the ITC actually reversed during the year then the
difference amount will be added to output liability. Interest will be applicable.

The details of reversal of ITC will be furnished in GSTR-3B. To find out more about the segregation of ITC
into business and personal use and subsequent calculations, please visit our article.

Reconciliation of ITC

ITC claimed by the person has to match with the details specified by his supplier in his GST return. In case of
any mismatch, the supplier and recipient would be communicated regarding discrepancies after the filling of
GSTR-3B. Learn how to go about reconciliation through our article on GSTR-2A Reconciliation. Please read
our article on the detailed explanation of the reasons for mismatch of ITC and procedure to be followed to
apply for re-claim of ITC.

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Special cases of ITC

a. ITC for Capital Goods

ITC is available for capital goods under GST.

However, ITC is not available for- i. Capital Goods used exclusively for making exempted goods ii. Capital
Goods used exclusively for non-business (personal) purposes Note: No ITC will be allowed if depreciation
has been claimed on tax component of capital goods.

b. ITC on Job Work

A principal manufacturer may send goods for further processing to a job worker. For example, a shoe
manufacturing company sends half-made shoes (upper part) to job workers who will fit the soles. In such a
situation the principal manufacturer will be allowed to take credit of tax paid on the purchase of such goods
sent on job work.

38
4.13) TYPES OF GST RETURN

GSTR-1

GSTR-1 is the return to be furnished for reporting details of all outward supplies of goods and services made,
or in other words, sales transactions made during a tax period, and also for reporting debit and credit notes
issued. Any amendments to sales invoices made, even pertaining to previous tax periods, should be reported
in the GSTR-1 return.

GSTR-1 is to be filed by all normal taxpayers who are registered under GST. It is to be filed monthly, except
in the case of small taxpayers with turnover up to Rs.1.5 crore in the previous financial year, who can file the
same on a quarterly basis.

GSTR-2A

GSTR-2A is the return containing details of all inward supplies of goods and services i.e. purchases made
from registered suppliers during a tax period. The data is auto-populated based on data filed by the suppliers
in their GSTR-1 return. GSTR-2A is a read-only return and no action can be taken.

GSTR-2

GSTR-2 is the return for reporting the inward supplies of goods and services i.e. the purchases made during a
tax period. The details in the GSTR-2 return are auto-populated from the GSTR-2A. Unlike GSTR-2A, the
GSTR-2 return can be edited.

GSTR-2 is to be filed by all normal taxpayers registered under GST, however, the filing of the same has been
suspended ever since the inception of GST.

GSTR-3

GSTR-3 is a monthly summary return for furnishing summarized details of all outward supplies made, inward
supplies received, and input tax credit claimed, along with details of the tax liability and taxes paid. This return
is auto-generated on the basis of the GSTR-1 and GSTR-2 returns filed.

GSTR-3 is to be filed by all normal taxpayers registered under GST, however, the filing of the same has been
suspended ever since the inception of GST.

39
GSTR-3B

GSTR-3B is a monthly self-declaration to be filed, for furnishing summarized details of all outward supplies
made, input tax credit claimed, tax liability ascertained, and taxes paid.

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

GSTR-4 / CMP-08

GSTR-4 is the return that was to be filed by taxpayers who have opted for the Composition Scheme under
GST. CMP-08 is the return which has replaced the now erstwhile GSTR-4. The Composition Scheme is a
scheme in which taxpayers with turnover up to Rs.1.5 crores can opt into and pay taxes at a fixed rate on the
turnover declared.

The CMP-08 return is to be filed on a quarterly basis.

GSTR-5

GSTR-5 is the return to be filed by non-resident foreign taxpayers, who are registered under GST and carry
out business transactions in India. The return contains details of all outward supplies made, inward supplies
received, credit/debit notes, tax liability and taxes paid.

The GSTR-5 return is to be filed monthly for each month that the taxpayer is registered under GST in India.

GSTR-6

GSTR-6 is a monthly return to be filed by an Input Service Distributor (ISD). It will contain details of input
tax credit received and distributed by the ISD. It will further contain details of all documents issued for the
distribution of input credit and the manner of distribution.

GSTR-7

GSTR-7 is a monthly return to be filed by persons required to deduct TDS (Tax deducted at source) under
GST.

GSTR-8

GSTR-8 is a monthly return to be filed by e-commerce operators registered under the GST who are required
to collect tax at source (TCS). GSTR-8 will contain details of all supplies made through the E-commerce
platform, and the TCS collected on the same.

The GSTR-8 return is to be filed on a monthly basis.

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GSTR-9

GSTR-9 is the annual return to be filed by taxpayers registered under GST. It will contain details of all outward
supplies made, inward supplies received during the relevant previous year under different tax heads i.e. CGST,
SGST & IGST and HSN codes, along with details of taxes payable and paid. It is a consolidation of all the
monthly or quarterly returns (GSTR-1, GSTR-2A, GSTR-3B) filed during that year.

GSTR-9 is required to be filed by all taxpayers registered under GST*, except taxpayers who have opted for
the Composition Scheme, Casual Taxable Persons, Input Service Distributors, Non-resident Taxable Persons
and persons paying TDS under section 51 of CGST Act.

The 37th GST Council meeting took the decision to make GSTR-9 filing optional for businesses with turnover
up to Rs.2 crore in FY 17-18 and FY 18-19.

GSTR-9A

GSTR-9A is the annual return to be filed by taxpayers who have registered under the Composition Scheme in
a financial year*. It is a consolidation of all the quarterly returns filed during that financial year.

*GSTR-9A filing for Composition taxpayers has been waived off for FY 2017-18 and FY 2018-19 as per the
decision taken in the 27th GST Council meeting.

GSTR-9C

GSTR-9C is the reconciliation statement to be filed by all taxpayers registered under GST whose turnover
exceeds Rs.2 crore in a financial year. The registered person has to get their books of accounts audited by a
Chartered/Cost Accountant. The statement of reconciliation is between these audited financial statements of
the taxpayer and the annual return GSTR-9 that has been filed.

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

GSTR-10

GSTR-10 is to be filed by a taxable person who’s registered has been cancelled or surrendered. This return is
also called a final return and has to be filed within 3 months from the date of cancellation or cancellation order,
whichever is earlier.

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 Chapter 5

Experience in Deepak Bhutak & Associates

The primary task of accountants, which extends to all the others, is to prepare and examine financial records.
They make sure that records are accurate and that taxes are paid properly and on time. Accountants and
auditors perform overviews of the financial operations of a business in order to help it run efficiently. They
also provide the same services to individuals, helping them create plans of action for improved financial well-
being.
On the job, accountants:
• Examine statements to ensure accuracy
• Ensure that statements and records comply with laws and regulations
• Compute taxes owed, prepare tax returns, ensure prompt payment
• Inspect account books and accounting systems to keep up to date
• Organize and maintain financial records
• Improve businesses efficiency where money is concerned
• Make best-practices recommendations to management
• Suggest ways to reduce costs, enhance revenues and improve profits
• Provide auditing services for businesses and individuals

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 CHAPTER 6

CHALLENGES FACED IN DEEPAK BHUTAK & CO

CHALLENGES FACED: -

1. Consent of States
2. Revenue Neutral Rate (RNR)
3. Threshold Limit in GST
4. Extensive Training to Tax Administration Staff
5. Basic Computer Knowledge:
.6. Basic tax and accounts Knowledge:
7. No Work Experience:
8. Less Employee:
9. Co-ordination and Communication:

43
 CHAPTER 7

SUGGESTION

In order to overcome the challenges faced during by me while working is to do proper time management and

keep proper time check on everything. Have proper communicating and co-ordination with your college

there is not to be ashamed of anything by thinking what he will tell, whether question you are asking is silly

or not don’t think any of this thing. By keeping at least basic knowledge of things you are working on. Do

not think that your senior is making you do extra work. And as for my final suggestion give as much time in

firm as you can as this make you or help you learn better.

44
 CHAPTER 8

CONCLUSION

The time spend for internship at a CA Firm were no doubt a source of great learning for me about many things
Particurly working in finance department. This practical project does help me attain loads of knowledge about
the predominant. Functions performed by service providing company. It also helps me to impart a lot of
training as regards the set of behavioral traits which distinguish a particular person. To conclude from the
project one main thing that I learned through this internship is time management Skills as well as self-
motivation. The friendly working environment and clear communication between employees and managers.
This help them to maintain peace at workplace and achieve the organization and individual goals. In review
this internship has been an Excellent and Rewarding experience.

45
 CHAPTER 13

Bibliography

Reports/Periodicals
1. Advisory Group on Tax Policy and Tax Administration for the Tenth Plan (2001), Report of the Advisory
Group on Tax Policy and Tax Administration for the Tenth Plan, Planning Commission, Government of India,
New Delhi.
2. Boothalingam, S. (1967), Report on the Rationalization and Simplification of the Tax Structure, Ministry
of Finance, Government of India, New Delhi.
3. Commission on Centre-State Relations (1988), Report of the Commission on Centre-State Relations
(Chairman: R.S.Sarkaria), Part I, Government of India, New Delhi.
4. Direct Taxes Administration Enquiry Committee (1959), Report of the Direct Taxes Administration Enquiry
Committee, Ministry of Finance, Government of India, New Delhi.
5. Direct Taxes Enquiry Committee (1971), Final Report of the Direct Taxes Enquiry Committee, Ministry of
Finance, Government of India, New Delhi.
6. Direct Taxes Law Committee (1977), Report of the Direct Taxes Law Committee, Ministry of Finance,
Government of India, New Delhi.
7. Economic Administrative Reforms Commission (1983), Report of the Economic Administrative Reforms
Commission, Ministry of Finance, Government of India, New Delhi.
8. Government of India, All India Income Tax Statistics, Ministry of Finance, New Delhi.
9. Government of India, The Constitution of India, New Delhi.
10. Government of India, Comptroller and Auditor General: Report on Union Government Revenue Receipts:
Direct Taxes (various issues), New Delhi.
11. Government of India, Finance Acts (various Years), New Delhi.
12. Government of India, Indian Public Finance Statistics (various issues), New Delhi.
13. Government of India, Reports of Finance Commissions, New Delhi.
14. Government of India, Speeches of Union Finance Ministers, Introducing the Budget (various years), New
Delhi.
15. Indian Tax foundation (2001), Indian tax statistics: 1950-2001, Research wing of Indian tax foundation,
Delhi.

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