Bharati Vidyapeeth

(Deemed to be University)

Pune, India

Institute of Management and Entrepreneurship

Development, Pune

The Study Of Impact of GST on Service Retail sector & ITR

A Summer Training Project Report

Submitted in Partial Fulfillment of the Requirements for the

Award of Degree of

Bachelor of Business Administration

2019 – 2022

Submitted by: Guided by:

Soumya Kankariya Ms.Pallavi Chopade
ROLL NO: 200

DIVISION: B

1
 CERTIFICATE FROM THE COMPANY

PSAC & Associates

Email:carohitkothari11@gmail.com
Contact:9425138772

This is to certify that SOUMYA KANKARIYA daughter of Mr. RISHABH

KANKARIYA pursuing BBA From Institute of Management and
Entrepreneurship Development, Pune has successfully completed the Project
Report in our organization on the topic titled,” KT TRADERS” from 1st August to
30th September 2021. During her project tenure in the organization, we found her
hard working, sincere and diligent person and her behaviour and conduct was
good.

Wish her all the best for her future endeavors .

PSAC & Associates

(Chartered Accountants)
CA Rohit Kothari (Partner)
Place: Balaghat
Date: 15/10/2021
M.No. 413830

2
 CERTIFICATE OF ORIGINALITY

This is to certify that the project report entitled “The Study Of Impact of GST on
Retail Sector & ITR Filing” submitted to Bharati Vidyapeeth (Deemed to be
University), Pune in partial fulfilment of the requirement for the award of the
degree of Bachelor of Business Administration is an original work carried out by
Soumya Kankariya under the guidance of Ms. Pallavi Chopade . The matter
embodied in this project is the genuine work done by Soumya Kankariya to the
best of my knowledge and belief and has not been submitted before, neither to this
University nor to any other University for the fulfilment of the requirement of any
course of study.

3
Signature of the Student Signature of the Guide

Certificate

This is to certify that the project report entitled “ is an academic work done by
Soumya Kankariya and submitted in the partial fulfilment of the requirement for
the award of the degree of BBA from Bharati Vidyapeeth (Deemed to be
University), Pune. It has been completed under the guidance of Ms. Pallavi
Chopade (Faculty Guide). The authenticity of the project work will be examined
by the viva examiner which includes data verifications, checking duplicity of
information etc. and it may be rejected due to non-fulfilment of quality standards
set by the institute.

Dr. Sachin S. Vernekar

Dean FMS, BVDU

4
 Acknowledgement

Apart from my efforts, the success of my project depends largely on the

encouragement and guideline of many others. I take this opportunity to express my
gratitude to the people who have been instrumental in the successful completion of
this project.

I am gratefully indebted to our esteemed guide Ms.Pallavi Chopade for her sincere
guidance and priceless support which would have been impossible for us to
complete this project.

I express my gratitude to the staff members of Bharati Vidyapeeth (Deemed to be

University) who directly or indirectly helped me. I would also like to express my
sincere gratitude to all my office colleagues in PSAC & Associates.

Finally I thank Institute of Management and Entrepreneurship Development

(IMED) for giving me this golden opportunity to do my summer internship in
PSAC & Associates.

Soumya kankariya

5
 Preface

In this era of fast changing world, mere classroom teaching is not sufficient to
attain maturity and perfection for application of theory into practice. The dynamic
economy, political and technological environment in which we live continually
place demand on us to change, improve and learn more about jobs, superiors and
subordinates. Two years of continuous teaching is not sufficient for students to
implement directly their knowledge in the market. A practical approach is needed.

The knowledge through the project repot is an essential requirement for BBA
students. The purpose of this project is to study the financial aspects of an
organization with the special reference to PSAC & Associates.

I have tried my level best to do justice to the project. And I hope the study which
was conducted will help not only to the organization but also me and the society
too.

Soumya kankariya

6
 Table of contents
Sr. No. PARTICULARS PAGE NO.

A Introduction of the topics 8 - 22

• Goods and Service Tax 8

• Impact of GST on Retail sector. 10

• Income Tax & ITR Filing 13

• Audit 21

B PROJECT PART

1. Chapter 1: Introduction 22 - 29

• Overview of organization 23

• Vision 24

• Service offerings 24

• SWOT analysis 28

2. Chapter 2: Research Methodology 29 - 32

• Statement of the Problem 29

• Objective of the study 29

• Managerial usefulness of study 30

• Type of research and research design 31

• Data collection method 31

7
• Limitations of study 32

3. Chapter 3: Conceptual Discussions 33 - 38

• Review of literature 34

• Current issues 35

4. Chapter 4: Data Analysis 37 - 44

• Data Analysis 38

• Overview of Data 38

• Overall Overview 44

5. Chapter 5: My Contribution to the Body of 45

Knowledge

6. Chapter 6: Findings, Conclusion and Suggestions 46

7. Chapter 7: Summary of the project 48 - 53

• Appendix 48

• References 53

INTRODUCTION

8
Goods and Services Tax (GST)

Goods and Services Tax (GST) is an indirect taxation in India merging most of the existing
indirect taxes into single system of taxation. It was introduced as The Constitution (One
Hundred and First Amendment) Act 2016, following the passage of Constitution 122nd
Amendment Bill. The GST is governed by GST Council and its Chairman is Union Finance
Minister of India, Mr. Arun Jaitley. GST is a comprehensive indirect tax on manufacture, sale
and consumption of goods and services throughout India (Except state of Jammu and Kashmir),
to replace taxes levied by the central and state governments.

SGST - State Goods and Services Tax

CGST - Central Goods and Service Tax

IGST - Integrated Goods and Service Tax

GST has 4 tax slabs:-

5% slab 12% slab 18% slab 28% slab

S.No. Class of goods Commodities covered Rate of tax

1. Basic need items Milk, wheat, fruits etc. Nil*

2. Precious metals Gold, diamond, silver etc. 2%-6%

3. Lower rate goods Steel, cement, iron etc. 12%

4. Standard goods Garments, watches etc 18%

9
 5. Luxury goods SUV cars, tobacco, aerated drinks etc. 40%

EXEMPTED GOODS IN GST EXEMPTION LIST

Food

Fruits and vegetables, cereals, meat and fish, potatoes and other edible tubers and
roots, tender coconut, tea leaves, jaggery, coffee beans, ginger, turmeric, milk, curd,
etc.

Raw materials

Silk waste, raw silk, raw jute fibre, unprocessed wool, handloom fabrics, cotton for
khadi yarn, khadi, charcoal, and firewood.

Tools/Instruments

Shovels, spades, agricultural tools, handmade musical instruments, hearing aids, and
tools used by physically challenged individuals.

Miscellaneous

Contraceptives, semen, human blood, vaccines, organic manure, earthen pots,

beehives, live animals (except horses), maps, books, journals, newspapers, non-
judicial stamps, kites, and pooja props.

Note: The above list of exempted goods is listed under GST rules but may be subject
to change as the council suggests. Also, the above mentioned are examples of a few
exempted goods, and more goods qualify for Nil GST.

10
 IMPACT OF GST ON RETAIL SECTOR

Overall Impact of GST in general on Retail Sector

Retail is one of the major industries in India and also one of the largest in the world. The Indian
retail industry is expected to reach 1.3 trillion by 2020 the annual growth rate of 16.7%. GST is
applicable to almost every retail supply, affecting the cost for the consumers. Find out the details
about the impact of GST on Retailers.

• Reduce Multiple Taxes

GST effectively replaces all the multiple indirect taxes being applied to the supply of retail
products. Before GST, retailers had to pay multiple taxes, including VAT, CST, service tax,
excise duty, etc, amounting to around 30% of the product cost. After GST, there is only a single
tax, varying from 12 to 28% on different products. GST also reduces the cascading of taxes as
the credit for input taxes can be now claimed by retailers.

• Input Tax Credit

Unlike the previous tax regime, GST has the provision of input tax credit, in which a retailer can
claim credits for the tax previously paid by him on the purchase of inputs. This not only saves
tax but also it reduces the cascading effect of taxes.

• Reduced Complications

The less number of taxes means less complexity. Also, GST is a completely digital tax system,
that means retailers can plan and file the returns online without having to manage a lot of
physical documents, accounts, etc.

11
• New Promotional Strategies

The new GST tax regimes has forced retailers to re plan and implement a completely new
promotional strategy in sharp contrast to the erstwhile strategy of promotional gifts and items.
This is primarily because under GST all supply channels are accountable and accordingly attract
some tax.

• Ideal for Startups

The Government has already announced tax rebates for entrepreneurs and startups. With GST
getting rid of the complications associated with the retail sector, it is inevitable that budding
startups would tap into this opportunity.

•Effective supply chain

The erstwhile regime of CST and VAT made it almost mandatory to have warehouses and
depots across the country. This led to a situation where the retail sector was incurring significant
expenses on such storehouses. Rentals, maintenance, staff salaries and upkeep of these places
was a task in itself. However, once GST was rolled out, multiple storehouses became redundant
and the industry was finally able to get rid of these additional expenditures.

12
ISSUES FACED BY TAX PAYERS IN GST RETURN FILING
The initial filing of GST returns had witnessed many confusions and need of support
amongst the tax payers. There were many technical error faced in the return filing
process. The following issues were the most faced issues by the tax payers.
• Issues in payments not getting reflected in the Challan payment status.

• Issues regarding delay in refreshing of the “Return Status” option. This had
raised ambiguity amongst the tax payers.
• Issues regarding the wrong details uploaded in the GSTR-3B for which there
was no option of revising the return. This caused in wrong payment of tax
providing unnecessary burden of tax on the tax payer.
• The utilities provided for uploading returns were not fully automated causing
an increase in manual work.
• The GST help lines and GST help centres (contacted over phone and email)
were never an easy access for the tax payer. The representatives had little
knowledge about the law and about the return filing process and were not fully
successful in addressing the issues.

Income Tax & ITR Filing

Income Tax

The constitution of India – schedule VII – Union List – Entry 82 has given the power
to Central Government to levy a Tax Act 1961. The Income tax law consists of
Income Tax Act 1961 Income Tax Rules 1962, Notifications & Circulars issued by

13
 Central Board of Direct Taxes, Annual Finance Act & judicial pronouncements by the
Supreme Court & High courts.

Income Tax Heads

Tax Heads Details
Income Refer to form 16 issued by your employer. If you had shifted jobs in the last
From one year from April 2009 to March 2010. Do not forget to collect From 16
Salary from your previous employees
Income Rental Income Arising from house property are taxable under this head
from subject to certain exemptions under the IT Act. Rental agreement would from
House the basis to determine income this head
property
Income Incomes of people managing practicing as freelancer come in this category. If
From you are not subject to tax audit then you need to file your tax return by 31 st
Business or July

profession
Capital This Head consist of profits realized from property transactions and dealing in
Gains equity market and other securities. Property sale deeds and shares Demat
account from the basis If its complicated take a CA’s Help
Income This head complies miscellaneous incomes such as interest from bank
from other deposits, winnings from games, shows and lotteries
source

Income Tax Slabs 2019-20

1. Income tax slab for individual male and female tax payers of age less than 60 years
and HUF FY 2018-19

Income Tax Rate FY 2018-19, AY 2019-20 Tax Rate FY 2017-18,AY

14
range per 2018-19
annum
Up to Rs. 2.5 No Tax No Tax
Lakhs
Above Rs. 2.5 5% +4% cess 5% + 3% cess
Lakhs to Rs. 5
Lakhs
Above Rs.5 20% + 4% cess 20% + 3% cess
Lakhs to

Rs.10 Lakhs
Above Rs.10 30%+4% cess 30% + 3% cess
Lakhs to Rs. 50
Lakhs
Above Rs. 50 30% + 10% surcharge + 4% cess 30% + 10% surcharge + 3%
Lakhs to Rs. 1 cess
crore
Above Rs. 1 crore 30% + 15% surcharge + 4% cess 30% + 15% surcharge + 3%
cess
Rebate under 100% tax rebate subject to maximum of Rs. 100% tax rebate subject to
section 2,500 of available to resident Individual maximum of Rs. 2,500 of

87 (A) whose total income does not exceed Rs. 3.5 available to resident
lakhs Individual whose total
income does not exceed Rs.
3.5 lakhs

2. Income tax slabs for senior citizens including both male & female taxpayers of age
more than 60 year but less than 80 years FY 2018-19
Income range per
annum Tax Rate FY 2018-19, AY 2019-20 Tax Rate FY 2017-18, AY
2018-19

15
Up to Rs. 3 Lakhs No Tax No Tax
Above Rs. 3 lakhs to 5% + 4% cess 5% + 3% cess

Rs. 5 Lakhs
Above Rs. 5 lakhs to 20% + 4% cess 20% + 3% cess

Rs. 10 lakhs
Above Rs. 10 lakhs to 30% + 4% cess 30% + 3% cess
Rs. 50 lakhs
Above Rs. 50 lakhs to 30% + 10% surcharge + 4% cess 30% + 10% surcharge + 3%
1 crore cess
Above Rs. 1 crore 30% + 15% surcharge + 4% cess 30% + 15% surcharge + 3%
cess
Rebate under 100% tax rebate subject to maximum 100% tax rebate subject to
of Rs. 2,500 of available to resident maximum of Rs. 2,500 of
section 87(A)
Individual whose total income does not available to resident
exceed Rs. 3.5 lakhs Individual whose total
income does not exceed Rs.
3.5 lakhs

3.Income tax slab for super senior citizen including both male and female taxpayers of age
more than 80 years FY 2018-19

Income range per

annum Tax Rate FY 2018-19, AY 2019- Tax Rate FY 2017- 18, AY
20 2018-19

Up to Rs. 2.5 Lakhs per No Tax No Tax

annum

Up to Rs. 5 lakhs per No Tax No Tax

16
annum

Above Rs. 5 lakhs to 20% + 4% cess 20% + 3% cess

Rs. 10 Lakhs

Above Rs. 10 Lakhs to 30% + 4% cess 30% + 3% cess

Rs. 50 Lakhs

Above Rs. 50 Lakhs to 30% + 10% surcharge + 4% cess 30% + 10% surcharge + 3%
Rs. 1 Crore cess

Above Rs. 1 crore 30% + 15%surcharge + 4% cess 30% + 15% surcharge + 3%

cess

4.Tax Slab for Firm & Domestic Companies FY 2018-19

Tax Head Firms Domestic companies

Income tax for turnover 30% 25%
upto Rs. 50 Crores
Income tax for turnover 30% 30%
above Rs. 50 Crores
Surcharge as % of 12% of Tax in case the 7% of tax in case income is more than Rs. 1
Income total income exceeds crore but less than 10 crore.
Rs. 1 Crores 10% of tax in case income is less than 10
Tax
crore.
Cess as % of Tax & 3% of Tax plus 3% of Tax plus surcharge

Surcharge surcharge

17
 Income Tax return

A tax return is the completion of documentation that calculates an entity’s income earned
with the amount of tax payable to the government, Govt. organizations or to potential
taxpayers.

Three parts of a Tax Return

Income – This part consist of all the source of your revenue. Most widely known method for
detailing is a from W-2 tax document. Payments, profits, independent work pay, prominence,
and in various domains, capital additions should likewise be considered for.

Deductions- Reasoning or deductions decline in tax debt. For organizations, most expenses
specifically identified with business task are deductible. Citizens may separate conclusions or
utilize the standard derivation for their documenting situation. When the reduction of all
outcomes is finished, the citizen may decide their expense rate on their balanced gross salary.

Tax Credits- Duty and Tax credit are sums that balanced charge liabilities or the duties
owned Like findings, these fluctuate broadly among areas. Be that as it may, there are
regularly attributes credited to the consideration of kids and seniors, annuities, instruction,
and some more.

Steps of Filling I.T.R (Income Tax Return)

Steps to file ITR 1 & ITR 4S Online:

• Login to e- Filing application.

• Go to 'e File' 'Prepare and Submit ITR Online'
• Select the Income Tax Return Form ITR 1/ITR 4S and the assessment year.
• Fill in the details and then click the submit button and choose DSC (Digital Signature
Certificate)' (if available) Click on 'Submit'

18
NOTE- ITR 2/ITR 3 is not able to file online for this you have to go XML file

Exceptions to the Tax slab

Type of Capital Asset
Holding period Tax rate

House Property • Holding more than 24 20% Depends on slab rate

months long - Long
term
Holding less than 24 months
– Short term

Debt mutual funds • Holding more than 36 20% Depends on slab rate
months – Long term

Holding less than 36 months

– short term

Equity mutual funds • Holding more than 12 Exempt (until 31st March
months – long term 2018) Gains >Rs 1
lakh taxable @ 10% 15%
• Holding less than 12

19
 months – short term

Shares (STT Unpaid) • Holding more than 12 20% As per slab Rates
months – long term

• Holding less than12 months

– short term

Shares (STT paid) • Holding more than 12 Exempt (until 31st March
months – long term 2018) Gains >Rs 1
lakh taxable @ 10% 15%
• Holding less than12 months
– short term

20% As per slab • Holding more than 36 20% Depends on slab rate
Rates months – Long term

• Holding less than 36

months – short term

Types of ITR Filing

ITR Applicable House Business Capital Other Exempt Forigen

Form to Salary Property Income Gains Source Income Assets/
Forigen
Income
ITR-1 Individual, Yes Yes No No Yes Yes No
HUF
(Residents)
ITR-2 Individual, Yes Yes No Yes Yes Yes Yes

20
 HUF
ITR-3 Individual Yes Yes Yes Yes Yes Yes Yes
or HUF,
Partner in a
Firm
ITR-4 Individual, Yes Yes(one Presumpt No Yes Yes(Agr No
HUF, Firm house ive iculture
property) Business less than
Income Rs.
5000)
ITR-5 Partnership, No Yes Yes Yes Yes Yes Yes
Firrm/LLP
ITR-6 Company No Yes Yes Yes Yes Yes Yes
ITR-7 Trust No Yes Yes Yes Yes Yes Yes

Aduit
An official examination of the present state of something, especially of a company’s financial
records. It is systematic and independent examination of books accounts statutory records
documents and vouchers of an organizations to ascertain how far the financial statements as
well as non financial disclouser present a true and fair view of the concern

Types of Audit

• Compliance Audit

• Construction Audit

• Financial Audit

• Information System Audit

• Investigation Audit

21
 • Operational Audit

• Tax Audit

Process of Audit
➢ Establishing Priority Area
➢ Identifying Monitoring & Audit Rules
➢ Determining Process Frequency
➢ Configuring Parameters
➢ Following Up
➢ Communicating Results Risk in Auditing
➢ Inherent Risk
➢ Control Risk
➢ Detection Risk

Chapter 1

Introduction

• Overview of the organization

• Vision

22
 • Services offered

• SWOT Analysis

Introduction

PSAC & Associates (Chartered Accountants) was established in the year 2004 by a group
of Chartered Accountants who have expert knowledge in the field of Audit & Assurance,
Direct and Indirect tax (advisory & compliance), Business & Risk Advisory, Project
Financing, Secretarial Work, Corporate Governance, Merger & Acquisitions and Cost
Management. We are on course to establish our foot-print across India with existing offices
at Bhilai, Pune, Balaghat and Raipur. Our team is growing rapidly with 07 Partners & 40
professionals, staffs & articles and likely to grow with strong human resource.

Overview of the organization

PSAC & Associates (Chartered Accountants), a professionally managed

organization is engaged in rendering value added services. With commercial
acumen and analytical thinking, they have been offering cost effective Financial
Management Services, Accounting Auditing Services, Company Formation
Services etc. They bring the required analytic expertise to various fields as
diverse as strategic planning, market analysis, compliance, change management
and the use of information technology. Their multi-faceted knowledge and
practical training aids them in offering professional solutions to individuals and
corporate keeping in mind our desired goals. With an immaculate blend of
competence backed up with innovation and integrity, the firm endeavors to offer
expertise beyond compare. Lastly, they always strive to establish a long-term
business relationship with their esteemed clients via trustworthy services.

23
 Vision

To develop our firm in line with best international practices, to ensure sustainability, scalabity
and tremendous rate of growth in geometrical progression by moving up in value chain with
contribution from various verticals in service domain. To develop as a team of committed
professionals creating economic value addition for our clients both National and International.
To develop a vibrant & progressive organisation and having presence in India & other nations
of the world. To contribute to the society and nation in line with ICAI vision of \"Partner to
Nation Building\". www.psac.co.in

Service offerings

PSAC & Associates (Chartered Accountants) based in India is dedicatedly

engaged in providing the following services:
Our Services Audit & Assurance Taxation :Statutory Audit Under all applicable Statute Tax
Advisory Internal, Forensic Audit, Concurrent and Tax Compliance Management Audit Systems,
Tax structuring vis - a- vis Business Model. Controls & Process Reviews, Litigation Support
Certification Tax, Due - Diligence Corporate and Secretarial Project Finance & Specialised
Services Incorporation of New Companies Secretarial Compliance, Project Finance, Mergers and
Acquisitions, Due Diligence Corporate Takeover, Setting up of laisoning offices, Cross Border
Business Deals & Branches in India, Outsourcing Risk Management & Advisory CFO Services
& MIS Risk Assessment, Outsourced Accounting Services ,Risk Assurance Outsourced, Payroll
Process and Audit Risk Reporting & Compliance Startup and Statutory Compliance.

Audit and Assurance services is one of the focus areas of services provided by our firm. We
believe that to create confidence among all concerned stakeholders, transparency and true & fair
view of financial statements is must. We render stringent Audit and Assurance services which

24
covers all aspects and ensure that financial statements provides clear and complete picture to all
stakeholders.

Our Audit & Assurance services includes :

Statutory Audit under all applicable statute. Forensic Audit Internal, Concurrent and
Management audits. Systems, Controls and Process reviews. Certification. Taxation There is a
continuos growth in number of tax litigations and compliance challenges affecting both
individuals and corporates. In light of increasing global business competition & regulations,
effective tax planning & accurate tax compliance will have a significant impact on growth of the
business.
Our expert tax consultants have been proactively working with individual & corporate clients as
their advisors to ensure tax efficient environment for their business. We provide comprehensive
tax advice as well as practical support in the structuring of direct & indirect tax arrangements to
reduce related costs as well as to ensure full regulatory requirements.

Our Taxation services includes : Tax Advisory Tax Compliance Tax Structuring vis - a- vis
Business Model. Litigation Support Tax Due - Diligence Corporate & Secretarial Corporate and
Secretarial matters is essential part of any corporate organization. Corporate Law experts at
PSAC take an innovative step to prepare a Complete Compliance Module best suitable to your
organization and ensures that you comply with applicable laws.

Our Corporate & Secretarial services includes :– Incorporation of new companies and other
Secretarial Matters. Assistance and guidance for Business Reorganization, Mergers &
Acquisition and Takeover. Consultation services on Corporate and other allied laws. Project
Finance To start a new business, expand an existing business or to make up for a short fall in
operating capital, a business loan may be required in all of these circumstances. Debt is the most
crucial form of finance for a business .Debt finance includes both secured and unsecured
financing. Our solution also includes Debt management services to reduce the cost of funds. We
provide consultancy for both term and working capital requirements.

25
Our Project Finance services includes : Assistance in preparation of business plan and
determination of corresponding capital structure. Advisory services related to project finance.
Preparation of detailed project report. Negotiation and liaisoning with financial institutions &
banks. Risk Management and Advisory Our Risk Management & Advisory services helps our
clients to manage risks in a proactive manner by identifying key risk areas. With a focus to
simplify the complexity of today's business environment, our team brings together multi-
disciplinary risk advisory expertise and insight.

Our Risk Management and Advisory services includes : Risk Assessment Risk Assurance
Risk Reporting & Compliance Outsourcing CFO Services and MIS In an increasingly
competitive market, a close analysis of financial position on routine basis is need of the hour for
business entities, so as to make informed decision to take advantage of opportunities that may
arise.
Our team of experts provide the accurate maintenance, thorough evaluation, preparation and
interpretation of financial records that is essential to any business through a range of professional
and customisable accounting services.

Payroll Processing: A Payroll system is important because of factors such as high employment
turnover, constantly changing tax regulations, business growth and employee benefit tracking; all
of which can cost significant time and money if processed internally. For many businesses,
outsourced Payroll facilities can be the answer for a cost efficient and easy to use Payroll
solution that is backed by quality assurance and control. An efficient Payroll system signifies
good health of the organisation.

Start up & Statutory Compliance: To start a business in India needs lot of approvals and
compliance procedures need to be followed before the initiation of business activity. Start up
approval activities are not only time consuming but also includes lot of co-ordination with
related approving authorities. Our business start up services helps in expediting the approval
process and smoothes the process from a business idea to business entity.

26
Our range of services includes : Assistance in evaluation kind of entity to be formed i.e. LLP,
Private Ltd., Limited Company, One Person Company etc. Obtaining necessary approval under
the respective legislation for formation of entity Obtaining tax registration certificates under GST
and other allied Acts as may be applicable to the entities Assistance in obtaining other legal
approvals like Pollution Control Board, Food and Drug department.

Limited Liability Partnership

Limited Liability Partnership (LLP) is an alternative corporate business form that gives
the benefits of limited liability of a company and the flexibility of a partnership. LLP can
continue its existence irrespective of changes in partners. It is capable of entering into
contracts and holding property in its own name. The LLP is a separate legal entity, is
liable to the full extent of its assets but liability of the partners is limited to their agreed
contribution in the Limited Liability Partnership Registration.
LLPs shall be registered with the Registrar of Companies (ROC) (appointed under the
Companies Act, 1956) after following the provisions specified in the LLP Act. Every
LLP shall have a registered office. An Incorporation Document subscribed by at least
two partners shall have to be delivered to the Registrar in a prescribed form. Contents of
Limited Liability Partnership Agreement, as may be prescribed, shall also be required to
be filed with ROC.

Chartered Accountant Services

PSAC & Associates (Chartered Accountants) is a multi-faceted company that has marked its
prominence in rendering reliable Chartered Accountant Services. They offer Chartered
Accountant Services to the various small businesses at affordable charges. They are backed with
qualified chartered accountants having vast experience in this field that helps them in providing
beneficial assistance to the clients. They are regarded as one of the trustworthy Chartered
Accountant Services providers in India.

They Offer:

27
 • Book keeping

• Payroll reconciliation

• Checking accounts on daily basis

• Data entry

• Accounts payable and receivable reconciliations

• Capital planning

• Investment management

• Investment gain and loss accounting

• Company accounts

• Auditing

Their target-oriented professionals are expert in our respective jobs. All we have considerable
expertise in dealing with different types of tax planning service, financial consultant services
etc.

Their services are rendered keeping the confidentiality of the clients. Use of advanced
technology helps them in the efficient execution of their undertaken projects. Their services are
precisely designed to provide economically practical solutions to the clients. Besides this, they
also give prime concern to the completion of projects well within the stipulated timeframe.

SWOT Analysis

Strength
Reputation of the company

Excellent client service

28
 Strong relationship with existing clients

Wide network of branches

Weakness
Mainly human based management

High attrition rate in work force

Few employee motivation schemes

Lack of job commitment of the employees

Opportunity
Increase more branch office to grab more market share

Increase the number of company’s exclusive distributorship.

Clients become more concern regarding the quality of services rather than price.

Threats

The market is becoming dreadfully competitive.

Chapter 2

Research methodology

29
 • Statement of the Problem

• Objectives of the study

• Managerial usefulness of study

• Type of research and research design

• Data collection method

• Limitations of study

Statement of the Problem

Introduction of GST with effect from July-2017 had a considerable impact on the accounting
and documentation of any organisation. This made a structural change in the accounting of day
to day transactions. There were many issues associated with GST implementation. There were
many laws related, technical and other issues which hindered the smooth transition. Tax payers,
practitioners, accountants, etc. had various problems but had least reachability to the right
officials at right moment to resolve the issues. This study attempts to bring forth certain issues
faced by the taxpayers at the initial stage and also attempts to provide a brief note on the long-
standing issues with GSTR filing this study is mainly carried on from the perspective of small
and medium taxpayers and other service providers.

Objective of the study

The major objectives of this study are:

30
 • To know about the Impact of GST onservice providers and how they cope up with this
change in tax system.
• As a part of the subject, this paper provides some basic details on different types of
primary GST Returns
• The object includes studying the implications of GST compliance on accounting

• To suggest the comprehensive solution to have a better control and easier compliance.

Managerial usefulness of study

Throughout the internship period working as an intern under Chartered Accountant gave an
experience on workings related to financial statements of companies, filing of Income Tax and
GST. By working there, there were lots of opportunities to accumulate lot of information about
GST. It is worth to mention that; the members of the office were very informative. Moreover,
studying in university course, course text book and search engine was helpful to accumulate
theoretical knowledge with practical. This study is somehow helpful for us to know the changes
that are occurred due to the change in the tax system.

Type of research and research design

1. Descriptive Research: Descriptive research includes surveys and fact-findings
enquiries of different kinds. The major purpose of descriptive research is description of
state of affairs as it exists at present.
2. Questionnaire method was followed for the research

3. Primary Data: In some cases, the researchers may realize the need for collecting the
first hand information. As in the case of everyday life, if we want to have firsthand
information on any happening or event, we either ask someone who knows about it or
we observe it ourselves, we do the both. Thus, the two methods by which primary data
can be collected is observation. Those data collected first hand, either by the researcher
or by someone else, especially for the purpose of the study is known as primary data.

31
 4. Secondary Data: Any data, which have been gathered earlier for some other purpose,
are secondary data in the hands of researcher through various articles and websites.
5. Information was collected through both primary and secondary sources.

Research Design

The research design took for the study was “Descriptive Research Design”.

Data collection methods

In this study, both the primary data collection method and secondary collection method have
been used to collect data.

Primary Data Collection

Research approach Survey method

Research instrument Questionnaire
Method of Contact Personal
Sample size 10 Respondents

Survey method was used in the study because of its:

• Extreme Flexibility

• Reliability

• Easy Understand ability

The main purpose of survey is to facilitate understanding or enable prediction of the impact of
GST on service providers.

32
Secondary Data Collection

Secondary data has been collected from the articles, research papers related to GST and data
available on the internet through various GST websites and sources have been used.

Limitations of study

There are certain limitations in this report; otherwise the report including the analysis might be
more accurate and beneficial. At first, it was difficult to get an appointment with auditor as an
internee like me. As a BBA student working under a Chartered Accountant, it was difficult for
them to give the huge task and give all the information to the new intern. There were a lot of
learnings made but that was not that much sufficient to maintain a report and do a deep analysis
of the organization.
The data is analyzed and represented in accordance to the reviews obtained through
questionnaires; the result may slightly vary if a different interpretation method is used.
The field of the GST study is very vast. This paper is limited to its barriers in filing the return
and its impact on accounting only.
In spite of, all these limitations, all the best possible ways are made for this research.

Chapter 3

Conceptual Discussions

• Review of Literature

• Current Issues

33
Review of Literature

Literature review is indispensable part of this article because it represents whole range of
research in the past on the topic selected on the basis of which research design of a study is
formulated. Literature review gives better insight and helps to bridge gap for the research to be
undertaken. There are various articles and research papers discussing the ‘Impact of GST on
Service Providers’. Some of them are as follows:

• Garg (2014) studied about the basic concepts and features of GST in India. He
highlighted that GST would be a good indirect tax reform in our country because it would
cover all goods & services and all sectors like industry, business including government
sector and service sector. All big, small scale units, medium, intermediaries, importers,
exporters, traders, professionals and consumers would be affected by GST. This uniform
tax rate for centre and state would also likely to improve economic development by
increasing tax collections..

• Neha Rani, Sunil (2016) in their research paper, “An Overview about the Impact of GST
on

Various Sectors of Indian Economy” discussed the impact of GST on various sectors and
stated that FMCG distributors and retailers can set off input tax credit from services such as
transport, rent against GST tax liability which is not available currently..

• Bhavana Sahu (2016) in her research paper, “GST in India- Its Realities and Impact”
cleared that GST will be advantageous for GDP of India and it will create employment
opportunities and will make Indian products competitive in International market. He

34
 further stated that prices of some goods and services will hike while some of them will
become cheaper.

• Jaspreet Kaur (2016) in her research paper, “Goods and Services Tax (GST) and is
Impact” (2016) studied impact of GST and concluded that electronic goods, medicines,
SUV cars, entertainment and restaurant services will see cut down in their prices but
there will be more tax burden in case of packaged food, jewellery and mobile services.

Current news
Is GST helping the Indian economy for the better?

The Goods and Services Tax is a reform designed to create an ecosystem where free and fair
competition can thrive. The state and centre in unison decided to pool in their resource and
sovereignty to create this fiscal consolidation for the common goal of economic prosperity.
India’s first federal institution, the GST reform does away with the old multilayer arbitrary tax
scheme, making it easier to administer taxes while making revenue collection more efficient.

When state and centre have the autonomy to levy charges based on their preferences, the entire
system is distorted and the movement of goods also becomes difficult. Therefore, rooting out
redundancy in a tax regime is important to escape the tax on tax effect. GST has put in place
simple and homogeneous tax, the spoils of which can be utilized by the state and the centre
equally.

35
A wide price drop across the spectrum is noticeable, something that was absent in the
previous tax regime. The creation of a unified national market across the country -under the
banner of GST-has increased manufacturing activities. In the recent GST council meet, the
key area of focus was the cottage industry. The rates for a number of raw materials were
rationalized in a bid to boost the country’s small-scale industry. In these aspects, it
resonates with the Make in India Programmed which aims at making India a manufacturing
hub.

While India’s GDP did slip to 6.1 in the first quarter of the year 2017 it has bounced back to 6.3
and continues to progress. The Reserve Bank of India (RBI) ruled out any significant
inflationary impact due to an increase in taxes. The reason being that a large number of items in
the CPI were exempted from GST, and the effect of a rise in the tax rate on some items was
compensated by a dip in the rates on other items. A notable rise is visible in the indices; it
reflects the recovery of the economy against the recent slowdown. The Index of Industrial
production (IIP) has seen an average rise of 1.1% since July 2017.

GST has pushed the economy one step closer to a common market i.e. free movement of capital
and services. Doing business now has become easier and the hassle-free movement of the goods
enables smoother transport thereby plugging in the logistical inefficiencies. The introduction of
a GST Network and E-Way bills has solidified the country's supply chain and put in place a
structure that facilitates transparency. Now a dealer can track their shipments whether it is
intrastate or interstate.

Under GST the efficacy of Input Tax Credit has significantly increased. It eliminates the
cascading taxes and also incentives the dealer to avail more benefits upon revealing his
transactions. This adds transparency and acts as a self-policing mechanism, as the economic
incentive for avoiding tax has come down.

36
This uniquely ambitious implementation is still in its nascent stages and to evaluate its
performance at this stage would be presumptive. The mechanism is still being tweaked to
perfection as the amendments keep rolling in. The recent 28th GST council meet saw a range of
changes implemented across the spectrum.

Despite the heavy criticism, the economy seems to be picking up pace and hopefully the benefits
of

GST will become even more prominent. A proper analysis of GST’s impact on the economy can
only be done once the policy has fully taken shape. There are lot more changes yet to come, but
we as a nation must take pride in where we stand today with GST. Implementing such a large
scale rollout is a daunting task, one that the government has done with much dexterity.

The writer is Founder & CEO Clear Tax

Chapter 4
Data analysis

• Data analysis

• Overview of data
37
 • Overall overview

Data analysis
In this chapter, effort shave been made to analyse and interpret the collective data towards the
impact of GST on retail sector at PSAC & Associates through questionnaire.

First of all, the collected data have been presented in tabular form and thereafter it is analyzed
with the help of percentage and pie charts.

Overview of data

Table 1: Showing the respondent’s profession

Respondents profession % No. of respondents

GST expert 10 1

Accountant 20 2

Others 70 5

38
 Profession of Respondents

GST expert Accountant Others

Interpretation:
From the above table and chart, it shows that majority of the respondents are from other
profession like academicians, senior associate etc. And the rest are working as an Accountant
and GST Practitioner.

Table 2: Showing the feedback from respondents for the following questions

Questions Yes No

No. % No. %

09 90% 01 10%

1. Have you noticed any considerable changes in the day to

day accounting after the introduction of GST?

39
 06 60% 04 40%

2. Do you think extension of due dates and ambiguity of GST

Returns is a sign of poor planning of Government?

08 80% 02 20%

3. Do you think introduction of GST regime has pushed the

standards of reporting of compliance on overall reporting of
any organization in general?

04 40% 06 60%

4.Are you satisfied with the time given to assessees to

implement the GST Council’s decisions (such as changes in
rate structure, rules, processes)?

Data analysis through pie charts

Figure 1 Figure 2

Have you noticed any considerable Do you think extension of due dates
changes in the day to day accounting and ambiguity of GST
after the introduction of GST? Returns is a sign of poor planning
0 0 of Government?
10% 0 0

90%
40% 60%

YES NO

YES NO

Figure 3 Figure 4

Do you think introduction of GST Are you satisfied with the time given to

40
 regime has pushed the standards of assessees to implement the GST
reporting of compliance on overall Council’s decisions (such as changes in
reporting of any organization in general? rate structure, rules, processes)?

0 0 0 0

20%
40%

60%
80%

YES NO
YES NO

Interpretation:
From the above table and chart, it is clear that majority of respondents agreed that

• there is a change in the day to day accounting after the introduction of GST

• Postponement of due dates of filing the returns is a sign of inefficient planning of the
Government.
• New taxation system is better than the old one.

Figure: 6

41
 Do you think GST is easier to comply with or difficult
compare to earlier regime, in long run?
0%
20%
30%

50%

EASY MODERATE DIFFICULT VERY DIFFICULT

Interpretation:

50% of the respondents gave their opinion that GST is easier to comply in the longer period of
time.

Figure: 7

Is the available legislation in relation to the GST law

ss satisfactory or do you feel need more clarity?

60% 40%

Satisfactory need more clarity

Interpretation:

The majority of the respondents agreed that the available GST law and administration is not
satisfactory and to be needed for more clarity.

42
Figure: 8

How do you rate the technical support from GST department

in filling of GST Return?

10% 10%

30%

50%

BAD MODERATE GOOD EXCELLENT

Interpretation:

The majority respondents rating about the technical support from GST department in filing of

GST return is average.

Figure 9:-

What was the approximate time span in the transformation

from regular taxation to GST in your Organisation?

10% 0

40%

50%

0-6 MONTHS 7-12MONTHS MORE THAN 12 MONTHS

43
Figure 10

How smooth was the transformation of your

accounting system to GST driven system

10% 10%

20%
30%

30%

VERY DIFFICULT DIFFICULT NEUTRAL SMOOTH VERY SMOOTH

Interpretation:

From the above chart it is clear that 40% of the respondents agreed that the time period taken in
the transformation from regular taxation to GST was between 0-6 months and 50% have chosen
between 712 months and they prefer that the modification of accounting system to GST driven
system is difficult and neutral.

Overall Analysis:

We witnessed hundreds of hurdles at the initial days of the introduction. The filing of GST

returns for July month was postponed at every stage. This stood as a mark of inefficient

planning on the part of the government and insufficient resources. There were many instances

that proved that the portal was not thoroughly tested and the trail runs were a failure. The basic

functionalities of the site like logging in, refreshing data were not available for few days in the

44
period of filing returns. There were also increased confusions at initial filing due to various

technical glitches and lack of clarity on rules and the applicability of rules on the disclosures.

45
 Chapter - 5

My contribution to the body of

knowledge

“Knowledge without practice makes only half an artist”. Knowledge is best effective when it is
both learnt & practiced. We get better clarity on the concepts when we directly apply it to
practical work environment.
As an intern in PSAC & Associates for 51 days, I learnt a lot of things which helped me gain a
great experience of accounting as well as corporate world. I learnt a basic knowledge of tally
software and various other GSTR filing websites. I had some access to GST filing of some
clients. Here I also learned about ITR Filing & some of the part of audit too.

The most important part and best experience of the internship was giving me opportunity to read
and update the file of a company named K.T. Traders. It is a textile company located in Balaghat
(Madhya Pradesh). There I learnt the working of Corporate world too. My contribution to the
body of knowledge was to be a hardworking and sincere intern in that organization.

Here weekly we have a discussion on G.S.T. & Income Tax. I also partially learned how
financial books update is done in company. They also gave me opportunity to check other
companies books as well, as the 2 nd quarter financials are done in August and September. So
missed basic and important part of audit but I leaned how ITR and GSTR is filed on behalf of
company by C.A and their teams.

46
 Chapter 6

Findings, Suggestions and Conclusions

Findings
• As per the data analysed, it has been found that GST has great impact on the retail sector
and retailers.

• The implementation of this new regime is not that much clear and proper.

• There are some reductions in various tax calculations.

• There are lots of technical problems like issue in payments, difficult access to
GST helplines etc. faced by retailers while filing GST Returns.

• As this is a new regime in taxation system, they found it difficult to understand and
work accordingly but in long run it would be easier.
• There are various problems arise due to very less technical support provided to them.

• There are various difficulties in coping up with this change but in the future there will be
great opportunities in service sector as there would less efforts and they get used to of
this change.

Suggestions

The above detailed study on the issues may lead us to

47
• GST filing imposes an unexpected burden on the tax payer; the tax payer has an
imposed liability of making sure his vendor complies with GST returns so that the ITC
is carried over. If the vendor fails to file the return, then the tax payer will be denied
from the credit and will have to bear the whole liability.

• The process of GST would become more computerized with real time impact if:

✓ GST portal should be enabled with Real-Time Invoicing Module.

✓ At the point of sale there should be an invoice that could be generated right from the
GST portal with automated invoice numbering which is predefined by the seller.

✓ Such raised invoice should reflect in the buyers' portal and if there are any discrepancies
buyer can get it resolved from the seller, before accepting the invoice.

✓ Three Same procedure should be carried on with Credit notes/debit notes, stock
transfers, URD purchases etc.

✓ The Accounting ERP should be equipped to download the invoices and update the
ledgers accordingly. This integration will be difficult but is worth taking up.

• If we can adapt the above flow of process, then the Accounting ERP should be
developed to import the invoices from the portal and impact the ledgers accordingly. If
the ERP is not well developed, accountant can also do the manual accounting by
downloading the invoices from the portal where he can access all the documents. This
type of automation will reduce the burden and wastage of man power on reconciliation
of returns to accounting ledger.

• The GOI should deploy more good resourceful officials at GST help lines/ GST help
centres to assist the tax payers and practitioners with more reliability.

48
Conclusion
Doing summer internship in PSAC & Associates helped me gain sufficient knowledge about
accounting and GST world. This research was done on the basis of workings in the organization
and the changes they have faced after this change.
This project has provided me a learning experience. I am very pleased to work in such an
organization. I am glad to have worked with people who were very friendly and cooperative.
This internship has definitely helped me learning taxation system as well as in gaining
confidence to face a professional environment and culture. This experience is definitely going to
help me in my future career.

Chapter 7

Summary of the Project

•Appendix

•Reference

Appendix

QUESTIONNAIRE
A STUDY ON IMPACT OF GOODS AND SERVICE TAX (GST)
ON RETAIL SECTOR

Name:

49
Contact No.:

Email:

Profession:

Tick the appropriate option

Part A

Questions Yes No
1. Have you noticed any considerable changes in the day to day
accounting after the introduction of GST?

2. Do you think extension of due dates and ambiguity of GST

Returns is a sign of poor planning of Government?

3. Do you think introduction of GST regime has pushed the

standards of reporting of compliance on overall reporting of
any organization in general?

4. Are you satisfied with the time given to assessees to

implement

the GST Council’s decisions (such as changes in rate structure,

rules, processes)?

Part B

50
Q. 1 Do you think GST is easier to comply with or difficult compare to earlier
regime, in long run?

o Easy

○ Moderate

o Difficult

o Very
difficult

Q. 2 Is the available legislation in relation to the GST law satisfactory or do you

feel need more clarity?

o Satisfactory
o Need more
clarity

Q. 3 How do you rate the technical support from GST department in filling of
GST Return?

○ Bad

○ Moderate

○ Good

○ Excellent

Q. 4 What was the approximate time span in the transformation from regular
taxation to GST in your Organization?

o 0 – 6 Months

51
 o 7 – 12 Months o
More than 12
Months

Q. 5 How smooth was the transformation of your accounting system to GST

driven system?

○ Very smooth

○ Smooth

○ Neutral

○ Difficult

○Very difficult

Q. 6 Do you feel, advance ruling mechanism under GST regime bring in friendly
environment to the business?

○ Yes

○ No

Q. 7 Are you facing any significant issues in compliance with e-way bill
mechanism ?

○Yes

○ No

○ Not applicable

Q.8 Do you feel that the introduction of GST in India has affected the demand for
the goods/ services?

52
○Positively

○Negatively

○No impact

Q.9 Do you think transition to GST Regime was?

○Smoother

○Difficult

○Very difficult

Q.10 Are you facing issues in claiming refund under GST regime?

○Yes

○No

○Not applicable

Bibliography
Book reference

C.R. Kothari, 1985: Research Methodology: Methods and Techniques, New Delhi:
New Age International (P) Ltd.

53
Research papers and articles

• Bhavana Sahu “GST in India- Its Realities and Impact” (2016) Sai Om Journal of
Commerce Management vol.3 Issue 10 ISSN 2347-7571
• Jaspreet Kaur “Goods and Service Tax (GST) and its Impact” (2016)
International Journal of Applied Research
• Monika Sehrawat “GST IN INDIA: A KEY TAX REFORM” (2015),
International Journal of Research- Granthaalayah Vol.3 (Iss.12), ISSN- 2350-
0530(O) ISSN- 23943629(P)
• Neha Rani, Sunil “An Overview about the Impact of GST on Various Sectors of
Indian Economy” (2016) The International Journal of Business and Management
vol. 4, Issue 10, ISSN 2321-8916
• Rajwinder Kaur “GST: Its Impact on Services Availed by Consumers” (2017),
International Journal of Management and Social Sciences Research (IJMSSR)
Volume
6, No. 9, ISSN: 2319-4421

Websites

• https://cleartax.in
• https://cleartax.in/s/returns-under-the-gst-
law
• https://blog.capitalfloat.com/implications-gst-
services/

• www.economictimes.indiatimes.in

• www.businesstoday.in

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Remarks

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