PROJECT REPORT

GST INTERNSHIP
AT

“SMARK ASSOCIATES”
Lalitangar,akkayapalem

Vishakhapatnam,530016

Submitted to the GITAM INSTITUTE OF MANAGEMENT

( Gitam deemed to be University ) in partial fulfilment of the requirements for the award
of the Bachelors of Commerce (hons.)

Submitted by

SAI SAMANTH

Regd no : 121431644

Batch no:2016-2019

Under the supervision and guidance of

Ms.SRIKANTA LAHARI SAGI

Professor

Department of FINANCE

GITAM INSTITUTE OF

MANAGEMENT MARCH 2019

 DECLARATION
I, SAI SAMANTH hereby declare that this project report titled “GST INTERNSHIP” is a
bonafide project work carried out by me under the supervision of Ms.SRIKANTA LAHARI
SAGI, department of FINANCE, Gitam Institute of Management, in partial fulfillment of the
requirements for the award of Bachelor’s Degree of Commerce(Hons) in Gitam Deemed to be
University.

I also declare that this project report has not been submitted earlier anywhere for the award of
any degree, diploma or other similar title.

PLACE:

DATE:

SIGNATURE:

SAI SAMANTH

1214316144
 GITAM INSTITUTE OF MANAGEMENT
DEPARTMENT OF FINANCE CERTIFICATE
Certify that the Project report entitled ‘GST INTERNSHIP’ submitted by SAI SAMANTH is
a bonafide work carried out by his in partial fulfillment of the requirements for the award of
Bachelor’s Degree of Commerce (Hons) at Gitam Institute of Management , Gitam Deemed
to be University during the year 2018-2019, for a period of 12 weeks of December , January
and February.

PLACE:

SIGNATURE:
3
 ACKNOWLEDGEMENT
Every study is to learn more. But there cannot be any action yielding results without the help
of others. Thus, I take this opportunity to express my sincere gratitude to all those whose
contribution can never be forgotten in the successful completion of the project.

I convey my sincere and profound gratitude to CA JAYA KRISHNA, SMARK ASSOCIATES

I am extremely grateful to my guide, Dr.LAHARI SAGI, professor of department of

FINANCE, Gitam institute of management for the valuable guidance, expert advice,
supervision and encouragement which enabled me to complete this project.

I would like to thank all those people who co-operated with me in doing this study by giving
their valuable suggestions and information.

I would like to convey my sincere thanks to my family and my friends for all their help,
support and encouragement.

PLACE:

NAME: SAI SAMANTH

REGD NO: 1214316144
DATE: SIGNATURE:

4
 TABLE OF CONTENTS

Chapter no. Particulars

1 Introduction

About the firm

2

3 Conceptual framework

Work done
4

5 Observations

Learning/ outcomes
6

7 Executive summary

Reference
8

5
 INTRODUCTION

SMARK ASSOCIATES

Meaning of Goods and Service Tax (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 services means anything other than goods.

Purpose of GST:
1. Single umbrella tax rate
2. Removing cascading effect

Types of goods and service tax in India:

• CGST (Central goods and service tax): GST to be levied by the center.
• SGST (State goods and service tax): The GST is to be levied by the states GST (SGST).
• IGST (Integrated goods and service tax): IGST will be levied by the center and the state
concurrently.

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.

GST rate in India at glance:

• Exempted categories : 0%
• Commonly used goods and services : 5%
st
• Standard goods and services fall under 1 slab: 12%
nd
• Standard goods and services fall under 2 slab: 18%
• Special category of goods and services including luxury goods:28%

6
 SMARK & ASSOCIATES is an audit firm established and developed by
experienced and energetic accounting professionals in later days of 2013, with a view to strengthen the
professional services rendered by it, to be performed collectively as group , further, giving scope for
development as an individual as well as the firm.

The idea of SMARK came from the concept “team work never fails”.
Every member of the firm works for a common cause as to satisfy the principle of the firm and provide
better services to clients.

For the SMARK & ASSOCIATES client satisfaction is more

important in delegating our duties .we say that every member is working with PASSION and thus we
WIN highest position in rendering professional services

STAGES of SERVICES:

AT INTIAL STAGE:

➢ Startup services
➢ Project implementation
➢ Business planning
AT GROWTH STAGE:
➢ Project financing
➢ Intellectual support
➢ IT support
➢Certification & Audit…etc.
AT MATURITY STAGE:
➢ Growth ,Expansion planning
➢ Wealth management
➢ Additional financing

7
 CONCEPTUAL FRAMEWORK

Before we proceed with the finer nuances of Indian GST, let us first understand the basic concept of
GST

• GST is a value added tax levied on manufacture, sale and consumption of goods and services

• GST offers comprehensive and continuous chain of tax credits from the
producer's point/service provider's point upto the retailer's level/consumer’s
level there by taxing only the value added at each stage of supply chain.

• Since, only the value added at each stage is

taxed under GST, there is no tax on tax or
cascading of taxes under GST system. GST
does not differentiate between goods and
services and thus, the two are taxed at a single
rate.

• The supplier at each stage is permitted to avail

credit of GST paid on the purchase of goods
and/or services and can set off thiscredit against
the GST payable on the supply of goods and
services to be made by him. Thus, only the final
consumer bears the GST charged by the last
supplier in the supply chain, with set-off
benefits at all the previous stages.

8
 WORK DONE

WEEKS WORK
1 GST Introduction

2 Registration
3 Reconciliation

4 E-WAY BILL

5 Filing of returns

6 Debit and credit notes

7 Input tax credit

8 Reverse charge mechanism

9 CHARGE OF GST

10 Place of supply

9
 GST INTRODUCTION

SECTION 7 AND SECTION 8

Goods & Services Tax is a destination based tax which means that the tax is paid at the place of
supply.

Some of the State taxes that will be subsumed under GST are –

• State VAT

• Purchase Tax

• Luxury Tax

• Entry Tax (all forms)

• Entertainment Tax / Taxes on advertisements

• Tax on Lotteries, Betting and Gambling

• State Cess and Surcharges

Some of the Central taxes that would be subsumed under GST are –

• Central Excise Duty

• Additional duties of Excise

• Additional duties of Customs or CVD

• Special additional duties of Customs (SAD)

• Central Sales Tax

• Service tax

• Cesses and Surcharges

10
Section 7 of GST – Scope of supply
(1) For the purposes of this Act, the expression “supply” includes –

● (a) all forms of supply of goods or services or both such as sale, transfer, barter,
exchange, license, rental, lease or disposal made or agreed to be made for a
consideration by a person in the course or furtherance of business;
● (b) import of services for a consideration whether or not in the course or furtherance
of business;
● (c) the activities specified in Schedule I, made or agreed to be made without a
consideration; and
● (d) the activities to be treated as supply of goods or supply of services as referred to in
Schedule II.
(2) Notwithstanding anything contained in sub-section (1),-

● (a) activities or transactions specified in Schedule III; or

● (b) such activities or transactions undertaken by the Central Government, a State
Government or any local authority in which they are engaged as public authorities, as
may be notified by the Government on the recommendations of the Council, shall be
treated neither as a supply of goods nor a supply of services.
(3) Subject to the provisions of sub-sections (1) and (2), the Government may, on the
recommendations of the Council, specify, by notification, the transactions that are to be
treated as –
● (a) a supply of goods and not as a supply of services; or
● (b) a supply of services and not as a supply of goods.

Section 8 of GST –Tax liability on composite and mixed supplies

The tax liability on a composite or a mixed supply shall be determined in the following
manner, namely;

● (a) a composite supply comprising two or more supplies, one of which is a principal
supply, shall be treated as a supply of such principal supply; and
● (b) a mixed supply comprising two or more supplies shall be treated as a supply of
that particular supply which attracts the highest rate of tax.
11
 REGISTRATION
SECTION 22,24,25,28

What is GSTRegistration?
Any supplier of goods and service Provider of services who makes a taxable supply with an aggregate
turnover of over Rs.20 lakhs in a financial year is required to obtain GST registration. In special
category states, the aggregate turnover criteria are set at Rs.10 lakhs. In simple words every business
whose taxable supply of goods or services under GST (Goods and Service Tax) and whose turnover
exceeds the threshold limit of Rs. 20 lakh / 10 lakh as applicable will be required to register as a
normal taxable person. This process of registration is called GST registration.

COMPULSORY REGISTRATION IN CERTAIN CASES :

SECTION 24
• Persond making supplies in excess of 2000000 must be registered
• Casual taxable person (CTP)
• Persons who are required to pay tax under RCM
• Non – resident taxable person ( NRTP)
• E-commerce operators
• Persons who are required to deduct tax ,whether or not separately registered under tax

VOLUNTARY REGISTRATION :

A person who is not liable to be registered under GST sec(22) sec (24) may get himself registered
voluntarily , In case of voluntary registration all provisions of this act shall apply to such person

COMPULSORY REGISTRATION :
CIRCUMSTANCES WHERE REGISTRATION IS LIABLE TO GET CANCELLED :
❖ Business discontinued or transferred for any reason
❖ Change in the constitution of business
❖ When a taxable person is no longer liable to be registered under sec (22/24)
❖ SUO-MOTO registration

PROCEDURE FOR REGISTRATION

12
Step 1: Go to the GST Portal
1. Access the GST Portal ->https://0
2. Click on Services -> Registration > New Registration option.

Step 2: Generate a TRN by Completing OTP Validation

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

Step 3: OTP Verification & TRN Generation

On submission of the above information, the OTP Verification page is displayed. OTP will be
valid only for 10 minutes. Hence, enter the two separate OTP sent to validate email and
mobile number.

● In the Mobile OTP field, enter the OTP you received on your mobile number.
● In the Email OTP field, enter the OTP you received on your email address.

Step 4: TRNGenerated
On successfully completing OTP verification, a TRN will be generated. TRN will now be
used to complete and submit the GST registration application

13
Step 5: Login with TRN
Now that TRN is generated, you can begin the GST registration process. In the Temporary
Reference Number (TRN) field on the GST Portal, enter the TRN generated and enter the
captcha text as shown on the screen. Complete the OTP verification on mobile and email.

Step 6: Submit Business Information

Various information must be submitted for obtaining GST registration.

Step 7: Submit Promoter Information

In the next tab, details of the promoters of the business must be submitted. In case of a
company, the director’s information must be submitted. In case of proprietorship, the
proprietors information must be submitted. Details of up to 10 Promoters or Partners can be
submitted in a GST registration application.

Step 8: Submit Authorized Signatory Information

The authorised signatory is a person nominated by the promoters of the company to be
responsible for filing GST returns of the company and maintaining the necessary compliance.
The authorised signatory will have full access to the GST Portal and will be able to undertake
a wide range of transactions on behalf of the promoters. The promoter of a company can also
be an authorised signatory.

In case a promoter was selected as an authorized signatory in the previous section, this
section will be auto-populated with the relevant details. The details required for authorized
signatory is same as that of the promoters.

Step 9: Principal Place of Business

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

Step 10: Additional Place of Business

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

Step 11: Details of Goods and Services

In this section, the taxpayer must provide details of top 5 goods and services supplied by the
14
applicant. This is just an indicative list and the business of the applicant will not be restricted in
any way to the goods and services mentioned in this part.

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

Step 12: Details of Bank Account

In this section, enter the number of bank accounts held by the applicant. If there are 5 accounts, enter
5. Then provide details of the bank account like account number, IFSC code and type of
account. Finally, upload a copy of the bank statement or passbook in the place provided.

Step 13: Verification of Application

In this step verify the details submitted in the application before submission. Once verification is
complete, select the verification checkbox. In the Name of Authorized Signatory drop-down list,
select the name of authorized signatory. Enter the place from where the form is filled. Finally,
digitally sign the application using Digital Signature Certificate (DSC)/ E-Signature or EVC.
Digitally signing using DSC is mandatory in case of LLP and Companies.

15
 RECONCILIATION

Reconciliation of sales, purchase etc.

How to do GST Reconciliation?
To start with, Reconciliation must be done within the GSTIN and then must be taken to
the PAN level. Reconciliation must be done across months for the entire FY 2017-18
not justthat,but the amendments made to GST returns of FY 2017-18 in the CY 2018-
19 must also be considered.
Input tax credit (ITC) is the most important component of your GST returns as it holds
greater relevance when compared to any other component of the GST returns. The
stage at which the sanctity of claims were checked in the previous tax regime is no
longer the same as the current GST regime. The genuineness can be confirmed by a
taxpayer now at a stage of filing GST returns( vis-a-vis with GSTR-2A & take action).
Earlier, tax authorities usually carry out this check while processing the returns.
Hence, the vendor-wise reconciliation must be done on a regular basis. If not done,
taxpayer must consider doing it before filing September 2018 GST returns. This will
help identify and declare any unclaimed ITC within the deadline.

● Reconcile transitional ITC

● Claim ITC belonging to FY 2017-18, if not claimed earlier or
reverse the ineligible ITC, if not identified and done earlier.
● Match Table of exports at 6A of GSTR-1 vis-a-vis Corresponding
declaration in GSTR-3B
● Matching Table of exports at 6A of GSTR-1 vis-a-vis details of
shipping bills submitted on ICEGATE

● Comparing Purchase register vis-a-vis GSTR-2A for the entire year 2017-18

● Compare GSTR-1 vis-a-vis GSTR-3B

● To Compare the ITC in GSTR-3B vis-a-vis GSTR 2A for the entire year 2017-18

● Comparision between annual income tax return with annual GST return declatiaron
of turnover from business ( at PAN level)
To Compare the ITC in GSTR-3B vis-a-vis GSTR 2A for the entire year 2017- 18

16
 E-WAY BILL
E-Way Bill under GST

A waybill is a receipt or a document generated by the supplier or recipient of the goods by

giving the details relating to movement of goods like name of supplier, recipient, the point of
origin of the consignment, its destination, and route. Electronic Way Bill (E-Way Bill) is
basically a compliance mechanism wherein by way of a digital interface the person causing
the movement of goods uploads the relevant information prior to the commencement of
movement of goods and generates e-way bill on the GST portal. Rule 138 of the CGST Rules,
2017 provides for the e-way bill mechanism and in this context it is important to note that
“information is to be furnished prior to the commencement of movement of goods” and “is to
be issued whether the movement is in relation to a supply or for reasons other than supply”.

E-way bill is an electronic document generated on the GST portal evidencing movement of
goods. It has two Components-Part A comprising of details of GSTIN of recipient, place of
delivery (PIN Code), invoice or challan number and date, value of goods, HSN code, transport
document number (Goods Receipt Number or Railway Receipt Number or Airway Bill Number
or Bill of Lading Number) and reasons for transportation; and Part B comprising of transporter
details (Vehicle number). As per Rule 138 of the CGST Rules, 2017,every registered person who
causes movement of goods (which may not necessarily be on account of supply) of consignment
value more than Rs. 50000/- is required to furnish above mentioned information in part A of e-
way bill. The part B containing transport details helps in generation of e-way bill.

17
 RETURNS

GSTR3B, GSTR1

GSTReturn
A return is a document containing details of income which a taxpayer is required to file with the tax
administrative authorities. This is used by tax authorities to calculate tax liability.
Under GST, a registered dealer has to file GST returns that include:
● Purchases
● Sales
● Output GST (On sales)
● Input tax credit (GST paid on purchases)

GSTR 1
The details of outward supplies are required to be furnished, electronically, in
Form GSTR-1. Such details can be furnished through the common portal, either
directly or from a notified Facilitation Centre.

GSTR-1 for a particular month is filed on or before the 10th day of the
immediately succeeding month. In other words, GSTR-1 of a month can be filed
any time between 1st and 10th day of the succeeding month. It may be noted that
th th
GSTR-1 cannot be filed during the period from 11 day to 15 day of month
succeeding the tax period.
GSTR 3B
Section 39(1) prescribes a monthly return in Form GSTR-3
for every registered person, other than an input service
distributor or a non- resident taxable person or a composition
tax payer, a person deducting tax at source, an
electronic commerce operator and supplier of OIDAR GSTR-3B
th
services. GSTR-3 is to be filed by 20 day of the month
succeeding the relevant calendar month or part thereof.
However, filing of GSTR-3 has been deferred by the GST
Council till March, 2019.

Currently, return in Form GSTR-3B is being notified as the monthly return to be filed
by the registered persons who are required to file GSTR-3. Presently, the due date of
th
submission for GSTR-3B is being notified as 20 day of the month succeeding the
relevant month.
GSTR-3B can be submitted electronically through the common portal, either directly or
through a notified Facilitation Centre
GSTR-3B is a simple return containing summary of outward supplies, inward supplies
liable to reverse charge, eligible ITC, payment of tax etc. Thus, GSTR-3B does not
require invoice-wise data of outward supplies.
list of statements/returns under GST

Return Description Who Files? Date for filing

GSTR-1 Monthly Registered Person with th
Statement of annual aggregate 10 of the next month
Outward supplies turnover greater than `
of Goods or 1.5 crore
Services
Quarterly Registered Person with th
10 of the next
Statement of annual aggregate quarter
Outward supplies turnover up to
of Goods or ` 1.5 crore
Services

Monthly Return Registered Person th

20 of the next
for a normal month
taxpayer

GSTR-4 Quarterly Return Taxable Person opting 18th of the month

for Composition Levy succeeding the
quarter

GSTR-5 Monthly Return Non-resident Taxpayer 20th of the month

for a non-resident succeeding the tax
taxpayer period or within 7
days after expiry of
registration,
whichever is earlier
st
GSTR-9 Annual Return Registered Person 31 December of
other than an ISD, next Financial Year
TDS/TCS Taxpayer,
Casual Taxable
Person and Non-
resident Taxpayer
GSTR-10 Final Return Taxable Person whose Within three months
registration has been of the date of
surrendered or cancelled cancellation or date
of order of
cancellation,
whichever is later.
 DEBIT NOTE AND CREDIT NOTE

sec 34 of CGST Act, 2017 prescribes about

(1) Where a tax invoice has been issued for supply of any goods or services or both and the
taxable value or tax charged in that tax invoice is found to exceed the taxable value or tax
payable in respect of such supply, or where the goods supplied are returned by the recipient,
or where goods or services or both supplied are found to be deficient, the registered person,
who has supplied such goods or services or both, may issue to the recipient a credit note
containing such particulars as may be prescribed.

(2) Any registered person who issues a credit note in relation to a supply of goods or services or
both shall declare the details of such credit note in the return for the month during which such
credit note has been issued but not later than September following the end of the financial year in
which such supply was made, or the date of furnishing of the relevant annual return, whichever is
earlier, and the tax liability shall be adjusted in such manner as may be prescribed:

Provided that no reduction in output tax liability of the supplier shall be permitted, if the
incidence of tax and interest on such supply has been passed on to any other person.

(3) Where a tax invoice has been issued for supply of any goods or services or both and the
taxable value or tax charged in that tax invoice is found to be less than the taxable value or
tax payable in respect of such supply, the registered person, who has supplied such goods or
services or both, shall issue to the recipient a debit note containing such particulars as may be
prescribed.

(4) Any registered person who issues a debit note in relation to a supply of goods or services or both
shall declare the details of such debit note in the return for the month during which such debit note has
been issued and the tax liability shall be adjusted in such manner as may be prescribed.

22
 INPUT TAX CREDIT

Sec16(1),16(2),sec(17), sec(18)
The GST regime promises seamless credit on goods and services across the
entire supply chain with some exceptions like supplies charged to tax under
composition scheme and supply of exempted goods and/or services. ITC is
considered to be the backbone of the GST regime. In fact, it is the provisions
of ITC which essentially make GST a value added tax i.e., collection of tax
at all points of supply chain after allowing credit of tax paid at earlier points.

Provisions of ITC under CGST Act have also been made

applicable to IGST Act vide section 20 of the IGST Act

TIME TO AVAIL INPUT TAX CREDIT:

ITC claims day for semi-furnished

Situation goods/stock/finished goods (held on immediate
preceding day)
If a person has applied for registration
or is liable to register or is granted Day from when he is liable to pay taxes
registration
When a person takes voluntary
Registration day
registration
When a taxable registered person stops
Day from when he is liable to pay tax normally u/s 7.
paying taxes in composition levy
scheme

23
CONDITIONS TO CLAIM INPUT TAX CREDIT:
1. One must be a registered taxable person.
2. One can claim Input Tax Credit only if the goods and services received is used for
business purposes.
3. Input Tax Credit can be claimed on exports/zero-rated supplies and are taxable.
4. For a registered taxable person, if the constitution changes due to merger, sale or transfer
of business, then the Input Tax Credit which is unused shall be transferred to the merged,
sold or transferred business.
5. One can credit the Input Tax Credit in his Electronic Credit Ledger in a provisional
manner on the common portal as prescribed in model GST law.
6. Supporting documents – debit note, tax invoice, supplementary invoice, are needed to
claim the Input Tax Credit.
7. If there is an actual receipt of goods and services, an Input Tax Credit can be claimed.

8. The Input Tax should be paid through Electronic Credit/Cash ledger.

9. All GST returns such as GST-1, 2,3, 6, and 7 needs to be filed

24
 MANNER OF UTILIZING INPUT TAX CREDIT:
Credit 1st to be utilized for payment of Balance if any
CGST IGST CGST
IGST IGST CGST and then SGST/UTGST
SGST/UTGST IGST SGST/UTGST

SEC17(5) BLOCKED CREDIT

(1) MOTOR VEHICLES AND CONVEYANCES EXCEPT when used for transportation of goods
or imparting of passengers or transportation of passengers
(2) FOODS AND BEVERAGES , OUTDOOR CATERING , BEAUTY TREATMENT ,
HEALTH SERVICES ,COSMETIC AND PLASTIC SURGERY
(3) MEMBERSHIP OF A CLUB HEALTH AND FITNESS CENTRE
(4) RENT A CAB , LIFE INSURANCE EXCEPT where inward supply of these services is used
for making taxable supply of same category
(5) INWARD SUPPLIES ON WHICH TAX HAS BEEN PAID UNDER
COMPOSITION SCHEME
(6) INWARD SUPPLIES RECEIVED BY “NTRP” EXCEPT GOODS IMPORTED BY HIM
(7) GOODS OR SERVICES USED FOR PERSONAL CONSUMPTION
(8) GOODS THAT ARE LOST,STOLEN,DESTROYED,RETURN OFF OR DISPOSED BY
WAY OF GIFT
(9) TAX PAID UNDER SEC 74,129,130
(10) WORK CONTRACT SERVICES FOR CONSTRUCTION OF AN IMMOVABLE
PROPERTY

25
 REVERSE CHARGE MECHANISM

REVERSE CHARGE is a mechanism where the recipient of the goods and/or services is liable
to pay GST instead of the supplier .In general the responsibility to pay tax under indirect
taxation rests with the service provider or the seller this is called forward charge, on the other
hand the Law sometimes shifts the responsibility to pay tax on the shoulders of the service
recipient or buyer thereof this is called reverse charge.

TWO TYPES OF REVERSE CHARGE SCENARIOS IN GST LAW:

● First is dependent on the nature of supply and/or nature of supplier. This scenario is
covered by section 9 (3) of the CGST/ SGST (UTGST) Act and section 5 (3) of the
IGSTAct, 2017.
● Second scenario is covered by section 9 (4) of the CGST/SGST (UTGST) Act and
section 5 of the IGST Act where taxable supplies by any unregistered person to a
registered person.

26
 Supplies Of Goods Under Reverse Charge Mechanism:
S. Description of Supplier of goods Recipient of
No. supply of goods goods

1. Cashew nuts, not Agriculturist Any registered

shelled or peeled person
2. Bidi wrapper leaves Agriculturist Any registered
(tendu) person
3. Tobacco leaves Agriculturist Any registered
person
4. Supply of lottery State Government, Union Territory or any Lottery distributor
local authority or selling agent
5. Silk yarn Any person who manufactures silk yarn Any registered
from raw silk or silk worm cocoons for person
supply of silk yarn

27
Supplies of Services under Reverse Charge Mechanism:

S. No. Description of supply of service Supplier of Recipient of

service service

1. Any service supplied by any person who is Any person Any person located
located in a non-taxable territory to any person located in a non- in the taxable
other than non-taxable online recipient. taxable territory territory other than
non- taxable
onlin
e recipient.
2. GTA Services Goods Transport Any factory, society,
co-
Agency (GTA) operative society,
registered person,
body corporate,
partnership firm,
casual taxable
person; located in the
taxable territory
3. Services supplied by an individual advocate An individual Any business entity
including a senior advocate by way of advocate, located in the taxable
representational services before any court, including a territory
tribunal or authority, directly or indirectly, to senior advocate
any business entity located in the taxable or a firm of
territory, including where contract for advocates
provision of such service has been entered
through another advocate or a firm of
advocates, or by a firm of advocates, by way
of legal services, to a business entity.
4. Services supplied by an arbitral tribunal to a An arbitral Any business entity
business entity tribunal located in the taxable
territory
5. Services provided by way of sponsorship to Any person Anybody corporate
anybody corporate or partnership firm or partnership firm

28
6. Services supplied by the Central Government, Central Any business entity
State Government, Union territory or local Government, located in the taxable
authority to a business entity excluding: – State territory
(1) renting of immovable property, and Government,
(2) services specified below: –
Union territory or
(i) services by the Department of Posts by
local authority
way of speed post, express parcel post, life
insurance, and agency services provided to a
person other than Central Government, State
Government or Union territory or local
authority;
(ii) services in relation to an aircraft or a
vessel, inside or outside the precincts of a port
or an airport;
(iii) Transport of goods or passengers.
7. Services supplied by a director of a company A director of a The company or a
or a body corporate to the said company or company or a body corporate
the body corporate body corporate located in the taxable
territory
8. Services supplied by an insurance agent to An insurance Any person carrying
any person carrying on insurance business agent on insurance
business, located in
the taxable territory

9. Services supplied by a recovery agent to a A recovery agent A banking company

banking company or a financial institution or a or a financial
non-banking financial company institution or a non-
banking financial
company, located in
the taxable territory
10 Supply of services by an author, music Author or Publisher, music
composer, photographer, artist or the like by music company, producer or
way of transfer or permitting the use or composer, the like, located in the
enjoyment of a copyright covered under photograph her, taxable territory
section 13(1)(a) of the Copyright Act, 1957 artist, or the like
relating to original literary, dramatic, musical
or artistic works to a publisher, music
company, producer or the like
11 Services supplied by a person located in non- A person located Importer, as defined
taxable territory by way of transportation of in non-taxable in clause (26) of
goods by a vessel from a place outside India territory section 2 of the
up to the customs station of clearance in Customs
India. Act
, 1962(52 of 1962),
located in the taxable
territory.
29
 CHARGE OF GST
The very basis for the charge of tax in any taxing statute is the taxable event
i.e the point on which the levy of tax gets attracted. As discussed earlier, the
taxable event under GST is SUPPLY. CGST and SGST/UTGST are levied on
all intra-State supplies of goods and/or services while IGST is levied on all
inter-State supplies of goods and/ or services

INTRA STATE SUPPLY :

Where the location of the supplier and the place of supply of goods or services
are in the same State/Union territory, it is treated as intra-State supply of goods
or services respectively.

INTER STATE SUPPLY:

Where the location of the supplier and the place of supply of goods or services
are in (i) two different States or (ii) two different Union Territories or
(iii) a State and a Union territory, it is treated as inter-State supply of goods or
services respectively.

Central tax: means the central goods and services tax levied under section 9
[Section 2(21) of the CGST Act].
Integrated tax: means the integrated goods and services tax levied under the
Integrated Goods and Services Tax Act [Section 2(58) of the CGST Act].
State tax: means the tax levied under any State Goods and Services Tax Act
[Section 2(104) of the CGST Act].
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 be computed on all India basis but excludes central
tax, State tax, Union territory tax, integrated tax and cess [Section 2(6) of CGST Act].

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 PLACE OF SUPPLY

Sec10,sec11,sec12,sec13

The concept of place of supply is highly relevant in the context of determination of where the
supply has taken place. As enumerated in the earlier paragraphs, whether a transaction of supply
of goods or services is leviable to tax in India or not depends on the place where the supply has
took place. As per Section 7 read with Section 9 of the CGST/SGST Act, a supply shall be
taxable in India only when its place of supply is within the taxable territory. Once it is identified
that a supply took place within the taxable territory then it needs to be determined whether it is a
intra state supply or interstate supply based on the provisions contained in this regard.

Place of supply of GOODS in different situations:

S.No. Nature of Supply of Goods Place of Supply

1. Where the supply involves the movement of goods, Location of the goods at the
whether by the supplier or the recipient or by any other time at which, the movement
person of goods terminates for
delivery to the recipient

2. Where the goods are delivered to the recipient, or any The principalplace of
person on the direction of the third person by way of business of such person
transfer of title or otherwise, it shall be deemed that
the third person has received the goods

3. Where goods are assembled or installed at site The place where the goods
are assembled or installed

4. Where the goods are supplied on-board a conveyance The place where such goods
like a vessel, aircraft, train or motor vehicle are taken on board the
conveyance

5. Where the place of supply of goods cannot be It shall be determined in such

determined in terms of manner as may be prescribed

sub-sections (2), (3), (4) and (5)

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 PLACE OF SUPPLY OF SERVICES in different situations:

S.No. Nature of Service Place of Supply

1. Immovable property Location at which the immovable property or boat or
related to services, including hotel vessel is located or intended to be located if located
accommodation outside India: location of the recipient

2. Restaurant and catering services, Location where the services are actually performed
personal
grooming, fitness, beauty
treatment and health service

3. Training and performance B2B: location of such Registered person

appraisal
B2C: location where the services are actually
performed

4. Admission to an event or Place where the event is actually held or where the
amusement park park or the other place is located

5. Organization of an event B2B: location of such Registered person

B2C: location where the event is actually held if the
event is held outsideIndia: location of the recipient

32
6. Transportation of goods, B2B: location of such Registered person
including mails
B2C: location at which such goods are handed
over for their transportation
7. Passenger transportation B2B: location of such Registered person
B2C: place where the passenger embarks on the
conveyance for a continuous journey
8. Services on board a Location of the first scheduled point of departure of
conveyance that conveyance for the journey
9. Banking and other financial Location of the recipient of services on the records
services of the supplier
Location of the supplier of services if the location
of the recipient of services is not available

10. Insurance services B2B: location of such Registered person

B2C: location of the recipient of services on the
records of the supplier
11. Advertisement services to the The place of supply shall be taken as located in each of
Government such States proportionate value in case of multiple
States
12. Telecommunication services Services involving fixed line, circuits, dish etc., and
place of supply is the location of such fixed
equipment. In case of mobile/Internet post-paid
services, it is the location of billing address of the
recipient. In case of sale of prepaid voucher, the place
of supply is the place of sale of such vouchers.

33
 OBSERVATIONS

GST is a win-win situation for the entire country. It brings benefits to all the stakeholders of industry,
Government and the consumer. It will lower the cost of goods and services, give a boost to the
economy and make the products and services globally competitive
● Creation of unified national market: GST aims to make India a common market with
common tax rates and procedures and remove the economic barriers thus paving the way for
an integrated economy at the NATIONAL LEVEL .
● MITIGATION OF ILL EFECTS OF CASCADING : By summing most of the central and
state taxes into a single tax by allowing a set off of prior – stage taxes for transactions across
the entire value chain , it would mitigate the ill effects of cascading, improve
competitiveness and improve liquidity of the businesses
●
● Elimination of multiple taxes and double taxation: GST has subsumed majority of existing
indirect tax levies both at Central and State level into one tax i.e., GST which is leviable
uniformly on goods and services. This will make doing business easier and will also tackle
the highly disputed issues relating to double taxation of a transaction as both goods and
services
●
● Boost to ‘Make in India' initiative: GST will give a major boost to the ‘Make
in India' initiative of the Government of India by making goods and services
produced in India competitive in the national as well as international market.
● Buoyancy to the Government Revenue: GST is expected to bring buoyancy to
the Government Revenue by widening the tax base and improving the
taxpayer compliance.
● Since introduction there were many amendments

34
LEARNING OUTCOMES

● Explore different carrier oppurtunities after graduation

● Enhance theory and practical experience

● Assessinterestsin different fields of study

● Adapting for working hours and abilities needed for jobs
● Develop communication, interpersonal and other critical skills .
● Enhancing the record of work experience.

35
 EXECUTIVE SUMMARY

This is an internship report, undertaken by SAI SAMANTH (1214316144) at SMARK

ASSOCIATES.

I have undergone internship for 3 month, in fulfillment of the requirement of the Bcom(hons)
+ACCA Degree, pursued at GITAM University .The purposes of the internship is to prepare
myself to serve the needs of industry and commerce more effectively upon graduation. This
included acquiring real life experience and exposure, thus gaining first-hand exposure of
working in the real world, granting the opportunity to learn more about my self-potentials and
abilities, getting connected and developing professional network, preventing CV from going
to trash during job application and transition to full-time job position.
This internship allowed me to harness the skill, knowledge and theoretical practice that I
learnt in the university and enabling me to transform theory into practical real life situations.

36
 REFERENCES

1 www.gst.gov.in
.

www.gstn.org
2
.
www.gstcouncil.gov.in
3
. www.cbec.gov.in

4 www.financialexpress.com
.
www.wikipedia.com
5
.
www.cleartax.com
6
.

7
.
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