MANAGEMENT TRAINING REPORT

on
Study of GOODS AND SERVICE TAX process
AT

Bajaj Electricals Ltd

(Faridabad)

Submitted to J C Bose University Science and Technology, YMCA Faridabad in partial

fulfillment for the award of the degree of Masters of Business Administration.

Submitted to: Submitted by: -

Mrs. Akansha Kathuria Sahil
Assistant Professor Roll. No: -
NGFCET University Roll No: -

Department of Management Studies

NGF College of Engineering & Technology Palwal

1
2
 CERTIFICATE

This is to certify that the Summer Internship Report entitled “Goods and Service Tax” by
“Sahil” is his original work. He has worked under my guidance for the required period. This
dissertation fulfils the requirement of the ordinance relating to Summer Internship Training.

No part of this report has ever been published by any other university or institution for any
purpose whatsoever.

Mrs. Akansha Kathuri

Assistant Professor
Department of Management Studies
NGFCET

3
 DECLARATION

Dated: - 12-December-2022

This is to certify that the present Summer Internship Report entitled “Goods and Service Tax” is my
original work. This Summer Internship Report fulfils the requirement of the “MBA” degree at this
University. It does not form the basis for the award of any degree or diploma from any other university or
institution.

Sahil (MBA 3rd Sem)

Roll. No: - 55555555
University Roll No: -55555555

4
 ACKNOWLEDGEMENT

The successful completion of the internship would not have been possible without the guidance and
support of many people. I express my sincere gratitude to Mr. MOHIT MANGLA, AUDITOR,
BUSINESS FINANCE, BAJAJ ELECTRICALS LTD,
Bengaluru, for allowing me to do my internship at BAJAJ ELECTRICALS LTD.
I would like to express my deepest appreciation to all those who provided me with the possibility to
complete this report. I have taken efforts in this project. However, it would not have been possible without
the kind support and help of many individuals and the organization. A special gratitude I give to our project
manager Mrs. Kusum Kathuria and my college mentor Mrs. Akansha Kathuria whose contribution in
stimulating suggestions and encouragement, helped me to coordinate my project especially in writing this
report.

I thank the staff of BAJAJ ELECTRICALS LTD, New Delhi for their support and guidance and for
helping me in the completion of the report.
I am thankful to my internal guide Mrs. Akansha Ksathuria, for his constant support and inspiration
throughout the project and invaluable suggestions, guidance, and also for providing valuable
information.
Finally, I express my gratitude towards my parents and family for their continuous support during the
study.
The teachers of the Department of Management Studies, Dr. Manpreet Kaur (HOD) and Mr. Neeraj
Chopra all have given different ideas to make more presentable reports with different tools and techniques
of research methodology. Moreover, I would like to appreciate to my college, especially Mr. Ashwani
Prabhakar (CEO, NGFCET, Palwal) and Dr. Sharat Kaushik (Director-principal), NGFCET, (Palwal)
for giving me this valuable opportunity to carry out this research project before I graduate from the
university. I have gained a lot of experience, knowledge and information which are related to carry out the
research. Otherwise, we would also like to thank for our classmates for their coordination, valuable
assistance and sharing knowledge about the research project and also their supportive actions. Therefore,
this can help us carried out our research project more easily and running smoothly.

(Sahil)

5
 TABLE OF CONTENTS

SL. NUMBER CONTENTS PAGE NUMBERS

1 Executive Summary 7-16

2 Theoretical Background Of The Study 17-50

3 Industry Profile &Company Profile 51-57

4 Application Of Theoretical Framework 58-60

5 Financial Statements And Reports 61-65

Learning Experience- Findings,

6 66-69
Suggestions And Conclusion

7 Bibliography 70

6
 About The Company

Bajaj Electricals Limited, a globally renowned and trusted company with a turnover of INR 4,813 crores (FY
21-22), is a part of India's leading business conglomerate the Bajaj Group. Its business portfolio spans
Consumer Products (Appliances, Fans, Cookware), Lighting (Consumer and Professional Lighting), and EPC
(Power Transmission and Distribution). Bajaj Electricals is a front-runner in the industry with its key brand
offerings comprising BAJAJ, Morphy Richards, and Nirlep.

The company has an expansive network of 18 branch offices, 600+ distributors, and more than 2.3 lakh retail
outlets across India, combined with over 500 consumer care centres, fortifying its dominant presence in the
consumer products sector.

Under their Lighting business, they offer a wide range of innovative LED lamps and fixtures including panels
and battens to consumers and are known for their prowess in street lighting, sports lighting, industrial
commercial and infrastructural lighting, and undertaking specialised illumination projects on a turnkey basis
amongst other solutions.

Their portfolio under the EPC segment includes EHV transmission line projects, EHV substations, monopoles
for transmission and distribution, and electrification projects amongst other solutions.

Founding Fathers
Jamnalal Bajaj
Jamnalal Bajaj was the founding father of the Bajaj Group. The adopted ‘fifth’ son of Mahatma Gandhi, and the
'merchant prince' who held the wealth he created in trust for the people of his country. Trust - a simple word that
contains a whole philosophy handed down by Jamnalal Bajaj to his successors. He valued honesty over profit,
actions over words and common good over individual gain.
 Mr. Anant Bajaj was the Managing Director of Bajaj Electricals Limited from June to August, 2018.

He started his career in Bajaj Electricals as a Project Coordinator in the year 1999, where he was
7
 responsible for setting up Rs. 450mn High Mast Manufacturing and Galvanizing Plant for the
Company at Ranjangaon, near Pune. As an acknowledgement of his growing understanding of the
intricacies of managerial duties, he was appointed as the General Manager, Special Assignments, in
2005. Under his leadership, the exports arm, Bajaj International Pvt. Ltd. made successful forays into
businesses as diverse as IT and Solar products. In February 2006, Mr. Bajaj was appointed to the
Board of Bajaj Electricals Ltd. as Executive Director, later appointed as the Joint Managing Director on
April 01, 2012.

Mr. Anant Bajaj was the driving force behind integrating some of the important initiatives in the
company, such as implementation and rollout of Theory of Constraints (TOC) and Range Reach
Expansion Program (RREP). This has led to maximum distribution & outreach for the organisation.
Because of this program, the organisation services 1.6 lakh retail counters across 440 districts every
week.

He was also responsible for setting up the R&D centre ‘AB Square’ that focuses on utilising cutting-
edge technologies to create next-generation appliances. He also got the entire organisation on board
with IoT analytics – a move that he believed will drive product development and create better
offerings. In the year 2014, he initiated ‘Project Evolve’ to enhance the customer experience in the
B2B and B2C segment. In addition, he had played a vital role in company’s strong connects with the
youth demographic of the nation by partnering with some of the top youth-centric events across India.
He was also on the Board of Director of Hind Lamps Ltd. and Starlite.

Brief History of Bajaj Electricals

 2018, Acquisition of Nirlep

We completed the acquisition of cookware brand Nirlep Appliances with 79.85 percent stake purchase. Nirlep
has become a subsidiary of Bajaj Electricals.
 2017, Set up of state-of-the-art Research and Development Centre

With an objective of creating innovative products that offers best solutions to consumers, a modern R&D
centre ‘AB SQUARE’ was set up at Navi Mumbai.
 2007, Starlight Limited Acquisition

We acquired 32% of the share capital of Starlite Lighting Limited, a company engaged in the manufacture of
Compact Fluorescent Lamps ("CFLs").
 2005, Distribution agreement with Trilux Lenze

Our company entered into a Distribution agreement with Trilux Lenze of Germany for high end technical
lighting.

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  2002-2003, Bajaj Ventures Ltd. ceases to be a subsidiary

Our company divested 50% of its shareholding in Bajaj Ventures Limited and Bajaj Ventures Limited ceased
to be a subsidiary of our Company. Our Company also discontinued manufacturing die-cast components.
 2002, Brand licensing agreement with Morphy Richards

Our company entered into a technical collaboration and brand licensing agreement with Morphy Richards,
United Kingdom, for the sales and marketing of electrical appliances under the brand name of "Morphy
Richards" in India.
 2000-2001, Manufacturing facility set up at Ranjangaon

Our company set-up our manufacturing facilities including a fabrication unit and a galvanizing plant at
Ranjangaon, near Pune for the manufacture of high masts, lattice towers, and related products, and the said
manufacturing facilities commenced commercial production with effect from April 1, 2001.
 1999-2000, Black & Decker Bajaj now a subsidiary of our Company

Black & Decker Bajaj became a 100% subsidiary of our Company upon our Company acquiring a further 50%
of the shareholding thereof from Black & Decker Corporation, pursuant to which Black & Decker Bajaj was
renamed as Bajaj Ventures Limited.
 1999, Established a wind energy generation unit in Satara

Our company established and commissioned a wind energy generation unit with an installed capacity of 2.8
MW at Village Vankusawade, Tal. Patan, District Satara, Maharashtra.
 1998, New manufacturing unit at Chakan

Our company established a new manufacturing unit at Chakan near Pune and commenced operations for
manufacturing fans and die-cast components. The production of fans at our manufacturing activities of the
Matchwell unit also, was gradually shifted to our Chakan unit.
 1993-1994, Joint venture with Black & Decker

Our company entered into a joint venture with Black & Decker Corporation, United States, for the manufacture
and marketing of power tools, household appliances, and related accessories, through a separate company
named Black & Decker Bajaj Private Limited, ("Black & Decker Bajaj").
 1964, Matchwell amalgamated with our Company

Matchwell Electricals (India) Limited, ("Matchwell"), a manufacturer of electric fans became a subsidiary of our
Company and subsequently, with effect from July 1, 1984, the business and undertaking of Matchwell was
amalgamated with our Company.
 1960, Bajaj Electricals Limited

9
 Subsequently the name of our Company was changed to Bajaj Electricals Limited, pursuant to a fresh
certificate of incorporation.
 1938, Radio Lamp Works

Our Company was incorporated as Radio Lamp Works Limited under the Indian Companies Act, 1913 as a
public company limited by shares, pursuant to a certificate of incorporation dated

10
 Chapter – 1

GOODS AND
SERVICE TAX

11
TAX

Tax in general is the imposition of financial charges upon an individual or a company by the
Government of India or their respective state or similar other functional equivalents ina state. The
computation and imposition of the varied taxes prevalent in the country are
carried on by the Ministry of Finance’s Department of Revenue. The Central Board of Direct
Taxes (CBDT) has collected Rs 1,117,416.5 crore (11.17 lakh crore) in total directtaxes in FY
2018-19.

GST – Goods and Service Tax

GST is considered as an indirect tax for the whole nation that would make India one unified
common market. It is a tax which is imposed on the sale, manufacturing and the usage of the
goods and services. It is a single tax that is imposed on the supply of the goods and services,
right from the manufacturer to the customer. The credits of the input taxes that are paid at each
stage will be available in the subsequent stage of value additionwhich makes GST essentially a
tax only on the value addition on each stage. The final consumers will bear only the tax charged
by the last dealer in the supply chain with the set of benefits that are at all the previous stages.

It is charged at the national and state level at similar rates for the same products and italso
replaces almost all the current indirect taxes that are imposed separately by the

12
Centre and the States. Goods & Services Tax is a destination based tax which means that the tax
is paid at the place of supply.

There are 3 types of GST

 CGST- Central Goods and service tax

 SGST- State Goods and service tax
 IGST- Integrated Goods and service tax

Why GST has been proposed?

Our Constitution empowers the Central Government to levy excise duty on manufacturing and
service tax on the supply of services. Further, it empowers the State Governments to levy sales
tax or value added tax (VAT) on the sale of goods. This exclusive division of fiscal powers has
led to a multiplicity of indirect taxes in the country. In addition, central sales tax (CST) is
levied on inter- State sale of goods by theCentral Government, but collected and retained by the
exporting States. Further, many States levy an entry tax on the entry of goods in local areas.

This multiplicity of taxes at the State and Central levels has resulted in a complex indirecttax
structure in the country that is ridden with hidden costs for the trade and industry. In order to
simplify and rationalize indirect tax structures, Government of India attempted various tax policy
reforms at different points of time. A system of VAT on services at the central government level
was introduced in 2002. The states collect taxes through state sales tax VAT, introduced in 2005,
levied on intra-state trade and the CST on inter-state trade. Despite all the various changes the
overall taxation system continues to be complexand has various exemptions.

13
This led to the idea of "One nation One Tax" and introduction of GST in Indian financialsystem.
This is simply very similar to VAT which is at present applicable in most of the states and can
be termed as National level VAT on Goods and Services with only one difference that in this
system not only goods but also services are involved and the rate oftax on goods and services
are generally the same.

Different types of taxes

Prevalence of various kinds of taxes is found in India. Taxes in India can be either direct or
indirect. However, the types of taxes even depend on whether a particular tax is beinglevied by
the central or the state government or any other municipalities.

14
In the earlier indirect tax rule, there were many indirect taxes levied by both state and centre.
States mainly collected taxes in the form of Value Added Tax (VAT). Every state had a different
set of rules and regulations. Interstate sale of goods was taxed by the Centre. CST (Central State
Tax) was applicable in case of interstate sale of goods. Otherthan above there were many
indirect taxes like entertainment tax, octroi and local tax thatwas levied by state and centre. This
led to a lot of overlapping of taxes levied by both state and centre.

For example, when goods were manufactured and sold, excise duty was charged by thecentre.
Over and above Excise Duty, VAT was also charged by the State. This lead to a tax on tax also
known as the cascading effect of taxes.

The following is the list of indirect taxes in the pre-GST rule:

 Central Excise Duty

 Duties of Excise
 Additional Duties of Excise
 Additional Duties of Customs
 Special Additional Duty of Customs
 Cess
 State VAT
 Central Sales Tax
 Purchase Tax
 Luxury Tax
 Entertainment Tax
 Entry Tax

15
  Taxes on advertisements
 Taxes on lotteries, betting, and gambling

CGST, SGST, and IGST has replaced all the above taxes. However, the chargeability ofCST
for Inter-state purchase at a concessional rate of 2%, by issue and utilization of c- Form is still
prevalent for certain Non-GST goods such as:
(i) Petroleum crude;
(ii) High-speed diesel;
(iii) Motor spirit (commonly known as petrol);
(iv) Natural gas;
(v) Aviation turbine fuel; and
(vi) Alcoholic liquor for human consumption. in respect of following transactions only:

 Resale
 Use in manufacturing or processing
 Use in the telecommunication network or in mining or in the generation or
distribution of electricity or any other power.

Objectives of GST

 To concentrate and conform One Country – One Tax.

 To ensure consumption based tax instead of Manufacturing.
 To ensure Uniform GST Registration, payment and Input tax Credit.
 To eliminate the cascading effect of Indirect taxes on single transaction.
 To ensure the subsume all indirect taxes at Centre and State Level under.
 To reduce tax evasion and corruption.
 To increase productivity.
 To increase Tax to GDP Ratio and Revenue surplus.
 To increase Compliance.

16
  To reduce economic distortions.

 Boost to exports: If Indian market will be competitive in pricing, then more and more
foreign players will try to enter the market, which results in more numbers of exporters
and benefits to Indian Market. As far there is no tax rate is finalized, butyes GST is much
needed in the countries where, it lacks transparency and complextaxation system. GST
will take away cascading effect of various taxes that are charged on sale/ production/
purchase and so. Products reaches to customers at very high rate as compared to
manufacturing, so with GST there will be only one tax and it will reduce burden to pay
off.

Types of Goods and Service Tax (GST)

1. Central Goods and Services Tax (CGST):

Under GST, CGST is a tax levied on Intra State supplies of both goods and services by the Central
Government and will be governed by the CGST Act. SGST will also be levied on the same Intra
State supply but will be governed by the State Government.

This implies that both the Central and the State governments will agree on combining their levies
with an appropriate proportion for revenue sharing between them. However, it is clearly mentioned
in Section 8 of the GST Act that the taxes be levied on all Intra-Statesupplies of goods and/or
services but the rate of tax shall not be exceeding 14%, each.

17
2. State Goods and Services Tax (SGST)

Under GST, SGST is a tax levied on Intra State supplies of both goods and services by the State
Government and will be governed by the SGST Act. As explained above, CGST will also be levied
on the same Intra State supply but will be governed by the Central Government.

An example for CGST and SGST:

Let’s suppose Ram is a dealer in Karnataka who sold goods to Sham in Karnataka worth Rs.
10,000. The GST rate is 18% comprising of CGST rate of 9% and SGST rate of 9%. In such case,
the dealer collects Rs. 1800 of which Rs. 900 will go to the Central Government and Rs. 900 will
go to the Karnataka Government.

3. Integrated Goods and Services Tax (IGST):

Under GST, IGST is a tax levied on all Inter-State supplies of goods and/orservices and will be
governed by the IGST Act. IGST will be applicable on any supply of goods and/or services in both
cases of import into India and export from India.

An example for IGST:

18
Consider that a businessman Ramesh from Karnataka had sold goods to Anil from Kerala worth
Rs. 1,00,000. The GST rate is 18% comprised of 18% IGST. In such case, the dealer has to charge
Rs. 18,000 as IGST. This IGST will go to the Centre.

Why the split into SGST, CGST, and IGST?

India is a federal country where both the Centre and the States have been assigned the powers to
levy and collect taxes. Both the Governments have distinct responsibilities to perform, as per the
Constitution, for which they need to raise tax revenue.

The Centre and States are simultaneously levying GST.

The three types tax structure is implemented to help taxpayers take the credit against eachother,
thus ensuring “One Nation, One Tax”.

New
Transactions Old system
system

THE CETRAL AND THE

SERVICE TAX / STATE WILL SHARE

DOMESTIC SGST + CENTRAL THE REVENUE B/W

TRANSACTION CGST EXCISE + VAT THEM EQUALLY

CENTRAL BASED ON THE

SALES TAX + DESTINATION

STATE TO STATE EXCISE/ CENTRALWILL SHARE

TRANSACTION IGST SERVICE TAX THE REVENUE.

19
For example:

Interstate sale in this two tax are involved. One is the CGST and another SGST is to be levied.
Within the state deal is to be payable to incorporate Goods and service.

As I said before the meaning of GST – “GST is a comprehensive, multi-stage, destination-based

tax that will be levied on every value addition.” Let we try to understand that means.

Benefits of GST

To Trade:

1. Reduction in multiplicity of taxes.

2. Mitigation of cascading / double taxation.

20
 3. More efficient neutralization of taxes especially for exports.
4. Development of common national market.
5. Simple tax regime –
a) Fewer rates and exemptions.

b) Distinction between Goods and Services no longer required.

To Consumers:

1. Simpler Tax system

2. Reduction in prices of goods and services due to elimination of cascading.
3. Uniform prices throughout the country.
4. Transparency in taxation system. Increase in employment opportunities.

Taxes which are not to be subsumed

GST may not subsume the following taxes within its ambit:

1. Basic Custom Duty: These are protective duties levied at the time of Import ofgoods
into India.
2. Export Duty: This duty is imposed at the time of export of certain goods whichare
not available in India in abundance.
3. Road and Passenger Tax: These are in the nature of fees and not in the nature oftaxes
on goods and services.
4. Toll tax: these are in the nature of user fees and not in the nature of taxes on goodsand
services.

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 Chapter – 2

History and Background

The GST journey began in the year 2000 when a committee was set up to draft law. It took 17
years from then for the Law to evolve. In 2017 the GST Bill was passed in theLoksabha and
RajyaSabha On 1st July 2017 the GST Law came into force.

Bringing together 35 diverse stakeholders to nurture and roll out an indirect tax transformation
is the hallmark of Goods and Services Tax (GST) introduction. It has hadits share of relentless
efforts over several years, to bring all states and union territories insync. As we complete one
year of the GST, it would be worthwhile to look back to see how the journey has been so far.

The key principles adopted for designing GST were - Widening of the tax base,
elimination of the cascading effect, transparency and simplicity, and automation of
compliance.

It has taken over six decades to build the existing tax base, and only six months to amplify it.
This is a significant feat, enabling wider coverage, more transparency and robust tax collections.
As a matter of fact, it is also improving direct tax collections as aconsequence.

Mitigation of the cascading impact has resulted in an increase of Indian competitiveness inthe
global market. Businesses now recover much larger tax credits than before.

Additionally, the anti-profiteering provisions served as a check on any potential inflationary

impact. With the exception of petroleum products, the government seems to

22
have firmly held the reins on the inflation rates post GST. This marks an exception fromthe
general global experience of price rise post VAT/ GST.

Bills Passed For The Implementation Of GST Regime:

1) The Central Goods and Services Tax Bill 2017 (The CGST Bill)
2) The Integrated Goods and Services Tax Bill 2017 (The IGST Bill)
3) The Union Territory Goods and Services Tax Bill 2017 (The UTGST Bill)
4) The Goods and Services Tax (Compensation to the States) Bill 2017 (The
Compensation Bill)
 The CGST Bill makes provisions for levy and collection of tax on intra-state
supply of goods or services or both by the Central Government.

23
  IGST Bill makes provisions for levy and collection of tax on inter-state supply ofgoods
or services or both by the Central Government.
 The UTGST Bill makes provisions for levy on collection of tax on intra-UT supply of
goods and services in the Union Territories without legislature. Union Territory GST is
akin to States Goods and Services Tax (SGST) which shall be levied and collected by
the States/Union Territories on intra- state supply of goodsor services or both.

 The Compensation Bill provides for compensation to the states for loss of revenuearising
on account of implementation of the goods and services tax for a period of five years as
per section 18 of the Constitution (One Hundred and First Amendment) Act, 2016.

Various Tx Rates imposed by GST

24
5%  Household necessities such as edible oil, sugar, spices, tea, and coffee (except
instant) are included. Coal ,Mishti/Mithai (Indian Sweets) and Life-saving
drugs are also covered under this GST slab
 Cashew nuts/cashew nuts in shell
 Ice and snow
 Bio gas
 Insulin
 Aggarbatti
 Kites
 Coir mats, matting and floor covering
 Pawan Chakki that is Wind-based Atta Chakki
 Postage or revenue stamps, stamp-postmarks, first-day covers, etc.
 Numismatic coins
 Braille paper, braille typewriters, braille watches, hearing aids and other
appliances to compensate for a defect or disability
 Fly-ash blocks
 Walking sticks
 Natural cork
 Marble rubble

12%  Preparations of vegetables, fruits, nuts or other parts of plants,

including pickle, murabba, chutney, jam, jelly
 Ketchups, sauces and mustard sauce but excluding curry paste,
mayonnaise and salad dressings, mixed condiments and mixed
dressings
 Bari made of pulses including mungodi
 Menthol and menthol crystals, peppermint, fractionated/de-terpenated
mentha oil, dementholised oil, Mentha piperita oil and spearmint oil
 All diagnostic kits and reagents
 Plastic beads
 Exercise books and note books
 Glasses for corrective spectacles and flint buttons

25
  Spoons, forks, ladles, skimmers, cake servers, fish knives, tongs
 Fixed Speed Diesel Engines
 Two-way radio (Walkie talkie) used by defence, police and paramilitaryforces
etc.
 Intraocular lens
 Corrective spectacles
 Playing cards, chess board, carom board and other board games, likeludo,
etc.
 Debagged/roughly squared cork
 Items manufactured from natural cork
 Agglomerated cork

 Hair oil, toothpaste and soaps, capital goods and industrial intermediariesKajal
18%
pencil sticks
 Dental wax
 Plastic Tarpaulin
 School satchels and bags other than of leather or composition leather; toilet
cases, Hand bags and shopping bags of artificial plastic material, cotton or jute;
Handbags of other materials excluding wicker work or basket work
 Headgear and parts thereof
 Precast Concrete Pipes
 Salt Glazed Stone Ware Pipes
 Aluminium foil
 All goods, including hooks and eyes
 Rear Tractor tyres and rear tractor tyre tubes
 Rear Tractor wheel rim, tractor centre housing, tractor housing
transmission, tractor support front axle

26
  Weighing Machinery other than electric or electronic weighing
machinery
 Printers other than multifunction printers
 Ball bearing, Roller Bearings, Parts & related accessories
 Transformers Industrial Electronics
 Electrical Transformer
 Static Converters (UPS)
 CCTV including CCTV with video recorders
 Set top Box for TV
 Computer monitors not exceeding 17 inches
 Electrical Filaments or discharge lamps
 Winding Wires, Coaxial cables and Optical Fiber
 Perforating or stapling machines (staplers), pencil sharpening machines
 Baby carriages
 Instruments for measuring length, for use in the hand (for example,
measuring rods and tapes, micrometers, callipers)
 Bamboo furniture
 Swimming pools and paddling pools
 Televisions/Monitors (upto 32 inches)
 Power banks powered by Lithium-ion batteries
 Sports goods, games consoles and related items with HS code 9504
 All items with HS code 8483 including gear boxes, transmission cranksand
pulleys
 Used or retreaded pneumatic rubber tires
.

Luxury items such as small cars , consumer durables like AC and Refrigerators,
28%
premium cars, cigarettes and aerated drinks , High-end motorcycles are
included.

27
Some industries and products were exempted by the government and remain untaxed under
GST, such as dairy products, products of milling industries, fresh vegetables &fruits, meat
products, and other groceries and necessities.

Checkposts across the country were abolished ensuring free and fast movement of goods.

The Central Government had proposed to insulate the revenues of the States from the impact of
GST, with the expectation that in due course, GST will be levied on petroleumand petroleum
products. The central government had assured states of compensation for any revenue loss
incurred by them from the date of GST for a period of five years.

Registration under GST

Background

Model GST law provides for registration of various persons in different situations. Thisarticle
aims at enlightening readers about the persons who are required to take registration and other
provisions related to registrations.

Threshold Limit

In order to provide relaxation to small supplies it is provided that every supplies shall beliable to
be registered under this act in the State form where it makes a taxable supply of goods and
services if its aggregate turnover in a financial year exceeds Rs. 9 lakhs .
However, this limit is Rs. 4 lakhs for the persons conducting business in NE statesincluding
Sikkim.

Here, aggregate turnover means the aggregate value of all taxable and non-taxable supplies,
exempt supplies and exports of goods and/ or services of a person having thesame PAN, to be
computed on all India basis and excludes taxes, if any, charged under

28
the CGST Act, SGST Act and the IGST Act, as the case may be. But aggregate turnoverdoes not
include the value of supplies on which tax is levied on reverse charge basis and the value of
inward supplies.

Person requiring Registration

Following are the persons required to take registrations under this act –

a) Persons making inter-state supply, irrespective of any threshold limit.

b) Casual taxable persons, irrespective of the threshold specified.

c) Persons who are required to pay tax under reverse charge

d) Non- resident taxable persons

e) Persons who are required to deduct tax under section 37 (TDS)

f) Agents

g) Input service distributors

h) Supply of goods or services through electronic commerce operator, other than branded
services

i) Every electronic commerce operator

j) Aggregators who supplies service under his brand name or his trade name

k) Suppliers liable to be registered where it makes a taxable supply of goods of services ifits
aggregate turnover in a financial year exceeds Rs 9 lakhs

l) Transferee in case where business is transferred.

m) Businesses with turnover above the threshold limit of Rs. 40 lakhs* (Rs. 10
Lakhs for North-Eastern States, J&K, Himachal Pradesh and Uttarakhand)

29
Documents Required for GST Registration

 PAN of the Applicant.

 Aadhaar Card.
 Proof of business registration or Incorporation certificate.
 Identify and Address proof of Promoter.
 Address proof of the place of business.
 Bank Account statement/ Cancelled cheque
 Digital Signature.
 Letter of Authorization/ Board Resolution of Authorized signatory.

GST Composition Scheme

Composition Scheme is a simple and easy scheme under GST for taxpayers. Small taxpayers can
get rid of tedious GST formalities and pay GST at a fixed rate of turnover.This scheme can be
opted by any taxpayer whose turnover is less than Rs. 1.0 crore*.

*CBIC has notified the increase to the threshold limit from Rs 1.0 Crore to Rs. 1.5
Crores.

Who can opt for Composition Scheme

A taxpayer whose turnover is below Rs 1.0 crore* can opt for Composition Scheme. In case of
North-Eastern states and Himachal Pradesh, the limit is now Rs 75* lakh.

As per the CGST (Amendment) Act, 2018, a composition dealer can also supply servicesto an
extent of ten percent of turnover, or Rs.5 lakhs, whichever is higher. This amendment will be
applicable from the 1st of Feb, 2019. Further, GST Council in its 32nd meeting proposed an
increase to this limit for service providers on 10th Jan 2019*.

Turnover of all businesses registered with the same PAN should be taken into
consideration to calculate turnover.

30
Who cannot opt for Composition Scheme

The following people cannot opt for the scheme-

 Manufacturer of ice cream, pan masala, or tobacco

 A person making inter-state supplies
 A casual taxable person or a non-resident taxable person
 Businesses which supply goods through an e-commerce operator

What are the conditions for availing Composition Scheme?

The following conditions must be satisfied in order to opt for composition scheme:

 No Input Tax Credit can be claimed by a dealer opting for composition scheme
 The dealer cannot supply GST exempted goods
 The taxpayer has to pay tax at normal rates for transactions under the Reverse
Charge Mechanism
 If a taxable person has different segments of businesses (such as textile, electronic
accessories, groceries, etc.) under the same PAN, they must register all such businesses
under the scheme collectively or opt out of the scheme.
 The taxpayer has to mention the words ‘composition taxable person’ on everynotice
or signboard displayed prominently at their place of business.
 The taxpayer has to mention the words ‘composition taxable person’ on every billof
supply issued by him.

As per the CGST (Amendment) Act, 2018, a manufacturer or trader can now also supply
services to an extent of ten percent of turnover, or Rs.5 lakhs, whichever is higher. This
amendment will be applicable from the 1st of Feb, 2019.

31
How can a taxpayer opt for composition scheme?

To opt for composition scheme a taxpayer has to file GST CMP-02 with the government.This can
be done online by logging into the GST Portal.

This intimation should be given at the beginning of every Financial Year by a dealerwanting to
opt for Composition Scheme.

How Should a Composition Dealer raise bill?

A composition dealer cannot issue a tax invoice. This is because a composition dealer cannot
charge tax from their customers. They need to pay tax out of their own pocket.

Hence, the dealer has to issue a Bill of Supply.

The dealer should also mention “composition taxable person, not eligible to collect tax on
supplies” at the top of the Bill of Supply.

What are the GST rates for a composition dealer?

Following chart explains the rate of tax on turnover applicable for composition dealers :

32
How should GST payment be made by a composition dealer?

GST Payment has to be made out of pocket for the supplies made.

The GST payment to be made by a composition dealer comprises of the following:

 GST on supplies made.

 Tax on reverse charge
 Tax on purchase from an unregistered dealer*

*Only on the specified categories of goods and services and well as the notified class of
registered persons with effect from 1st Feb 2019 but is yet to be notified. Hence, not
applicable until then.

What are the returns to be filed by a composition dealer?

A dealer is required to file a quarterly return GSTR-4 by 18th of the month after the end of the
quarter. Also, an annual return GSTR-9A has to be filed by 31st December of next financial
year*.

What are the advantages of Composition Scheme?

The following are the advantages of registering under composition scheme:

 Lesser compliance (returns, maintaining books of record, issuance of invoices)

 Limited tax liability
 High liquidity as taxes are at a lower rate

33
What are the disadvantages of Composition Scheme?

Let us now see the disadvantages of registering under GST composition scheme:

 A limited territory of business. The dealer is barred from carrying out inter-state
transactions
 No Input Tax Credit available to composition dealers
 The taxpayer will not be eligible to supply exempt goods or goods through an e-
commerce portal.

Input Tax Credit

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

Here’s how-

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

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

34
Who can claim ITC?

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

a. The dealer should be in possession of tax invoice

b. The said goods/services have been received

c. Returns have been filed.

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

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

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

35
What can be claimed as ITC?

ITC can be claimed only for business purposes. ITC will not be available for goods or services
exclusively used for: a. Personal use b. Exempt supplies c. Supplies for which ITC is
specifically not available.

How to claim ITC?

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

36
Reversal of Input Tax Credit

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

ITC will be reversed in the following cases-

1) Non-payment of invoices in 180 days– ITC will be reversed for invoices which werenot
paid within 180 days of issue.

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

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

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

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

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

37
Special cases of ITC

 ITC for Capital Goods.

 ITC on Job work.
 ITC provided by Input service distributor.
 ITC on Transfer of Business.

Stages of GST

There are multiple change-of-hands an item goes through along its supply chain: from
manufacture to final sale to the consumer.

Let us consider the following case:

1. Purchase of raw materials.

2. Production or manufacture.
3. Warehousing of finished goods.
4. Sale to wholesaler.
5. Sale of the product to the retailer.
6. Sale to the end consumer.

Goods and Service Tax is levied on each of these stages which makes it is multi stage tax.

38
Important Aspects of GST

1. Levy of GST: The center will levy Central GST (CGST) and the states will levy State GST
(SGST) on the supply of goods and services within a state. The center will levy IGST in the
case of (i) inter- state supply of goods and services, (ii) imports and exports,and (iii) supplies to
and from special economic zones.

2 .Exemptions from GST: The Centre Exempt certain goods and services from the purview
of GST through a notification. This will be based on recommendations of theGST Council.

3. Turnover limit under GST and tax right over low turnover entities: GST is applied
when turnover of the business exceeds Rs 40lakhs per year (Limit is Rs 10lakhs for the North-
Eastern States). Traders who would like to get input tax credit should makea voluntary
registration even if their sales are below Rs 40 lakh per year. Traders supplying goods to other
states have to register under GST, even if their sale is less thanRs 40 lakh. There is a
composition scheme for selected group of tax payers whose turnover is up to Rs 1.5 crore
ayear. ( Rs. 75 Lakhs for North eastern States)

4. The four-tier rate structure: The GST proposes a four-tier rate structure. The tax slabs are
fixed at 5%, 12%, 18% and 28% besides the 0% tax on essentials. Gold is taxed at 3%. The
center has strictly demanded and got an additional cess on demerit luxury goods that comes
under the high 28% tax. Essential commodities like food items are exempted from taxes under
GST.Other consumer goods which are common items will be taxed at 5%. GST seems to have two
standard rates – 12% and 18%. GST rate structure forthe goods and services are fixed by
considering different factors including luxury/necessity nature.

39
5. Tax revenue appropriation between the center and states: The center and states willshare
GST tax revenues at 50:50 ratio(except the IGST). This means that if a service is taxed at 18%,
9% will go to the center and 9% will go to the concerned state.

6. Taxable amount (value of supply): The GST levied on the supply of goods and services,
whose value will include: (i) price paid on the supply, (ii) taxes and duties levied under other
tax laws, (iii) interest, late fee, penalties for delayed payments, amongothers.

7. Refunds and welfare fund: Any taxpayer may apply for refund of taxes in cases including:
(i) payment of excess taxes, or (ii) unutilised input tax credit. The refund may becredited to the
taxpayer, or to a Consumer Welfare Fund under certain circumstances.

8. Returns: Every taxpayer should self-assess and file tax returns on a monthly basis by
submitting:

(i) details of supplies provided, (ii) details of supplies received, and (iii) payment of tax. In
addition to the monthly returns, an annual return will have to be filed by each taxpayer.

9. Apportionment of IGST revenue: The IGST collected will be apportioned between the
center and the state where the goods or services are consumed. The revenue will be apportioned
to the center at the CGST rate, and the remaining amount will be apportionedto the consuming
state.

40
10. Dual Tax Structure:Centre and State both will levy tax on every transaction related tosupply
of goods/ services.Tax to be levied by Centre and States to be called Centre GST (‘CGST’) and
State GST (‘SGST’).

11. Supply without consideration:

 Supply between two distinct establishments of same legal entity taxable even
without consideration.
 Supply of goods between agent and principal taxable
 ‘Gifts‘ by employer and employee for an amount exceeding INR 50,000 taxable

12. Imports/Exports:

 Imports will be treated as inter - state supplies and would attract IGST, apart fromBCD
on goods.
 Exports to be zero rated.

13. Exemptions / Concessions:

 Exemption to various goods and services.

 Existing incentive schemes to be converted to ‘reimbursement route’.
 Certain petro products though in GST, would continue to attract present taxes.GST
to be activated at a later date.

14. Compliance/ Tax Administration:

 Online system for tax compliances

 GST Facilitation centers, GSPs, ASPs to assist tax payers for tax filings
registrations etc.

41
Key Features of GST

1. GST would be applicable on “supply” of goods or services as against the present

concept of tax on the manufacture of goods or on sale of goods or on provision of
services.

2. GST would be based on the principle of destination based consumption taxation as

against the present principle of origin based taxation.

3. GST on five specified petroleum products ( Crude, Petrol, Diesel, ATF & Natural gas) would
be applicable from a date to be recommended by the GSTC.

4. Electronic filing of returns by different class of persons at different cutoff dates.

5. Elaborate transactional provisions have been provide for smooth transition of existing
taxpayers to GST regime.

6. CGST, IGST and SGST/UTGST are levied at rates that are mutually accepted by thestates
and centre.

42
GST will replace the Central Taxes mentioned below:

 Duties of Excise (medicinal and toilet needs)

 Central Excise Duty
 Additional Duties of Excise (Goods of Special Importance)
 Additional Duties of Customs (CVD)
 Service Tax
 Special Additional Duty of Customs (SAD)
 Additional Duties of Excise (Textiles and Textile Products)
 Cess and Surcharges
 GST will subsume the following state taxes:
 Central Sales Tax
 Entry Tax
 State VAT
 Luxury Tax
 Purchase Tax
 Entertainment Tax, except that levied by local entities
 Taxes on lotteries and gambling
 Taxes on advertisements
 State cesses and surcharges

43
Drawbacks of GST:

1. According to the experts, terms such as GST which includes CGST, SGST, and IGST isnothing
but just a new name in accordance with the existing tax systems. Kind of old wine in a new bottle.

2. The Service Tax which stood at 15% in the previous regime has now been replaced with
GST at 18%. As such many services have become costlier with telecom, airline andbanking
affected majorly. In fact, insurance and petroleum are also said to be majorly affected by the
enactment of GST Tax.

3. The GST Act has given the control of businesses to Central and State Governmentswith
businessmen binding by-laws. This has given rise to complexity for many businessmen
across the nation.

44
4. Post GST implementation, the first few instances of application have resulted in high tax outgo
for businesses. Businesses are trying to claim the credit of input tax but several cases of mismatch of
data are coming up. As a result, there is chaos among the tax filers.

5. The opposition has called it as a Disability Tax as many of the things related to disabled
people which were earlier tax-free are now included in GST taxation. Prior to implementation of
GST, brail paper, typewriter, hearing aid and motorised wheelchair were tax-free whereas these
things are being taxed now. The opposition has made pleas toroll back the tax on such items.

6. On one end, the government is trying to give a push to banking services and insurancein
India and on the other end, the government has decided to tax banking and insurance service at
higher rates when compared to the previous rates.

7. GST has also had an impact on discount and reward programs as well. The product isbeing
taxed on the rates pre-discount whereas the products were earlier taxed at post discount
prices. Most of the companies have also suspended reward programs for temporary basis
because of complexities of GST.

8. The government has chosen a mid-year launch for GST and this will lead to problems intaxation
and reporting during the end of the financial year. Ideally, the government shouldhave launched
GST at end of financial year as this would have avoided a lot of confusionduring taxation and
reporting.

45
9. As per GST, the seller requires registering in all the states that it does business in and ithas
increased the complexity for the seller. The government should have created a provision for
centralised registration of State GST as this would have helped many sellersduring the rollout.

Impacts of GST on Common Man

The GST transition has been smooth. The big question is how GST will impact a
common man’s budget.GST is stated to be one of the biggest tax reforms in India, which would
not only impact the business but also common man. The primary impact to be felt by the
consumers would change in prices of goods and services on account of GST rates. In terms of
impact in prices, while services would mostly be more expensive in the initialphases, impact on
prices of goods could be a mixed bag. In the long run, once the benefitsof GST are expected to
kick in in terms of higher input credits and reduction in cascading effect, it is anticipated that the
inflationary effect will come down and prices, in general, would come down and stabilize.

In services, the tax rate has increased from 15% to 18%. The 3% increase could potentially
mean an increase in the price of services by 3% for the common man, in theshort run.

46
47
Types of GST Returns

1. GSTR-1

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

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

2. GSTR-2A

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

3. GSTR-2

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

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

4. GSTR-3

GSTR-3 is a monthly summary return for furnishing summarized details of all outward supplies
made, inward supplies received and input tax credit claimed, along with details

48
of the tax liability and taxes paid. This return is auto-generated on the basis of the GSTR-1 and
GSTR-2 returns filed.

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

5. GSTR-3B

GSTR-3B is a monthly self-declaration to be filed, for furnishing summarized details ofall

outward supplies made, input tax credit claimed, tax liability ascertained and taxes paid.

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

6. GSTR-4 / CMP-08

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

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

7. GSTR-5

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

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

49
8. GSTR-6

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

9. GSTR-7

GSTR-7 is a monthly return to be filed by persons required to deduct TDS (Tax deductedat
source) under GST. GSTR 7 will contain details of TDS deducted, the TDS liability payable and
paid and TDS refund claimed, if any.

10. GSTR-8

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

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

11. GSTR-9

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

50
GSTR-9 is required to be filed by all taxpayers registered under GST*, except taxpayerswho
have opted for the Composition Scheme, Casual Taxable Persons, Input Service Distributors,
Non-resident Taxable Persons and persons paying TDS under section 51 ofCGST Act.

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

12. GSTR-9A

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

*GSTR-9A filing for Composition taxpayers has been waived off for FY 2017-18 and FY2018-
19 as per the decision taken in the 27th GST Council meeting.

13. GSTR-9C

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

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

14. GSTR-10

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

51
15. GSTR-11

GSTR-11 is the return to be filed by persons who have been issued a Unique Identity
Number(UIN) in order to get a refund under GST for the goods and services purchased by them
in India. UIN is a classification made for foreign diplomatic missions and embassies not liable to
tax in India, for the purpose of getting a refund of taxes. GSTR-11will contain details of inward
supplies received and refund claimed.

Due Dates of filing GST Returns

52
53
54
Late filing of GST Returns

 Return filing is mandatory under GST. Even if there is no transaction, you mustfile a
Nil return.
 You cannot file a return if you do not file previous month/quarter’s return.
 Hence, late filing of GST return will have a cascading effect leading to heavy finesand
penalty.
 The late filing fee of the GSTR-1 is populated in the liability ledger of GSTR-3Bfiled
immediately after such delay.
Interest/late fees to be paid

 Interest is 18% per annum. It has to be calculated by the taxpayer on the amount of
outstanding tax to be paid. It shall be calculated on the Net tax liability identified in the
ledger at the time of payment. The time period will be from the next day of filing due
date till the actual date of payment.
 As per GST Act Late fee is Rs. 100 per day per Act. So it is 100 under CGST & 100
under SGST. Total will be Rs. 200/day. The maximum is Rs. 5,000. There isno late fee
on IGST.

55
 Chapter 03 Company

Profile

BAJAJ ELECTRICALS LTD MPANY

A firm with depth and expertise of the large firms with the personal attention, valuefor
money focus and relationship approach of the smaller firms, was established in the year
1984.

Since then the firm has been providing robust compliance services and growth
navigation solutions on complex business and financial matters through focused
practice groups.

Constant hunger for new and updated knowledge is the key to SKC’s Success.

SKC is committed to deliver a range of professional solutions tailored to match eachclient's needs
in the most efficient & cost-effective way.

BAJAJ ELECTRICALS LTD MPANY

(Advocacy and Chartered Accountancy Services)

SQUARE FEET LEGAL SERVICES Pvt. Ltd.

(Title Verification Services)

You can contact them by sending an email to skcauditors@gmail.com or visit them at their
registered address NO.106, First Floor, Blue Cross Chambers, Infantry RoadCross,
Bengaluru – 560- 001.
Tel: +91-80-25582965, 41140992

56
Our Vision

To enable our client to realize and reach their potential by optimal leverage ofresources
and constantly strive to better them.

Our Mission

 To establish Trust, Comfort and Convenience as a one stop businesssolutions

provider.
 To provide simple, effective and progressive solutions for business.
 To be a partner that enables and ensures business growth.

Our Help

To establish Trust, Comfort and Convenience as a one stop businesssolutions provider.

Our Supports

To provide simple, effective and progressive solutions for business.

57
Key Business:

Book Keeping

Bookkeeping is the recording of financial transactions, and is part of the process of

accounting in business.[1] Transactions include purchases, sales, receipts, and

payments by an individual person or an organization/corporation. There are several
standard methods of bookkeeping, including the single-entry and double-entry
bookkeeping systems. While these may be viewed as "real" bookkeeping, any process for
recording financial transactions is a bookkeeping process.

Functions:

 Recording of accounting transactions in accounting software on

regular basis as per accounting norms.
 Preparing accounting manuals

 Preparation of Various Reconciliation Statements

 Preparation of Aging Analyses of Receivables and Payables

 Preparation of Periodical Financial Statements.

 Handling / preparing / making payments of all statutory areas relating to

Service Tax, VAT, PF, PT, TDS and E-TDS & other Returns.

58
Project Consultancy

A project management consultancy provides expert project management advice to external

businesses. A company may hire a project management consultancy if it lacks project
management expertise. Or if it wants project management advice froman external, impartial
party.

Functions:

 Preparation of detailed project reports.

 Liaison with financial institutions/banks.
 Assistance in deciding Various Financial Options.
 Assistance in preparation of Bank CMA & QIS Statements
 Capital Structuring.

Risk Assessment & Management

Risk assessment is the identification of hazards that could negatively impact an organization's
ability to conduct business. These assessments help identify these inherent business risks and
provide measures, processes and controls to reduce theimpact of these risks to business
operation.

Functions:
 Identification of Risk.
 Assessment Risk.
 Potential Risk Treatments.
- Risk Avoidance.
- Risk Reduction

59
 - Risk Retention.
- Risk Transfer.

 Formulating a Comprehensive Risk Mitigation Plan.

 Implementation.
 Review and Evaluation of the plan.

Preparation of MIS Reports

MIS stands for management information system. Business managers at all levels ofan
organization, form assistant managers to executives, rely on reports generated from these
systems to help them evaluate their business daily activities or problemsthat arise, make
decisions, and track progress. MIS system reporting is used by businesses of all sizes and
in every industry.

Functions:

 Business Achievements and Progress.

 Preparation of Budgets and Budget Variance Reports.

 Branch performance monitoring

 Operating cost analysis, activity analysis and portfolio analysis.

60
Payroll Processing

Payroll is a list of employees who get paid by the company. Payroll also refers to the total
amount of money employer pays to the employees. As a business function, it involves:

Functions:

 Providing end to end solutions

 Implementation of Payroll system & standard

 Assistance in structuring of employee salary, perquisites &

reimbursement packages in conformity with the rules of the
Company\Tax Laws
 Database maintenance & Data Security

 Payroll processing, generation of pay slips, bank advise, etc., on monthly basis

 Processing of Final Settlement (F&F)

 Processing & generation of reports on monthly, quarterly, half yearly &

annual relating to PF, PT, ESI, TDS including Form 16.
 Payroll Auditing.

61
Fixed Asset Preparation and Management

Fixed assets management is an accounting process that seeks to track fixed assetsfor the
purposes of financial accounting, preventive maintenance, and theft deterrence.

Organizations face a significant challenge to track the location, quantity, condition,

maintenance and depreciation status of their fixed assets. A popular approach to tracking
fixed assets uses serial numbered asset tags, which are labels often with barcodes for easy
and accurate reading. The owner of the assets can take inventory with a mobile bar code
reader and then produce a report.

Functions:

 Identification of Fixed assets physically.

 Reconciliation of Assets with the documents.

 Labeling of assets with Bar codes and RFID Tags.

 Development of effective fixed asset management system.

 Computerization of Fixed asset management system.

 Monitoring of Fixed assets constantly.

 Reviewing the Fixed asset management policies.

62
 Chapter-4

SWOT Analysis

Strengths:

 Skilled Manpower.
 Low cost advantage.

Weaknesses:

 Small player in Domestic market.

 Limited Domain.

Opportunities:

 Scope of expansion.
 Huge market.
 Huge potential in domestic market

Threats:

 Competition by Indian companies in domestic market.

 Presence of big companiesin market.

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McKinsey 7’s Framework

1. Strategies –

 Client Focused Strategies to Achieve Growth.

 Focuses on limited number of organizations.

 Commands premium margins.

 Develops Deep Industry Knowledge.

 Invests on Organisation Building.
 Believe in Organic Growth Through Risk Averse Strategies

2. Staff –

Focuses on Quality of Human Resources.

At the entry level, KPMS Hires candidates with Good Academic Records, Deepfinancial
knowledge and High Learning ability.

3. Skills –

Focuses on continuous skill improvement.

Knowledge Management given special focus.

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4. Style –

Emphasis on Developing Leadership Qualities.

Open Door Policy and Continuous Sharing of Information.
Inputs from the employee in Decision Making.

5. Shared Values ( C-Life) :

Client Value: To surpass client expectations consistently.

Leadership by example: To set standards in our business and transactions, and bean example
for the industry and ourselves.
Integrity & Transparency: To be ethical sincere and open inall our transactions.
Fairness: To be objective and transaction oriented and thereby earn trust andrespect.
Excellence: To strive relentlessly, constantly improve ourselves, ourteams.

6. Structure –
Follows:
 Free Form Organizational Structure.
 Industry Business Unit concept
 Small Business unit.

7. Systems:

SKC has always been keen on the quality systems.

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Module 5
Financial Statements

66
 Chapter 6:

Learning Experience

Performed Taxable Turnover by calculating GST of the respective client companies.

Understanding the GST scheme i.e. regular and composite based on whichthe GST
filing needs to be done.
Filing various GSTR forms based on monthly transactions made by theclient
companies.
Computing taxable income from various sources.
Learning the various tax deductions and how individuals can avail them toreduce the
tax burden.
Understanding the functioning of Tally and its importance for compliancepurpose.
Bank statements, Bills of Sales and Purchases entered into Tally for the respective
client companies.

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 Conclusion

From the above discussion, it is clear that GST is basically an indirect tax that brings most of the
taxes imposed on most goods and services, on manufacture, sale and consumption of goods and
services, under a single domain at the national level. In the present system, the taxes are levied
separately on goods and services. The GST is a consolidated tax based on a uniform rate of tax
fixed for both goods and services and it is payable at the final point of consumption. At each
stage of sale or purchase In thesupply chain, this tax Is collected on value added goods and
services, through a tax credit mechanism, introduction of the Value added Tax (VAT) at the
Central and the State level has been considered to be a major step — an important breakthrough
— in the sphere of indirect tax reforms in India. If the VAT is a major improvement over the pre
existing Central excise duty at the national level and the sales tax system at theState level, then
the Goods and Services Tax (GST) will indeed be a further significant improvement - the next
logical step - towards a comprehensive indirect tax reforms in the country. Once GST Is
Implemented, most of the current challenges of this move will be a story of the past. India will
become a single market where goods can move freely and there will lesser compliances to deal
with for businesses. The benefits of GST will definitely outweigh the disadvantages of GST.

In review this internship has been an excellent and a rewarding experience. I have been able to
meet and network with so many people and I hope I will be able to helpget
opportunities in the future.

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One main thing that I have learned through this internship is time management skills as well as
self-motivation. When I first started I did not think that I was going to be able to make myself sit
in an office for eight hours a day, five days a week. Once I realized what I had to do I organized
my day and work so that I was not overlapping or wasting my hours. I learned that I needed to
be organized and have questions readyfor when it was the correct time to get feedback. From this
internship and time management I had to learn how to motivate myself through being in the
office for so many hours.

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 Bibliography

 Wikipedia.org
 Cleartax.com
 Paisabazaar.com
 Corporatefinanceinstitutions.com
 Deskera.in
 Goods and Service Tax By Himalaya Publications.

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