GST RETURN and Tally Internship report.docx

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INTERNSHIP REPORT (Batch 20………..)
on
GST Return & Tally
Under the mentorship of
Mr. XYZ
Faculty Mentor Submitted by
GOLDY SINGH
MBA 3A

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CERTIFICATE
This is to certify that the …………, roll number 2……… having project report entitled “GST
Return & Tally” done under mentorship of Mr.XYZ…, finance department, XYZ
COMPANY..., submitted to the Department of Management Studies, XYZ University in
partial fulfilment for the course of Management Trainee (MGT-202).
Date
Dr XYZ
Assistant Professor
Department of Management Studies

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Acknowledgement
With immense pleasure, I would like to present this training report on “GST Return & Tally”.
I take the opportunity to express my gratitude to all of them who in some or the other way
helped me to accomplish this project. The study cannot be completed without your guidance,
assistance, inspiration, and co-operation.
I owe my gratitude to various employees; without their help I would have been unable to
complete my project. These people have really been kind enough to help me by answering my
questions. I would also like to thank MR. XYZ who has always there to help and guide me
when I needed help.
I am thankful to them for encouraging me. I am thankful to them for all the addition and
enhancement done to me. It was because of their immense help and support that this project
has been duly completed.
However, I accept the sole responsibility for any possible error and would be extremely grateful
to the readers of this report if they bring such mistakes to my notice.

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INDEX
1. Cover Page……………………………………………………………….1
2. Training Completion Certificate………………………………………....2
3. Candidate Declaration…………………………………………………....3
4. Acknowledgment………………………………………………………...4
5. Index……………………………………………………………………..5
6. Company Profile ………………………………………………………...6
7. GOODS AND SERVICE TAX(CHAPTER 1)………………………….10
a) Introduction of GST……………………………………...11
b) Literature Review………………………………………...23
c) Research Methodology…………………………………...27
d) Objectives of the study…….……………………..………28
e) Limitations of the study………………………….……….29
f) Findings and Analysis…………………………..………..29
g) Conclusions……………..…………………………..……30
h) Recommendations………………………………………..31
i) Reference…………………………………………………32
8. TALLY PRIME (CHAPTER 2)…………………….. …………………..33
a) Introduction………………………………………………34
b) Research Methodology……………….…………………..47
c) Objectives of the study……………….…………………..48
d) Limitations of the study………….……………………….48
e) Findings and Analysis……………...……………………..49
f) Conclusions………………………………………………..51
g) Recommendations…..……………………………………..52
h) Reference…………………………………………………..52

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COMPANY PROFILE
About The Company
Our Team
VISSION

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GOODS & SERVICE TAX
(Chapter-1)

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GST (Goods & Service Tax)
ABSTRACT
Since the implementation of the Goods and Services Tax (GST) in India, there were high hopes
that it would enhance government revenue, create a unified market, and eliminate the cascading
effect of taxes. While GST has achieved many of these objectives, it has not completely
eradicated tax evasion and related fraud, which were prevalent in the earlier Value Added Tax
(VAT) system. This paper investigates various modes of tax evasion and the shortcomings in
the regulatory framework of GST that address these issues. Additionally, the study explores
the measures available for curbing tax fraud.
INTRODUCTION
The Kelkar Task Force Committee, which examined the implementation of the Fiscal
Responsibility and Budget Management (FRBM) Act, 2003, highlighted persistent issues in
India's indirect tax policy. Despite moving towards the VAT principle since 1986, the taxation
of goods and services remained fraught with challenges. The tax base was fragmented between
the Central and state governments, and services, a significant portion of the GDP, were not
appropriately taxed. In response, the Kelkar Task Force proposed a comprehensive Goods and
Services Tax (GST) based on the VAT principle. After extensive deliberation, the One Hundred
and First Amendment of the Constitution of India in 2016 introduced a national GST on July
1, 2017, ushering in the era of 'One Nation, One Tax, One Market.' GST, a multi-stage,
destination-based consumption tax, relies on the credit invoice method, taxing only the value
addition at each stage while facilitating the seamless flow of credit along the supply chain. It
replaces all previous indirect taxes on goods and services with a unified system from
manufacturers to consumers, comprising Central GST (CGST), State GST (SGST), and
Integrated GST (IGST).

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Rationale for GST Implementation
The shift to GST from the previous complex structure of indirect taxes was motivated by the
need for simplification. Central and State Governments imposed a multitude of taxes, including
Central Excise Duty, Service Tax, Central Sales Tax, VAT, Entry Tax, and more. Each tax was
separate, with varying provisions and compliance requirements, leading to multiple tax evasion
avenues and compliance challenges. The introduction of GST in July 2017 aimed to streamline
this tax regime, bringing uniform tax rates for intra-state and inter-state transactions. Key
outcomes of GST implementation include
 Eliminating Cascading Taxes: GST has effectively removed the cascading effect of
taxes by allowing Input Tax Credit on the value addition at each stage of the supply
chain.
 Harmonization: It has harmonized tax laws, procedures, and rates across the country,
creating a unified tax structure.
 Boosting Investment Climate: GST has improved the overall investment climate in
India, benefiting state-level development.
 Enhanced Compliance: The environment of compliance has been improved through
online tax return filing and online verification of input credits, encouraging a more
transparent transaction record.
 Unified National Market: GST has eliminated inter-state economic barriers, fostering
the creation of a unified national market.
 Increased Government Revenue: It has contributed to government revenue growth by
expanding the tax base and enhancing taxpayer compliance.

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COMPONENTS OF GST
1. IGST
2. CGST
3. SGST
4. UTGST
1. CGST (Central Goods and Services Tax): CGST is the tax collected by the central
government on intra-state supplies of goods and services. In other words, it is the part
of the GST that goes to the central government when a transaction occurs within the
same state.
2. SGST (State Goods and Services Tax): SGST is the tax collected by the state
government on intra-state supplies of goods and services. It complements CGST and is
applicable when a transaction occurs within the same state.
3. IGST (Integrated Goods and Services Tax): IGST is applicable to inter-state
transactions, i.e., when goods or services move from one state to another. It is collected
by the central government and then distributed to the destination state. IGST helps
ensure seamless taxation on transactions between states.
4. UTGST (Union Territory Goods and Services Tax): Union Territories, which are
not treated as states in India, collect UTGST instead of SGST. UTGST is used to tax
supplies within Union Territories.
GST
IGST
SGST
UTGST
CGST

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REGULATORY AUTHORITIES
The Goods & Services Tax Council is the highest regulatory authority responsible for
offering recommendations to both the Union and State Governments on matters pertaining
to Goods and Service Tax (GST). Established in accordance with Article 279A of the
amended Constitution, the GST Council holds a constitutional status and is chaired by the
Union Finance Minister. Its members include the Union State Minister of Revenue or
Finance, along with the Ministers in charge of Finance or Taxation from all the states. The
GST Council serves as the principal policymaking body, and it is only upon its
recommendations that parliament and state legislatures enact laws and rules related to GST.
For operational purposes, the Central Board of Indirect Taxes and Customs (CBIC) and the
states' Commercial Tax Departments (CTD) play a pivotal role in implementing and
regulating GST at the Central and State levels, respectively.
The CBIC, a part of the Department of Revenue under the Ministry of Finance, Government
of India, handles the formulation of policies concerning the levy and collection of Customs,
Central Excise duties, Central Goods & Services Tax, Integrated Goods & Services Tax
(IGST), prevention of smuggling, and administration of matters related to Customs, Central
Excise, Central Goods & Services Tax, IGST, and Narcotics within its purview. Similarly,
the States' Commercial Tax Departments (CTD) are responsible for internal resource
mobilization within the State Government and deal with policy formulation and the
collection of State Goods & Services Tax (SGST).
Mandate of GST Council
The GST Council's mandate encompasses various key responsibilities, including:
a) Making recommendations to the Union and the states regarding taxes, cesses, and
surcharges levied by the Union, states, and local bodies, which can be subsumed within the
ambit of goods and services tax.
b) Providing recommendations on the inclusion or exemption of goods and services under
the goods and services tax.
c) Formulating model goods and services tax laws, principles for levying the tax,
apportionment of goods and services tax on supplies in the course of inter-state trade or
commerce under Article 269A, and the principles governing the place of supply.

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d) Determining the threshold limit of turnover below which goods and services may be
exempted from goods and services tax.
e) Recommending the rates, including floor rates with bands, for goods and services tax.
f) Suggesting special rates for a specified period to raise additional resources during natural
calamities or disasters.
g) Creating special provisions for certain states, such as Arunachal Pradesh, Assam, Jammu
and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal
Pradesh, and Uttarakhand.
h) Addressing any other matter related to the goods and services tax, as determined by the
GST Council.
MAJOR MODES OF TAX EVASION UNDER GST
Under the Goods and Services Tax (GST) regime, Sections 42 and 43 of Chapter IX of the
Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST) Acts
provide a framework for matching tax invoices, a cornerstone of the GST system. However,
challenges and modes of tax evasion have arisen as follows:
1.MISMATCH IN INVOICES
Matching invoices is pivotal to the equitable distribution of Input Tax Credit (ITC) on the
Goods and Services Tax Network (GSTN). The transaction of goods and services from one
party to another creates a chain the seller's supply is the buyer's purchase. Suppliers must
declare all supplies in their GSTR1, which should align with the recipient's
GSTR2A/GSTR2 for ITC to be eligible. ITC can only be availed to the extent that invoices
match, making this a real-time, monthly process where parties upload invoices and
counterparts accept. While GST extended ITC availability from intra-state to inter-state
supplies, the high volume of transactions and invoice mismatches pose a significant
challenge to achieving a balance between fair ITC distribution and safeguarding public
revenue. Mismatches can occur when:
 The recipient avails more ITC than the tax declared by the supplier.
 The recipient claims ITC, but the supplier does not declare the outward supply.
 The recipient falsely claims Input Tax Credit.

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2.OVER-CLAIMING OF INPUT TAX CREDIT (ITC)
Over-claiming ITC is an explicit way to exploit the ITC mechanism. Established businesses
with GST liabilities on their outputs face limits in this regard, as excessive credit claims
would suggest unrealistically low profit margins. However, new businesses have more
leeway to exaggerate input claims without raising suspicion, especially if they make
significant initial purchases of capital goods and inputs without an immediate
corresponding level of sales. Export frauds also lead to fraudulent claims, with goods not
actually being exported out of the country. Such fraud may involve fictitious commodities
or authentic ones sold in the domestic market. A false ITC credit claim of ₹1 costs the
government the same as a fraudulent refund of ₹1. Therefore, fraudulent ITC refunds are a
major concern.
3. FAILURE OF BUSINESSES TO REGISTER
In the GST system, businesses operating near the threshold for compulsory registration
often fail to register. This helps them evade both the GST for which they are liable and
GST compliance costs. These businesses, often referred to as "ghosts," remain entirely
unknown to revenue authorities, and they can potentially evade both income taxes and GST.
This category typically comprises firms selling to final consumers or other unregistered
businesses.
4.TAX COLLECTED BUT NOT REMITTED
Tax evasion may occur when businesses charge customers GST but fail to remit the
collected tax to the authorities. The so-called "missing trader" frauds usually involve
registered businesses that vanish before paying the due tax. This may result from
underreporting sales, engineering bankruptcy before paying taxes, or other tactics.
Addressing these modes of tax evasion is essential for ensuring the integrity of the GST system
and preserving government revenue. Effective measures and continuous improvements in the
GST framework are necessary to combat fraudulent practices and maintain tax compliance.

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PROCESS OF GST FILE RETURN
 Step 1: Register for GSTIN.
 Step 2: Log in to the GST portal
 Step 3: Returns dashboard
 Step 4: Prepare online.
 Step 5: Enter details
 Step 6: Check submission status.
 Step 7: Tax payment.
GSTR 3B Form GSTR-3B is a simplified summary return and the purpose of the return is
for taxpayers to declare their summary GST liabilities for a particular tax period and discharge
these liabilities. A normal taxpayer is required to file Form GSTR-3B returns for every tax
period.
Form GSTR-3B can be filed from the returns section of the GST Portal. In the post login mode,
you can access it by going to Services > Returns > Returns Dashboard. After selecting the
financial year and tax period, Form GSTR-3B, (if applicable), in the given period will be
displayed.
STEPS.
1

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GSTR1Form GSTR-1 is a monthly/quarterly Statement of Outward Supplies to be furnished
by all normal and casual registered taxpayers making outward supplies of goods and services
or both and contains details of outward supplies of goods and services.
Every registered taxable person, other than an input service distributor /composition taxpayer
/persons liable to deduct tax u/s 51 / persons liable to collect tax u/s 52 is required to file Form
GSTR-1, the details of outward supplies of goods and/or services during a tax period,
electronically on the GST Portal.
You can opt for Quarterly filing of Form GSTR-1 under following condition
 If your turnover during the preceding financial year was up to Rs. 5 Crore or
 If you are registered during the current financial year and expect your aggregate
turnover upto Rs. 5 Crores
Note: In case you have chosen Opt-in for Quarterly Return option, you need to file both
Form GSTR-1 and Form GSTR-3B quarterly only

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Who should file GST Returns?
Under the GST regime, regular businesses having more than Rs.5 crore as annual aggregate
turnover (and taxpayers who have not opted for the QRMP scheme) have to file two monthly
returns and one annual return. This amounts to 25 returns each year.
Taxpayers with a turnover of up to Rs.5 crore have the option to file returns under the QRMP
scheme. The number of GSTR filings for QRMP filers is 9 each year, which include 4 GSTR-
1 and GSTR-3B returns each and an annual return. Note that QRMP filers have to pay tax on
a monthly basis even though they are filing returns quarterly.
There are also separate statements/returns required to be filed in special cases such as
composition dealers where the number of GSTR filings is 5 each year (4 statement-cum-
challans in CMP-08 and 1 annual return GSTR-4).
Returns are there under GST
There are 13 returns under GST. They are the GSTR-1, GSTR-3B, GSTR-4, GSTR-5, GSTR-
5A, GSTR-6, GSTR-7, GSTR-8, GSTR-9, GSTR-10, GSTR-11, CMP-08, and ITC-04.
However, all returns do not apply to all taxpayers. Taxpayers file returns based on the type of
taxpayer/type of registration obtained.
Eligible taxpayers, i.e. with a turnover exceeding Rs.5 crore are also required to also file a self-
certified reconciliation statement in Form GSTR-9C.
Besides the GST returns that are required to be filed, there are statements of input tax credit
available to taxpayers, namely GSTR-2A (dynamic) and GSTR-2B (static). There is also an
Invoice Furnishing Facility (IFF) available to small taxpayers who are registered under the
QRMP scheme to furnish their Business to Business (B2B) sales for the first two months of the
quarter. These small taxpayers will still need to pay taxes on a monthly basis using Form PMT-
06.

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Literature Review
The chosen research area for this study focuses on taxation, and as part of the literature review,
various reports of committees on taxes appointed by the Government of India over the years
have been examined.
 Parthasarathi Shome Committee (2001) The Parthasarathi Shome Committee,
appointed by the Indian government, focused on tax reforms. It recommended changes
to the tax regime to encourage voluntary compliance, simplify tax laws, and reduce
litigation. The committee also examined issues related to tax administration and transfer
pricing.
 Vijay Kelkar Task Force on Direct Taxes (2002) This task force, led by Dr. Vijay
Kelkar, made recommendations for simplifying and rationalizing the direct tax system
in India. It proposed measures to broaden the tax base, reduce tax rates, and improve
tax administration. The task force's recommendations aimed to make the tax system
more taxpayer-friendly and efficient.
 Tax Administration Reform Commission (TARC, 2014) TARC was established to
examine the existing tax administration system in India and suggest reforms. It
proposed measures to enhance the efficiency and effectiveness of tax administration,
reduce litigation, and improve taxpayer services. TARC's recommendations aimed at
creating a taxpayer-centric tax administration system.
 Justice Easwar Committee (2016) The committee led by Justice R.V. Easwar was
formed to simplify income tax laws and reduce litigation. It made recommendations to
streamline the tax dispute resolution process, making it more efficient and taxpayer-
friendly.
 Direct Tax Code Committee (2009) The Direct Tax Code Committee, also known as
the Chidambaram Committee, was tasked with drafting a new direct tax code. Its report
contained comprehensive recommendations for the reform of direct taxes in India,
including changes to tax rates, exemptions, and simplification of tax laws.

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 Direct Tax Code Committee (2009) The Direct Tax Code Committee, also known as
the Chidambaram Committee, was tasked with drafting a new direct tax code. Its report
contained comprehensive recommendations for the reform of direct taxes in India,
including changes to tax rates, exemptions, and simplification of tax laws.
 Task Force on Direct Tax Code (2017) This task force was set up to review the
existing Income Tax Act and provide recommendations for a new Direct Tax Code. Its
focus was on simplifying and rationalizing India's direct tax laws.
 Raja Chelliah Committee (1991) The Raja Chelliah Committee played a significant
role in recommending tax reforms, including the introduction of Value Added Tax
(VAT) and the restructuring of India's tax system.
 K.N. Raj Committee (1975) This committee was responsible for examining the Indian
income tax structure and recommending changes to promote equity and economic
development.
 R. V. Gupta Committee (1984) The R. V. Gupta Committee focused on tax
exemptions and incentives for the industrial sector, with the aim of promoting industrial
growth and investment.
 Justice K.N. Wanchoo Committee (1971) This committee was formed to review the
existing tax laws and recommend measures to reduce tax evasion and improve tax
compliance.
 Indirect Taxation Enquiry Committee (1947) This historical committee played a
vital role in shaping India's early indirect tax system, making recommendations on
customs and excise duties.
 Kelkar Committee on GST (2009) Dr. Vijay Kelkar led a committee to recommend a
Goods and Services Tax (GST) system for India, which ultimately led to the
implementation of GST in the country.

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 Justice Shah Committee (2013) The committee, headed by Justice M.B. Shah, focused
on black money and suggested measures to curb the generation and circulation of
unaccounted wealth.
 Justice A.P. Shah Committee (2018) This committee was appointed to provide
recommendations for a simplified and taxpayer-friendly income tax return form.
 Sinha Committee on GAAR (General Anti-Avoidance Rules, 2012) The
Parthasarathi Shome Committee, led by Dr. Parthasarathi Shome, examined the
implementation of General Anti-Avoidance Rules in India and made recommendations.
 Amit Mitra Committee on GST Compensation (2020) Dr. Amit Mitra headed a
committee to examine the issue of compensation to states for revenue loss due to the
introduction of GST.
 D. R. Mehta Committee (1999): This committee was formed to review the tax
exemption limits for charitable organizations and suggest measures to ensure the proper
utilization of funds for charitable purposes.
 Chelliah Committee on Tax Reforms (1992): The Chelliah Committee focused on
comprehensive tax reforms, covering direct and indirect taxes. It made
recommendations to simplify and rationalize the tax system.
 N. K. Singh Committee on Fiscal Responsibility (2003): This committee was tasked
with suggesting measures to ensure fiscal responsibility and budget discipline. It aimed
to create a framework for responsible fiscal management.
 Task Force on the Direct Tax Code (2018): A more recent task force was set up to
revisit and revise the existing Direct Tax Code to align it with the evolving economic
landscape and international tax practices.
 Justice Narasimham Committee (1991): This committee examined banking sector
reforms, including issues related to non-performing assets and the taxation of banking
income.

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 Committee on Taxation of Services (2004): This committee was appointed to make
recommendations on the taxation of services under the Service Tax regime, including
identifying taxable services and tax rates.
 Taxation of Agricultural Income Enquiry Commission (1972): This commission
examined the taxation of agricultural income and suggested measures for bringing
agricultural income into the tax net.
 Vijay L. Kelkar Committee on Public-Private Partnerships (2015): Focused on
financing infrastructure development through public-private partnerships, this
committee recommended tax measures to encourage private sector participation.
 Committee on Taxation of E-commerce (2020): Given the growing significance of
e-commerce, this committee was appointed to explore the taxation of e-commerce
transactions and recommend appropriate tax measures.
 Task Force on National Infrastructure Pipeline (2019): This task force examined
the financing of India's national infrastructure projects and made recommendations on
tax incentives and measures to attract investments in the infrastructure sector.

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Research Methodology
This research follows an exploratory approach, drawing primarily on secondary data from
sources such as journals, articles, newspapers, internet resources, research papers, and feedback
obtained from manufacturers and businessmen. The research design is descriptive and
analytical in nature, aligned with the study's objectives.
Exploratory Approach: This research method is like going on an exciting adventure to
explore something new. Instead of answering specific questions, the researchers are on a
journey to discover more about a topic. They are open to unexpected findings and aim to gain
a XYZper understanding.
Data Sources:
 Secondary Data: The researchers are not conducting new surveys or experiments.
Instead, they are like detectives, gathering information from existing sources. These
sources include:
a) Journals: They're looking at articles published in academic journals, which are like
magazines for serious researchers.
b) Articles: They're also considering articles from various sources, which are like shorter
pieces of writing on the topic.
c) Newspapers: Information from newspapers is like getting updates from the latest news.
d) Internet Resources: They're exploring what's available on the internet, which is like
tapping into a vast digital library.
e) Research Papers: These are like detailed reports of other researchers' work, and the
researchers are studying them to see what they've discovered.
f) Feedback from Manufacturers and Businessmen: The researchers are talking to
experts in the field – manufacturers and businessmen – to get their valuable insights
and opinions.

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Objectives of the Study
 To gain a conceptual understanding of GST.
 To examine the features of GST in India.
 To identify weaknesses in the current GST model in India.
 To propose measures for rectifying these weaknesses.
 To gain a conceptual understanding of GST: The primary aim of this study is to
develop a clear understanding of the Goods and Services Tax (GST). Researchers want
to grasp the core concepts and principles of how GST works.
 To examine the features of GST in India: In this part of the study, the focus is on
understanding the specific characteristics of GST as it is implemented in India. This
includes how it's structured, what rates are applied, and how it operates within the
Indian tax system.
 To identify weaknesses in the current GST model in India: The researchers are keen
to pinpoint any shortcomings or flaws in the existing GST system in India. This means
looking for areas where GST might not be working as effectively as intended.
 To propose measures for rectifying these weaknesses: Once weaknesses in the GST
model are identified, the study aims to suggest potential solutions or improvements.
The goal is to provide practical recommendations for making the GST system in India
more efficient and effective.

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Limitations of the Study
The study has some limitations, which are important to consider:
Due to time constraints, the researchers were only able to engage with a limited number of
manufacturers as part of their study. This means they might have missed uncovering additional
issues and challenges related to GST implementation. If they had more time, they could have
spoken to a larger and more diverse group of manufacturers to get a more comprehensive view.
FINDINGS AND ANALYSIS
Within the company "XYZ Development Engineers Pvt. Ltd.," a detailed examination of the
taxes they pay and the taxes their suppliers pay is carried out. If there are any differences or
inconsistencies between these taxes, adjustments are made in the financial documents. These
corrected documents are then sent back to the supplier.
Additionally, the study highlights the critical role of verifying two important numbers in this
process:
GST Numbers: These numbers are used to identify the suppliers. Ensuring the accuracy of
these numbers is vital to the smooth operation of the GST system within the company.
UDIN (Unique Document Identification Number): UDIN numbers serve as an alternative
means of identification. If there are discrepancies or inaccuracies in the GST numbers, UDIN
numbers can help maintain the integrity of the transactions within the organization.

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CONCLUSIONS
In summary, this research has aimed to help us better understand Goods and Services Tax
(GST) in India, with a focus on a specific company, XYZ…….. We had several goals in mind:
to explain the key ideas behind GST, to examine how it works in India, to find problems in the
system, and to suggest ways to fix those problems.
Through our investigation, we learned that GST is important for streamlining taxes and
promoting economic growth in India. But its success depends on how carefully it's put into
practice and how we deal with various challenges.
Our study of XYZ……... showed us the importance of thoroughly checking GST numbers and
Unique Document Identification Numbers (UDIN). Doing this helps a company follow the
GST rules and avoid financial problems.
So, here are the main things we've learned:
 Companies should have a clear and automated system to check GST numbers and
UDIN.
 Training and education about following GST rules are important for the staff.
 Keeping a good record of suppliers' GST information and documents is crucial.
 It's helpful to work closely with suppliers to make sure everything goes smoothly.
 Regular checks and staying up to date with GST rules are key to following the rules.
 When in doubt about GST, it's smart to get advice from experts.
By following these ideas, companies can do better with GST and avoid financial problems.
This also helps make the Indian tax system work well. But we should remember that tax rules
can change, so it's important to keep learning and improving how we follow these rules. This
study is just a start toward a more efficient and honest tax system in India, and we should keep
working on it.

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RECOMMMEDATION
 Implement a Robust Verification Process: Develop a systematic verification process
for GST numbers and Unique Document Identification Numbers (UDIN). This process
should involve cross-referencing invoices, suppliers' GSTIN (Goods and Services Tax
Identification Number), and other relevant documents. Ensure that the verification
process is integrated into the procurement and financial systems to automatically flag
discrepancies.
 Automate Invoice Matching: Consider implementing automation tools for invoice
matching. Utilize software solutions that can quickly reconcile invoices with supplier
details and GST numbers, reducing the risk of manual errors and discrepancies.
Automation can expedite the verification process and minimize the likelihood of input
tax credit mismatches.
 Regularly Update and Verify GSTIN Data: Maintain an up-to-date database of
suppliers' GSTIN information. Periodically verify and validate this data with official
GST records to ensure accuracy. Any discrepancies or changes in suppliers' GSTIN
should be promptly addressed to avoid compliance issues.
 Train and Educate Staff: Conduct training programs for staff responsible for GST
compliance and financial operations. Ensure they are well-versed in the verification and
reconciliation process. Training should cover the importance of accurate GST data, the
potential consequences of non-compliance, and the benefits of a meticulous approach.
 Leverage Technology for UDIN Verification: Implement technology solutions for
the verification of UDINs. These solutions can help verify the authenticity of
documents, ensuring that they are not tampered with and maintaining data integrity.
Automated UDIN verification tools can streamline this process.
 Maintain a Document Trail: Encourage the practice of maintaining a comprehensive
document trail for all GST-related transactions. This includes invoices, receipts, and
other relevant documents. A well-organized document trail can simplify the verification
process and serve as evidence of compliance during audits.
 Regularly Audit and Review Processes: Conduct periodic internal audits to assess the
effectiveness of the verification and adjustment process. Review the accuracy of GST
data, compliance with tax laws, and any potential areas for improvement. Address
issues and inconsistencies promptly to maintain financial integrity.

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 Engage with Suppliers Collaboratively: Foster open communication and
collaboration with suppliers. Discuss the importance of accurate GST data and
encourage them to maintain their records diligently. Collaborative relationships can
lead to smoother transactions and reduce the risk of discrepancies.
 Stay Informed About GST Regulations: Keep abreast of changes and updates in GST
regulations. Regulatory updates can impact the verification and adjustment process.
Ensure that your organization is always compliant with the latest tax laws and
regulations.
 Seek Professional Advice: When in doubt, seek professional advice from tax experts
or consultants who specialize in GST compliance. They can provide guidance on the
evolving GST landscape, help with complex compliance issues, and ensure that your
organization stays on the right side of the law.
 Implement Data Analytics: Utilize data analytics tools to identify patterns and
anomalies in financial data. Data analytics can help detect discrepancies and
irregularities in GST-related transactions more efficiently.
 Standardize Documentation: Develop standardized templates for invoices, receipts,
and other GST-related documents. Standardization can reduce errors in documentation
and make the verification process more straightforward.
 Segregate Duties: Implement a system of internal controls that segregates duties
related to GST compliance. This reduces the risk of errors and fraud by ensuring that
no single individual has too much control over the process.
REFERENCE
 https://www.gst.gov.in/
 https://cleartax.in/s/gst-law-goods-and-services-tax

30
Accounting software Tally Prime
INTRODUCTION
Tally Prime is a robust and versatile business management software designed for
small and medium-sized enterprises (SMEs). It offers a comprehensive suite of
features to streamline various aspects of business operations, including
accounting, inventory management, taxation, payroll, and more. Tally Prime is
intended to simplify complex business processes, allowing users to focus on
business growth. In this context, this research explores the core features and usage
of Tally Prime.
Core Features of Tally Prime
 Invoicing & Accounting: Tally Prime simplifies the creation and recording
of invoices with optimized invoice components, multiple billing modes, and
customizable configurations. It adapts to the specific needs of businesses,
making accounting straightforward.
 Inventory Management: Tally Prime offers flexible inventory management
with features such as godown management, multiple stock valuation
methods, batch and expiry date tracking, and job costing. The powerful
inventory reports simplify the management of stock.
 Insightful Business Reports: Tally Prime provides access to over 400
business reports with valuable insights for informed decision-making. Users
can customize and analyze these reports to suit their business needs.
 GST/ Taxation: Users can generate GST-compliant invoices, including tax
invoices and bills of supply, and accurately file GST returns. Tally Prime
also supports the automatic generation of e-invoices and printing with IRN
and QR codes. It helps manage TDS, TCS, and statutory payroll
requirements like PF, ESI, and employee income tax.
 Credit and Cash Flow Management: Tally Prime enhances efficiency in
accounts receivable, accounts payable, and inventory management,
optimizing cash flows. Insightful reports assist in monitoring cash flow.

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 Multi-task Capabilities: Tally Prime supports multi-tasking, allowing users
to handle interruptions efficiently. For example, users can switch between
tasks like creating a sales invoice and recording new sales seamlessly.
 Go To Feature: The "Go To" feature in Tally Prime simplifies the discovery
of insights and new capabilities. Users can search and find specific functions
within Tally Prime to enhance business operations.
 Banking: Tally Prime offers a range of banking features, including auto
bank reconciliation, pre-defined cheque formats, cheque management, and
e-payments, simplifying banking tasks.
 Access Business Data Online: Users can access business reports online via
a web browser from anywhere, ensuring that crucial data is always
accessible.
 Secure Data: Tally Prime prioritizes data security with multiple user access
controls and feature-based security levels. This ensures that data access is
restricted according to user preferences.
How to use Tally Prime
For the use of Tally prime, following steps must be followed
1. Create a company
2. Enable GST features
3. Ledger creation
Below discuss the details:
1. How to create GST?
a) Go to Gateway of Tally prime > Alt + F3 > Create Company
b) Enter the basic information, i.e., name, mailing name and address of the
company,currency symbol etc.
c) In the ‘maintain field’, select Accounts Only or Accounts with Inventory as
per thecompany requirements.

32
d) In the Financial Year from, the first day of the current financial year for e.g.,
01-04-2023 will be displayed by default, which can be changed as per
requirement.
e) Enter the Tally prime Vault Password if required.
f) Press Enter to accept and save.
Figure 1 Create company
2. Enabling GST FEATURES
a. Go to Gateway of Tally > F11 Features > F3 Statutory & Taxation
b. In the screen you will find following options
c. Enable goods and service tax (GST) Yes, Set/alter GST Details -Yes.
 This will display another screen where you can set GST details of the
company suchas the state in which company is registered, registration type,
GSTIN number etc.
 Press Y or Enter to accept and save.

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3. LEDGER CREATION
After creating a company and activating GST features, you need to create ledgers that
will enable you to pass accounting entries in Tally.
Here are the following steps:
 Go to Gateway of Tally > Accounts Info > Ledgers > Create-
 Enter the Name for the ledger want to create such as purchase, sales, receive etc.
 Select the appropriate group to which such ledger belongs for example state
tax underduties and taxes group.
 Enter the other related information required and press Y or Enter to accept and save.
After having done the above 3 steps, you can start entering accounting entries in Tally.
For this, Go to Gateway of Tally >Accounting Vouchers. There are many Accounting
Vouchers in Tally such as Payment, Receipt, Contra, Sales, Purchase, etc. Choose the
relevant Voucher and start passing the accounting entries.
Figure 2 Ledger creation

34
Types of Vouchers
Below is the voucher, books & register of Tally software
1. Receipt VoucherTo Receipt voucher records all receipt in to Bank or Cash
Accounts. Suchas receipt from debtors, any income refund of loan or advance, sales
of fixed assets etc.
Go to Gateway to Tally Accounting Voucher Click on F6
Receipt button presentation the button panel to have the Receipt Voucher Creation
Screen.
Voucher 1 Receipt Voucher

35
2. Payment Voucher  Payment Vouchers records all the payments made through
Bank & Cash. It is also used forpayment of fixed assets, purchase, loan & advance
etc.
Payment buttonpresentation the button panel to have the Payment Voucher Creation
Screen.
Voucher 2 Payment Voucher

36
3. Journal VoucherJournal voucher is for adjustment between any two ledgers.
Journal buttonpresentation the button panel to have the Journal Voucher Creation
Screen.
Voucher 3 Journal voucher

37
4. Sales Voucher
Go to Gateway to Tally Accounting Voucher  Click on F8  Click on V(As
Invoice) Sales Invoice Creation Screen.
Voucher 4 Sales invoice

38
5. Sales Voucher
Go to Gateway to Tally Accounting Voucher Click on F8 Click on V(As Voucher)
Sales Voucher Creation Screen.
Voucher 5 Sales Voucher

39
6. Purchase Invoice
Go to Gateway to TallyAccounting Voucher Click on F9 Click on V(As Invoice)
Purchase Invoice Creation Screen.
Voucher 6 Purchase Invoice

40
7. Purchase Voucher
Go to Gateway to TallyAccounting VoucherClick on F9 Click on V(As Voucher)
Purchase Invoice Creation Screen.
Voucher 7 Purchase voucher
8
. Day BookThe day book list showing all transactions made in a
particular day.
Go to Gateway of TallyDisplay Daybook
Voucher 8 Day Book

41
9. Trial BalanceTrial Balance is a list of closing balances of ledger accounts on a
certain date and is the first step towards the preparation of financial statements. It is
usually prepared at the end of an accounting period to assist in the drafting of
financial statements. Asset and expense accounts on the debit side of the trial balance
& liabilities, capital and income accounts on the credit side. Debit & Credit side
should be equal balance.
Go to Gateway of TallyDisplayTrial Balance
Voucher 9 Day book

42
10.Profit and Loss
Voucher 10 P&L

43
Research Methodology
This research is like an adventurous journey where we want to find out how Tally is really used
in the real world. We're not looking for specific answers, but we're exploring different
possibilities.
To do this, we're using two different tools. First, we have a descriptive tool, which is like
taking a good look at Tally's features and how it works. It's like examining all the parts of a
puzzle to understand the big picture. Second, we use an analytical tool, which is like thinking
XYZply about how Tally affects the real world. It's like figuring out why Tally is important in
practical situations.
We also use two types of information. One is about how people feel and what they think about
Tally, which is like listening to their stories. The other is about the numbers and data that show
us the real impact of Tally.
By combining all of these methods, we hope to uncover the many ways Tally is used and why
it matters in real life.
 Data Collection: Data collection for this research is primarily based on secondary
materials to ensure a comprehensive understanding of Tally's applications and
conceptuality. The following sources have been used:
 Journals and Articles: Scholarly journals and articles provide in-depth insights
into Tally's features, best practices, and real-world applications.
 Newspapers: Newspaper articles offer valuable information on current trends
and actual uses of Tally in various industries and sectors.
 Internet Content: Information from online sources, such as blogs, forums, and
websites, provides diverse viewpoints, case studies, and user experiences with
Tally.
 Research Papers: Academic research papers contribute insights into the
technical aspects of Tally and its influence on businesses and accounting
practices.
 Feedback from Manufacturers and Businessmen: Interviews and surveys with
manufacturers and businessmen who use Tally in their daily operations provide
first-hand accounts of its practical applications and effectiveness.

44
Objectives of the Study
 To understand the conceptuality of Tally.
 To understand the use of Tally in the real world.
o To Understand the Conceptuality of Tally: This research aims to develop into the
core conceptuality of Tally, including its technical features and functionalities.
o To Understand the Real-World Applications of Tally: The study explores how Tally
is practically used in various industries and sectors.
Limitations of the Study
This research primarily relies on secondary data sources and employs an exploratory research
design. The limitations include:
 The dependence on existing data may limit the ability to gather customized and up-to-
date information.
 The descriptive design may not provide an exhaustive understanding of Tally's
applications, as it is focused on gaining insights into its conceptuality and practical
applications.

45
FINDINGS AND ANALYSIS
In our research, we found that Tally has numerous real-world applications, making it a valuable
tool for accountants and businesses alike. Below are some of the key findings and their
analysis:
 Accurate Financial Records: One of the key findings of this research is that Tally is
widely used to maintain accurate financial records. It assists businesses in efficiently
tracking income and expenses. Accountants can record transactions, reconcile accounts,
and generate financial reports. This accuracy supports better decision-making and
financial planning.
Analysis: Maintaining accurate financial records is essential for businesses of all sizes.
Tally streamlines this process, reducing errors and ensuring that financial data is readily
available for decision-makers.
 Simplified Accounting Processes: Tally simplifies complex accounting processes. Its
user-friendly interface and features like ledger management, invoicing, and taxation
tools make it an indispensable tool for accountants. It automates many accounting tasks,
reducing errors and saving time.
Analysis: Tally's user-friendly interface and automation features contribute to more
efficient accounting processes. This can lead to increased productivity and reduced
errors in financial management.
 Real-Time Data Access: Tally provides real-time access to financial data, which is
crucial for making informed decisions. Businesses can monitor their financial
performance as it happens, identify trends, and react promptly to changes. This real-
time access enhances the agility and responsiveness of organizations.
Analysis: Real-time data access is a competitive advantage in the fast-paced business
world. Tally's ability to provide this access is a significant asset for organizations
looking to stay agile and make data-driven decisions.

46
 GST Compliance: With the introduction of Goods and Services Tax (GST) in various
countries, Tally has become an essential tool for GST compliance. It simplifies GST
return filing, eases input tax credit reconciliation, and ensures that businesses comply
with tax regulations.
Analysis: GST compliance is a legal requirement in many regions. Tally's ability to
streamline this process not only ensures compliance but also reduces the administrative
burden on businesses.
 Customization and Scalability: Tally is known for its flexibility and scalability. It can
be customized to suit the specific needs of different industries and business sizes. This
adaptability is one of the reasons for its widespread use across various sectors.
Analysis: The ability to customize and scale Tally to meet specific business needs is a
significant advantage. This flexibility allows businesses to adapt the software to their
unique requirements.

47
Conclusion
In conclusion, this research provides compelling evidence of Tally's versatility and practical
applications in the real world. It serves as a valuable tool for accountants and businesses,
helping them maintain accurate financial records, simplify accounting processes, ensure GST
compliance, and access real-time financial data. While this study couldn't develop XYZply into
all of Tally's features due to time constraints, it lays a solid foundation for understanding the
conceptuality and significance of Tally in the business world.
Furthermore, the findings of this research offer valuable insights for businesses, accountants,
and policymakers seeking to enhance financial management and compliance. The study
highlights the importance of Tally's role in maintaining accurate records, streamlining
accounting processes, and staying up to date with tax regulations. Future research can explore
additional features and applications of Tally in even greater detail, providing a more nuanced
understanding of its impact on businesses and the broader economy. Tally's adaptability and
utility make it an indispensable asset in the world of accounting and finance.

48
RECOMMENDATIONS
 Stay Updated: Regularly keep up with the latest GST rules and regulations to ensure
you're aware of any changes that may affect your compliance.
 Check Supplier Details: Always verify your suppliers' GST numbers and invoices to
avoid any discrepancies in your records.
 Use Technology: Leverage technology and GST software to automate calculations and
filings, reducing the chances of manual errors.
 Timely Filing: File your GST returns on time to avoid penalties and interest charges.
Set up reminders to ensure you meet deadlines.
 Record-Keeping: Maintain organized records of all GST-related documents, making
it easier to reconcile and verify data.
 Cross-Check Documents: Cross-reference your invoices, receipts, and purchase
orders to ensure they match and are consistent.
 Audit Internally: Regularly conduct internal audits to spot and rectify any issues in
your GST compliance process.
 Open Communication: Foster open communication with your suppliers and
customers regarding GST matters to avoid misunderstandings.
 Training Staff: Train your employees responsible for GST compliance, so they
understand their roles and responsibilities.
 Use GSTIN Validation Tools: Utilize GSTIN validation tools to confirm the accuracy
of GST Identification Numbers, reducing the risk of errors.
Reference
 https://tallysolutions.com/
 https://en.wikipedia.org/wiki/Tally_Solutions

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