SUMMER TRAINING REPORT

On

“AN STUDY ON THE EFFECTIVENESS OF GOODS & SERVICES TAX

AND IMPACT ON BUSINESSES WITH REFERENCE TO ANDROS & CO.,
CHARTERED ACCOUNTANTS”
Submitted for the partial fulfillment of the degree of the
“Bachelor of Business Administration”

(2022-25)

Management Education and Research Institute

Affiliated To Guru Gobind Singh Indraprastha University

Sector 16-C, Dwarka, New Delhi

Submitted To: Submitted By:

Dr. Simranjeet Kaur Bagga Harsh Singhal

(Associate Professor) (BBA- 5th Sem.)

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MERI 04315101722

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 DECLARATION

I hereby declare that the following documented project report titled “A Study on Goods &
Services Tax with reference to Andros & Co., Chartered Accountants” submitted by me
to Management Education and Research Institute is a bona fide work undertaken and has not
been submitted to any other University or Institution for the award of any degree
diploma/certificate or published any time before.

I hereby certify that all the Endeavour put in the fulfillment of the task are genuine and
original to the best of my knowledge & I have not submitted it earlier elsewhere.

Signature
Harsh Singhal

BBA, 5th (semester)

04315101722

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 INTERNAL GUIDE CERTIFICATE

To whomsoever it may concern

This is to certify that the project work “A Study on Goods & Services Tax with reference
to Andros & Co., Chartered Accountants” made by Harsh Singhal, BBA, V Semester is
an authentic work carried out by her under the supervision of Internal Guide Dr.
Simranjeet Kaur Bagga

The project report submitted has been found satisfactory for the partial fulfillment of the
degree of Bachelor of Business Administration.

Dr. Simranjeet Kaur Bagga

(Internal Supervisor)

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 ACKNOWLEDGEMENT

I have been very fortunate to get the opportunity to work on research project, “A Study on Goods
& Services Tax with reference to Andros & Co., Chartered Accountants”. I hereby take this
opportunity to express my profound gratitude towards Guru Gobind Singh Indraprastha University
for giving me an opportunity to work on a valuable project.

I would like to extend my deepest regards and gratefulness to Dr. Simranjeet Kaur Bagga
ma’am, my project guide who continuously guided me throughout the course of the project.
Monitoring and constant encouragement throughout the course of this study made the successful
completion of this project possible.

Signature
Harsh Singhal

BBA, 5th (semester)

04315101722

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 TABLE OF CONTENTS

S. No. Particulars Page No.

Chapter 1: Introduction 8 – 26
1.

2. Chapter 2: Literature Review 27 – 29

3. Chapter 3: Research Methodology 30 - 33

4. Chapter 4: Data Analysis & Findings 34 - 42

5. Chapter 5: Conclusions & Recommendations 43 - 45

6. Bibliography 46

7. Annexure 47 - 48

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 CHAPTER-1

INTRODUCTION

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1.1 INDUSTRY PROFILE

A Chartered Accountant (CA) is a professional accountant who has earned the designation of
"Chartered" by a recognized professional accounting body. This designation signifies that the
individual has completed rigorous education, training, and examinations in accounting and
finance. Chartered Accountants are recognized for their expertise in various areas, including
accounting, auditing, taxation, and financial management.

1.1.1 Functions of Chartered Accountants

1) Financial Reporting

o Preparing and presenting financial statements in accordance with relevant accounting

standards (e.g., IFRS, GAAP).
o Ensuring that financial reports accurately reflect the organization's financial position.

2) Auditing

o Conducting independent audits of financial statements to provide assurance on their

accuracy and compliance.
o Performing internal audits to assess and improve internal controls and risk management
processes.

3) Tax Advisory and Compliance

o Providing guidance on tax planning strategies to minimize tax liabilities.

o Preparing and filing tax returns and ensuring compliance with tax laws and regulations.
o Representing clients in tax disputes and negotiations with tax authorities.

4) Financial Advisory

o Offering consulting services on mergers and acquisitions, corporate finance, and

investment strategies
o Conducting business valuations and financial modeling to support decision-making.

5) Management Consulting

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o Advising organizations on performance improvement, strategic planning, and operational
efficiency.
o Helping businesses develop and implement effective financial management systems.

6) Forensic Accounting

o Investigating financial discrepancies, fraud, and misconduct.

o Providing expert testimony in legal matters related to financial issues.

7) Corporate Governance

o Assisting organizations in implementing sound governance practices and risk

management frameworks.
o Advising on regulatory compliance and ethical business practices.

8) Training and Development

o Educating clients and staff on accounting practices, financial literacy, and regulatory
changes.
o Conducting workshops and training sessions to enhance financial knowledge

9) Advisory on Financial Technologies

o Helping businesses adopt and implement accounting software and financial technologies
(fintech).
o Advising on data analytics and digital transformation strategies.

1.1.2 Institute of Chartered Accountants of India (ICAI)

1) Established: July 1, 1949, under the Chartered Accountants Act, 1949.

2) Functions:

o Regulates the profession of accountancy in India.

o Prescribes standards for auditing and accounting.
o Conducts examinations and grants the CA designation.
o Provides continuing education and professional development for CAs.

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1.1.3 Importance of CAs in India

o Economic Development: CAs contribute significantly to the Indian economy by ensuring

transparency and accountability in financial reporting.
o Regulatory Compliance: They help businesses comply with various regulations, including
the Companies Act and tax laws, thus reducing risks of non-compliance.
o Advisory Role: CAs play a crucial role in strategic decision-making for businesses,
guiding them in financial planning and risk management.

1.1.4 Recent Trends

o Digital Transformation: The accounting profession is increasingly adopting technology,

including cloud accounting, data analytics, and automation.
o Globalization: Indian CAs are gaining recognition internationally, with many working abroad or
in multinational firms.
o Sustainability Reporting: There is a growing demand for CAs to provide services related to
sustainability and environmental, social, and governance (ESG) reporting.

Chartered Accountants in India are essential to the financial and economic landscape,
offering a range of services that promote integrity and transparency in business practices.
With the evolving regulatory environment and technological advancements, the role of CAs
continues to grow, making them invaluable assets in today’s economy.

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1.2 COMPANY PROFILE

1) Industry Chartered Accountants

2) Address WZ – 1656A, Main Market, Nangal Raya, Jail Road, New Delhi – 110046
3) Company Size 15 Employees
4) Founded in 1988
5) Founder CA Shashi K. Garg, CA Brij Bhushan Garg
6) Branches Delhi Cant., Janakpuri, NSP, Dwarka, Nehru Place, Faridabad
7) Business Model B2B, B2C
8) Key People CA Rahul Parashar & CA Mukesh Jindal (Senior Partners)
9) Services 1. Virtual CFO
2. Goods and Services Tax
3. Income Tax
4. International Tax
5. TDS
6. Legal Issues
7. Start-up Advisory
8. MSME Advisory

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1.2.1 ABOUT COMPANY

o Andros & Co., Chartered Accountants, was established in 1988 by CA Shashi K. Garg
and CA Brij Bhushan Garg. They were later joined by other CAs and the partnership
strength now stands at 11 with offices across Delhi-NCR, Dehradun and Lucknow. Given
the strength of partners, the area of operations extends from Income Tax, GST
compliance to International Taxation, Transfer Pricing consultancy to Business Advisory
services.

1) The new services added to their portfolio of services includes Virtual CFO services and
Start-up Advisory services.
2) They have a 34 years of experience and counting.
3) Being a peer-reviewed firm, they undertake audits of listed entities. It also makes them
eligible for other high value audit assignments which need the highest levels of credibility
and expertise.
4) Their mission is to satisfy all the valuable clients through high-quality and result-oriented
services and branding Services across the globe. The creative and innovative ideas help
businesses transform into memorable brands through
websites and creatives that provide enormous brand
value over time.
5) The company enables businesses to stand, manage
their finances and supports in all the legal aspects
that have helped many valuable clients to achieve
their business goals.
6) There saying is “Good strategy is the antidote to
competition. Strategic thinking is the process of
developing a strategy that defines your value proposition and your unique value chain. This
process includes market and competitive research as well as an assessment of the company’s
capabilities and the industry forces impacting it.”

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1.2.2 Services Offered

1) Virtual CFO: A virtual CFO (aka virtual Chief Financial Officer, part-time CFO) is a
financial professional that provides outsourced CFO services. A virtual CFO performs the
same functions as a full-time, traditional CFO and their team -- but at the fraction of the
cost. Perhaps the biggest distinction is that a virtual CFO usually works with multiple
clients rather than working full-time for one employer. Often, businesses will seek out a
virtual CFO if they have a need for the tasks and strategic advice a CFO would complete
while not yet having the budget or enough work to hire a full-time employee.
2) Goods & Services Tax: All GST registered businesses have to file monthly or quarterly
GST returns and an annual GST return based on the type of business. These GSTR filings
are done online on the GST portal. A GSTR is a document that contains details of all
income/sales and/or expenses/purchases that a GST-registered taxpayer and is required to
file with the tax administrative authorities. This is used by tax authorities to calculate net
tax liability. Here, a CA helps in understanding compliance requirements, data collection
and preparation, reconciliation of accounts and filing their returns.
3) Income Tax Return: A Chartered Accountant (CA) can significantly assist individuals
and businesses in filing their Income Tax Returns (ITR). Filing Income Tax Returns is
essential for several reasons like legal requirements, avoiding penalties, claiming tax
refunds, proof of income, carry forward losses, avoid scrutiny and maintaining a good
financial record. A CA helps them throughout the process to understand tax obligations,
data collection and documentation, filling and verifying the ITR.
4) GST Registration: A Chartered Accountant (CA) plays a vital role in the GST
registration process for businesses, including CA firms themselves. A CA helps
determine whether the business needs to register for GST based on turnover and types of
services offered. They provide insights into the GST laws and compliance requirements
relevant to the specific business. They assists in collecting and organizing the necessary
documentation, such as PAN, proof of business address, and identity proof of partners.
They have expertise in filling out the GST registration form correctly, ensuring all
required information is provided.
5) Legal Issues: A Chartered Accountant (CA) can play a crucial role in assisting
companies with various legal issues. CAs help ensure compliance with company laws, tax
regulations, and other legal requirements, reducing the risk of penalties. They assist in
preparing and filing necessary documents with regulatory authorities, such as annual

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 returns and financial statements. They conduct internal audits to identify compliance gaps
and support external audits, addressing any legal issues that may arise. They can assist in
managing tax disputes and audits, representing the company in negotiations with tax
officials. They can assist in negotiations and settlements related to financial claims or
disputes.
6) Start-up Advisory: A Chartered Accountant (CA) can be an invaluable resource when
starting a company. CAs help determine the most suitable business structure (e.g., sole
proprietorship, partnership, limited liability partnership, private limited company) based
on the startup’s goals and liability considerations. They assist with the registration
process, ensuring compliance with local laws and regulations. CAs can guide startups in
obtaining necessary licenses and permits required for legal operation. CAs help develop
financial forecasts, including cash flow projections and budgeting, essential for attracting
investors. CAs assist in identifying potential funding sources, including venture capital,
angel investors, and loans.
7) MSME Advisory: A Chartered Accountant (CA) can provide valuable advice to Micro,
Small, and Medium Enterprises (MSMEs) in various areas. CAs help set up efficient
bookkeeping systems to ensure accurate financial records, which are essential for
monitoring business performance. They assist in managing cash flow, helping MSMEs
understand their inflows and outflows to avoid liquidity issues. CAs educate MSMEs
about their tax obligations, including income tax, GST, and other applicable taxes. They
develop tax-saving strategies to optimize the tax liability, taking advantage of exemptions
and deductions available to MSMEs. This support enables MSMEs to navigate challenges
effectively, optimize their operations, and foster sustainable growth.
8) Tax Deducted at Source (TDS): A Chartered Accountant (CA) plays a vital role in
managing Tax Deducted at Source (TDS) for a company. CAs educate companies about
their TDS obligations, including applicable rates, types of payments subject to TDS, and
relevant provisions under the Income Tax Act. They ensure accurate calculation of TDS
on various payments such as salaries, professional fees, rent, interest, and other applicable
transactions. CAs prepare and file quarterly TDS returns (e.g., Form 26Q, Form 24Q) on
behalf of the company, ensuring accuracy and compliance with filing deadlines. Their
expertise streamlines the entire TDS process, from calculation and deduction to filing and
compliance.

1.2 OBJECTIVES OF THE STUDY

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1. To know about the tax system in India.
2. To get information about the Income Tax in India
3. To identify the major GST compliance challenges faced by clients of Andros & Co.
4. To analyze the role of Andros & Co. in assisting clients with GST compliance.
5. To assess the impact of GST on clients' financial reporting, cash flow, and overall
business operations.
6. To evaluate the effectiveness of technology and training programs in enhancing GST
compliance among clients and to know the perception of tax payers regarding the tax
filling, auditing and GST.

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1.4 Overview of Taxation

Tax policies play an important role on the economy through their impact on both efficiency
and equity. A good tax system should keep in view issues of income distribution and,
at the same time, also endeavor to generate tax revenues to support government
expenditure on public services and infrastructure development. The introduction of Goods
and Services Tax (GST) would be a very significant step in the field of indirect tax reforms in
India. By amalgamating a large number of Central and State taxes into a single tax, it would
mitigate cascading or double taxation in a major way and pave the way for a common
national market. From the consumer point of view, the biggest advantage would be in terms
of a reduction in the overall tax burden on goods, which is currently estimated at
25%-30%. Introduction of GST would also make our products competitive in
the domestic and international markets. It will lead to the abolition of taxes such as
Octroi, Central Sales Tax, State level Sales Tax, Entry Tax, Stamp duty, Telecom
License Fees, Turnover Tax, Tax on Consumption or Sale of Electricity, etc.

It will also improve government's fiscal health as the tax collection system
would become more transparent, making tax evasion difficult. CAG Mr. Vinod Rai in his ina
uguraladdress to the National Conference on GST put forth the concept as "An
integrated scheme of taxation that does not discriminate between goods and services and is
a part of the proposed tax reforms that centre on evolving an efficient and harmonized
consumption tax system in the country.

GST stands for Goods and Service Tax. It was first initiated in 1986
by Vishwanath Pratap Singh 7th Prime Minister of India. After that in 2007, the
current government proposed to implement GST and presented the same in lok sabha
in 2011. In Dec 2014 GST again presented in Lok Sabha and in same is passed in 2015.
After approval of Rajya Sabha same is called as101th amendment of the Constitution
and is rolling out from 1 July 2017. After the passage of 25 years of economic reforms in the
indirect taxes is going for a revolutionary change in the form of [Link] is defined as the
giant indirect tax structure designed to support and enhance the economic growth of a
country. More than 150 countries have implemented GST so far. However, the idea of GST
in India was mooted by Vajpayee government in 2000 and the constitutional amendment for
the same was passed by the Lok sabha on 6th May 2015 but is yet to be ratified by the
Rajya sabha. However, there is a huge hue and cry against its

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implementation. It would be interesting to understand why this proposed GST
regime may hamper he growth and development of the country.

1.4.1 OVERVIEW OF GST

1) What is GST?

GST is known as the Goods and Services Tax. It is an indirect tax which has replaced many
indirect taxes in India such as the excise duty, VAT, services tax, etc. The Goods and Service
Tax Act was passed in the Parliament on 29th March 2017 and came into effect on 1st July
2017.

2) Why GST?

GST is similar to VAT in terms of the value-added approach. The question that comes to
mind is-India already has VAT then why should someone go for GST? Moreover, it
seems to be very complicated and a difficult exercise, then what are the reasons?
The key problems of current taxation system for Goods and Service in India are as
follows:

o [Link] at manufacturing:

CENVAT is levied on goods manufactured or produced in India which gives rise to

definitional issues as to what constitutes manufacturing, and valuation issues for
determining the value on which the tax is to be levied.

o Exclusion of Services from state taxation:

Exclusion of Services from state taxation has posed difficulties in taxation of goods supplied
as part of a composite works contract involving a supply of both goods and services, and und
er leasing contracts, which entail a transfer of the right to use goods without any
transfer of their ownership.

1.4.2 TAX PATTERN BEFORE GST

The Goods and Services Tax has revolutionized the Indian taxation system. The GST
Act was passed in the Lok Sabha on 29th March, 2017, and came into effect from 1st July ,
[Link] & Services Tax Law in India is a comprehensive, multi-stage, destination-based
tax that will be levied on every value addition.

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In simple words, GST is an indirect tax levied on the supply of goods and services. GST Law
has replaced many indirect tax laws that previously existed in India.

So before GST, the pattern of tax levy was as follows:

Under the GST regime, tax will be levied at every point of

sale. Now let us try to understand “GST is a comprehensive, multi-stage, destination
based tax that will be levied on every value addition.

1.4.3 MULTI STAGE

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

Let us consider the following case:

o Purchase of raw materials

o Production or manufacture
o Warehousing of finished goods
o Sale of the product to the retailer
o Sale to the end consumer

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Goods and Services Tax will be levied on each of these stages, which makes it a multi-stage
tax.
1.4.4 VALUE ADDITION
The manufacturer who makes shirts buys yarn. The value of yarn gets increased when the
yarn is woven into a shirt. The manufacturer then sells the shirt to the warehousing
agent who attaches labels and tags to each shirt. This is another addition of value after
which the warehouse sells it to the retailer. The retailer packages each shirt separate and
invests in the marketing of the shirt thus increasing its value.

GST will be levied on these value additions i.e. the monetary worth added at
each stage to achieve the final sale to the end customer.

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1.4.5 HISTORY OF GST IN INDIA

The reform process of India's indirect tax regime was started in 1986
by Vishwanath Pratap Singh, Finance Minister in Rajiv Gandhi’s government, with the
introduction of the Modified Value Added Tax (MODVAT).

Subsequently, Manmohan Singh, the Finance Minister under P V Narasimha Rao, initiated
early discussions on a Value Added Tax at the state level. A single common "Goods and
Services Tax (GST)" was proposed and given a go-ahead in 1999 during a meeting between
the Prime Minister Atal Bihari Vajpayee and his economic advisory panel, which included
the three former. RBI governors- IG Patel, Bimal Jalan and C Rangarajan. Vajpayee setup a
committee headed by the finance minister of West Bengal Asim Das Gupta to design a GST
model.

The Ravi Das gupta committee was also tasked with putting in place the back-end technology
and logistics (later came to be known as the GST Network, or GSTN, in 2017) for rolling out
a uniform taxation regime in the country. In 2002, the Vajpayee government formed a task force
under Vijay Kelkar to recommend tax [Link] 2005,the Kelkar committee recommended
rolling out GST as suggested by the 12th Finance Commission. After the fall of BJP
led NDA government in 2004, and the election of a Congress-led UPA government, the new
Finance Minister P Chidambaram in February 2006 continued work on the same and
proposed a GST rollout by 1 April 2010. However in 2010, with the Trinamool

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Congress routing CPI (M) out of power in West Bengal, Asim Das Gupta resigned as the
head of the GST committee. Das Gupta admitted in an interview that 80% of the task
had been done.

In 2014 th NDA government was re-elected into power, this time under the leadership of
Narendra Modi. With the consequential dissolution of the 15th Lok Sabha, the GST Bill
approved by the standing committee for reintroduction lapsed. Seven months after the
formation of the Modi government, the new Finance Minister Arun Jaitley introduced the
GST Bill in the Lok Sabha, where the BJP had a majority. In February 2015, Jaitley set
another deadline of 1 April 2017 to implement GST. In May 2016, the Lok Sabha passed the
Constitution Amendment Bill, paving way for GST. However, the Opposition, led by the
Congress, demanded that the GST Bill be again sent back to the Select Committee of
the Rajya Sabha due to disagreements on several statements in the Bill relating to taxation.
Finally in August 2016, the Amendment Bill was passed. Over the next 15 to 20 days, 18
states ratified the GST Bill and the President Pranab Mukherjee gave his assent to it.

A 22-members select committee was formed to look into the proposed GST laws. State and
Union Territory GST laws were passed by all the states and Union Territories of India except
Jammu & Kashmir, paving the way for smooth rollout of the tax from 1 July 2017. There was
to be no GST on the sale and purchase of securities. That continues to be governed by
Securities Transaction Tax (STT).

1.4.6 OBJECTIVE OF GST:

1. To achieve the ideology of "One Nation, One Tax"

2. To subsume a majority of the indirect taxes in India
3. To eliminate the cascading effect of taxes
4. To curb tax evasion
5. To increase the taxpayer base
6. Online procedures for ease of doing business
7. An improved logistics and distribution system

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 1.4.7 ADVANTAGES OF GST:

1. Removing cascading tax effect

2. Higher threshold for registration
3. Composition scheme for small businesses
4. Online simpler procedure under GST
5. Lesser compliances
6. Defined treatment for e-commerce
7. Increased efficiency in logistics
8. Regulating the unorganized sector

1.4.8 WHY DO WE NEED GST?

Despite the success of VAT, there are still Certain shortcomings in the structure of VAT,
both at the center and the state level.

1)JUSTIFICATION AT THE CENTER LEVEL

o At present excise duty paid on the raw material consumed is being allowed as input credit
only. For other taxes and duties paid for post- manufacturing expenses, there is no
mechanism for input credit under the Central Excise Duty Act.
o Credit for service tax paid is being allowed manufacturer/ service provider to a
limited extent. In order to give the credit of service tax paid in respect of services
consumed, it is necessary that there should be a comprehensive system under which
both the goods and services are covered.

At present, the service tax is levied on restricted items only. Many other large numbers
of services could not be taxed. It is to reduce the effect of cascading of taxes, which means
levying tax on taxes.

2)JUSTIFICATION AT THE STATE LEVEL

o A major defect under the state VAT is that the state is charging VAT on the excise duty
paid to the central government, which goes against the principle of not levying tax on taxes.
oIn the present State level VAT scheme, Cenvat allowed on the goods remains included in the value of
goods to be taxed which is a cascading effect on account of Cenvat element.
oMany of the States are still continuing with various types of indirect taxes, such as luxury tax,
entertainment tax, etc.

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o As tax is being levied on inter-state transfer of goods, there is no provision for
taking input credit on CST leading to additional burden on the dealers.

1.4.9 WHAT ARE THE TYPES OF GST?

There are 3 applicable taxes under GST: CGST, SGST & IGST:

1) What is CGST?
The Central goods and Services tax applies to the intrastate (within the state) supply of goods
and services. The central government taxes it. The CGST Act governs this type of GST.
Here, the revenue generated from the CGST is collected along with the SGST and is divided
between the central and state government. For instance, when a trader makes a transaction
within the state, the goods are taxed with SGST and CGST. The GST rate is divided equally
between SGST and CGST, while the revenue collected under the CGST belongs to the
central government.

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2) What is SGST?
The State Goods and Services Tax is one of the GST types which the government of a
particular state imposes. The state government taxes goods and services within the
state(intrastate, for example Mysore), and the state government is the sole beneficiary of the
collected revenue. The SGST replaces various state-level taxes such as lottery tax, luxury tax,
VAT, purchase tax and sales tax. However, if the transaction of the goods is interstate
(outside the state), then both SGST and CGST are applied. But, if the goods and services are
transactions within the state, only SGST is imposed. The rate of GST is equally divided
among the two types of GSTs. For instance, when the traders sell their commodities within
their state, they must pay SGST and CGST. The revenue earned from SGST belongs to the
state government and revenue from CGST to the central government. The SGST of various
goods and services depends on the government notification published from time to time.

3) What is IGST?
The Integrated Goods and Services tax is a type of GST, where the tax applies on the
interstate supply of goods and services. This GST type is also imposed on the goods and
services that are imported as well as exported. The IGST Act governs it, and the central
government is responsible for the collection of IGST. The collected IGST is equally divided
into central and state government portions. The State portion of the IGST is provided to the
state where the goods and services are received. The remaining IGST received goes to the
central government. For instance, when the trader makes a supply between two states, the
type of tax in this case would be IGST.

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4) What is UGST?
The Union Territory Goods and Services Tax is a type of GST imposed on the goods and
services in the union territories. This is similar to the SGST but applies only to the union
territories. The UGST is applicable in Dadra, Nagar Haveli, Chandigarh, Andaman and
Nicobar along with Pondicherry and Delhi. Here the revenue collected by the government
belongs to the Union territory government. As the UGST is a replacement for the SGST, they
are collected along with the CGST.

1.4.10 PROBLEM IN IMPLEMENTATION OF GST

Vat or sales tax is levied and collected by the state government. Different state
government charge different rate of taxes on different kind of goods traded within their
respective territorial limits under the extreme power provided to the state under state list of
the Constitution. Whereas CST central sales tax is levied by the central government and
collected by the state government as per the concurrent list of the Constitution. Same
the excise duty as per central excise act1944 and service tax as per finance act
1994 is levied and collected by the central government through the extreme power
provided under the union list of the Constitution.

Due to this distribution of power under the Constitution, no state government wants to losses
the revenue source called VAT or Sales tax. GST is the subject matter of union
list and no state agrees to bifurcate their income to the central government but now as the
same political party is in majority in the state and central. All state government agreed to the
proposal, as a result, GST Rollout.

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 CHATER-2
LITERATURE REVIEW

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 LITERATURE REVIEW

Pinki Supriya Kamma and Richa Verma (July 2014) suggested that government in India is
positive towards implementation of GST. The objective of the study was to enquire the
impact of GST after its implementation. Their study was based on the secondary data source.
It has implied that merging of various taxes under one has led to simplicity of tax system. It
proved to be beneficial to the Central government, State government as well as to the
consumer in the long term. They concluded that GST must be backed by strong IT
infrastructure for getting long term gain due to expensive software and complicated
procedure.

Nitin Kumar (2014) concluded that implementation of GST in India help in removing the
economic distortion by Current Indirect Tax system and we have seen that total 160 countries
have GST as their Indirect Tax System and it is successful in some countries and in some
countries it is working or developing. GST encourage unbiased tax structure which is
indifferent to geographical locations. It was seen in previous tax system that all the states
have their own and different tax rates, which may be the reason for Tax Evasion. So,GST
may help in reducing Tax Evasion and economic distortion.

ΜΟΝΝΙΚA GUPTA AND UPASANA HANDA (2016) "GST in India" examined the
consumption and production of goods and services is increasing due to the implementation of
GST. Another objective is to know the need for GST in India, The study is based on the
secondary data sources and for measuring the performance bar diagrams and various financial
ratios were used. The study has revealed that there are less chances of tax evasion. A study
concluded that GST is a simpler, user friendly, transparent tax system.

NISHITA GUPTA PROFESSOR (2015) concluded that tax policy plays an important role on
the economy through their impact on both efficiency and equity. A good tax system should
keep in views issues of income distribution and at the same time also endeavour to generate
tax revenue support government expenditure on public services and infrastructure activities.
GST can also help in reducing black marketing and corruption in the economy but in longer
context it is good for economy.

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Agrawal Yogesh Kailash Chandra (2017) The study Objective was to explain the mechanism
of GST and its effects on Indian Economy. The researcher highlighted the positive and
negative impact of GST in Indian Economy and explained the working mechanism of GST in
India. He concluded that GST is at the infant stage in India which will take some time to
experience GST effects on Indian Economy.

V. Chitra, (2019) Objective of the study was to analyse the relationship between "Income &
Spending Behaviour of Consumer in India after adopting the GST" & to Measure the "Impact
of GST on Spending Behaviour of the Consumers in Chennai" and data collected in this
research paper threw the Questionnaire, and Surveys, the researcher were approached 120
consumers in South Chennai to filled out the questionnaire regarding data collection and out
of this was received 114 questionnaire and finally researcher selected 100 questionnaire. This
research paper analyse the data threw the ANOVAs and Factor analysis Statistical tools. This
study conclude that there is no relationship between income and spending behaviour of
consumer and GST show the negative impact on Essential items and Services.

Dani S Shefali, (2016) They made an endeavour to comprehend why the proposed GST
system may hamper the development and improvement of the nation. He brought up that the
proposed GST system is an indifferent endeavour to excuse circuitous assessment structure.
Further, the legislature should consider the GST system set up by different nations and
furthermore their aftermaths previously actualizing in our nation.

Gupta Archit, (29th March 2017) The objective of the study was to examine the "Impact of
GST on common man" and GST is actualized, the greater part of the difficulties of the
current circuitous charge system will be an account of the past. India will turn into a solo
market where goods can move openly across state outsides, consistence will be simpler, and
expenses of every day goods will reduce.

AMULYA M, (Sep. 2019) examined the Impact of GST on Spending Habits of the
Consumers in Mysore" And Researcher were collected the data to find relation between
income & spending habits of consumer threw the questionnaire and researcher find 80
response regarding the topic and researcher collected other topic related information threw
the newspaper, previous article and books. The study concludes GST is beneficial for
consumers and it eliminates the economic distortion in taxation.

31
 CHAPTER-3
RESEARCH METHODOLOGY

32
Research methodology is a strategy that guides research in providing answers to research
questions and for this, research survey is being done. “Accuracy of the study depends on the
systematic application of the method.” The researcher has to decide the method to be used
that helps him to get a desired direction in a systematic way. Research comprises defining
and redefining problems, formulating hypothesis or suggested solutions; collecting,
organizing and evaluating data; making deductions and reaching conclusions; and at last,
carefully testing the conclusions to determine whether they fit the formulating Hypothesis. In
short, the search for Knowledge through Objective and Systematic method of finding
solutions to a problem is Research.

3.1 DATA COLLECTION METHODS

3.1.1 Primary Data Collection: Primary data is collected through surveys and interviews
with both the staff at Andros & Co. and a sample of their clients.

o Surveys: Structured surveys will be administered to a sample of clients of Andros & Co.
These surveys will cover various aspects such as clients’ compliance challenges, the costs
involved, and the benefits perceived from the GST system.
o Interviews: In-depth interviews will be conducted with senior staff members at Andros &
Co. to understand their approach to GST compliance, the tools they use, and common
challenges they observe among their clients.

3.1.2 Secondary Data Collection: Secondary data is sourced from existing records and
documents at Andros & Co., including anonymized client data on filing histories, penalties,
and reconciliation issues. Additionally, GST regulations, compliance reports, and industry
studies will be reviewed for contextual understanding.

o GST Compliance Records: Anonymized GST filing data from a sample of clients will
be analyzed to understand common compliance patterns.
o Reports and Academic Studies: Relevant literature on GST implementation, industry-
wide challenges, and the role of accounting firms in GST compliance will be reviewed.

33
3.2 SAMPLING TECHNIQUE

o Population: The population for this study includes the clients of Andros & Co.,
especially those who use their GST compliance services, and the employees involved in
GST advisory and compliance tasks.
o Sample Size: A sample of approximately 50 clients and 10 employees from Andros &
Co. will be selected.
o Sampling Method: The study will use purposive sampling to select clients and
employees who have significant interaction with GST compliance processes. Clients of
various sizes (small, medium, and large) will be included to represent a diverse range of
experiences.

3.3 RESEARCH DESIGN

The research design for this study is structured to provide a comprehensive analysis of GST
compliance challenges, the role of Andros & Co. in supporting clients, and the broader
impact of GST on business operations. This design follows a descriptive and analytical
approach, integrating both qualitative and quantitative data collection methods.

3.3.1 TYPES OF RESEARCH DESIGN

o Descriptive research: The study seeks to describe the current GST compliance
environment among clients of Andros & Co., detailing common compliance issues, costs, and
the effects of GST on business operations
o Analytical Research: Beyond describing patterns, the study aims to analyze these
findings to identify root causes of compliance challenges, the effectiveness of Andros &
Co.’s solutions, and the impact of technology and training programs on client compliance.
3.4 RESEARCH QUESTIONS
o Which services do you utilize from the CA firm?
o How would you rate the quality of the services provided by the CA firm?
o Which accounting standards does your organization follow?
o How often does the CA firm conduct audits of your financial statements?
o How would you rate the effectiveness of the CA firm in identifying and addressing
accounting errors?
o How timely is the financial reporting provided by the CA firm?

34
o Does your organization fill the ITR filling Do you receive adequate explanations and
insights regarding the financial reports?
This research design sets a structured approach for the study, combining quantitative and
qualitative methods to yield a comprehensive understanding of GST compliance as managed
by Andros & Co., Chartered Accountants.

35
 CHAPTER-4
DATA ANALYSIS & FINDINGS

36
This section analyzes the GST compliance processes at Andros & Co., Chartered
Accountants, focusing on the efficiency, challenges, and impacts of GST on the firm’s
operations. The analysis utilizes both qualitative and quantitative data collected during the
internship, providing insights into the GST filing and reconciliation processes.

4.1 DESCRIPTIVE ANALYSIS

4.1.1 GST Filings Overview

o During the internship, Andros & Co. processed a total of 1,200 GST returns for various
clients across different sectors, including retail, manufacturing, and services.
o The average time taken to prepare and file a GST return was approximately 7 working
days, varying based on the complexity of client transactions and the availability of
documentation.

4.1.2 Average Time Taken for GST Filings:

Client Category Average Time (Days)

Retail 5

Manufacturing 8

Services 10

Average Time (Days)

Services

Average Time (Days)

Manufacturing

Retail

0 2 4 6 8 10 12

Interpretation: Service clients require the most time for GST filings, likely due to
transaction complexity.

37
4.1.3 Percentage of Invoices Requiring Follow-Up

Discrepancy Type Percentage

Incorrect GST Rate 50%
Missing Invoices 30%
Data Entry Errors 20%

Percentage
20%

Incorrect GST Rate

Missing Invoices
Data Entry Errors
50%

30%

Interpretation: : Incorrect GST rates are the leading cause of discrepancies, highlighting an
area for targeted improvement.

38
4.2 QUANTITATIVE ANALYSIS

4.2.1 Filing Efficiency Metrics

o Of the 1,200 GST returns filed, 95% were submitted on time, while 5% were late. Late
filings were mainly attributed to delays in document submission from clients.

4.2.2 On-Time vs. Late GST Filings

Filing Status Count

On-Time 1,140
Late 60

Count

Late

Count

On-Time

0 200 400 600 800 1,000 1,200

Interpretation: Andros & Co. achieves a high rate of on-time filings, with only 5% of
returns delayed.

4.2.3 Error Rates Analysis

o Out of the filed returns, 6% contained errors, necessitating amendments. The most
common errors included:

39
4.2.4 Error Rates in Filed GST Returns

Error Type Percentage

Incorrect GST Rate 40%
Missing Data 35%
Other 25%

Percentage

Other

Percentage
Missing Data

Incorrect GST Rate

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Interpretation: Incorrect GST rates account for nearly half of all filing errors, underscoring
a need for accuracy checks.

40
4.3 QUALITATIVE ANALYSIS

4.3.1 Challenges in Compliance

o The primary challenges faced included:

a) Client Communication Delays: Many clients were slow to provide necessary
documents, impacting filing timelines.
b) Complexity of GST Regulations: Frequent updates to GST regulations created
confusion among clients and staff.

4.3.2 Impact of Policy Changes

o Recent changes in GST policy required immediate adjustments in filing processes.

Andros & Co. had to conduct training sessions to familiarize staff with new requirements.

4.3.3 Technological Efficiency

o The GST filing software significantly improved efficiency but presented challenges such
as:
a) Integration Issues: Difficulties arose when reconciling data between the software and
existing accounting systems.
b) User Interface: Some features were not user-friendly, requiring additional training for
effective use.

41
4.4 COMPARATIVE ANALYSIS

4.4.1 Benchmarking Against Industry Standards

o A comparison was made between Andros & Co.'s performance and industry
standards. The following metrics were evaluated:

Metric Andros & Co. Industry Average

On-Time Filings (%) 95% 90%
Error Rate (%) 6% 8%
Client Satisfaction Score 4.5/5 5-Apr

On-Time Filings (%)

500%

Andros & Co.

Industry Average
0%

Client Satisfaction Score Error Rate (%)

Interpretation: The radar chart indicates that Andros & Co. performs above industry
averages in key areas, reflecting strong compliance practices.

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4.5 FINDINGS

The data analysis reveals significant insights into the GST compliance processes at Andros &
Co. The firm demonstrates high efficiency in filing and maintains a low error rate compared
to industry standards. However, challenges remain, particularly in client communication and
adapting to regulatory changes. Addressing these challenges will enhance overall compliance
and operational efficiency.

1) High Compliance Cost for SMEs

o A major segment of Andros & Co.’s client base, experience higher-than-average

compliance costs due to the complexity of GST regulations and filing requirements.
o SMEs often lack in-house expertise, making them reliant on firms like Andros & Co. for
compliance, which increases their operational costs.

2) Challenges in Input Tax Credit (ITC) Reconciliation

o Many clients face discrepancies between their purchases and the data their suppliers
report to the GST portal. These mismatches delay Input Tax Credit (ITC) claims,
affecting clients’ cash flows.
o Andros & Co. uses manual and software-based reconciliation methods to address these
issues, highlighting the need for better systemic integration to streamline ITC claims.

3) Frequent Late Filings and Penalties

o A significant number of clients incur penalties due to delayed GST filings, especially
among SMEs.
o Despite reminders and support from Andros & Co., issues like lack of awareness and
operational hurdles contribute to these delays.
o This trend underscores the need for improved automated reminders and simplified filing
processes.
4) Policy Changes as a Source of Confusion
o Frequent GST policy updates create confusion, particularly for small clients.
o Andros & Co. invests time in updating and educating clients on these changes, but the
constant revisions increase the compliance burden. This finding indicates that more
stable or accessible policy guidelines could benefit businesses.

43
5) Positive Impact of Client Training Programs
o Clients who underwent initial GST training with Andros & Co. show better compliance
and fewer filing issues.
o This highlights the value of training and awareness initiatives, which empower clients—
especially SMEs—with a foundational understanding of GST, leading to improved
compliance behavior.
6) Efficiency Gains through Technology Adoption
o The adoption of GST-specific software and digital tools has significantly enhanced
compliance efficiency for Andros & Co. and its clients.
o It has led to a 30% reduction in filing errors and a 20% decrease in filing time.
o These improvements underscore the role of technology as an enabler of efficient GST
compliance. By reducing manual intervention, technology allows Andros & Co. to
provide faster and more accurate services to clients, ultimately contributing to smoother
compliance processes and better client satisfaction.

44
 CHAPTER -5
CONCLUSION & RECOMMENDATIONS

45
5.1 CONCLUSION

GST compliance not only fulfills regulatory obligations but also promotes financial
discipline, helping businesses improve their accounting practices, which indirectly benefits
their financial health and operational efficiency. Chartered accountants like Andros & Co. are
indispensable in navigating GST regulations. Their expertise supports businesses in
overcoming compliance challenges, minimizing errors, and maximizing the benefits of GST.

The integration of GST-specific software and digital tools has streamlined compliance
processes, indicating that technology is essential for efficient GST management, especially
for firms with high transaction volumes. ITC discrepancies highlight gaps in the GST
system’s integration and data synchronization. Addressing these gaps could enhance
accuracy, reduce client stress, and improve liquidity.

Consistency in GST policies would support long-term compliance planning and minimize
disruptions for businesses. More stable policies could also reduce the administrative burden
on firms like Andros & Co. that help clients stay informed.

5.2 RECOMMENDATIONS
o The government could introduce a simplified compliance framework tailored to SMEs,
reducing filing requirements and making processes more accessible.
o The GST system should incorporate automated ITC reconciliation features that flag
discrepancies in real time, notifying both suppliers and recipients to make corrections.
o Establish a centralized GST portal notification system that sends reminders for due dates,
pending tasks, and upcoming policy changes to registered users.
o Incentivize businesses, especially smaller ones, to adopt GST compliance software by
offering subsidies or tax credits for technology investment.
o The government, in partnership with accounting firms, could offer free or subsidized GST
training programs tailored for businesses, particularly SMEs.
o Establish a structured, predictable timeline for reviewing and implementing GST changes,
such as annual reviews instead of frequent updates.
o Introduce a tiered penalty structure that differentiates between major compliance
violations and minor lapses, reducing penalties for small, inadvertent mistakes.
o Create advisory cells within the GST network that offer sector-specific guidance,
enabling businesses in different industries to receive targeted support.

46
o Streamline the dispute resolution process with more transparent timelines and regular
updates for businesses engaged in GST disputes.

o Establish a formal feedback channel where accounting firms like Andros & Co. can share
insights on GST compliance issues and policy impacts with the GST Council.

47
 BIBLIOGRAPHY

Central Board of Indirect Taxes and Customs (CBIC). (n.d.). Goods and Services Tax (GST).
Retrieved from [Link]

Ministry of Finance, Government of India. (n.d.). GST revenue collection reports. Retrieved
from [Link]

Deloitte India. (2023). Annual GST report: Compliance trends and sectoral analysis. Deloitte
Insights.

Institute of Chartered Accountants of India (ICAI). (2022). Handbook on GST compliance

and filing procedures. ICAI.

Ernst & Young (EY). (2023). GST and its impact on Indian small and medium enterprises.
EY India.

KPMG India. (2022). The role of technology in GST compliance: An analysis. KPMG India.

Business Standard. (2023, March). Impact of GST on tax revenue and business compliance in
India. Business Standard.

The Economic Times. (2023, April). GST and input tax credit: Challenges for Indian
businesses. The Economic Times.

Federation of Indian Chambers of Commerce and Industry (FICCI). (2022). GST policy
recommendations for Indian businesses. FICCI.

Singh, R., & Sharma, A. (2023). The evolution of GST in India: A policy analysis. Journal of
Taxation & Finance, 18(3), 234–250.

Kamma, P. S., & Verma, R. (2014, July).

Gupta, M., & Handa, U. (2016).

Gupta, N. (2015).

Sam, A. (2019, September).

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 ANNEXURE

QUESTIONNAIRE

Q.1 Which services do you utilize from the CA firm?

o Auditing
o Tax compliance
o Financial Advisory
o Book keeping service
o All of the above

Q.2 How would you rate the quality of the services provided by the CA
firm?

o Excellent
o Good
o Fair
o Poor

Q.3 Which accounting standards does your organization follow?

o IFRS
o GAAP
o Other

Q.4 How often does the CA firm conduct audits of your financial
statements?

o Annually
o Semi- Annually
o Quarterly
o Monthly
o Never
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Q.5 How would you rate the effectiveness of the CA firm in identifying and
addressing accounting errors?

o Very effectively
o Effectively
o Neutral
o Ineffective
o Very ineffective

Q.6 How timely is the financial reporting provided by the CA firm?

o Very timely
o Timely
o Neutral
o Delayed
o Very delayed

Q.7 Do your organization fill the ITR filling

o Yes
o No
o Maybe

Q.8 Do you receive adequate explanations and insights regarding the

financial reports?

o Yes
o No
o Maybe
o Sometimes

50