Summer internship report

ITR FILING AND GSTR FILING

A report submitted in partial fulfillment
of the requirements for the award of degree
Of [Link](SEMV).

SAI GST AND INCOME TAX

Duration from 10th June 20th July
SUBMITTED BY SIGNATURE OF AUTHORITY
ALIHA KAZMI
[Link](SEMV)
LC/22/22860
F.A.A. GOVT. P.G. COLLEGE
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 DECLARATION BY STUDENTS

This to declare that the internship work certified

“GSTR FILING and ITR FILING” Is a Bona fide
Work carried out by myself at SAI GST AND
INCOME TAX SERVICES under the supervision
and guidance of MR. SUNDARAM from 10th June
to 10th July and this internship report is submitted
Partial fulfillment of award of DEGREE “[Link]” of
F.A.A GOVT. P.G COLLEGE, During the session
2024-25.

2
 Acknowledgement

I would like to express my sincere gratitude to MR.

SUNDARAM for providing me the opportunity to
pursue my internship at SAI GST AND ITR
SERVICES. It has been an invaluable learning
experience that has contributed immensely to my
professional and personal development.
I am extremely grateful to my supervisor MR.
SUNDARAM for his invaluable guidance,
encouragement and support during my time here.
His insights and advice have pushed me to grow and
learn in ways I didn’t think possible. I could not
have asked for a better mentor.
I would also like to thank the wonderful team at SAI
GST AND ITR SERVICES . Thank you for making
me feel so welcomed and for patiently answering all
my questions. Your passion and dedication to your
work is truly inspiring.

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Finally, I want to thank my professors at FAA
GOVT. P.G COLLEGE, especially Prof. VISHAL
VERMA and Prof. SHISHIR SHRIVASTAV, for
laying the foundation that allowed me to maximize
this internship opportunity.
This internship has been a defining period in my life
and I could not have done it without all of your help.
Thank you.

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 CONTENT

1. Executive summary
2. Firm’s overview
3. Overview of GST
4. Introduction to ITR
5. Work experience
6. Key learning
A. GST registration process
B. Purpose and process for filing GSTR1
and GSTR3B
C. Income tax filing and income tax
calculation
D. ITR filing process
7. Challenges faced during
internship
8. Conclusion
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 EXECUTIVE SUMMARY

This report provides a detailed overview of

my 40-day internship at SAI GST Solutions,
a small firm located in the town area of
MAHMUDABAD. The internship was
focused on learning the intricacies of Goods
and Services Tax (GST) filing and Income
Tax Return (ITR) filing, providing hands-on
experience in these crucial areas.

KEY LEARNING:

1 .GST Filing:
Forms and Returns: I gained comprehensive
knowledge about various GST forms
such as GSTR1, GSTR3B, and Table F.
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  Compliance and Regulations:
Understanding the compliance
requirements and regulations
governing GST in India.
 Practical Application: Performing
tasks related to the filing of GST
returns, including preparation and
submission of various forms and
dealing with non-taxable supplies.

2. ITR Filing:
 Types of ITR Forms: I learned the
details and differences between ITR 1,
ITR 2, ITR 3, and ITR 4.
 Filing Process: Practical experience
in the step-by-step process of filing
income tax returns for individuals and
businesses.
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  Documentation and Verification:
Ensuring accurate documentation and
verification of information before filing
returns.

RESPONSIBILITIES:

 Data Entry and Analysis: Entering data

for GST and ITR filings, analyzing financial
statements, and ensuring accuracy.
 Client Interaction: Communicating with
clients to gather necessary information and
clarify their queries.
 Document Verification: Checking and
verifying documents required for GST and
ITR filings.

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 FIRM’S OVERVIEW
SAI GST Solutions is a specialized financial
services firm that caters primarily to small
businesses and enterprises. The company's core
focus is on providing comprehensive assistance
with Goods and Services Tax (GST) compliance,
Income Tax Return (ITR) filing, and essential
accounting services. Operating in the dynamic
landscape of India's taxation system, SAI GST
Solutions plays a crucial role in helping its clients
navigate the complexities of financial regulations
and reporting requirements.

KEY SERVICES:

1. GST Filing Services:

 Assistance with GST registration
 Monthly/quarterly GST Return filing (GSTR-
1, GSTR-3B)
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  Annual GST return filing (GSTR-9,
GSTR-9C)
 GST reconciliation and audit support
 Management of input tax credit
 Guidance on GST rates and classifications

2. Income Tax Return (ITR) Filing:

 Individual ITR filing (ITR-1 to ITR-4)
 Business and professional ITR filing (ITR-
3, ITR-5, ITR-6)
 Tax planning and advisory services
 Assistance with tax deductions and
exemptions
 Support for handling tax notices and
assessments

3. Accounting Services:

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  Bookkeeping and maintenance of financial
records
 Preparation of financial statements
(Balance Sheet, Profit & Loss Account)
 Bank reconciliation
 Accounts receivable and payable
management
 Inventory management and valuation
 Financial analysis and reporting

Target Clientele:
SAI GST Solutions primarily serves small firms,
startups, and individual professionals who
require expert guidance in managing their tax
obligations and financial records. The firm's
client base typically includes:
 Small retail businesses
 E-commerce sellers

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 Service providers (consultants, freelancers,
etc.)
 Small-scale manufacturers
 Local traders and distributors

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 INTRODUCTION TO GST

Definition: GST is an indirect tax that is levied

on the supply of goods and services. It is a single tax
that applies to the entire nation.
Objective: The main objective of GST is to
eliminate the cascading effect of taxes, reduce tax
evasion, and create a unified national market.
History of GST in India:
Initial Proposal: The concept of GST was first
proposed in 2000 by the ATAL BIHARI Vajpayee
government.
Implementation: GST was implemented on July 1,
2017, by the NARENDRA MODI government
under the GST Act, 2017.

3. Structure of GST:
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  CGST (Central GST): Levied by the central
government on intra-state supplies.
 SGST (State GST): Levied by state
governments on intra-state supplies.
 IGST (Integrated GST): Levied by the central
government on inter-state supplies.
 UTGST (Union Territory GST): Levied by
union territories on intra-UT supplies.

4. Features of GST:
 Destination-Based Tax: GST is levied at the
point of consumption rather than the point of
origin.
 Dual GST Model: Both the central and state
governments levy taxes on a common tax base.
 Input Tax Credit: Businesses can claim credit
for the taxes paid on inputs, which helps in
reducing the overall tax burden.

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5. Benefits of GST:
 Simplification of Tax Structure: GST
replaces multiple indirect taxes, reducing the
complexity of the tax structure.
 Reduction in Cascading Effect: GST
eliminates the tax on tax, reducing the overall
tax burden on goods and services.
 Increased Compliance: GST encourages
transparency and compliance through online
filing and other measures.
 Boost to the Economy: GST creates a
common national market, promoting trade and
economic growth.

6. Components of GST:
 Supply: GST is levied on the supply of goods
and services.
 Time of Supply: Determines when the GST
should be charged.

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  Place of Supply: Determines the location
where the GST should be levied.
 Value of Supply: Determines the amount on
which GST should be calculated.

7. GST Rates:
 GST has multiple tax rates: 0%, 5%, 12%,
18%, and 28%. Different goods and services
are categorized under these rates.

8. GST Council
 Constitution: The GST Council is constituted
by the President of India under Article 279A
of the Indian Constitution.
 Members: It comprises the Union Finance
Minister, the Union Minister of State for
Finance, and the finance ministers of all the
states.

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  Role: The GST Council makes
recommendations on various issues related to
GST, including tax rates, exemptions, and
model laws.

9. GST Returns:
 Businesses need to file monthly, quarterly, and
annual returns based on their turnover and the
nature of their transactions.
 Common GST returns include GSTR-1,
GSTR-3B, GSTR-4, and GSTR-9.

10. Conclusion:
 GST is a landmark reform in India’s indirect
tax system, aimed at creating a single, unified
market, simplifying the tax structure, and
promoting economic growth. Despite initial
challenges, it has been instrumental in bringing

17
 about significant changes in the taxation
landscape of the country.

This comprehensive overview should help you with

your internship report on GST. If you need more
specific details or examples, feel free to ask.

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 Introduction to itr
( income tax return)

 An ITR is a form that taxpayers use to report

their income earned during a financial year
(April 1 to March 31) and the taxes paid on it to
the Income Tax Department of India.
 It serves as a document to declare your income
and taxes to the government.

2. ITR Filing:
 ITR filing refers to the process of submitting
your Income Tax Return form to the Income
Tax Department.
 It is mandatory for individuals and entities
whose income during a financial year exceeds
the threshold limit specified by the Income
Tax Act.
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Importance of ITR Filing:

 Legal Requirement: It is a legal obligation

under the Income Tax Act, 1961, for eligible
taxpayers to file their ITR within the due dates
specified by the Income Tax Department.

 Financial Record: ITR serves as proof of your

income and tax payments. It is often required as
supporting documentation for various financial
transactions like applying for loans, visas, etc.

 Claiming Refunds: If excess taxes have been

deducted from your income, filing ITR allows
you to claim a refund from the government.

Types of ITR Forms:

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The type of ITR form you need to file depends on
your sources of income, residential status, and other
specific criteria. As of recent updates, there are
different types of ITR forms (e.g., ITR-1, ITR-2,
ITR-3, etc.) catering to various categories of
taxpayers.

KEY POINTS TO REMEMBER:

 Due Dates: Ensure you file your ITR within the

due date to avoid penalties and interest.

 Accuracy: Provide accurate information

regarding your income, deductions, and taxes
paid to avoid scrutiny or penalties from tax
authorities.

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  Verification: After filing, the ITR needs to be
verified either electronically (through Aadhaar
OTP, net banking, etc.) or by sending a signed
physical copy to the Income Tax Department.

In summary, ITR and ITR filing are critical aspects of

compliance with income tax laws in India, ensuring
transparency and accountability in the taxation
system.

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 WORK EXPERIENCE
During my summer internship, I gained
valuable experience in handling GST returns
(GSTR filing), income tax returns (ITR
filing), and various related accounting tasks.
My responsibilities included ensuring timely
and accurate filing of GSTR forms, which
involved meticulous data entry and
verification to comply with tax regulations.
Additionally, I handled ITR filings, which
required me to analyze financial documents,
prepare tax computations, and submit returns
within deadlines. These tasks enhanced my
understanding of tax compliance and
accounting principles, while also improving
my attention to detail and time management
skills in a professional setting.
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 KEY LEARNINGS

Day activities
Introduction to GST and its
W 1. importance.
E 2. Basics of GST filing.

E Learning GST registration

3.
K Practical exercises on GST
4. registration.
1
Overview of ITR and its types
5. (ITR 1, ITR 2).

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 DAY ACTIVITIES
Detailed study of ITR 1 and
W 1. ITR 2.
Practical exercises on filing
E 2. ITR 1 and ITR 2.
E Introduction to GSTR 1 and
3. 3b.
K Practical exercises on GSTR
4. 1 and 3b.
2
Learning non-taxable
5. supplies.

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 DAY ACTIVITIES
Information on GST
W 1. compliance and penalties.
E 2. Different types of taxpayers in
ITR filing.
E Processing and claiming GST
3. refunds.
K
Detailed study of ITR 3.
4.
3
Practical exercises on filing ITR
5. 3.

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 DAY ACTIVITES
W 1. Detailed study of ITR 4.

E 2. Practical exercises on filing

ITR4.
E Review of all GST forms
3. learned so far.
K
Practice session on GST
4.
4 filing.
Doubts and Q and A session.
5.

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 DAY ACTIVITIES
W Consolidation of GST and ITR
1. knowledge.
E
Mock filing of GST and ITR.
2.
E
Review and feedback on mock
K 3. filings.
Advanced topics in GST and
5 4. ITR.

Final assessment and wrap-up

5. session.

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 GST REGISTRATION PROCESS
1. INTRODUCTION TO GST:
 Goods and Services Tax (GST) is a
comprehensive indirect tax levied on the
supply of goods and services in India.
 It has replaced various indirect taxes like
excise duty, service tax, VAT, etc., aiming
to create a unified tax structure.

2. ELIGIBILITY FOR GST

REGISTRATION:
 Businesses whose turnover exceeds the
threshold limit (currently Rs. 40lakhs for
goods suppliers and Rs. 20lakhs for service
providers).
 Inter-state suppliers, casual taxable
persons, non-resident taxable persons, and

29
 those required to deduct TDS (Tax
Deducted at Source).

3. DOCUMENTS REQUIRED FOR GST

REGISTRATION:
 For Proprietorship: PAN card, Aadhaar
card, photograph, bank account details, and
business address proof.
 For Partnership/LLP: Partnership
deed/LLP agreement, PAN cards of
partners, Aadhaar card, photograph, bank
account details, and business address proof.
 For Company: Certificate of
incorporation, MOA/AOA, PAN card of
the company, Aadhaar card, photograph,
bank account details, and business address
proof.

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4. GST REGISTRATION PROCEDURE:

a. Accessing GST Portal:

o Visit the GST online portal
([Link]
o Click on the 'Services' tab and select
'Registration' > 'New Registration'.

b. Filling the Application Form (GST REG-

01):
 Enter details such as business name,
PAN, email address, mobile number, state,
and jurisdiction.

c. Uploading Documents:

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  Upload scanned copies of required
documents (as mentioned above) based on
the type of business entity.

d. Verification:
 After filling the form and uploading
documents, a verification code (OTP) is
sent to the registered mobile number and
email ID.

e. ARN Generation:
 Upon successful submission, an
Application Reference Number (ARN) is
generated.

32
 PURPOSE OF GSTR1 AND GSTR3B
[Link]-1: This return is filed to report
details of outward supplies of goods or
services made by registered taxpayers. It
includes information on sales, exports,
credit/debit notes, and any adjustments
therein. GSTR-1 is crucial for:
 Tax Liability Determination: It helps
in calculating the tax liability of the
supplier.
 Input Tax Credit (ITC) Claim*: It
enables recipients to claim ITC based
on invoices uploaded by suppliers.

2. GSTR-3B: This is a summary return

where businesses declare their summarized
sales and purchases along with the tax liability

33
and ITC for a particular period. GSTR-3B
serves several purposes:
 Tax Payment: It facilitates payment of
tax liabilities by the due date.
 Interim Return: It acts as an interim
return to be filed monthly or quarterly,
summarizing tax liability without
invoice-level details.

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PROCESS FOR FILING GSTR1 AND 3B
GSTR-1:
1. Preparation of Invoices: Businesses must
prepare invoices for all outward supplies
(sales) made during the tax period.
2. Enter Details: Enter invoice-wise details of
all outward supplies made to registered
taxpayers (B2B) and unregistered taxpayers
(B2C), along with other details such as
exports, credit/debit notes, etc.
3. Verification: Ensure all details are accurate
and reconcile them with books of accounts.
4. File GSTR-1: Log in to the GST portal,
select the GSTR-1 form, and fill in all
necessary details. Validate the form using the
GST validation tool.

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5. Submission: After validation, submit the
GSTR-1 form using a digital signature (DSC)
or electronic verification code (EVC).

GSTR-3B:
1. Compute Tax Liability: Calculate the total
tax liability for the tax period by adjusting
eligible Input Tax Credits (ITC) against the
tax payable.
2. Fill Details: Enter details of outward
supplies (both taxable and exempted), ITC
availed, and other relevant details in the
GSTR-3B form.
3. Payment of Tax: Pay the tax liability by the
due date through online payment modes.

36
4. Filing: Log in to the GST portal, select the
GSTR-3B form, and fill in the computed
details.
5. Verification: Verify all details entered and
reconcile with books of accounts.
6. Submission: After verification, submit the
GSTR-3B form and proceed to file.

37
 INCOME TAX FILING

As the income tax return filing season

approaches it’s crucial for you as
accountants and tax professionals in
INDIA to equip yourselves and your
clients with the necessary knowledge to
navigate the process smoothly.
Firstly, let’s identify who is required to file
their ITR for the assessment year 2024-25
by 31.07.2024.

38
 Due date of ROI

Assess who Is 1. Company O

Required to 2. Audit required T
Furnish transfer under income H
Pricing report income tax. E
U/S 92E and 3. Partner of firm R
Partner of such whose accounts S
Firm. Are required to
Audited.

30th nov,24 31st oct,24 31st july24

39
Income tax calculations

Now that you have identified who needs to file

in the coming month, it is essential to make the
exact calculation of assess taxable income in
line with the current tax norms applicable to
him.
In INDIA, the income tax system operates on a
slab based structure, wherein varying tax rates
are applied to different income brackets. As
individual’s income increases, so do the
corresponding tax rates. This progressive
taxation model fosters fairness within the
country’s tax system. The income tax slabs
undergo periodic revision, often aligned with
each budget cycle, and these rates differ for
distinct categories of taxpayers.
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Here are the applicable tax rates for FY 2023-
24
INCOME TAX SLABS RATES FOR FY
2023-24/AY2024-25
OLD REGIME
SLABS Individual Senior Super
Aged<60years citizens(>=60year senior
But<80years) citizens
80
years
and
above
Up to NIL NIL NIL
Rs.250,000
Rs.250,001- 5% NIL NIL
Rs.300,000
Rs.300,001- 5% 5% NIL
Rs.500,000
Rs.500,001- 20% 20% 20%
Rs.10,00,000
Above 30% 30% 30%
Rs.10,00,000

41
The rebate amount under section 87A
allows a tax rebate of up to Rs. 12,500 for
individual with taxable income up to Rs.
500,000 under the old regime.

42
 NEW REGIME
SLABS INCOME TAX
RATES
Up to Rs.300,000 NIL
Rs.300,001-600,000 5%
Rs.600,001-900,000 10%
Rs.900,001-12,00,000 15%
Rs.12,00,001-15,00,000 20%

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 PURPOSE OF ITR FILING
1. Reporting Income: The primary purpose
of filing Income Tax Returns (ITR) is to
report all sources of income earned by an
individual or entity during a financial year to
the tax authorities.

2. Calculation of Tax Liability: It facilitates

the calculation of the tax liability based on the
total income earned and applicable tax rates
as per the Income Tax Act.

3. Claiming Deductions and Exemptions:

Taxpayers can claim deductions under

44
various sections of the Income Tax Act (like
Section 80C for investments, Section 80D for
medical insurance, etc.) and exemptions
which help in reducing taxable income.

45
 IMPORTANCE OF ITR FILING
1. Avoidance of Penalties: Timely filing of
ITR helps taxpayers avoid penalties and
interest charges that may be levied for late
filing or non-filing of returns.

2. Maintaining Compliance: It ensures

adherence to deadlines set by the ITD,
maintaining good compliance record which is
crucial for financial credibility.

3. Facilitates Tax Planning: Early filing allows

taxpayers to plan their finances better,
including tax payments, investments, and
availing benefits of tax-saving options within
the financial year.

46
 ITR FILING PROCESS

1. Gather Income Information:

 Collect all necessary documents
related to income sources such as
salary, interest income, rental income,
capital gains, business income, etc.

2. Compute Total Income:

 Calculate total income by aggregating
income from all sources after adjusting
for deductions under various sections
of the Income Tax Act, such as Section
80C, 80D, etc.

3. Verify Form Applicability:

47
  Determine the applicable ITR form
based on the nature of income,
residential status, and other criteria
specified by the Income Tax
Department (ITD).

4. Register/Login on Income Tax Portal:

 Create an account or log in to the
official Income Tax e-Filing portal
([Link]
n).

5. Fill Out ITR Form:

 Select the relevant ITR form and fill
in personal details, income details, tax
computation, and details of tax

48
 payment and TDS (Tax Deducted at
Source).

6. Verify Details:
 Review all information entered in the
ITR form for accuracy and
completeness.

7. Calculate Tax Liability:

 Compute total tax liability after
applying eligible deductions and
exemptions.

8. Pay Tax (if applicable):

 If there is any tax payable after
considering TDS and advance tax, pay
49
 it using the available online payment
options.

9. File ITR:
 After verifying the details and ensuring
all information is accurate, submit the
ITR form electronically on the portal.

10. Generate Acknowledgement:

 Once the ITR is successfully filed,
download and print the
acknowledgment (ITR-V) generated by
the portal.

50
 CHALLENGES FACED

1. UNDERSTANDING TAX RULES:

Tax laws can be complex and often
change, so keeping up with the latest
rules can be tough.

2. ACCURACY:
You need to make sure all financial
information is correct, as mistakes can
lead to problems.

3. MEETING DEADLINES:
Filing taxes on time and following all
regulations can be stressful and requires
careful attention.
51
4. LEARNING SOFTWARE:
Using specific tax software might be
hard at first if you are not familiar with
it.

5. EXPLAINING TO CLIENTS:
Sometimes it’s challenging to explain tax
details clearly to clients who may not
know much about finances.

6. HANDLING LOTS OF WORK:

There can be a lot of paperwork
especially during busy tax seasons which
can be overwhelming.

7. SOLVING PROBLEMS:
You might face unexpected issues that
require quick and accurate solutions.

52
8. KEEPING INFORMATION
PRIVATE:
Managing sensitive financial data
responsibly is crucial and can be
challenging.

53
 HOW I OVERCOME THESE
CHALLENGES

1. UNDERSTANDING TAX
RULES:
To overcome this challenge, I
adopted a proactive approach by
dedicating extra time to study recent
tax updates and regulatory changes. I
utilized resources such as official tax
guidelines, industry publications, and
online webinars to stay informed.
Additionally, I sought guidance from
my mentors and colleagues, which
provided practical insights and
clarified complex concepts. This
54
 approach helped me build a solid
understanding of the regulations and
apply them effectively in my tasks.

2. MANAGING TIGHT
DEADLINES:
To manage this challenge, I
developed a robust time
management strategy. I prioritized
tasks based on urgency and
complexity, creating a detailed
schedule to track progress and
allocate sufficient time for each task.
Utilizing project management tools
and maintaining open
communication with my supervisor
and team members helped in
55
 coordinating efforts and meeting
deadlines efficiently.

3. DEALING WITH CLIENT

QUERIES:
To effective handle client
interactions, I honed my
communication skills by practicing
clear, concise, and professional
responses. I also made it a point to
thoroughly research each query and
provide well-informed answers.
When faced with particularly
complex issues, I collaborated with
more experienced team members to

56
 ensure accurate and comprehensive
responses.
4. USING TAX SOFTWARE AND
TOOLS:
I addressed this challenge by
engaging in hands on practice and
attending training sessions offered by
the firm. I reviewed user manuals
and sought assistance from
colleagues who were proficient with
the software. By dedicating time to
practice and experimenting with
different features, I gained
confidence and proficiency in using
the tools.

57
 Conclusion

My internship at SAI GST AND ITR

SERVICES has been an enriching and
transformative experience, providing a
profound understanding of the intricacies
involved in GST and ITR SERVICES.
Over the course of the internship, I have
gained practical knowledge and hands on
experience in various aspects of taxation
and compliance, significantly enhancing
my professional skills and theoretical
understanding.
During my time with the firm, I actively
participated in diverse tasks such as GST

58
filing, ITR preparation and client
consultations. This exposure allowed me
to grasp the complexities of tax
regulations and the importance of
accurate financial documentation. I had
the opportunity to work closely with
seasoned professionals who shared their
insights on managing tax-related
challenges and optimizing financial
strategies for clients.
One of the key takeaways from this
internship was the importance of
meticulous attention to detail and
adherence to regulatory guidelines. I
learned how critical it is to stay updated
with evolving tax laws and how they
impact both individuals and businesses.
59
Additionally, the experience taught me
the value of clear communication with
clients to ensure they are well-informed
about their tax obligations and the service
provided.
The practical skills acquired, such as using
tax software, understanding GST
compliance requirements, and preparing
detailed financial reports, have
significantly enhanced my readiness for a
career in financial services. Furthermore,
the internship experience has provided
me with a clearer perspective on career
paths within the field of taxation and
financial consultancy.
In conclusion, my internship at SAI GST
AND ITR SERVICES has been
60
invaluable in bridging the gap between
academic learning and practical
application. The hands on experience,
coupled with the guidance and
mentorship received, has laid a strong
foundation for my future career
endeavors in the field of taxation and
finance. I am grateful for the opportunity
and look forward to applying the skills
and knowledge gained in my future
professional journey.

61