PROJECT REPORT

ON
“GSTR 2A RECONCILATION”
with
AYURVET LIMITED

Summer Training Project Report

Submitted in the partial fulfillment of the Requirement for the award of

Baddi University of Emerging Sciences and Technologies

(Batch 2018-2020)

Submitted to: - Submitted by: -

ASHISH KUMAR

18PBA030

1
 DECLARATION

I hereby declare that the Project report titled “GSTR 2A RECONCILATION” is my

original work and has not been published or submitted for any degree, diploma or
other similar titles elsewhere. This has been undertaken for the purpose of partial
fulfillment of POST GRADUTE at BADDI UNIVERSITY OF EMERGING SCIENCES AND
TECHNOLOGIES.

ASHISH KUMAR
MBA
Banyalashish719@gmail.com

2
 PREFACE

This project report attempts to bring under one cover the entire hard work and
dedication put in by me in the completion of the project work on GSTR-2A
Reconciliation.

I have expressed my experiences in my own simple way. I hope who goes through
it will find it interesting and worth reading. All constructive feedback is cordially
invited.

3
 Index

Contents page no.

1. INTRODUCTION
2. COMPANY PROFILE
3. GST & RETURNS
4. RESEARCH METHODOLOGY
5. DATA ANALYSIS AND INTERPRETATION
6. GSTR 2A RECONCILIATION
7. CONCLUSION
8. RECOMMENDATION
9. BIBLIOGRAPHY

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1

5
 INTRODUCTION

INTRODUCTION OF GST

‘G’- Goods
‘S’- Services
‘T’- Tax
“Goods and Service Tax(GST)” is a comprehensive tax levied on manufacture, sale
and consumption of goods and service at National level.

Goods and Service Tax would be levied at each stage of sale or purchase of goods
or services based on ‘Input Tax Credit Method’.

The input tax credit paid at each stage will be available in the subsequent stage of
value addition, which makes GST essentially a tax only on value addition at each
stage.

6
It is the end consumer who will bear only the GST charged by the last dealer in the
supply chain, with set-off benefits at all the previous stages.

With the streamlining of the multiple taxes, the final cost to the consumer will be
turn out to be low because of elimination of double charging system.

The Goods and service Tax act was passed in the Parliament on ‘29th March 2017.
The Act came into effect on 1st July 2017; Goods and Service Law in India is a
comprehensive, multistage, destination-based tax that is levied on every value
addition.

In simple words, Goods and Services Tax(GST) is an indirect tax levied on the
supply of goods and services. This law has replaced many indirect tax laws that
previously existed in India. Goods and Service are divided into five tax slabs for
collection of tax- 0%,5%,12%,18% and 28%. The GST council has fitted over 1300
goods and 500 services under four tax slabs of 5%,12%,18% and 28% under GST.

Components of GST:

There are 3 taxes applicable under this system: CGST, SGST & IGST.

 CGST: Collected by the Central Government on an intra-state sale

(E.g.: transaction happening within Maharashtra)

 SGST: Collected by the State Government on an intra-state sale (E.g.:

transaction happening within Maharashtra)

 IGST: Collected by the Central Government for inter-state sale (E.g.:

Maharashtra to Tamil Nadu)
In most cases, the tax structure under the new regime will be as follows:

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Transaction New Old Regime
Regime

Sale within CGST + VAT + Central Revenue will be shared equally

the State SGST Excise/Service tax between the Centre and the State

Sale to IGST Central Sales Tax + There will only be one type of tax
another State Excise/Service Tax (central) in case of inter-state sales.
The Centre will then share the IGST
revenue based on the destination of
goods.

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COMPANY PROFILE

9
 COMPANY’s PROFILE

AYURVET LIMITED

Ayurvet Limited, where Ayur signifies life and Vet means veterinary, has been the
stalwart in utilizing the goodness of herbals for the animal healthcare. It blends and
synergizes its herbal knowledge of over one century with modern scientific and
most efficient and advance technologies, giving out most efficacious and safe
solutions. Its herbal range caters to a variety of species viz., Cattle, Poultry, Pig,
Aqua, companion animals & Equine and are proven solutions for health care
needs of above animals with customer satisfaction.

Ayurvet commenced its operations in the year 1992 with the objective of utilizing
the goodness of Ayurveda to help alleviate the problems of the animal population.
Since its inception, innovation through intensive research has remained the driving

10
force of the company as it strives to prove the effectiveness, safety and
sustainability of herbals in improving animal health and production.

Quality assurance is the key to achieve high customer satisfaction. Ayurvet’

activities stem from the firm conviction that the efficacy and quality of products is
no accident or coincidence. Instead, it can only come from a well thought-out,
planned scientific approach to the collection of herbs, standardization of
ingredients, processing of all the raw materials and scientific packaging of
formulations.

Recognizing the importance of nutrition in maintaining health, Ayurvet has also

entered the promising area of animal nutrition with the launch of a range of
value-added, herbs-enriched quality Feed products. Ayurvet is the only company
in India with a portfolio of both health-care and nutrition / feed products

Ayurvet works for a challenging and inspiring mission: “To be the leader in
providing safe, dependable and environment-friendly solutions for
animal health care”

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Origin and development of the AYURVET
Birth of ‘Dabur’ is in 1884 and birth of DABUR+AYURVET is in 1992.

IN 1996 AYURVET Start export operation and starts exports with other countries.

In 2003 Ayurvet got an individual identity and becomes ‘Ayurvet Limited. IN 2005
AYURVET set up its own manufacturing plant at Baddi, Himachal Pradesh.

In 2006 Baddi Facility certified as ISO 9001:2000 & WHO GMP compliance.

Since inception, Ayurvet has been working to promote safe and sustainable
agriculture and animal husbandry practices. To further this mission, Ayurvet
created and established a trust, “Ayurvet Research Foundation” (ARF) in 2005 to
conduct research in the areas of animal health and nutrition, diagnostics,
agriculture, horticulture and similar areas for the welfare of animals and the
community at large. The foundation has initiated a number of projects aimed at
improving the lives of small and marginal farmers.

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Basic Objectives of the Trust

To undertake or help to carry out scientific research for the extension of

knowledge in the fields of natural and applied sciences like:

Animal Health, Nutrition, Diagnostics

Discovery or invention of new tools, processes, products or raw materials
Investigation into the utilization and treatment of by-products and industrial
waste products
Cultivation and improvement of medicinal herbs
To utilize and exploit the results of scientific and industrial research and to get
patent rights in respect of discoveries, processes developed by the Trust
To develop as a certification agency in the field of Animal Health and Nutrition
To achieve the above objectives, the Foundation aims at developing strategic
partnerships with various government and private research agencies engaged in
related scientific research.

Ayurvet is one of India’s leading manufacturers of herbal veterinary medicine,

feed supplements and animal feed. All the products manufactured by the
company are based on the traditional Indian system of medicine – AYURVEDA –
that is over 5,000 years old.

Recognizing the role that Ayurveda could play in improving the health of animals
at a global level, Ayurvet entered the Exports business in 1997. Since then, the
business has grown from strength-to-strength and today Ayurvet markets its
products in more than 30 countries across 4 continents.

Ayurvet and its products enjoy strong support from various partners and
customers in different countries – thanks to the strong R&D backed, tried and
tested products, excellent customer service, solid efforts on technical promotion

13
and last but not the least, a manufacturing facility that is WHO-GMP, EU-GMP and
ISO-9001:2008 certified.

Ayurvet is strongly committed to grow its exports business in promising markets

across the globe in line with its objective of being the leading herbal animal care
company in the world.

Products made for: -

Ayurvet made products for the heath of different type of species such as

 Cattle
 Poultry
 Equines
 Porcine
 Pets
 Other Species.

CATEGORY

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  AGP Replacer
 Digestive Range
 Anti-Stress Range
 Anti-Mastitis Range
 Reproductive Range
 Skin Range
 Liver Tonic
 Anti-Diarrheal
 Performance Enhancer
 Multi Vitamin Nutrition

Products:

 Ketoroak
 Lactade
 Nbiotic
 Mastilep
 Ruchamax
 Afanil
 Exapar
 Pachoplus
 Janova
 Methiorep
 Vilocym Z
 Toxiroak
 Stresroak
 Salcochek
 Mastrip

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 Superliv
 Restobal
 Keetguard
 Mastidip

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 3
GST & RETURNS

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About GST:-

The Goods and Services Tax which is being implemented from 1st July, 2017 is
proposed to be a unified tax for the entire nation. The intended objective of GST
2017 is to replace a lot of other indirect and direct taxes like the VAT, service tax,
luxury tax etc. GST is aimed at being comprehensive with most of the goods and
services included in the GST bill but alcohol and petrol exempted. GST rate is
proposed to be 27% which is far higher than the global standard of 16.4% for similar
taxes. Our finance minister, Mr. Arun Jaitley on several occasions has mentioned
that the rate is way too high, whereas some of the states want the rate to be still
higher. In this article, we will look at the primary objectives of GST 2017 bill.

Objectives of GST:-
 Ensuring that the cascading effect of tax on tax will be eliminated.
 Improving the competitiveness of the original goods and services, thereby
improving the GDP rate too.
 Ensuring the availability of input credit across the value chain.
 Reducing the complications in tax administration and compliance.
 Making a unified law involving all the tax bases, laws and administration
procedures across the country.
 Decreasing the unhealthy competition among the states due to taxes and
revenues.
 Reducing the tax slab rates to avoid further clarification issues.

With all of these being very significant objectives of GST, it is still facing a lot of
implementation issues. Some of them are:

 Complete lack of adaptation mechanisms and trained staff.

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 In some cases, the double registration might annoy people. Also, these
registrations result in increased compliances and cost.
 Unclear estimate of the exact impact of GST.
 No clear mechanisms to control tax evasion.

BENEFITS OF GST:

 No Multiple Taxes: The GST tax benefit will start from the elimination of
a variety of direct and indirect taxes. All the current taxes will not be
applicable anymore and everything will fall under GST.

 Revenue Boost: GST allows both the central and state government to
have a dual oversight over taxes. This would result in a reduced number of
tax-exempt goods as most suppliers would pay taxes.

 Save More: The advantages of GST include the reduction of the double
payment of taxes, which will reduce the costs of goods and as a commoner
you will end up saving a lot of money overall.

 Common Market across India: GST would result in creating a common

market across India and this would reduce compliance costs. The GST
benefit sectors cover almost all the primary sectors in India.

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 Decrease in Corruption: This might result in less corruption as the power
is de-centralized and there are reduced discretionary powers with the
government officials.

 Inflation Reduction: The benefits of the GST bill is also bringing down
the inflation and the fiscal deficit due to the reduction in prices.

 Easy Tax Filing: The GST bill would make the process of registering,
documentation and paying taxes easier as the common man need not deal
with the hassle of multiple taxes.

 Increase in Employment: The overall cost of products is expected to go

down, this will result in a greater demand and in order to meet the
demand, more number of people would be employed in the industry.

 GDP lift: As mentioned in the previous point, as the demand grows so

does the Gross Domestic Product which is another GST benefit to the
consumer as well as the economy.

 Development of States: GST is a great avenue for the development of

under-developed states as the interstate laws which levy 2% currently are
completely dissolved. This would provide more opportunities for
individual states.

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HISTORY OF GST:-
History of GST has begun in India started before two decades and was
made successful in the year 2017. History of GST will help under the
benefits of Goods and Services Taxes and the advantages over other type
of taxes. History of GST given in different stages, its transformation from
other tax types, and more informative data on GST are given below:-

 GST or Goods and Services Tax came into use from July 1, 2017
replacing number of other taxes that was applied till June 30, 2018.
The discussions of GST Bill have been in process for more than two
decades and the bill was passed to implement GST from July 1,
2017 by the Prime Minister of India and his Finance Minister Arun
Jaitley. GST was launched on the midnight of July 1, 2017. The
single GST replaced several taxes and levies which included: central
excise duty, services tax, additional customs duty, surcharges,
state-level value added tax and Octroi. We follow the dual GST

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 system i.e. GST for State and Central named SGST and CGST,
respectively.

Overview on History of GST

 2006 - First announcement of GST was made by the Union Minister during
the 2006-2007 budget, that it would be introduced on April 1, 2010.

 2009 - Empowered Committee released the first Discussion Paper.

 2011 - 115th Amendment Bill was introduced and subsequently lapsed

 2014 - 122nd Amendment Bill was introduced in Lok Sabha

 August 2016 - One Hundred and First Amendment Act was enacted

 September 2016 - The first GST Council Meeting was conducted

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  March 2017 - CGST, SGST, IGST, UTGST and Compensation Cess Act was
recommended by GST Council.

 April 2017 - CGST, SGST, IGST, UTGST and Compensation Cess Act were
passed

 1 July 2017 - GST laws, Goods and Services Tax was launched all over India.

 7 July 2017 - Jammu and Kashmir state legislature passed its GST.

History of GST based on Countries

 France - The first country to implement GST in 1954 and many other European
countries introduced GST in 1970-80s.

 China - Introduced VAT in 2016 to replace the Business Tax System that was
already existing. GST is applied on selected goods.

 Japan - It introduced GST in the name of Consumption Tax in the year 1989.

 Malaysia - Introduced GST in 2015

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 Australia - GST was introduced in 2000 with the rate of 10% and with the plans
to increase it to 15%.

 Singapore - Introduced GST in the year 1994.

 Canada - GST was introduced in 1991 and has a dual model like India i.e. State
GST and Central GST.

Taxes available before the Implementation of GST:-

State Value Added Tax (VAT),

Central Excise Tax, Services Tax,

Central Sales Tax, etc

are all replaced by the single entity called GST (Goods and Services Tax).

Value Added Tax was mainly for the taxes at State level across all states in India.

Now with the introduction of GST,

VAT is replaced by State GST or SGST and the State VAT department will be
simply converted to SGST Departments.

More details on SGST are given below.

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 Similarly, Central Excise Tax that is the central tax for the goods and services are
now replaced with Central GST or CGST.

More details given under respective heading below.

GST Rates as on July 1, 2017:

As said in the Introduction, GST was implemented in the year 2017 on July 1st.
When GST was first introduced, the charges were broadly divided for State and
Central GST. When compared to the earlier taxing system, newly introduced GST
rates were higher.

When GST was first introduced it had five tax slabs and the goods and services
were spread across these tax slabs.

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This GST rates were followed till an amendment to lower the GST rates on
selected goods and services were made on 18th January 2018 at 25th GST Council
Meet. After which amendments were made on 29 Goods and 53 Services which
came to effect from 25 January 2018.

GST rates major goods till January 25, 2018 are listed below.

fresh meat, fish chicken, Eggs, Milk, butter milk, Curd, natural honey,
0%
fresh fruits and vegetables, flour, besan, bread, prasad, Salt, Bindi
GST
Sindoor, Stamps, judicial papers, printed books, Newspapers, Bangles,
Rate
handloom etc.
5% Fish fillet, Cream, skimmed milk powder, branded paneer, frozen
GST vegetables, Coffee, Tea, Spices, pizza bread, Rusk, Sabudana, Kerosene,
Rate Coal, Medicines, Stent, lifeboats
12%
Frozen meat products, Butter, Cheese, Ghee, dry fruits in packaged form,
GST
animal fat, Sausage, fruit juices, Bhutia, Namkeen, Ayurvedic medicines,
Rate

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 tooth powder, Agarbatti, colouring books, picture books, Umbrella,
sewing machine, and cellphones
Flavored refined sugar, Pasta, Cornflakes, pastries and cakes, preserved
18%
vegetables, jams, sauces, Soups, ice cream, instant food mixes, mineral
GST
water, Tissues, Envelopes, Tampons, notebooks, steel products, printed
Rate
circuits, Camera, speakers and monitors.
Chewing gum, Molasses, chocolate not containing cocoa, waffles and
wafers coated with chocolate, pan masala, aerated water, Paint,
28%
Deodorants, shaving creams, after shave, hair shampoo, Dye, Sunscreen,
GST
Wallpaper, ceramic tiles, water heater, Dishwasher, weighing machine,
Rate
washing machine, ATM, vending machines, vacuum cleaner, Shavers, hair
clippers, Automobiles, Motorcycles, aircraft for personal use, and yachts

The Revised GST Rates that was Effective From January 25,
2018:-
With the introduction of GST in July 2017, the tax rates on most on the basic
commodities also remained high.

But on the 25th GST Council Meet it was proposed to reduce the GST rates on
selected goods and services.

Based on this, GST Rates were revised on January 18, 2018 and the revised GST
rates for both Central and State Came into effect on January 25, 2018.

The rate were revised on 29 Goods and 53 Services. GST Rates were revised from
28% to 18%, 28% to 12%, 18% to 12%, 18% to 5% and few were charged NIL GST

27
and for very few products there was raise in GST Rates.

Goods taxed Vibhuti, De-oiled rice bran and parts used to manufacture hearing
at 0% aids
Reduced Old and used motor vehicles [medium and large cars and SUVs]
from 28% to with a condition that No ITC is availed, Public transport Buses that
18% run on Biofuel
Reduced
For Old and used motor vehicles [other than medium and large
from 28% to
cars and SUVs] with a condition that No ITC is availed
12%
Sugar boiled Confectionery, Drinking water, packed in 20 litres
Reduced bottles, Biodiesel, Drip irrigation system including laterals,
from 18% to sprinklers, Mechanical Sprayer, Certain listed Bio-pesticides (12 in
12% nos), Fertilizer grade Phosphoric acid, Bamboo wood building
joinery
LPG supplied to Household Domestic Consumers, Raw materials
Reduced
and Consumables needed for Launch vehicles, Satellites and
from 18% to
Payloads (Both CGST and IGST Rates), Tamarind Kernel Powder,
5%
Mehendi paste in cones
Reduced
Articles of straw, of esparto or of other plaiting materials, Velvet
from 12% to
fabric [with a condition that no refund is claimed on ITC]
5%
Reduced
from 3% to Diamonds and precious stones
0.25%
Rate
Increased - Rice bran (other than de-oiled rice bran)
0% to 5%

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Rate
Increased - Cigarette filter rods
12% to 18%

Types Of GST :-

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Since GST subsumed indirect taxes of both central government (excise duty,
service tax, custom duty, etc.) and state governments (VAT, Luxury tax, etc.), both
the governments now depend on GST for their indirect tax revenue.

Therefore, the GST rate is composed of two rates.

Intra-state transactions will carry one of CGST and one of SGST (in case of state)
or CGST and UTGST (in case of union territory).

Therefore, while making an intra-state sale (i.e., sale within the same state), the
CGST collected will go to the central government and the SGST collected will go
the respective state government in which sale is made.

Similarly, SGST or UTGST are replaced with IGST when intra-state transactions are
involved.

Hence, you can say that there are three types of GST:
 Central Goods and Services Tax

 State Goods and Services Tax

Or Union Territory Goods and Services Tax

 Integrated Goods and Services Tax

CGST :

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CGST full form is Central Goods and Services Tax.

CGST refers to the Central GST tax that is levied by the Central Government of
India on any transaction of goods and services tax taking place within a state.
It is one of the two taxes charged on every intrastate (within one state)
transaction, the other one being SGST (or UTGST for Union Territories).
CGST replaces all the existing Central taxes including Service Tax, Central Excise
Duty, CST, Customs Duty, SAD, etc.
The rate of CGST is usually equal to the SGST rate. Both taxes are charged on the
base price of the product. See the example below to understand it better.
e.g. – In the example above, when Suresh sales a product to Pradeep in the same
state (Rajasthan), he has to pay two taxes. CGST is for the central government
while SGST is for the state. The rate of CGST is 9%, same as SGST.
After the application of CGST (9% of Rs 10,000), the final cost of the product will
become Rs 11,800.
As you can probably guess, all the taxes in all the conditions above are borne by
the end consumer in the final cost, not by the manufacturer or the dealer of the
product or service.
Since GST is levied on consumption, the state where the product is originally
manufactured is not entitled to the tax collected.
If the manufacturing state levies a tax, the same will be transferred to the
consuming state through the Central government.

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SGST:-

SGST full form is State Goods and Services Tax.

SGST (State GST) is one of the two taxes levied on every intrastate (within one
state) transaction of goods and services.
The other one is CGST.
SGST is levied by the state where the goods are being sold/purchased.
It will replace all the existing state taxes including VAT, State Sales Tax,
Entertainment Tax, Luxury Tax, Entry Tax, State Cesses and Surcharges on any
kind of transaction involving goods and services.
The State Government is the sole claimer of the revenue earned under SGST. Let’s
understand this with an example.
e.g. – Suresh from Rajasthan wants to sell some goods to Pradeep in Rajasthan.
The product, originally priced at Rs 10,000, will attract GST at 18% rate comprising
of 9% CGST rate and 9% SGST rate.
The SGST tax amount here is Rs 900 (9% of Rs 10,000) which is fully claimed by
the Rajasthan State Government.
The rate of the product after SGST will be Rs 10,900.

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UTGST (or UGST):-

UTGST full form is Union Territory Goods and Services Tax.

The Union Territory Goods and Services Tax, commonly referred to as UTGST, is
the GST applicable on the goods and services supply that takes place in any of the
five Union Territories of India, including Andaman and Nicobar Islands, Dadra and
Nagar Haveli, Chandigarh, Lakshadweep and Daman and Diu.

This UTGST will be charged in addition to the Central GST (CGST) explained above.
For any transaction of goods/services within a Union Territory: CGST + UTGST

The reason why a separate GST was implemented for the Union Territories is that
the common State GST (SGST) cannot be applied in a Union Territory without
legislature.
Delhi and Puducherry UTs already have their own legislatures, so SGST is
applicable to them.

33
IGST:-

IGST full form is Integrated Goods and Services Tax.

Integrated GST (IGST) is applicable on interstate (between two states)

transactions of goods and services, as well as on imports.
This tax will be collected by the Central government and will further be
distributed among the respective states.
IGST is charged when a product or service is moved from one state to another.
IGST is in place to ensure that a state has to deal only with the Union government
and not with every state separately to settle the interstate tax amounts. Let’s try
to understand IGST with an example.
e.g., – Ramesh is a manufacturer in Rajasthan who sold goods worth Rs 10,000 to
Suresh in Rajasthan.
Since it is an interstate transaction, IGST will be applicable here. Let’s assume the
GST rate is 18% for the particular item.
So, the IGST amount charged by the Central Government will be Rs 1800 (18% of
Rs 10,000), and the refined rate of the product will be Rs 11,800.
Now, GST is a consumption tax that means only the state where the goods are
actually consumed will get the tax benefits, irrespective of the manufacturing
state.

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Difference between Different Types of GST Taxes

Types of
CGST SGST IGST UGST/UTGST
Differences

Inter-state
Applicable Intrastate
Intrastate (between two
transactions (Within Within one Union
(Within states or one
(Goods & one Territory (UT)
one state) state and one UT)
Services) state)
and imports

Central
Collected by State Govt. Central Govt. UT Govt.
Govt.

Benefitting Central Central Govt. &

State Govt. UT Govt.
Authority Govt. State Govt.

IGST
Tax Credit CGST SGST UTGST
CGST
Use Priority IGST IGST IGST
SGST

35
Similar to every other type of tax, GST also has provisions to give the benefits of
tax credits.
The credits will be applicable to the subsequent taxes on the same product or
service.
All three IGST, SGST and CGST credits are usable against each other.
Any IGST credit will be first used to deal with IGST tax, then CGST, and then to set
off SGST.

Documents required for Goods and Services Tax

(GST) registration

Goods and Services Tax ("GST") is the indirect tax levied in India and subsumes
different taxes such as service tax, excise duty, VAT, entry tax and customs duty,
into a single tax system. GST was introduced to reduce complexities and
compliances of doing business for millions of small businesses in India.

Registration of any business entity under the GST Law implies obtaining a unique
number from the concerned tax authorities for the purpose of collecting tax on
behalf of the government and to avail Input Tax Credit for the taxes on his inward
supplies.

The following documents must be submitted by persons or entities applying for

GST registration.

PAN Card of the Business and Applicant

GST registration requires the PAN (Permanent Account Number) of the business

36
and authorized signatories/applicant (Directors / Partners / Proprietor).

Valid Indian Phone Number and Email address

A valid mobile number and an email address of the Primary Authorized Signatory
is required to be filled at the time of GST registration.

Proof of Place of business

Principal Place of Business is the primary location within the State where a
taxpayer's business is performed where the business's books of accounts and
records are kept.

As a supporting document, keep following documents handy:

Any document in support of the ownership of the premises such as Latest

Property Tax Receipt or Municipal Khata copy or copy of Electricity Bill.

Copy of the valid Rent / Lease Agreement/Consent letter (as applicable)

For every additional place of business in the state, proof of such additional place
of business.

Valid bank account number from India

You need to mention details of the bank accounts maintained for conducting
business. You can enter details of upto 10 Bank Accounts. You will also need to fill
the Indian Financial System Code (IFSC) number of the same bank and branch.

Other details

- List of Goods and Services

37
- Proof of appointment of Authorized Signatory (Letter of Authorization or copy of
board resolution)

- Authorized Signatories photo (soft copy)

- For Companies and LLP’s, it is important to have digital signature (class 2 digital
signature) of the person who is authorized to sign the GST application

- Incorporation certificate (for Company)

- Other regulatory registration details such as Professional Tax, State Excise

License details (If applicable).

GST RETURN:-
GST return is the detail of all the sales and purchases made along with tax
collected or paid.

GST return filing is generally done either on quarterly or an annual basis.

A taxpayer (under general circumstances) has to furnish 3 monthly and one

annual return.

Taxpayers registered as Input Service Distributor, under the composition scheme,

or liable to collect or deduct tax will fall under separate return filing. This may
vary in the amount of tax applicable to these merchants.

Authorities calculate tax liability based on the filed returns.

A registered dealer has to file a return when they purchase or sell some products,
input tax credit against GST paid on purchases, or provide output GST on sales.

38
The GST rate varies between these scenarios.

The steps to file GST return online are relatively simple. There is a dedicated
portal that allows online GST return filing with GSTIN.

The trader will also require the Goods and Service Tax compliant invoices to back
the data.

The automated system stores all the information of registered sellers and buyers
which eliminates the need of separate tax calculations every time.

It also keeps a record of one's liabilities and credit to allow utilizing a certain
amount of credit which is already available.

Types of GST Returns and Their Due Dates

Every person who is registered under GST has to file monthly/quarterly and annual
GST return. So we discussed about the types of GST and their Due Dates given
below: -

Types of GST Returns

o GSTR 1 Due Date
o GSTR 2A Due Date
o GSTR 3B Due Date
o GSTR 4 Due Date
o GSTR 5 Due Date
o GSTR 6 Due Date
o GSTR 7 Due Date
o GSTR 8 Due Date

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 o GSTR 9 Due Date
o GSTR 9A Due Date
o GSTR 9B Due Date
o GSTR 9C Due Date
o GSTR 10 Due Date
o GSTR 11 Due Date

and Due Dates are

GSTR-1 – Due on 11th of the subsequent month

GSTR-1 is a type of monthly GST Return whose due dates falls on 11th of every
subsequent month. In GSTR-1 Form the taxpayer has to mention the details of
outward supplies such as invoice details, debit notes/credit notes and so forth.

GSTR-2A Return – Due on 20th of the subsequent month

GSTR-2A is a GST return that gets auto-populated when the seller files his
monthly GST Return.
However, the taxpayer can amend GSTR-2A at the time of filling it on the GST
Portal.

Here are some of the return through which GSTR-2A auto-populates:

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 GST Return Furnished by

GSTR 1 Regular registered seller

GSTR 5 Non-resident

GSTR 6 ISD

GSTR 7 TDS Deductor

GSTR 8 E-commerce Operator

GSTR-3B Return – Due on 20th of Subsequent Month

GSTR-3B is a GST Return that has to be filed monthly by all the regular
taxpayers on the GST Portal.

The taxpayer has to file this GST return on or before 20th of the subsequent
month.

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 Howsoever, a taxpayer may go through a certain inconvenience that at the time
of filing GST Return.

They are:

1. The value cannot be copy pasted.

2. Higher chances of error as it needs manual intervention.

3. Once you submit the return GST liability is calculated.

GSTR-4 – Due on 18th of Subsequent month

GSTR 4 is a quarterly return that has to be filed by every composition scheme

holder.

The due date for filing GSTR-4 is 18th of the subsequent month.

Here is the due date for filing the GSTR-4:

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 Return Period Due-Date

April-June 18th July

July-Sept 18th Oct

Oct-Dec 18th Jan

Jan-Mar 18th Apr

GSTR-5 – Due on either on 20th of the subsequent month or after 7 days from
the expiry of the registration

GSTR-5 is a type of GST Return that has to be furnished by the non-resident

taxable person who is registered under GST.

Further GSTR-5 shall be paid every month on or before 20th of the

subsequent month or within 7 days once the validity period of registration
expires.

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 The non-resident taxable person can file GSTR-5 either via online or through
facilitation centre.

GSTR-6 Return – Due on 13th of the subsequent month

GSTR-6 is a type of GST Return that has to be filed by every Input Service
Distributor.

The due date of filing GSTR-6 is on or before the 13th of the subsequent month.

The GSTR 6 forms contain 11 section that consists of the details regarding ITC
received and the manner in which the credit has to be distributed.

This has to be noted that GSTR-6 shall be filed even if there is a nil return.

GSTR-7 – Due on 10th of the subsequent month

GSTR-7 is a GST return that shall be furnished by every person who is deducting
TDS under GST.

GSTR-7 Form consist of the following details:

1. Paid or payable TDS

2. Any refund against TDS claimed

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 However, it shall be noted that the provisions of TDS under GST have been put
on hold as per the 22nd GST Council meeting.

GSTR-8 – Due on 10th of the subsequent month

GSTR-8 is a type of GST Return that shall be filed by the e-commerce operator
every month who is required deduct TCS under GST. The due-date of GSTR-8 is
10th of every subsequent month.

GSTR-8 Form consists of the following details:

1. Outward supplies of good or/and services

2. Supplies returned and the amount collected on such returned supplies

Moreover, the notified rate for TCS is 1% that is applicable to both interstate
and intra-state supplies.
Annual GST Return – the Last date of filing GSTR-9 this year is 30th June
There are different types of GST Annual Return, and they are:

GSTR-9

GSTR-9 shall be filed by every regular taxable person who is filing GSTR-1 and
GSTR-3B under GST. The due date for filing this return is 31st December of
every calendar year.
GSTR-9A

GSTR-9A has to be filed by every registered composition holder under GST. The
due date for filing GSTR-9A is 31st December of every calendar year.

GSTR-9B

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GSTR-9B is a type of annual GST Return that has to be filed by every e-
commerce operator deducting TCS. It shall be filed on or before 31st December
of every calendar year.

GSTR-9C

GSTR-9C is a type of an annual GST Return that has to be furnished by every

registered taxpayer whose aggregate turnover exceeds 2 crore rupees during a
financial year. At the time of filing GSTR-9C, they need to provide a copy of the
audited annual accounts and a reconciliation statement duly certified by a
professional.

GSTR-10 – Final GST Return

GSTR-10 is a final GST Return that has to be filed by a taxpayer whose GST
registration is either cancelled or surrendered. GSTR-10 shall be filed by the
taxpayer within 3 months from the date of cancellation or cancellation order
date whichever is later.

GSTR-11 – GST Return for UIN Holder

GSTR-11 is a type of GST Return that shall be filed by a taxpayer holding a

Unique Identity Number (UIN) so as to claim a refund on the taxes paid on the
purchases. The due date for filing GSTR-11 is 28th of the following month in
which the UIN holder has purchased the goods or/and services.

GSTR 2A RECONCILIATION:

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Meaning & Purpose:

In accounting, reconciliation is the process of ensuring that two sets of records

(usually the balances of two accounts) are in agreement. Reconciliation is used to
ensure that the money leaving an account matches the actual money spent. This is
done by making sure the balances match at the end of a particular accounting
period.

Reconciliation under Goods & Services Tax (GST) is about matching the data filed
by the supplier with those of the recipients and recording all the transactions that
have taken place during that period. The reconciliation process ensures that no
sales or purchases are omitted or wrongly reported in the GST returns.

The taxpayers must reconcile their data on a regular basis with that of the vendors
to claim eligible Input Tax Credit (ITC). The process of reconciliation is simple, but
can be time-consuming, as the taxpayers are required to continuously keep an eye
on any discrepancy or mismatches that may affect the ITC claim.

GSTR 2A is a purchase-related tax return that is automatically generated for each

business by the GST portal.

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When a seller files his GSTR-1, the information is captured in GSTR 2A

It takes information of goods and/or services which have been purchased in a

given month from the seller’s GSTR-1.

You are required to verify (and amend) this return before filing in on GST Portal.

GSTR 2A will be auto-populated from the following returns of the

sellers/counterparty-

Return Filed by

GSTR 1 Regular registered seller

GSTR-5 Non-resident

GSTR 6 Input Service Distributor

GSTR 7 Person liable to deduct TDS

GSTR 8 Ecommerce

GSTR-2A is a system that generates ‘draft’ Statement of purchase related tax

return for a Receiver Taxpayer. When a seller files his GSTR-1, the information is
captured in GSTR-2A.

It takes information on goods and/or services which have been purchased in a

given month from the seller’s GSTR-1.

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Difference b/w GSTR-2 and GSTR-2A

GSTR 2 GSTR-2A

It is an official return where you need to

It is a read-only document which
file. Also, it will have the same information
is for informational purpose only
as GSTR-2A.

GSTR-2 can be edited but this return is GSTR-2A cannot be edited as it is

temporarily suspended a read-only document

GSTR-2A due date and filing

There is no due date for GSTR-2A and as it is a read-only document you need not
have to file GSTR-2A. The data in GSTR-2A is taken from GSTR-1 of the seller.

GSTR 2A Reconciliation

GSTR 3B is a summary return. So, the amount of Input Tax Credit available as
disclosed in Table 4(a) should match with the tax details disclosed in Form GSTR-
2A.

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It is very important to reconcile Form GSTR-3B and Form GSTR-2A on account of
the following reasons:

A large number of taxpayers have received notices from the GST authorities asking
them to reconcile the ITC claimed in a self-declared return GSTR-3B and system
generated Form GSTR-2A. Taxpayers have to reply to such notices else have to pay
the differential amount.

Actions have been taken against the evaders claiming ITC on basis of fake invoices.

Reconciliation ensures that credit is being claimed only in respect of the tax which
has been actually paid to the supplier.

It ensures that no invoices have been missed/ recorded more than once.

In case the supplier has not recorded the outward supplies in Form GSTR-1,
communication can be sent out to the supplier to ensure that the discrepancies are
corrected.

Errors committed while reporting details in GSTR-1 by suppliers or GSTR-3B by

recipients can be corrected.

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 4
RESEARCH
METHODOLOGY

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Research methodology

The procedure adopted for conducting the research requires a lot of attention as it
has direct bearing on accuracy, reliability and adequacy of results obtained. It is due
to this reason that research methodology, which we used at the time of conducting
the research, needs to be elaborated upon. It may be understood as a science of
studying how research is done scientifically. So, the research methodology not only
talks about the research methods but also considers the logic behind the method
used in the context of the research study. Research Methodology is a way to
systematically study and solve the research problems. If a researcher wants to
claim his study as a good study, he must clearly state the methodology adapted in
conducting the research the research so that it way be judged by the reader
whether the methodology of work done is sound or not.

The Research Methodology here includes:-

 Objective of study

 Importance of study

 Research Problem.

 Research Design.

 Data Collection method.

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  Analysis and interpretation of Data

 Limitation of study

Objective of the study:

 To Analysis the Procedure of GSTR reconciliation.

➢ To know about the GST.

➢ To analysis the Method and procedure of GST return file.

IMPORTANCE OF THE STUDY

 First and foremost, importance of GST Reconciliation is to claim 100%

accurate ITC. We can claim accurate ITC by sorting out all the
discrepancy between our purchase register and GSTR 2A.

 GST Reconciliation helps in avoiding duplicity at the time of filing

Annual GST Return. However, to do this we need to reconcile all our
monthly or quarterly GST Returns .

 GST reconciliation helps in raising issues with invoices generated by your

supplier, so to make necessary amendments to furnish errorless GST
Return.

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 Research Problem

The first step while conducting research is careful definition of Research Problem.
“To ERR IS THE HUMAN” is a proverb which indicates that no one is perfect in this
world. Every researcher has to face many problems which conducting any
research that’s why problem statement is defined to know which type of
problems a researcher has to face while conducting any

study. It is said that,

“Problem well defined is problem half solved.”

Basically, a problem statement refers to some difficulty, which researcher

experiences in the context of either a theoretical or practical situation and
wants to obtain the solution for the same.

The problem statement here is:

“TO MAKE GSTR 2A RECONCILIATION REPORT”

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Research Design

A research designs is the arrangement of conditions for collection and analysis

data in a manner that aims to combine relevance to the research purpose with
economy in procedure. Research Design is the conceptual structure with in which
research in conducted. It constitutes the blueprint for the collection
measurement and analysis of data. Research Design includes and outline of what
the researcher will do form writing the hypothesis and it operational implication
to the final analysis of data. A research design is a framework for the study and is
used as guide in collection and analyzing the data. It is a strategy specifying which
approach will be used for gathering and analyzing the data. It also include the
time and cost budget since most studies are done under these two cost budget
since most studies are done under theses tow constraints. The design is such
studies must be rigid and not flexible and most focus attention on the following:-

 What is the study about?

 Why is the study being made?
 Where will the study be carried out?
 What type of data is required?
 Where can be required data be found?

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  What period of time will the study include?
 What will be sample design?
 What techniques of data collection will be used?
 How will the data be analyzed?
 In what style will the report be prepared?

TYPES OF RESEARCH DESIGN :

 EXPERIMENTAL RESEARCH DESIGN

 EXPLORATORY RESEARCH DESIGN

 DESCRIPTIVE& DIAGNOSTIC RESEARCH

Exploratory Research Design: This research design is preferred when researcher

has a vague idea about the problem the researcher has to explore the subject.

Experimental Research Design – The research design is used to provide a strong

basis for the existence of casual relationship between two or more variables.

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Descriptive Research Design – It seeks to determine the answers to who, what,
where, when and how questions. It is based on some previous understanding of
the matter.

Diagnostic Research Design It determines the frequency with which something

occurs or its association with something else.

RESEARCH DESIGN USED IN THE STUDY:

Data Collection Method

PRIMARY DATA -

It is first hand data, which is collected by researcher itself. Primary data is

collected by various approaches so as to get a precise, accurate, realistic and
relevant data. The main tool in gathering primary data was investigation and
observation. It was achieved by a direct approach and observation from the
officials of the company.

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SECONDARY DATA - it is the data which is already collected by someone else.
Researcher has to analyze the data and interprets the results. It has always been
important for the completion of any report. It provides reliable, suitable,
adequate and specific knowledge.

Methods of data analysis

The data collected were edited, classified and tabulated for analysis. The
analytical tools used in this study are:

TOOLS APPLIED:

The study reconciliation the following analytical tools were used:

1. Comparative statement.

2. Pivot Table.

3. VLOOKUP

 Limitations of study

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 Difficulty in data collection.

 Limited knowledge about the reconciliation in the initial

stages.

 Company manager was reluctant for giving financial data of

the company.

 The analysis and interpretation are based on secondary data

contained in the published reports of company for the study
period.

 It is difficult to find out the match between 2A and ITC if

vendor pay GST from wrong GST number and also if vendor
pay GST from the another bill. Number which is not
considering in the ITC.

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 DATA ANALYSIS
& INTERPRETATION

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 1.Comparative statement :-

Comparison between GSTR – 2A and GSTR – 3B

Form GSTR – 3B is a monthly summary return filed by the taxpayer by the 20th of
the next month. Taxpayers are allowed to take the input tax credit (ITC) based on
the details declared by the taxpayer in below Table 1 of Form GSTR – 3B:

Table 1: Eligible ITC

Details Integrated tax Central tax State/ UT tax Cess

A) ITC available

B) ITC reversed

C) Net ITC available [A-B]

D) INELIGIBLE ITC

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GSTR – 2A is an auto-populated form generated in the recipient’s login, covering
all the outward supplies (Form GSTR – 1) declared by his suppliers.

Table 2: Table of the data GSTR-2A

Matching GSTR – 3B and GSTR – 2A:

When the supplier files GSTR – 1 in any particular month disclosing his sales, the
corresponding details are captured in GSTR – 2A of the recipient.

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 While the filing of Form GSTR – 2 has been kept in abeyance, it is still important
under the GST framework for the taxpayers to reconcile the ITC claimed in Form
GSTR – 3B and Form GSTR – 2A.

GSTR – 3B is a summary return. Hence, the amount of ITC available as disclosed and must
match with tax details disclosed in Form GSTR – 2A.
Table 3: Comparison of ITC with GSTR-2A

It is important to reconcile Form GSTR – 3B and Form GSTR – 2A on account of the

following reasons:

 GST authorities have issued notices to a large number of taxpayers asking

them to reconcile the ITC claimed in a self-declared summary return Form
GSTR – 3B and auto-generated Form GSTR – 2A. Such notices are issued

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 in Form GST ASMT – 10. The taxpayer would be required to reply to such
notices or pay the differential amount.

 Action has also been taken against evaders claiming ITC on basis of fake
invoices.

 Reconciliation ensures that credit is being claimed only in respect of the

tax which has been actually paid to the supplier.

 Ensures that no invoices have been missed/ recorded more than once
etc.

 In case the supplier has not recorded the outward supplies in Form GSTR
– 1, communication can be sent out to the supplier to ensure that the
discrepancies are corrected.
 Errors committed while reporting details in GSTR-1 by suppliers or GSTR-
3B by recipients can be rectified.

Reasons for non-reconciliation of GSTR – 2A and GSTR – 3B:

The details disclosed in Form GSTR – 2A and Form GSTR – 3B may not reconcile on
account of the following reasons:

 Credit of IGST claimed on the import of goods

 Credit of IGST on the import of services
 Credit of GST paid on reverse charge mechanism etc.
 Transitional credit claimed in TRAN – I and TRAN – II.
 ITC for goods and services received in FY 2017 – 18 but availed in FY 2018 –
19.

In the cases mentioned above, the figures will not reconcile as no corresponding
Form GSTR – 1 is being filed by the supplier or the ITC is being claimed at a later
date.
Discrepancies in GSTR – 2A and GSTR – 3B:

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After considering the situations mentioned above, if any discrepancies are found in
Form GSTR – 1 and GSTR -3B leading to any excess ITC claimed by the recipient,
the same must be paid by the taxpayer along with interest.
It is, therefore, necessary that this reconcile exercise is done on a regular basis to
ensure that only Bonafede input tax credit is claimed.
Reconciliation at the time of filing of Annual return:
Even at the time of filing an Annual return in Form GSTR – 9, reconciliation of ITC
as per GSTR – 3B and GSTR – 2A is required to be done.

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2.PIVOT TABLE :-
PIVOT OF THE DATA TABLE

INTERPRETATION:

From the above diagram. It shows that the data of working sheet is selected and
copied.

 Then after selecting data go to insert menu.

 Then click on pivot table option.
 Then select range for pivot table.
 Pivot table helps in to merge the bills of similar GSTIN number or the same
party name.
 It shows the total amount of all the bills of similar GSTIN number.

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3.VLOOKUP:-

VLOOKUP is used in searching for the data we needed to be based on one value.

Table: VLOOKUP applied on 2A to find match with ITC

Interpretation:
1. In the above diagram shows that how to use VLOOKUP apply on the data.
2. VLOOKUP helps in to find the similar data and similar value of the two
sheets.
3. It shows the first match of the value.

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4. Sometimes there is error in the VLOOKUP Table. Because if one value of the
sheet doesn’t match with the another sheet value.
5. With the help of VLOOKUP we find and compare the similar GSTIN no. of
the 2A with ITC.

GSTR-2A
RECONCILIATION

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 Table : Reconciliation Statement

Interpretation:-
 In above table shows that the Reconciliation statement.
 It is the final step of the reconciliation. In which we reconcile the data of 2A
with ITC.

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 In which we find out the difference b/w 2A and ITC and assumed
reconciliation items.
 The reconciliation item shows that clearly the amount of the difference. And
also helps in to give the clear statement of the reconciliation.

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 7
CONCLUSION

71
 Conclusion :-

This study covers the overall overview about GST and Reconciliation of
GSTR 2A, and return files of GST to Government.

So the GST is the one tax for all nation is implied in India 1st July 2017. So to
pay GST by taxpayer on the goods and services and also return the file of GST paid
to the government .So the consumer can take benefit of that when they pay GST
on the goods and services.

So it is all included in GST Return file. In which compare the ITC With GSTR
2A which is filled by the vendor and submitted to government. So in which we
can find out the detailed of the tax rate and about the transactions of the goods .

We can also find out mismatch and fraud detailed filled by the vendor.

So reconciliation of GST is the art which must be done by step by step to

compare the data and reconciliate data correctly.

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 8
Recommendations

73
With the implementation of GST, India took a step towards unified common
national market. It aims to bring in increased efficiency and compliance and also
boost government’s ‘ease of doing business’ initiative. However, being a new,
evolving law, there are certain improvements required. Few areas that need
consideration are as given below:

 Processes must be reduced so that business can operate efficiently in the

best interest of the people and for economic growth. Filing of 37 returns per
GSTIN could be a very time consuming exercise, wherein everyone would not
even have the bandwidth to comply with.

 Technological glitches of the GST network should be sorted out on a war

footing basis.

 The matching concept of input credits requires large volume of data of the
supplier to be matched with that of the receiver. This process should be
simplified, wherein only broad main criteria may require matching like the
invoice value and the tax amount and matching of specific, precise wide
variety of data should not be required like invoice number and date.

 Valuation Rules lack clarity and are debatable. This is likely to lead to
litigation and transfer pricing issues / litigation. These rules need to be
rationalized, simplified and be fair to one and all.

 In case IGST is paid instead of CGST and SGST, and vice-versa, the recourse
available is only refund. Assessees should be allowed to self-adjust in such
cases.

 In respect of capital goods received on or after 01.07.2017 (Capital goods in

transit), transitional credit of tax paid in earlier regime should also be

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 available. Transitional input credit should also be available on goods or
services are delivered or received before the appointed date and the
assessee received the invoices after appointed day.

 Exempt supplies should be excluded from the term Aggregate Turnover

(‘AT’) for the purposes of determination of registration requirements.

 Anti-profiteering provisions need reconsideration as these may

unnecessarily cause hardships to businesses. System should be made to
ensure that this is not misused so as to cause difficulties

 Single cash ledger concept should be used instead multiple cash ledgers i.e.
separate cash ledger for CGST, SGST, IGST, interest, penalty etc. Further it is
suggested to allow partial / period payment of offset of tax so that an
assessee can bear interest only on the short payment.

 Reverse charge payable by registered dealers in case of purchase from

unregistered dealers (Section 9(4)) should be completely withdrawn, instead
of keeping it in abeyance till 31.03.2018.

 The issues being faced by the exporters should be dealt with and the refund
procedure should be activated immediately.

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 9
BIBLIOGRAPHY
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Websites :-

www.ayurvet.com

www.gst.gov.in

www.gstindia.com

www.wallstreetmojo.com

https://en.wikipedia.org

www.gstn.org

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