To,

The Course Director/ Asst. Course Director

Commercial Tax Training Institute, Gomti Nagar, Lucknow.

Respected Ma’am,
Subject – Report on field training from 07-12-2021 to 07-01-2022.

In reference to the program issued for practical training for the 2018 batch Assistant
Commissioner / Commercial Tax Officers & promoted Commercial tax officers from
07-12-2021 to 07-02-2022 by order number-1144 dated 06-12-2021. In the Office of
Additional Commissioner Grade-1, Lucknow Zone 2, for the said period, I namely, Amit
Pandey, has been directed to undergo field training. Training was receive by the me as a
Commercial Tax Officer from 07-12-2021 to 07-01-2022 on the subjects outlined in the
order. In compliance with the instructions by Commercial Tax Training Institute Lucknow,
kindly find a brief report as under,

!. REGISTRATION (07/12/2021 - 14/12/2021)-

In any tax system registration is the most fundamental requirement for identification of tax
payers ensuring tax compliance in the economy. 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. Without registration, a person can neither collect tax from his
customers nor claim any input tax credit of tax paid by him.

Sections related to registration,

!. Section22: Who can apply for registration
#. Section23: Persons not liable for registration
$. Section 24: Compulsory registrations cases
%. Section 25: Procedure for registration
&. Section 26:Deemed registration
'. Section 27:Special provisions related with CTP and NRTP
(. Section 28: Amendment of registration
). Section 29: Cancellation
*. Section 30: Revocation of cancellation of registration

Some Key points-

● Every trader/seller of goods and services has to register under GST portal as mandated
by CGST/SGST/UTGST Act 2017 and submit online FORM GST REG-01 on the
common portal, either directly or through a Facilitation Centre notified by the
Commissioner.
● An acknowledgement shall be issued electronically to the applicant in FORM GST
REG-02, on receipt of an application.
● All the documents are to be verified by the mandated officer and on proper submission
of forms has to approve the registrant within three working days.
● If any document is found to be deficient the mandated officer may issue a notice to the
 ●
applicant electronically in FORM GST REG-03 within a period of three working days
from the date of submission of the application and the applicant shall furnish such
clarification, information or documents electronically, in FORM GST REG-04, within a
period of seven working days from the date of the receipt of such notice.
● However if further the documents are wanting the mandated officer can reject the
application, within reasons to be recorded in writing, and inform the applicant
electronically in FORM GST REG- 05.
● As when the officer is satisfied can issue a certificate of registration in FORM GST
REG-06 showing the principal place of business and additional place or places of
business shall be made available to the applicant on the common portal and a Goods and
Services Tax Identification Number shall be assigned.

Documents required for registration:

● PAN card
● Aadhar card
● cancelled cheque/bank details
● rent agreement/NOC/electricity bill
● Recent invoice

Amendment of Registration- Except for the changes in some core information in the
registration application, a taxable person shall be able to make amendments without requiring
any specific approval from the tax authority. In case the change is for legal name of the
business, or the State of place of business or additional place of business, the taxable person
will apply for amendment within 15 days of the event necessitating the change. The proper
officer, then, will approve the amendment within next 15 days. For other changes like name
of day to day functionaries, e-mail Ids, Mobile numbers etc. no approval of the proper officer
is required, and the amendment can be affected by the taxable person on his own on the
common portal.

Cancellation of Registration- The GST Rule provides for two scenarios where cancellation
Registration under GST Rule 8 of registration can take place; the one when the taxable
person no more requires it (voluntary cancellation), and another when the proper officer
considers the registration liable for cancellation in view of certain specified defaults (Suo
moto cancellation) like when the registrant is not doing business from the registered place of
business or if he issues tax invoice without making the supply of goods or services. The
taxable person desirous of cancellation of Registration will apply on the common portal
within 30 days of event warranting cancellation. He will also declare in the application the
stock held on the date with effect from which he seeks cancellation. He will also work out
and declare the quantum of dues of payments and credit reversal, and the particulars of
payments made towards discharge of such liabilities. In case of voluntary registration (taken
despite not being liable for obtaining registration), no cancellation is allowed until expiry of
one year from the effective date of registration. If satisfied, the proper officer has to cancel
the registration within 30 days from the date of application or the date of reply to notice (if
issued, when rejection is concluded by the officer).

Revocation of Cancellation- In case where registration is cancelled suo moto by the proper
officer, the taxable person can apply within 30 days of service of cancellation order,
requesting the officer for revoking the cancellation ordered by him. However, before so
applying, the person has to make good the defaults (by filing all pending returns, making
payment of all dues and so) for which the registration was cancelled by the officer. 9 If
satisfied, the proper officer will revoke the cancellation earlier ordered by him. However, if
the officer concludes to reject the request for revocation of cancellation, he will first observe
the principle of natural justice by way of issuing notice to the person and hearing him on the
issue.

Physical verification in connection with registration-Physical verification is to be resorted

to only where it is found necessary in the subjective satisfaction of the commercial tax
officer. If at all, it is felt necessary, it will be undertaken only after granting the registration
and the verification report along with the supporting documents and photographs shall have
to be uploaded on the common portal within fifteen working days.

#. RETURNS & SCRUTINY (15/12/2021 - 24/12/2021)-

The GST return is a document that contains important details pertaining to the sales,
income, expense, and purchase that a taxpayer must file with the tax administrative
authorities. The provided details are used by the tax authorities to calculate the net tax
liability of the taxpayer. When filing a GST return, a registered dealer has to file the
purchases, output GST, sales, and input tax credit. Types of returns,

● GSTR-1 Monthly Statement of Outward supplies of Goods or Services

● GSTR-2 Monthly Statement of Inward supplies of Goods or Services Registered
● GSTR-3 Monthly Return for a normal taxpayer Registered Person
● GSTR-4 Quarterly Return Taxable Person opting for Composition Levy
● GSTR-5 Monthly Return for a non-resident taxpayer
● GSTR-6 Monthly Return for an Input Service Distributor (ISD)
● GSTR-7 Monthly Return for authorities deducting tax at source
● GSTR-8 Monthly Statement for E-Commerce Operator
● GSTR-9 Annual Return Registered Person other than an ISD, TDS/TCS Taxpayer,
Casual Taxable Person and Non-resident Taxpayer
● GSTR-10 Final Return

Scrutiny
A GST officer will thoroughly check the GST return of a particular taxpayer based on
certain risk parameters, to verify its correctness. If he finds any errors, he will issue a scrutiny
notice to the registered taxpayer demanding an explanation

PARAMETER OF SCRUTINY
● In-eligible ITC claimed from non-genuine taxpayers (NGTPs) whose RC is cancelled
abinitio
● Excess outward tax in GSTR-1 compared to GSTR-9/GSTR-3B
● Excess Outward tax in E-Way Bills Compared to GSTR-3B
● In-eligible ITC claimed from GSTR-3B Non-filers
● Excess ITC claimed in GSTR-9/3B which is not confirmed in GSTR-2A or 8A of
GSTR-9
● In-eligible ITC claimed from RC is cancelled suppliers
● Less turnover is shown in GSTR-1 compared to GSTR-8 (TCS)
● Less turnover is shown in GSTR-3B compared to GSTR-7 (TDS)
 ● Less RCM liability disclosed in GSTR 9/3B/4 than shown by suppliers in GSTR-1
● ITC claims after the last date of availing of ITC as per section 16(4) GSTR-3B
● ITC on purchase invoices uploaded by the supplier in GSTR-1 filed after the last data of
availing -section 16(4)
● Interest on delayed payments made with GSTR 3B
● Excess IGST on imports shown in GSTR_6E vs. ICEGATE data
● Excess ISD ITC availed in GSTR9_6G Vs GSTR 2A ISD
● Excess RCM ITC GSTR9_6CDF than liability shown in GSTR 9_46

$. REFUNDS & RECOVERY (25/12/2021 - 31/12/2021)-

Refund : chapter xi ( section : 54, 55, 56, 57, 58)

Timely refund mechanism is essential in tax administration, as it facilitates trade through the
release of blocked funds for working capital, expansion and modernisation of existing
business. The provisions pertaining to refund contained in the GST law aim to streamline and
standardise the refund procedures under GST regime. Thus, under the GST regime, there will
be a standardised form for making any claim for refunds. The claim and sanctioning
procedure will be completely online and time bound, which is a marked departure from the
existing time consuming and cumbersome procedure.

Demands and Recovery : chapter xv ( section 73 - 84)

Tax administration occasionally comes across situations where the tax dues are not paid
correctly by the tax payers, most of the times inadvertently and sometimes deliberately. To
minimise the inadvertent short payment of taxes, the concept of ‘Matching’ details of
‘Outward supplies’ of supplier with the details of ‘Inward supplies’ of recipient has been
introduced in the GST Act. Moreover, the self-assessed tax has to be paid by the due date
prescribed under the GST Act and in case of any failure to pay the same by the due date, the
Input Tax Credit will not be available to customers and also the tax payer will not be able to
file any return for further period. Effectually these provisions work as a self-policing system
and take care of any mis-match in the payment of taxes. However, despite these provisions,
there may arise some instances where the tax was not paid correctly. To deal with such
situations, the provisions for recovery are incorporated in any tax law. Accordingly, the GST
Act contains elaborate provisions for the recovery of tax under various situations, which can
be broadly classified into the following two categories:
(i) Tax short paid or erroneously refunded or Input Tax Credit wrongly availed;
(ii) Non-payment of self-assessed tax or amount collected as representing the Tax. Things to
keep in mind when proceeding with return & recovery :

Refund is of excess amount paid. So what is the situation of excess amount?

!. Export outside India. It will be verified through export invoice, bank realisation
certificate, custom certificate, bill of lading, brc, undertaking.
#. Inverted tax structure
$. By mistake excess tax has been paid.
%. Excess interest paid or penalty paid. ( Penalty has been submitted by mobile
squad and later appellate authority has left it then it's case of refund. Similarly if sib has
submitted some fee)

What are the various types of forms-

RFD 01 : application
RFD 02 : acknowledgement
RFD 03 : deficiency memo
RFD 04 : sanction
RFD 05 : payment advice
RFD 06 : rejection

!. If RFD 02 has issued then acknowledged should be within 15 days and disposal in 60
days ( from application date).
#. After acknowledging a application, can not reject application. Amount can be rejected
but not application.
$. If RFD 02 has issued then RFD 03 can not be issued.
%. After issuing RFD 03, a new application should be given.
&. RFD 08 is SCN ( show cause notice). If RFD 02 has issued and there is some incomplete
paper or query then RFD 08 would be issued.
'. In RFD 06, there is possibility of partially rejection and partially acceptance of amount.
(. After RFD 04, 90 percent of amount would be sanctioned. Rest would be sanctioned
later. This is for export case ( If refund amount is 1 lakh then only 90 thousand would be
sanction at starting. For rest of amount, scrutiny would be done and see if any adverse
thing found against business man.) Note : the amount which has been permitted through
appeal, in that hundred percent would be issued at once.
). Return scrutiny and data analysis should be done while refund. Suppose a refund is of
month of August then debit entry of account should be checked, in case of export. Verify
ITC, check details in GSTR 3B.
*. DRC (01 - 25 ) forms are for demand and recovery. DRC09 is recovery certificate. In
VAT system form 33 and form 34 has issued. Form 34 is for adjustment. In VAT, still
there is manual and online system. But in GST, there is all online system.

4. ASSESSMENT & AUDIT (01/01/2022 - 07/01/2022)

Assessment is calculation of tax liability of the taxpayer under GST law. It is the process
of figuring out how much tax is to be paid by an individual each month. “assessment” means
determination of tax liability under this Act and includes self-assessment, re-assessment,
provisional assessment, summary assessment and best judgment assessment. Normally,
persons having GST registration file GST returns and pay GST every month based on self-
assessment of GST liability. However, the Government at all times has the rights to re-assess
or perform an assessment by itself and determine if there is a short payment of GST.

Types of Assessments under CGST Act 2017,

● Section 59 – Self-assessment of taxes payable
● Section 60 – Provisional assessment
● Section 61 – Scrutiny of tax returns filed by registered taxable persons
● Section 62 – Assessment of registered taxable person who has failed to file the tax
returns
● Section 63 – Assessment of unregistered persons
● Section 64 – Summary assessment in certain special cases

Audit- Audit has been defined in section 2(13) of the CGST Act, 2017 and it means the
examination of records, returns and other documents maintained or furnished by the
registered person under the GST Acts or the rules made there under or under any other law
for the time being in force to verify the correctness of turnover declared, taxes paid, refund
claimed and input tax credit availed, and to assess his compliance with the provisions of the
GST Acts or the rules made thereunder.
GST Audit by Tax Authorities /Department (u/s 65)- A notice will be sent to the auditee
at least 15 days before. The Commissioner of GST (or any officer authorized by him) may
conduct an audit of a taxpayer. The audit will be completed within 3 months from the date of
commencement of the audit (can be extended further by 6 months by Commissioner).
Registered person to provide the required information and facility; Result of audit to be
intimated within 30 days [Form GST ADT-02] and further action will be taken.
Special GST Audit (u/s 66) by a chartered accountant or a cost accountant- During the
course of any scrutiny / investigation etc., if the Assistant Commissioner (AC) feels that the
Taxable value has not been correctly declared or wrong credit has been availed, then the AC
may direct a Special Audit to be carried out by a chartered accountant or a cost accountant
nominated by the Commissioner. Proceedings must be pending before Asst. Commissioner or
any officer above his rank; Nature and complexity of the case and interest of revenue to be
considered; Opinion : Correct value not declared and / or ITC claimed not within normal
limits; Prior approval of the Commissioner of CGST / SGST; Direct registered person to get
his records and books of a/c audited [Form GST ADT-03]; Audit to be done by CA / CWA
nominated by the Commissioner of CGST / SGST; Audit Report to be submitted within 90
days (can be extended by further 90 days); Opportunity of hearing given to registered person
and further action taken by proper officer; Expenses of audit including remuneration to be
determined and paid by the Commissioner.
Annual GST Audit- According to Section 35(5) of the CGST Act: Every registered person
whose turnover during a financial year exceeds the prescribed limit (presently one crore
rupees) shall get his accounts audited by a Chartered Accountant or a Cost Accountant and
shall submit a copy of the audited annual accounts along with a reconciliation statement
(reconciling the value of supplies declared in return with audited annual financial statements).
Contents of the audit report and other particulars to be prescribed. Audited Report and
Audited Annual Accounts to be submitted along with annual return on or before 31st
December following the end of financial year.
Threshold limit for GST Audit: Every registered person whose aggregate turnover during
a financial year exceeds INR 2 crore shall get his accounts audited. Aggregate turnover
includes value of all exempt supplies and exports under the same PAN, on all India basis.
Documents required for GST audit-
● Audited Financials
● Annual return in Form GSTR-9
● All GST 1 & 3B Reconciliations
● Reconciliation statement, reconciling the value of supplies declared in the return fur-
nished for the year with the audited annual financial statement in Form GSTR-9C

Amit Pandey
Emp ID- 127411