Indirect taxes pervade every area of a company’s business. Their impact on material and product costs, cash flow, profitability and, ultimately, on shareholder value is an important element to stay ahead in competition.

GST is the biggest indirect tax reform of India and it is an indirect tax which has replaced many indirect taxes in India. The Goods and Services Tax Act was passed in the Parliament on 29 March 2017. The Act came into effect on 1 July 2017. Goods & Services Tax Law in India is a comprehensive, multi-stage, destination-based tax that is levied on every value addition. GST is a single tax on the supply of goods and services. It is a destination based tax. GST has subsumed Central Excise Law, Service Tax Law, Value Added Tax, Entry Tax, Octroi, etc. GST is one indirect tax for the entire country. The main objective of incorporating the GST was to eliminate tax on tax or double taxation, which cascades from the manufacturing level to the consumption level.

Under the GST regime, the tax is levied at every point of sale. In the case of intra-state sales, Central GST and State GST are charged. Inter-state sales are chargeable to Integrated GST.

The businesses need to ensure (i) Proper classification in terms of HSN and SAC codes and the applicable tax rates (generally ranging from exempt to 28%); (ii) ascertain place of supply to determine relevant state for GST compliance and tax payments; (iii) claim proper input tax credits where eligible and exclude or defer input tax credits not eligible, as well as refunds or tax credits for exports; (iv) ascertain and ensure compliance with reverse charge on inward supplies, where applicable (v) ensure filing of periodic and annual tax returns in each state (or for each registered presence) based on applicability; and (vi) special procedure for valuation in case of related party transactions.

For businesses, this translates into the electronic filing of multiple monthly state-wise returns, transaction-level data upload, numerous reconciliations (revenue reconciliation, reconciliation with vendor details uploaded on GSTN invoice matching) and, at times, complex tax computation.

Our Goods and Services Tax services include the following;

• Implementation of GST;
• Assistance in obtaining GST registration;
• Verification of input tax credit records and identification of ineligible credits;
• Review of periodic computation of GST liabilities;
• Assistance in preparing and filing periodic returns;
• Assisting in annual GST audit;
• Assistance in drafting responses to notices, enquiries and such other communication received from GST assessing authorities;
• Assistance in preparation and filing of appeals against orders received from appellate authorities;
• Representation before the appropriate authorities and engaging external legal counsel, if required;
• Filing advance ruling applications with the authorities in order to seek clarification on ambiguous matters;
• Evaluate tax implications on existing or proposed business transactions;
• Review contracts and agreements in order to identify the GST impact, from the perspective of procurement, manufacturing and distribution;
• Assistance in identifying optimal valuation model for related party transactions under GST, while aligning the same with the model adopted under transfer pricing provisions;
• Evaluate the legal positions adopted and suggest changes, if any, under the GST regime;
• Assistance to comply with the provisions of anti-profiteering rules under GST;
• Conducting tax impact assessment studies;
• Conduct due diligence reviews from indirect tax perspective;
• Conduct health-check reviews and ensure that tax compliance are adhered to;
• Provide technical assistance and representation services during departmental audits;
• Assistance in preparation and filing of representations before Advance Ruling authorities and other tax or government authorities;
• Conduct management/personnel training for clear understanding of relevant GST provisions.