The advent of Goods & Services Tax (GST) in India effective July 1,2017 has been the most dramatic change in its indirect tax structure in the last 70 years. GST subsumed 14 taxes and levies and for that reason alone constitutes a pivotal step in rationalisation and simplification of the tax structure. The interface with tax bureaucracy is expected to be a fraction of what it was earlier, freeing up time for businesses on things that matter most to them. The cascading effect of multiple taxes is replaced by a seamless mechanism for availing offsets at various stages of the value chain. Physical logistics are simplified – there are no more octroi (toll) checkpoints on movement of goods from county to county, state to state. Choice of location for a business is now governed by economic factors such as infrastructure, labour, etc. and not by the differential tax incidence at different places.
Whereas long-term, GST will be beneficial, a new law brings its own issues. A good understanding of the law and its procedures is not widespread, and the chances of errors and consequent risks remain high currently. Our GST services are designed to help you navigate these uncharted waters and mitigate implicit risks.
1. GST: Business Model Impact Study
The challenge at hand for businesses is to adapt to the new GST regime by understanding its various nuances. Our team understands and analyses the GST implications applicable to each business activity and conducts an impact analysis on the business. If required, a holistic review of the GST impact on the entire business model is undertaken. A comprehensive report and possible alternatives are suggested for the most beneficial tax position for your business.
2. GST: Compliance and Risk Assessment Services
We carry out compliance checks to ensure there are no compliance gaps leading to costly consequences such as unanticipated taxes, interest, penalty or litigation. Everything relevant is checked – correct classifications, timely tax payments, timely and accurate tax returns, output taxes, input tax credits, refund claims, adequacy of accounting system for meeting GST requirements etc.
The emphasis is two-fold – compliance with the law, and usage of all possible benefits that the law provides.
3. GST: Ongoing Support Services
Our Ongoing Support Service is ideal for clients who wish to be fully compliant but do not have in-house resources with the relevant domain knowledge; or those who seek external validation of the corporate GST actions. So, we may either actually help with all compliances, or do a review to provide validation. Outsourcing the GST support services will include calculation of GST output liability and input credit, monthly payments and monthly GST returns.
4. GST: Opinion and Action Plan
Many business’ transactions or arrangements lend themselves to alternative tax treatment due to ambiguities in law, in procedures, contradictory judicial precedents and the like. A position that seems prima facie most beneficial may turn out to be without legal merit on deeper evaluation. Through systematic questioning about the nature of the problem and the solution requirements, we make an informed decision regarding the recommendation to employ for your business. An overall action plan for a systematic decision-making process is presented by us.
5. GST: Appeals, Advance Rulings
If your business may have been penalised or affected by an adverse decision by the GST department, we are able to assist in filing the necessary appeals, documents and representations on your behalf.
We also help in proactive risk-management by seeking advance rulings where significant sums are involved in issues that have scope for alternative interpretation.