Goods and service tax (GST) Advisory Service

One of the most major indirect tax measures in India after Independence is the Goods and Services Tax. It debuted for the first time in July 2017. A single, unified tax known as the “commodities and services tax” is imposed on both goods and services, but only on the “value added” at each stage of the industrial supply chain.

The GST has had a significant impact on all areas of company operations in the nation, including pricing of goods and services, supply chain optimization, IT accounting, and tax compliance systems. Overall, it has an effect on tax incidence, tax structure, tax payment, tax computation, compliance, credit utilisation, and reporting, which has altered the way the entire indirect tax system works.

The government has been quite active in reorganising its procedures and modifying them to meet industrial demands. In order to prevent future economic disruption, a number of legal clarifications or adjustments were made at the time the GST was implemented.

At Enterslice, our experts help clients by offering a wide range of GST advisory services, such as conducting GST diagnostic reviews, supporting clients in legal proceedings, providing advice on various GST-related matters, and providing representation before the GST Council, among others. Our GST Consulting Professionals will also assist you with GST audits, compliance, and refund requests.

What is GST in India?

To harmonise state economies and promote the overall economic growth of the nation, the government implemented the Goods and Service Tax on March 29, 2017. GST is an indirect tax that includes all other taxes in its scope. On July 1st, 2017, the GST Act went into effect, and ever since, it has supplanted all previous taxes. GST is a comprehensive tax that is levied throughout the entire sales process.

As part of the composition plan, the GST regime also lowers enterprises’ tax obligations. Companies cannot use input-credit and must have a supply turnover of less than Rs. 50 lakh in order to benefit from this scheme. The service sector, however, will not be included by this plan.

What are the Features of GST?

The features of GST are as follows:

• Taxes Covered

The GST incorporates a number of state and federal indirect taxes. At its core are three significant indirect taxes. These are service tax, customs charges, and union excise duties. The central excise duties and service taxes are included under the GST. The GST does not incorporate customs taxes as a trade tax. States have combined sales tax and GST in turn.

• The four-tier rate structure

A four-tiered pricing system was proposed by GST. 5%, 12%, 18%, and 28% are the tax rates that the government has set, in addition to the 0% tax on necessities. Under the GST, essential components like food are excluded from taxes. Some common items are subject to a 5% tax.

• Service Tax under GST

Under GST, there is a separate tax structure. Essential services are subject to a 5% tax charge. Standard services are charged at 12%, whereas commercial services are charged at 18%. Educational institutions are exempt from paying service tax on their services.

• Turnover Limit under GST

When a business’s annual revenue exceeds Rs. 20 lakhs, GST becomes applicable. Even if a trader’s sale is less than Rs. 20 lakhs, they must still register for GST if they are selling goods to other states. For a restricted group of taxpayers with a yearly turnover of up to Rs. 75 lakhs, there is also a composition plan.

• Tax Revenue Appropriation between the Centre and the States

With the exception of the IGST, the Centre and the states split all tax revenue 50/50. Under GST, the federal government and the states are combining their higher indirect taxes. Everybody receives their fair portion. The Central GST and the State GST have been adopted by the GST Council as dual GST components for this purpose.

What are the Benefits of GST Registration?

GST eliminates the tax’s conflicting effect.

greater bar for registration.

Scheme for the composition of small firms.

Fewer people are complying.

Operators in e-commerce are given specific consideration.

increased effectiveness.

Due to GST, unorganised sectors are regulated.

How we Provides GST Advisory Services?

We keep a close eye on GST developments. We help the company foresee the policy changes and evaluate how they will affect their operations. We offer specialised GST advisory services, such as determining how GST would affect businesses, scenario analysis, which includes looking at alternative business models, aid with legislative business level implementation, transition management, and big compliance projects. As part of our GST Consulting services procedure, we:

Broad Impact Assessment

Based on the information in the public domain, develop a specific level of concept to affect the areas, and compare the GST systems in related jurisdictions.

Change the impact zones to the opportunities and risks zones.

Support the GST policymakers’ representation process to reduce its impact areas.

Determine how opportunities might be made better.

Looking at Complete Scenario

For the purpose of GST advise, do adequate estimations of the impact of GST on businesses.

Determine the conditions that could maximise or decrease the highlighted opportunities or concerns.

Make a short list of all the GST readiness situations that can be used.

Implementation Assistance

Examine the internal controls, accounting, and modifications to the custom design as part of the GST advisory.

assist in implementing necessary supply chain modifications.

To comply with the GST requirements, review the paperwork, processes, and policies and make any necessary modifications.

Describe how the GST liabilities and credits can be selected automatically for tax payments and compliance.

Transition Management

an examination of the GST registration procedure.

helping with the initial round of GST compliances (invoice formats, returns, etc.).

assistance with the transition of the tax responsibilities and credits, and consideration of the rules.

Individual needs should be addressed, such as requests for advice on problems involving help.

Why Choose us for GST Advisory Services?

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• GST Planning

Our GST planning services aid in the strategic identification of prospects for lowering GST liabilities, minimising compliance expenses, and enhancing cash flow.

• Business Model Optimization

In order to realign for corporate transformation, financial, legal, and tax structures can be reorganised with the aid of our GST guidance specialists.

• Merger and Acquisition Advisory

Our GST Consulting Service helps identify whether an acquisition is GST-eligible and draughts merger and acquisition agreements effectively to minimise unintended tax repercussions.

• Government Relations Support

Our GST Advice professionals assist clients in contacting or communicating with government officials. Also, they will aid you in getting ready for a government audit.

• Customs Duties

Because certain customs facilities can be expanded to include GST, our experts in GST Advising offer customs and GST planning techniques that reduce the tax exposure.

What is our Role in GST Advisory Services?

Our primary role in GST Advisory services is to evaluate the fiscal impact of GST on business and product pricing. Evaluation of critical parameters includes:

Modifications to the tax rate

alterations to the laws of supply and timing for commodities and services.

Analyze the effect on external supply.

Examine the GST valuation process, taking into account the impact of discounts, freebies, incidental supplies, and parties connected to the supply chain.

evaluating the situation regarding input tax credit availability.

To Check, Tax Efficiency Advice on Realigning the Operations

help find alternative company models, check for credit optimization, and assure tax efficiency.

To determine the associated tax costs, evaluate each alternative company strategy.

identifying every possible risk and recommending mitigation measures related to the selected models.

After talking with the management, specify all the possible business models or contractual circumstances.

Advise On the Provisions under the GST Laws

to determine how the GST may affect the expenses of extra taxes or tax credits on goods and services.

advising on the appropriate pricing structure that should be used in light of the additional savings or burden and the regulatory requirements.

advising on the proper precautions that should be taken.

acting as an advocate before the regulatory bodies established to combat profiteering

Ensuring Steps for Smooth GST Transition

the implementation of modifications to company operations, such as setting billing policies and creating a mechanism for accepting payments or advances.

information on which credits are eligible for certain tax benefits under the GST system.

assessing and maintaining the transferability and capacity of current input tax credits.

Help was given in setting up and submitting the legal paperwork for the transfer of credits.

Advice on the best way to get clients to pay their taxes.

identifying key points for discussion with suppliers or customers while upholding the terms of the contract.

assistance with obtaining GST registrations or transferring current registrations.

putting together and updating the compliance guides.

IT Functional Advisory

to give the tax triggers and mapping for all company transactions, we will examine the current IT system based on designs and flowcharts that have been shared with us.

Develop reasoning based on new legal changes, such as those affecting the transfer of credits.

setting up the tax rates and updating the file in accordance with the planned rates.

Guidance on all the reports that must be produced by the system in order to comply with GST.

Advise on the organisation of all connected papers, including invoices, debit notes, credit notes, and others.

UAT testing the GST version of the IT systems, then compiling and presenting the management with the findings.

IT systems’ final testing in order to produce a compliance report.

Customized GST Training

Internal organization-wide training that is specifically tailored for the departments of finance, law, taxation, business, sales, and marketing.

For customers, vendors, or suppliers.

Frequently Asked Questions

What is Goods and Services Tax (GST)?

GST is a consumption-based tax on goods and services. It is assessed at every stage, from production through final use, and is credited for taxes paid at earlier stages. Another way to put it is that only value addition is taxed, and that the final consumer is responsible for paying the tax.

What is the requirement of Dual GST?

India is a federal nation, meaning that with the proper legislation, both the centre and the states are able to levy and collect taxes. According to the Constitution’s provision of the separation of powers, each level of government has distinct duties to carry out for which they must raise funds. Hence, a dual GST aids in upholding federalism.

Which authority will levy and administer GST?

While corresponding states/UTs will levy and administer SGST/UTGST, the centre will levy and manage CGST and IGST.

What are the Advantages of GST?

The benefits of GST are as follows:

• You can deduct the tax you paid to the federal government as an input.

• Taxes at set rates.

Exporters will not be taxed.

• An open taxation system.

What are the documents needed for GST registration?

PAN Cards.

• The Aadhar card.

• Digital Signature for businesses and LLP.

• A valid email address and mobile number.

• A picture of the proprietor, the partners, and the authorised signers.

• A registration certificate issued in accordance with previous tax laws.

• Documentation proving the authorised signatory’s appointment as well as their identity.

• Evidence of the primary place of business.

• The first page of a bank statement that is held in the proprietor’s or business’s name.

Who decides the rates of GST?

The CGST and SGST would be assessed at rates that the Center and States would establish together. The GST Council’s proposals would be communicated to the rates.

Is GST mandatory?

Businesses that generate more than Rs. 40 lakhs ($10 lakhs for NE and hill states) in annual revenue are required to register as average taxable persons under the GST Regime. GST registration is the name of the registration process. It is required for small enterprises to register under GST.