Introduction to Tax System:

Being one of the fastest growing economies in the world, Taxation in India has broader scope since decades. Two major taxes that fetch revenue for India are Direct Taxes and Indirect taxes the major difference between Direct Tax and Indirect tax are:

  • Direct taxes are directly levied on the income of the individuals and entities of the country, and this levy structure called Progressive Taxation.

  • Indirect Taxes are indirectly imposed on final consumer whom getting benefited from goods produced or services rendered, and this levy structure called Proportional Taxation.
Indirect Taxes in India -Through Lenses of History:

Though the beginning of levy of Indirect taxes in India were not recorded yet there were few references proving existence of Indirect Taxes even Before Christ (BC). During 17th & 18th Century when India was under the British Rule the indirect taxes were imposed and collected on agricultural Produce, commodities, livestock and on many others. After Independence, constitution of India ‘the supreme law of India’ layout federal structure to Indian Government and designate powers to both Central and State Governments. Thus, both Central and state government has power to impose taxes.

Indirect Taxation-GST:

Goods and Services Tax (“GST”) is the current Indirect tax System in India and it came into force on 1st July 2017. GST will impose and collected by both Central and State governments. GST was formed by subsuming earlier Indirect taxes with an intent of “One Nation One Tax” and considered it as Good and Simple Tax in India. This Dual GST Model will be levied on supply of goods and services as recommended by GST council.

Intra-state supply attracts Central GST & State GST and Inter-state supply attracts Integrated GST. GST is not applicable on Petroleum products, Tobacco, Alcohol for human consumption and are still charging under some earlier Indirect taxes. Integrated GST is applicable on Imports after imposing Custom duty and exports are exempted under GST. GST facilitates single interface with GST portal for taxpayers and authorities. Implementation of GST eradicated the cascading effect also enable the supplier to avail Input tax credit on inputs used for supply. Broadly GST has brought significant positive impact to the tax system.

As GST Consultants, our Indirect Tax Service vertical provides advisory services under Goods and Services Tax (GST) and other Indirect Taxes (IDT).  These services are tailored to assist businesses/industries in meeting challenges pertaining to adoption of the new & evolving Goods & Service Tax laws and compliance with other applicable indirect tax laws in India.

Our GST Advisory Services include detailed analysis of the client’s business to provide tailored advice and assistance regarding their GST planning & compliances.

How can we help?
Impact Analysis
  • Mapping current business model vis-a-vis model under GST regime
  • Analysing key tax impacts on transactions undertaken
  • Evaluation of agreements
  • Examining eligibility of tax credits into GST regime
  • Simulating I/O cost structure
  • Identifying issues and developing mitigation plans
Implementation Planning
  • Assistance in aligning tax reports, invoices
  • Providing insights on factors for vendor negotiation
  • Advice on transitional issues
  • Preparing GST-compliance calendar
  • Conducting training sessions
  • Assisting IT-team to make GST compliant IT-system
  • Verification of tax calculation in system after IT implementation
  • Assisting in aligning the existing RCMs
  • Helping to identify internal checks for reducing errors
  • Revalidating impact analysis on the basis of final GST law
Post Implementation Support
  • Checking eligibility and effective utilization of credit
  • Periodical review of monthly I/O data & returns
  • On call routine advisory (Consulting retainership)
  • Suggesting changes to bring efficiency
  • Updating the organization with relevant legal changes
  • Review of data, returns, systems vis-à-vis Tax Laws.
  • Review of Tax computation.
  • Finalization of observation and discussion.
  • Finalization of Reconciliation and Audit Report.
  • Signing of Audit Report & reconciliation Statement
  • Taxability of transactions.
  • Documentation review/Audit.
  • ITC compliances.
  • Applicability of rates.
  • Compliances processes.

Other Indirect Taxes (IDT) Services

Foreign Trade Laws and Incentives scheme related services:
  • Advisory services on Foreign Trade Laws and EXIM rules & regulations.
  • Advisory and compliances for incentives and benefits related to the establishment of SEZ / EOU / Export units and Deemed Exports, etc.
  • Advisory and representation services on Foreign Trade Policy before Directorate General of Foreign Trade including availing of incentives and benefits under Foreign Trade Policy.