Goods and Services Tax (GST) is just around the corner, scheduled to be implemented from July 1, 2017. It will have a far-reaching impact on the entire indirect tax regime, from the nature of levy and tax rates to the administration of the taxes.
Although the GST aims to simplify the whole indirect taxation process, there exist certain procedural lacunae during the transition period that can jeopardize the entire change-management process. Thus, the purpose of this article is to examine the various ways tax practitioners are gearing up for GST India.odities.
5 Critical areas of your Business will be impacted by GST!
Pricing of your
product or services
Areas of your
4 Solid Reasons to act on GST implementation, NOW!
- 1. GST Council has finalized the GST Rates
- 2. GSTN has started migrating existing Taxpayer’s data
- 3. Model GST Law and major Draft Rules are out
- 4. GST Bill is likely to be passed in this Winter Session
You can transform your business to a revenue-producing asset that lets you work as much or as little as you want.
How can We Help You?
Reduction or increase in the working capital requirement on account of Input Credit and Output tax which will depend on nature of the industry (Manufacturing, Trading or Service) and the business model (Business to Business or Business to Consumer).
Review the terms and conditions of existing agreements, which will remain effective on the transition date and suggest the required changes to avail the full benefit under GST Law.
Review the requirement of changes in the IT system with the introduction of GST.
Review of complete Supply Chain operations for a supply of Goods and Services from the perspective of GST and advise necessary changes. It may even involve shifting or removing warehouses in certain cases.
Review the impact of GST on the pricing of goods and services through the simulation model with a couple of scenarios.
Advise on the Tax Planning scenarios under GST regime.
Review of input credit services and capital goods, which is eligible to be carried forward in the GST regime.
Review of information/documents being filed with GST authorities regarding registration application, credit transition document etc.
Advising on the valuation of services as per the GST provisions for payment of GST.
Review of the reports being generated from the various sources whether the same are in compliance with GST requirement.
Review of Invoice Format under GST and other related documents.
Advising on Input Service Distributor registration to avail maximum allowable credit of GST on input services.
- Provide training to tax team to handle the GST compliances related to payment of GST and filing of GST return.
- Review of tax returns being filed with each State for the initial 3 months post-GST implementation date.
- E-mail support on queries being raised on regular GST compliances for initial 3 months.
- GST Impact Assessment: GST is going to change the way business is done. There is need for every business to analyse the impact of GST on various spheres of their business. We have team of professionals with sound knowledge of GST which could assist in assessing the impact of GST on your business. Services offered under this category are as follows:
- Tax impact on business functions: In-depth analysis of GST impact on key business functions i.e. procurement, production, warehousing, distribution, supply chain management, information technology, working capital and other functional areas. Suggestions for necessary modifications to reap maximum benefits under GST
- ERP Support- Implementation and/or modification: GST would be information technology driven law requiring immaculate ERP system to integrate the financial and non financial information with the information required to be submitted to regulators. We suggest ERP system based on size and need of business, review existing ERP system & suggest suitable changes therein to make it GST compliant.
- Standard Operating procedures (SOPs)- Design and Review: Professional organisation requires SOPs for key business functions. There could be need to review existing SOPs and design new SOPs in accordance with GST. We help in meeting all the requirements around design and modification SOPs for key business functions.
- Review under existing IDT- smooth transition to GST: Transition from existing phase to GST involves substantial challenges. We review existing indirect tax systems to ensure that all eligible benefits are carried forward in GST regime and proper systems, processes and procedures are envisaged and put in place in advance so as to ensure flawless compliance under the new law.
- IDT reengineering and preparation of SOP: Business functions presently carried on are centered around existing indirect tax laws. There could be need to revamp key functional departments to be GST compliant and to reap the benefits of GST. We re-engineer business processes from indirect tax perspective including designing SOPs for the same.
- Review under existing law- limited review: To identify impact areas during transitional and course of actions to be taken for a smooth transition to the new tax regime.
- Area-specific review: There are specific transitional provisions covering carry forward of credits, continuing contracts, refund/rebates, past unpaid liabilities etc. We carry out area specific review to ensure full compliance with transitional provisions without losing out any benefits.
- Suggestions for transition as to process, procedures and other aspects: The compliance burden under GST is going to increase substantially. There is a need for having a proper system in place as to process, procedures, documentation and other aspects. We assist in customised designing to suit the business requirement and at the same time, ensure the full compliance of GST.
- Agreement vetting/modification: Review of existing agreements and suggestion for changes to make them GST compliant.
- Tax optimisation/credit optimisation: Suggesting ways to optimise overall indirect tax/credit incidence under GST.
- Assessment of disputed and refund cases: Advent of GST would result in the repeal of indirect taxes to be subsumed in GST. There is a need for assessing the impact on pending disputed cases and claims of refund/rebate filed by an entity. We assess the impact of these cases under a new regime and suggest the course of actions to be taken to mitigate the adverse impact.
- Industry/client specific representation: GST could impact business in multiple ways. Many unanticipated implications may arise having an adverse impact on business. We can make a representation before government/regulators to address the concerns of industry/client.
- Hand holds support Guidance, assistance, and support in the post-transition initial phase so that you are relieved of all your taxation worries.
- Consulting retainership To solve all GST related queries by phone, e-mail or other modes of communication on real-time basis acting as consulting retainer.
- Review (periodical) retainership Periodical review of business functions to assessee compliance level under GST, identifying the area of leakage of benefits and suggesting the ways to set them right. This could be monthly, quarterly, six monthly or annually.
- Compliance support/outsourcing Undertaking compliance functions ie. obtaining registration, verification of input tax credits, the filing of returns and all other compliances under GST either on support basis or complete outsourcing.
- Industry/client specific representation Making representation before the government to address post-implementation problems faced by business.
- Pre-audit under GST Pre-GST audit undertaken prior to GST statutory audit to enable taking corrective actions timely.
- Audit under GST Statutory audit as required under GST law.
- Refund/rebate claim Suggesting options for claiming refund/rebate benefits, assistance in preparing and filing necessary documentation and follow up with a department to get the benefits.
We offer training to human resources of the organization covering all or specific aspects of GST. The training program could be in the form of corporate training, business-specific training, functional area training or workshop as per the need of the client. We also provide training to departmental officers on specific requests.
Other GST Services
Our other services include advisory/consultancy on any GST related problems, transaction structuring to optimise the tax incidence under GST, handling litigation at various stages and suggesting alternative course of actions to mitigate and resolve possible disputes under GST.