Compliance and Advisory Regarding GST

Goods and Services tax regime was introduced in India in the year 2017. It is one of the major tax reforms taking place in the country that changed the whole economy and tax culture for betterment. Since then, there have been a lot of buzz regarding the various processes and procedures associated with the Goods and Services Tax Regimen in India. In this article we have tried to explain all the types of compliance and advisory under GST or related to GST Service that a taxable person must opt for.

Compliance and advisory under GST

  • GST Advisory:

It is one of the major services that a taxable person can avail in India for the Compliance and advisory under GST. It helps the taxpayers in the following ways-

  • By providing opinions on the tax issues regularly faced by the companies.
  • By advising on the tax applicability and liability on various transactions done by the client or have been proposed to be undertaken by the client.
  • By advising on day to day issues related to valuation, classification, tax claims, place of supply, tax benefits admissibility and tax exemptions.
  • By analyzing the company requirements for registration purpose through proper consideration of the business operations that have been undertaken from the premises of the company or organization.
  • By analyzing the cross-charge requirements and needs of the multiple registrations for the company.
  • GST Compliance outsourcing:

Due to increase in the business culture-oriented world and fast-growing companies, outsourcing has become the need of the hour for most of the organizations. For completing compliance and advisory under GST, most of the companies are choosing to outsource its compliance mechanism to be more compliant with GST to the external companies. This can be helpful in-

  • Supporting the company across various locations by having a strong in-house tax team.
  • Tracking the changes adopted in ERP Data through a complete audit trail.
  • Ensuring accuracy and data completion through extensive and exhaustive control and validation checks for finalizing the returns.
  • Undertaking the compliances with minimal human intervention by using the best in class GST Compliance Solution.
  • Managing the company’s entire system of compliance related to indirect tax on all-India basis.
  • Indirect tax review and health check with due diligence:

Another important facility that the tax payers get for compliance and advisory under GST. It can be beneficial for-

  • Conduction of detailed indirect tax due diligence for both sell side as well as buy side.
  • Validating the company’s adopted tax positions regarding various revenue stream and expenses that are subject to taxation under the Reverse Charge Mechanism.
  • Reviewing all the processes of the business entity such as procurements, refunds, exports, outward supplies, ISD, Job Work and cross-charge etc.
  • Undertaking a review of the business operations that is comprehensive for identifying the opportunities related to tax optimization and the compliance gaps.
  • Reviewing the Implementation of GST done by the company and all the other compliances as per the GST Laws and provisions.
  • GST audit:

One of the most undertaken activity in the compliance and advisory under GST is the GST Audit. Conducting the GST Audit Service helps in the following-

  • Assistance in relation to compulsory yearly GST audit of the Company
  • Guidance in collation of documents and information for the purpose of filing annual return and audit report
  • Review of data collated and reconciliations prepared
  • Assistance in preparation and filing of GST annual return and audit report
  • Strategic consulting and structuring:

It can be beneficial for the clients to have a structuring and strategic consulting while availing the services for compliance and advisory under GST. It has the following advantages-

  • Provides assistance in negotiating the contracts.
  • Formulates business models that are efficient in indirect taxes.
  • Structuring the transactions and contracts for optimizing the incidence of indirect taxes.
  • Reviewing the documentations related to contract.
  • Transformation of tax function:

It is important to transform the tax functions for compliance and advisory under GST. It can be really helpful for the following-

  • Assessment of already existing tax team structure, compliance process, methodologies for computing the tax position, documentation for litigation and process control etc.
  • On the basis of the assessment, creating a roadmap or Centre of Excellence (COE) for transforming the tax functions.
  • Implementing the technology solutions for tax for the management and workflow of litigation, compliance and advisory under GST.
  • Assisting a very smooth implementation of the tax functions that have been transformed such as litigation, compliance and advisory under GST.
  • Implementing the review of proper functioning of the tax transformation functions, post the assistance.
  • Anti-profiteering study:

It is important for any business organization to study the anti-profiteering methods in the company. This helps in the following-

  • Provides assistance in the ongoing enquiries and investigations.
  • Provides an analysis of the sales structure and procurement of the company while comparing it with the regime of indirect taxes for identifying the benefits that have arisen because of GST.
  • For providing a detailed analysis of the industry and market of operation of the company for evaluating a mechanism that is an alternative to the existing system for ensuring compliance and benefits with the GST Laws.
  • Checking the applicability of the Anti-profiteering provisions in the company through a detailed analysis of the business functions.
  • GST refunds:

During the compliance and advisory under GST, the GST Refund Service has a major role to play. It helps in-

  • Reviewing the documents against which the Company made exports of goods or services or both outside India.
  • Provides assistance to reconcile any mismatches between the Form GSTR-1 and Form GSTR-3B.
  • Providing assistance in preparing an application for claiming refunds.
  • Thorough discussion with the Company regarding the documents to be submitted to the tax authorities for GST Refund claim.

 

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    Author: Anil Agrawal
    EZYBIZ India Consulting LLP, New Delhi. The firm is business and tax consultancy firm providing consultancy in Taxation, Regulatory, Transfer pricing, Valuation, Corporate funding and Business set up matters. He may be reached at 9899217778 or anil@ezybizindia.in.