GST in India has been implemented from 1.72017. With introduction of Good and Services Tax, way of doing business has changed throwing ample opportunities for structured businesses to optimise tax and costs. It has thrown up challenges as well for the business as the law is comparatively new with regular amendments presently at a rapid pace.
Our experience over last decade in indirect taxation and experience in handling GST implementation support including extensive research in this domain makes us your ideal CA firm to ensure compliance with law and other value added support services. The services offered are as follows:
REVIEW OF GST TRANSITION
GST law got introduced much earlier than business expected. India Inc. was skeptical of introduction of GST in the month of July 2017 especially due to lack of preparation from GSTN for compliance. There were few taxpayers who got the GST impact assessment done and prepared to comply with GST. They incidentally gained a lot financially by being “ready”. However, majority of them could not get the impact assessment and moved to GST without having alternative option. The law is still new and there are few opportunities left for them to get the GST transition review which could include the following:
GST impact on business functions:
A brief analysis of GST impact on key business functions such as procurement, production, warehousing, distribution, supply chain management, information technology, working capital and other functional areas could conducted considering the GST rates, exemptions, concessions. This could help in cost control, pricing strategies etc.
Assist in compliance with transitional provisions of GST:
Transition from existing phase to GST involves substantial challenges. We review the issues in earlier indirect tax systems to ensure that all eligible benefits are carried forward in GST regime including other compliance needs. This would limit the exposure of demands in prior period.
Standard Operating procedures (SOPs):
Design and Review: Professional organisation requires SOPs for key business functions. There could be need to review existing SOPs considering the GST law which is developing on regular basis and design new SOPs in accordance with GST. We help in meeting all the requirements around design and modification SOPs for key business functions.
GST COMPLIANCE REVIEW ON PERIODICAL BASIS
We could expect regular developments in the new GST law as GST council would be considering the interests of various stakeholders from time to time. The level and need of compliance is also high in GST and organization may need help of professionals to ensure compliance with changing law. We may provide assistance in ensuring compliance by conducting GST compliance review on periodical basis covering all functions having impact in GST. This could include sales, procurements, inventory, finance etc. Such review would also be helpful for GST annual audit which is mandatory as per GST provisions for assesses with turnover of more than Rs.2 crore in a financial year. Periodical review could help the organization to ensure compliance, take benefits of credits, update with changes in rate of taxes et. Broadly, this would cover the following:
- Review of GST outward supplies, tax rates applied, concessions, exemptions claimed, fulfillment of related conditions, export benefits claimed etc.
- Review of GST input tax credits claimed to assess eligibility, ineligibility, completeness, documentation for credits, transitional credits carry forward etc.
- Review of procedural compliances including GST registrations obtained, payment of taxes, filing of returns, disclosure of ITC & outward supplies in returns, movement of goods for job work, carry forward of credits etc.
- Review of reverse charge compliance by reviewing the expense ledgers on sampling basis, payments made, availment of re-credit after payment, eligibility of such credits, rate and abatements if any claimed including documentation.
GST AREA SPECIFIC REVIEWS
Review could also be conducted for specified areas as discussed below:
Specific areas review:
Area specific reviews could also be a need of few organisations such as sales, procurements, exports, GST credits, refunds etc. We carry out area specific review to meet the purpose.
Review of systems:
Compliance burden is high as many of the processes are being automated. There is need for having proper system in place as to process, procedures, documentations and other aspects for easy compliance. We could assist in designing the systems by reviewing the systems to suit the business requirement and at the same time, ensure the full compliance of Law.
Review of existing agreements and suggestion could be provided for compliance with law and optimizing the benefits.
Review of disputes and refund cases:
Advent of GST has resulted in repeal of indirect taxes such as service tax, central excise and VAT. There is need for assessing the impact of it on pending disputed cases and refund claims. We assess the impact of these cases under new regime and suggest the course of actions to be taken to mitigate the adverse impact.
GST DUE DILIGENCE REVIEW
In business restructuring deals, tax due diligence of buyer side is required. This may required to be done voluntarily by buyer or based on specific direction by seller. The review is intended to highlight the tax exposure which may carry to new entity. This becomes more critical in cases where entity is exposed to multiple indirect tax laws. We have tax experts having in-depth knowledge in due diligence review to support the parties to deal or other professional advisors. The team identifies areas of non compliance, potential threats thereof and suggest remedial measures. Based on review, we are able to suggest alternative structuring strategy to optimise tax incidence.
GST REVIEW BEFORE DEPARTMENTAL AUDIT
Departmental audit is undertaken to gauge revenue leakage. This may ultimately culminate into litigation proceeding against the assessees. The cost of such unearthing is very high especially due to higher rate of interest and imposition of penalty upto 100%. With our experience, we know the possible target areas of department and methodology adopted for audit. We carry out the review before department officers come to your office and highlight areas which need immediate actions to minimise/avoid the risk of possible future litigation.
GST COMPLIANCE REVIEW TO SUPPORT AUDITORS
In recent years, reporting obligations of statutory, tax and internal auditor have increased manifold. They are required to mention the extent of non compliance under indirect taxation also. We support chartered accountants and other professionals in undertaking compliance review during the course of their statutory, tax and internal audit so that they are able to meet their statutory obligations. This sometimes, also opens up huge tax planning opportunities for the client.