GOODS AND SERVICE TAX (GST)-INDIA BIGGEST REVOLUTION IN INDIRECT TAX
GST is a huge reform for indirect taxation in India, the likes of which the country has not seen post Independence. GST will simplify indirect taxation, reduce complexities, and remove the cascading effect. Experts believe that it will have a huge impact on businesses both big and small, and change the way the economy functions.
COMPREHENSIVE: GST will subsume all of the current indirect taxes. Plus, by bringing in a unified taxation system, across the country, it will ensure that there is no more arbitrariness in tax rates.
MULTI-STAGE: GST is levied each stage in the supply chain, where a transaction takes place.
VALUE-ADDITION: This is the process of addition to the value of a product/ service at each stage of its production, exclusive of initial costs. Under GST, the tax is levied only on the value added.
DESTINATION-BASED CONSUMPTION: Unlike the current indirect taxes, GST will be collected at the point of consumption. The taxing authority with appropriate jurisdiction in the place where the goods/ services are finally consumed will collect the tax. For example: Let’s say that cotton garments are being shipped from Karnataka to Maharashtra. Karnataka is the producer state and Maharashtra is the consumer state. Tax revenue under GST will go to Maharashtra. Let’s understand how this will impact imports and exports. Exports are not taxable, because the place of consumption is outside India. Imports are taxable, because the place of consumption is in India. The tax on imported goods will therefore be just the same as domestically-produced goods. Thus, the export industry will become more competitive when compared to its international peers. Also, domestic goods will be protected by making imports at par with domestic goods.
SOME OF OUR SERVICES INCLUDE : Rendering assistance in registration under GST Assistance in claiming input tax credit Assistance in furnishing tax returns and claiming refunds Advice on the legal aspects of GST Rendering advice on the wide range of issues in relation to tax invoices and retails invoices Tax Planning as regards the minimization of GST Liability. Consultancy on the maintenance of prescribed records. GST Audit GST Refund GST Ewaybill service Internal Audit and Compliance Reviews Helping with audit of accounts necessary for a registered dealer |