Brief on GST Advisory Service
The Goods and Services Tax (GST) was established by the Indian government on July 1, 2017. (GST). It applies to all business activities carried out in India. The Goods and Services Tax (GST) is India's largest indirect tax reform since independence. GST is a pan-India unitary tax on goods and services that is applied only on the "value added" to goods and services at each stage of the economic supply chain. GST has not only altered India's tax structure, but it is also likely to have a significant impact on every aspect of corporate operations in the country, including supply chain optimization, product and service pricing, IT, accounting, and tax compliance systems.GST will have an impact on tax structure, tax incidence, tax computation, tax payment, compliance, credit use, and reporting, implying that the current indirect tax system will be completely overhauled.
BIZ Advisors has been offering GST Advisory Services for a long time. We collaborate with business units to assist them in developing policies that will benefit their operations.
We offer a variety of GST advising services, including analysing the impact of GST on our customers' businesses, researching various market scenarios for business models, legislative business level implementation help, transition management, and key compliance.
Examining the Big Picture
- Make specific “concept level” effect locations.
- Convert high-impact areas into high-opportunity zones.
- Collaborate with the organization's policymakers to reduce the regions of influence.
- Make a list of ways that opportunities could be enhanced.
Advantages of GST Registration
- The cascading effect of taxes is eliminated with GST.
- Registration requirements are more stringent.
- Scheme of composition for small firms
- The number of people who comply is decreasing.
- E-commerce operators have a specific handling.
- Increased productivity
- GST regulates the unorganised industry.
GST Registration Eligibility
- Sections 22 to 30 of the CGST Act, 2017 deal with the registration process for all goods and service providers. Note on GST registration, which will begin on April 1st, 2019.
- Every person engaged in the supply of services and whose total turnover exceeds Rs. 20 lakhs in the states of Manipur, Mizoram, Nagaland, and Tripura, and Rs. 40 lakhs in the rest of the states, is required to register under this act in the state or union territory from which he makes taxable supplies of goods or services or both.
- Every person engaged in the supply of goods and whose aggregate turnover in a fiscal year exceeds Rs. 40 lakhs in the states of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, Uttarakhand, and whose aggregate turnover exceeds Rs. 40 lakhs in the rest of the states are required to be registered under this act in the state or union territory.
- Companies that export services must also complete the GST migration process and receive a GST Registration number in order to be eligible for tax exemption on services exported outside of India.
- GST registration is required for interstate sales, regardless of turnover.
Rates of GST
GST rates will vary depending on the type of products and services. The slab rates are currently 5 percent, 12 percent, 18 percent, and 28 percent. The fee for gold is 3%, and the rate for rough stones is 0.25 percent.
GST Advisory Services- BIZ Support
We assess the fiscal impact of GST on business and product pricing by analysing key parameters such as:
- Rates of taxation have changed.
- Changes in the norms governing the provision of products and services, or both.
- Impact on outward supply, including products and services, is being assessed.
- Incidence on free-of-cost supplies, stock transfers, discounts, incidental supplies, and supply to related parties under the GST valuation mechanism.
- Analysing the status on input tax credit availability – credit restrictions or additional tax credits on goods and services procurements; and
- Assessing the impact of GST on the company's operations, select products, and working capital based on the above characteristics.
Recommendations for realigning operations to maximise tax efficiency:
- Identifying alternative business models in order to maximise tax efficiencies and credit.
- The tax costs associated with the various business models suggested are evaluated.
- Identify potential hazards and provide appropriate mitigating methods in relation to the selected models.
- Following discussions with management, define the business model / contractual situations that could be implemented.
Provide guidance on the implications of the anti-profiteering provisions of the GST laws:
- Calculating the impact of GST on product and service prices in light of extra tax expenses and credits
- Advising on the most appropriate pricing mechanism to use, taking into account the additional savings/burden and regulatory requirements
- Providing recommendations for necessary precautions to be implemented, as well as
- Representing clients in front of anti-profiteering regulatory authorities
Steps to Ensure a Smooth GST Transition:
- Changes in company procedures, such as developing billing processes and devising a method for accepting advances/payments, are implemented.
- Guidance on the eligibility of particular GST credits that may be offered
- assessing and updating the validity and transferability of existing input tax credits
- Assistance with the completion and uploading of statutory Forms for Credit Transition.
- Guidance on how to reclaim taxes from customers
- Identifying significant areas for discussion with vendors/customers in regards to contractual relationships
- Preparation and updating of compliance manuals, as well as assistance in getting GST registrations or migrating existing registrations.
IT Functional Consultation
- Examining the existing IT system, as well as the designs and flowcharts that have been shared with us, in order to offer tax triggers and mapping for each of the business transactions.
- Changes in the law, such as those for credit transition, are based on Evolve logics.
- Configuring tax rates and updating the master file based on the rates that have been set
- Provide guidance on the GST reports that will be generated by the system.
- Provide guidance on invoice, credit note, debit note, and other relevant papers structure.
- Conducting UAT testing of the GST version of the IT systems and reporting findings, as well as final testing and providing a compliance report.
GST Training that is tailored to your needs
- Internal training tailored to the needs of the finance, taxation, legal, commercial, sales, and marketing departments,
- vendor, supplier, and customer training.
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Frequently Asked Questions
A unique Goods and Services Tax Identification Number, or GSTIN, is provided to every entity that successfully registers for GST.
If a company works in more than one state, it must register for GST in each state separately. If a sweet vendor distributes in both Karnataka and Tamil Nadu, for example, he must apply for individual GST registrations in both states. In a state, a company with various business verticals might get a separate registration for each one.