GST Advisory Services

We offer a wide range of GST advising services, such as discussing how GST would affect our clients’ businesses, looking at various market situations and business models, helping with legislative business level implementation, transition management, and carrying out important compliance.

Overview of GST Advisory Services

The Goods and Services Tax (GST) was introduced by the Indian government on July 1st. It is used for all business operations carried out in India. Since India’s independence, the GST is the country’s biggest indirect tax reform. GST is a single, uniform tax assessed across the entire country of India on both commodities and services. It is solely applied to the “value added” to products and services at each stage of the economic supply chain. GST has altered India’s tax structure, but it is also anticipated to have a significant impact on every aspect of corporate operations carried out in the nation, including supply chain management, product and service pricing, IT, accounting, and tax compliance systems.With a view to completely overhauling the current indirect tax system, GST will have an impact on tax structure, tax incidence, tax computation, tax payment, compliance, credit utilisation, and reporting.

Kanakkupillai has a close connection to the provision of GST Advisory Services. We collaborate with business units and assist them in creating policies that will enhance their operations. We offer a wide range of GST advising services, such as discussing how GST would affect our clients’ businesses, looking at various market situations and business models, helping with legislative business level implementation, transition management, and carrying out important compliance.

Broad Impact Assessment

Create specific impact zones at the “concept level”

Transform negative impacts into positive possibilities

To reduce the impact areas, collaborate with the organization’s policymakers.

Determine the ways in which the opportunities could be made better.

Benefits of GST Registration

  • GST removes the cascading effect of tax
  • Higher threshold for registration
  • Composition scheme for small businesses
  • Number of compliance is less
  • Defined treatment for E-commerce operators
  • Improved efficiency
  • Unorganized sectors is regulated under GST

Eligibility for GST Registration

The CGST Act, 2017, Sections 22 to 30, deal with the registration process for each supplier of goods and services. Note regarding GST registration beginning on April 1, 2019.

1)Every person who engages in the provision of services and whose aggregate turnover exceeds Rs. 40 lakhs for the rest of the States and Rs. 20 lakhs for Manipur, Mizoram, Nagaland, and Tripura shall be required to register under this act in the state or union territory from which he makes taxable supplies of goods or services or both.

2)Every person who is engaged in supply of goods and whose aggregate turnover in a fiscal year exceeds Rs. 40 lakh in case of the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, Uttarakhand and whose aggregate turnover exceeds Rs.40 lakhs (for rest of the States), shall be liable to be registered under this act in the state or union territory, from where he makes of taxable supply of goods or services or both.

3)To be eligible for tax exemption on the export of services outside of India, companies that export services must also complete the GST migration process and receive a GST Registration number.

4)Regardless of turnover, GST Registration is required for interstate sales.

GST Rates

Rates under GST will depend upon the type of goods and services. Currently, the slab rates are 5%, 12%, 18% and 28%. The rate for gold is 3% and 0.25% for rough stones.

GST Advisory Services- Our Role

Evaluation Of Key Parameters For The Fiscal Impact Of GST On Business And Product Pricing Involves:

1)alteration of tax rates
2)altering the rules for when and where to deliver commodities, services, or both
3)assessing the effect on external supply, such as products and services
4)Including incidence on free of costs supplies, stock transfers, discounts, incidental supplies, and supply to connected parties in the GST valuation methodology
5)evaluating the position regarding the availability of input tax credits, credit limitations, or additional tax credits for the purchase of goods and services;
6)Based on the aforementioned factors, determine how the GST will affect the company’s operations, particular goods, and working capital.

 

Advise On Realigning The Operations To Ensure Tax Efficiency:

finding alternative business models to maximise credit and ensure tax efficiency

evaluation of the different business models chosen based on the associated tax costs

Determine any potential risks and recommend appropriate mitigation measures in connection with the selected models.

After talking with the management, specify the business model and contractual situations that could be used for execution.

Advice Regarding the Effects of the GST Laws' Anti-Profiteering Provisions:

determining how GST would affect product and service prices in light of new tax obligations and credits

recommending the best pricing strategy to use while taking into account the additional savings/burden and the legal provisions

recommending the adoption of the necessary protections

representing clients before the anti-profiteering regulatory agencies.

Ensuring Steps For Smooth GST Transition:

Implementing modifications to business procedures, such as creating invoicing procedures and creating a mechanism for receiving payments or advances

Advice regarding the potential availability of certain credits under the GST system

assessing and updating the transferability and eligibility of current Input tax credits

help with creating and uploading statutory forms for the transition of credits

Advice regarding how to get clients to pay their taxes

identifying essential points for discussion with suppliers and consumers regarding the contractual terms

help with obtaining GST registrations or transferring current registrations, and

creating and maintaining compliance manuals.

IT Functional Advisory

We will review the shared basis designs and flowcharts, as well as the current IT system, to offer the tax triggers and mapping for each business transaction.

Develop the rationale for the legal amendments, such as the ones concerning the transition of credits.

setting up tax rates and updating the master file using the predetermined rates

Provide guidance on the reports that the system will produce for GST purposes.

Provide guidance on how to structure invoices, credit notes, debit notes, and other relevant documents.

carrying out UAT testing of the IT systems’ GST versions, reporting of findings, and

Final IT system testing and a compliance report are provided.

Customised GST Trainings

tailored internal trainings for the departments of finance, taxation, law, business, sales, and marketing in accordance with organisational requirements;

vendor, supplier, and customer training.

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