GOODS AND SERVICES TAX
Goods and Service Tax (GST) is the most important indirect tax reform in the country, which introduces a comprehensive indirect tax on manufacture, sale and consumption of goods and services throughout India to replace various taxes levied by the central and state governments. GST is levied and collected at each stage of sale or purchase of goods or services based on the input tax credit method. Changeover to GST will impact the tax structure, tax incidence, tax computation, tax payment, compliance, credit utilization and reporting, leading to a complete overhaul of the current indirect tax system followed by company. It is imperative for entities to study the far-reaching impact of GST on almost all the aspects of the business operations, i.e. pricing of products and services, supply chain optimization, IT, accounting, and tax compliance systems. The existing regime requires businesses to undertake careful upfront analysis of the tax costs involved in a transaction¸ ensure adequate backup documentation to support their tax positions and constantly explore opportunities for tax optimization. Further, as India is committed to move towards uniform Goods and Services Tax (GST) regime by April 2016, this needs to be factored in any significant tax approach developed at present.
We assist our clients in deciphering GST impact and identifying risk areas and sustainable planning opportunities by providing full cooperation and services as and when needed.