How can a GST advisor simplify the taxation process for your organization?

The impact of Indirect tax is felt in every area of the business. Right from the material and product costs to the cash flow and the business profitability, the influence of indirect tax serves as an important benefactor for the companies to stay ahead in the competition. The inclusion of GST changed the entire course of business operations and indirect tax’s functioning ever since.

An overview of GST?

The introduction of Goods and Service Tax (GST) on 1st July 2017 was hailed as one of the biggest tax reforms in the history of indirect taxation. The objective of bringing this reform was to enhance the nation’s overall economy. The easiest way to look at its premise is that GST is a comprehensive indirect tax that is imposed at every stage of the buying scale of goods and services. The comprehensive setup replaces the previously followed multiple indirect taxes, including VAT, service tax, excise duty, etc.

Features of GST?

• Comprehensive tax - It replaces the multiple indirect tax structures. GST eliminates the cascading tax effect and is only imposed once i.e., on the net value-added portion.
• ?Four-tier rate structure - The goods and services are bifurcated as per the four-tier GST slabs of 5%, 12%, 18% and 28% in an attempt to keep the inflation in check.
• The turnover limit under GST - GST is applied whenever any business exceeds 40 Lakhs per annum for Normal Category of States & 20 Lacs per annum for Special Category of States

Why choose us as your GST advisory service partners?

• We assist the businesses in anticipating the policy changes and analyzing and assessing their impact on the operations.
• We identify possible areas of risk exposures and convey the same to the business.
• We help businesses undertake major compliances before the arrival of the due date.
• We identify possible situations where the opportunities can be maximized, and issues can be minimized.
• We lend our support to the clients in terms of engaging or liaising with government officials. This will also aid the organizations in preparing for an audit by the government authorities

Our Role as GST advisors

1.??Classification of Goods & Services

• Classification of goods and services is the most important area for the purpose of determining of GST rate to be levied
• The rate of tax to be charged on a particular product or service depends on the HSN/SAC codes defined under the GST law.
• If we charged GST at a higher rate, it would impact business and there will be a loss of orders from customers whereas charging GST at a lower rate will lead to a demand from GST Authorities along with interest. Hence, we need to be more vigilant while classifying goods or services

2.??Designing and Implementation of SOP

• We design and implement SOPs for our clients for better GST compliances which help to have better control of their Operating Net Cash Flows.?

3.??Training to staff

• We help our clients to update their staff with training on GST areas. It involves the areas of O2C and P2P, R2R.?

4.??GST Compliance Review

We provide assistance in ensuring compliance by conducting:

• GST compliance review on a periodical basis covering all functions having an impact in GST. This could include Sales & Marketing, Procurements, Productions Project Management, Stores, Finance, Logistics etc. Such review would also be helpful for the GST annual audit which is mandatory as per GST Law for assesses with a turnover of more than Rs.5 crore in a financial year.
• Review of GST outward supplies, GST rates applicable on their product and services, exemptions claimed, fulfilment of conditions for exemption, export benefits claimed etc.
• Review of GST input tax credits claimed to assess eligibility, ineligibility, documentation for credits etc.
• Review of compliances including GST registrations obtained, payment of taxes, filing of returns, ITC disclosure & outward supplies in returns, movement of goods for job work etc.
• Review of trial balance and financial and to check the applicability of reverse charge mechanism, payments made, availing of re-credit after payment, eligibility of such credits, rate, and abatements if any claimed including documentation.

5.??GST Returns?

We offer support in GST return filing in reviewing the following aspects:

• GSTR returns whether all the tables are updated correctly i.e. outward supply, inward supply, RCM, export, debit/credit notes etc.
• Sales and purchase invoices on a sample basis.
• GST output liability
• Input tax credit and eligibility of credits on a sampling basis.
• Credit reversals with regard to ineligible ITC and exempted services.
• Computation of liability under reverse charge mechanism
• Fulfilment of conditions for exemption / concessional rate of taxes

6.??GST Refunds

There are multiple modes of claiming refunds under GST. The decision to choose a particular option depends on multiple factors. We, at HIRA Associates, have in-depth knowledge of interconnections among various indirect tax laws, understand the intricacies in different refund options, undertake cost-benefit analysis and suggest the best workable options in your peculiar case. It includes the following services:?

• Evaluating alternative modes of refund/rebates and suggesting the best option
• Designing system for generation of the necessary documentation for preparing refund claim
• Assistance in the retrieval of supporting documents
• Preparing refund claim as per statutory requirement
• Filing refund claim with department and making follow up
• Making representation in case refund claim rejected

INVERTED DUTY STRUCTURE REFUND

Inverted duty structure refund arises where tax paid on input is higher than the tax payable on the outward supply. We advise the client in the classification of goods or services under proper categories and evaluate if they are entitled to refund under inverted duty structure, support them in the computation of refund, filing of necessary documentations and follow up with the department to ensure that they get the refund.

7.??GST Annual Returns

• What is GSTR-9 Annual Return?

1. GSTR-9 is an annual return to be filed yearly by taxpayers registered under GST.
2. It consists of details regarding the outward and inward supplies made/received during the relevant financial year under different tax heads i.e. CGST, SGST & IGST and HSN codes.
3. It is a consolidation of all the monthly/quarterly returns (GSTR-1, GSTR-2A, GSTR-3B) filed in that year.?

• Who should file GSTR-9, the annual return?

1. All taxpayers/taxable persons registered under GST must file GSTR-9 whose aggregate turnover is more than 5 Crore in the financial year
2. ?The following category persons are NOT required to file GSTR 9:
3. Taxpayers opting composition scheme (They must file GSTR-9A)
4. Casual Taxable Person
5. Input service distributors
6. Non-resident taxable persons
7. Persons paying TDS under section 51 of CGST Act.

• Due Date, late fee and penalty

1. The due date of GSTR-9 is 31st December following the end of the financial year?
2. The late fee for not filing the GSTR 9 within the due date is Rs 100 per day, per act. That means late fees of Rs 100 under CGST and Rs 100 under SGST will be applicable in case of delay.
3. Thus, the total liability is Rs 200 per day of default. This is subject to a maximum of 0.5% of the taxpayer’s turnover in the relevant state or union territory.?

8.??GST Litigation Services

1. We provide litigation support services for our clients/business partners before various appellate authorities/forums. We are having diverse exposure to different practice areas and hold multi-jurisdictional qualifications to assist in the drafting of submissions/representations before the appropriate authority, extending to the personal appearances on a requirement basis.?
2. The support extends to providing litigation support services in respect of the entire gamut of Indirect Taxes broadly classifiable under the following categories:

• Goods and Service Tax
• Service Tax
• Central Excise
• Custom Duty
• Value Added Tax/Sales Tax
• Entry Tax/Octroi
• Foreign Trade Policy

For any queries about GST returns and filings for your business, mail us at prakash.patil@hiraassociates.in or call us on 9833229199.