GST Advisory Services

On 1st July 2017, Government of India has introduced the concept of Goods and Services Tax (GST). It is implemented on all business activities performed in India. GST is the largest indirect tax reform in India since independence. GST is a PAN-India single unified tax imposed on Goods and as well as services, levied only on ‘value added’ to goods and services at each stage in the economic supply chain.

GST has not only changed the tax pattern in India but is expected to impact hugely on each facet of business operations conducted in the country such as supply chain optimization, pricing of products and services, IT, accounting and tax compliance systems. GST will have its effect on tax structure, tax incidence, tax computation, tax payment, compliance, credit utilization, and reporting, moving towards a complete overhaul of the current indirect tax system.

Corpbiz has been intimately involved in providing GST Advisory Services. We work with business units and help them out in drafting policies that will have a positive impact on their operations. We provide a host of GST advisory services such as covering the impact of GST on the business of clients, examining different market scenarios of business models, legislative business level implementation assistance, transition management and undertaking key compliance.

Every person who is engaged in supply of services and whose aggregate turnover exceeds Rs. 20 lakhs in case of the States of Manipur, Mizoram, Nagaland and Tripura 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;
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;
Companies engaged in export of services are also required to complete the GST migration process and obtain a GST Registration number to be entitled to tax exemption on the export of services outside India.
In case of inter-state sales, GST Registration is mandatory irrespective of turnover.

Change in tax rates
Change in time and place of supply rules for goods or services or both
Evaluating impact on outward supplies including goods and services
Valuation mechanism under GST, including incidence on free of costs supplies, stock transfers, discounts, incidental supplies and supplies to related parties
Analysing position on availability of input tax credits – credit restrictions or additional tax credits on procurements of goods and services; and,
Basis the above parameters, assessing the Impact of GST on Company’s operations, select products and working capital.

Identifying alternate business models to ensure tax efficiencies and credit-optimisation
Evaluation of the alternate business models identified based on the tax costs involved
Identify potential risks and suggest suitable mitigating strategies, associated with the identified models and,
Define the business model / contractual scenarios after discussions with the management that could be taken up for implementation.

Ascertaining the impact of GST on the prices of products and services in view of additional tax costs / credits
Advising on the appropriate pricing mechanism to be adopted considering the additional savings / burden and the legal provisions
Advising the appropriate safeguards to be adopted and,
Representing before the Regulatory authorities constituted for Anti-profiteering.

Implementation of changes in business processes such as establishing processes for billings, devising a system for receiving advances / payments
Guidance on eligibility of specific credits that could be available under GST regime
Evaluating and updating the eligibility and transferability of existing Input tax credits
Assistance in preparation and uploading of statutory Forms for Transition of credits
Guidance in relation to the manner of recovering tax from customers
Highlighting key areas for negotiation, with vendors / customers, pertaining to the contractual arrangements
Assistance in obtaining GST registrations or migrating existing registrations and,
Preparation and updating of compliance manuals.