Indirect taxes is a type of tax which is collected and paid by the parties involved in the supply chain process of goods and services. While consumer takes the burden of the tax but the responsibility of collection and payment of taxes rests with supplier of goods and services. Various types of indirect taxes include VAT, Excise, Customs, Goods and Services Tax.
Indirect taxes are defined by contrasting them with direct taxes. Indirect taxes can be defined as taxation on an individual or entity, which is ultimately paid for by another person. The body that collects the tax will then remit it to the government. But in the case of direct taxes, the person immediately paying the tax is the person that the government is seeking to tax.
The most common example of an indirect tax is import duties. The duty is paid by the importer of a good at the time it enters the country. If the importer goes on to resell the good to a consumer, the cost of the duty, in effect, is hidden in the price that the consumer pays. The consumer is likely to be unaware of this, but he will nonetheless be indirectly paying the import duty.
What is GST in India?
GST is known as the Goods and Services Tax. It is an indirect tax which has replaced many indirect taxes in India such as the excise duty, VAT, services tax, etc. The Goods and Service Tax Act was passed in the Parliament on 29th March 2017 and came into effect on 1st July 2017.
In other words,Goods and Service Tax (GST) is levied on the supply of goods and services. Goods and Services Tax Law in India is a comprehensive, multi-stage, destination-based tax that is levied on every value addition. GST is a single domestic indirect tax law for the entire country.
Objectives Of GST
- To achieve the ideology of ‘One Nation, One Tax’
- To subsume a majority of the indirect taxes in India
- To eliminate the cascading effect of taxes
- To curb tax evasion
- To increase the taxpayer base
- Online procedures for ease of doing business
- An improved logistics and distribution system
- To promote competitive pricing and increase consumption
What are the components of GST?
There are three taxes applicable under this system: CGST, SGST & IGST.
CGST: It is the tax collected by the Central Government on an intra-state sale (e.g., a transaction happening within Karnataka)
SGST: It is the tax collected by the state government on an intra-state sale (e.g., a transaction happening within Karnataka)
IGST: It is a tax collected by the Central Government for an inter-state sale (e.g., Karnataka to Tamil Nadu)
Our team has expertise in providing the below services.
- GST Advisory services including mail replies, on-call advisory and legal opinions
- GST monthly/quarterly return filing and validation with books
- Tax planning in Indirect taxation
- Periodic compliance checks and reviews
- GST Refunds on account of zero-rated supplies, inverted duty structure and others
- GST Annual Returns and reconciliations with books – Form GSTR-9 and 9c
- Composition dealer compliances
- Job work compliances – support in documentation and return filing
- Input Tax Credit validation and Optimisation
- Support in replies to notices, departmental queries and litigation
- GST new registrations, amendments, cancellation and revocation of cancellation services
- Designing and implementation of internal controls and SOPs for Indirect taxes
- Representation before forums and legal support
- Training to accounts and taxation teams at the organizations for quality enhancement
- Advisory and compliance support with respect to Customs and Foreign Trade Policy matters