Goods & Services Tax

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The Indirect tax scenario in India is evolving with added complexities and multi-layered levies. With the introduction of one of the most significant tax reforms in India – GST, smooth transition to embrace this reform requires a holistic, well-thought approach. India being a federal country, have adopted dual GST with a four rate structure to meet the interests of various states. Given that the government is extremely proactive in addressing the transition challenges faced by trade and industry, a number of exemptions and concessions find place in the evolving GST system. 

Historically, India divided the power to tax various transactions between the Union and the States. This was especially true about indirect taxes such as excise, services tax, sales tax and value added tax. This resulted in different taxes being applied by the Central and State tax departments on sales and services transactions.

The taxes were not deductible against each other and varied in rates of tax, compliance requirements and assessment procedures. Apart from double taxation, the system created several artificialities within business to ensure tax efficiencies.

These taxes were replaced by a uniform Goods and Services Tax (GST) regime in July 2017. Though the regime implemented by India is complicated compared to regimes in other countries (Union and the States both tax the transaction but in the same manner), it has ensured most transactions are tax neutral and has allowed most companies to focus on their business rather than tax efficiency models.

However, being a new regime, there are several outstanding issues that needs redressals such as transition procedures, intangibles, anti-profiteering, backward area exemptions & incentives, classification, refunds, input credits, tripartite contracts, transaction in securities, loyalty programs, trade promotion schemes, subvention income, securitisation, and other issues.  

The GST team at the firm provides comprehensive services in this area. These include providing services relating to: