Goods and Service Tax is an indirect tax which was launched on 1st July 2017, subsuming several taxes and levies such as central excise duty, services tax, additional customs duty, surcharges, state-level value added tax and Octroi. Until the introduction of GST, the indirect tax system in India was highly fragmented. There were multiplicity of taxes, laws and procedures. The imposition of tax on tax was a grave problem. There was no continuity in the flow of Input Tax Credit. All of this led to the introduction of “One Nation – One Tax “ i.e GST. GST is levied on all transactions such as sale, transfer, purchase, barter, lease, or import of goods and/or services. India has adopted dual GST model, meaning both the Centre and State Government administer the GST regime.
This law was introduced much earlier than the organizations expected and is still new. There have been amendments every other day. Whilst there is increase in transparency and ease of administrative paperwork, the GST System has also increased compliance requirements, regulations and the need for technology adoption.
At BCL India, we have a team of experts specialized in Indirect tax, to assist you with the registration, compliance, GST refunds and departmental audit, all under one roof.
To ensure tax compliance, identification of tax payer is a must. Registration under the Act is a mandatory requirement. It is through registration the business entity obtains a 15 digit unique number referred to as GSTIN. The first 2 digits of the GSTIN is the State code, next 10 digits are the PAN of the legal entity, the next two digits are for entity code, and the last digit is check sum number. A certificate of registration is also made available to the applicant on the GSTN common portal.
Businesses registered under GST must adhere to invoicing compliance as per the GST law. The registered supplier is required to produce a tax invoice with every sale of goods or services. Tax invoice is the primary document evidencing the supply and vital for availing input tax credit.
Under GST, a regular taxpayer needs to furnish monthly returns and one annual return. GST return is a document that will contain all the details of your sales, purchases, tax collected on sales (output tax) and tax paid on purchases (input tax) and is required to be filed on the GST portal.
Our team at BCL India have a stronger experience and ability to communicate and liaise with authorities in times of special requirements. We represent you to the boards and act as an intermediate while you focus on your business and its growth.
GST is a consumption-based tax, thus, taxes are paid to the state where the goods or services are consumed and not to the state in which they are produced. The taxes collected are CGST, SGST and IGST. To understand the incidence of these taxes one should know about the concept of supply, place, value and time of supply. CGST stands for Central Goods and Service Tax, SGST stands for State Goods and Service Tax and IGST stands for Integrated Goods and Service Tax. CGST and SGST are levied on intra state supply of goods and services whilst IGST is levied on interstate supply of goods and services.
Supply of goods or services where the location of the supplier and the place of supply of goods or services are in the same State or same Union territory shall be treated as intra-State supply. Whereas inter state supply refers to supply of goods or services, where the location of the supplier and the place of supply are in two different States or two different Union territories or a State and a Union territory. Import of services and goods are also considered as Inter state supply.
GST Audit is a legal procedure carried out by the Commissioner or the officer authorized by him to verify the details of the ‘records’ and the ‘books of account’ of the registered person. The procedure is carried out to ensure that the turnover declared, taxes paid, refunds claimed, and input tax credits claimed are valid. It also checks the compliance with GST Regulations.
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