GOODS AND SERVICE TAX (GST)

Goods and Service Tax (GST), a destination based consumption tax, expected to be introduced in July 2017 will be one of the biggest tax reforms post-independence and will bring transformational change to the indirect taxes landscape. It will subsume a plethora of indirect taxes presently levied at the federal and state level in India. The impending GST will not only be a tax change, but also promises to be an economic reform which will change the way businesses is conducted in India. GST is intended to remove inefficiencies in the supply chain due to loss of credit and cascading effect of taxes. GST envisages a common national market for goods and services and removal of trade barriers.

GST will impact all major functions of an organization including finance and accounting, information technology, supply chain and warehousing, sales and marketing, pricing and human resources. While the impact will be all-pervasive, it will not be uniform across industries. Consequently, there is a need to pre-empt areas of organization that will be affected to ensure a smooth transition into the GST regime.

We assist our clients by conducting financial impact, process impact, advising on technology changes, creating process charts, compliances and standard operating procedures (SOP), etc.

Our service offerings:

GST impact analysis:

  • Analysing the tax implications on transactions, cashflow and inventory on "as-is" and "what if" scenarios under the proposed GST model
  • Contract review from a GST perspective
  • Providing detailed work on tax impact and recommending suggestions for tax optimization
  • Mapping of processes in detail i.e. procurements, supply, debit/credit notes and assessing whether restructuring of operations is required
  • Assistance with changes in the systems
  • Advice on transitional provisions
  • Identifying areas of concern and representing before the GST council

GST implementation:

  • Finalising the impact analysis based on the final law
  • Explaining the GST amendments to IT team for system changes/updates
  • Review the changes in the IT system based on sample data
  • Conducting awareness sessions/training for the team
  • Providing SOP for assistance in day to day functioning

Hand-holding support:

  • Hand-holding through GST transition
  • Assistance with obtaining registration
  • Post-GST assistance in computation of GST liability and input tax credit
  • Review and filing of periodical reports and returns
  • Advisory services

GST Suvidha Provider (GSP) and Application Service Provider (ASP):

Tax automation will be critical to meet regulatory requirements under GST. The high level of synchronisation that will be required between the taxpayers’ systems and the GST Network (GSTN) system can be achieved only with automation. Item-level details in invoices, along with reconciliation of sales registers, auto-populated purchase registers, and auto reversals will be key data-processing requirements under GST. Accurate data entry of key fields will therefore be very important for availment of appropriate credit. GSPs and ASPs will provide much needed support to taxpayers in the IT ecosystem for GST. ASPs will focus on taking taxpayers’ raw data on sales and purchases and converting them into the GST returns. These GST returns will then be filed via the GSP on behalf of the assessee with GSTN.

Dhruva has partnered with GSPs and ASPs to provide an end-to-end service offering to its clients on GST.