Goods and Services Tax
The introduction of GST in 2017 was one of the most significant and complex tax reform ever set forth in the history of the country’s tax structure. The Goods and Services Tax (GST) is a value added tax levied on most goods and services sold for domestic consumption. The main objective of incorporating the GST was to eliminate tax on tax or double taxation, which cascades from the manufacturing level to the consumption level.
GST is a path breaking indirect tax reform which attempts to create common national market. GST has an exceptional impact on economic growth of the country and several other significant benefits which are as following:
- Creation of Unified Indian Market- GST has brought together a number of indirect taxes under one umbrella, simplifying taxation for services and commodity business.
- Uniformity in the compliance process- In GST, there is one common IT portal where businesses and government agencies interact which has reduced human interaction and brought transparency in the administration
- Boost to MAKE IN INDIA my making goods or services produces or provided in India competitive in the national and international market
- Elimination of cascading of taxes as the whole supply chain will get an all-inclusive input tax credit mechanism
- Regulation of Unorganized Industries- GST aims to ensure that payments and compliances are done online, and input tax credit can only be availed when the supplier accepts the amount, thus ensuring that these industries have regulation and accountability
- Higher efficiency with regards to the neutralization of taxes so that exports are globally competitive.
Dual GST Structure
Under the new regime, Centre and States simultaneously levy GST on taxable supply of goods or services or both, which takes place within a State or Union Territory. Thus, tax is imposed concurrently by the Centre and States
Destination based tax
GST is levied at a single point at the time of consumption of goods or services by the ultimate consumer. GST has brought a significant shift from origin-based taxation to a destination-based tax structure
We at VKC, deal with a vast ambit of services in the field of indirect tax enumerated as under:
- Tax structuring and planning
- Comprehensive Health Checkup/Reviews
- Litigation and Representational Services
- Audit under GST
- Refund Recovery Assistance
- Other Regulatory Assistance