GST is applicable on supply of goods and services and therefore, to levy GST, supply is the determining factor. Definition of supply is very wide under GST which covers almost every aspect of the commercial transactions and some non-commercial transactions as well under the ambit of GST. Therefore, while determining taxability of a transaction to be constituting ‘supply’ under GST, one needs to carefully examine the relevant provisions under GST law.

GST is destination-based consumption tax as compared to earlier indirect tax regime (particularly tax on goods) that was origin based. Accordingly, under GST, tax accrues to the destination where goods and services actually consumed instead of the place where they originated. Therefore, determination of place where goods and services are supplied becomes important under GST. Specific provisions have been provided under GST to determine the place of supply.

Under GST, supplies are categorised as Intra-State Supplies and Inter-State supplies. Intra-State supplies are supplies undertaken within a State, i.e. supplies that originated and consumed within the same State. In Intra-State supply, a supplier is required to charge Central GST (‘CGST’) and State GST (‘SGST’). Inter-state supplies are the supplies that originated in one State but consumed in another State. In Inter-State supply, a supplier is required to charge Integrated GST (‘IGST’).

GST is based on the principle of value-added scheme where tax gets charged on each of the stages of supply chain. The supplier is allowed to recover the input tax credit (‘ITC’) of GST charged on the supplies received and can utilise or recover the same against its GST liability arising on further supply of goods and services. However, GST provisions for claiming ITC are made stringent in order to ensure that a taxpayer claims ITC only on the supplies for which tax has been actually deposited with the Government. Therefore, compliance to ITC provisions becomes important exercise under GST.

The framework introduced by GST scheme warrants carefully consideration, in-depth analysis, accurate representation and fillings, and this is where professional firms offerings GST legal services come into picture. Post introduction of GST, various law firms have developed their practise to suit GST requirements, leading to increase in GST law firm in India. GST legal services being offered by these GST law firm in India are curated to address various important aspects under GST such as registration, valuation, compliances, representation etc., these aspects are discussed in detail below.

Other important aspects under GST for consideration

Registration under GST

GST is applicable on the consideration charged towards the supply of goods and services. However, there are certain transactions that are also been covered under definition of supply when performed even without consideration for e.g., supplies undertaken between two registrations of registered person under same permanent account number (PAN) issued under the Income Tax law. Charging of GST between two registrations under common PAN is popularly termed as a cross charge.

Compliances under GST

Online compliances are in place in order to ensure efficient administration of GST. After numerous updates and amendments in the GST portal since the introduction of GST in July 2017, the online forms/ processes are in place for GST compliance.

Registered taxpayers are required to file GSTR-1 for reporting details of outward supplies and GSTR-3B for claiming ITC and payment of tax. Further, based on turnover, taxpayers are categorised as large and small taxpayers that is useful to determine the frequency of GST returns, i.e. monthly/quarterly.

There are other returns forms that are required to be filed by different categories of taxpayers for different nature of transactions under GST.

Also, a taxpayer can determine the amount of ITC that can be claimed through online forms GSTR-2A/ GSTR-2B.

Finalisation of Annual Accounts

Apart from monthly/quarterly compliances, taxpayers are required to undertake annual compliances by filing an annual return and GST reconciliation statement for the relevant financial year. Annual reconciliation of the turnover and GST liability with books of accounts vis-à-vis monthly/quarterly returns is also required to be carried out.

Further, reconciliation of ITC recorded as per books of accounts vis-à-vis ITC claimed in monthly/quarterly returns needs to be prepared.

Taxpayers may avail professional GST legal services to ensure complying with various GST provisions and protect themselves from repercussions of non-compliance.

Services offered by ReinHeads for its clients

• • Providing advisory on the requirement of obtaining or maintaining registrations across India. Obtaining GST registrations for the taxpayers on a pan-India basis
  • Reviewing GST positions to determine whether a transaction is covered under the scope of supply and the amount on which GST is required to be charged, if any. Also determining the nature of transactions i.e., Inter-State or Intra-State supply
  • Undertaking compliances on behalf of clients on a pan-India basis, i.e. filing of monthly/quarterly returns, reconciliation of ITC, preparation and filing of annual return and GST reconciliation statement etc.
  • Carrying out GST health Check – highlighting potential tax exposures, suggesting amendments to business/ operating models, processes/ systems for optimizing GST liability
  • Providing litigation support and other GST legal services, such as drafting and submitting appeals/ petitions etc., representing clients before Courts, Tribunals, Authorities before all jurisdictions