Client Industry : Information Technology
Background :
The company is a global technology group having its headquarters outside India and entities operating in India. The company is a leading provider of information technology solutions, engaged in trading of machinery including annual maintenance services. The company wants assistance in identifying potential gaps and risk to the company due to non-compliance and to evaluate possibility of cost/credit optimization within the ambit of GST regulations. Thus, client approached us for assistance in conducting GST health check for the aforementioned purpose.
Our Approach :
- Our expert team worked jointly with the management and their team to understand the system and process followed by the company for complying with GST law
- We gained brief understanding of business transactions both inward and outward supply which includes end to end transaction mapping with respect to GST rates, HSN codes, place of supply, time of supply, valuation rules, input tax credit, invoicing, taxability, reporting under returns etc
- We provide comments on the correct compliance of GST and tax position of the company with respect to various transactions of business along with changes/recommendations supported by reasoning
- We also provide various reconciliations of filed GST returns with the books of accounts to check accurate filing of details in GST returns in timely manner
- We prepared the health check report recommending the client, the various modus operandi to be followed, which will be in line with the guidelines defined by the company and in accordance with the provisions of all the indirect tax laws
Outcome/Impact :
We successfully conducted the GST health check and inform the client about the errors in GST transactions and potential risk areas which might lead to higher tax along with interest and penalties. This, in turn, helped the client to modify and correct their GST transactions, take corrective steps to strengthen the tax position and simplify their business processes.