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Overview - Goods And Services Tax

Lex N Tax Associates is one of the best goods and service tax consultants in Delhi. Our team at the firm delivers comprehensive services in the area of GST. These include providing services related to GST registrations in Delhi and GST return filings, GST assessments, GST Advisory and Tax Compliances, Due Diligence and litigation services. In litigation, our team represents before Tax Authorities on behalf of clients. Our team has a rich experience in representing clients both in the previous indirect tax regime and new GST regime.



Good and Services Tax

Amidst economic crisis across the globe, India has feigned a signal of strength with aggressive growth targets, supported by a bunch of strategic moves like Digital India and Make in India initiatives. Bringing the Best Goods and Service Tax in Delhi into picture is another such move that is expected to give the much-needed momentum for economic growth in India by transforming the existing indirect taxation towards the seamless flow of export of service under GST.

GST is introduced to eliminate the cascading effect of taxes. India can play an essential role in the world economy in the years to come. The expectation with GST reforms is very high not only within the country but also within neighboring countries and developed economies of the world.

GST is a consolidation of a myriad of different indirect taxes levied by the Centre and state government into a universal tax. The GST has eradicated the complexities involved with charging various taxes. GST came into existence from 1st July 2017 with the objective of “One Nation One Tax” which needs businesses to file monthly quarterly and annual returns. The registered persons with a yearly turnover of more than two crores are also required to file an audit report.

If you are looking for a GST Refund Consultant in Delhi, Lex N Tax Associates specializes in assisting businesses with claiming refunds on Goods and Services Tax (GST). 
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GST Compliance Services

From July 1, 2017, all businesses in India are required to comply with the Goods and Services Tax (GST) regime. As part of this, businesses must ensure that they:

  • Register with the GST portal
  • File their GST returns
  • Make GST payments
  • E-invoicing for businesses with turnover in excess of INR 500 million is effective from October 1, 2020.
The government has taken several steps to ensure that businesses comply with GST. For instance, businesses are required to use a 15-digit GST Identification Number (GSTIN) on their invoices. Non-compliance with any of the above can result in stringent penalties and interest charges, as well as possible cancellation of registration.

An easy way to ensure compliance is by using automated accounting software online. With automated GST filing, businesses can quickly and easily file their GST returns without any hassle. Such a software also offers e-invoicing capabilities so that you can stay compliant with the latest regulations.

This article provides an overview of what GST is, the compliance requirements for businesses, and the various benefits that GST brings.

What is GST Compliance Services?

We at Lex N Tax Associates provides the best GST compliance services in Delhi. The GST Council has laid down rules and regulations for regular compliances by a GST registered person. These generally cover the following areas for compliance needs:

  • Maintaining Books of accounts and keeping of other relevant documents.
  • Issue of invoices.
  • Reporting of Sales and Purchases.
  • Payment of Tax Liability.
  • Filing of GST returns.
Technically, adherence to rules and regulations in the above areas is what constitutes compliance under GST. Being non-compliant, for a business can cost heavily. However, some entities are yet to adopt the right process to become GST compliant. If you are looking for a GST compliance services, Lex N Tax is the best option for your business.
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GST Consultancy Services

Our strategic Goods and Services Tax (GST) Advisory services put a strong emphasis on our clients’ entire tax performance, opening up additional options to gauge efficiency gains, establish a more strategic tax strategy, and produce notable shareholder value. Lex N Tax Associates provides a clear plan for converting the tax operations into a Tax Competency Center by benchmarking regular performance, understanding best practices about companion and historical performance, and measuring the delta between substance and potential of our client’s tax department. We offer our clients the best GST consultancy services in Delhi available.

We are aware that operating in several jurisdictions offers chances to save expenses and increase market share, but that doing business abroad is time-consuming and expensive due to the intricate rules. We have strong ties to our foreign affiliates overseas and are members of reputable international alliances. Our foreign affiliates have the technical know-how to guide you through the confusing web of national and international tax rules, including the Goods and Services Tax in Delhi.



Being the best GST consultancy online in Delhi, we support our customers in the design and implementation of technologies and procedures that enhance the efficacy and efficiency of their tax operations. In order to structure transactions, restructure businesses, and take alternative filing positions, we evaluate tax problems and create strategic plans. Additionally, we guarantee that any actions our customers take will benefit the overarching strategic goals of their respective organizations.

We provide GST Advisory services to meet the various and regular needs of our clients. Our team of highly skilled GST consulting services provides GST tax advisory services in a very effective way and guarantees that all of your business’s GST-related tax filing and advisory needs are swiftly satisfied. We help you identify potential long-term contract modifications, perform tax-code mapping for every transaction, and assess the current levels of GST tax compliance.

The introduction of the Goods and Services Tax on July 1, 2017, resulted in the consolidation of many indirect taxes, including the VAT, central sales tax, service tax, excise duty, countervailing duty (CVD), and octroi duty. Regarding tax rates, the total incidence of tax, input tax credits, distribution of tax, estimating costs, and setting pricing for products and services, GST will have an impact on every firm.
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GST Audit

Whether you have a best GST Audit services in Delhi  requirement or a GST return, we offer a wide range of exclusive services. We will help you organize, analyze, and manage your financial documents with quality.

GST – Goods and Services Tax is one tax system to subsume all other taxes. To bring one nation, one Tax into work, the government of India Launched GST. To ensure GST is paid and the refund is claimed by the right person, GST laws came into the picture. GST Audit is a subject under GST that requires individual taxpayers and businesses to Audit their financial documents.

The audit is a procedure to analyze financial records, documents, and other financial data to file taxes and returns. The main aim of performing a GST Audit is to ensure the accuracy of taxes charged, turnover reported, and input tax credit used. To ensure accuracy of rebate received, and to determine the requirements of GST law. Professionals like Chartered accountants, cost accountants, and lawyers can help you comply with GST laws.

Whether you’re an individual or a business, the accuracy of GST Audit Services in Delhi can be offered by experts.



GST Audit Limit FY 2022-23

For any business and individual payment of taxes and filing of returns within the due date to avoid any penalty. There are certain limits for GST audit Services in Delhi.

As per the recent changes in the budget proposal, GST AUDIT(GSTR-9C) is not mandatory for professionals ( effective after Feb 01, 2021). Businesses and individuals can file GST annual return GSTR-9 with self-certification.

GSTR 9/9C Filing Requirement Matrix


TURNOVERGSTR 9GSTR 9C
Up to 2 CroreOptionalNot Applicable
2 Crore - 5 CroreMandatoryOptional
Above 5 CroreMandatoryMandatory

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GST Litigation Services

GST Litigation Services

Goods and Service tax or GST, is form of comprehensive tax system that is applied on every step of sale and purchase of any goods or service. That means from the manufacturer to the final consumer at every step the item is being purchase/ sold or any service is being offered/ availed, the seller raises its bill stipulating the cost and the GST slab or percentage that is applicable. 

Now the GST slab or the Goods and Service Tax rate on each product or service is different, it is based on the categorization or GST slab classification as provided by the government. This issue in this matter is that the interpretation of these classification, along with those ever-changing guidelines. Added to that, poor account management, improper and fraud billing, failed compliance and missing deadlines, often leads to conflict with the GST authorities.



GST Litigation

GST litigation pertains to legal conflicts and processes that emerge within the framework of the Goods and Services Tax (GST). These conflicts may involve taxpayers, tax authorities, or both parties, and generally focus on matters like tax assessments, refunds, compliance, and the interpretation of GST regulations. Such litigation can take place at different stages, beginning with assessments by GST officers and extending to appeals in tribunals and higher courts.

Why Does GST Litigation Happen?

GST litigation causes  for various reasons, mainly due to the complexities and differing interpretations of GST laws. Some frequent reasons include:

Incorrect Classification- The GST system necessitates the accurate classification of goods and services to establish the correct tax rate. Misclassification can lead to the application of an incorrect tax rate, resulting in either underpayment or overpayment of taxes.

Examples: A product may be classified under a lower tax bracket instead of a higher one, such as labelling luxury items as necessities.

Valuation Issues- Valuation disputes occur when there is disagreement regarding the taxable value of goods or services. GST is calculated based on the transaction value, which should encompass all expenses incurred during the supply process.

Examples: Disputes may arise over whether discounts, incentives, or extra costs (like shipping) should be included in the taxable value.

Tax Rate Applicability- Conflicts emerge when there is uncertainty about the appropriate GST rate for specific goods or services. Misapplication of GST rates can lead to disputes and demands for additional taxes or refunds, resulting in litigation.

Examples: Confusion may arise over whether a food item is subject to a 5% or 18% tax rate.

Rejection or Delay of Refund Claims- Taxpayers seek refunds when they have overpaid taxes or are eligible for refunds due to exports or other zero-rated supplies. Disputes can occur when these claims are rejected or delayed without sufficient justification.

Examples: A business exporting goods may experience delays in receiving refunds for input taxes paid.

Eligibility Disputes- Disagreements may arise regarding whether a taxpayer qualifies for a GST refund. These disputes often center on whether the criteria for claiming refunds have been met.

Examples: Disputes may occur over eligibility for a refund due to an inverted duty structure or unutilized input tax credit.

Input Tax Credit (ITC) Disputes

ITC Reversals- ITC claims may be reversed if the conditions for claiming them are not fulfilled, such as failing to pay suppliers within 180 days or inconsistencies in returns. Reversal of ITC can impact a business's working capital and often leads to disputes with tax authorities.

Examples: A business might face an ITC reversal if the supplier does not submit the required returns.

Disallowed ITC-  ITC claims can be disallowed for various reasons, including inadequate documentation, non-compliance with GST regulations, or discrepancies in records.

Examples: ITC claimed on purchases may be disallowed if they are later considered ineligible.

Compliance and Procedural Issues

Non-filing or Late Filing- GST law requires timely filing of returns. Non-compliance can result in penalties and interest, leading to disputes.

Examples: Businesses may incur penalties for failing to file GSTR-3B on time.

Procedural Lapses- Procedural lapses involve mistakes in invoicing, documentation, or adherence to GST rules, leading to disputes.

Examples: Incorrectly issued tax invoices or failure to maintain proper records.

Stages of GST Litigation

The GST litigation process generally consists of multiple stages, each with its own set of procedures and requirements. Familiarity with these stages is essential for effectively managing and navigating the litigation process.

1. Assessment and Adjudication

Initial Assessment: Tax authorities issue an assessment order based on the taxpayer's filed tax returns.

Show Cause Notice (SCN): If any discrepancies are identified, authorities send an SCN to the taxpayer, outlining the reasons for the proposed action.

2. First Appeal

Appeal to Appellate Authority: The taxpayer has the option to appeal against the assessment order or SCN to the Appellate Authority within a designated timeframe (typically 3 months).

Hearing and Order: The Appellate Authority holds hearings and issues a ruling based on the evidence and arguments presented.

3. Second Appeal

Appeal to Appellate Tribunal: If the taxpayer or tax authorities are not satisfied with the Appellate Authority's decision, they can appeal to the Appellate Tribunal (GSTAT) within a specified period (usually 6 months).

Hearing and Decision: The Tribunal reviews the case, conducts hearings, and delivers a decision.

4. Judicial Review

High Court: If there are significant legal questions, further appeals can be made to the High Court for judicial review, which must be filed within a specified timeframe (usually 180 days).

Supreme Court: The Supreme Court of India serves as the final level of appeal, addressing major legal questions or substantial issues of law.

5. Alternative Dispute Resolution (ADR)

Advance Rulings: Taxpayers can request advance rulings on specific matters to prevent future litigation. These rulings are binding on both the applicant and the tax authorities.

Settlement Commission: In certain situations, disputes may be resolved through the GST Settlement Commission, which aims for a quick resolution.

6. Resolution and Compliance

Implementation of Order: After a decision is reached at any stage, the taxpayer must adhere to the order, which may involve paying dues, reversing ITC, or taking other actions as instructed.

Follow-up Actions: If the order is unfavorable to the taxpayer, they may pursue further appeals or legal remedies in accordance with legal provisions.

GST LITIGATION SERVICES

The process of maintain records, and planning GST payment and claims can be very complex. Thus, it is humanly to make mistakes, therefore you must take advice of GST litigation experts. Lex N Tax Associates is a GST tax litigation firm, offering thorough assistance to resolve tax disputes and compliance challenges. Our skilled team addresses urgent GST issues, guiding businesses through controversies and safeguarding their rights. We manage various aspects of GST litigation, such as discrepancies in tax assessments, refund claims, and disputes over input tax credits. Our services encompass representing clients in GST appeals, overseeing search and seizure cases, and ensuring compliance with GST regulations in a timely manner. 

We also deal with anti-evasion cases and assist with GST notices. Our firm keeps clients updated on significant changes and developments in GST law to protect their interests. With advanced infrastructure and technology, Lex N Tax Associates provides strong representation and support. Our experts, who hold qualifications across multiple jurisdictions, prepare necessary responses, appeal documents, and offer personal representation before tax authorities. We carefully analyze each case, evaluating its strengths and weaknesses, to construct solid legal defences. Also, our comprehensive services include managing GST refund claims, ensuring they are filed promptly and in compliance with regulations. Drawing on extensive experience from the previous tax system, we effectively handle all technical aspects of GST litigation, delivering top-notch GST litigation services in Delhi to help your business operate smoothly.

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GST Refund

GST Refund

GST or Goods and services tax was introduced to streamline all different types of taxed levied in different states and variety of other taxed on different products and services. The main idea behind applying GST or Goods and Services TAX was to avoid multiplicity or cascading effects of various taxes on the same good/product or service. The government achieved this by putting the final burden of paying GST on the final customer, and giving the middle men Input credit of the Goods and Service Tax or GST refund.

GST Input Tax Credit

Input Tax Credit (ITC) is a feature of the Goods and Services Tax (GST) that enables businesses to lower their tax obligations by claiming credits for taxes paid on purchases (inputs) utilized in their operations. The ITC system ensures that tax is only levied on the value added at each level of the supply chain, preventing the compounding effect of taxes.

  • Input Service: Services that a supplier uses or plans to use in the course of their business.
  • Capital Goods: Items utilized in the production of other goods or services, intended for long-term use rather than resale.
  • Output Tax: The GST applied to the sale of goods or service

Items Not Eligible for ITC of GST

Certain items cannot be claimed for ITC under GST, including:

  • Motor Vehicles and Conveyances: Except when used for specific purposes like transporting goods or passengers.
  • Personal Use: Goods or services consumed personally.
  • Club Memberships: Fees for memberships in clubs, health, and fitness centers.
  • Goods Lost, Stolen, or Destroyed: ITC is not applicable for items that are lost, stolen, destroyed, or written off.
  • Works Contract Services: Except when used for the further supply of works contract services.

What is GST Liability?

GST liability is the tax amount a business owes to the government based on its taxable sales of goods and services. Every registered taxpayer under GST must accurately calculate their GST liability, report it in their GST returns, and make the required payments.

Components of GST Liability

GST liability consists of the following factors:

  • Output Tax: The GST collected by a business on its sales of goods and services.
  • Input Tax Credit (ITC): The credit a business can claim for the GST paid on its purchases of goods and services.
  • Net GST Liability: The difference between output tax and input tax credit, representing the actual tax owed to the government after accounting for ITC against output tax.

Understanding GST Refunds


A GST refund is issued when a business pays more tax than its GST obligation. This refund system prevents businesses from being overtaxed and helps maintain their cash flow. Common situations that lead to GST refunds include-

1. Exports of Goods and Services: Exports are zero-rated under GST, allowing exporters to claim refunds on the GST paid for inputs used in producing exported goods and services.
2. Excess Input Tax Credit (ITC): If a business's accumulated ITC exceeds its GST liability, it can request a refund for the surplus.
3. Inverted Duty Structure: This situation arises when the GST rate on inputs is higher than that on outputs, resulting in excess ITC.
4. Refund of Excess Tax Paid: Businesses can seek refunds for overpaid taxes due to clerical mistakes or miscalculations.
5. Finalization of Provisional Assessment: If the final assessment shows a lower tax liability than initially assessed, the excess tax paid can be refunded.
6. Deemed Exports: Certain supplies classified as deemed exports under GST regulations are eligible for refunds.
7. Refund Due to Assessment/Appeal: If a decision from an assessment or appeal leads to a refund, businesses can claim it under GST.

Essential Documents Needed for GST Refund


The documentation required for a GST refund varies depending on the type of claim. Common documents include:

Export Refunds: Shipping bills, invoices, Bank Realization Certificates (BRCs), and other export-related paperwork.
Excess ITC: Purchase invoices, GSTR-3B returns, and relevant ITC records.
Inverted Duty Structure: Information on input and output supplies, tax invoices, and GSTR-3B returns.
Excess Tax Paid: Evidence of overpayment, tax invoices, and relevant returns.

Types of GST Returns


Different GST returns are required to be filed by different types of taxpayers, each serving a specific purpose. Here is an overview of the key GST returns:

NAME OF FORM

PURPOSE

FREQUENCY

DUE DATE

GSTR-1

Captures details of outward supplies of goods and services.

Monthly/Quarterly subject to turnover

11th of the following month (monthly) or 13th of the month following the quarter (quarterly).

GSTR-2A

Auto-drafted details of inward supplies (purchases business makes)

Monthly

N/A

GSTR-3B

Summary return capturing details of outward supplies, ITC claimed, and tax liability.

Monthly

20th of the following month

GSTR-4

Return for composition scheme taxpayers.

Annually.

 

30th of April following the financial year

 

GSTR-6

Return for Input Service Distributors (ISDs)

Monthly.

 

13th of the following month

GSTR-7

Return for authorities deducting tax at source (TDS)

 

Monthly.

10th of the following month

GSTR-8

Return for e-commerce operators collecting tax at source (TCS)

Monthly.

 

10th of the following month.

 

 

Common Mistakes in GST Refund Filling


Applying for a GST refund can be a complicated task, and businesses frequently make errors that may result in delays or denials. Here are some typical mistakes to be aware of:

I. Incomplete Documentation- A common error is failing to provide all necessary documentation. Missing invoices, incorrect information, or insufficient supporting documents can result in the rejection of refund claims.
II. Mistakes in the Refund Application- Errors in the refund application, such as an incorrect GSTIN, wrong tax period, or miscalculated refund amount, can lead to delays and the need for resubmission.
III. Incorrect ITC Utilization Claiming a refund for Input Tax Credit (ITC) that is ineligible, or failing to align the claimed ITC with the supplier's uploaded data, often causes problems. Proper reconciliation is essential.
IV. Late Submission Delays in submitting the refund application can lead to penalties or loss of the claim. It is important to follow the deadlines set by GST regulations.
V. Neglecting Notifications and Inquiries Failing to respond quickly to notices or inquiries from GST authorities can result in delays or denials in the refund process. 

These mistakes are very naturally bound to happen and a common mana may not always know all the precautions. Moreover, while running the business there are many hassles and responsibilities to take care of, and many forms of taxation compliances to be performed. Thus, its always better to be assisted or take service of experts in filing GST and claiming its returns. 

Lex N Tax Associates offers you a battery of experts in GST, who can take all your load related to GST. At Lex N Tax Associates, we provide exceptional GST compliance services in Delhi. The GST Council has set forth rules and regulations that entities registered under GST must adhere to, from Keeping precise financial records and necessary documentation, issuing compliant invoices, accurately reporting sales and purchase to Timely payment of tax obligations and correctly filing GST returns. Adhering to these regulations is crucial for businesses operating under GST, as failure to comply can lead to hefty penalties. Despite this, many businesses find it challenging to implement the proper procedures for GST compliance. If you require professional GST compliance services, Lex N Tax Associates is the perfect partner for your business. We are a trustworthy and experienced firm offering premier GST compliance services in Delhi. Our team of dedicated experts is knowledgeable in GST laws and procedures, ready to support you with all your compliance requirements. Here are some reasons to choose us:

  • We possess extensive experience in GST compliance and can manage all your filing and reporting needs.
  • We utilize the latest technology to simplify the compliance process, ensuring a smooth experience for our clients.
  • Our services are cost-effective and can be tailored to meet your specific requirements and budget.
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