GST, one of the largest and the most impactful of tax reforms in the country, was introduced in July 2017.
GST subsumes most of the existing Indirect taxes levied by the Centre and States (including the State VAT Laws) and mitigates (though does not completely eradicate) the cascading effect of taxes.
Given the magnitude of the change, the GST Law is far from being settled. The Government has also been pro-active in coming up with frequent clarifications and amendments in law, procedures, tax rates and so on, to soothe the nerves of the industry. This entirely new regulatory framework along with frequent amendments / clarifications also gives rise to interpretation issues, which may be perhaps conflicting at times. Businesses need to stay abreast and constantly evaluate the risks and review its positions, so that it does not have to brace itself for any hidden surprises in the long run. Any lapse or even an error of judgement in recovering tax at the transaction stage could lead to materially adverse commercial implications later on.
Another important aspect associated with GST is the thrust of the Government on technology, which is imperative for meeting with all regulatory requirements. Large businesses need to automate all its work flow processes, including invoicing, vendor management, tax computations and tax filings, in order to ensure accurate and timely reporting with the authorities.
We have developed in-house capabilities in the field of Indirect Taxes, which constitutes the largest tax outflow for most business entities. As tax automation is critical for large businesses, CNK works closely with GSPs/other technology service providers to provide an end-to-end service offering to its clients on GST.
Our range of services in this area includes: