>GST is an indirect tax levied on most goods and services sold for domestic consumption. Proper management of GST is crucial for cash flow and legal compliance.

1. GST Compliance (The Mandatory Requirements)

GST Compliance is a strict, ongoing requirement focused on accurate reporting and payment to avoid penalties.

• Purpose: To ensure timely and correct filing of all mandated returns and deposits of collected tax.

• Key Obligations:

  • Registration: Timely registration under GST once the threshold turnover limit is crossed.

  • Invoicing: Issuing GST-compliant invoices (Tax Invoice, Bill of Supply) with all required details (HSN/SAC codes, GSTINs).

  • Return Filing: Filing various monthly/quarterly returns accurately (e.g., GSTR-1 for outward supplies, GSTR-3B for summary returns).

  • Annual Returns & Audit: Filing the Annual Return (GSTR-9/9C) and undergoing GST Audit when applicable.

  • E-Invoicing/E-Way Bill: Ensuring adherence to electronic invoicing and e-way bill generation requirements based on turnover.

2. GST Planning (The Strategic Advantage)

GST Planning focuses on optimizing business operations and structure to maximize efficiency, manage cash flow, and ensure the business pays the minimum legal tax.

• Purpose: To leverage the GST framework to improve profitability and streamline supply chain logistics.

• Key Strategies:

  • Input Tax Credit (ITC) Optimization: Maximizing the utilization of eligible ITC and ensuring timely reconciliation with GSTR-2A/2B to prevent blockages or non-availment.

  • Supply Valuation: Strategically valuing supplies between related parties or those covered under Schedule I to minimize tax disputes.

  • Location Strategy: Advising on the optimal location for warehouses or service centres to reduce the overall tax incidence and simplify compliance.

  • Cash Flow Management: Optimizing the timing of tax payments and refunds to ensure better working capital management.

  • Classification: Ensuring correct HSN/SAC codes are used to apply the lowest possible tax rate legally applicable to products or services.