Description
Goods and Services Tax (GST) is a comprehensive, multi-stage, destination-based tax that is levied on every value addition in India. It has replaced multiple indirect taxes such as VAT, service tax, and excise duty, creating a unified tax structure across the country. GST is governed by the Central Goods and Services Tax Act, 2017, along with various state GST acts, and is applicable to all businesses that exceed a specified turnover threshold.
Key Components of GST
- CGST (Central GST): Levied by the Central Government on intra-state supplies of goods and services.
- SGST (State GST): Levied by the State Government on intra-state supplies.
- IGST (Integrated GST): Levied by the Central Government on inter-state supplies and imports.
Legal Requirements under GST
- Registration: Businesses whose turnover exceeds the prescribed limit must register for GST. Failure to register can result in penalties.
- Invoicing and Record-Keeping: GST-compliant invoices must be issued for all transactions, and accurate records must be maintained for audit and compliance purposes.
- Filing of Returns: Regular filing of GST returns is mandatory. This includes monthly, quarterly, and annual returns, depending on the type of business.
- Payment of Tax: Businesses must pay GST on a regular basis, calculated based on the value of goods or services supplied.
- Input Tax Credit: Businesses can claim credit for the GST paid on purchases or inputs, which can be offset against the GST liability on sales.
Dealing with GST Notices and Disputes Businesses may receive notices from the GST authorities for various reasons, including discrepancies in returns, non-payment of tax, or non-compliance with registration requirements. Common issues include:
- Show Cause Notices: Issued for non-compliance or discrepancies that may lead to penalties.
- Audit Notices: Issued when the GST authorities decide to audit the books of a business.
- Demand Notices: Issued for recovery of unpaid GST along with interest and penalties.
Legal Remedies and Representation
- Responding to Notices: Prompt and accurate responses to GST notices are essential to avoid penalties and legal action.
- Appeals: If you disagree with a GST assessment or demand, you have the right to file an appeal before the appropriate authority.
- Litigation: In cases where disputes escalate, our experienced team can represent you in GST tribunals and courts to protect your rights.