Overview

GST, or Goods and Services Tax, is an indirect tax that has replaced various indirect taxes in India, such as VAT, excise duty, service tax, etc. The Goods and Service Tax Act was passed in the Parliament on March 29, 2017, and came into effect on July 1, 2017.

In essence, Goods and Service Tax (GST) is levied on the supply of labor and goods. The GST Law in India is a comprehensive, multi-stage, destination-based tax imposed on each value addition. It serves as a unified domestic indirect tax law for the entire nation.

Objectives of GST:

• - Achieve the Ideology of ‘One Nation, One Tax’: Unify and streamline the taxation system across the nation.
• - Subsume a Majority of the Indirect Taxes in India: Bring together various indirect taxes under a single umbrella.
• - Eliminate the Cascading Effect of Taxes: Remove the taxation on taxation, ensuring a more efficient tax structure.
• - Curb Tax Evasion: Implement measures to reduce tax evasion and enhance compliance.
• - Increase the Taxpayer Base: Encourage more businesses to be part of the formal economy through simplified online procedures.
• - Online Procedures for Ease of Doing Business: Facilitate smoother and more accessible business operations through digital processes.
• - Improved Logistics and Distribution System: Enhance the efficiency of the supply chain by reducing tax-related complexities.
• - Promote Competitive Pricing and Increase Consumption: Create a tax structure that fosters competitive pricing, potentially leading to increased consumption and economic growth.

GST Audit:

As per the legal requirements of the GST Act, every seller with an annual turnover exceeding 2 crore undergoes an audit conducted by a Chartered Accountant. The GST Audit Report is then filed with the authorities using GSTR Form 9C.

At MVM Advisors, we assist you in navigating through all GST filings and compliances, ensuring a seamless and compliant process.