With GST 2.0’s rate rationalisation largely complete, the GST Council is now turning its attention to a far more complex, but equally significant issue that has quietly strained the finances of businesses across India — the accumulation of Input Tax Credit (ITC) under the Inverted Duty Structure (IDS). As the Council prepares for its 57th meeting, expected in late July or August, government sources indicate…
With the financial year now concluded and the annual audit season underway, businesses are primarily focused on finalising their financial statements and completing the statutory audit. Alongside the financial audit, this is also the ideal time to undertake a comprehensive review of GST compliance to ensure that all GST-related matters pertaining to the previous financial year are appropriately addressed before the statutory deadlines expire. The…
With the introduction of GST 2.0 and rate rationalisation, many businesses are encountering a new and unexpected challenge. While GST rates on finished goods were reduced to improve affordability for consumers, GST on inputs and services has largely remained unchanged. This mismatch has resulted in a growing accumulation of Input Tax Credit (ITC), particularly for businesses operating at GST rates of 5% or lower. For…
Capital goods under GST refer to assets such as machinery, equipment, or vehicles that are used or intended to be used in the course or furtherance of business and that provide economic benefits over a period of more than one year. These assets are in the nature of long-term investments that contribute to income generation and are not consumed immediately in the normal course of…
GST in India is steadily moving toward a system-driven, automated compliance environment, where returns will be generated automatically and taxpayers will mainly review and confirm data instead of preparing or editing returns. In this evolving ecosystem, the accuracy and quality of the data you submit today will determine how seamless your GST compliance becomes tomorrow. 1. Automated Returns and the Direction GST Is Headed The…
