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…
Recently, thousands of taxpayers have received SMS alerts or emails informing them that their income tax refunds have been placed on hold by the Income Tax Department under its Risk Management Strategy. These communications have drawn widespread attention and concern, prompting the need to understand the intent, mechanism, and implications of such refund holds. The Risk Management Strategy (RMS) leverages data analytics, third-party information, and…
In the complex world of taxation, one element often determines whether a business or individual stays on the right side of the law: documentation. Proper recordkeeping is not just a best practice—it’s the foundation of tax compliance. Without it, even the most well-intentioned taxpayer can face audits, penalties, or missed opportunities for deductions and credits. Whether you are an individual, a small business, or a…
India’s e-commerce sector is experiencing rapid growth, driven by innovative business models like quick commerce that are transforming shopping habits. As the industry evolves, so do tax regulations, particularly under GST. Staying updated on these changes is crucial for online sellers to ensure compliance, avoid penalties, and navigate the complexities of digital taxation seamlessly. GST Essentials for E-commerce Sellers the Goods and Service Tax (GST),…
