Moving to GST: Experts share insights on issues under the new tax regime

As the Goods and Services (GST) tax regime is set to roll out from July 1, experts throw light on contractual caution points and audits and assesments under the new indirect tax. 

‘Introduce indemnity clauses with suppliers on tax compliance’
 

Sudipta Bhattacharjee

A lot has been written about various aspects of transitioning to GST, but sparse little about contractual caution points. Businesses may refer to certain key aspects in this regard and then negotiate/enter into suitable contracts, capturing the requisite amendments. 

Sudipta Bhattacharjee, partner – tax controversy management and contract documentation, Advaita Legal

‘Ensure depiction of every transaction in GST portal’

In the present indirect tax regime businesses are plagued with multiplicity of audits, frequent enquiries, prolonged duration of audits, inconclusive enquiries etc. Hopefully these issues are addressed in the GST era.
 

While multiple audits by various tax authorities become a thing of the past, there

MS Mani

are broadly two types of audits that are contemplated in GST. The audit by the tax authorities is envisaged under Section 65 of the Central GST Act and a special audit in specified cases is contemplated by Section 66. There are a few safeguards that have been inbuilt, including an audit intimation process, a timeline for completion of audit etc. 

M S Mani, senior director with Deloitte Haskins & Sells