GST & Indirect Taxation
End-to-end GST advisory and litigation support covering compliance, planning, disputes, and representation before authorities.
Overview
Since GST implementation in 2017, AMLEGALS has built one of India's most comprehensive indirect tax practices. We advise businesses across classification, valuation, input tax credit, registration, and compliance. Our litigation team represents clients before GST authorities, appellate tribunals, and High Courts. We understand that GST touches every business transaction, and our advisory integrates tax efficiency into commercial planning from the outset.
Understanding GST & Indirect Taxation
The Goods and Services Tax, implemented on July 1, 2017, represents India's most significant indirect tax reform since independence. GST replaced a complex web of central and state levies—Central Excise, Service Tax, VAT, CST, Entry Tax, and various cesses—with a unified destination-based consumption tax. This transformation fundamentally altered how businesses approach tax planning, compliance, and dispute resolution.
Seven years into GST implementation, the regime has matured but continues evolving. Annual GST collections have crossed INR 18 lakh crore, reflecting both economic growth and improved compliance. The GST Council has issued numerous clarifications, rate changes, and procedural amendments. The tribunal framework is now operational, providing dedicated adjudication for GST disputes. Businesses must stay current with this dynamic regulatory environment.
GST's impact extends across every business function. Procurement decisions must consider ITC eligibility and supplier compliance. Pricing strategies must account for GST incidence and pass-through requirements. Contract structures need appropriate tax clauses. Supply chain design affects tax efficiency through warehouse locations and distribution models. Legal advisory must integrate with commercial and operational planning.
Classification and valuation disputes constitute a significant portion of GST litigation. The shift from manufacture-based to supply-based taxation, combined with subjective HSN code determinations, creates classification uncertainties. Valuation questions arise in related party transactions, composite supplies, and discount structures. These disputes require technical understanding of products/services alongside legal expertise.
Input tax credit represents both significant value and compliance risk. ITC availability depends on proper documentation, supplier compliance, and adherence to restriction provisions. The annual reconciliation between GSTR-2A/2B, books, and returns requires systematic processes. ITC disputes constitute a major litigation category, with authorities scrutinizing credits aggressively.
Anti-profiteering provisions added another compliance dimension. While the NAA has been subsumed into CCI, businesses must still demonstrate that GST rate reductions are passed to consumers. The requirement to maintain prices or demonstrate commensurate benefit pass-through affects pricing decisions and documentation practices.
Regulatory Landscape
The GST legislative framework comprises the Constitution (101st Amendment), CGST Act, IGST Act, state GST acts, and UTGST Act. These are supplemented by Rules, Notifications, Circulars, and Advance Rulings that form the operative law. Understanding the interaction between these instruments is essential for effective GST practice.
Registration requirements are threshold-based for most taxpayers, with mandatory registration for specified categories regardless of turnover. Multi-state operations require separate registrations in each state. Input Service Distributor registration enables centralized procurement entities to distribute credits. Composition scheme offers simplified compliance for smaller taxpayers meeting eligibility criteria.
The return filing framework has evolved through multiple iterations. The current system requires GSTR-1 (outward supplies), GSTR-3B (summary return with tax payment), and annual return (GSTR-9). The Invoice Management System and supplier return data drive auto-population of purchase details. Discrepancies between reported and auto-populated data create compliance and ITC challenges.
Time of supply provisions determine when tax liability arises. Different rules apply for goods and services, with modifications for advance payments, continuous supplies, and reverse charge scenarios. Time of supply directly impacts cash flow through tax payment timing and ITC availability for recipients.
Place of supply rules determine whether IGST or CGST/SGST applies and which state receives the revenue. These rules differ for goods and services, with special provisions for exports, imports, and specified services like immovable property-related services. Place of supply errors can result in tax paid to wrong jurisdiction, creating recovery and credit complications.
The e-invoicing mandate applies to businesses exceeding specified turnover thresholds. E-invoices reported to Invoice Registration Portal generate IRN and QR code that must appear on invoices. E-invoicing data auto-populates returns, reducing compliance burden but requiring system modifications and process changes.
Key Practice Areas
GST Advisory & Planning
Classification optimization, valuation structuring, supply chain tax efficiency, and transaction-specific GST planning. Advisory on exemptions, abatements, and composition schemes.
Input Tax Credit
ITC optimization strategies, blocked credit analysis, input service distributor mechanisms, and credit reconciliation. Resolution of ITC disputes and mismatch notices.
Legal Opinion
Highly research-driven legal opinions on complex GST issues including classification disputes, ITC eligibility, place of supply determinations, and transaction structuring. Authoritative guidance backed by statutory analysis and judicial precedents.
GST Litigation
Representation before proper officers, appellate authorities, appellate tribunals, and High Courts. Show cause notice responses, assessment challenges, and recovery proceedings.
Anti-Profiteering
Advisory and representation in anti-profiteering matters before NAA successor authority. Compliance structuring for price reductions and benefit pass-through.
TCL Framework Application
Technical
Understanding client's business processes, supply chain, and commercial arrangements to identify tax-efficient structuring opportunities.
Commercial
Quantifying tax savings, managing cash flow through credit optimization, and ensuring pricing strategies accommodate GST implications.
Legal
Ensuring compliance with GST law, defending positions before authorities, and protecting client interests through litigation when required.
Regulatory Framework
Industries Served
Our Approach
AMLEGALS approaches GST advisory through its TCL Framework, beginning with technical understanding of client operations before addressing tax implications. We map supply chains, analyze transaction flows, and understand commercial arrangements before recommending tax-efficient structures.
For new GST issues, we conduct comprehensive analysis of applicable provisions, relevant rulings, and position papers. Our opinions clearly articulate the legal position, risk assessment, and alternative approaches. Where law is unsettled, we present multiple scenarios with probability assessments.
Compliance support follows systematic processes. We establish compliance calendars, review working papers, and ensure consistency between financial records and GST returns. Reconciliation processes catch discrepancies before they become enforcement issues. Pre-audit preparation minimizes adverse findings.
For disputes, we begin with comprehensive review of show cause notices, assessment orders, or demand communications. Response preparation involves marshaling facts, identifying legal arguments, gathering documentation, and presenting positions effectively. We manage representations before proper officers, appeals before appellate authorities, and proceedings before tribunals and courts.
Audit defense requires preparation before audit commencement. We assist with data preparation, document organization, and response protocols. During audits, we manage communication with authorities, address queries appropriately, and document proceedings. Post-audit, we evaluate findings and recommend appropriate responses.
Practical Guidance
ITC management requires systematic processes, not periodic reconciliation. Monthly reconciliation of GSTR-2B with purchase records identifies discrepancies early. Communication with non-compliant suppliers before return filing deadlines enables corrective action. Documentation of blocked credit items prevents inadvertent claims.
Classification should be determined at product/service introduction, not when disputes arise. Obtaining advance rulings for novel classifications provides certainty. Maintaining technical documentation supporting classification positions strengthens defense in disputes. Consistent classification across returns, invoices, and internal records prevents adverse inferences.
Contract review should address GST explicitly. Supply characterization (goods, services, composite, mixed), place of supply, time of supply, and ITC eligibility should be evaluated for major contracts. Tax gross-up clauses, GST adjustment mechanisms, and documentation requirements need clear drafting.
E-invoicing compliance requires system integration and process controls. Timely IRN generation before dispatch, error handling procedures, and cancellation protocols need established processes. QR code verification for received invoices ensures ITC eligibility.
Annual reconciliation deserves dedicated attention. GSTR-9 reconciliation with audited financials identifies discrepancies requiring assessment. Comparative analysis of ITC claimed, ITC eligible, and ITC appearing in GSTR-2B highlights exposure areas. Proactive correction through amendments or reversals may be preferable to audit-driven adjustments.
Frequently Asked Questions
What is the time limit for claiming input tax credit?
ITC must be claimed by the due date of filing return for September following the end of the financial year or the date of filing annual return, whichever is earlier. For FY 2024-25, ITC must be claimed by September 30, 2025 return or annual return date. Time-barred credits cannot be claimed subsequently.
How are GST classification disputes resolved?
Classification disputes are resolved through advance ruling applications, show cause proceedings, or litigation. The HSN code determines applicable rate. Disputes typically arise from competing classifications for composite products, works contracts, or novel services. Authority rulings, tribunal decisions, and High Court precedents guide classification.
What is the GST impact on cross-border transactions?
Exports are zero-rated with refund of input taxes. Imports attract IGST at the time of clearance, creditable against output liability. Services to foreign recipients may qualify as export of services if consideration is received in convertible foreign exchange and recipient is located outside India.
What is the difference between CGST, SGST, and IGST?
CGST (Central GST) and SGST (State GST) apply to intra-state supplies with revenue shared between center and states. IGST (Integrated GST) applies to inter-state supplies and imports, with subsequent settlement between states. The tax rate remains same but split depends on transaction nature.
When is GST registration mandatory?
Registration is mandatory when aggregate turnover exceeds INR 40 lakhs (INR 20 lakhs for special category states) for goods, or INR 20 lakhs (INR 10 lakhs for special states) for services. Certain categories require mandatory registration regardless of turnover, including inter-state suppliers, e-commerce operators, and casual taxable persons.
How do reverse charge provisions work under GST?
Under reverse charge mechanism, the recipient pays GST instead of supplier. This applies to specified goods/services (Section 9(3)), supplies from unregistered persons in certain cases (Section 9(4)), and e-commerce supplies. The recipient can claim ITC on reverse charge GST paid, subject to eligibility conditions.
What are the consequences of GST non-compliance?
Non-compliance attracts interest (18% per annum), late fees (up to INR 10,000 per return), and penalties (up to 100% of tax or INR 10,000). Serious offenses like fake invoicing can attract criminal prosecution. Registration can be cancelled for persistent non-compliance.
How should businesses handle GST audits?
Prepare comprehensive documentation including returns, invoices, e-way bills, ITC reconciliation, and trial balance matching. Address discrepancies proactively before audit. Engage professionals for audit representation. Respond to queries within prescribed timelines and maintain documentation of audit proceedings.
What is the e-invoicing requirement under GST?
E-invoicing is mandatory for businesses exceeding specified turnover thresholds (currently INR 5 crore). B2B invoices must be reported to Invoice Registration Portal to obtain IRN and QR code. E-invoicing ensures real-time reporting and auto-population in GST returns. Non-compliance invalidates the invoice for ITC purposes.
How are works contracts taxed under GST?
Works contracts are treated as composite supplies of services. For immovable property, GST rates vary based on nature (construction, repair, renovation) and property type. Works contracts for goods are taxable at applicable goods rates. ITC restrictions apply for works contracts on immovable property.
What is the procedure for GST refunds?
Refunds are claimed through form RFD-01 on GST portal for export refunds, inverted duty structure, excess payment, or other specified grounds. Documentary evidence and declarations are required. Processing timelines are 60 days for exports (90% provisional within 7 days) and 60 days for others. Deficiency memos must be addressed within prescribed periods.
Why AMLEGALS
AMLEGALS has been at the forefront of GST practice since before implementation, advising clients on transition planning and continuing through seven years of the new regime. Our team combines deep technical knowledge with practical experience across industries and transaction types.
Our Ahmedabad base places us in a major commercial center with significant manufacturing, trading, and service sector activity. We understand the practical challenges faced by businesses in diverse sectors—from textile traders to pharmaceutical manufacturers to technology service providers.
Our litigation experience spans the full spectrum of GST disputes. We have represented clients before proper officers, appellate authorities, advance ruling authorities, and High Courts. This experience informs our advisory practice, enabling us to structure positions that will withstand scrutiny.
The TCL Framework ensures our GST advice integrates with commercial realities. We don't provide tax opinions in isolation but consider operational implications, commercial relationships, and practical implementation challenges.
On This Page
Related Services
GST & Indirect Taxation Advisory
Connect with our gst practice team to discuss your requirements.