The topic of taxation in India is huge. Let me first talk about the differences between Indian GST and domestic VAT.

The declaration form for Indian GST is different from that of domestic VAT.

The GST declaration form is divided into two parts: GST-3B and GST-1

GST-3B reflects the overall amount. The GST for the previous month is declared on the 20th of each month. According to the sales Subtract the input item from the item to calculate the amount to be paid.

GST-1 is similar to invoice information and needs to be declared before the 10th, which is different from the filing date of GST-3B.

The specific information to be filled in includes HSN code, corresponding service type, tax-included amount, tax rate, and each invoice information needs to be entered.

What benefits does such a complex declaration system bring to the Indian government?

The government can better monitor the GST status of enterprises.

Case:

A software company declared a GST-3B amount of 3W rupees

However, when declaring GST-1, it only provided invoice information of 2.5W rupees.

Through comparison, the government found that there was a difference between the company’s GST-3B and GST-1 declaration amounts

The GST-1 declared by the company every month needs to match the GST-3B declared. , and in the GST system you can automatically see whether there is a difference in the amount.

If there are differences, the tax bureau will have reason to question the authenticity and reasonableness of your taxes.

Incorrectly filled invoices can also be revised and corrected in the following month, but reasonable modifications should be limited to a few. If dozens or hundreds of invoices are modified, it will still attract the attention of the tax bureau.

Separate GST reporting in India will also have an impact on tax avoidance.

Case:

At the end of March or early April, when the boss of a company checked the financial situation, he found that this year's profit margin was too high compared with previous years.

After consulting with relevant finance and tax personnel, the boss plans to avoid taxes by purchasing invoices. Is it feasible?

It should be noted that the time point in the case is that the annual report of Indian companies is March 31, and it is very difficult to take tax avoidance actions at this time.

Because the invoices purchased at this time have probably been declared on the GST system website, and the declared invoices cannot be declared again.

If you forcibly file tax returns on the GST system at this time, after the input items are reported in GST-3B, the invoice seller's information will not be reported.

This will cause the GST of both parties to be inconsistent, and the tax bureau can easily find out that you are suspected of tax evasion or profit adjustment.

So for tax avoidance by purchasing invoices, you must make a plan in advance, including all other tax avoidance methods.

India’s reverse invoice is also different from China’s.

Reverse invoice also refers to the red letter write-off. If a reverse invoice occurs, it also needs to be reported to the GST system every month.

Different states in India have different GST.

Each state is classified as a different tax entity, so different states have different GST. When reporting, you should pay attention to the fact that all places of registration need to report GST. In practice, this is generally left to CA operations.

In addition, DSC (electronic signature of directors) is required when filing. For security reasons, it is best to control the DSC authorization in your own hands instead of entrusting it all to CA to ensure the final steps of tax filing. The power is in your own hands.

In other words, even if you entrust a CA to file tax returns, try to ensure that the final approval power is in your own hands or by a trusted financial personnel. You cannot also give the final approval power to the CA.