Question 1

What types of indirect tax advisory does a CA firm provide?

Accepted Answer

Advisory covers: (a) GST rate and classification opinions — HSN/SAC classification letters with statutory analysis; (b) pre-transaction structuring — supply chain, composite/mixed supply analysis, and place of supply planning; (c) ITC optimisation — mapping blocked credits, Rule 42 reversal minimisation, ISD structure; (d) customs duty planning — FTA utilisation, SVB pricing, advance ruling applications; (e) FTP benefit structuring — AA, EPCG, RoDTEP eligibility; (f) Advance Pricing Agreement and Advance Rulings.

Question 2

When is a pre-transaction indirect tax opinion critical?

Accepted Answer

Before: launching a new product or service (rate uncertainty); entering a new state (registration obligation, place of supply); making a large capital goods import (BCD, SWS, IGST implications); signing a multi-element contract (composite vs. mixed supply analysis); claiming a FTP benefit (AA, EPCG — wrong usage nullifies the licence); or an M&A transaction (ITC position, IGST on slump sale vs. itemised asset sale). After the transaction, changing the tax treatment creates amendment/reversal risks.

Question 3

How does indirect tax litigation advisory work?

Accepted Answer

Litigation advisory covers: (a) drafting reply to show cause notices under Section 73/74 CGST Act or Section 28 Customs Act; (b) representation before the Adjudicating Authority, Commissioner (Appeals), CESTAT (for pre-GST excise/service tax), and GSTAT (when operational); (c) High Court/Supreme Court — briefing counsel on indirect tax matters; (d) advance rulings at AAR/AAAR; (e) settlement commission applications (for pre-GST matters under SVLDRS). The CA prepares the factual and legal matrix; the advocate argues.

Question 4

What is the SVLDRS and is it still available?

Accepted Answer

Sabka Vishwas Legacy Dispute Resolution Scheme 2019 (SVLDRS) was a one-time settlement window for pre-GST disputes (excise, service tax, customs duties) — closed 30 June 2020. Disputes that were not settled under SVLDRS continue before CESTAT, High Courts, and the Supreme Court. For pre-GST matters (FY 2000–2017) still pending, conventional litigation is the only route. New disputes under GST law go through the Section 107/112 appeal structure and eventually GSTAT/High Court.

Question 5

What is the role of a CA in an indirect tax due diligence?

Accepted Answer

In M&A indirect tax DD: (a) review GST return filing history and GSTR-9/9C for last 3 years for material reconciliation differences; (b) check open notices (GSTN portal — notices visible to registered taxpayers); (c) verify ITC position — any Section 73/74 demand, GSTR-2B mismatch, or Section 16(4) time-barred credit taken; (d) check customs import history for SVB-related party pricing alerts, EPCG/AA export obligation status; (e) quantify contingent indirect tax liability and include in deal terms (escrow or price reduction).

Indirect Tax Advisory

Related Services

GST Registration

GST Returns Filing — GSTR-1, GSTR-3B

GST Compliance & Returns