What is indirect tax services?
What Are Indirect Tax Services in India?
Indirect tax services refer to professional advisory and compliance solutions offered by tax experts, consultants, or firms to help businesses manage taxes that are not directly paid by consumers to the government but are instead collected by intermediaries (like sellers or service providers) and paid on their behalf.
Key Features of Indirect Taxes in India:
- Collected by one person (e.g., seller) but borne by another (e.g., consumer)
- Applied on goods and services (not on income or profits)
- Paid at multiple stages — manufacturing, distribution, or sale
Main Types of Indirect Taxes in India:
Goods and Services Tax (GST) – Unified tax structure covering:
CGST (Central GST)
SGST (State GST)
IGST (Integrated GST for inter-state transactions)
Customs Duty – Tax on import and export of goods
Excise Duty – Levied on manufacturing of goods (now mostly merged into GST except for specific products like liquor, tobacco, and petroleum)
Stamp Duty – Tax on legal documents (property transactions, agreements)
What Do Indirect Tax Services Include?
GST Registration & Compliance
Obtaining GSTIN
Filing monthly/quarterly/annual returns (GSTR-1, GSTR-3B, GSTR-9, etc.)
Advisory Services
Structuring transactions for tax efficiency
Classification of goods/services
Place and time of supply analysis
Tax Planning & Optimization
Input Tax Credit (ITC) planning
Managing reverse charge mechanism (RCM)
Minimizing tax liability legally
Representation & Litigation Support
Handling tax audits and assessments
Responding to GST notices and inquiries
Representation before appellate and judicial authorities
Customs & Import-Export Advisory
Assistance in valuation, classification, and duty calculation
Managing import-export documentation and clearance
Compliance Health Check & Audit
Reviewing internal compliance systems
Conducting GST health checks to ensure accuracy and avoid penalties
Training and Updates
Training for in-house finance and tax teams
Sharing regular updates on changes in tax laws and notifications
