INDIRECT TAXATION

Indirect Taxation refers to the tax levied on the supply of goods and services, rather than directly on income or profits. These taxes are collected by intermediaries (sellers/service providers) from the end consumer and are subsequently remitted to the Government. Unlike direct taxes, the burden of indirect taxes is passed on to the ultimate consumer, hence the term “indirect.”

Indirect taxes in India are governed by both Central and State Government authorities, and apply uniformly across all sectors of the economy.

Key Types of Indirect Taxes Applicable in India

Although many legacy taxes have been subsumed under the Goods and Services Tax (GST), several indirect taxes continue to apply depending on the nature of the transaction:

The most prominent and widely applicable indirect tax, GST was introduced on 1st July 2017, replacing a range of earlier indirect taxes like VAT, Service Tax, Excise Duty, etc.

  • Administered under: CGST Act, SGST Act, IGST Act, UTGST Act
  • Applies to: Supply of goods and services, both inter-state and intra-state
  • Requires regular: Registration, Return Filing, Input Tax Credit Reconciliation, and Compliance Management
  • Key Forms: GSTR-1, GSTR-3B, GSTR-9, GSTR-9C

Levied on goods imported into or exported from India.

  • Governed by: Customs Act, 1962 and Customs Tariff Act, 1975
  • Includes: Basic Customs Duty (BCD), IGST on Imports, Anti-Dumping Duty, Safeguard Duty, etc.
  • Requires compliance with: Bill of Entry, Shipping Bill, and Customs Valuation Rules

Although largely replaced by GST, VAT is still levied by states on:

  • Petroleum products
  • Alcoholic liquor for human consumption

Each state has its own VAT laws and rates applicable to these products.

Levied on the purchase and sale of securities listed on recognized stock exchanges in India.

  • Governed by: Finance (No. 2) Act, 2004
  • Collected by: Stock exchanges and deposited with the Central Government
  • Applies to: Equity shares, derivatives, equity-oriented mutual funds

A state-level indirect tax levied on legal documents, agreements, and financial instruments.

  • Governed by: Indian Stamp Act, 1899 (amended) and state-specific stamp duty laws
  • Applies to: Sale deeds, lease agreements, share transfers, debentures, etc.
  • Now also applicable on electronic stock transactions via depositories

Our Areas of Practice – Indirect Taxation Services

Our firm provides a full suite of Indirect Tax services, ensuring legal compliance, timely filing, and strategic advisory to reduce tax exposure and optimize business operations. We support businesses from registration to litigation support across all indirect tax verticals.

  • Assistance in obtaining GST Registration, Import Export Code (IEC), Professional Tax, etc.
  • Modifications, cancellations, and migration from old regimes (e.g., VAT to GST)
  • Tracking jurisdiction, HSN/SAC classifications, and registration thresholds
  • Preparation and timely filing of:
    • GST Returns (GSTR-1, GSTR-3B, GSTR-9, GSTR-9C)
    • TDS under GST, e-way bills, and e-invoicing compliance
  • Filing of Customs documentation and reports
  • State-specific VAT/Excise returns where still applicable
  • Guidance on:
    • Tax classification of goods/services
    • Place of supply and time of supply analysis
    • ITC eligibility and reversals
    • GST implications in mergers, demergers, and business restructuring
  • Support in responding to show-cause notices and departmental queries
  • Advisory on SEZ/EOU compliance, exemptions, and export-import incentives
  • Conducting internal GST audits for error detection and risk mitigation
  • Representation during:
    • GST departmental audits
    • Customs assessments
    • Anti-evasion investigations
  • Review of compliance with input-output reconciliation, HSN codes, and reverse charge applicability