GST Planning & Structuring Services

Plan GST Implications Before Implementation

Plan the GST implications of major business transactions before implementation.

Get structured support for GST planning, transaction structuring, business transfers, restructuring, M&A, Input Tax Credit (ITC) and business exits.

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GST ADVISORY SERVICES

GST Planning & Structuring

Evaluate the GST implications of business transactions, restructuring, mergers, acquisitions and business exits before implementation. Our advisory approach helps decision-makers understand relevant GST considerations and assess potential transaction risks.

GST Planning

GST planning involves assessing the GST impact of a proposed transaction before implementation.

Transaction-level analysis can help businesses identify potential GST liabilities, understand relevant tax considerations and evaluate how different structures may affect their GST position.

Our advisory may include:

GST impact assessment
Transaction-level GST planning
GST liability assessment
Tax-efficient transaction structuring
Identification of relevant GST considerations
Pre-transaction GST advisory

The scope of planning depends on the nature and structure of the proposed transaction.

GST Transaction Structuring

Different transaction structures may create different GST implications. GST transaction structuring involves evaluating the proposed transaction from a GST perspective before it is executed.

Our advisory may cover:

Evaluation of alternative transaction structures
GST implications of proposed transactions
Transaction-level GST assessment
Structuring considerations for GST efficiency
Pre-execution GST advisory
Identification of potential GST risks

This approach allows decision-makers to consider GST alongside the broader commercial structure of the transaction.

Business Sale & Transfer Advisory

A business sale or transfer can involve several GST considerations depending on what is being transferred and how the transaction is structured. GST advisory can help businesses assess the potential implications before completing the transaction.

The review may include:

GST on business transfer
GST on sale of business
GST implications of business sale
Transfer of business as a going concern
GST on business assets
GST on capital goods
Input Tax Credit considerations
GST compliance implications

Where a business is being transferred as part of a larger transaction, the GST implications can be assessed based on the proposed structure and relevant transaction details.

Going Concern vs. Asset Sale

A transfer of a business as a going concern is exempt from GST, subject to conditions, while an itemised sale of assets is generally taxable. Getting the structure and documentation right before signing can therefore make a significant difference to the cost of the transaction.

GST Exit Structuring

Business exits can involve significant commercial and tax considerations. GST exit structuring focuses on evaluating GST implications before a business sale, transfer or other exit transaction is implemented.

The review may cover:

GST implications of exit transactions
GST planning for business exits
Business sale and transfer structures
Potential GST liabilities
Transaction-level GST considerations
Relevant compliance implications

The objective is to help business owners and decision-makers understand the GST position associated with the proposed exit structure before execution.

GST Restructuring Advisory

Business restructuring can involve changes in ownership, operations, assets or the overall structure of a business. Such changes may require GST implications to be considered as part of the restructuring process.

Relevant areas may include:

Business restructuring
Ownership restructuring
Business succession planning
Changes in business structure
Transfer of business operations
Transfer of relevant assets
GST compliance implications

An early assessment can help identify GST considerations during the restructuring process rather than addressing them only after implementation.

Mergers & Acquisitions GST Advisory

Mergers and acquisitions can involve multiple entities, assets, business operations and transaction structures. GST considerations may therefore form an important part of transaction planning.

The review can cover GST implications associated with:

Mergers
Acquisitions
Demergers
Schemes of arrangement
Business transfers
Asset transfers
Transaction restructuring

The advisory focuses on understanding the GST implications of the proposed M&A structure and identifying relevant considerations before completion.

Asset & Share Transaction Advisory

Transactions involving business assets, capital goods or share-related structures may require separate GST considerations.

Support can include:

Sale of business assets
Transfer of business assets
Sale or transfer of capital goods
Asset-based transaction structures
Share sale structures — a transfer of shares is not a supply of goods or services under GST, which can make it a relevant alternative to an asset transfer
Comparison of transaction structures from a GST perspective

The analysis is based on the proposed transaction and the specific assets, entities and structure involved.

Input Tax Credit Planning

Input Tax Credit (ITC) can be an important consideration when businesses restructure operations or transfer business activities.

The scope may include:

ITC availability assessment
ITC transfer considerations
Input Tax Credit planning
ITC implications during restructuring
ITC considerations for business transfers
Review of potential GST credit implications

The treatment and availability of ITC can depend on the transaction structure and applicable requirements. The assessment should therefore be based on the specific circumstances of the business.

ITC Transfer During Business Reorganisation

On a sale, merger, demerger, amalgamation or transfer of business, unutilised ITC can be transferred to the transferee under Section 18(3), subject to conditions and the filing of Form GST ITC-02.

PLAN BEFORE YOU PROCEED

Need Guidance on GST Implications?

Evaluate the GST considerations associated with your proposed transaction, business transfer or restructuring before implementation.

Get a Consultation

Our GST Planning & Exit Structuring Process

A structured approach can help businesses identify GST considerations before implementing a significant transaction.

Understand the Proposed Transaction

The first step is to understand the proposed business transaction, including its commercial objective, entities involved, assets or business operations affected and proposed structure. This provides the context required for a transaction-specific GST review.

Identify GST Implications

The proposed structure is reviewed to identify relevant GST considerations. This can include potential GST liabilities, business transfer implications, asset-related GST considerations, ITC implications and compliance requirements.

Evaluate Structuring Options

Where alternative transaction structures are available, the relevant GST implications can be compared. This allows decision-makers to consider GST alongside the broader commercial objectives of the transaction.

Assess GST Liabilities and ITC Considerations

Potential GST exposure and relevant input tax credit considerations are evaluated based on the proposed transaction. This step helps identify areas that may require additional attention before implementation.

Provide Structuring Recommendations

Based on the agreed scope and transaction information, relevant GST structuring considerations and recommendations are provided. The recommendations are designed to help the business make informed decisions about the proposed transaction.

Transaction-Level Review

Before implementation, the proposed structure can be reviewed from a GST perspective to identify relevant considerations and potential risks. The exact scope of review depends on the nature and complexity of the transaction.

Our APR Filing Process

A structured process helps reduce confusion and ensures that the information required for annual reporting is reviewed systematically.

Initial Requirement
Assessment

Information &
Document Collection

Data Review &
Validation

APR
Preparation

Filing &
Documentation Support

Final Review &
Follow-Up

Initial Requirement Assessment

We understand the company's overseas investment structure and identify the relevant overseas entities, subsidiaries or joint ventures involved in the reporting process.

Information & Document Collection

Relevant investment, overseas entity and financial information is collected for review. The information required may depend on the nature and structure of the overseas investment.

Data Review & Validation

The information received is reviewed for completeness and consistency. Relevant investment and financial details are assessed before proceeding with report preparation.

APR Preparation

Based on the reviewed information, the Annual Performance Report is prepared for the applicable overseas investment reporting requirement.

Filing & Documentation Support

The applicable filing process is supported and relevant documentation is organised for the company's records.

Final Review & Follow-Up

A final review is carried out to ensure that the reporting process and supporting documentation are appropriately completed.

Who Can Benefit From GST Planning & Structuring?

GST planning and transaction structuring can be relevant to businesses preparing for significant ownership, operational or transactional changes.

Business Owners and Promoters

Business owners planning a sale, transfer, succession or exit can consider GST implications before finalising the transaction structure.

CFOs and Finance Directors

Finance leaders can use transaction-level GST analysis as part of broader financial and tax planning for major corporate transactions.

Tax Heads and Finance Teams

Tax and finance teams may require support in evaluating GST liabilities, ITC considerations and compliance implications associated with restructuring.

Investors

Investors involved in business acquisitions or restructuring can consider GST implications as part of transaction evaluation.

Companies Undertaking M&A

Companies involved in mergers, acquisitions, demergers or schemes of arrangement can evaluate GST considerations before implementing the proposed structure.

Businesses Planning Restructuring

Businesses changing ownership, transferring operations or restructuring their business model can assess GST implications before implementation.

Areas We Cover

Our APR filing support is focused on the annual reporting requirements associated with overseas investments and related compliance areas.

Key areas include:

Annual Performance Report

Preparation and reporting support for the applicable Annual Performance Report requirements.

ODI Reporting

Support for reporting requirements associated with Overseas Direct Investment activities.

FEMA Compliance

Review of relevant FEMA requirements connected with overseas investment reporting.

RBI Reporting

Support for applicable RBI reporting requirements relating to overseas investments.

RBI Compliance

Consideration of relevant RBI compliance requirements applicable to the reporting process.

Overseas Investment Reporting

Organisation and review of information relating to overseas investment reporting.

Foreign Investment Reporting

Review and reporting support for relevant foreign investment information.

Foreign Subsidiary Reporting

Reporting support relating to Indian companies holding foreign subsidiaries.

Overseas Joint Venture Reporting

Support for applicable reporting requirements relating to overseas Joint Ventures.

Wholly Owned Subsidiary Reporting

Reporting support for Indian companies with Wholly Owned Subsidiaries abroad.

Annual Compliance Reporting

Structured support for recurring annual overseas investment compliance reporting requirements.

The exact scope of support can depend on the company's overseas investment structure and applicable reporting requirements.

What You Receive

Depending on the agreed scope and nature of the transaction, the engagement may include:

GST Impact Assessment

Transaction-Level GST Analysis

Review of Proposed Transaction Structures

Identification of Potential GST Liabilities

Input Tax Credit Considerations

GST Risk Identification

GST Compliance Considerations

Transaction-Specific GST Due Diligence

Structuring Observations and Recommendations

GST Considerations for Business Sale or Transfer

GST Considerations for Restructuring and M&A Transactions

The specific deliverables and scope are determined based on the requirements of the business and the nature of the proposed transaction.

Benefits of GST Planning & Exit Structuring

Professional GST planning and exit structuring support can help businesses evaluate transaction-related GST implications and consider relevant tax and compliance factors before implementing significant business changes.

Better Transaction Planning

Considering GST before execution allows businesses to incorporate relevant GST implications into the broader transaction-planning process.

Improved Visibility of GST Exposure

A transaction-level review can help identify potential GST liabilities and areas requiring attention before implementation.

Informed Structuring Decisions

Comparing GST implications across relevant transaction structures can help decision-makers evaluate their available options.

Better ITC Planning

Reviewing input tax credit considerations during restructuring can help businesses understand potential ITC implications associated with the proposed transaction.

Reduced Avoidable GST Risks

Early identification of GST considerations can help businesses address potential issues before they become transaction-level problems.

Support for Business Exit Planning

Businesses preparing for a sale, transfer or exit can incorporate GST considerations into their overall exit strategy.

Stronger Transaction-Level Tax Governance

A documented GST review can help finance and tax teams maintain a structured approach to significant business transactions.

Why Choose V ACC-COMPLY?

GST implications can vary depending on the transaction, entities involved, assets transferred and proposed structure. A transaction therefore requires more than a generic explanation of GST rules.

V ACC-COMPLY follows a structured, transaction-focused approach to GST planning and exit structuring. Our GST advisory work is led by a team of chartered accountants and has covered going concern transfers, demergers and ITC transfers for various businesses.

Structured Methodology

The engagement begins with understanding the proposed transaction and identifying the relevant GST questions before moving into analysis.

Transaction-Focused Advisory

The assessment focuses on the specific business transaction rather than applying a generic checklist.

Risk-Oriented Approach

Potential GST liabilities, ITC considerations and compliance implications are considered as part of the transaction review.

Clear Documentation

Relevant findings and recommendations can be organised around the proposed transaction and agreed scope.

Practical Recommendations

The objective is to provide useful GST considerations that decision-makers can evaluate alongside their commercial objectives.

Scope-Based Execution

The scope of work is aligned with the nature, structure and requirements of the proposed transaction.

GST Planning and Structuring Services in Chennai and India

Businesses in Chennai and across India may require GST planning support when undertaking business sales, transfers, restructuring, mergers, acquisitions or exits.

We support businesses in Chennai, across Tamil Nadu and elsewhere in India on GST planning for sales, transfers, restructuring and M&A.

Whether the proposed transaction involves a business transfer, asset transaction, restructuring, M&A activity or business exit, the GST implications can be evaluated based on the specific transaction structure.

Discuss Your GST Planning Requirements ↗

Frequently Asked Questions

What is GST planning and structuring?

GST planning and structuring involves evaluating the GST implications of a proposed business transaction or restructuring before it is implemented.

It can cover potential GST liabilities, Input Tax Credit (ITC) considerations, transaction structures and compliance implications.

Why is GST planning important before a business sale?

GST planning before a business sale can help identify potential GST implications associated with the proposed transaction structure.

It allows the business to consider GST liabilities, asset-transfer implications and relevant ITC considerations before completing the transaction.

Does GST apply to a business transfer?

GST implications can depend on the nature and structure of the business transfer. A transaction involving a business as a going concern, individual assets or another structure may require different GST considerations.

A transfer of a business as a going concern may qualify for exemption subject to applicable conditions, while the sale of individual assets may attract GST depending on the nature of the supply and applicable provisions. A transaction-specific assessment is important.

What are the GST implications of a business sale?

The GST implications of a business sale depend on how the transaction is structured and what is being transferred.

The assessment may consider the business transfer, assets, capital goods, ITC and related compliance requirements.

Can GST planning apply to mergers and acquisitions?

Yes. GST considerations can be reviewed as part of mergers, acquisitions, demergers and other corporate transaction structures.

The review can help identify relevant GST liabilities, ITC considerations and transaction-level risks before implementation.

Is Input Tax Credit considered during business restructuring?

ITC can be an important consideration during business restructuring and business transfers.

The treatment and availability of ITC depend on the transaction structure and applicable requirements. Relevant circumstances should be assessed before implementation.

What information is required for GST transaction advisory?

The information required depends on the proposed transaction. It may include details of the entities involved, the proposed transaction structure, the business or assets being transferred, relevant agreements and other information needed to assess the GST implications.

Who should consider GST planning and exit structuring?

Business owners, promoters, CFOs, finance directors, tax teams, investors and companies planning a business sale, transfer, restructuring, merger, acquisition, succession or exit can consider GST planning as part of their transaction process.

Need Professional GST Planning & Exit Structuring Support?

Managing overseas investment reporting requires accurate information, structured documentation and attention to applicable FEMA and RBI requirements.

If your company has an overseas subsidiary, joint venture, WOS or other overseas investment, speak with our team about your APR filing requirements.