How we Reshaped a Marketplace’s Tax Strategy: A Case Study in Resolving Complex GST Challenges


The Client, a marketplace, operates on a unique business model that revolves around providing a range of services including housekeeping, appliance repair, beauty treatments, cleaning, plumbing, carpentry, and painting, among others. The client offers a convenient platform for customers to browse and book services seamlessly. 

Issues involved:

The client’s indirect taxation was handled in house by the team. The client’s tax team had undergone change when they approached Acupro. There were various issues related to place of supply, GST rates on services, incorrect input tax credit availment, discharge of tax under section 9(5), etc. 

How we helped:

Acupro Consulting played a critical role to help the company enhance its existing tax framework. Our team provided valuable assistance in several areas and we were able to solve the issues as we:
·   Reviewed the buyer state code to ensure that the client books correct point of sale (POS) when raising invoices.
·    Verified the correct Harmonized System of Nomenclature (HSN) and Goods and Services Tax (GST) rates against the nature of expenses on the GST website.
·   Analyzed the supplier state and buyer state to book transactions accurately in the respective GST heads.
·   Reviewed the nature of services provided and recommended the availability of Input Tax Credit (ITC) in accordance with Section 17(5) of the CGST Act, 2017.
·   Helped the company comply with the compulsory obligation to discharge 9(5) liabilities in cash instead of credit.
·   Suggested a solution for dealing with accumulated ITC at a state where insufficient output  tax liability occurs. Our team recommended cross-charging the accumulated ITC to a state

where sufficient output tax takes place, which ultimately helped the company to optimize the tax function.


Overall, our expertise and guidance enabled the Client to improve its processes and become more tax efficient in its operations. Our team helped the Client comply with GST regulations within the specified timelines, while ensuring that all deliverables were met properly.