Whether you’re new in business or a veteran on the market, it’s impossible not to have heard of the new tax system that will be rolled out this year in India, called Goods and Services tax, for short GST.
With the promise of streamlining the current tax structure, the government will integrate all current indirect taxes into a single GST tax, making tax collection more transparent.
All invoices from B2B transactions have to be captured and compared to the corresponding party’s records. If there are any discorcondances, input tax credit cannot be claimed.
Implementation will be tough on businesses as they will have to learn on the go. Returns need to be made more often and cash flow might have suffer. GST software will be the key in their day to day operations.
While logistics will get easier for companies that sell goods, businesses in the service sector will suffer more. Currently, service providers need to register once at the central level while GST will require registration in every state such a business operates.
No more tax cascading and applying tax at the total value of the product on each stage of the supply chain. Tax will be applied to value addition at each stage and businesses will be able to claim input tax credit.
Taxes for both Centre and State will be collected at the point of sale and charged only on the manufacturing cost. As prices are likely to come down, consumption will increase, resulting in more production and helping businesses grow.
Interstate movement of goods will get easier. All businesses that need to move goods around the country currently need to keep multiple warehouses in order to reduce tax prices. This won’t be necessary as GST will remove entry state taxes.
The GST system that will hit the market in less than 3 months will impact millions of businesses in India ...Read More
VAT is a consumption tax levied on a product at each stage of the supply chain where the value of the product ...Read More
GST short for goods and services tax, will be applied to all items traded by suppliers registered under ...Read More
The location of a supplier is important in GST due the taxation system that is tied around it. Read ...Read More
As a registered dealer under GST you are required to create GST invoices for each sale you make. ...Read More
GSTR-1 and GSTR-2 are two monthly statements done by all normal registered taxpayers. These returns have...Read More
A proforma invoice is a preliminary invoice of sales that a business sends to buyers in advance of a ...Read More
Composition scheme is a simple scheme under GST that helps small businesses get rid of complicated ...Read More
GST bills have a complex structure and they require increased attention to details to ensure...Read More
Exports of services attract zero rate GST, but in which cases are these services actually exported....Read More
What features should you consider when looking for a GST software for your small business and....Read More
How to make export invoices and understand your export under Bond or letter of undertaking choice.....Read More