Call Impact of GST on Small and Medium Businesses in India
The online platforms like Quora, Reddit and similar other are overflowing with questions like –
Do I need a GST number for my small business?
Who are liable to register under GST in India?
How to register for GST in India?
Why we need GST?
When Do I need to register for GST?
What is the GST bill?
What are the documents required for GST registration in India?
Will a logistics company be required to take GST (Goods & Services Tax) registration in India?
When GST fresh online registration (new business) will be commenced in India?
What is the date of registration in GST for service providers in India?
When will the GST registration process start in India?
Is excise duty included in GST? What is IGST, CGST, SGST?
So here are some simple points that will help you if you are a small or medium business owner and looking for information about GST bill and its implementation on and after 1st July 2017.
GST (Goods and Service Tax): Is it applicable to your small business? The short answer is ‘Yes’.
What is CGST, SGST & IGST?
Before introduction of GST, there were different Indirect taxes in India like custom duty, excise duty, service tax, luxury tax, VAT and many more. Some of them was charged by state government and some by central government. When, GST introduced all these Indirect Taxes has been merged in single Goods & Service Tax. Now, GST will be equally divided between State Government and Central Government. The tax portion collected by centre is named as CGST whereas the tax collected by state is named as SGST.GST is the tax based on consumption collected by the state where product or service is consumed and not by the state where it is manufactured.
There is a separate tax collected under the name IGST for inter-state sales. When dealer of one state sells the product to dealer of another state, then IGST is collected by the centre. Both the states involved in the trade may not have to deal with each other, but they will be dealing with centre in case of IGST. GST Software will take care of these different tax heads. However, in order to embrace the change, it is important to incorporate appropriate measures for effortless transition.
What you should do?
It is time to be GST ready to avail the advantages of GST in flawless manner. GST Software will help you accomplish this in the most trusted manner. But, before making any GST Filing & Invoicing Software a part of your business, you may follow the following steps:
Update your accounting systems –
Earlier taxation system required the payment of VAT (Value Added Tax) at all levels of supply chain, but the new system of taxation under GST requires payment of only destination based tax. In order to incorporate this new tax regime, amendments need to be made in invoice generation, recording of expenses, and purchase order generation. Businesses may be required to claim input credit for the taxes and this may call for invoice details as well. Accounting system must be updated as per this new taxation norms in order to get GST ready.
Be ready for the change in economy –
GST would bring the welcome change in economy. The tax rates would differ for goods and services. Various tax slabs like 5%, 12%, 18%, and 28% are designated for different goods and services. Know the tax slab for your range of products and services. Earlier the accounting data was tallied half yearly or quarterly, but now this will be done monthly and this will also help in regulating monthly supply with the relevant supply and sales data. Economy will witness a new high once all the processes would be streamlined.
Go Digital –
The final step to successful GST implementation is to go digital. Many IT companies are coming up with GST Billing Software for small business to make them GST ready without requiring any major efforts and man power. Look for the reliable GST India software that is designed for all the compliances set by the government for this new tax reform.
There are many GST software providers in India, but the best GST software would be the one that incorporates all the aspects of this new tax reform. Sinewave Taxbase GSTPro is designed for preparation of GST Returns, filing GST Returns, and also for export/import of crucial data. The software is fairly priced and offers utmost accounting support to small and medium businesses in India. It is reliable and efficient enough to take any business smoothly through this GST transition.