Road Ahead of GST: Compliance Requirements, Challenges and Everything You Should Know About Upcoming Tax Regime
If you are feeling insecure and helpless due to the upcoming tax revolution named GST, just stay assured and sit tight. It is nothing but a simple process of shifting from the general tax practice to a more effective tax regime which will not only increase India’s GDP but also eliminate the cascading effect of tax.
Now, Then and How
“The GST is not just a tax reform or even a business reform. It is a lifestyle reform that will change the way business is conducted in the country,” says Minal Agarwal, a chartered accountant.
“Nearly 50% of Indian businesses are not aware of the changes that GST will usher in. Most of them think it is just another tax regime,” says Bharat Goenka, Managing Director of Tally Solutions.
Relief for enterprises with less than Rs 50 lakh turnover
An option for ‘composition scheme’ has been devised for those enterprises with less than Rs 50 lakh turnover
which levies a presumptive tax on the turnover. However, this option is open only to manufacturers and specific service providers (restaurants).
Disadvantages of Composition Scheme
Input tax credit will not be available
Can be opted by companies operating in only one state
Cannot levy and collect tax from buyers
Buyers will not be eligible for input tax credit.
If a business has a turnover of less than 20 lakh, then the companies can ditch GST. However, this is not as easy as it sounds. The input tax credit is an essential part of taxation, a benefit which non-GST registered companies will be aloof from. Additionally, experts suggest all vendors register for GST regardless of the turnover amount.
Helping Hand offered by multiple companies for compliance
Impressively, the renowned company Taxmann which also releases its academic books has compiled and formulated a platform pertinent to compliances under GST. The platform is named as ‘One Solution’.
Under GST, each and every business will have to file 37 returns yearly (three returns per month and one annual return) per state, as per the number of states company is operating in.
Register today for GST
If you are falling under the GST slab, register today for GST without much ado. You can register online by logging on to gst.gov. in. The date for registration has been extended from June 1 to June 15.