5 Ways GST will Substantially Change your Business

There are several businesses in India that are seeking help of tax professionals after the GST implementation. It is because the GST provision is so vast that it is difficult to understand the changes, norms and various processes. The new taxation system is expected to bring the money back in rotation which was previously used in black.

GST is implemented to reduce the tax burden from the business owners and the end-consumers to make the vision of taxation simpler and convenient. Before, gaining any extra knowledge about the GST, one of the most important things that you need to do is get registered under the GST if you’re dealing with the supply of good and services and your annual turnover is more than 20 lakhs. This is how you will begin your GST journey.

However, there are several other factors you need to know that will affect your business in one way or the other. In this post, we list five ways in which GST will change the way the businesses are done. Take a look.

Simplify the Taxation Procedure

India’s taxation system is considered as the second most complex system globally. The complexity id due to the federal structure of the Indian Government and the financial needs of the country. This complexity is responsible for the higher cost compliance and enforcement. That’s the main reason, the businesses aren’t easy to establish in India.

After the implementation of GST, the entire taxation procedure has been simplified for the businesses, companies, dealers and the end-consumers whosoever comes in the supply chain while dealing with goods and services. GST has subsumed various central and state taxes to simplify the entire taxation process. The Government has also set-up various websites, software, GST rate finder apps, and GST tools to ease the complex taxation process.
 
Increase Number of Indirect Tax Payers

The key feature of the Indian GST taxation system is that the input tax credits can only be availed when the supplier in the supply chain has paid the entire tax. The Government is using the GSTN portal to ensure that everything is going smooth and in an authentic way. Under the GST, the incentives have been eliminated for an upstream supplier. This will push many companies to join the tax network and pay the taxes timely.

Eliminating the Cascading Effect of Tax

One of the major issues of the indirect taxation system was that of the cascading effect. In simple words, it means that the taxpayers have to pay taxes upon taxes. However, after the implementation of GST, the cascading effect of taxes have been reduced and all the indirect taxes have been subsumed into one unified tax. The availability of input tax credit has reduced the prices of many daily needs products and services.

Companies Need to Reboot their Business Processes

After the GST implementation, the companies have to change the way they were doing businesses in the previous taxation system. Now, they have to focus on various GST rules and regulations based on the supplies of various goods and services.

The entire GST process is web-based due to which every business needs to have a GST-related software and various GST tools to initiate the e-filing, registration, returns and ITC processes. Now, the companies have to change their procedure-to-pay, order-to-cash processes. Failure to perform such activities might impact the reputation and profitability of the company.

Reduction in the Overall Tax Rates

The entire taxation system has been changed and now the taxpayers have to follow and pay the taxes according to the new taxation slab which is announced to be somewhat 5%, 12%, 18%, 28%. Due to such a major change in the taxation the compliance is expected to become simpler, easier and much convenient for the business owners as well as the end-consumers.

Conclusion

The Government is taking crucial steps to make the process simpler for the common population of the country and make them more educated for the new GST era. They have introduced the GST rate finder to calculate the tax according to the standard rates on products and services.

There are many other things that the Government has done to make people knowledgeable about the GST regime. All your need to do is prepare yourself for the GST by getting registered into it and enjoy the benefits.
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About Devender Sisodia

I am professional blogger share guide about WordPress, blogging tutorial, seo techniques, making money from blog and getting traffic to the blog.
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