Under the Indian taxation regime, there are several compliances to take note of, especially when you are an owner of a small-scale organisation. This necessitates a small-business owner to take note of the taxes applicable to him/her clearly, especially GST.
The introduction of India’s Goods and Service Tax regime in 2017 mandated businesses in the goods and services industry to register under this system. Apart from subsuming all indirect taxes and easing tax compliances, the GST regime also facilitates claiming input tax credit deduction. To enjoy such benefits and more, businesses must undertake GST login and register with the system.
Take a look at GST and how it can help protect the interest of your small business.
Overview of GST basics
GST is an indirect tax that has replaced multiple indirect taxes in India. AS its name suggests, it is imposed on businesses engaged in the supply of goods and services. Under this GST system, tax is levied at every selling point. All the intra-state and inter-state sales are charged under different categories of GST.
Primarily, businesses with an annual turnover of less than Rs.40 lakh are not required to file a GST return in India. Earlier, business owners had to file for the tax through the GST login portal if the company’s turnover exceeds Rs.20 lakh per annum.
However, the Central Board of Indirect Taxes and Customs (CBIC) has tried introducing further easing or relaxation for start-ups or small businesses to minimise their GST burdens.
These are the basic things one needs to know about SME and GST.
Protect your business from GST
Some goods and services attract 0% GST and a few others are free from GST. Items included under this purview are called zero-rated supplies. Businesses don’t have to collect GST for these materials.
Following are the zero-rated supplies listed:
- Prescription drugs
- Exports
- Basic groceries
- Few fishing and agricultural products
- Select medical devices
Some services are also exempt from GST. Those businesses providing only these services will not need to undertake registration via the GST login portal. As a result, you will not be liable for GST and consequently not be able to claim an input tax credit.
Supplies that are exempted include:
- Legal services
- Educational services
- Used residential housing
- Health and medical services
Moreover, there is a composition scheme for businesses whose accumulated turnover is lower than Rs.1.5 crore.
Such small-scale businesses can choose this scheme, where they would be only liable to pay tax at an amount equivalent to a certain percentage depending on the business’ yearly turnover. Moreover, the taxes under this scheme can be paid quarterly, and businesses choosing this scheme do not have to maintain lengthy records.
It is to be noted that to opt for this scheme, one needs proper GST registration via GST login and provide intimation beforehand. With proper GST registration and compliance, entrepreneurs can also increase their chances of availing of credits likes business loans. However, individuals need to gather the necessary documents to register for GST online.
Individuals looking for substantial funds can opt for a business loan extended by reputed NBFCs like Bajaj Finserv. They provide substantial funds without any collateral, against minimum interest rate and flexible tenor.
They also offer several lucrative pre-approved offers to streamline the loan procedure. One can avail of these offers on credit cards, personal loans etc. To check your pre-approved offer, submit your essential credentials.
Knowing everything about GST and registering a business under it will protect borrowers from facing hurdles in their businesses. However, individuals must also know how to calculate GST like a pro beforehand to ensure complete compliance under the system.