GST GUIDELINES FOR SMALL BUSINESS
There are many conspiring theories as to why the nationwide GST came into force but the most valid of them all being there was a necessity to implement one banner under which the taxes reached the government, in order to curb all the indirect taxes on essential goods and services.
What does GST mean?
Goods and service taxes are a mode of tax impulses applied by the government of India on products and services. Suppose you provide any services like transport, a salon, restaurant, shopping services, etc., or you sell physical goods, the government charges a certain amount from the total price under the banner of GST. Contrary to this program, the concerned body provides a series of number identification to keep a track of your payments and logouts. If you run a business, it is compulsory to produce your GSTIN number.
Is there a need for small businesses to register under the GST program?
As per the government advisory any business having a turnover of Rs. 20 lakh or below need not compulsory registers under the GST portal. However, for states like Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Sikkim, Uttarakhand, and Himachal Pradesh, the turnover rate is jotted down to 10 lakh turnover.
The other drawback of not registering under GST is that you will not be able to ship your goods or provide any services to other states except for the states you reside in. Now, this brings down the previous decision to your concern that if you would want your business to grow to an interstate level, you would have to register your business under the GST Act.
After registering under the GST, you will have to follow the norms of the GST procedure.
How do you register?
The process is very simple. Unlike the old times, you would not have to run around carrying haps of paperwork and worry about rejection, rather hazel free. You can
- Either login to the GST portal or directly apply for the registration.
- There are numerous service providers who would necessarily help you tackle any issue with the GST registrations.
How does GST impact small scale businesses?
- Back in the days, package based goods and service providers had to compile on paying both VAT and the service taxes, filing both and also separate penalties, making it much harder. With the introduction of the concept of GST, there would be a differentiation between the goods and services as such. All taxes will be complied with under the same banner. This would make sure that there is one cost adapted to run through the given business.
- Any business platform having a turnover of 10 lakh and below will be exempted from paying taxes neither they have to register under the GST Broadway. Also, any business having a turnover of over 10 lakh to 50 lakh will be charged a very minimum amount of GST. This throws in relief to hundreds of small scale business owners.
- Cash deprived organizations tend to gain more financial benefits with the implementation of GST.
- Ease of doing interstate businesses.
- It is currently hassled free and online.
What are the necessary documents required to obtain your GSTIN number if you are a small business owner?
- PAN card of the applicant
- Bank account statement
- Address proof of your business set up
- Incorporation certificate
- Aadhar card
- Signature authorization
- Letter of authorization
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