It is nothing like that of the indirect tax system. Under the current GST laws, a person who is supplying any taxable services must get themselves registered.
However total turnover of a person happens to be 20 lakh or more, then the person needs to register themselves under the GST laws. The business must consider some of these important factors that can help them understand the GST online payment better.
Registration
Whenever you run a business, you are required to obtain the gstn number. To track the GST registration of your business, you need to check the ARN status for GST. Generally, business organizations with an annual turnover of less than Rs. 20 lakh or Rs. 10 lakh for the various North eastern states must register themselves under the GST laws. But those who have an annual turnover of over Rs. 2000000 need to get themselves registered under the GST.
Tax credit
The concept of GST in India is a unique one as it features the concept of matching invoices. None of the other countries has this process. It is one of the best ways to check any tax evasion and fraud. It also tends to make the sealing process in the case of tax input credit much more difficult. But many of us may not have the idea of the tax credit. Moreover, GST allows various businesses to claim that credit in case of the tax input credit is already paid.
Job works
Job work happens to be one of the primary parts of the manufacturing industry. It will not be a lie if someone says that this industry keeps the machinery required for production working. If you tend to outsource the work to someone, then the GST plays a major role. It helps to iron out a lot of the issues that existed in the realm of the old regime. However, the reach and scope of the GST payment happen to be a broad concept.
Working capital
The impact of GST on the working capital is a very confusing area. Especially in the case of small and medium enterprises, this happens to be a very debating topic. Special for any eCommerce seller, your working capital requirements are higher. However, concepts like input tax credit can somehow provide relief to the worker.
Filing returns
It is one of the greatest confusions that every business owner faces. That every business owner needs to file for the GST return every single month. But the truth is that one needs to file the return from July to September. Or you can also file it by the 20th or 11th of the next month.
There happens to be plenty of concerns that revolve around the concept of GST. Most of these concerns centred around the logistics as there happens to be no clarity on the concept of the e-way bill. Moreover, if you tend to make any mistakes while getting yourself registered under the GST laws, you have the provision to correct the errors.
In India, various small businesses play a major role in the economic growth of the country. Moreover, the simplification and digitalization of indirect taxes with GST implementation happens to be a boon for the various entrepreneurs. Today if you want to become an entrepreneur, you require the need for external financial help. But with that, one needs to understand the concept of GST and how it is profitable for your business.
