The Indian Goods & Services Tax Act (GST) is one of the landmark tax amendments that came into effect in July 2017. It is an indirect tax regime which has laid down the foundation for a unified taxation system in the nation. Executing the idea of ‘one nation, one tax’ has been quite challenging, but it has materialised reasonably well. This consolidated taxation system has replaced all other indirect taxes. Unlike its predecessors, GST is a destination-based taxation system where taxes are charged at each stage of the value addition process. Most businesses in India have to register for a GST number to file their taxes. A reliable GST consultant can simplify the hassles for a business. Read on to learn more about the benefits of GST and the importance of a GST service provider for small businesses.
Benefits of GST for small businesses
Modern India is powered by a robust digital ecosystem, which has added to the convenience quotient for both small and large businesses. The ease of doing business index indicates that India has improved its ranking on the global pedestal. It is currently ranked 63 among 190 economies listed on the index. This is a significant improvement from its rankings in 2018, which stood at 77/190. Major credit for this enhancement goes to the digital and unified taxation system. Let’s take a quick look into some crucial benefits of GST for small businesses.
- Online registration process
Businesses can be quickly registered online on the GST portal to obtain a GST number. It doesn’t require any additional efforts to get a GST number. A standard online registration process to pay for all indirect taxes is not less than a boon for most small businesses.
- No cascading of taxes
The cascading of taxes refers to charring taxes on the already applied tax for goods and services. Since GST is a multi-stage taxation process that charges tariffs on each stage of the value addition process, the cascading effect of taxes is eliminated from the equation.
- Availability of Input Tax Credit (ITC)
GST has made it easier for small businesses to access the Input Tax Credit by simplifying the process. All data related to the input tax credit earned by a business is available on its online portal.
Importance of GST consultants for small businesses
A GST consultant can be the guiding light for small businesses when navigating through the complexities of the GST regime. The new indirect taxation system is still a work in progress and subject to frequent changes. Keeping up with the latest updates and regulatory norms can be challenging. However, failing to adhere to the guidelines can result in Financial penalties for your business.
A GST consultant has expertise in the indirect taxation regime. They are well familiar with all the legalities and loopholes in the system. Small businesses can benefit from their expert opinion and save a significant amount of money. They also overview and provide critical suggestions for keeping the business operations in line with the GST law. Hiring a reliable GST service provider like AKM Global will help you focus on the core business operations without worrying about the international tax advisor compliances.