Are you a product or services provider registered under any of these taxes?
– Central excise
– Service tax
– Value Added Tax
– Entry tax
– Luxury tax
– Entertainment tax
If your company’s annual turnover is more than 20 Lakhs, you need to enroll yourself for the new Goods and Services Tax (GST) that is all set to take country-wide precedence in the coming months.
Once the GST is in place, all the above taxes will be nullified and a single, indirect tax will be applicable to all goods and service providers in the country.
How will GST Work
The GST is an attempt to consolidate the indirect tax and gather it under a centralized, computerized system that will not just ensure ease of accounting but also get the right amount in return.
Here’s a video explaining how GST will work:
GST enrollment started out in November. Here’s what the schedule looked like:
|Gujrat, Maharashtra, Goa, Daman and Diu, Dadra Nagar Haveli, Chhattisgarh|
|Odisha, Jharkhand, Bihar, West Bengal, Madhya Pradesh, Assam, Tripura, Meghalaya, Nagaland, Arunachal Pradesh, Manipur, Mizoram|
|Uttar Pradesh, Jammu and Kashmir, Delhi, Chandigarh, Haryana, Punjab, Uttarakhand, Himachal Pradesh, Rajasthan|
|Kerala, Tamil Nadu, Karnataka, Telangana, Andhra Pradesh|
|Service Tax Registrants|
|Delta All Registrants (All Groups)||01/02/2017|
The effect of GST on SMEs has been highly debated. Experts say the GST could throw in a “mix bag of opportunities and challenges for SMEs to explore.”
– GST will bring about a uniform approach to paying taxes. Earlier, a small business had to pay all the above-listed taxes that amounted up to 25%. With GST, that will come down to just 18%.
– Small service providers, who don’t get any concessions, will benefit from the new GST laws. A better startup environment.
– Tax evasion becomes harder and the system gets simpler and more transparent.
– SMEs lose out on the special exemptions – Excise concession for businesses that have an annual turnover of 1.5 crore.
– Businesses that have an annual turnover of just above 20 lakhs also qualify for GST.
– The small scale service sector will probably have to shell out more in taxes with GST.
Want to avoid all the complications of GST? The government recently announced tax benefits for SMEs that transact digitally.
Start collecting payments online today!
Disclaimer: Information in this article is intended only to provide a general overview and is not intended to be treated as legal advice. Please consult a tax expert to get a better understanding of the GST Laws.