With each passing day, we are getting closer to the GST implementation date. No doubt that every business owner is preparing himself to be well aware of the new taxation system. To ease the task, here we have prepared a list of five important things that as an entrepreneur you need to keep in mind before the GST implementation date finally arrives.
1. Understanding the requirements:
GST is a compliance driven law, and every registered person (other than the person availing compounding scheme) need to file 37 returns per year i.e. three returns per month and one annual return. The person availing compounding scheme has to file quarterly returns and one annual return. The GST law prescribes separate returns for e-commerce operators, Input service distributors, and more.
Initial move towards GST will be to comprehend the compliances which the business needs to take care of. Business owners would need to decide what number of GSTIN enlistments they would require (could be one and more registration in a state depending upon the operation of the organization), which filings would be relevant to them alongside their recurrence & what channels to keep tab of for normal GST related updates.
2. Understanding processes involved:
Accuracy in GST is exceptionally important, the essential explanation behind the same is that filings done by the provider will be cross confirmed with those done by a buyer. Moving ahead, availability of input tax credit (tax set off) of the buyer is subject to the filings done by the seller and the payment of tax made by him.
3. Giving required training:
Implementation of GST is an immense move in our country’s indirect tax structure. The era has indeed called for the time when everyone has to unlearn and take in again everything from the scratch. Making your finance department aware about the details related to GST is something that you cannot sideline.
You need to ensure that your staff is getting acquainted with e-books, GST rules & regulation, to learn how to prepare and upload GST returns by attending seminars/events organized in each city. It is exceedingly prompted that bookkeeping and taxation staff of the organizations ought to begin attending these sessions.
Given that postponed or wrong filing by your vendors can influence your Input Tax Credits hence, it is suggested to keep a state of harmony with them on their readiness for GST.
4. Find right software:
Automation has become the key to record and maintain the numerous transactions that take place in business for actions like filing returns etc. Finding the correct information and adhering to the compliance schedule will be the most basic movement that your association should do.
Software which is adaptable, simple to use and the one which can produce the GST compliance report/ returns with data redundancy should be rightly selected by every business owner. It has been noticed that most businesses primarily require two sorts of software; one for filing their GST returns, and one for bookkeeping or raising invoices etc. However, some integrated software are also available in the market that can perform multiple jobs of accounting, bookkeeping, business management, financial planning along with a decent GST reconciling and returns filing.
5. Keeping alignment intact is crucial:
According to a survey report, around 22% business owners perform their tax filings by self. This means that the remaining 72% business owners are dependent either on professional tax filers or chartered accountants. However, with the advent of digitalization by Government, it is believed that the former numbers might probably increase in the coming time. This means we can expect business owners opting for technological measures that can help them do filings by self.
It is presumed that the initial days might prove tough for the entrepreneurs, but with the moving time, things will get back to the normal. However, at this moment, the business owners are required to make some smart decisions. Being precise I’ll call this more of a smart decision. The technological advancements have given sufficient space to business owners to save their time and money. You can have GST enabled software for your business. And be ensured that the software is easy to learn and at the initial stage you have professional guidance to operate the same.