GST, which stands for Goods and Services Tax, is a tax charged at multi-stage during every point of a sale. This tax has replaced multiple indirect taxes like the value-added tax, service tax, central sales tax, excise duty, and additional customs duty. Today we are going to talk about the 5 reasons why you need GST advisory services for your company.
Every company needs to take care of every little thing that can help its clients/customers and even employees. Even if you have just started your business and it’s a new company, it is essential that you keep these little things in mind so that the whole flow and process are smooth.
If you are an entrepreneur and want to know about the company taxes and other related things, then you have come to the right place. The introduction of GST occurred when the Goods and Services Act was implemented, which came into effect on the 1st of July 2017.
Here are 5 reasons why you need GST advisory services for your organization-
- The threshold for registration is higher
Earlier, when the VAT structure was being used, any business with a turnover of more than 5,00,000 rupees (in most states) had to pay VAT. Keep in mind that the limits differed from state to state. At the same time, service taxes were exempted for all service providers with a turnover of 10,00,000 rupees or less.
Now, under the GST regime, the threshold has been increased to 20,00,000 rupees. This exempts a lot of small service providers and traders.
- Simple online procedure
The whole process of GST, which includes registration, filing for returns, etc., is made online. Because of this, it has become easier for people to understand how it works. It has been beneficial for new companies and start-ups, especially because now they don’t have to run from one place to another to get all the registrations like VAT, service tax, and excise.
- Efficiency improved of logistics
The logistics industry of India was responsible for maintaining multiple warehouses across the states so that they were able to avoid the current state entry taxes on the inter-state movement and CST. The warehouses were now forced to operate below their capacity, which gave them room for extra increased operating costs. But under GST, these restrictions have been reduced on the inter-state movement of goods.
- Organizing all unorganized sectors
Certain industries in India, like textile and construction, were very unorganized and unregulated before the GST era. Now, thanks to GST, there are certain provisions for payments and online compliance credit only if the supplier accepts the amount. This has led to the regulation and accountability of these sectors.
- Lesser number of compliance
Under GST, only one unified return needs to be filed. Hence, the number of returns that needs to be filed has gradually come down. There are around eleven returns that fall under GST, and out of that, four are just the basic returns that are applied to all taxable individuals under GST.
These are the five reasons why you need GST advisory services for your organization as an entrepreneur. Make sure you get in touch with an expert to know more about the whole process.