GST came into existence in 2017, and since then, many businesses have found the right way to comply with GST regulations. However, there are pockets of businesses that are confused about the GST regulations, registration, etc. Fret not! Here's everything you need to know to make your business GST compliant.
Filing GST returns
Businesses are required to register under GST if their yearly turnover is more than ten lakhs in the special category states and forty lakhs in other states. Essentially, a regular business will have to file for GST returns. The company has to file one annual and two monthly returns. Non-compliance can lead to severe penalties and a lot of hassle. An efficient online GST accounting software can ensure a seamless experience when filing GST returns.
Transactions under the jurisdiction of GST must be classified as goods or services. GST laws classify transactions differently compared to the previous VAT laws, and utmost care should be taken to correctly classify all transactions using HSN/SAC code mapping. Classifications are also based on whether the transaction occurred interstate or intrastate.
Raising invoices under GST
The registered business issues invoices under GST. While suppliers can pick the format that works best for them, the invoice itself must have sixteen mandatory fields. The next step is to update the invoice details on the GSTN portal without fail. An online GST accounting software can help a great deal in raising invoices and filing returns.
Are you liable to compulsorily register under GST?
Existing business owners have already registered under GST. However, if you're starting something new and your business meets any of these conditions, you need a GST registration, especially if your turnover crosses Rs. 40 L:
- Interstate suppliers
- If you deduct TDS/TCS
- Casual taxable persons
- If you are taxable under the reverse change criterion
- E-commerce operators who offer dealing space to suppliers
- If you supply via e-commerce operators
- The principal or the agent making sales indirectly
- If you are a non-resident taxable person
- Distributor in the input service
- Overseas e-service providers providing services to Indian citizens
- Your turnover exceeds 40 lakhs INR
Get GST registered
As a new business owner, you can get GST registered through the official portal, which has a simple interface and is easy to navigate. You'll have to validate your contact details. After enrolment, you will receive Form GST REG-25. If you are a supplier for multiple states, you must get GST registered separately in all the states.
Check the impact of GST
Getting registered under GST is bound to have a disruptive impact initially. All the nodes in your network, like your vendors or suppliers, must be aware of the GST registration to implement compliance.
You cannot keep using your old ERP software
After your business is GST-registered, you will have to move to an ERP system compliant and cooperative with the new changes.
Learn from the practices of other countries
When you learn more about similar regulations in other nations and how businesses worldwide cope with them, you will learn how to optimize your systems. Learn from other nations to improve, adapt, and overcome the impact of any changes.
Check up on your IT and accounting systems
Your IT and accounting systems must have needed an upgrade when you first included GST accounting software. Since it's been a while, it's time to evaluate how well your IT systems are working in coordination with the software. As time progresses, the technology we use must also become faster and more efficient to cope with a dynamic world. A robust GST billing software for small businesses can make a huge difference.
GST guidelines must be followed, as is the norm. It's best to keep a check on changing tax guidelines so you never fall behind. Having efficient online GST accounting software on your side can improve efficiency by a large margin.