GST: What’s in it for you, the Indian businessperson?29 November, 2017 11:44 am
It’s long been said that the only two things certain in life are death and taxes. That being so, all we can do is make the best of the situation. And that’s why we should look for the benefits in India’s relatively new Goods and Services Tax, because they’re there…
OK, so you may be feeling the pressure of getting to grips with this massive business-based tax shakeup that spans the whole country, but you shouldn’t forget that this is a transitional phase.
Like anything new, there is bound to be a settling-in period. We’re seeing it with GST in terms of changing tax rates and rules that will make it easier for the SMEs and exporters amongst us.
Perhaps it doesn’t seem that way at the moment, three months into the new regime; perhaps you’re one of the small businesses waiting for delayed payments, and feeling the pain of the delay, but we predict that in the fullness of time the transition period will lead to an easier way to pay taxes, and therefore a better way to do business.
We list the benefits we see from the new system (which you can see in a YouTube clip here) a little later in this blog.
First step in self-help and expense control
Before we do, we should point out that you can’t get the best result from the new system unless you’re managing your own money effectively. Everyone needs expense management software that’s easy and effective to use. We’ve been specialists in expense management for small business for more than a decade, and we’re happy to share our experience with you. We do it all the time by upgrading our software regularly to include new and helpful features.
As far as GST is concerned, that means we have made it possible for our software to do a great deal of work for you in the background, doing tax calculations for you. What a help that is, given the complexity of rates across everything that’s bought and sold nationwide! And it’s obviously important to have accurate record-keeping in order that you don’t overpay tax, or fail to claim back what you’re owed.
Solo Expenses also works in Hindi and Bengali as well as English, so it’s more closely allied to the people who need to use it, helping it to integrate into modern business life.
Benefits of Goods and Services Tax
1. Easy compliance: Since everything is on line, the processes involved are more straightforward and easier to manage.
2.Uniformity of rates and tax structure: Because the structure is uniform nationwide, it’s easier to be do business with any business, anywhere.
3.Goodbye cascading: In theory, tax credits should be seamless, and work up and down the value chain, and transcending state boundaries.
4.Improved competition: Transaction costs will be reduced under the new system, which ought to make trade and industry more competitive.
5.Gains for manufacturers and exporters. The joining of central and state taxes reduces the cost of locally-manufactured goods and services.