Is increasing day by day. We are aware of the term Tally, but what is Tally? You often used the term Tally while calculating big numbers or in schools when you were taught the use of Tally table to solve number problems. But, the term Tally which we are referring to is the name of the software which is preferred widely by small, mid-sized and large enterprises for accounting and inventory management. This is the most demanding software in today’s time as it provides complete business solutions to all. From filling GST to cheque printing to ratio analysis to comparative analysis to cash and fund flow statements do as much accounting related work you want.
Before we jump to other aspects of it, let's understand GST first.
What do We Mean by GST?
Good and Service Tax (GST) is the biggest tax reform in India. Moreover, the nation adopted a uniform tax system under the central authority, for the very first time. GST is applicable to all goods such as materials, commodities and articles, as well as services. The GST law has specific principles and is influenced by the GST systems of other countries such as Australia, the European Union and the (Organisational for Economic Co-operation and Development) OECD's recommended international guidelines. Since the government allows both the center and the states to impose taxes, there is a dual system in the GST system that allows the states and central taxes to operate independently.
Features of GST
This unified taxation system ensures that the same goods or services do not receive cascading and repeated tax levies. This will support the country's economic growth by reducing the time, effort and cost spent on taxation. It will contribute to the ease and accountability of business transactions.
Different Types of GST
Central Goods & Services Tax (CGST), State Goods & Services Tax (SGST), and the Integrated Goods & Services Tax (IGST) are the three major types of GST. The fourth one is the Union Territory Goods & Services Tax (UTGST).
Central Goods & Service Tax (CGST)
The Central Goods & Service Tax (CGST) replaced all the duties and taxes that were formally imposed. That taxes collected by the government body belongs to the central government. State governments are provided with the input tax within this head, so they have to pay the CGST to use it.
State Goods & Services Tax (SGST)
State Goods & Services Tax (SGST) is collected by the states. It replaces the taxes that were imposed by each of the state governments before the implementation of the GST. The central GST body also regulates the state authority.
Integrated Goods & Services Tax (IGST)
IGST is imposed on Goods & Services that are supplied from one state to another. This tax is collected by the center and can be changed whatever required by the Goods and Services Tax Council of India. These taxes are collected by the center and are subject to change whatever is needed by the Goods and Services Tax Council.
Union Territory Goods & Services Tax (UTGST)
Union Territory Goods & Services Tax (UTGST) replaces all the taxes that were imposed formerly by the Union Territories.
The Four Slabs of GST
GST has been imposed with a four slabs structure with an additional cess having different rates such as:
Impact of GST on SMEs
The GST reforms have multifold impacts. For small and medium-sized enterprises the most imminent and substantial benefits are:
1. Easy to Comply
It was extremely difficult to understand and comply with the earlier taxation regime, especially for a business person not familiar with the rules of another state. The GSTN portal makes tax filing easy.
2. Transparent Registering System
The process of registration for new startups under GST is simple and transparent. It allows businesses to expand more beyond state borders.
3. Interstate Logistic is Simpler
The physical movement of goods across the state no longer requires endless paperwork and waiting in long queues at the border check. This makes doing interstate business easier and less expensive and risky than before.
4. Simple Tax Calculations
With the current integrated goods and services system, the tax is imposed on the sum that makes it easier for small and medium-sized businesses to measure and receive tax advantages for input goods and services.
5. Improved Threshold Limits for Startups
The new threshold cap for GST taxes on SMEs, especially startups is a huge success. The lower tax rate for smaller turnover businesses creates an ideal environment to help small organizations and startups thrive with a lower tax burden.
Who Needs to Register for GST?
It is very important for all applicable businesses or individuals to register for GST. you can apply online to do so. The following businesses/people requires registration under GST:
Documents Needed for GST Registration
You can register for the GST regime online. The documents that must be submitted for GST registration are:
What Do We Mean By GST Return?
GST returns are filed by an individual with tax authorities and details of income. The tax return document includes:
Therefore, the purchase and sales invoices should be made GST compliant. Businesses that aren’t composition dealers need this to be done every month. Thus, making it two GST returns when CGST and SGST are filed every month.
Want to Learn the GST Filing Process?
If you are keen to learn GST filing methods, you can join Classes of Professional Studies for the best gst classes in Delhi. Here, with extensive gst training, we provide a GST course also. Whether you are looking to build a career out of GST or want to improve your skills, you are just a gst course away! Anybody with a desire to be an accountant or tally operator can join our gst institute in Delhi.