What is GST- Goods and Services Tax?

What is GST- Goods and Services Tax?
Goods and Services Tax

GST-Goods and Services Tax introduced in 2016 in order to remove the multiple taxes levied on any product or services delivered. GST intended as a One nation one tax introduced a 5 tax slabs on almost every goods and services delivered.

Primarily the tax slab rates are Nil rate, 5% (primarily on agricultural produces and govt services), 12%, 18% and 28%.
Previously levied VAT varied a lot across goods and provincial states which made tax compliance complicated and continuously changing. Making business suffer due to highly complex design. GST with its introduction removed all the other taxes and made the simple tax slabs which are declared by the GST council and any exceptional changes in tax slab are communicated time and again.

The GST was introduced with an intent is to reduce the overall tax and increase tax compliance base of business. Various introduction like input tax credit also helps business in having more cash to carry business.

What is Input Tax Credit?

Input tax credit helps businesses in offsetting the GST paid by business for its input costs and expenses with the GST collected on the sold goods and services. This helps in reducing the tax deposit ​to be made by business and increase their working cash flow.

All registered business are mandated to file their monthly GST Reports of 20th of each month failing so results in penalties.

For any business registered in India carrying any business or financial activities they are required to get GSTIN - GST Identification Number to operate along with other mandatory documents.

For registering a business in India

You need to hire a good CA for registering the business as you need to fill up your AoA - Article of Association and MoA - Memorandum of Association and the other business application on MCA website.

The MoA lays down the essential details about the company, while the AoA includes the internal rules and regulations of the company

Some prerequisites before going to register your business are

  1. Thoroughly checking the business name you want to register for your firm with it should be thoroughly search from your side for any duplicity. A business name should be unique under the business category otherwise it will lead to delays in the registration process.
  2. The directors of the business should acquire a digital signature. Digital signature are issued by some registered firms in India you can purchase them directly through their websites online.

These comes handy in the registration process.

  • A business is required to get registering their business on MCA to acquire CIN - Company Identification Number
  • A TAN card which is required to file a tax.
  • GST number is procured later against the generated CIN and TAN.

To operate a business properly keeping track of financials its important logging all financial details on day to day basis is required.
These accounting logs are required for audits and taxation purpose.

GST software or Accounting books help in keeping track of sales and and expenses and help you in preparing your GST filing records for each month which can be directly uploaded on the GST portal.
The TAX compliance also requires keeping bills handy and business input ready for monthly and annual filing. A good business software greatly helps you in maintaining your taxes and compliance better.

How a Business software helps you in GST filing?

A business software like Jhattse Business helps you in managing your sales, expenses, maintaining taxes generating sales reports.

Key components required in your accounting software.

  • A good business software should be able to keep your sales and business expenses with bills on a single portal.
  • A multi login and roles is always helpful in sharing the information with your CA and staff with specific permissions in place.
  • Digital and Physical Invoices creation to share with your customers with correct tax calculation.
  • P&L calculation and Sales Analytics for each sale made along with the grouped products and services which helps you in finding which products are selling and which one need push.
  • Maintaining good business records is always beneficial in lowering your overall compliance cost and any unforeseen penalties.
  • Customers records are beneficial in finding out your valuable customers and connecting to them to find more business.
Jhattse Business Product Information

You should highly consider having a good tax software for your business at your disposal. And what better than a low cost business software at your tools. Check out Jhattse Business Products which offer most affordable business software.