Showing posts with label GST Registration. Show all posts
Showing posts with label GST Registration. Show all posts

What were the Effects of GST on MSME Business


Have you ever come across the abbreviation MSMEs while going through the newspaper (especially business columns) or watching business news on TV?  If yes its good, if not then let us inform you that MSMEs stand for micro, small and medium enterprises. MSMEs are considered to be playing a very important role as they are expected to offer higher employment by 2020.
This sector has also been contributing to the government’s initiatives; MAKE IN INDIA and SKILL INDIA.
The introduction of GST (Goods and services tax) led so many questions and confusion to rise. People had expectations, what all would be affected by it.  

Difficulties faced by the MSMEs on the introduction of GST

·         Whenever we try to do something, we are faced with the challenges that may or may not prove beneficial for everyone. So let’s take a look at what all situations were faced by the MSME, when GST came into effect.
·         During the initial times, there was a lot of confusion as everybody couldn’t grab the fundamentals of GST
·         There were even some loopholes in the infrastructure, which actually took little long to stabilize, Input tax credit was also noticed to be delayed in few cases, which ultimately affected the MSME industry.
·         Goods and services tax disrupted the supply chains, especially in the case of small traders, who were supplying to big manufacturing companies.

Effect on liquidity due to Daily Sales Outstanding (DSO)

Daily sales outstanding refers to the number of days, it takes to collect the payments once you have supplied the goods or services.
According to the reports published in the economic times, daily sales outstanding turned out to be higher, after the introduction of GST registration.

Changes in the cost of borrowing for MSMEs

Most the MSMEs had outstanding inventories, which would be taxed under the new GST regime. However, as these MSMEs lacked compliance infrastructure to have the tax invoices for those inventories.
This lead to the weak credit profile, due to which these MSMEs could not the avail the bank loans, which ultimately pushed them to approach non-banking financing options, And these non-banking financial entities charged a higher rate of interest in comparison to the banks.

Effect on the sales of MSMEs

Because of the introduction of the GST registration, there was a decline in the sales of MSMEs. GST brought more steps, which caused delays in the whole MSME Registration procedure. This also led to high costs, which was not under control.

Future Expectations

Once MSMEs become the part of GST regime, these would be a part of larger compliance climate. There would be a better level of preparedness and discipline in conducting the business.
Our government of India is also committed to providing support to these MSMEs, ultimately would take a positive turn for everybody’s benefit.
These were all the effects of GST registration on MSMEs, but in the long run it would benefit us all.
Source url - https://enterslice1.weebly.com/blog/what-were-the-effects-of-gst-on-msme-business

What is GST registration processing time?


Our intent of writing this blog is to educate you about the GST registration processing time. While establishing a new business, many will suggest you not to obtain GST registration since it's not mandatory for the companies generating turnover under the threshold limit. But let us tell you that acquiring company registration isn't sufficient. GST has several benefits to offer to the start-ups and entrepreneurs. Hence, we recommend you to get your business registered with GST.
In this blog, we have tried to clear most of your doubts regarding GST (Goods and Services Tax) registration. The topics covered are as follows:
·         What is GST?
·         Reasons to obtain GST registration in India
·         Who are all required to register their business under GST law?
·         GST registration processing time

What is GST?

GST is an indirect tax levied on the suppliers of goods and services by the government of India. GST cancels all the indirect taxes such as VAT, sales, excise, retailer tax, etc. The Act came into force in India, on 1st July 2017. Goods and Service Tax law in India, levies on every value addition.
For instance, a manufacturer of chocolates buys milk, sugar, cocoa powder, etc. mixes them and bakes into chocolates. After being prepared as chocolates, the input value of the product increases.
The chocolates are further packed and labelled by the warehousing agents. Here's another value addition after which the warehouse sells them to retailers.
The retailers then package the chocolates into small quantities and invest them in the market of chocolates thus increasing its value.

Reasons to obtain GST registration in India

There are a plethora of reasons for acquiring GST registration for your business. We have enlisted a few of them below:
·         Removes the cascading tax effect
GST removes the cascading tax effect on the sales of goods and services. It will directly impact the cost of goods. As a result, the cost of goods goes down.
·         Lesser compliances
Unlike other forms of registrations, GST registration has got quite a fewer compliances to follow. Plus, they are made pretty easy.
·         All activities related to GST are entirely online
GST related activities such as registration, filing returns, application for refund, and response to notices, everything is online.
·         Registration threshold is set very high
The threshold limit for GST registration is set quite high which is Rs. 20 lakhs (Rs. 10 lakhs in North-Eastern states and Hilly states).  Small-scale businesses are exempted from the tax.
·         Legal recognition
The supplier of goods and services with GST registration receives legal recognition, and hence, they don't face any legal complications later.
Apart from above-described advantages, there are several other reasons for registering your business under GST law such as composition scheme for small businesses, regulating the unorganized sector, defined treatment for e-commerce, etc.

Who are all required to register their business under GST law?

Following are the people who are supposed to obtain GST registration of their business:
·         Existing taxpayers registered under any of the VAT, CST, Excise/Service tax regimes;
·         A Casual taxable person who is an Indian taxpayer planning to undertake business for a limited time in any particular area;
·         New taxpayers whose annual turnover is above Rs. 20 lakhs and Rs. 10 lakhs, depending on the states they reside in;
·         A Non-Resident taxable person who is a foreign entity;
·         Online aggregator such as Food Panda, Amazon, Flipkart, etc.;
·         Other taxable people who fall under the reverse charge mechanism.

GST registration processing time

If all your documents are true and valid, then the GST registration processing time will take only 3-5 working days if you choose Enterslice. We are known to provide GST registration in the least possible time. Within 3-5 working days, we will offer you the GSTIN number of your business. 
Source url - https://enterslice-32.webself.net/blog/2018/12/22/what-is-gst-registration-processing-time

Why do you need GST Registration?


GST registration is obligatory for every entity involved in the buying or selling processes in India. If the business' annual turnover crosses the threshold limit, then it becomes mandatory for that particular person or entity to get the business registered under the GST Act.
On 1st July 2017, in India, the GST Act came into force that changed the lives of many entrepreneurs. GST is one of the most revolutionary tax reforms that took place since the independence of the country. For many, introducing GST wasn’t a good idea, however, for many, it was a brilliant idea. The thoughts of people varied a lot. And that was because they lack the knowledge of GST.
Therefore, in this blog, we are going to discuss GST, GST registration and its benefits. So, let’s start with the introduction of GST registration.

What is GST?

GST stands for Goods and Services Tax. It’s an indirect tax that replaces all other indirect taxes such as VAT, excise, service, sale, custom, etc. in India. Typically, GST can be defined as an indirect tax levied on the supply of goods and services. Therefore, it is essential for every goods and services supplier to obtain GST registration. But let’s first find out what GST registration means.

Definition of GST registration

GST registration is the process of registering any company or business under the GST Act. Under this Act, a business gets a PAN-based15-digit registration number called GSTIN. As per the GST Act, businesses whose annual turnover is more than the threshold limit which is Rs. 20 lakhs (Rs. 10 lakhs for Northeast state and hilly state) are mandatorily required to get the GST registration done.
GST registration is obligatory for availing Input tax credit on the purchase. As per the latest amendment, new GST registration is mandatory for every business such as e-commerce, export or import business, online aggregator, foreign supplier, casual dealer, etc. irrespective of their turnover in a financial year.
For a complete GST registration process, click here.


Benefits of GST Registration

The suppliers can avail various benefits of obtaining GST registration. Especially small businesses and start-ups, irrespective of their turnover, can benefit their business in many ways. The advantages of registering with GST are as follows:
·         Recognized as a legal supplier
Once you have registered your business under GST, you receive the recognition of legal supplier of goods and services.
·         Provide an input tax credit to customers
Because you have registered your business with GST, now you're legally recognized and can issue taxable invoices. In turn, customers can receive input credit on their purchases. This, in turn, will help businesses to expand their customer base and make it more competitive.
·         Compliant and better ratings
GST registration ensures that the business is compliant and scalable without any hindrance in future registration. Additionally, compliance rating is maintained under GST, and if it's done properly, it can attract additional business.
·         Lets businesses take a better stand
Again, registering under GST, your business gets recognition, and due to the same, you can easily apply for bank loans, rent premises, etc.
·         GST improves ease of doing business in India
It is one of the biggest benefits that GST registration offers. For those who want to start a business in India can, now, easily establish by registering itself under the GST Act. There are a few compliances in GST and many tax exemptions for start-ups in India with certain conditions.

Final words

Apart from the above-described benefits, other benefits of registering your business under GST include the elimination of double taxation, making inter-state sales without much restrictions, etc.
If you have any concern regarding the registration process or if you're looking for the best consultant for GST registration, then contact Enterslice. We will get your business registered with GST in the least possible time.
Source url - http://enterslice.strikingly.com/blog/why-do-you-need-gst-registration

How to cancel GST Registration?


GST registration is still one of the most confused and talked topics in India. Due to a little knowledge on the same, people and industry professionals are unable to figure out when and where to get the GST Registration done.
Generally, every business with a turnover more than Rs. 20 lakhs (except businesses in hilly states and North-Eastern states) is supposed to get the GST registration done. In hilly areas and North-Eastern States, business, with turnover more than Rs. 10 lakhs are required to get the GST registration done.
We have covered four major topics in this blogs. Those are as follows:
·         What is GST?
·         When is GST registration required?
·         When to cancel GST registration?
·         How to cancel GST registration?


What is GST?
GST stands for Goods and Services Tax. And every business with certain criteria and turnover above the threshold capital is supposed to get the GST registration done.
GST is an indirect tax levied by the Government of India on the supply of goods and services. GST has superseded various indirect taxes imposed earlier on the supply of goods and services and has provided an extreme comfort to many consumers and suppliers.
On 29th March 2017, the Goods and Services Act was passed in the Parliament that came into effect from midnight of 1st July 2017. GST is considered one of the biggest economic reforms of India. GST law in India is a multi-stage and destination-based tax levied on every value addition.
When is GST Registration required?
GST registration is required in the following cases:
Ø  When the turnover of a business exceeds RS. 20 Lakhs (Rs. 10 Lakhs for Himachal Pradesh, J&K, Uttarakhand, and the North-Eastern States.
Ø  When the individual is registered under the Pre-GST law such as VAT, Excise, Services Tax and more.
Ø  Agent supplying online information and database access or retrieval services from a place outside the country to a person in India, other than a registered taxable person.
Ø  A person supplying via e-commerce aggregator.
Ø  A supplier and Input service distributor.
Ø  Non-Resident taxable person.
Ø  Casual taxable person.
Ø  People paying under the reverse charge mechanism.
When to cancel GST Registration?
If you don’t come under the above-described categories, then you don’t need to register your business with GST. If you ever fell in the above categories but, now, you aren’t any part of it then you must withdraw or cancel the GST Registration. Below you can find a few common cases when you will need to cancel GST registration:
Ø  Closure of business;
Ø  No requirement to pay GST ;
Ø  Transfer of business ;
Ø  Change in the constitution and no business activity for at least one year;
Ø  When the turnover goes under Rs. 20 lakh;
Ø  If the taxpayer died, legal heirs can opt to cancel the GST Registration.
Likewise, there are many other cases, when GST registration can be canceled or surrendered.
How to cancel GST Registration?
GST registration can be canceled in the following three ways:
Ø  By Registered Person
Ø  By GST officer
Ø  By Legal Heir
Below we have described a few steps to cancel GST registration without any hassle:
Step1: Login to the GST Portal and click on the Cancellation of Provisional Registration.
Step2:
·         The cancellation page will open.
·         You GSTIN (Goods and Services Tax Identification Number) and the name of the business will display automatically.
·         You will be asked to give a reason for the cancellation of GST registration.
Step3: You will be asked to give details of any tax invoices during this month.
Step4: Fill up the details of authorized signatories and place.
Step5: Sign off with EVC (Electronic Verification Code) with you’re a proprietorship or partnership.
Note: LLP and companies must mandatory sign with DSC i.e. digital signature.


How to apply for GST Registration in India?


If you are looking for GST registration in India, then you are at right place. Here we will make you learn about the GST registration process in India.
GST Registration, which is also known as goods and service tax Registration which is mandatory for the companies, whose turnover exceeds Rs. 20 lakh or 10 lakh in some special cases (North eastern states). It was introduced in India on 1st of July, 2017 to remove the multiple taxes at different levels.  After GST registration you are allotted with the PAN-based 15 digit GST Registration number.
In some cases running your business without GST Registration is considered an offence and will attract heavy penalties.

 Who has to go for GST Registration?

Below are the few cases of Mandatory GST Registration:
·         All the individuals who are already registered with VAT, Excise, Service Tax etc.
·         Every e-commerce business has to apply for GST registration, For example flipkart, amazon, snapdeal etc.
·         All the businesses whose turnover crosses the limit of 20 lakh and 10 lakh in some special cases(north eastern/hill states) have to go for GST registration.
·         Any existing taxpayer, who is planning to dabble into any kind of new business, has to apply for the GST Registration. An advance payment needs to be paid during the online filing of GST registration.    

Process of GST Registration in India

If you are looking for a GST Registration, Enterslice has a team of experts and professionals to help and get GST Registration number within three days.
 Steps to be followed-
·         You need to visit the web portal of GST Registration and click on the new registration.
·         After that, you need select the option of new taxpayer and fill the following information-
1.       Legal name of your business
2.       Location of your business
3.       PAN of your business
4.       E-mail address
5.       Mobile number
·         The moment you fill in the above details, you will be receiving the one time password for the purpose of verification.
·         An application reference number will be sent to you via E-mail or text message, after submitting the GST Registration application.
·         A GST officer will inspect your GST application. If your application is approved, it will be sent for further approval, where you may need to present few more documents related to your business.

Documents need to be handy, while GST Registration

·         Pan of the applicant
·         Identity and address proof of all the promoters of the Business
·         Address proof of the place of business
·         Proof of Registration of business, or partnership deed in case of partnership and registration certificates.
·         Bank account details of the business
·         Class 2 or Class 3 DSC for signatories or OTP Verification via Aadhar

Advantages of GST Registration

·         It removes the multiple taxes, which were charged. And it serves the motive of one nation one tax.
·         Paying a single duty makes the whole taxation process much simpler and easier.
·         Being the limit of GST Registration higher, It exempt the small scale businesses from paying the taxes.
·         Compliances are made effortless
For more information, contact us on 9870310368.
Source url - http://entersliceindia.blogginger.com/how-to-apply-for-gst-registration-in-india


What is the impact of GST on e-commerce?


The e-commerce businesses are wide spread across the globe and are clearly overpowering the physical retail businesses with the digital distribution. But it has always been the goal to capitalize their e-commerce industry and apparently is quite successful in that.
When we talk about the e-commerce industry, what really comes to our mind is the global audience. An audience which is in control and getting their goods and services delivered to them conveniently at their doorstep. The keen e-commerce industryhas been observant of the consumer activity, tracking their behaviours via cookies on the websites to induce more relevant search results and attracting their attention. On top of that, they launch several schemes and discounts in order to continue with their expansion of horizon. Many smartphone users and digital device users not just with the speedy Wi-Fi connections but also through the 4G technology have boosted their operation which in turn boost the e-commerce industries via minimizing the gaps between the known popular brands and the mass population in demographics. The targeted population here is of the most active class of people, the youth. This goes on with reaching the semi-urban areas, where the physical outlets of the big brands are less and commerce shopping comes handy in these regions then. But the question here arise, is how the newly implemented GST law has affected or impacted the e-commerce empire?
What are the operators of E-commerce Under the GST Law?
Before the introduction of the GST law, there were separate taxes like VAT and CST etc which were to be paid by the sellers themselves to their respective state orcentral government. The e-commerce collects tax at the rate of just 1% it breaks as (0.5% of central GST + 0.5% of state GST), this is the net value of all the supplies that are taxable and the amount of tax collected from is called the TCS which is a short abbreviation of tax collecting at source. This TCS is applied over the collection of 1 month that is to be paid to the government.  The amount of TCS can be seen under the GST registered supplier’s GSTR-2 on whose behalf the TCS is collected.
All of the e-commerce operating sellers are supposed to submit a statement online with regard to the details of all the products that are sold by the respective sellers to the GST registration portal and the TCS via the form number GSTR-8. These submitted details by the respective sellers will be verified or matched with the seller’s furnished details in their form. In case both of the details are not matching, the seller and the e-commerce sales operating seller and the supplier are sent a notice mentioning the fact and to correct it.
The impact of GST on e-commerce industry sellers in the marketplace
-          GST implementation has increased the scope for the sellers by eliminating the  cascading effect of multiple taxes.
-          Because the GST taxation rates are same across the nation, the sellers no longer have to deal with the different taxes of the different states providing them with some degree of ease.
-          The sales that are executed on the inter-state level have now become a lot easier because the sellers no longer have to keep and maintain warehouses reducing their rental payments over inventories which in turn reduce the product prices.
-          The not so convenient impact of GST on e-commerce involves the matching of submitted forms by the suppliers and the sellers. If these don’t match though, both the parties get notices regarding the mismatch increasing the complexity of their business.
-          The sellers participating in the business through e-commerce are not eligible for the composition scheme.
-          These e-commerce sellers are supposed to be mandatorily having a GST registration and this shall be irrespective of their annual turnover.
-          No separate GST registrations are required for its sales in multiple states via e-commerce operators.
If you want to know more about the GST Registration and its impact on the e-commerce then you may anytime contact Enterslice where we are 24/7 hr available to help you with perfect solutions whenever you need to get in touch with us.
Source url - http://enterslice.over-blog.com/2018/10/what-is-the-impact-of-gst-on-e-commerce.html


Get More Information about GST Registration


The GST law makes it mandatory for many to apply for a GST registration. This article will cover multiple points under several different headings regarding GST registration in India.
What Is The Prescribed Threshold Limit for GST Registration?
The threshold limits of GST registration depend upon state to state. In case aggregate turnover of a person or entity is more than Rs 20 lakhs, then they would have to apply for GST registration. However, this limit for the GST registration is different for some special states like the north-eastern states of India including Sikkim and Jammu and Kashmir.
The aggregate annual turnover here means all the taxable and the non-taxable supplies along with the exports of goods and services of a person that’s having the same PAN. The aggregate annual turnover doesn’t include all the values of the supplies on which there’s a tax levied on the basis of the concept called reverse charge basis i.e. inward value supplies.
Who Require GST Registration?
Those falling into the category of a mandatory Online GST registration under the GST act are given below:-
·         Those individuals that make an inter-state supply which is irrespective of the above mentioned threshold limit for GST registration.
·         The casual individuals that are taxable, and will be required to get their GST registration and again, irrespective of the threshold limit.
·         Also the individuals required to pay any taxes under the reverse charge.
·         All of the taxable individuals who are non-resident.
·         Those individuals that needs to do tax deduction under the section 37 for TDS
·         Those agents that work for the suppliers.
·         The individuals that are input service distributors.
·         Those who do business and supply the goods and services via the means of electronic operations like the e-commerce websites.
·         Those that are the aggregators supplying any service under some brand name or certain trademark.
There are certain situations other than the above mentioned scenarios
1.      When a supplier makes some taxable supply of goods or services and their aggregate annual turnover is more than 20 lakhs then it is required for them to apply for New GST registration in India.
2.      The same as mentioned in point 1, for the suppliers that are operating from the states of the north-east, Sikkim, Himachal and Jammu and Kashmir. But here the annual turnover will be at a threshold limit of Rs 10 lakhs.
3.      Those individuals who were already registered under the previous tax structure pre-GST.
What is The Time limit for GST registration procedure?
Those eligible for GST registration must get their registration done within the time frame of 30 days from the first day they become eligible for GST registration.
What are the other aspects of GST registration?
There needs to be always a separate GST registration for business with multiple verticals as it becomes small units of different businesses irrespective of the state they are operating in. Such an option would be open to those individuals who must have their PAN card number available for Online GST registration and in case of the non-resident individuals, a GST registration can be granted on the basis of other documents in the absence of a PAN card number and they will be allotted a unique identity number. Every person that wants to apply for GST registration must have a PAN card though.
Source url - http://enterslice.over-blog.com/2018/09/get-more-information-about-gst-registration.html

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