5 Things an Entrepreneur Should Know About GST

Introduction: - Goods and services tax is a form of an indirect tax regime and has replaced any form of indirect taxes such as central excise service tax, VAT and entertainment tax etc. In this new era of globalizing business, every successful entrepreneur should know about GST services as much as possible. The following few would aid any successful businessman in grasping the intricacies of goods and services tax.

1. Input tax credit: - Under the old taxation Regime, there used to be a plethora of taxes to be paid when buying goods or services. During the GST era, input tax credit or ITC is allowed on the purchase of all goods and services used for business purposes. This system does away with the various types of output tax liabilities. Thus corporate tax services in Singapore allows the entrepreneur to grasp the benefits of the system of an input tax credit.

2. GST registration: - GST registration has now become mandatory for both big as well as small businesses. An entrepreneur should know his yearly turnover and thus should approach GST registration in a likewise manner. For businesses applying for GST services a unique fifteen digit number is assigned called the GSTIN. A business entity may not opt for voluntary registration of GST services. However, once GST is applied for then it becomes mandatory for the entrepreneur to pursue the same.

3. GST to be charged on every invoice: - Once GST has been registered the same should be charged on every invoice along with a GST number. GST number as previously mentioned is mandatory for anyone dealing with goods and services. In the case of intrastate supplies, the supplier must charge CGST and SGST on the respective invoice. Maintaining a record of these invoices is extremely important for every entrepreneur who wishes to pursue an honest business.

4. Rate of taxation: - Identifying the rate of taxation is essential for every entrepreneur once he has registered his company for GST. The rate of taxation may be found by visiting the best website. The tax rate of goods is mentioned on the GST website and similarly, taxation rates for services are also clearly mentioned in the same. Every successful entrepreneur must understand the rate of taxation to be levied on his goods and services before imposing the same.

5. Filling tax returns: - Filing returns is extremely easy on the GST websites and all taxpayers should make a note of this. Returns must be filed monthly and taxes must be paid monthly too. However small entrepreneurs may file quarterly returns through this have to be paid every month.

Conclusion: - Small and medium businesses are crucial to the economic growth of the country. Through digitization, many forms of indirect taxes have been completely done away with. In their place, GST has been implemented as an umbrella taxation regime. GST would not only benefit old businesses but would also become extremely beneficial for new entrepreneurs. Hence every entrepreneur should know about GST in detail because only through this taxation regime can he make the dream of his successful business an achievable reality.