The Goods and Services Tax, or GST, has ushered in an era of convenience and flexibility.
Never in the history of Indian taxation could an entrepreneur imagine that paying taxes can get as easy as this. All you need to file taxes and returns under GST is a computer with an internet connection and a few physical or digital documents.
Scroll down to find out how GST has made life easier for the next-gen entrepreneurs and how to download GST certificate after registering for GST.
The Advantages of GST for Entrepreneurs
Entrepreneurs, both big and small, have appreciated GST because of the following reasons:
- Ease of Compliance
The previous tax regime was infamous for multiple and multi-layered taxations, which often led to tax cascading and inefficient tax management. The problems were more for small businesses, as they often lacked the resources to handle the different tax-related laws and formalities.
The GSTN portal is a one-stop place for everything related to taxation, which includes taxpayer registration, payment, returns submission, and claims for a refund.
Hence, rather than running after various tax authorities to meet deadlines, entrepreneurs can now focus on business expansion activities, while the GSTN portal takes care of the rest.
- Increase in Registration Threshold
Previously, all businesses with an annual turnover of INR 5 lakhs in special category states and INR 10 lakhs in other states were required to pay Value Added Tax or service tax.
States like Himachal Pradesh, Uttarakhand, and North-Eastern states are considered as special category states.
Under GST, the ceiling has been raised to INR 10 lakhs for businesses in special category states and INR 20 lakhs for businesses in other states. Hence, you do not need GST registration if your business does not cross the threshold turnover.
Doubling the threshold leaves you with more cash in hand, which you can spend on anything you wish to.
- Composition Levy Scheme for Small Taxpayers
GST offers excellent benefits for small taxpayers. The Composition Levy Scheme is one such feature that entrepreneurs can use voluntarily to save taxes.
You may choose the CL scheme if your business’s annual turnover does not cross INR One crore (for other states) or INR 75 lakhs (for special category states).
Under the CL scheme, you, as the taxpayer, have to choose a fixed amount that you want to pay as tax every quarter. While other taxpayers have to submit two statements and one return every month, you can file returns every quarter by using Form GSTR-04.
However, if you opt for the CL scheme, you can not issue the GST invoice and avail the benefits of Input Tax Credit or ITC on the purchases you make.
Click here to learn more about the Composition Levy Scheme.
- The ‘Do It Yourself’ Model
With GST, filing taxes have become simpler. You do not need to hire a tax expert anymore to simplify stuff. The GST portal has everything you need to pay taxes effectively.
You can avail of the benefits of ‘Self-Assessment’ by visiting the portal. Many offline tools are available for free. As a result, you can compile and generate invoice data even when you are offline.
Once you enter invoice data, the system automatically populates your returns, thus enabling you to take action at one click of your mouse. You may also take the help of Computer Based Training materials or CBTs available there to enrich your knowledge.
- Cost-Effective Logistics
With the implementation of GST, the Octroi or Entry Tax system has been abolished. As GST follows a ‘One Nation One Tax’ model, you are free to take your goods or services to any part of India, without waiting for hours at various State entry checkpoints.
Due to GST, the time a vehicle has to spend on roads has come down drastically. As a result, the load on your inventory will come down drastically, and you can supply goods or services faster, thereby improving the quality of your balance sheet.
How Can You Download the GST Certificate?
To download your GST certificate, you have to visit the GST website and click on the Services tab. Then, you need to click on the User Services tab and download the certificate.
The GST reforms have played a major role in improving India’s rankings in the World Bank’s ‘Ease of Doing Business’ Rankings from 142 in 2014 to 63 in 2020.
As an entrepreneur, now is the best time to set-up a business if you already do not own one.