The Goods and Services Tax (GST) and its introduction helped to remove the disadvantages of indirect tax laws in India. By imposing a single tax structure for different goods and services within India, the GST Act helps deliver transparency for business organizations. However, businesses, especially small and medium enterprises with limited resources and knowledge, still find it difficult to understand the different GST laws and associated procedures like the fulfillment of tax norms and the completion of filing deadlines. Therefore, GST compliance strategies are essential for SMEs to ensure their compliance. The following are the dedicated compliance strategies that SMEs in India can follow to streamline the GST compliance procedure.
Understanding of GST compliance and applicability
Business organizations must first take crucial steps in understanding the GST compliance procedures. Essential steps must be taken to identify the particular tax bracket in which the enterprise and its products and services fall. Moreover, businesses must evaluate their area of operations to ensure timely registration in every state where they operate. Through a complete understanding of the GST compliance procedures and their applicability, businesses can reduce their legal costs and hassles and can take the benefit of input tax credit as well. Professional accounting firms in Gurugram can assist small and medium enterprises with GST compliance and understanding its various rules.
Selection of the right tax scheme
Various schemes have been introduced under the GST Act ,allowing small and medium-scale enterprises to select the best that fits their requirements and overall turnover. For example, a composition scheme allows businesses with a turnover of less than ₹1.5 crore in a year to opt for easy and hassle-free return filing procedures and even access to lower tax rates. With a clear understanding of the various advantages and disadvantages of different tax schemes, businesses can select the best that fits their requirements and needs.
Maintenance of books of accounts
Businesses must ensure proper maintenance of books of accounts, like detailed records of all the invoices, purchase bills, debit and credit notes, et cetera. All the books must be tallied and approved by a professional chartered accountant as well. Proper maintenance of records with complete accuracy and in real-time ensures compliance with the GST laws and various regulations.
Return filing
Another essential aspect related to GST compliance is the accurate and on-time filing of essential returns like GSTR1 and 3 B. Timely return filing allows small and medium enterprises to get input tax credits and various other benefits as well. Moreover, they can protect their businesses from any kind of unnecessary penalty caused due to delays in GST filing. The best accounting and chartered accountancy firms can help deliver online business legal advice and even assist with the timely filing of GST returns.
Understanding of GST law changes.
Businesses must keep themselves updated with GST law changes and various updates. They must take me daily to update themselves with any changes in GST laws and can take the assistance of certified accounting firms and chartered accountants for the same.
Conclusion
GST compliance is a necessary step that SMEs must follow in India. With the assistance of professional accountancy and chartered accountancy firms, small and medium enterprises can receive necessary advice and consultation on various perspectives. Their assistance and advisory services can help with on-time GST compliance, return filing, and prevention of any penalties.
