GST is the most debated topic in India nowadays. Whether it is a business or a company, they all needs to get GST ready and follow the GST compliances adequately. However, they still have a lot of confusions regarding the compliance. Businesses, companies and organizations need to simply get registered under the GST and follow the basic rules that needs to be done before the due date. Government is taking measures following which you can calculate your ITC such as using a GST credit calculator. There are few things that you need to check before getting registered under the GST. In this post, we discuss four ways following which you can make your business GST-ready.
1. Liability to get Registered under the GST
Before getting registered under the GST, one needs to understand whether he or she is liable to get registered under the GST provision. According to the GST norms, there are few cases in which people do not require to get registered. As per the norms, here is a list in which it’s clearly mention who must register themselves under the GST provision.
2. Get Registered under the GST
Once you know whether or not you’re liable to pay GST, the next step is to check your liability. There are various schemes under GST in which you can get registered according to your annual income. People who are running a business and their annual income is less than or equal to 75lakhs, they need to pay GST. All they need to do is register themselves in the composition scheme in which nominal tax has to be paid. This scheme will help small businesses to gain a competitive edge in the market. They can do that by using the money that they saved due to the nominal taxation amount which further they can invest to grow their business.
3. Identify your HSN or SAC Codes
Another step after getting registered under the GST or in any scheme of GST is that you need to identify your HSN code or the SAC code. These are the codes given to the particular group of products or services by the GST Council according to which tax have to be paid. The codes are given according to the turnover for instance if your annual turnover i9s above 1.5 crore and less than 5 crore, you need to use a 2-digit HSN or SAC code and if the turnover is more than 5 crore, you need to use a 4-digit code for the supplies. There should be high-level of consistency as far as the codes of the goods and services are concerned. Also, you must know the GST rates of the products you are selling so that in future you are able to calculate credits. For calculating the credits, Government has introduced efficient GST credit calculator which is simple and easy to use.
4. GSTIN Registration
One of the most important step in the entire GST reform is that whether you’re able to take out the benefit of ITC or not. To make it happen, you need to provide a GSTIN to your vendor so that same can be used for generating the tax invoice. Similarly, you need to make sure that you’re capturing the GSTIN of your customer on sales that you made which is known as a tax invoice so that your customer is able to earn ITC benefit. This will help you to allow your business to run seamlessly and manage the vendors and customers effectively.
Following these steps, business persons can make their business GST-Ready and contribute to the Indian economy.