GST (Goods and services tax) – India – Tally Solutions How GST will Reduce Tax Evasion It has been 4 months since GST has been introduced in India. Since its introduction on the 1st of July 2017, GST has subsumed various taxes like Service Tax, VAT, and Excise… The post How GST will Reduce Tax Evasion appeared first on GST (Goods and services tax) – India – Tally Solutions.
GST (Goods and services tax) – India – Tally SolutionsImpact of GST on Traders On October 14th, 2016 the Confederation of All India Traders (CAIT) signed an MOU with Tally Solutions in order to train their member businesses – roughly 6 lakh traders all over the country, on the subject of GST. While the focus is largely to enable the trading community to appreciate and accept the importance of […] The post Impact of GST on Traders appeared first on GST (Goods and services tax) – India – Tally Solutions.
Last updated on June 29th, 2017 at 07:04 pm GST is here. While the entire country gears up to welcome the biggest economic and tax reform since Independence, here is a checklist for you – so that you easily transition into GST. Here’s looking at 5 main things you need to know in order to have a seamless and effective transition to GST 1. Transition of registration Any dealer who is registered under State VAT, Central Excise, Service tax etc. in the current regime, and holds a valid PAN – shall be given a provisional certificate of registration in GST in Form GST REG-25. Post the issuance of the provisional registration certificate, the dealer will have a time of […]
In our last blog on this topic, we discussed about some of the positive impacts of GST on the manufacturers across our country. While the core benefits do stand out in terms of ease of doing business, and decreased costs on several fronts, there are certain aspects of GST which may not be conducive to the manufacturing sector. Let’s have a look. Negative Impact Reduced working capital Under the current taxation regime, stock transfers are not subject to tax, provided Form F is furnished. Input VAT credit is available in excess of 4% of tax paid on purchase, and the 4% thus reversed, finds its way into product cost. However, under the GST regime, stock transfers are deemed to be ‘supply’ […]
The “Make in India” campaign has provided a huge boost to India’s position on the world map as a manufacturing hub. According to Deloitte, India is expected to become the 5th largest manufacturing country in the world by the end of 2020. But more importantly for us, it promises to do wonders for the manufacturing sector – which has seen a stagnant phase in the last 2 decades and currently contributes to 16% of our GDP, as per IBEF. And that, surely means good news for our manufacturers. But is only a campaign going to turn things overnight? Probably not. While the government has a full arsenal of ideas, innovations, and strategies on how to make “Make in India” happen […]
India is a land of growing consumerism. With about 14 million retail points serving the end customer, in both urban and rural markets, it is a mammoth task for manufacturers – especially those of FMCG and consumer durables – to address the demand. What makes this even more challenging is the fact that as on today, 92% of the retail sector is unorganized – making it practically impossible for a manufacturer to cater to the last mile, solely on the strength of direct distribution channels. The inevitable saviour? The Indian wholesale market. A preamble Before we delve further on the impact of GST on the wholesale market, it is probably useful to understand the position of a wholesaler in the […]
India’s e-commerce sector is expected to cross revenue of Rs.12,000 crores in 2020, according to a joint Assocham-Forrester study. It is also expected that the sector will grow at an annual rate of 51%, the highest in the world. The Indian Government’s recent move of currency demonetisation and the vigorous push for digitisation in every aspect of life has only propelled the e-commerce industry’s growth. For a supplier on an e-commerce platform, it is certainly an exciting time to do business, given the accessibility to geographically distant customers, low operational costs, and the scalability that e-commerce provides. At the same time, taxation on e-commerce transactions in the current regime is ambiguous and different states have different levies of tax. The […]
If one looks at GST, it does seems like a boon for consumers – with the promise of lower prices; for businesses – with the promise of a simplified indirect tax regime; and for the Indian Government – with the promise of higher tax revenues. However, there is another stakeholder in the business ecosystem who stands to benefit immensely from the introduction and gradual roll out of GST – the Chartered Accountant. Here, I am going to list out the key benefits brought about by GST – that will surely make the life of a CA much easier and simpler, in the coming few months and in the future as well. Increase in clientele GST is a whole new taxation […]
The ultimate dream of every business is growth and expansion. One starts a business, earns profit, re-invests, earns more profit – and the cycle continues. You get your first customer, then 10, then 100. You start off in your immediate locality, and as you grow, you expand your operations to your city, your state, neighbouring states – till the entire country is your playground. However, in the current taxation regime, this is easier said than done. Apart from the obvious finances and efforts that businesses with customers in multiple states invest, there are also a fair amount of compliance costs and complications which are incurred – both by seller and buyer. Selling Goods to Customers in Other States Current Regime […]
Working capital is the lifeline of a business to carry out day-to-day operations. Managing working capital efficiently is a problem that plagues both small and large businesses. Inability to manage working capital may have adverse effects, including premature closure of businesses. GST, a comprehensive indirect tax system, is a few months away from rollout. Businesses need to understand the implications of GST on various day to day operations. Therefore, let us take a look at the ways in which GST impacts the working capital for SMEs and understand how you can use GST to your advantage. Introduction of “Furtherance of Business” as a concept for Input Tax Credit Under the current regime, input tax credit is available only on inputs […]