The present tax system in India is complicated, making it difficult for business owners to fulfill regulations. This is mainly due to there are different taxes that require being filed with numerous tax abilities. It comes as no revelation that Indians on average expend 241 hours each year on tax research and filing.
The new GST law will make the present tax system easier by changing different indirect taxes with a sole, uncomplicated tax. The GST will have two parts: Central GST that needs to be filed with the Centre and State GST that need to be filed with the State. This eases the whole process for businesses as each constituent of the GST has its own evidently defined tax authorities. Business owners will understand where to file taxes.
As the GST is an entire renovate of the present tax system, you can anticipate quite a few modifications in your financial observance needs. It may be a bit difficult to consider changing the way you have been dealing in business from very long time. Having new formalities, new tax groundwork steps, and new filing procedures to deal with is sufficient to throw you into panic. But, with a small planning and association – and by using an online bookkeeping Software – getting your business prepared for GST is in fact attainable.
Here are some of the business compliance needs for GST accounting and some methods that an online accounting system can facilitate.
The GST will have a four-tier tax arrangement including an advanced rate, standard rates, a lesser rate, and a nil rate. These rates are based on the type of goods and services you advertise. As GST has double components, these rates will be divided uniformly between the state and the Centre. For instance, if GST for a product is charged at 12%, then 6% will be charged by the state and 6% will be charged by the Centre. For expressway transactions, there is an incorporated GST that merges central and state GST constituents. This needs a big change in the approach you work out and check taxes for all your transactions.
An online accounting system is made to deal with even the most complicated tax calculations for you. You can fix diverse tax rates for diverse types of transactions, then include your online accounting system, work out on the tax for every sale and pertain it to your invoice right away.