GST for Small Businesses: Simplifying Tax Compliance

Download ebook

Firstly, let me ask you one question. Does anybody know the date of the GST implemented in India? Yes. Someone is right. In India, GST came into effect on 1st July, 2017. The main objective of introducing GST is to simplify the existing taxation system in the country. That streamlines indirect taxation and running a business will be very simple. Today, we are going to see about GST for mini businesses. Hence, GST helps to develop the infrastructure of our nation. So, you can be proud that your contribution is also there in the development of the nation. 

In this blog, we are going to see the GST for Small Businesses, their tax percentage, applicable goods, and advantages of GST. 

What is GST?

The Goods and Services Tax is a predecessor to VAT implemented in India on the supply of goods and services. VAT and GST both of them have the same taxation slabs. You will learn more about GST and small businesses through the GST course online provided by Henry Harvin, a leading training institute.  

Which Things come under GST?

There is no GST for the following things and services:

For Instance, there is no GST for Milk, Kajal, Eggs, Educational Services, Curd, Lassi, Health Services, Children’s Drawing & Coloring Books, Unpacked Foodgrains, Unbranded Atta/Maida, Unpacked Paneer, Gur, Besan, Unbranded Natural Honey, Fresh Vegetables, Salt, Prasad, Palmyra Jaggery and Phool Bhari Jhadoo, etc.

5% GST is there for the below-mentioned items

In other words, 5% GST is applicable for Sugar, Packed Paneer, Tea, Coal, Edible Oils, Raisin, Domestic LPG, Roasted Coffee Beans, PDS Kerosene, Skimmed Milk Powder, Cashew Nuts, Footwear (< Rs.500), Milk Food for Babies, Apparels (< Rs.1000), Fabric, Coir Mats, Matting and Floor Covering. Spices, Agarbatti, Mishti/Mithai (Indian Sweets), Life-saving drugs, Coffee, etc., (except instant).

12% GST is there for the below-mentioned items

Moreover, things like Butter, Computers, Ghee, Processed food, Almonds, Mobiles, Fruit Juice, Preparations of Vegetables, Fruits, Nuts or other parts of Plants, including Pickle Murabba, Chutney, Jam, Jelly, Packed Coconut Water and Umbrella, etc., will fall under 12% GST.

18% GST is there for the items mentioned below

In addition, Hair Oil, Capital goods, Toothpaste, Industrial Intermediaries, Soap, ice cream, Pasta, Toiletries, Corn, Flakes, Computers, Soups, and Printers, etc., will fall under 18% GST.

28% GST will be collected for the things mentioned below

Above all, Small cars (+1% or 3% cess), High-end motorcycles (+15% cess), Consumer durables such as AC and fridge, Beedis are NOT included here, Luxury & sin items like BMWs, cigarettes and aerated drinks (+15% cess), etc., will fall under 28% GST.

Types of GST

The primary GST slabs for all ordinary taxpayers are presently charged at 0% (nil-rated), 5%, 12%, 18% & 28%. There are a few lesser-used GST rates of 3% and 0.25%.

Moreover, the composition taxable persons will have to pay GST at lower or nominal rates such as 1.5% or 5% or 6% on their turnover. There is a concept of TDS and TCS under GST as well, whose rates are 2% and 1% respectively.

Why GST is implemented?

The concept of GST in India was proposed initially by the Kelkar Task Force on Indirect taxes in 2000. The objective is to substitute the existing complex and fragmented tax structure with a unified system. This simplifies compliance, decreases tax cascading, and improves economic integration. 

Which businesses will fall under GST?

Any trade, commerce, manufacturing business, profession, vocation or any other similar activity will be termed as Business under GST. It can either be a main or an subsidiary activity whether or not involving monetary benefits. Even, small business will fall under GST.

GST is broadly classified into:

• Integrated Goods and Services Tax (IGST)
• State Goods and Services Tax (SGST)
• Central Goods and Services Tax (CGST)
• Union Territory Goods and Services Tax (UTGST)

GST for Small Business

Yes. To register under GST is mandatory for a small business if you are supplying goods with an annual turnover exceeding Rs 40 lakh, whereas if the turnover is Rs 20 lakh for a small business as a supplier of goods. Whereas if that small business is engaged in the services, with turnover of more than Rs. 20 Lakhs then it should be mandatorily registered for GST. To avoid legal issues, it is better to file GST for Small Businesses too.

Henry Harvin GST Plus Course Certification

In this course, you will receive a 360-degree insight into GST Regulations, delivered by experts who speak at Aaj Tak, NDTV, and other notable platforms | Master Advanced Excel, Pivot Tables, Power Query, User Defined Functions, & more | Gain the most in-demand Certifications from Prestigious Institute Recognized by UKAF, UK Cert, MSME & Govt of India. You can learn GST Course Online through Henry Harvin’s flexible timings.

Key Highlights

Key highlights of this course is:

• 56 Hours of Instructor-Led Sessions
• 19 Hours of Live Interactive Doubt Solving Sessions
• 10 Hours of Live Master Sessions by Industry Experts
• 192 Hours of Self-Paced Learning
• Job-Ready Portfolio of 6+ Capstone Projects
• 31 Auto-Graded Assessments
• 12+ Industry Case Studies
• 84 Guided Hands-On Exercises
• 6+ Assignments and Mini Projects
• 2 Mock Interviews and 2 Hackathons
• Henry Harvin® Accounts Academy’s 1-Year Gold Membership 
• Guaranteed Internship with Henry Harvin® and in top MNCs like J.P. Morgan, Accenture & many more via Forage
• Get 3 in 1 Placement support through Placement Drives, Premium access to Job portal & Personalized Job Consulting
• 5 Hours of Mentorship by Industry Experts
• Earn Certification of Course from Henry Harvin®, Govt of India recognized & Award-Winning Institute and NSDC Certification
• Get 3 in 1 Placement support through Placement Drives, Premium access to Job portal & Personalized Job Consulting

About the GST Plus Course

GST Plus Training

This training course is crafted for extensive learning about GST Compliance and the usage of Advanced Excel as a GST Accountant. This GST Plus Training Course gives a 360-degree insight into GST regulations, delivered by experts who speak at Aaj Tak, NDTV, and other notable platforms. The GST for small businesses covers the latest trending topics such as GSTR 3B, GSTR 1, GSTR 2A, new provisions of e-Invoicing, and how to take ITC in case. Get to know about 11+ projects and Learn to Apply Advanced Formulas, Perform Data Analysis & Data Visualization, and Create Pivot Tables & Dashboards.

Why Henry Harvin® GST Plus Course?

• Trusted by 160+ Corporations, including Apollo Tyres, Crompton, Mega Cabs, HDFC, Tata Power, L&T, Whirlpool, Symphony, ICICI, JM Financial, Godrej, Hindustan Zinc, Honda, Berger Paints, Hero, Moser Baer, and more
• Trainers for the GST Plus Course have 20+ Years of experience and have been featured in shows on national media platforms such as Aaj Tak, NDTV, and others for expert views on GST
• Ranked No.1 GST Training Institute by BestCourseNews.com, India Today, and Tribune India
• Henry Harvin® has an alumni network of 4,60,000+ professionals in 23+ cities across India’s Oldest GST
• The first institute in India to formally launch a GST course in Dec. 2016

Skills Covered

In this course, the following skills will be covered:

• GST Registrations and Provisions
• GST Litigation Management
• Excel Dashboard
• Functions in Excel
• Power Query
• Data Validation

What You’ll Learn in this course

In this course, students will get to know about the following topics in detail.

• Input Tax Credit and ITC04
• Invoice Tax Payment
• Assessment of Audit
• Offenses and Penalties
• Combining Multiple Worksheets and Workbooks
• Dynamic Models in Advanced Excel

Job Profiles

Above all, after the successful completion of the course, candidates will be eligible for the following careers:

• GST Practitioner
• Tally Accountant
• Stock Maintainer
• Tax Consultant
• Financial Analyst
• GST Trainer
• Corporate Tax Specialist
• Indirect Taxation Specialist
• Compliance Manager

Conclusion

In this course, you will learn everything about GST. For instance, you will know about from registrations to penalties. Above all, GST is introduced to streamline the taxation in the country. There is a need for each and every company to file GST. So, there are plenty of opportunities available to one who completes the GST for Small Businesses: Simplifying Tax Compliance Course. 

Recommended Reads

1. Becoming a Certified GST Practitioner: A Step-by-Step Guide
2. 10 Best GST Courses in Chennai with Placement, Fees and Eligibility
3. Latest GST Jobs in India in 2024[Updated]
4. All About GST Courses: Role, Syllabus, Scope & Jobs in 2024 [Update]
5. How To Become a GST Practitioner?

Frequently Asked Questions

Q1. Ganesh is thinking of starting a joint business with a 20 lakhs turnover. Does he need to register this under GST for small businesses?

Ans: For instance, GST is mandatory for businesses with above 40 lakhs turnover (in case of goods manufacturing) and 20 lakhs (in case of services). In other words, if your business or services turnover is 40 or 20 lakhs respectively, there is no need to register for GST for small businesses like that.

Q2. GST comprises all the taxes. What are they?

Ans: Firstly, eight taxes of the central government fall under GST, that is Central Excise Duty for example. Secondly, seven taxes of the state government fall under GST for e.g. State VAT.

Q3. Can we use provisional GSTIN until a new GSTIN is issued?

Ans: Secondly, A provisional GSTIN (PID) can be used until the final GSTIN is issued. This would be converted into final GSTIN within a period of 90 days. PID & final GSTIN remain the same.

Q4. One of my colleagues is planning to trade grains and pulses with a yearly turnover of 50 lakhs. He has a doubt whether he has to register for the GST.

Ans: Above all, GST and Small Businesses like Grain and pulses which have not altered its form, nature, or condition are exempted from the GST. So, irrespective of the turnover your colleague is exempted from the GST. 

Q5. Could you please tell me about the duration taken to register under GST?                   

Ans: You will have 30 days to complete the registration formalities from the date of liability. 

Download ebook