Emergencies just happen and that’s the time which shows how much you’re prepared for your future. During the first month of GST implementation, there were businesses who were facing difficulties whereas some of them were well-prepared and ready to face it with a smile. Although the GST-roll out was already discussed and everyone was aware of it, people still considered it as a sudden step taken by our Indian Government. After the GST-roll-out, everything related to taxation has been modified and changed in order to bring prosperity and growth in the country. During such times, businesses need to prepare themselves beforehand to minimize the difficulties and reduce the complications that might take place after the change in the taxation system of the country.
In this post, we list four ways in which business can get prepared for any emergency situations that might occur in the country due to taxation reform or any other factor. Take a look.
1. Bank Account Saving
One of the best ways to prepare yourself for any such emergency situation, for instance, GST, first of all, make sure you follow the rule and get the GST registration done for your business needs and do a hefty bank account savings which can help you to come over the difficulties. If you have savings you need to worry about your business and other business objectives as you can invest the same to bring your work back on track. All you need to do is open a separate account which remains untouched and use it when you face any emergency.
2. Use of Naive Technology
After the GST roll-out, people are seeking the help of CA professionals for the complex GST calculations that are still not clear to everyone. One of the best ways to get ready for the new taxation reform is that adopt the new technology to simplify your tax-related tasks such as tax filing, claiming returns, availing the Input Tax Credit, invoice generation and so on. The government has taken steps to design some GST websites and GST software to help businesses with the taxation and registration processes and reduce the complications of the businesses.
3. Get Registered under the GST Schemes
Another simple yet reliable way to make your business survive in the GST regime is that go with the flow. It means get the GST registrations done so that you are free to form all the barriers and are able to avail the benefits under the scheme. Businesses can also register themselves under different schemes of GST as per their eligibility criteria. One such scheme is composition scheme which is meant for small and medium enterprise and businesses whose annual turnover is more than 20 lakhs but less than 75 lakhs.
4. Keep in Mind the GST Transactions
There are still a lot of confusion seen among people regarding the interstate and intrastate transactions. Businesses should be very clear about the fact that GST has three types of taxes that are being levied: UTGST/SGST, CGST and IGST. Although GST is a single tax reform, it has three subparts that are levied depending upon the type of transactions are being done by the businesses. For instance, IGST is levied on the inter-state transactions and UTGST/SCST and CGST is levied on the supplies of goods and services done within the state or union territory.
5. Educate Yourself About the Law
The last and the most essential way to keep yourself up-to-date according to the new taxation regime is that educate yourself about the rules and regulations of the GST. Attend workshops, seminars, hire professionals to get the latest updates on GST or register on a website that keeps you informed regarding the new updates in the processes of GST. Being a business owner, you need to keep yourself updated so that you know what is going on around you whether it is all about taxation procedures, latest GST news, knowing about GST registration processes and so on.
It’s important for every business to get ready for the new taxation reform and follow the rules and regulations thoroughly so that you don’t face any difficulty. In addition, if you face any issues, hire accounting professionals that can help you sort out your confusion. Also, adopt the new technology used for the complex calculations of the new taxation regime. This way you’ll be able to give your business a position that is up-to-the-mark.