Whether you are a startup or small business, the 5 Hacks of GST can help you in reducing your tax burden. By following these simple rules, you can be sure that you will be able to manage the new tax system without losing any money.
Make bank transactions while paying any price above Rs20,000 in a single day:
Using a credit card for making bank transactions can make sense for some customers. It can provide a safe way to make a large purchase and it can help merchants avoid fraudulent purchases. However, there are also times when it may be best to use cash.
When it comes to cash, it's important to understand the rules that govern cash transactions in India. These rules are based on the Income Tax Act. You need to know what the rules are before you can start making bank transactions. you can take the help of an GST Registration Consultant in Bangalore.
The limit on the number of cash transactions you can make in a day varies from one bank to the other. Generally, you're allowed to make between 10,000 and 50,000 transactions in a single day. If you do make more than that, you'll be required to pay a penalty. In some cases, the penalty is equal to the amount you received. You will also need to have a PAN card in order to make the transactions.
The government has also introduced a series of measures to encourage digital payments. For example, in the Union budget for 2014-15, the government launched a 10,000 Crore Startup Fund. This initiative aims to improve the startup ecosystem in India.
Another major move by the government was the introduction of UPI, a digital payment platform that allows you to transfer funds instantly between bank accounts. This is the same interface that you can use to pay for a movie ticket or buy a gift online.
Expenses can be claimed as business utility expenses:
Using your home as an office can be a great idea. You can get tax deductions for the cost of renting the space and for the utilities you use in your office. However, it is important to understand what qualifies as a "home office." Here are some of the rules.
First, the IRS has a very clear set of guidelines for how to claim a home office deduction. These are outlined in an IRS guide. You can also deduct 100% of your utility costs if you have a dedicated office in your home.
Next, there are many business expenses you can claim. For instance, you can write off your mortgage interest, paint, heat, insurance, and maintenance. You can also deduct your cellphone and internet access. A few other business expenses, you might want to take a look at include printing services, printing materials, and website hosting.
Finally, you can claim a number of the small business related activities such as sending out direct mail marketing materials. You may even be able to deduct some of your credit card processing fees. The IRS will be happy to accept a reasonable estimate of what you have spent on your business.
For instance, you can deduct a quarter of your electricity bill. This is because electricity is one of the tax deductible home office materials.
Other things you can deduct include printing services, website hosting, and packaging materials. The IRS says that you can't deduct everything, but you can claim the things you can't.
GST rate on gold will be finalized after fitting to approved rates structure of all items:
Currently, the GST is levied at 3% on the composite supply of gold jewellery. This rate is applicable on the value of jewellery as well as the cost of processing the gold. On further sale, the company does not have the option to claim input tax credit.
However, gold merchants can claim Input Tax Credit on job work charges and raw materials. Alternatively, they can opt for the reverse charge basis. Input tax credit is available for the gold jewellery purchased from a registered person.
The GST Council has placed rough precious stones at a special rate of 0.25%. In addition, consumers approaching goldsmiths will have to pay 5% GST. Dealers have to satisfy certain conditions before they can apply the tax on the value of the gold. The amount of CGST and SGST on gold jewellery is calculated as per Rule 32(5) of the CGST Rules.
The composition scheme under section 10 of the CGST Act is also available to the gold sellers. Under this scheme, the total GST on the value of the jewellery will be 3%. The rate will be calculated based on the price of the gold jewellery, service tax, and the cost of processing the gold.
The composite supply of gold has increased from 2% to 3% under the GST regime. This means that a buyer will have to pay Rs 1,354 more. Interestingly, the NIC has also updated its system for generating e-way bills for the transport of gold. A separate window for generating e-way bill for gold jewellery and precious stones has been introduced.
GST on real estate has a positive or a negative impact on businesses:
Until the implementation of Goods and Services Tax (GST), real estate developers had to pay several taxes. These included Entry taxes, Customs Duty, and Excise Duty.
The Goods and Services Tax have had a mixed effect on the real estate industry. While it has brought down black money, it has also led to a reduction in the cash component of constructions.
The main cost of a home loan is the interest payment on the principal. The tax rebate scheme does not apply to this.
Real estate developers will also be able to use input tax credits on cement and steel. However, these credits will not offset the fresh tax liability.
There is also a new tax called the cess, which will be collected on each esteem expansion. It is a revenue sharing mechanism designed by the GST council in India.
According to the aforementioned report, the real-estate industry is a major contributor to GDP. As a result, the introduction of the GST could be good news for the sector.
The main benefit of the new tax is that it will make cash dealings in real estate more transparent. It will also ensure that suppliers disclose transaction details.
The same rule applies to all business vertices. It will also eliminate falling duties on goods. It will put the US on a par with other remote countries. The real-estate sector in India is growing rapidly. It contributes 7-8% to the nation's GDP.
GST Billing Software made filing of GST easy for taxpayers:
Several businesses are opting for GST Billing Accounting Software to handle their finances more efficiently. Managing accounts, inventory, TDS, and accounting is now easy with these solutions.
MIBook is an all-in-one management platform that facilitates seamless transactions and compliance. It offers a multi-layered security system and audit trail functionality. It also provides a two-way connection with your invoicing system. Besides, it has access control rules and 256-bit encryption. It's also accessible on multiple devices. Its features include real-time IRN generation, E-way challan generation, and QR code generation.
Swipe is a powerful invoicing tool. It allows you to generate professional invoices in just 10 seconds. It also includes collaboration tools and video content. It also helps you manage your vendors, customers, and inventory. It has an e-invoicing feature, which makes it easy to monitor e-invoices under GST. You can send custom invoices with your logo to your customer's.
The MIBook Accounting App is a great solution for small and medium enterprises. It is a free invoicing and accounting tool that's fully GST-compliant. It can be installed on your computer or your phone. It has an easy-to-use interface, which can be customized to suit your needs. Its payment reminder feature can be used to alert customers about overdue payments.
It's also worth mentioning that it's free to download and use. It also has a trial version that lets you try out its premium features. Besides, it's compatible with iOS and Windows. It supports multi-currency and multi-user login. It's also equipped with payment gateway integration and email integration.
Reduce tax burden for entrepreneurs:
Whether you are in the business of manufacturing, distributing, or providing services, you will be able to reduce your tax burden with the help of the GST. However, you will need to register for GST in each state in which you sell your goods or provide your services.
The good news is that the implementation of the GST is relatively simple and straightforward. Getting started is a snap thanks to the GSTN portal. This will make filing taxes easy.
In addition, the government has made it easier for small businesses to access financing and other helpful services. These are aimed at supporting and encouraging the growth of these enterprises.
The new tax system will also reduce the overlap between State and Central taxes. In the past, businesses had to account for taxes on both the goods and services they provided. In addition, they had to calculate service taxes separately. This will simplify invoicing and tax filing.
The government also lowered the small-business tax rate by 25 per cent. This is a big deal for businesses as they contribute about 25-35% of tax revenue.
