Posted On: 04-June-2021
The tax structure of India was complex before GST (goods and service tax). So many taxes were levied on businesses especially those businesses which used to travel in different cycles for example import, export, transportation, packing, buying and selling etc. All these compositions will be different from one state to another state. The process used to be hectic for SME (small medium enterprises) and MSME (micro small medium enterprises). Now GST has came into existence all the problems turned off and all taxes came under one roof.
By removing VAT (value added tax) and starting the GST made many business processes go in a right direction in this way many businesses have the chances to get Instant Business Loan.
In GST all states are following the same rules in this way small businesses and big business started opt GST because there is no confusion in the tax payment through GST.
There are many benefits which comes along with GST in that Small businesses can easily opt Small Business Loans easily.
GST can helpful for Businesses:
Registering your business with GST will helpful for you to claim input tax credits, by paying on GST business can cut down the tax on sales, and it is calculated on your business investment.
In case your business not registered with GST then they will carry on with Compliance on your business behalf. It will be beneficial for them in terms of getting GST Business Loan, it will create problem for your business. Buyers are cancelling their orders with those traders who doesn't have GST registration.
Ways to Get GST Certified:
Establish A Market Presence:
GST make sure to present business in the market because now it is mandatory for any small or medium enterprises to registered under GST act in this way many businesses group will come under GST primarily and secondarily by seeing the GST bills and all banking companies can provide Term Loans.
Eliminate Extra Taxes:
Before GST there used to be VAT (value added tax) it is termed as the tax on tax but now GST has eliminated those extra taxes.
Above all if you have registered with GST then there is much scope for getting instant business loan.
Finance Companies provide Easy Loans:
Composition scheme can reduce taxes:
If the turnover of small scale businesses are 20 lakh to 70 lakhs then it can be benefitted under GST by lowering the taxes through composition scheme.
Easy To Register with GST:
It's an easy process to register with GST there are some online procedures introduced and you register your business as quick as it is and you no need to worry about cascading taxes which come along with VAT.
The GST verified businesses has great advantage to present their business in the market, and there are many other benefits which are associated with the GST regulations in terms of tax exemption as well as getting instant loans.