The Goods and Services Tax (GST), which is assessed on all goods and the majority of service-oriented businesses in India, was introduced at midnight on July 1st, 2017, in an effort to combine all central and state indirect taxes into a single tax.
The new GST system successfully replaces the predecessor’s “previous tax structure,” which used the Value-Added Tax (VAT) system and many different types of taxes, including a central sales tax on commodities, a central excise tax, a luxury tax, an entertainment tax, as well as surcharges and cesses, for different types of businesses in different states.
This year, the GST will complete six years.
While the tax system has been fully implemented and is working smoothly, the laws are still evolving, with several changes and adjustments taking place.
The legislature is adjusting a number of common situations. Every now and then there are press releases, circulars, and notices informing or speculating on new amendments to sections of the GST Act, which means businesses need to pay a lot of attention.
MPVD & Associates, a leading GST consultant and CA firm in Kolkata, still attend to hundreds of inquiries where people still pursue misconceptions about the system. One, for example, is that you need to file three tax returns after GST registration, which is not the exact truth. The truth is that you have to file only one return, which is divided into three parts: outward supplies (sales); inward supply; and the final assessment.
A large number of people seeking GST registration in India are small-scale vendors, artisans, Amazon sellers, and MSMEs developed by young people who lack business experience and the overall aptitude for developing an enterprise or entity. It is quite common for people in India to regard GST registration as a prerequisite government rule that they must follow to start their business but not as a means to reap numerous tax benefits. GST consultants, as experts in the field, provide new entrants with the benefit of a comprehensive, human-level knowledge base and guidance, as well as the following advantages:
Remove any uncertainty, risk of error, and waste of time from the equation
Provide entrepreneurs with end-to-end knowledge of the system, its purpose, and its advantages.
Help businesses to develop a holistic approach towards compliance and not be intimidated by it
Educate and personally notify them about new amendments to the legislation and administrative notices.
Manage and guide entrepreneurs about the classification of duties under the GST
Improve the legal vocabulary of new entrepreneurs wherein they can use their compliance and eligibility as a taxpayer to grow their business, appear in trade shows and go for exports and global shipping
While there are detailed resources about GST registration all over the internet, there is limited knowledge about several important factors when selecting a GST consultant.
MPVD & Associates, a leading GST consultant in Kolkata, lists out the most significant ones, down below:
GST Consultants must be licensed Chartered Accountants holding a Certificate of Practice (CoP)
Registration on the GSTN portal is a legal requirement to be a GST consultant in India
Have at least 5 years of activity preparing ITR and Sales Tax in India
Must hold a GST Practitioner Certificate. The GSTP examination must be passed within 2 years of being registered as a GST practitioner.
The business environment is changing so rapidly in India that the need for well-connected expert consultation is becoming more and more crucial. MSMEs, in particular, are eligible to leverage many tax benefits and company incorporation resources, as the Corporate Law in India sees them as a beacon of hope and sustainable innovation.