Reasons, why everyone should know about GST

The most trending topic today is GST. Everyone has their own views. Even i would like to share my perception on the impact of GST on SME. We can see many small traders’ around us like grocers, chemists, etcétera. Although all the filings under gst are online but they will not be able to do it on their own. They will have to hire a CA for all the compliances which will increase their cost.

GST is designed in such a way that if any party in the chain do not submit their returns or records of any of the parties does not match then the input credits will get blocked.

Small businesses which are not having turnover of more than ₹20 lakhs are exempted under GST, which means they do not have to get registered under GST. This implies nobody would like to buy from them as they won’t be able to claim input credit.

Compliance burden will increase as entities will have to file 3 monthly returns and one annual return. As all the filings are required to be done online which means SMEs will have to either upgrade their IT infrastructure or get the job outsourced which will increase their costs.

Since everyone in the chain is required to file returns to get input credit, no big entities would like to do business with small entities which can lead to loss of business.

I’m really grateful for the time you spent reading this blog. Keep smiling and let your smile change the world.

 

PS: None of the copyrights have been infringed intentionally.

(All the information is gathered from secondary sources).

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