Keep Your Business on Track
Taxes can be tricky, but not filing them can complicate your business, finances, and peace of mind. Filing GST is important to make sure your business follows government rules and avoids penalties.
What is GST?
Goods and Services Tax (GST) is a comprehensive tax system introduced in India to replace several indirect taxes. It operates under a dual structure:
- CGST: Levied by the Central Government
- SGST: Levied by State Governments
- IGST: Levied on inter-state transactions and handled by the Central Government
GST ensures that tax is applied at each step of the supply chain, reducing the tax burden and allowing businesses to claim input tax credits. Reach out to a GST Audit advisor in Chennai, if you wish to get GST filing done.
GST Registration & Thresholds
If your business has registered for GST, you need to file GST returns depending on the type of business or transaction. Here's what you need to know:
- Threshold for GST Registration:
- ₹40 lakhs for businesses dealing with goods.
- ₹20 lakhs for businesses providing services or a combination of goods and services.
- Special Category States have slightly different thresholds (₹10 lakhs for services and ₹20 lakhs for goods), including Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, and Sikkim.
- Composition Scheme:
- Small businesses with a turnover below ₹1.5 crore (₹75 lakhs in special states) can opt for the Composition Scheme. This scheme simplifies GST filing and allows businesses to pay a fixed percentage of their turnover as tax.
- Exemptions & Reduced Rates:
- Certain sectors like healthcare, education, and essential goods (e.g., food grains) are either exempt from GST or have reduced rates to keep things affordable for everyone.
Why Do You Need to File GST?
There are multiple reasons why you need to explore GST filing services in Chennai today.
- Legal Obligation: If your business crosses the turnover threshold, filing GST is mandatory.
- Claim Input Tax Credit (ITC): Timely filing helps you claim the input tax credit, reducing your overall tax burden.
- Business Credibility: Maintaining timely and accurate GST filings improves your business reputation with the government and clients.
- Avoid Penalties: Missing deadlines can lead to penalties and interest charges.
What Happens If You Miss Filing GST?
- Penalties & Interest: Failing to file GST returns on time can attract heavy penalties and interest.
- Loss of Input Tax Credit: Missing filing deadlines means losing out on tax credits, increasing your tax liability.
- Legal Consequences: Prolonged non-filing can lead to legal actions and disrupt your business operations.
Key Considerations When Filing GST
- Accurate Record-Keeping: Maintain clear records of all sales, purchases, and taxes paid.
- Know Your GST Rate: Different goods and services attract different GST rates. Ensure you're filing with the right rates.
- Timely Filing: Be aware of GST deadlines to avoid penalties.
- File the Correct Return: There are different GST returns based on your business type. Ensure you’re filing the right one to stay compliant.
Don't wait for a tax notice to realize the importance of timely GST filing.