gst-pe­dia for smbs

GST Shik­sha Hub for MSMEs From iON

PCQuest - - SMB CORNER - Com­piled by PC Quest Team

TCS iON has part­nered with Laghu Udyog Bharati to help MSMEs be cur­rent in their un­der­stand­ing of GST. The GST Shik­sha hub aims to pro­vide rel­e­vant in­for­ma­tion on GST to all MSMEs on a real-time ba­sis and help­ing MSMEs across In­dia to be up­dated on any GST-linked de­vel­op­ment. The part­ner­ship will ben­e­fit MSMEs in fa­cil­i­tat­ing self-learn­ing, with any­where any­time ac­cess to study ma­te­rial en­abling them to cre­ate a tech­nol­ogy sup­ported col­lab­o­ra­tive work place.

TCS iON will also work to in­te­grate Laghu Udyog Bharati’s ex­ist­ing GST learn­ing con­tent into a dig­i­tal medium, pro­vid­ing MSMEs an on­line al­ter­na­tive to up­grade their GST knowl­edge. With the avail­abil­ity of dig­i­tal learn­ing con­tent, Laghu Bharati Udyog will be able to reach MSMEs in re­mote ar­eas, en­sur­ing avail­abil­ity of the lat­est GST in­for­ma­tion.The GST Shik­sha hub is be­ing hosted on TCS iON Dig­i­tal Learn­ing HUB.

GST-en­abled bank­ing for SMEs from DBS and Tally

DBS Bank In­dia and Tally So­lu­tions have part­nered to launch a con­nected bank­ing plat­form to en­able con­ve­nient GST pay­ments and ac­count­ing pro­cesses for SMEs.The so­lu­tion avail­able to DBS Bank’s SME cus­tomers on the GST-ready ver­sion of Tally ERP 9, al­lows man­age­ment of GST and sup­plier pay­ments en­tirely within the ERP. With a sin­gle lo­gin, SMEs can make pay­ments, track pay­ment trans­ac­tion sta­tus and au­to­mat­i­cally send pay­ment re­ceipts, along with sup­pli­ers’ in­voice de­tails.

Through this in­te­gra­tion, its SME cus­tomers can en­joy a host of ben­e­fits, such as: • Con­nected Bank: e-Pay­ments can be sent from the Tally plat­form to DBS Bank in a sin­gle click Easy Track­ing: Pay­ment sta­tus and trans­ac­tion ref­er­ences can be tracked on a sin­gle dash­board in Tally In­stant Ap­proval: The DBS Bank IDEAL mo­bile app of­fers ap­proval on-the-go Au­to­mated Ad­vice: Ven­dors can be kept in­formed with au­to­mated trans­ac­tion ad­vis­ing Se­cu­rity: The high­est stan­dards of en­cryp­tion are as­sured while mak­ing and ap­prov­ing pay­ments

GST ready Sell­ers Through Ama­zon ClearTax part­ner­ship

Ama­zon In­dia has part­nered ClearTax to help sell­ers on its mar­ket­place file and rec­on­cile their tax re­turns con­ve­niently as per the up­com­ing GST roll­out. ClearTax Biz and Cleartax Biz+, two soft­wares launched by ClearTax, will be avail­able to the Ama­zon In­dia sell­ers free of cost for the first two months af­ter signup. Sub­se­quently, the soft­ware will be pro­vided at a 30% dis­count for sell­ers reg­is­tered with Ama­zon In­dia.

Busi­nesses sell­ing on­line have an in­creased bur­den with GST. They have to claim TCS, Tax Col­lected at Source and in­put tax credit prop­erly on time. De­lay in GST ac­tions poses sig­nif­i­cant risk to work­ing cap­i­tal of these sell­ers. The ClearTax GST soft­ware for Ama­zon sell­ers solves these prob­lems in a sim­ple three step process un­lock­ing work­ing cap­i­tal and re­duc­ing risk in their busi­ness.

Ama­zon In­dia re­cently launched ‘A-Z GST Guide’ pro­gram that has trained and en­abled thou­sands of sell­ers on the plat­form get ready for GST. The on­line por­tal pro­vides re­sources in the form of tu­to­ri­als, blogs and free on­line train­ing ses­sions.

Doubts have been raised re­gard­ing the ap­pli­ca­bil­ity of the Mar­gin Scheme un­der GST for deal­ers in sec­ond hand goods in gen­eral and for deal­ers in old and used empty bot­tles in par­tic­u­lar.

Dealer Mar­gins Un­der GST in Am­bi­gu­ity

Rule 32(5) of the Cen­tral Goods and Ser­vices Tax (CGST) Rules, 2017 pro­vides that where a tax­able sup­ply is pro­vided by a per­son deal­ing in buy­ing and sell­ing of sec­ond hand goods i.e., used goods as such or af­ter such mi­nor pro­cess­ing which does not change the na­ture of the goods and where no in­put tax credit has been availed on the pur­chase of such goods, the value of sup­ply shall be the dif­fer­ence be­tween the sell­ing price and the pur­chase price and where the value of such sup­ply is neg­a­tive, it shall be ig­nored. This is known as the mar­gin scheme.

Fur­ther, no­ti­fi­ca­tion No.10/2017-Cen­tral Tax (Rate), dated 28.06.2017 ex­empts Cen­tral Tax levi­able on in­tra-State sup­plies of sec­ond hand goods re­ceived by a reg­is­tered per­son, deal­ing in buy­ing and sell­ing of sec­ond hand goods [who pays the cen­tral tax on the value of out­ward sup­ply of such sec­ond hand goods as de­ter­mined un­der sub-rule (5)] from any sup­plier, who is not reg­is­tered. This has been done to avoid dou­ble tax­a­tion on the out­ward sup­plies made by such reg­is­tered per­son, since such per­son op­er­at­ing un­der the Mar­gin Scheme

can­not avail in­put tax credit on the pur­chase of sec­ond hand goods.

Thus, Mar­gin Scheme can be availed of by any reg­is­tered per­son deal­ing in buy­ing and sell­ing of sec­ond hand goods [in­clud­ing old and used empty bot­tles] and who sat­is­fies the con­di­tions as laid down in Rule 32(5) of the Cen­tral Goods and Ser­vices Tax Rules, 2017.

GST Im­pact on SMEs and credit growth

It is spec­u­lated that GST has made bank­ing ser­vices more ex­pen­sive. The most strik­ing im­pact was on de­ploy­ment of the ATM which has be­come more ex­pen­sive now with a tax rate of 28% im­posed on it. How­ever, there is a bright side to the chap­ter of GST as well. With the dig­i­tal­iza­tion ini­tia­tive, now there will be trans­parency in busi­ness in­for­ma­tion and tax­a­tion de­tails.

The money­len­ders are hope­ful with the sin­gle pro­ducer tax im­posed which would def­i­nitely cre­ate a com­mon mar­ket across In­dia thus boost­ing credit growth. Ear­lier get­ting a loan for fi­nanc­ing mi­cro and small scale in­dus­tries was a big night­mare. The ac­counted loan sanc­tioned in this sec­tion was just 0.1%.

In In­dia, there are nu­mer­ous SMEs, start-ups and grow­ing busi­nesses that need fi­nan­cial sup­port the most, but the banks failed to play their role of lend­ing money here. Here are some of the ob­sta­cles that kept the banks away from ex­tend­ing their help­ing hand to the needy busi­nesses: • Lack of Fi­nan­cial In­for­ma­tion: The fi­nan­cial in­forma- tion pre­sented by the SMEs is not ad­e­quate, even their le­git­i­macy is ques­tion­able at times. This is the big­gest rea­son that makes the bank turn their back to the pleas of these busi­ness ven­tures.

• No Track Record: Young busi­nesses fail to present a sus­tain­able track record and banks rely on the his­tory to process the loan

• Lack of Se­cu­rity: Banks need to scru­ti­nize a lot of things be­fore re­leas­ing the funds to make sure that the banks don’t in­cur loss. In case of SMEs the un­cer­tainty is huge, so they need some kind of guar­an­tee to en­sure the pay­back.

With the im­ple­men­ta­tion of GST, the de­tailed in­for­ma­tion of the busi­nesses and taxes would be avail­able in an elec­tronic for­mat and it would be much eas­ier for the banks to process the loans for SMEs and self-em­ployed port­fo­lios. Once the full cy­cle of data is avail­able and the bank could as­cer­tain the le­git­i­macy then there will def­i­nitely be ac­cel­er­a­tion in the credit growth of these seg­ments.

GST opted for a uni­fy­ing tax re­plac­ing the ex­ist­ing mul­ti­tude of taxes. Ear­lier there were nu­mer­ous taxes ap­plied on a sin­gle item like ser­vice tax and ex­cise du­ties for cen­tral and state taxes, such as oc­troi, en­try tax and VAT. The pic­ture of the bank­ing in­dus­try was also some­what sim­i­lar. But now the ser­vice taxes that were ap­pli­ca­ble on al­most all bank­ing ser­vices, are go­ing to be ab­sorbed in the GST: Hence, the rate of the levy has gone up from 15% to 18%, but the im­pulse re­mains al­most the same.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.