© 2022 Nextspeed Technologies Pvt. Ltd.
For a business to start functioning there are few mandates & requirements for GST registration process. Before reaching the consumer, every product passes through several steps in the supply chain. The lack of total understanding, along with the GST structure, has instilled a dread of the unknown in the minds of business owners, who are still trying to learn everything to know about it and comply with the rules.
GST registration usually takes between 2-6 working days. Following are the documents required:
A defaulter who does not pay tax or makes late payments must pay a penalty of 10% (for real reasons) of the tax owed, with a minimum of Rs 10,000. If tax evasion is purposeful, the penalty will be 100 percent of the tax amount.
If a firm operates in more than one state, the taxpayer must register for GST in each state separately.
Points to note:
Composition scheme allows taxpayers with a turnover of less than Rs 1.5 crore to skip the tedious GST requirements and pay a fixed rate of turnover.
Even if the eligibility criteria are not met, a business might choose to register for GST. GST registration aids in the recognition of the company as a legal registrant.
Points to note:
GST registration is the same for small and large enterprises, and it is completed fully online Once a company understands which documents must be provided and the actions to take, the process is straightforward to comprehend and follow. Businesses can use the GST registration checklist to maintain all of the relevant paperwork on hand and to fully comprehend the registration procedure.
Businesses that meet the following conditions, regardless of the type of business or service they provide, must apply for business GST registration–
GST registration is required for every product business with an annual turnover of Rs. 40 lakhs+ more. The limit is Rs. 20 lakhs if it is placed in the special category. Similarly, service businesses with an annual revenue of more than Rs. 20 lakhs must register for GST. The limit is Rs. 10 lakhs for firms in the special category.
If a company operates in more than one state, it must seek separate registrations in each state.
If a company has various business verticals or branches in a single state, it must also seek different GST registrations if it meets the appropriate qualifying criteria/parameters. However, the procedure for obtaining GST Registration is the same across the country. For example, the procedure for acquiring GST Registration in Pune is the same as it is in the rest of the country.
Every organization relies on compliance to ensure that it follows a set of rules, whether it’s a law, policy, specification, or standard. These regulatory compliances must be followed by start-ups and businesses since they outline the objectives that the company must strive for. Legal compliances are also included in some of them, which assist firms in remaining compliant with the law. But exactly, what are compliances?
The act of adhering to norms, laws, or regulations is known as compliance. To put it another way, it is adhering to a set of guidelines, such as a specification, policy, standard, or regulation. Regulatory business compliance is a goal that all firms should be aware of and strive for. This guarantees that the company takes the appropriate steps to comply with applicable laws, policies, and regulations. The industry type, as well as state and local laws, determine the essential business compliances. Compliances provide insight into how a firm runs with integrity, making them critical for companies to follow and apply.
Let’s look at why business compliance is essential. Business compliance refers to the actions that a company or organisation takes to ensure that it is following the law and operating responsibly.
1) Defines Values and Ethics: The values and ethics of an organisation are defined by the application of necessary compliances inside that organisation. As a result, the staff will have an easier time adapting to the new atmosphere.
2) Breeds Trust: Good business compliance and its effective implementation foster trust within the company as well as among customers or clients.
3) Streamlines Processes: The organization’s communication and processes are streamlined and effective since the relevant business compliances are included. This has a favourable impact on the company’s efficiency and productivity.
4) Increases Productivity: When a company’s procedures are structured and organized as a result of business compliances, the company’s productivity skyrockets.
5) Reduces Risk: The danger of something going wrong is reduced by adhering to the relevant compliances. This is because compliances offer business owners with rules and guidelines to follow, enhancing efficiency and lowering risk.
1) Entity Specific Compliances: Entity-specific business compliance refers to registering a business using the most appropriate business structure. A sole proprietorship, a partnership, a company structure, an LLP, or any other structure deemed appropriate for the business could be used to register
the company. The required papers and regulatory laws vary depending on the type of business.
However, certain regulatory compliances, such as the filing of annual income tax returns (ITRs) and GST filings, must be a regular practice for all company entities. Businesses must file their ITRs on time, even if they are exempt, in order to be compliant and take advantage of the benefits that ITR filing provides. Businesses will be persuaded to file ITRs after learning about the numerous advantages to file them annually along with GST.
2) Trade Specific Compliances: Trade-specific business compliance refers to the regulations that must be followed based on the nature of the firm. An FSSAI licence is required for a food business, a manufacturing licence is required for a manufacturing business, an export-import business requires an Import Export Code or IEC is required for an export-import business, a transportation business requires Motor Vehicle Registration, and so on. These trade-specific regulations must be followed in order to operate the business.
3) HR Specific Compliances: HR compliance, often known as human resource compliance, relates to following the government’s labour regulations. This means that, depending on the number of employees in the company, a Shop Act Intimation or Registration is required. The Shop Act laws are state-specific and lay out the rules and restrictions that businesses must follow when it comes to their employees, including working hours, salaries, and attendance. Apart from these corporate compliances, there are a number of other compliances that businesses must adhere to, including:
Business PAN Card
Business Premise Documentation
Bank Account in Business’s Name
4) Business PAN Card: The Income Tax Department issues the PAN card, or Permanent Account Number card, which is a ten-digit alphanumeric number card. Individuals and corporations must have this PAN card. The primary goal of the PAN card is to utilise it as a universal identification key or identity card to track all financial transactions with a taxable component and to discover tax evasion incidents.
While having a PAN card is a key legal business compliance to follow, business owners must also file income tax returns or ITRs on time, just like law-abiding citizens. ITR is a declaration of the income produced by enterprises (or people) from various sources, as well as the tax responsibility owed on that revenue.
5) Business Premise Documentation: Obtaining documentation relative to the business premise, whether owned property or rented space, is another important business compliance that must be met. This documentation is crucial and will be required in the future, thus it must be registered at the start of the firm.
6) Bank Account in Business’s Name: Another essential business compliance is a bank account in the name of the company (or the owner in the event of a sole proprietorship). This legal compliance is required when applying for a loan or receiving government subsidies.
MSMEs and small enterprises must also follow all relevant financial and IT-related compliance standards in addition to these mandatory legal and regulatory business compliances. This also includes registering the company for Udyog Aadhaar, which offers MSMEs with recognition as well as a number of benefits. IT-related compliances include having genuine software, obtaining essential certificates, and preserving data through the use of proper data security methods.
The implementation of appropriate business compliances guarantees that the company is legally compliant with all laws and regulations, as well as taking precautions to protect the company.
© 2022 Nextspeed Technologies Pvt. Ltd.