Tuesday 19th June 2018

    GST is not very SME friendly!

    Under GST, all taxable entities will have to file three monthly returns and one annual return, all within a stipulated period. One return is for outward supplies of taxable goods and/or services affected, another for inward supplies, and the third one is for finalisation of details of outward supplies and inward supplies along with the payment of the tax. This comes to 37 returns a year. And this is for an entity that operates in only one state. If the entity has operations in more than one state, the number will multiply. Every taxpayer will have to get itself registered in each state where it has an operation. The condition for claiming input tax credit will put many small entities at the risk of losing business. Since the law puts the onus of ensuring that suppliers pay tax and file returns on time on buyers - as non-payment will delay input credit - large buyers will shift their businesses to more compliant suppliers. Smaller enterprises risk losing business to bigger players that have the wherewithal to better comply with the GST rules. More here