Before the advent of GST, the tax structure of India used to be a complex one. Different taxes were levied on the businesses that demanded to be taken care of in various departments in different cycles. The criteria for tax payment also used to be different depending on the concerned state.
It was especially detrimental for the SME and MSME businesses, whose annual turnover is merely sufficient for self-sustaining. The GST registration of the same companies has simplified the process by bringing all the taxes under one roof.
It dramatically reduces the erstwhile harassment of tax payment that the business holders had to face and also improves the chances of getting an Instant Business Loan. The tax rules of each of the states are also unified under GST. So, the GST registration of the small businesses has nullified the confusion of state-dependent tax payment rules.
On top of all other benefits, getting your business GST Certified can help you get Small Business loans quickly. This, however, can turn out to be quite tricky otherwise.
How Can GST Help Your Business?
Once you register your business with GST, you can effortlessly claim input tax credits. This means that by paying GST on your collected sales, you can cut down on the goods and services tax that is calculated on your investment in the business.
If your business is not registered with GST, your buyers must carry on with the compliance on your business’ behalf. While this may be beneficial for them in terms of getting a GST Business Loan, it can prove to be problematic for you. Moreover, many consumers nowadays mostly avoid doing business with suppliers who are not GST certified.
Getting Your Business GST Certified
There are a number of reasons why you should get your business GST certified. Apart from helping you with getting an easy SME loan, GST can prove to be beneficial in 5 other ways. Here are those –
It Helps You Establish A Presence
By registering yourself with GST, you ensure your presence in the market. The big companies are bound to register with GST as their turnover forces them to do a registration. But, by voluntarily registering with GST, you as a small business can benefit to a more significant extent. For the starters, the more prominent players understand that you are serious when it comes to marketing. Secondly, loan providers can provide you with working capital loan whenever you require.
GST Can Help You Eliminate Various Effects of Taxes
Before GST was introduced on a larger scale, businesses, both small scale, and large scale had to pay “taxes on taxes.” Thanks to GST implementation, such cascading effects of taxes can be eliminated now.
Above all, if you are a small business looking for funds or applying for loans in different banks and finance companies, being GST registered can help you get a reliable SME business loan quickly.
Get Loans from Finance Companies Easily
If you are a small-scale business, you probably are looking for finances. In that case, it is essential that you get yourself GST verified. Banks and finance companies find it challenging to provide MSME business loans or line of credit to firms that have no Goods and Service tax registration.
Therefore, if you are looking for funds, it is always better to get yourself GST certified first. There are plenty of finance companies like FlexiLoans that offer exciting deals on a business loan for SMEs with a valid GST invoice. They also provide incredible Online Business Loan offers that can match with your requirements. You can take a generic look at those for your benefits.
GST Can Help You Get Various Composition Schemes
If you are a small business with a yearly turnover between 20 lakhs to 70 lakhs, then you can benefit under GST. By registering under GST, you can lower down your taxes by utilizing the composition schemes.
It’s Easier to Register with GST Now
It is now easier to register with GST as online procedures have been introduced. This is even better for startups and SMEs as they no longer have to keep running from office to office for different tax registrations like VAT, service tax, excise tax.
There are plenty of other benefits of getting your small business GST certified. Those mentioned above are to name a few. So, if you are still not GST approved, its time you get it done.