India is a powerhouse of resources, a gold mine of opportunities, and a beacon of hope, for every aspiring citizen who wishes to start their own business. Naturally, more and more start-ups and small businesses have emerged over the years, and the number only seems to be on the rise. If your business is one of the many or you aspire to start one soon, then you definitely are eager to know how running a business in India can be easy and hassle-free for you.
GST certification is one of the biggest reforms of India, which will not only impact the tax system but also play a role in changing the way business is done in India.
Need to Simplify Taxation
GST bill was passed with an intention to transform India’s indirect taxation system. Experts have stated that successful implementation of GST will offer a unified tax structure across India, and prove resourceful in the long-run.
Nowadays, entrepreneurs can simply apply for a small business loan or unsecured business loan, online and in a jiffy! However, what is likely to stop your application from processing smoothly would be the lack of GST certification of your business. GST business loan is one of the easiest and quickest ways to secure a loan for your business, be it vendor financing, merchant cash advance or anything else of the likes.
What happens if your business is not GST certified?
Often businesses try to stay away from GST certification because they find the process too tedious or even because they think their business is too small to need one. However, lack of GST compliance could cause you a lot more trouble than it saves. Here’s what could go wrong-
– Difficult in business loan processing
For small businesses that are not GST compliant, it becomes difficult to seek an instant business loan from Banks and other NBFCs as well. GST is the key to obtaining business loans and the sooner your business gets GST compliant better it would be for your loan applications.
– Complicating trading relations
If you are choosing to not be a GST compliant business, then the party or company you do business with end up bearing the burden of your compliance. Eventually, they may seek vendors who are GST compliant to continue their business functions smoothly.
– Poor Compliance Rating Score
Businesses and companies not obliging by the GST compliance could lead to a poor Compliance Rating Score (CRS), and a poor score could eventually lead to loss of business.
GST compliance has brought about ease in the way taxation is computed in India, by doing away with VAT, Service Tax Regulations and more. It makes invoicing and taxing seem like a very manageable and hassle-free task. Besides, if or when your business ends up needing working capital and you need to apply for an online business loan, GST is what could sail your application through!
Business Loans made easier with GST
A lot of small businesses think they can skip the certification because their turnover is less than 20 lakhs, but this only adds to more chaos later. Small and medium businesses all over the country have started realizing the value of a GST certification, and how it can benefit their businesses when it comes to applying for unsecured business loans.
GST business loans are the need of the hour, and small and medium enterprises must understand why GST compliance can increase the chances of getting a business loan. In the long run, experts predict that compliance with GST may be costlier but staying without compliance could end up costing companies a lot more.
It is vital for emerging businesses, SME and MSMEs start seeing GST compliance as one of the biggest tax reforms of the country, and get their businesses GST compliant right away!