Starting a small business is exciting, but at the same time the paperwork and regulations can make the process a little complex! One of the most needed steps for any new business in India is getting GST registration and if you're based in Chennai, this easy guide will help you understand the process and benefits.
Let's go ahead and explore everything you should know about GST Registration in Chennai, why it's a must for your business, and how you can remain on top of your filings.
What is GST Registration Anyway?
Goods and services Tax is a single tax. It replaces multiple indirect taxes which are levied on businesses in India. One gets liability to register for GST on crossing a certain threshold value, which for small businesses has become Rs. 40 lakh for goods and Rs. 20 lakh for services if the business is operating at Chennai.
If your turnover is below the threshold, then registration is not compulsory but is useful. Registration helps you to get tax credits on purchases and gives your business more credibility.
Why Small Businesses in Chennai Should Register for GST
You might be wondering, "Is GST registration really necessary for my small business?" Here's why it is worth considering:
1. Legal Recognition: GST registration gives your business a government backed identity, showing customers that you're compliant and trustworthy.
2. Tax Benefits: Once registered, you can claim input tax credits on your business expenses, thus reducing your tax liability.
3. Professionalism: GST registration makes your business look more professional to suppliers, customers, and partners.
4. Expanding Opportunities: If you plan to expand or do business with other states, GST registration is necessary for smooth transactions.
How to Get GST Registered in Chennai
The GST registration process is much easier than what it appears to be. Here's a step by step guide:
1. Check Eligibility: Check whether your business is eligible based on turnover criteria, If it crosses the limit, then you are compelled to register. otherwise, it is a voluntary option but beneficial.
2. Gather Documents: You would require the following documents:
PAN card of the business owner
Aadhar card
Proof of business address (utility bill or rental agreement)
Bank account details
3. Apply Online: Visit the official GST portal at www.gst.gov.in, create an account, and fill in your business details. Once submitted, you’ll receive an application number to track your progress.
4. Verification: The GST department will verify your application. They might request additional documents or clarification if needed.
5. GSTIN Generation: Once you get verified, you'll be given your GST Identification Number, which is required for all the GST related transactions and filings.
GST Filing in Chennai: Keep on Track
Once you are registered, the next step would be Gst Filing Chennai. Time and accuracy in filing returns are vital for compliance.
There are a few kinds of returns that you have to file,
GSTR1: Report all outward supplies (sales).
GSTR3B: Summary return to be filed every month.
GSTR9: Annual return to be filed by those businesses with turnover more than Rs. 2 crores.
Missed deadline or wrongly submitted would result in penalty. However, you don't have to do it all by yourself.
Why Accounting Services in Chennai Make Sense
The complexity of managing your taxes and accounting can become very challenging, especially if it's your first time dealing with GST. Here is where Accounting services in Chennai help you out. A professional accountant will assist you with the following tasks:
Ensuring that all your records are organized
Precise calculation of your GST liability
Timely submission of your returns to avoid penalties
Advise you on tax saving strategies
An expert handling all your GST related tasks will ensure you to focus on your business growth.
Wrapping It Up
There you have it! GST Registration in Chennai is an important step for the small business, but doesn't have to be a hurdle. Follow the steps outlined above to put your small business on the way to becoming a GST compliant one.
Don't forget about GST filing as well, it's not much different from staying on the straight and narrow. If ever you feel like you just cannot handle it, then so be it. Get professional accounting services in Chennai to do it for you so you are sure your returns will be filed right and by time.
With the proper assistance and a little planning, you'll handle GST just like a pro. Just go ahead, get registered, and watch your business explode!
