GST (Goods and Services Tax) is a headache for companies in 2022. GST rules are reviewed and changed at frequent intervals by the respective authorities. Keeping up with the GST council meeting isn’t easy for businesses. GST isn’t only applied in India, as many other countries use it in their tax regimes. However, GST rules can differ from one country to another. Also, the GST rates for different goods and services will not be the same in each country. Global organisations find it trickier to streamline the GST processes in 2022. Read on to know the reasons to hire a GST consultant in India.
Need for GST consultants
The government launched GST to bundle all the direct/indirect taxes under one head. However, the government never fixed the rates for any product or service. Instead, the GST rates are subject to change as per the government. Moreover, several GST brackets are made to assign rates to each product and service. Dealing with complex GST rates isn’t easy for a business, especially a small-scale business.
Concerned authorities conduct a GST council meeting now and then. For example, the last GST council meeting was on the 31st of December 2021. The 47th GST council meeting is expected to be on any date in May 2022. Some modifications are added to the existing tax regime in every GST council meeting. It is the responsibility of a business to align its business practices according to the new tax regime.
GST compliance is another headache for businesses looking to adapt to the existing tax regime. The government studies the GST compliance status of every business in the country. It offers a compliance rating to each business irrespective of its size. If a business is GST compliant, only then it can claim an input tax credit. A non-compliant business may face hassles in claiming the input tax credit. A business that does not comply with the GST rules can land in legal hassles. A sudden inspection carried out by the concerned authorities can even lead to the seizure and closing of the company.
Knowing about the GST rules isn’t enough for a business. There are proper rules on how businesses should maintain their GST documents and other tax-related papers. From tax filing compliance to tax return compliance, there are several things to be followed by a business. In short, there are several mundane tasks related to GST for a business. If they fail to complete the GST-related activities timely, they might hamper their compliance status. Therefore, businesses need a GST service provider to complete the GST-related activities timely and understand the current tax regime in the country.
How can a GST consultant help a business in India?
As discussed above, there are many challenges in completing the GST-related tasks. In-house accountants or employees of a company may not have great skills to complete GST processes timely. So it is where a GST consultant helps a business in India. GST-related services offered by a reliable consultant in India are as follows:
- A consultant can check the accounting data daily on behalf of their client. Also, it can make sure that the company is following GST-related laws set by the concerned authorities.
- Authorities use the HSN/SAC codes to classify goods and services into different tax rates. Companies also have to place their transactions under the correct HSN/SAC code as per the rules. A GST consultant can help a business in the classification of transactions.
- A consultant can help a company with GST registration. It will also ensure that GST returns are filed timely. If any tax benefits are available, a consultant helps make full use of them.
- A consultant can help companies determine the correct type of tax during inter-state and intra-state supplies. A company has to choose the right tax location and the type of tax (CGST, IGST, and SGST).
How to recruit a GST consultant in India?
Instead of recruiting in-house GST consultants, look for a reputed GST service provider. For example, a reputed CA firm can offer complete GST services to businesses in India. By doing so, a company can slash recruitment and in-house costs for GST processes. Hire a reputed GST consultant right away for your business in India!