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How Will Gst Affect Kirana shop?
There are few things that you need to consider regarding GST.
They are as follow as:
You will have to take mandatory GST registration once you cross yearly turnover of Rs. 20 lakhs. This includes turnover of everything from taxable, non taxable , exempt, etc.
If yearly turnover is below Rs. 75 lakhs then you can opt for composition scheme as well.
Composition scheme includes 4 quarterly returns and 1 yearly return. Total number of returns to be filed will be 5 . Here you will be required to pay 1 % of quarterly turnover at the end of every quarter. But yes, you can’t take credit of GST that has been paid by you and you can even not recover from someone. This will be paid from your own pockets. However this will save compliance cost upto great extent.
Other way is normal GST returns where you need to file 3 monthly returns and 1 yearly returns. The total number of returns will be 37. Here, you can take credit of GST that has been paid and also you don’t need to pay from your pocket. However, you will have to bear the cost of compliance which is way more than a composition scheme.
There ...
... used to be a time when the Sales Tax officers would suddenly get a dose from the bosses ( who may have been given a dose by the cabinet ) , this happens around the end of the financial year, when people come to realize that revenue collection isn’t as good as it was expected. So the collectors move their butts and visit all the commercial establishments in their area and demand them to pay up based on their last year’s contribution. It is not a fully audited evaluation, it’s more like the feudal times when the landlords would extract taxes from the agriculturists.
You will not be seeing that scenario anymore.
Why?
Because the shops and commercial establishments cannot just go and pay a lump sum amount of tax as advance. The tax liability against a shop is known in real time.
So either the shop pays the true value of tax or does not pay at all.
If a shop can manage to carry out it’s business without GST registration, no one can make them pay taxes.
The tax collectors will not be asked to go collect some revenue because all transactions are recorded and that is what the govt will get. Yes you can have defaulters but there is no half way with that.
Know More GST Filing Utility.
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