The New Government has Presented Budget 2019. Here’s Everything you Need to Know about it!

The 5th of July marked the presentation of the Union Budget 2019 in the Parliament. The newly elected government presented a budget which was more for the longer term, aiming to take India’s economy to around USD 5 trillion by 2024. The aim and target is certainly a positive one, and the budget presents viable opportunities to reach this target, as presented by the finance minister.

In the backdrop of the impending economic slowdown, the budget has focused on promoting foreign investment, providing aid to the economy, and boosting infrastructure. The focus on development of a “New India” was very clear in the finance minister’s presentation, with the particular phrase being used rather heavily. As proposed in the Interim budget 2019, the tax slabs for direct taxes remain the same.

A focus on education

According to the budget, the new government plans to allocate around INR 400 crore to higher education facilities. These include funding and allocation to universities, colleges, and other institutions of higher education. This is a part of the larger aim of the government to promote better standards of higher education in the country. Inviting students from around the world to study, the government also aims to promote the “Study in India” programme.

As a result of the Swayam initiative, which is an online educational portal, the access to education will be made much easier for students. The funds from all ministries will also be directed towards the National Research Foundation for the funding and coordination of research grants.

A newfound importance of women empowerment

The finance minister was indeed quick to highlight the importance of women in the economy of India. The budget included some major announcements related to the welfare of women in the country, starting with the segment “Naari tu Narayani”. This proposed to set up a high level committee which would take further decisions on how to empower the women of India.

Under the Mudra scheme, there was also an announcement of a loan worth INR 100000 for women. The women who have verified Jan Dhan accounts and are part of self help groups will also be allowed an INR 5000 overdraft on their bank accounts.

The banking and finance sector

The budget saw major changes being brought about in the finance sector. The non performing assets of commercial banks have seen a reduction in about INR 1 lakh crore over the last year. Addressing these legacy issues and a lot more, the public sector banks were now proposed to be rendered with a capital of INR 70000 crore to boost credit. Banks were also advised to provide doorstep banking services, make efficient use of tech, and provide online personal loans as part of the 2019 union budget. In the near future, customers of one bank will also be able to access service across all other public sector banks, with reforms being implemented to improve governance in this sector.

The government also looks to expand its investment space, by realigning its holdings in the CPSEs. Banks are also advised to increase their share availability, and depth of market. In the near future, a new series of one, two, five, ten, and twenty rupee coins, which will be easily identifiable by the visually challenged, will be released.

The startup era

The startup sector in India suffers from three major problems. These are-

  1. A lack of funding
  2. Regulations
  3. High costs of credit.

The budget 2019 proposed to exempt the startups from numerous scrutiny assessments, including angel tax, which most startups struggle with. Angel tax was imposed in 2012 as a counter to money laundering.

The government has also proposed a TV program, broadcast on Doordarshan, serving as a platform to bring entrepreneurs and venture capitalists together. In the words of the finance minister, this program would be for the startups, of the startups, and by the startups. In addition, the budget also brought about the announcement of no more scrutiny for share premium valuations of startups. The funding received by startups would be categorized as Category II AIF funds, and would not be investigated by the income tax department.

Interchangeability of PAN and Aadhaar card

Since more than 120 crore taxpayers now possess an Aadhaar card, the budget 2019 proposed the interchangeability of PAN and Aadhaar card for the ease of filing returns. This also aids those taxpayers that do not possess a PAN card, who would now be able to enter their Aadhaar number and file their taxes.

Another announcement was that NRIs could now apply for an Aadhaar card the moment they land in the country, instead of waiting for the previously mandated 180 day period.

A motive to save the environment

 

To highlight the importance of climate change and promote environment protection, the government has decided to lower the GST rate on electric vehicles from 12% to 5%. The budget also propossave earthes an INR 1.5 lakh tax deduction on loans taken to purchase electric vehicles. Custom duties on certain parts of electric vehicles are also being removed, in order to promote the sale and purchase of said vehicles. By promoting the right incentives and charging infrastructure all across the country, the government is doing its best to encourage quicker adoption of electric vehicles. All of this is part of a bigger plan for the government and the nation to do its bit in saving the environment.

Final words- the budget at a glance

In addition to all the points discussed above, the budget 2019 proposed a few more changes across all sectors, ranging from petrol and diesel prices, to the duties on precious metals like gold and silver. Some of these proposals are as listed below.

 

 

  • An increase in custom duty on precious metals from 10 to 12.5%.
  • For the purchases of a house on INR 45 lakh, an additional deduction of INR 1.5 lakh in interest on loans is also offered.
  • All companies that have an annual turnover of more than INR 400 crore are now under the bracket of 25% corporate tax rate, covering around 99.3% of all companies.
  • With an increase in the focus on employment, around 20 tech business incubators, and 80 livelihood business incubators will be set up in the financial year 2019-2020.
  • Between 2019 and 2030, it is estimated that the railways would need an investment of INR 50 lakh crores. To provide faster delivery of services to consumers, PPP would also be used.

The union budget of 2019 has brought in a wave of approval from around the nation. While people appreciate most of the proposals as part of the budget, many analysts are also questioning the government over the lack of a common man-focused budget. It will be interesting to see how the government responds to these concerns in the coming years, with the budget clearly being focused on the development of a New India.

Best-in-Class Products by Spine are Here to Streamline Your Business. Have a Look:

Known for its enterprise resource planning solutions, Spine Software has been making strides in the world of IT ever since its inception. Being a technology-driven organization, Spine Software focuses on delivering solutions that stretch across the entire IT spectrum. The company boasts a list of satisfied clients across India and Europe, laying a testament to the capabilities and abilities of Spine Software.

 

The products on offer by Spine Software are truly one of a kind. They have helped innumerable organizations to streamline their business operations, by providing solutions that are in line with the business philosophy of their clients. Their expertise and experience in the field of IT services have resulted in the development of highly successful IT products that help clients to ease their operations.

 

Spine Software has been handling a wide variety of projects ever since its inception. These include the complete automation of a pharmaceutical manufacturing company, LAN/WAN management, setting up data centre infrastructures, and hosting of websites. This invaluable experience is what has driven Spine Software to develop groundbreaking solutions for their clients, ranging from ERP software to sales force management.

 

The products on offer at Spine Software

 

Spine Software has helped numerous businesses smooth out their operations with their innovative software solutions. Some of these are listed below.

 

PharmaTrader

 

With the current regulations, compliances, and GST rules, it becomes difficult for any business to manage their operations efficiently. Thankfully, for pharmaceutical organizations, managing their operations is now incredibly easy, thanks to Spine Software’s PharmaTrader.

 

PharmaTrader is a one-stop tool for both distribution and retail management, that helps make the lives of pharmacists just a little bit easier. It can be used to manage multiple facets of an operation, ranging from HR and inventory to sales and accounting.

 

What makes it stand out?

 

PharmaTrader is unlike the typical management software available in the market. First of all, when compared to similar software, PharmaTrader is available at a fraction of the cost. Therefore, savings start as soon as you purchase PharmaTrader! Secondly, the introduction of GST has put up new challenges for traders and businesses. PharmaTrader helps you overcome these regulation and compliance challenges, with GST compliant invoices, bills of supply, and quotes. The calculation of SGST, CGST, and IGST can also be done with the click of a button.

 

Top notch security

 

With cloud technology, you never have to worry about the safety of your data. PharmaTrader employs security practices specific to the pharma industry, in addition to standard procedures.

Some benefits of cloud technology include being able to delete data remotely from stolen or lost devices, flexible storage options, and easy sharing of information. This ensures that your precious data never falls into the wrong hands, and if it does, you can decide what course of action to take.

 

PharmaTrader is designed keeping the needs of the pharma industry in mind. With efficient management of operations, top notch security, and unmatched support, PharmaTrader becomes one of the best management software out there.

 

SpineTrader

 

Similar to PharmaTrader, SpineTrader is a cloud based accounting, inventory, and GST invoice software that helps all kinds of firms manage their operations. With the amount of focus and determination that goes into running sales and other processes in business, competent billing software is what often is required to take operations to the next level. With SpineTrader, traders and wholesalers in all industries can go and focus on running their business and let SpineTrader take care of all billing.

 

Some standout features of SpineTrader

 

Invoice creation was never easier. Thanks to SpineTrader, you can now create GST compliant invoices at the touch of a button. This saves the time and effort of both you and your customers, so you can focus on what’s important!

 

Inventory management. SpineTrader offers an extremely efficient inventory management solution for your enterprise. More than just creating invoices, it helps you keep track of your inventory, with detailed reports about sales and stock-in-hand, all at one place.

 

GST compliance. With the introduction of GST, compliance and regulations have come forth as new challenges for manufacturers and traders. With SpineTrader, however, say goodbye to all your compliance worries, and let the software do it all for you! Being GST ready can now be accomplished with the click of a button.

 

Cloud benefits. Cloud tech brings a range of new benefits to the table, unseen in other management software. With increased security, control over data, and seamless sharing, cloud tech is put to good use by SpineTrader.

 

If you are looking for an inventory, account, and sales management software, all in one, then SpineTrader is definitely the answer for your organization.

 

Spine ERP

 

ERP software solutions these days are much needed for large scale enterprises and industries. With Spine ERP, you can make collecting, storing, and managing data for all your business units simpler and easier. Business operations can be streamlined to the maximum, all thanks to Spine ERP solutions.

 

Cutting edge tech

 

With Spine ERP, your business is bound to observe a boost in sales and productivity like never before. With faster order-to-cash processing, huge savings in time and resources, and making your business ready for GST, Spine ERP delivers all the benefits you could possibly imagine from an ERP solution. Some of the cutting edge features of Spine ERP are listed below.

 

  1. Financial management. Taking care of your capital inflow and outflow has never been easier. Spine ERP covers all accounting and related activities, such as maintaining transactions, balance sheets, and ledgers, and generating financial reports for all your business units.
  2. Sales management. Spine ERP also handles all sales workflow, such as inquiries, quotations, and orders. It helps you speed up the sales cycle, and bring in more revenue for your organization.
  3. Supply chain management. The supply chain is a key area in any business, and managing it becomes infinitely simpler with Spine ERP. The entire product flow from manufacturer to consumer is managed, making it easier to track inventories, process recalls, and plan subsequent products.
  4. inventory/warehouse management. Integrated with the SCM module, the inventory and warehouse management helps you track and locate items in your organization, with product serial numbers. Stock targets and replenishments can be closely tracked too with Spine ERP.

 

Spine ERP brings all essential enterprise management solutions under one roof. With Spine ERP, you never have to worry about efficient business management ever again.

 

Spine POB

 

Spine POB is an effective point of business solution for industry-wide applications. With a complete service management experience right from your mobile, Spine POB allows you to book, manage, and process orders right from your mobile device.

 

Mobility is the present and future of all industries. With Spine POB, you can always expect to have an upper hand over the competition, using the mobile platform to manage and process orders from your customers. For distributors, Spine POB comes in as a one-stop solution for all operations management.

 

Features that make your lives easier

 

With Spine POB, distributors across the industry can expect quick and effective management of their orders right from the comfort of their mobile platforms. They can perform functionalities such as sale order, sale return, receipt generations, and purchase orders, all under one roof. Some of the features of Spine POB are as mentioned below.

 

Sales order management. Spine POB offers the ability to create, modify, and delete sales orders, and sales receipts.

 

Essential utilities. Spine POB also includes access to utilities, such as data backup and restore uploading, and synchronization of data.

 

Report generation. With Spine POB, management of orders becomes even easier, thanks to the comprehensive report generation facility. You can now view reports on area wise sales, customer sales, and stocks in hand.

 

Spine POB makes it simpler for distributors to streamline their business, using the comfort of their mobiles to manage their orders. Many happy customers already swear by Spine POB, laying a testament to the reliability and trust of Spine POB.

 

Spine SFA

 

Managing the sales workforce is a challenge for enterprises of all scales. Thankfully, Spine SFA is here to make the sales workforce management process a whole lot easier for enterprises and companies. Spine SFA brings to the table an efficient system of standardizing the sales processes and activities. It also allows you to perform detailed analyses of sales records, and thus enable you to take better sales decisions.

 

What makes Spine SFA an effective sales force automation solution?

 

Spine SFA allows you to effortlessly gather and analyse data about your sales operations within a moment. It would take hours to process the same amount of data manually using spreadsheets that Spine SFA can process within minutes. This will ultimately help you in increasing the efficiency of your sales operations and converting more leads to clients.

 

Opportunity management is a breeze with Spine SFA. Focusing on providing a guideline for the sales processes, Spine SFA helps optimize processes and improve conversion rates. This also helps gather invaluable data on what leads are most likely to be converted.

 

Reporting is an essential part of any SFA software. With Spine SFA, you can make sure that your decision making is driven by data, increasing your business intelligence in the process. Data is collected from all sources possible, analysed, and then presented in the form of a detailed report so that you can draw maximum insight from it.

 

Spine SFA makes it much easier for enterprises and firms to manage their sales workforce, and increase the effectiveness of all sales operations. With cutting edge features that make it stand out from all other SFA software available, Spine SFA is bound to benefit your enterprise in both the short and long term.

 

Spine HRM

 

Human resource management is an integral part of the operations of any enterprise. Spine HRM delivers HRM features that are unlikely to be found elsewhere, ranging from employee management to benefits management. With Spine HRM, you can expect to manage your employees and workforce in a way that you focus on what’s important- driving the growth of your business.

 

What all does Spine HRM help you achieve?

 

With HRM software being one of the most important management tools in any organization, it becomes essential for an HRM solution to offer everything that an organization could potentially need with regards to human resource management. Spine HRM, with its comprehensive set of features, and ease of use, make it an effective HRM solution for all enterprises.

 

Employee information management. Spine HRM provides efficient employee management services, which include employee database and records, job history, salary information, and banking details. For smooth operations, keeping a sound employee information database is crucial, and Spine HRM helps you manage exactly that.

 

Benefits management. This includes all the benefits currently offered to employees, such as time off, wellness and insurance benefits, and travel compensation.

 

Time and attendance management. Since employee attendance needs to be tracked on a daily basis, Spine HRM implements an efficient attendance management system. Time reporting, clocking in time and clocking out time can all be tracked, with biometrics and holiday calendars being included in the software, too.

 

Spine HRM offers world-class management features for your workforce, ensuring that you never have to worry about managing your employee attendance, or benefits records. With Spine HRM, you can be sure of effective and proactive management of all HR, at the simple touch of a button.

 

 

 

Spine Software has been making strides ever since it was established. With the range of products listed above, it continues to set benchmarks for IT service providers across the industry, every second, each day.

Best Investment Tips for the Stock Markets.

With the advancements in technology and improvements made with stock market software, investing in stocks is as easy as grabbing a cup of coffee. However, the answer to “which stocks to invest in?” is still complex. If anything, the process of picking the stocks has become more complicated and tricky over the last few decades.

 

Understandably so, with so many companies getting listed in the stock markets and the amount of data and information flowing in the world, no one but the prudent investors are able to make the right decisions and pick the right stocks.

 

In this post, we are going to share some tips with you on how to make good investments in the stock markets. So, before more companies get listed on the stock markets, let’s get started with our first tip on how to make good investments in the stock markets:

 

Think with a long-term approach.

Never think of stock markets investment as a “make quick money” trick. It can prove out to be counterproductive, and even fatal for your financial situation at times. The most important thing about investing in stock markets is that: “Do not invest any money that you might be needing within the next 5 years or less”.

 

Before you go ahead and invest your hard-earned money in a stock, ensure clarity at the back of your head about when and how will you be needing those funds in future. If you are going to need those funds within the next couple years or so, consider an option other than stocks. Because of the volatility in stock markets, you can’t be sure if the total amount will be available when you need it.

 

Avoid the herd mentality.

This is one of the most important things you must remember when you are investing in the stock markets. Not only does it save you the peace of mind, but it makes sure that you are not losing your investments just because of what a random person or TV show host is saying. Don’t sell because everyone is selling, and don’t buy because everyone is buying – sweet and simple!

 

While it’s true that you need to keep yourself informed and make prudent decisions by knowing what’s going on in the market and with the companies you have invested in, make sure that you are not losing money while doing it.  One of the best investors in the stock markets, Warren Buffet has a very interesting quote on avoiding the herd mentality: “Be fearful when others are greedy, Be greedy when others are fearful”. So, always remember: “Avoid the herd mentality”.

 

Pick Companies, Not stocks.

The notion that investing in stocks is like buying chips at poker, is fundamentally wrong. When you buy a particular stock, you are essentially buying a share in the company. And before you put money into something, don’t you think twice before getting associated with it. I’m sure you do!

 

The same way, you should invest in a stock only after you understand the company and the kind of business it does. Make sure that you know about the company culture, their products, the way their industry works, and what are their plans in the future. Pick a stock only if you trust and believe in the company it’s associated with.

 

Build up positions gradually.

Since we emphasised so much on the fact that you should have a long-term approach towards choosing and investing in stocks, why should the process of buying them be any different? If you are supposed to keep invested in a company for years and decades, you should take your time in buying them as well.

 

Research about different buying strategies and then use them so that you can smooth-out the fluctuations and reduce your exposure to price volatility. You can use a good stock market software for doing this as well. Some of the best buying strategies that you can use for building up positions are:

 

  • Dollar Cost average.
  • Buy in thirds.
  • Buy “the basket”

 

So, this was our guide on how to make good investments in the stock markets. Have any questions? Or want to know how stock market software can help you make the right investments? Get in touch with us!

How to start a Medical Shop in India?

With the rising population in the urban parts of India and the increasingly rampant urbanization of even the rural areas, people are getting more buying capacity. And that has made them more aware of their health in the last couple of years. Access to medicines and other health products has become a priority for Indians across the country.

 

That is the reason why starting a medical shop can turn out to be an extremely profitable business option for you. In this post, we are going to walk you through the whole process of starting a medical shop in India. We would also tell you how a medical shop billing software can prove out to be instrumental for the success of your business. Let’s get started:

 

  1. Business and Tax Registration: First of all, you need to make sure that all the registration processes are taken care of. You will have to choose one of four options. The four options are Hospital Pharmacy, Standalone Pharmacy, Chain Pharmacy, and Township pharmacy.

 

Depending on where you wish to start the medical shop and how you plan on creating a set of customers, you will have to choose one of these four options. Following this, you will have to choose the way you want to register your business as a legal company. You will have to choose one out of LLP or Private Limited Company.

 

After you’re done registering the company, you will have to make sure that the tax registrations are done right. Obtain a GST number and other paperwork is very important for your business. For streamlining your tax process, you should employ good GST software.

 

  1. Pharmacy or Drug License: To start a pharmacy business, a drug license from Central Drugs Control Organization as well as State drugs standard control must be obtained. Retail Drug License (RDL) is given to pharmacies whereas Wholesale Drug License is required if you and your company is going to be involved in the wholesale business of medicines and drugs.

 

The requirements for getting a license include a minimum of 10 square ft. area of operation, refrigerated storage facility, and qualified staff.

 

  1. Go Digital: To make sure that your medical shop succeeds and has a lot of customers, you will have to understand the digital world and use it to grow your business. First of all, you need to sign-up for Google Business so that people can discover your shop via Google Maps. Following this, you need to get on social media and engage with your customers. You should also go for medical shop software to make sure that everything in your business is running smoothly. Not only this, you can even integrate with your GST software to reduce paperwork for your business.

 

  1. Give Buyers a great experience: For making sure that the customers visit your shop regularly, you have given them an amazing shopping experience. A medical shop billing software can save a lot of time of your consumers and you can even provide them an invoice with it. You should also accept payments online and cards to attract more customers who are tech-savvy and believe in going cashless.

 

So, this was all you needed to know about how to start a medical shop in India. Have any questions? Feel free to ask us in the comment box.

Interim Budget 2019 Unravelled: Everything You Must Know!

Every business person worth his salt would dedicate the due time to understand the fiscal union budget of the nation because of how crucial it is to drive the economy of country, and influence their business itself.

 

As the elections are just around the corner and everyone was glued to the tabloids so they can know each and every aspect of the budget. And for the right reasons, the interim budget somewhat lived up to the hype that had been created before it was presented by Piyush Goyal, Minister of Finance.

 

While the government was commended for its step to exempt taxes on the middle-class and even welcomed by the public, the announcement of ₹6000 in income support for the farmers was criticised for being insensitive by the pundits as well as the public too.

 

However, there are gazillions of other things that the people should know about the interim budget. In this post, we are going to do just that. This post will be a comprehensive and detailed highlights of interim budget 2019. Let’s have a look:

 

Let’s talk the numbers: Breakdown of Budget.

The total union budget for this year was amounted to be Rs. 27,84,200, which has seen a clear increase if we compare it to Rs. 24,42,000 of the year 2018-19. Out of this Rs 27 lakh crore rupees, only Rs 20 lakh crore has been the revenue for the government while the rest of Rs 7 lakh crore rupees will be either borrowings or liabilities. Here’s a breakdown of the money received for the total budget that the government will be spending this year:

 

21% – Corporation tax

17% – income Tax

4% – Customs

3% Capital Receipts

8% – Non-tax revenue

7% – Union Excise tax

21% – GST Collection

19% – Borrowings and Liabilties

 

If you notice, the collection from the GST has already started making an impact. Many factors such as steps taken by government and ease of paperwork due to products such as cloud GST software and billing software can be given the credit for this.

 

Tax Proposals for 2019-2020.

Here’s a list of notable announcements regarding the tax proposals made in the interim budget:

  • Contrary to the popular belief, the tax slabs will remain the same for the year 2019-20.
  • The tax on the second house rent of second occupied house shall be exempted.
  • The tax rebate limit under Section – 87A shall be increased from Rs 3.5 lakhs to a whopping Rs 5 lakhs. This move has been appreciated by public on a wide scale.
  • TDS limit for post-office and bank savings has been increased along with the TDS threshold on rent.
  • For the housing projects approved before 31st March, 2020, the benefits under Sector 80-IBA shall be extended for one more fiscal year.
  • SMEs that earn less that Rs 5 crores will have to file GST only once in 3 months.
  • The sourcing of SMEs by Government enterprises has been increased to 25%, out of which a 3% is reserved for SMEs owned by women.

 

Reforms in the Banking and Financial Sector.

The increasing number of outstanding loans in the public sector was one of the major considerations in the interim budget. The total amount for these outstanding loans increased from Rs 18 lakh crores to a magnanimous Rs 52 lakh crores. Prompt corrective action (PCA) is being implemented and only 3 public banks are kept out of this as of now. Insolvency and Bankruptcy code (IBC) has devised a resolution-friendly mechanism to speed-up the recovery of NPAs.

 

Recapitalisation of public sector banks will be done too in this fiscal year. A sum of Rs 2.6 lakh crores has been assigned for this very purpose.

 

Agricultural Reforms.

As the pressure from various fronts was mounting, the government made an attempt at wooing the farmers too. However, it didn’t receive the response that they’d expected. Pradhan Mantri Kisan Samman Nidhi has been introduced with a promise to pay Rs 6,000 annually to the farmers. Minimum Support Price (MSPs) has been introduced with rates 50% more than the cost for all the 22 crops which can be a major relief for the farmers.

 

So, these were the highlights from the interim budget 2019. Have any questions? Feel free to ask us in the comment box

Latest GST News & Updates | SpineBlog

GST, Goods and Services Tax also defined as a direct tax which has replaced many indirect taxes in India. The act came into effect on 1st July 2017 and is a comprehensive, multi-stage, destination-based tax that is levied after every value addition. In case of intra-state sale, Central GST and State GST both are charged. In case of inter-state Integrated GST is charged. Welcome to our bimonthly GST Update post. Without any further ado, let us discuss the latest developments about the GST.

GST IN THE IT SECTOR

Many of our readers and customers have been asking us to write about the impact of GST in the IT industry. So, we’d like to start with that. One of the most important things that has been seen in the IT sector after the roll-out of Goods and Services Tax is ITC. ITC is also called as Input Tax Credits and is very popular among decision makers and other individuals working in the IT sector. Companies and traders in the IT industry selling goods and services could not claim service tax paid on AMCs for their computers and software before GST. With ITC, it has been made a cakewalk.

Earlier purchasing a CD, DVD or hard disk would consist of 3 taxes being levied on it:

  1. Excise Duty
  2. VAT
  3. Service Tax

GST on IT sector attracts 18% of software services provided by software companies. For purely software services, the cost of such services will increase under GST. If you have a software business then you need to change your accounting system and ERPs to get them in sync in with GST. This would increase infrastructure costs and also management costs. Most large companies in fact do set up teams to manage their GST.

LATEST GST NEWS AND UPDATES

  • In case you are a taxpayer who’s GST registration has come to and end you are required to give the final return in FORM GSTR-10 till 31st December 2018.
  • The 30th GST Council meet was held via video conferencing and revolved around the administerial progress made in GST system. There was also discussion in levying cess in case of exigencies.
  • A seven member group of ministers was formed to submit recommendations to the GST council by 31st October 2018.
  • The council recommended 10% cess to recover loss due to Kerala floods.
  • October GST collections topped Rs 1 lakh crore. In a tweet by finance minister, he attributed the success of GST to lower rates and lesser evasion and higher compliance.
  • The GST revenue rose to Rs 94,442 crore in September and the government was hopeful that it could surpass the landmark of Rs 1 lakh crore in the following months due to the festive season.
  • This GST prediction suggests that collection might be improving and economic growth is set to be better in the second half of the financial year.

So, these were the latest updates about the Goods and Services Tax (GST). Found anything useful? Share it with your colleagues and friends. Feel free to let us know your thoughts in the comment box.

The Definitive Guide to Understanding all About GST Returns

The 1st of July 2017 marked a historic day for the country of India. It was on this day that the primitive taxing system on goods and services was abolished, and a single goods and services tax, better known as the GST, was brought into practice. Aimed at uniting the nation into a single market, the goods and services tax affected individuals and businesses alike. Service tax, value added tax and other taxes all gave way to the GST, which is a tax levied on value addition at each stage. Therefore, the consumer has to pay tax charged only by the last supplier in the retail chain. GST ranges to a maximum of 28% tax levied on products, the actual amounts vary from service to service. Obviously, a new system will bring with it new rules and regulations, which was the case with the implementation of GST. As employed personnel file income tax returns, retailers and business owners are required to file GST returns, which includes 3 monthly ones and 1 annual one. This amounts to a total of 37 returns in a financial year. Registered dealers file GST returns which include purchases, sales, output on sales and input tax i.e. GST paid on purchases. Under the new GST rules, tax return filing is mandatory. Every individual registered under the GST act has to file tax returns, which can be easily done online. Special cases such as composition dealers require special returns to be filed.

 

Scepticism regarding implementation of GST was an all-time high when the tax was first introduced. Most of those doubts have been resolved now, still, a few nagging questions remain here and there. Let us attempt to solve them by listing the advantages of implementation of GST and filing GST returns on time.

A larger tax base

As more and more businesses become GST compliant, overall tax liability is expected to be reduced, due to the enlarging of the tax base in the country. Expectations are that GST will have quite a significant impact on the tax base in India. Using technologies such as Aadhaar and PAN databases will also make GST return filing and compliance an easier and streamlined process, thereby speeding up the enlargement of the Indian tax base.

Reduction in taxes

Under the VAT scheme, businesses are forced to comply with VAT regulations if they cross an annual turnover of INR 5 lakh. This is way less when compared with the GST regime. According to the new GST rules and regulations, businesses must become compliant only if they have annual turnovers of INR 20 lakh or more. This figure is INR 10 lakh for the north eastern states of India. Hence, the implementation of GST brings about lower taxes for all parties involved. Customers also pay lower taxes for goods and services, since they only pay the tax charged by the last supplier in the chain.

A unified platform

With the advent of GST, businesses have said goodbye to multiple VAT registrations in different states, in addition to different service tax registrations. Now, a single GST registration and compliance is enough to do your businesses pan-India. Indirect taxes have been standardized and streamlined, and the implementation of GST has brought about a unified platform in the Indian economy for all types of businesses and individuals.

The ease of doing business

Due to the unification of all taxes, businesses find it easier to operate and earn profits. As mentioned before, the convenience of not having to run around to multiple states or obtain multiple service tax and VAT compliances is a major factor why GST has been touted to be so successful. No compliance burden on businesses means that doing business is easy, with the tax distinction on goods and services now blurred. With taxes like purchase tax, customs duty, and luxury tax now subsumed under the GST banner, it makes tax collection and compliance easier than ever before for all businesses and individuals registered with the GST act.

GST and India TAX

 

GST returns and types

In accordance with the new GST laws, there exist 11 types of GST returns which are to be filed. A few of these need to be filed by all regular businesses, while others are for special cases such as composition schemes. Return filing is mandatory, even if no tax amount exists, a nil return needs to be filed. All filing of returns is done online.

For regular businesses, they need to file 5 kinds of returns-

  1. GSTR-1

This return contains details of outward supplies affected from July to March, on taxable goods and services. This return needs to be filed monthly and is due on the 11th of every month.

  1. GSTR-2

As the GSTR-1 contains details of outward supplies, the GSTR-2 contains details of inward supplies of taxable goods and services, and services affected claiming input tax credit. The return is due on the 15th of every month, but has been suspended as of now.

  1. GSTR-3

This can be viewed as a summarization of GSTR-1 and 2. It is calculated after analysing the details of both outward and inward supplies and payment of tax. It is due on the 20th of each month.

  1. GSTR-3B

Containing details about returns up to the month of March, this is another monthly return that needs to be filed by the 20th of the next month.

  1. GSTR-9

The GSTR-9 is the annual GST return which is filed by the 31st December of the next financial year. Companies with turnovers of less than 1.5 Cr INR in the previous financial year can file quarterly returns (GSTR-1) by the end of next month in the July-March period.

For certain special registered retailers or dealers, here are the other return types that need to be filed-

  1. GSTR-5

A monthly return that needs to be filed by the 20th of the next month under consideration, this contains information on returns for non-resident foreign taxable persons.

  1. GSTR-6

This is the return type for input service distributors, and is due on the 13th of every next month.

  1. GSTR-7

Returns for authorities deducting tax at source are filed under the GSTR-7 category, and are due on every 10th of the next month.

  1. GSTR-10

This is the final return that needs to be filed by dealers once upon cancellation or surrender of registration.

Composition scheme

To enjoy benefits of lower tax rates and compliance, dealers often enter composition schemes with other affiliate businesses. If your business has an annual turnover of up to INR 1 crore, and you are a manufacturer of goods, dealer or restaurant owner, you can opt for a composition scheme. Two types of returns need to be filed under the composition scheme-

  1. GSTR-4

This is a quarterly return for compounding taxable person, and is due on the 18th of the month succeeding the quarter under consideration.

  1. GSTR-9A

This is the annual return which is filed by the 31st December of the next financial year.

Late fees and interest

GST return filing is mandatory for all compliant businesses. Even if there is no tax to file returns for, a nil return must be filed. If one does not file the previous applicable return, he/she cannot file the next return due, thus having a cascading and devastating effect. Late fees and interest pile up for each return not filed, which ultimately leads to heavy penalties.

The late fee as per the GST act is INR 100 per day per act, which sums up to INR 200 for CGST and SGST. For a few returns such as the GSTR-1, 5, 6, and 4 are now INR 50 per day. For nil returns, the same is now INR 20. For the months of July, August, and September, the late fees of the GSTR-3B have been waived off.

There you have it! A crystal clear guide to understanding GST returns, the filing processes, types of returns and late fees. Now you know all there is to know about filing your GST returns. Don’t wait! You just might incur a late fee penalty!

Difference Between Indian GST and GST Around the World.

India finally adopted the Goods and Services Tax in the July of ___. Aimed to establish a singular tax over the entire nation, the GST unites the myriad pre-existing taxes under one umbrella. But India is not the first country to introduce a tax aimed at increasing tax collection efficiency, reducing corruption, tax evasion, and making movement of goods easier. More than 140 countries have implemented the GST, with France winning the race by doing so in 1954.

It is important for the people and especially business people to understand how the GST and it’s rules varies from country to country. Not only this, it is even more important as the specifications and functioning of GST Software varies too.

India’s GST

India has adopted the dual-GST model which can be seen in countries like Canada and Brazil. This has been done as India is a federal country where both the Centre and the States have powers to levy and collect taxes. Both the levels of government have responsibilities as assigned by the Constitution for which they need to raise resources. A dual GST, thus, justifies the Constitutional requirement of fiscal federalism.
It’s still not a uniform tax as there are five tax slabs – 0%, 5%, 12%, 18%, and 28%. It technically is not a single tax. The distinctive factor in the Indian GST is the 18% slab, which is higher than any other emerging market economies.

GST around the world
New Zealand
New Zealand adopted GST way back in 1986, where the tax for everything has been a singular slab. The slab stood at 10% until 2010, after which it was bumped up to 15%. The GST does not apply to residential rents and financial services. Businesses here can recover the GST as an input cost. Due to the fact that GST was adopted such a long time ago, the GST Software in New Zealand is much simpler and direct.

Singapore
Singapore has a universal rate system on every purchase. Initiated in 1994 with a flat rate of 3%, it was not until 2007 that the rate was increased to 7%.

Indonesia
The Indonesian model is slightly complicated with imports being subjected to both VAT and GST, but most exports are exempted from the list. If the services are supplied out of the country by foreign taxpayers, the tax rate is 10%, and certain items are taxed at 20% with the maximum cap being 35%. Imports subjected to the luxury tax are marked between 10% and 50%. Most items like gold, mining products, arts and entertainment, education and medical health are not subject to pay any VAT. This broad range of tax slabs makes the pharmaceutical management softwares even more complex.

China
There are three tax rates existing in the model: 0%, 5%, and 19%. China has maintained the GST applications over goods and the provision of repairs, processing, and replacement assisted services. This means that is partially collected on goods which are consumed in the manufacturing process as the fixed asset goods.

Canada
The Canadian GST closely resembles the Indian GST with taxation regimes under three schemes: Federal GST, Joint Federal, and separate Federal. Federal tax is the predominant system while joint federal runs on the synchronisation between the economy and the states. Separate federal only applies to Quebec as it is deemed a quasi-independent province. The tax rate is 5%, except for some provinces where a sales tax of 15% exists.

USA
The USA collects taxes at separate levels ie the federal, state, and local governments. The federal tax rates are marked between 10% and 39.6% of the taxable income, while state and local governments mark the tax from 0% to 13.30% of taxable income.

Ukraine
The standard tax rate is 20% and the VAT is added to the cost of goods and service prices. Some supplies are subject to lower rates like 0% and 7%. Generally, pharmaceuticals, medicines, and medicinal equipments incur the 7% slab while the export of goods and services are marked at 0%. These slabs are needed to be weighed in while creating or procuring a pharmaceutical management softwares.

France

GST was born in France with 4 tax rate slabs. The rates here are chargeable in the slab of 2.1%, 5.5%, 10%, and 20%. Most of the goods are marked at the standard 20%.

This was our take on how the taxation system varies from country-to-country around the world. You think we miss something that the readers must be told about? Feel free to let us know in the comment box or contacts us.

Tips for Filing GST in India | GST Blog

The advent of the Goods & Service Tax, which has replaced the numerous indirect taxes levied, had brought with it a lot of chaos and confusions about how the new system will plan out. After facing the initial hiccups since its launch in July 2017, GST compliance has started picking up pace.

That does not make it less confusing to file returns.

A return is a document used by tax authorities to calculate tax liability. It contains details of income which a taxpayer is required to file with the authorities. A typical GST returns includes:

  • Purchases (Inward supplies)
  • Sales (Outward supplies)
  • Output on sales
  • Input tax credit

According to the norms, any regular business must file GSTR1 and GSTR3B every month. This amounts to a whopping 24 returns in a year. Returns like GSTR2 and GSTR3 have still not come in practice due to the compliance challenges faced by the users.

But there is good news. Your business need to not have any additional complications from filing returns.

Here are some tips on filing your GST returns safely:

  1. ITC is your lifeline
    Input Tax Credit is something that keeps your life in balance, more so for SMEs. The availability of ITC could determine the cost of compliance and estimate the competitiveness of a business. ITC can be claimed on expenses incurred during ‘furtherance of business.’ SMEs can claim ITC across a lot of avenues if they’re familiar with the law, and thus reduce costs of operation.
  2. Keep invoices and transaction details safe
    ITC (Input Tax Credit) can be claimed based on the GST returns submitted on the GST portal. Initially, it was thought to work after matching GSTR1 and GSTR2. But now, it works based on the GSTR1 and GSTR3B filed. However, the invoice records must be maintained meticulously to ensure proper entry at the time of return filing.
  1. Do away with manual bookkeeping
    GST is a step towards digitizing the entire Indian economy. The GSTN portal is the most used source for uploading all types of returns, verifying account balance and checking the ITC granted. Transcribing manual records onto a computer screen not only is taxing, it can also result in a costly mistake.
    Softwares for filing GST turn this entire process into a pleasant experience.
  2. Easy Way Out?
    Here’s the ultimate cheat: third party
    GST software for filing your returns. Of course, tax returns can be filed directly on the GSTN portal, but if you are not well-versed with the forms or the technical aspects of the entire situation, it is much more convenient to file taxes using a GST software.

Benefits of using a GST software:

A GST software incorporates convenience and digitization into a single user-friendly experience.
Usually, most businesses settle with a bookkeeping software that usually takes care of all the inventories, tax calculations, invoices, and bills. The introduction of
GST software takes care of these technicalities. It makes the registration and migration of data extremely easy.

GST software also simplify invoicing. Service based companies have to follow the tedious procedure of calculating taxes based on transactions and different items with varying rates. Filing returns with a GST software puts all of this on a computer screen with drag and drop ease of access.

Customizability is another brilliant aspect of a GST software. It automates tax and other rates according to business processes. The user can customize the tax calculations based on their business requirements. There exist a lot of myriad taxes, using a software to file GST makes sure that all tax penalties are appropriately addressed. A GST software comes as a time-saving, cost effective measure that is practically error free. There is no threat of miscalculations or losing invoices. Filing taxes with a GST software can help manage all of the operations with ease. And finally, all your data is accessible anytime, anywhere. This is the main benefit of using a GST software. Data check, and verification, keeping track of cash flow, and real time payment analysis are all possible due to GST softwares moving the entire bookkeeping experience online.

The two types of GST softwares available in the market are:
– GST enabled accounting software, that help with accounting and filing
GST filing software, that help only with reconciliation, filing, and invoicing

As with everything else, there is no one-size-fits-all best GST software. You have to decide according to your requirements, which would be the best GST software for you.

While looking for a GST software consider the price, its unique features, advantages, and disadvantages. If possible, try various softwares before settling on your final choice. A few popular choices are Tally ERP, SpineTrader, Marg ERP, Zoho Books, Quick Books, Gen-GST, Sine Wave, and Clear Tax.

Conclusion
GST has fixed a lot of problems with the original cascading system of indirect taxes levied on good and services. It has benefited logistics, regulated small businesses, reduced compliances, and is already benefiting small businesses. Filing returns on time, claiming proper ITCs, and keeping a record of all your transactions are all you need to keep on top of your tax game.

7 Tips to Effectively Run Your Retail Store

Running a retail store is not a child’s play. The main job of such an establishment is to buy wholesale
goods and then resell them to the customers. Believe us, this job is not as easy as it sounds. There
are some things that you simply must know about running a retail store. You need to know what’s
best for business, how to perform a given activity and how to manage your employees.
Using technology to aid your retail store management is a must these days. Billing software and GST software for retail ensure that your retail business transactions are done efficiently, and the GST
compliance is done as well. This ensures that the work at your retail store is spick and span, and
efficient and effective. Now, running a retail store requires knowledge of some key areas of the
trade, which one must know. Here are 7 tips to effectively run your retail store.

Research and planning
The research and planning of a store come before running a store. The trader must ensure that it
sells what customers are willing to buy. After all, what is the point of investing your hard-earned
money into something that isn’t even wanted by customers? So, look around. Ask people if they
would pay for what you’re about to provide them. Create a proper plan. For instance, if you are
looking to open a coffee shop, why not follow “Book N Café” in New Delhi, and provide your
customers with wonderful reads over a hot cup of coffee? Being creative in your plans, and
methodical in your research is the key to success.

Efficient merchandise selection
Visiting different wholesalers and getting an idea of what you want to stock your shelves up with is
probably a good idea. This can be one of the most important, and the most fun-filled activity
involved in successfully running a retail store. Here’s also where technology can come real handy.
Once you fix the merchandise for your store, you can add its inventory to your Billing and GST
Compliance software for quick billing. The software can also be customized to create categories as
per the customer preferences or discounts offered on products. This in turn ensures an automatic
management of goods in a store.

Effective employee management
A retail store owner spends a lot of money in order to build up the store, but it can all be brought
down by incompetent and negligent staff. Employees need to be managed in such a way that they
know exactly what they’re doing, what is the best way to do it, and how to communicate politely
with consumers. Why is it that huge chains like Walmart and Target just seem to grow every day?
Their employees are a huge factor. For example, if the cashier knows the ins and outs of the billing
software being used by the retail store, he/she can process more customers in a given time frame
than someone who is relatively amateur.

Communication is key
Whether it be with your employees or customers, communication is one of the most important
aspects of running a retail store. Informing your customers about your GST compliance, by
mentioning the GST software for retail gives an additional credibility to your store and generates
trust among customers. It is equally important to let your employees know how good or bad they
are at their assigned jobs.•
Advertising
A follow-up to the previous point, some sort of advertising must be employed by a smart retail store
owner. Flyers, newspaper ads, signboards and other advertising media can prove to be beneficial for
store owners and can draw in customers who may be looking for the exact thing that you’re
providing. In this huge world, how will your business thrive if people don’t know about it?

Promotions and offers pull customers in herds
Attractive prices, discounts, and benefits are all that a customer wants from their retail store. In
order to survive in this highly competitive market, you need to have an edge over your rivals.
Whether it be using the latest billing or GST software for retail, or discounts and promotions, there
simply needs to be an X-factor to your business. Offers and benefits do the job really well, with
customers attracted to the reduced prices, thereby increasing your sales.

Scouting competition is a part of the process
A store manager at More megastores must think about the marketing policies, offers and other
promotions that, for instance, Big Bazaar is doing. Similarly, you need to check out what your local
competition is up to, and how can you outperform them. Simply knowing about your competition
isn’t enough, you need to have the tools to outsmart and out-sell them. Whether the tools be using
the latest billing software or unique marketing strategies, the choice is up to you.
There you have it! 7 effective and efficient tips to keep your retail store running for decades and
centuries to come!