While I am working for services Industry,I have Observed that the Impact of GST has deeply influenced the Small Contratctors and Startups (Services Industry).How?
Due to Gst it became mandatory to pay taxes in time,and submit returns in time.
What Happens - The vendors providing the services through out the month and raise invoices, but the clients are reluctant to pay their payments in time, it takes two months or even more with some reputed Clients to clear the invoices, however the Poor vendor has to pay the salary as well as GST also, which has increased an extra burden.
Earlier in service tax era, the tax were being paid by Client (Ltd & Pvt Ltd Companies availing services from proprietors) and hence vendor has to manage salary part some how, but Now GST amount is also required to be managed from the Pocket after rendering services to the Client. The new startups with limited Capital to roll, are Like Small fishes being engulfed by the Big Fishes just by not making their Payments in time.
The Second Part is that most of the startups are not well aware of GST, ITS PROCEDURES and its Consequences Due to which they find difficulty in regularising their Tax Issues.
Having said this,I would like to ask,If the Govt is so pro towards Start ups, why cant it come out with some good solutions towards regularizing the GST issues.
Reverse charge Mechanism is not Clear in GST for me. Can any body help me knowing more about it.
From India, Vadodara
365Due to Gst it became mandatory to pay taxes in time,and submit returns in time.
What Happens - The vendors providing the services through out the month and raise invoices, but the clients are reluctant to pay their payments in time, it takes two months or even more with some reputed Clients to clear the invoices, however the Poor vendor has to pay the salary as well as GST also, which has increased an extra burden.
Earlier in service tax era, the tax were being paid by Client (Ltd & Pvt Ltd Companies availing services from proprietors) and hence vendor has to manage salary part some how, but Now GST amount is also required to be managed from the Pocket after rendering services to the Client. The new startups with limited Capital to roll, are Like Small fishes being engulfed by the Big Fishes just by not making their Payments in time.
The Second Part is that most of the startups are not well aware of GST, ITS PROCEDURES and its Consequences Due to which they find difficulty in regularising their Tax Issues.
Having said this,I would like to ask,If the Govt is so pro towards Start ups, why cant it come out with some good solutions towards regularizing the GST issues.
Reverse charge Mechanism is not Clear in GST for me. Can any body help me knowing more about it.
From India, Vadodara
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Order No. 1-2018 Extension of date for submitting the statement in FORM GST TRAN-2.pdf