Most small businesses are quitting GST because businessmen are unable to reduce GST compliance costs. The government has done some modifications to the compliance part for the small businessman, however, there are some issues for the traders while following the procedures given by the government.
In the 32nd GST council meeting, the government extended the GST registration threshold limit from earlier INR 20 lakh to now INR 40 lakh per annum turnover, applicable from 1st April 2019 after the notification.
The reason being extending of threshold limit looks like the government now giving relief to small businessmen, however, they might also think of the cost input in the compliance procedure as giving an extra burden.
Top Methods of Reducing GST Compliance Cost
Here, we are going to provide some low-cost compliance maintenance methods which can be followed by any businessman, association, or business community to reduce the compliance cost of GST.
Hire CA Collectively
Any business association or union can hire a chartered accountant collectively which will further assist every member of the association while dropping the cost of hiring a CA if calculated on a per-head basis.
GST Practitioner
A GST practitioner is an authorized entity of GST and can be hired for GST-related accounting work. They are relatively economical in comparison to chartered accountants while giving services at par.
GST Staff Trainer
Once in a while, the businessman can call an experienced GST professional or GST practitioner or Chartered accountant to give any accounting training to his staff for the technical operational duties. This would certainly save money for the business having time to time training without spending on a full-time professional.
Tax Software Trainer
The business can also try to call professionals from the tax software company from where the organization is taking services of accounting and GST software. The professional may try to brief on the procedure of using the GST software while also clearing any doubt regarding the filing of return forms.
Free GST Software
In the 32nd GST Council meeting, the government announced free accounting and invoice software for GST return filing. It is better to get the software and start filing through it as it will be secure as per the government database management. It will also help the small business to keep down the compliance cost.
