How GST Affect the Small Business

How will GST Affect the Small Businesses?

The Goods and Services Tax, which is better known by GST, is being advertised by the government as one of the biggest tax reforms in the history of the Indian economy. However, even though it seems promising with its simplification of the current taxation structure and elimination of double taxes, etc. it is important to know how it’s going to impact the SMEs of India.

Ease of Doing Business

Under the current system, every new business has to get a VAT registration from the sales tax department. Thus, if you are doing business in multiple states then it can be a big hassle to deal with the different registration process and associated fees, etc. of these states. Since the VAT applicable on a certain product can also vary from one state to another, it can also be a problem. So, say if you are selling mobile phones in different states, then it’s possible that you have to sell the same product at a different price depending on the state.

The Goods and Services tax will be the same for every state. Thus, you won’t have to worry about calculating different prices for your products. Plus, GST will also eliminate other indirect taxes such as central sales tax (CST), service tax, etc. Under the GST regime you will only need to pay only one tax for the state you are operating your business in, called SGST (State GST), and one for the central government, called CGST (Central GST).

GST will also allow you to offer your products at lower prices due to the elimination of double taxes. The repeat taxes applied on a product can be claimed by you in the form of Input Tax Credit if you are GST liable.

Preparing for GST

Unless preparation is done in advance, working under the GST regime can become really difficult for you as an SME. Thus, it’s better to get started as soon as possible.

The first thing you must do is ascertain whether you are liable to register for GST or not.

The government has linked the aggregate turnover of a business with the GST liability. So, if your annual turnover is higher than the threshold limit then you have to register for GST.

The aggregate turnover requirement for GST registration is given below:

 

 

Region Aggregate Turnover
Liability to Register Liability for Payment of Tax
North East India Rs 9 Lakhs Rs 10 Lakhs
Rest of India Rs 19 Lakhs Rs 20 Lakhs

 

However, getting your business registered is only the beginning. There are many things you need to make yourself familiar with, such as Input Tax Credit, the filing of returns, and issuing invoices.

Depending on your business you will need to file GST returns on a monthly basis, and also keep a track of your stock and issued invoices to claim input tax credit.

How to Make the Transition Easier?

There is a slew of changes that the GST regime will bring in the current business industry. Dealing with them all can be extremely difficult on your own. Thus, it’s better to hire a good CA or tax consultant.

Another good thing that you can do is subscribe to an invoicing and expense management program that is GST compliant. It will help you create invoices that in line with the GST standards, and keep a track of your inventory and sales.

Integration That We Provide, To Make Your Life Easier

Integrations That We Provide, To Make Your Life Easier

Managing money, accounts, finance and other monetary issues for your venture is crucial and needs to be given ample importance. As the size of the company increases, accounting entangles and hence, you might find yourself distracted. If that has ever happened to you, this article is specifically for you!

Online vs. Offline Cash Flow Management

When it comes to comparing offline and online cash flow management, managing online is always easier and a go-to option. When something can be done in 2 minutes, why invest 2 hours in doing the same?

Online accounting and invoice creation is not only a cakewalk to create but also takes a jiffy to look back.

numberz, always at your service

We at Numberz, not only have created a trouble-proof way of managing your accounts, invoices, and expenses but also provide various other features to make your life easier. Hence, we have integrations as a path to smooth accounting.

The integrations, and how to use them!

 

  1. Excel at your fingertips!excel invoice

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Creating invoices in bulk is a tedious task, but is supposed to happen every month.

So, what do you do when you need to create bulk invoices?

Fill each one manually? Or scratch your head to find certain better ways of managing invoices?

Let’s save up some time for you. Creating excel sheets are easier as you can copy paste easily. Right? You can use that for creating invoices in Numberz as well. Just create an excel sheet and upload into your debtor list here. You can reach this page by going to the invoice section and selecting ‘Import invoices’ from the dropdown at the top right corner (near ‘add invoice’ button).

Not only can you import invoices through excel, you can do same for expenses. Just navigate to expenses, from your dashboard and click on ‘Import Bills’. In case of any confusion, there is always a ‘guide me’ section to help you.

 

  1. The Tally Integrationinvoices on tally

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We understand that almost every accountant is in love with Tally and when you’re onboard for using numberz, you don’t need to hassle enough to get into your next favorite platform. Follow the given simple steps to integrate numberz and Tally smoothly.

Note: You’d need three things for this integration.

  1. Chrome plugin that you can find here
  2. Registration on numberz
  3. Tally on your system

For using Tally integration and for syncing all the invoices and debit notes to Tally, follow the steps as given here.

  1. Banking integration

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The payments of the invoices are done through bank accounts, and creating invoices but not syncing with the bank account, might cause balance mismatch. To overcome this issue, we have ‘Banking Integration’. By using bank reconciliation you can easily associate your bank transactions with your invoice line items.

For syncing your bank transactions and your invoices, follow the steps given here.

  1. Partners integration

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Partners integration is the term that we have given to our tie-ups with NBFC and various other banking organizations, for providing a credit line to help businesses from running out of money.

The easy integration and well-defined ways of using them are all meant for making cash flow easy and invoice management even easier. We at numberz understand that it is important to make accounting smooth, but we also know that it is even more important to be comfortable with a software, to use it frequently, and that’s why we have these integrations and much more in the pipeline for the coming releases. We hope you’d find them useful.

Doubts? Problems? Confusion? Need help? Get in touch, anytime!

Numberz is now on android play store and iOS store

numberz goes mobile: Introducing Android and iOS apps for your smartphone

We at numberz understand that cash flow management is much more than just tracking your receivable and payables on Excel sheets, and doing it on a wide desktop screen, more so. It has been our constant endeavor to enrich your interaction with us in a simpler way.

Towards reaching the above el-dorado, we are taking a BIG step! This April – we are going mobile.

The numberz you love has a soulmate. Our ritzy app is now available on Android and iOS. Now carry your business with you while we take care of all your numbers. Use the app to create and send invoices on the move. Spend and record your expenses instantly. And much more!

Discover the many benefits & features of our app. Your beloved product comes with the same functionality found in website version, nothing is different – yet everything has changed!

Simplified Dashboard – An overview of all your business insights in one place

  • All your critical business data in one place.
  • Glance your business numbers – invoices, expenses and loan data on the move.

Faster Payment Options – Anywhere, anytime

  • Create, send and track invoices so you always know who owes you and who has paid you.
  • Go cashless using numberz “pay now” feature. Get paid by your clients using credit/debit cards & net banking. Easily follow up on invoices using phone, SMS and of course email.

Smart Expense Tracker – An umbrella for all your rainy days

  • Create quick bills and prioritize your payments by getting deeper insights on expenses.
  • Track vendor and tax level details by creating vendor bills.

Getting started on numberz is quick & hassle free. Create your account on numberz website and use existing credentials to login in your app.

Download links

iOS:https://itunes.apple.com/in/app/numberz-invoicing-cashflow/id1208042638?mt=8

Android: https://play.google.com/store/apps/details?id=com.numberz.app

GST Registration india

GST Registration Process in India Explained

The much-anticipated GST is finally going to be implemented from 1st July 2017 onwards in India. It is expected to bring a major change in the business industry by eliminating multiple taxes and improving tax compliance standards.

If you run a business that’s based on the selling of either goods or services, then you are required to apply for GST registration if you want to collect GST from your customers or claim input credit, which is one of the biggest features of GST.

Although GST has its merits, not every business needs to apply for it. There is a turnover based liability criterion for GST registration that has been set by the GST counsel. According to this criterion the businesses in the North-East India, Sikkim, Himachal Pradesh, J & K, and Uttrakhand that have the annual turnover below Rs. 10 lakh do not require GST registration. For the rest of India, the threshold is Rs. 20 lakh.

Even if your turnover doesn’t exceed the threshold limit you may still need to register for GST as per paragraph 5 in Schedule III of MGL. It requires you to register for GST if you are a/an:

  • Casual taxable person
  • Person who is required to deduct tax under section 37
  • Input service distributor
  • Electronic commerce operator
  • Person who supplies goods and/or services on the behalf of other registered taxable persons
  • Aggregator who supplies service under this trade name of brand name

If you want to register for GST then follow these steps:

PHASE 1

  1. Go the official GST portal i.e. www.gst.gov.in and log in to your account using the provisional ID and password that’s provided to you by the VAT authority of your State.
    GST Registration india

 

  1. Enter your email address and mobile number.GST Registration india
  2. You will receive an OTP on your provided email address and mobile number for verification. So, enter the same in the appropriate sections and click the “CONTINUE” button. You can also click the “RESEND OTP” button if you have not received the OTP for some reason.GST Registration india
  3. Once verification is complete you can enter your new credentials and create a standard account. You need to provide a unique username which should be of 8 to 15 characters long and can contain numbers or a few certain special characters. You also have to provide a new password which again should be 8 to 15 characters long and must contain at least one alphabet, one number, one uppercase letter, one lowercase letter, and one special character.GST Registration india

 

  1. Answer a few security questions which can help you in the future in retrieving your password in case you forget it.

Once you are done you can click the SUBMIT button, after which you will be automatically logged out.GST Registration india

 

The next screen will be like this:GST Registration india

You can see a message on the top informing you that your username and password have been created. With this, the PHASE 1 is also completed.

PHASE 2

  1. Login with your new credentials by clicking the ”Existing User Login” button.GST Registration india

Once you have entered your login details you will get a message:GST Registration india

 

Click the “Continue” button.

  1. You will see your dashboard now. Click the “dashboard” menu.GST Registration india
  2. You need to upload your DSC (Digital Signature Certificate) now. For that, click on the Register/Update DSC command.

You will see the following screen now:GST Registration india

To register your DSC you have to download and install the DSC client installer from the DSC Registration page of the GST Common Portal first. Once it’s done you can select the PAN of the authorized signatory from the drop-down list.GST Registration india

 

  1. Mark the checkbox and click on “PROCEED”GST Registration india

The next screen will be like this:GST Registration india

  1. Choose the correct certificate and click the Sign button. You will receive a message on the display if the registration is successful.
  2. Go back to the dashboard and fill the sections provided under the Enrolment tab such as business details, promotor/partners, bank account details, etc.GST Registration india

You will need to provide the application reference number and upload a few mandatory documents which are as follows:

  • Constitution of Business- Registration certificate or a partnership deed.
  • Details of bank accounts- scanned copy of the passbook’s first page or a bank statement.
  • Recent Photograph
  • Proof of principal place of business- Any of the following: latest receipt of property tax, electricity bill, memorandum of association and articles, municipal khata copy, or any other certificate or document issued by the government that can serve as a proof of your business place. In case the property is rented you can also provide a rent or lease agreement.

Once you have completed all the sections you can see the last tab:GST Registration india

Mark the checkbox, choose the authorized signatory, enter the name of the place and finally submit with your DSC. The next screen should be like this:GST Registration india

You will also receive an ARM which can be used for future correspondence, so make sure you note it down somewhere.

  1. If your application is approved then a certificate of registration will be issued to you within 3 days of submission. You will be also notified of the same through the registered mobile number and email address.

Note: If additional information is needed then another form GST REG-03 will be provided to you. You can respond by submitting a filled-out Form GST REG-04 within 7 days after receiving the form GST REG-03.

GST has numerous benefits. It can allow you to offer reduced prices on goods and services to your customers, make invoicing simpler, eliminate entry tax, etc. Thus, it is in your best interest to register yourself as soon as possible.

Ease prioritizing with numberz

Stress vs. Growth, Team Up With numberz

With the growth of digital age, and the advent of social media, the marketing has changed a lot for everyone, for every sector, and hence the competition has become tremendously perplexing. The existence of your venture needs to go through a lot. If you want to grow, you need to pull yourself out of the entangled and vicious cycle of this deadly competition.

 

While the competition might be a lot for calling forth problems to the ventures, it is not the only stumbling block on the way of success. Once you place yourself on the path of becoming a businessman (or a businesswoman), the options multiply and so do the problems. But do you have apt resources to cope with your problems? Do you have enough time to invest into the important and more important stuff?

You ask what problems? Well, let’s look at them one by one! (And we’ll elaborate how you can cope with each one of these, very smoothly)

 

Translating your cash gap

We, have come up with the credit line for businesses, in which we get basic data from you and after calculation of your turnover and your CIBIL score. You get your cash gap, also known as ‘valley of death’, filled and hence your business grows better than ever. We bridge your cash gaps and hence help your venture prosper!

 

With a 4 step process, you get the credit line, and hence the cash management becomes better than ever. Your contact details, your financial data (just the basic one), and BOOM, you get a way to fill up your cash gap!

 

Ease prioritizing payments, with numberz

The expense is one thing that needs to be managed very efficiently. numberz makes it easy to get real-time insights upon your cash-flow, and hence you decide what must go, where, and how much? Your bank accounts, your expenses, and your business, all stays in pace, according to you!

 

Paperwork is a headache to manage, and with numberz, you don’t need to entangle yourself into that! You can create new bills online and can upload or import old bills using Excel. As easy as, single click.

Similar to your invoices, your expenses need reconciliation too. But why to do that manually, when we can do that for you? Your bank account will always be in sync with your expenses and invoices, no matter what!

When you are able to see your business cash flow, the payments will be easily prioritized, and with prioritizing, the horizon of growth expands immensely.

Integration, for a smooth working pattern

Most of the data flow related to finances is saved and pondered upon in Tally and Excel. We understand that your systems must not be hampered. Hence we provide integrations with both of these. The flow, the integrations and the finance, all appear to be a very important set, that must be taken care of.

We help you manage your invoices, your expenses, your advances (on invoices), your account collaboration, we help you be in sync with your bank, and we integrate Tally and Excel for your smooth workflow.

 

Don’t let invoicing vex you

When you are continuously involved with your work and you need to look into various factors, missing a payment is something that can happen. But, you can NOT miss a payment. Right?

Well, we at numberz, make sure you do not miss any of them!

How? You ask?

You can create effectual invoices, in a jiffy, and can accept online payments quickly. This means you’d get paid faster. Your invoices can be estimated and created effortlessly, within a few clicks. You’ll have e-mail integrated, and hence you can send payments and reminders via e-mail. The invoices will be tracked and balance your cash gaps when you receive payments.

 

Advantages of invoicing with numberz

Your business will be GST ready, and hence deadlines won’t startle you!

Have you heard someone say, “Looks do not matter”? Well, that person was wrong. Why? Looks matter, and hence your invoice must be professional enough. For this, we provide already created templates, which can be e-mailed instantly.

Cash nuisance is something that irritates most and hence, Numberz provides you with a platform where clients can pay you via online options, be it net banking, online wallets, credit cards or debit cards. No more wrangles over payments!

Delay in payments is something that every business has to go through, but now you can send reminders and hence can quickly follow-up upon the payments.

Invoice reconciliation consumes a lot of energy on the part of accounts, but why waste time when your invoices can directly be matched with your bank accounts. No more manual intervention required!

 

 

With all these features at hand, what is important is accessibility. All the expenses, invoices and every other feature that you’ve loved about Numberz, are accessible everywhere you go, and on every device you use. The power of the Internet has emerged to be a vital factor that is ruling the world when you can, why don’t you use the internet as your helper?

 

Growing beyond horizons and expanding your venture in the direction of your dreams requires a lot of tough decisions and a lot of efforts. Entwining yourself amid the selection of the tool to use and investing your energy only on your finances, you might get distracted from your real passion. Your passion is the sole reason for your venture’s existence, and it must be given sufficient value. We, at numberz, understand this and hence have made the process of receiving payments, deciding expenses, and getting pre-approved loans, so smooth that you need to invest only a few clicks to your accounts and finance. Retain your energy for the real you, the real cause that your venture stands for; and we have the accounts issue resolved for you!

Let us know about the problems you are facing at hello@numberz.in

Composition scheme under Goods and Service Tax

GST Composition Scheme: All you Need to Know

The Goods and Services Tax, i.e. GST is going to completely transform the Indian business industry. From improved transparency to the elimination of double taxes there is a slew of welcoming changes associated with the new regimen. However, not everyone is liable to register under then new GST scheme. If your annual turnover is below the threshold, then you don’t have to register for GST, but rather a separate branch under it, which is the composition scheme.

The following are some of the key points you must know about the GST composition scheme:

Eligibility

The GST council has released a threshold limit to decide which taxpayers should be allowed to come under the composite scheme. If your annual turnover is below this limit then you can opt for the composition scheme.

The following explains the threshold limit:

For North East India, Uttrakhand, Himachal Pradesh, and Sikkim: The aggregate turnover of all the business verticals that come under then same PAN should be above Rs. 10 lakh for the preceding financial year but not higher than Rs. 50 lakhs.

For the Rest of India: The aggregate turnover of all the business verticals that come under then same PAN should be above Rs. 20 lakhs for the preceding financial year but not higher than Rs. 50 lakhs.

Input Tax Credit

A businessperson under the GST composition scheme cannot claim Input Tax Credit. This is one of the biggest drawbacks under this scheme. So, the merchants who are registered under regular GST regime will be able to offer lower prices on the same goods as yours by being able to claim a portion of the tax paid by then though ITC.

Tax Rate

Now, this is where you will be able to get a benefit over the regular GST merchants. The rate of tax levied under then GST composition scheme will be less than normal GST. However, it will still be at least 1% of the turnover of a financial year. The actual rate is expected to fall within 1% to 3%.

Voluntary Registration

To avail the benefits of the GST composition scheme you will need to register yourself on a voluntary basis, and that too every year. If your annual turnover crosses the threshold i.e. Rs. 50 lakh during any financial year you will automatically become liable to register under then regular GST scheme.

Note: If you are already working under the current VAT composition scheme then also you need to register under the new GST composition scheme on a voluntary basis.

Nature of Supplies

Only those merchants who supply within the same State can avail the benefits of the GST composition scheme. Thus, if your supplies are inter-state based then you don’t qualify for GST composition scheme.

Frequency of Returns

Normal taxpayers under the regular GST scheme have to file monthly returns via forms GSTR-1, GSTR-2, and GSTR-3. However, since the main objective of the GST composition scheme is to provide simplicity and ease in tax calculation, as GST composition merchant you will just need to file returns on a quarterly basis i.e. once every four months in a financial year.

Bill of Supply

The normal taxpayers under the regular GST scheme have to issue tax invoices. However, since GST composition dealers can’t claim tax inputs they have to issue a bill of supply instead.

Full Applicability

If you operate multiple businesses, then under the composition scheme you are not allowed to levy composition tax on some businesses and skip the rest. So, for instance, say you run a mobile store, a computer hardware store, and a snack bar, then the composition scheme will be applicable to all three of them. If the three businesses fall under then same business PAN they all shall be covered under the composition scheme whether they are being operated within a single state or interstate.

Moving from Composition Scheme to Normal Scheme, and Vice Versa

Situation 1: When you become a composition dealer from a regular dealer

If you are a composite tax payer then you need to pay tax at a rate not more than 0.5% for other suppliers of turnover, 1% for a manufacturer, and 2.5% for the restaurant sector. You also cannot:

  • Claim input tax credit of GST paid to you suppliers.
  • Supply goods through an aggregator (any e-com company such as Flipkart, Amazon. ).
  • Do business through a supply of services.
  • Manufacture some specific types of goods as notified by the GST council.
  • Supply goods that can’t be taxed under GST.
  • Collect tax on your outward supply of goods.

Situation 2: When you become a regular dealer from a composition dealer

When your annual turnover exceeds the threshold and you become liable to register under regular GST, you also become eligible to claim input tax credit.  However, you must claim it within 30 days from the date you become liable for GST registration to avail the benefit.

For a better understanding, consider the example below.

Let’s say that you are a manufacturer of blankets and have crossed the threshold limit for GST registration on 5th November 2017. You have raw wool in stock worth Rs. 2 lakhs and have paid a GST @ 18% i.e. Rs. 36,000 on it. So, you must apply for GST registration before 5th December 2017 (within 30 days) if you want to claim the ITC i.e. Rs. 36,000.

Returns to be Filed by a Composite Tax Payer

Filing returns is much easier and simpler for composite taxpayers in comparison to the regular taxpayers under then GST regime. In the former case, you just need to file an annual return and a quarterly return, or a total of five returns per year. The following table offers the details associated with these returns:

Return Form Frequency Due Date Details to be included
GSTR-4A Quarterly NA This form will be prefilled/auto-populated with the details provided by your supplier via form GSTR-1
GSTR-4 Quarterly 18th of the next month Details of all the outward supplies of goods and services along the prefilled details of the form GTSR-4A. If there are any changes required in the Form GSTR-4A then you can also add those in the Form GSTR-4.
GSTR-9A Yearly 31st December of the next financial year Combined details of all the quarterly returns along with the tax payment details.
what is GST

GST: What is it? Why it Matters?

GST, or Goods and Services Tax is a new tax system that will combine different individual taxes such as VAT, Entertainment Tax, etc. into one single tax. This system is aimed at disincentivizing tax evasion, lowering prices over time, and most importantly- simplifying business operations.

The GST bill (One Hundred and Twenty-second Amendment Bill) was passed by the Rajya Sabha in August 2016 and will be effective in the country from 1st July 2017 (tentative), although it was proposed way back in 2014.

GST will significantly improve the business industry in India, as it will prevent unhealthy competition among different states of India, encourage tax payments, give a boost to Indian exports through tax benefits to small manufacturers, etc. In fact, it is also expected to increase the GDP as well (80 basis point rise according to HSBC). However, what is it exactly, and how does it work?

Before you learn about GST, it is important to first understand how our existing taxation system is structured.

what is gst,

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The taxes levied in the country are broadly divided into two categories- direct taxes and indirect taxes. The direct tax, which is also the Income tax, is paid by an individual. However, the indirect taxes are more diverse and further divided into two categories- state taxes and central taxes, collected by the state government and the central government respectively.

As you can imagine, the existing taxation system is quite complicated. More than that the individual taxes, when combined, can end up becoming a huge amount which affects businesses negatively. With GST coming into action all these different taxes will be combined into just one simplified tax.

Although GST is a unified tax structure, it has three components (three different GST taxes) which are:

  1. CGST, or Central GST: It will take the place of a variety of Central Govt. taxes such as service tax, surcharges on the supply of goods/services, Special Additional Duty of Customs, etc.
  2. SGST, or State GST: SGST subsumes state govt. taxes such as entertainment tax, VAT, purchase tax, central sales tax, luxury tax, etc.
  3. IGST, or Integrated GST: IGST applies to import and interstate transactions. It will be shared by both the central and state governments.

So, by now it must be quite clear to you how GST simplifies the current taxation system. But how does it benefit a business and otherwise? Let’s consider an example.

GST works in three steps- from manufacturing to wholesale, and finally retail. Let’s discuss all these 3 one by one:

Step #1: Manufacturing

Let’s say a manufacturer of instant coffee buys raw coffee beans at Rs. 1000 per kg from a supplier. However, this price already contains a 10% tax:

10% of Rs. 1000= Rs. 100 (tax 1)

 

After producing the instant coffee, the manufacturer adds Rs. 200 to the price, making the final amount 1200. Once again tax is to applied on the price, which at 10% becomes:

10% of Rs. 1200= Rs. 120

Now, the manufacturer has already paid a tax of Rs. 100 when he bought the raw beans. So, according to GST he will only need to pay:

Rs.120- Rs. 100= Rs. 20 (tax 2)

Step #2: Wholesaling  

The wholesaler buys the coffee pack at Rs. 1200. He adds an additional amount of say Rs. 100 for profit, making the final price at Rs. 1300. Again, at 10% tax that shall be applied on it the amount would be:

10% of Rs.1300= Rs. 130

However, since Rs. 120 has already been accounted for from the step 1, the effective tax applicable here is:

Rs. 130- Rs. 120= Rs. 10 (tax 3)

Step #3: Retailing

Coming to the final stage, the retail will buy the coffee at Rs. 1300. Since he also has to make a profit on the sale, he adds Rs. 100 to the buying price, making the final rate Rs. 1400.

At 10% rate of tax the tax amount becomes:

10% of Rs. 1400= Rs. 140

Now, since Rs. 130 is already accounted for from the previous two stages, the actual applicable tax is:

Rs. 140- Rs. 130= Rs. 10 (tax 4)

Taking a look at all the three steps, the combined final tax levied would be:

tax 1+ tax 2+ tax 3+ tax 4= Rs. 100+20+10+10= Rs. 140

Thus, a lot of tax money is saved by this system as the redundant taxes are dropped. Calculations have also become simpler this way as there are less numbers to take into account. This is how GST will make doing business a lot easier and simpler.

With GST likely to be implemented from 1st July, it is important that you prepare for the changes. You will need to calculate taxes differently and may also have to change the cost prices and selling prices of your goods and services. That being said, now is a really good time to go digital. With online invoicing and expenses management services you can greatly reduce the overhead and also increase accuracy in the business records. You will be able to track your cashflow

Know and Fill Your Cash Gap

Let’s Fill The Cash Gaps

If you have registered yourself on Numberz or are checking out the way it works, you are most likely a person working around money for your enterprise, and hence, you must have witnessed cash gap yourself or have seen someone you know, go through.

 

The world revolves around businesses and businesses have money in their core, and hence ‘steps in’ the most dangerous problem of any business, “the CASH-GAP.” Some refer to it as ‘valley of death,’ for businesses, of course.

 

Having heard the word twice now, what exactly is cash gap?

Well, remember that time when you were waiting for a pending payment from a client, and a new investment requirement slammed itself on you?

That situation of you short on money for putting into the investment requirement is called cash gap.

 

According to the ‘Gompers and Lerner study,’ this challenge is the cause of 90 percent dying ventures within the first three years of their establishment. Well, don’t be one of them!

 

Cash Gap Is An International Problem

Most of the countries in the world are either developing or underdeveloped and hence the growth and failure of businesses is highly dependent on the cash flow management.

 

India And The Culture Of Business

As per stats, businesses and self-employment are the most prominent source of employment growth and contribute a major share to industrial production in India. This leads to even more pressure on the businessmen to maintain themselves and their identity.

 

Your Objectives And Financial Goals

Normally businesses need to invest in two type of goals, the short-term objectives, and the long-term objectives. Both of these behold equal value and hence the need to struggle in both the arenas steps in. This makes the exertion even harder.

 

Plan, Monitor, And Control

When it comes to cash management in enterprises, planning is the key. You need to plan by keeping in mind, all the buffers (and problems) that may arise and then monitor accordingly. While monitoring is important, it is also equally significant to control your expenses to expect most out of your investments.

 

Why Not Banks?

Cash gap and lack of cash management is a huge problem for all the springing enterprises, as huge as it leads to a summation of rupees 2.95 trillion (when cash gap is summed, of course). This gap is ever expanding, the reason being, the businesses especially SMEs are firms with financial requirement quite large for microfinance to be possible, but quite small for being solved by corporate banking models. SMEs are also a little riskier to be invested in when compared with corporations, and hence banking models in India are not very supportive.

 

How To Be Safe And Productive?

Ploy With Strategy!

Your strategies must include the cash management, liquidity management and lowering the cash gap. For all this to be possible, you need to know your clients and hence their way of working. You also need to have ample buffers, so as to avoid the vicious cycle of debt.

 

Give Government Methodologies, A Try!

Looking at the huge part of the economy that businesses and organizations like them are supporting, the government is also stepping in to help the growth rate rise. MUDRA is a scheme launched by the government, for funding the SMEs. It is an initiative having the sole intention of upliftment of SMEs and start-ups and hence the economy in general. The government has also launched ‘Make in India’ and ‘Start-up India’ schemes, which might benefit you. Remember that for this source to help you, you’ll need quite a lot of efforts, so prepare yourself before jumping into the realm of government funds!

There is one more way to escape the ‘valley of death’ and reach the heights of your dreams!

 

We at Numberz, have come up with a way of filling up the cash gap that stays only between you and us! We provide ‘credit line’ to our customers.

 

Well, you ask, what is ‘credit line’?

It is a pre-approved loan for those businessmen who are in dire need of finances. We provide working capital loans on the basis of your turnover and CIBIL score (or credit score). When you need to apply for a loan or need to cope up with a cash crunch, the maintained credit score (a.k.a CIBIL score) always helps.

 

How is it useful, or better than other methods?

It is not like this is the best among every possible option but the most feasible and easily accessible one. We understand that your energies must be invested in coming up with dazzling ideas to make your business best and that you must not be itching your head searching for options to get financial support. Hence, the credit line is just a few clicks away from you.

 

How can you get the credit line?

This is a 4 step process (we are not lying):

Step 1: Share your contact details with us.

Just the basic one, you know, we’ll need to be in touch, to make the process as smooth as possible.

 

Step 2: Share the most basic data

We’ll need the company details and a few documents for enrolling you up for the credit line. Trust us, they are the most basic ones.

 

Step 3: Determine your credit line

You get to determine your credit line limit, and we’ll guide you according to your turnover and your documents.

 

Step 4: We’ll get back to you

Relax. Work. Invest time in meaningful things. We’ve got this covered.

 

You feel it’s too simple to be possible?

Well, that’s what we’re here for.

 

With all that being said and your cash gap bridges in place, we always want your best. We’ll be on your side, whenever you need us and your brainchild will prosper like never before. Because, now, you can give it your full attention.

Got any question? We’re here to help. Feel free to reach us!

GST

GST and its implications for small business.

GST stands for good and service tax. GST implementation is said to be landmark reform in terms of taxation in India. While small business owners think as after Goods and Service Tax (GST) they need to deal with one tax inspector instead of many as in today’s scenario. GST will raise the bar for minimum turnover from 5L to 10L also it will lower the taxes whose turnover will lie in the range of 10-50L. Hence it will come as a big relief to small business owners. After demonetization and implementation of GST, Small businesses are forced to move on digital currency and stay away from heavy cash dealings. Also, it will allow them for better reporting and transparency. It will improve their chances to get access to credit from primary financial institutions instead of raising fund from the secondary market. After demonetization lending rate offers are bound to go down by financial institutions. Registering and expansion policies will be easier in Goods & Service Tax (GST) regime as India will become one market. Hence now selling goods across states becomes easier as intrastate transactions because cross-border taxes are being eliminated.

Also once small business gets Goods & Service Tax (GST) registration, it needs to generate GST based TAX invoice for compliance. This comes as a big challenge for small business owners as they don’t have enough budget to support the infrastructure required for meeting all the compliances in this digital era. But once all the invoices and cash flow actually move on to cloud solution and then it gets automatically reconcile with the master database of Indian government for Goods & Service Tax (GST) filing. Cloud-based solutions will play an important role in letting these small businesses file their GST with ease, both in terms of efficiency and monetary benefit. Security of these cloud-based solutions is the key issue for any small business out there as they have very specific customer segment and they play in the niche market with their product or services. Hence for any SMB to adopt one of many cloud-based solutions is going to be a key decision for data security. SMB needs a single platform where it can manage its own cash flow, raise invoices, manage expenses, file GST and get easy credit facility. Considering all these factors in mind we have created an awesome cloud based solution numberz, which actually helps in all these services with high security of data encryption. All data is stored on cloud only and is easily accessible from any device anywhere. It makes your business on the go and one can avail any of these facilities from one’s mobile handset or tablet. The idea is to reduce friction among all the agents involved and keep complete transparency among all parties involved.

Invoicing under GST

Invoicing Under GST: Everything you Need to Know

Almost every kind of indirect tax in India requires the preparation of an invoice. This is because not only it serves as a proof of a sale but also provides information on every other form of supply such as exchange, transfer, barter, etc.

With the implementation of GST however, the way invoices are created will be changed. According to the GST regime, two types of invoices have to be issued either before or on the occurrence of a particular event within a certain period. These invoices are the tax invoice, and bill of supply.

Tax Invoice

If you are a registered taxable person under the GST regime who is supplying goods or services, then you are required to issue a tax invoice for all the supplies involved.

Bill of Supply

If you are supplying goods or services that are exempted from GST, or if have opted for the composition levy scheme (provided under the GST regime itself) then you will need to issue a bill or supply rather than the tax invoice for the supplies. Plus, you can’t use the bill of supply to claim input tax credits.

What are the Differences Between a Tax Invoice and a Bill of Supply?

  • A tax invoice is to be issued to a taxable supplier liable under GST regime, who is supplying good and/or services that are taxable. A bill of supply, on the other hand, is to be issued by the supplier of goods and/or service that are exempt from GST, or in case the supplier is a composition taxpayer.
  • You can claim Input Tax Credits with a tax invoice, but not with a bill of supply.
  • Reverse charge (in which a tax paid is by the recipient of goods/services instead of the supplier) in allowed for the registered GST sellers. However, taxpayers under the composition scheme have to pay the taxes themselves.

How to Issue a Tax Invoice?

If you are a registered taxable person under the GST scheme, then you need to issue a tax invoice either before or at the time of when you have to:

  • Remove goods, in case the supply includes movement of goods.
  • Issue several statement accounts in succession.
  • Deliver goods to the receiver, in case the supply doesn’t include the movement of goods.

You have to issue a tax invoice in accordance with the following timelines:

  • Within 30 days under normal circumstances.
  • Within 30 days from the date of due payment, if there is a continuous supply of services and the due date is ascertainable.
  • Within 30 days from the date of payment, if there is a continuous supply of services and the due date is unascertainable.
  • At the time of cessation, if there is a continuous supply of services and the contract expires/made to nullify.
  • Within 45 days from the supply of service, if you are a bank on NBFC.

The following are the details to be included in your tax invoice:

  • Your name, address, and the GSTIN number or registration number.
  • A consecutive serial number that doesn’t contain any special symbols (alphabets and numbers only) and is different for every financial year. For instance, for the financial year 2017-2018, you can use 2017NameOfCompany.
  • Issuing date.
  • Description of the goods and services involved.
  • The total value of the goods and services.
  • Rate of tax levied (CGST, SGST, or IGST)
  • Place of supply along with State name, if it’s an interstate

If you are an exporter then you need to include some additional information in the invoice, which is:

  • Name of the country along with the address you are exporting the goods to
  • The statement “Supply meant for export on payment of IGST” or “Supply meant for export under bond without payment of IGST”, depending on the case
  • Your name and address
  • Number and date of ARE-1, which is the application for removal of goods for export

If you are a goods transport agency then the invoice issued by you should have the following information:

  • Gross weight of the shipment
  • Name of the consignee and consignor
  • Registration number of the carriage used for transportation
  • GSTIN of the taxpayer
  • Details of the shipment, such as the address of origin and destination

How many copies of tax invoices have to be issued?

If you are supplying goods then you are required to create three copies of the invoice:

  • Original Invoice: This is the original invoice marked as “ORIGINAL FOR RECIPIENT” which you have to issue to the buyer of the goods.
  • Duplicate Copy: This is the second copy of the original invoice marked as “DUPLICATE FOR TRANSPORTER” which you have to issue to the delivery boy (the one transporting the goods). However, if you have an invoice reference number then the delivery boy needn’t carry the duplicate invoice.
  • Triplicate Copy: This is the final copy of the tax invoice (marked “TRIPLICATE FOR SUPPLIER”) that you have to keep with yourself for record purposes.

In case you are supplying services then you need to create just two copies of the invoices:

  • Original Copy: This one is marked “ORIGINAL FOR RECIPIENT”.
  • Triplicate Copy: This one is marked “TRIPLICATE FOR SUPPLIER”.

How to Issue a Bill of Supply?

If you have opted for the GST composition scheme then instead of tax invoice you have to issue a bill of supply, as you are not allowed to collect the tax.

The bill of supply should include the following:

  • Your name, address, and GSTIN
  • Date of issue.
  • A consecutive serial number that doesn’t contain any special symbols (alphabets and numbers only) and is different for every financial year. For instance, for the financial year 2017-2018, you can use 2017NameOfCompany.
  • Description of the goods and services involved.
  • The total value of the goods and services.
  • HSN code (in case of goods) or Accounting code (in case of services)
  • Your Signature (either digital or non-digital).

Also, if the total value of the goods supplied is less than Rs. 100 then you are not required to issue a bill of supply unless the receiver insists.