With the introduction of GST, we have witnessed a huge reform in tax collection. This system makes taxation methods easy for small and medium businesses. We have to follow certain rules and regulations introduced by the government to file for tax returns properly. The government even awards companies for doing so with scores. A GST compliance
certificate is awarded based on the scores
given.
How is it Important?
Before introducing GST, the companies used to delay the uploading of bills and tax papers intentionally to gain time for filing up the taxes. GST was introduced to
prevent time loss and it brought up a vital change as after introducing GST, delaying the uploads of tax receipts will ultimately end up troubling the business and thus the owner will have to face financial loss. Hence, everyone files the papers on time saving a lot of time.
How GST compliance is Rated?
Several factors determine a good GST Compliance rating. Some of the ways toattain good ratings are:
- Pay their taxes duly.
- File the GST returns before the given deadline.
- Follow the rules and regulations as mentioned under GST.
- Act together with the GST authorities.
What are the Compliance Categories?
There are three categories of compliance rating:
- Registration Compliance: This is just to deal with the matters while registering the entity with the government and other authorities.
- Tax Compliance: this deals with tax payment and tracking timely payments.
- Return Compliance: Deals with the tax return filing and awards those who have maintained a good record of following the GST rules.
Understanding Trade Facilitation
Trade facilitation stands for the process in which the rules and regulations for the transport of goods across the border get relieved. It helps to understand the ways to make improvements and solve the nearby future issues.
It helps improve the business with different sets of codes introduced by the government.
How the trade facilitation got affected by COVID-19
COVID-19 had left a devastating impact all around the world. It has not only impacted the social life but also the running businesses.
It created a lot of complications to calculate the income tax as not everyone was able to calculate his/her income considering the ways of implementing the lockdown. Trade during the epidemic was also impeded heavily and as a result, many ended up seeking help from the government to come out of the trouble.
How the Trade has been impacted during Covid-19?
It became really hard to keep operating the businesses after the devastating effect of the COVID-19 pandemic. If this was not enough, the tax payment came to worsen the troubles as it has to be paid on time or they would have been fined by authorities.
Considering the economic condition of
people (especially small scale businessmen) after the pandemic, there have been unavoidable delays in tax payments, paying back loans, tax returns filing etc.
