In the world of business, there is a lot to be
learned.
Given its vast nature, it is something that
one can’t really figure out at a single step.
The above holds true for just about everything
that one engages in, from the actual startup process to the hiring of
employees, the taxation regimes and so on.
One of the most confusing things among them
all happens to be that of the taxation process, or more specifically, the
paperwork involved.
This is very much true for taxation as much as
for anything else. When it comes to the issue of GST, it can be said that the
filing process is about as complicated as for anything else.
In an effort to simplify this process of
filing GST returns for a specific GST number, in Delhi or otherwise, the
government is mulling on the creation of an invoice service.
This is something that has been considered a great step in making the process more efficient for both businesses as well as
tax authorities.
It may sound like a rather complex thing, but
is in fact very easy to understand.
To start off, one needs to understand the
concept of an invoice.
Whenever a business entity engages in the sale
of goods or services, a bill is issued that has details of the business, sales, the amount charged, etc.
For the most part, this was done the old
fashioned way, using pen and paper. All of these invoices would then be
recorded for further calculations, for purposes ranging from business planning
to the filing and payment of taxes.
The eInvoice service of GST, whether for GST
registration in Delhi or elsewhere sought to create a centralized electronic
invoice service, in which all existing transactions would be transmitted using
an official electronic channel.
A good example that one can compare this
system to, would be that of a telephone or mobile bill, sent to the end-user
via email as opposed to physical mail. An invoice is somewhat similar.
Also to note here is that the government has
implemented similar systems in the past, such as that of electricity bills,
which were made available online to consumers, as opposed to sending them a
physical bill at the end of the month.
There are several advantages to the eInvoice system,
the most important of which are mentioned in the list below.
1. Filing
Tax Returns
The biggest
advantage of an invoice service is that it helps to speed up and
simplify the process of tax filing for a given gst number, in delhi
as well as any other state.
With every single transaction available on the
GST invoice system, all that a business has to do is get the total amount of
taxes to be paid, and finish the job.
There is no need for one to spend a great deal
of time, calculating the exact amount of taxes to be paid and so on, in order
to get the job done.
This is something very important to remember,
if one were to apply for a GST, in Delhi or anywhere else.
2.
Claiming Tax Credits & Benefits
The existing tax regime allows for several
programs that promote business growth and development.
One of the criterions when it comes to
claiming these tax credits and benefits is that of paperwork. This is a good
point to remember, if one were to register for GST, in Delhi or any other state
for that matter.
Given that all the necessary paperwork is
already present with the government, it will allow for any existing tax credits
and benefits to be claimed with relative ease. You can get more details about
these tax credits and benefits, by checking up with a suitable GST consultant
in Delhi or whichever state you reside in.
3. Curbing
Tax Evasion
The third advantage of the eInvoice service,
is that of curbing tax evasion for any given GST no, in Delhi or otherwise.
Since all transactions under GST registrations
are updated in real-time, there is a smaller margin by which tax evasion could
take place.
This could help in curbing the lack of law
enforcement and corruption were inherent in many parts of Indian society.
