How to Enable GST in your Dry Cleaning and Laundry Business
Our country’s tax structure is going through a paradigm shift. Any change that takes place in a country like India is a huge phenomenon because of its sheer magnanimity and the underlying diversities. All of us have heard the term GST during the past few months in one way or another and many of us must’ve heard it for the first time but GST is not a new phenomenon. It was first introduced by France in 1954 and has been adopted by many countries ever since. Indian Tax Structure for businesses had many flaws to begin with and even more so for the Dry Cleaning and Laundry Industry which has hardly ever been recognized. An alternate approach, GST Law, was proposed in 2000 by the then Prime Minister Atal Bihari Vajpayee. This blog will mainly focus on how GST will affect the Laundry and Dry Cleaning Business. Being a service industry both the businesses now come under the GST law and the tax calculation is affected by the location of the service provider and that of the customer. If your business and you customer reside in the same state then the GST is divided into 2 parts i.e. SGST and CGST equally but if your customer resides in a different state than that of your business, then a single IGST will be levied upon the cost of those services. This makes it crucial for your business to record the data of all your customers and make sure that the correct tax is levied upon each individual customer's bill. It is also mandatory by law to print your GSTIN (Goods and Services Tax Identification Number) on your bill along with the detailed tax bifurcation.
How to Enable GST in your Dry Cleaning and Laundry Business
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So now the Dry Cleaning and Laundry Business owners have to make sure that they have the following: • Residence Information of their customers. • Identification of the type of GST to be levied on each customer. • Tax bifurcations clearly mentioned on the bill. • Calculation and representation of tax according to an inclusive or exclusive type of pricing. It is safe to assume that achieving all of these tasks in a manual style of working is impossible to pull off. Just collecting and storing the residence info of your customers would mean huge wastage of time and resources. Even if you have a POS software in your laundry/dry cleaning business, it has to be GST enabled to even begin printing basic invoices. You can then forget about growing your business as all your time would be wasted managing these back-end tasks. The other option is to get a GST enabled Laundry Software which can take care of all the above tasks and helps you manage your business efficiently and effectively. This will enable an easy transition for your Dry Cleaning and Laundry Business from Service Tax to GST. For more information regarding the impact of GST on your Dry Cleaning and Laundry Business feel free to Contact Us
How to Enable GST in your Dry Cleaning and Laundry Business
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