Indian Startups Community

by Matilda Carmden

Stealth

9 months ago

GST is such a shit show

Today I sat with a small biz owner to figure out why he wasn't earning enough from his business. Turns out he wasn't accounting for GST twice (you need to do that if you are buying and selling forward as a trader). Calculating GST amount itself on total invoice value is a nightmare when you account for other things like figuring out HSN-wise tax rates and logistics. And then splitting into two for state and central tax. And he's still educated but weak at math and accounts. I can only imagine how much the average business owner struggles with their own accounting. Heartbreaking stuff.

Jordon Carmden

Others

9 months ago

Ok. But why is GST a shit show ?

Jordon Olive

Stealth

9 months ago

There should be a flat GST rate like other countries, for starters. That alone will reduce like 60% of problems and fast track liquidity.

Kendall Carmden

Others

9 months ago

Flat GST is a different debatable topic , even if done. the small biz owner who u r referring to will continue to do the same thing . It is about educating self before doing business , GST could have its own flaws , this cannot be the reason to call it a shit show BTW small businesses can exempt form GST provided below some threshold

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Jordon Dean

Stealth

9 months ago

Hire a CA to do all the GST. I know its an additional expense but much needed. As a small business owner, you don't need to put time paying penalties.

Kalan Lee

Stealth

9 months ago

Bro, hiring a CA is what most people do and what the problem is. If business owners don't understand how taxation works then they end up working for break even or even losses especially when their margin is thin.

Coy Carmden

Stealth

9 months ago

I get your point & you are right. I am not saying you don't need to understand it. That you anyways have to learn it but day to day hassle need to be left with experts so that as a business owner you can focus on your core work. Hire a part time accounts person which is also a great option.

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Blair Hyrum

TCS

9 months ago

Ain't there sw to solve such problems? Like khatabook and cleartax etc

Aaron Taye

Stealth

9 months ago

They are okay for generalised stuff but not very customisable to your needs from what I know

Matilda Carmden

Stealth

9 months ago

Even if we customise these people will not pay a penny. They will be ready to suffer than use a software. They fear all their cash becoming white and reduced profits.

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Jordon Taye

Plivo

9 months ago

Our direct tax paying population % is a shit show

Isaiah Lee

Stealth

9 months ago

Most people still pay GST in some form or another even if no other direct tax

Coy Carmden

Plivo

9 months ago

Ya that’s why I said direct tax paying. These indirect taxes we all pay.

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Dezi Carmden

Stealth

9 months ago

GST is one bit, imagine all the tax payers with no taxation knowledge. And system doesn't even help a bit

Kendall Everett

Stealth

9 months ago

System not helping is one of the major factors yes

Karilyn Everett

Zomato

9 months ago

When you get sick you can take medicines yourself. But it's better to consult a doctor. Same with taxes. Practicing CAs have a license. You can't become one via apprenticeship/bootcamp/college education. While taxes and death are the only two certain things in life, it's an expense that you need to account for.