In order to stay compliant with the newly implemented GST, you can make use of technology if you are a composite dealer. Composite dealers are not allowed to claim Credit Input Tax on the purchases and technology can help them a lot if staying GST compliant.

Simple Setup of the Tax Rates

Under a composition scheme, the applicable flat tax rate for a dealer or a manufacturer is 1%. To configure all these taxes easily and with just one click, you will need to take the help of technology. It can help you to get all your tax liability numbers in a single click after the ending of every quarter.

Also, there are often changes that are made to the tax rates which are announced by the council of GST from time to time. Using technology can help you to keep track of these changes in tax rates, and also maintains a record of the tax rates. Thus your liabilities get calculated with more accurately.

Segregation of Taxable, Exempt and Nil Turnovers

According to the GST laws that have been implemented the calculation of the composite dealer’s liability tax is made based on a tax percentage over the taxable turnover at a rate that is pre-defined. This taxable turnover, however, is only applicable to the supplies of goods that are taxable, and goods can also be categorized into three categories, namely: taxable, exempt or nil.

With the help of technology, you can leave the categorizing of goods to the business software and focus on other important things instead. Another thing that technology can also help you with is the segregation of taxable earnings and therefore makes sure that you are paying the correct amount of the tax.

As a composite trader, you cannot claim Credit Input Tax on the goods you purchase, but you are required to pay the taxes on the goods that you purchase from usual dealers and unregistered parties. In the first case, you will have to pay SGST and CGST if the purchase is local.

And if the purchase that you make is from the other states, you will have to pay GST on them. Since these taxes cannot be filed under Credit Input Tax, they are to be counted as the cost of the goods. Thus you can be sure of how much tax you are paying. Having technology do that for you makes it a lot easier.

‌