GST is a new concept in India. When it was introduced in July 2017, no one had knowledge or experience. It became a learning process for all.
One month’s training in GST is recommended for Accountants. Expert GST knowledge is a must because:
- Small mistakes can create huge cash flow errors.
- Learning on the job can take up too much time.
- Strict compliance with account keeping is required under GST
- Any entry in registers, accounts, and documents should not be erased or overwritten.
- All incorrect entries, other than those of clerical nature, have to be scored out under attestation before correct entry is recorded.
- In case registers and other documents are maintained electronically, a log of every entry edited or deleted has to be maintained.
- Each volume of books of account maintained manually by the registered person should be serially numbered.
Today, shortage of trained GST Accountants is still massive in India. A huge opportunity for self-employed GST Accountants has been created.
- Filing of GST Returns is easy because of GST’s “One Nation One Tax” model. GST Returns can be filed online. There are no State barriers.
- GST Accountants can support business locally and on a pan India basis.
- There is a possibility to expand internationally since, by 2018, Value Added Tax (VAT) will be applicable in Gulf countries creating huge outsourcing opportunity for Accountants and Commerce students in India.
- A business with 30 clients will be enough to support a self-employed Accounting Practice.
- A person with basic knowledge of IT and English language will be able to set up an Accounting Practice after attending a one month GST training session. (Employed, unemployed, housewife, retired, student or part-time work – you can do it)
- A computer with internet connection is the minimum asset required for such a self-employed business. Work can be done even from home at the person’s own time.
- No stock, fixed assets or additional staff are required.
Maintenance of proper accounts and records is compulsory since compliance verification is done through documentary checks by scrutiny of Returns, audit and/or investigation. To ensure error-free compliance, businesses, especially small traders, are expected to require the assistance of trained accountants. By opening your own Accounting Practice in your locality, you can provide your services to businesses in the area.
A correct account of the following has to be maintained. In case of more than one place of business, accounts relating to each place of business should be kept.
- Inward and outward supply of goods or services or both
- Details of tax payable, tax collected and paid, input tax, input tax credit claimed with a register of tax invoice, credit note, debit note, delivery challan issued or received
- Output tax payable and paid
- Accounts of stock in respect of goods received and supplied with particulars of opening balance, receipt, supply, goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples and balance of stock including raw materials, finished goods, scrap and wastage
- Separate account of advances received, paid and adjustments made
- Names and complete addresses of suppliers from whom taxable goods or services are received
- Names and complete addresses of persons to whom supplies are made
- Complete addresses of the premises where the goods are stored including goods stored during transit along with particulars of stock stored
- Monthly production accounts showing quantitative details of raw materials or services used in the manufacture and quantitative details of goods manufactured including waste and by-products
- Quantitative details of goods used in provision of services, details of input services utilized and services supplied
- Goods or services imported or exported
- Supplies attracting payment of tax on reverse charge with relevant documents including invoices, bills of supply, delivery challans, credit notes, debit notes, receipt vouchers, payment vouchers, refund vouchers and e-way bills
- Separate accounts for works contract showing
- Names and addresses of the persons on whose behalf the works contract is executed
- Description, value, and quantity of goods or services received for execution of works contract
- Description, value, and quantity of goods or services utilized in execution of works contract
- Details of payment received in respect of each works contract
- Names and addresses of suppliers from whom goods or services are received
- A transporter of goods should maintain records of goods transported, delivered and goods stored in transit for each branch.
- Every owner or operator of a warehouse should maintain books of accounts related to the period for which particular goods remain in the warehouse including details of dispatch, movement, receipt, and disposal of the goods. The goods should be stored in such a way that they can be identified item wise and owner wise enabling any physical verification or inspection at any time.
The Indian government is actively encouraging new start-ups and they are increasing in India due to:
- Low income at regular jobs
- High cost of living resulting in need for additional income
- Highly ambitious and skilled youth
- Lifestyle changes
For those who wish to be independent and self-employed, this is the best time and opportunity for starting an accounting practice. Such an opportunity to run your own business at your own time and pace should not be wasted.
Fresh commerce graduates can start out small with minimum investment to expand further to own and run a reputed finance & accounting services firm.
Pearl Accountants are proactively working with the object of supporting ease of doing business in India and helping start-ups easily set up business.
Please contact us for any support and guidance for GST training and self-employed GST accounting practice.
Call: +91 989 521 2229