Small Business – Page 2

Aadhaar Authentication to Help Businesses Get GST Registration Within 3 Days

In what is believed to be a major boost for businesses in India, the businesses that provide Aadhaar number while applying for registration under the Goods and Services Tax (GST) will get the approval in three working days. Last week, the Central Board of Indirect Taxes and Customs (CBIC) had notified Aadhaar authentication for GST registration with effect from August 21, 2020. The notification also provides that in case businesses do not provide Aadhaar number, then GST registration would be granted only after physical verification of the place of business.

Sources believe that the Aadhaar authentication is expected to facilitate genuine and honest taxpayers while at the same time keeping fake and fraudulent entities away from GST.

Two important things to know:

For a person opting for Aadhaar authentication for new GST registration would get it within just three working days, if no notice is issued and would not need to wait for physical verification.
While applicants not opting for Aadhaar authentication for GST registration would be granted it only after physical verification of the place of business or documentary verification which may take up to 21 working days or more if notice is issued, sources said.

According to a report by PTI, sources of the Finance Ministry said the GST Council in its 39th meeting held on March 14, 2020, had approved operationalisation of Aadhaar authentication for new taxpayers. However, its implementation was postponed due to the lockdown on account of COVID-19 pandemic.

Sources further said that keeping the COVID-19 pandemic in view, it has been provided that the officer may, if the circumstances warrant, opt for asking for additional documents in lieu of the pre-registration for physical verification of the premises.

5 Ideas to Rebuild Small Businesses Amid COVID-19 Pandemic

Mumbai, August 14: With the coronavirus lockdown still persistent in the country, small businesses are the most hit. While some have pulled down their shutters completely, others are looking for strategies to rebuild and reshape their businesses. Here are a few tips that can help small entrepreneurs to rebuild their businesses:

1) Financial Damage Assessment:

Every entrepreneur needs to analyse and calculate how bad their business has been affected in the COVID-19 lockdown. The first step that one entrepreneur shall take is to update the financial statements which include profit and loss or cash flow statements. Comparison with previous year’s numbers to see the loss is certainly a good idea to begin again.

2) Reshape Business Plan:

Ideas that might have worked pre-COVID-19 era, may not work after the lockdown. So it is very important to remodel the business strategy and do some fine-tuning. Paying close attention to competitors’ plan is another idea that would certainly help in reshaping the lost business.

3) Focus on Generation of Working Capital:

When an entrepreneur takes an initiative to rebuild the business, especially after COVID-19 pandemic, focussing on the generation of working capital becomes the priority. Without this essentiality, all plans to reshape a business model will turn into a failure. Look out for options for a sustainable and suitable financial lender/s who can show some faith in you (entrepreneur). But, for that, mutual understanding and trust are required, which an entrepreneur will have to build with the lender/s.

4) Revamp Budget Account:

Calculative risks during times like COVID-19 always help in revamping budget requirements for entrepreneurs who want to rebuild their businesses. All business ideas have pros and cons, however, a clear idea of what is needed for budgeting and what can be cut from the expenditure would certainly help in achieving the goal — monetary waste. Salary cut to self and only essential hiring are some of the good ideas that have been prescribed by experts.

5) Contingency Plan for the Next Crisis:

This is perhaps the last, but the most effective way to give life to business while rebuilding it. Learn from the previous mistakes and start working on the contingency plan for the next crisis. Saving the profits by cutting down useless expenditures and adapting self to the new way of business are some ways which will keep an entrepreneur in the market for a longer period. Moreover, thinking out-of-the-box to prepare for a worst-case scenario will be fruitful.