GST has specific rules concerning record upkeep, filing returns, sending invoices, reporting purchases and sales, etc. These rules constitute part of GST compliance, which is mandatory for businesses registered under GST.  But GST compliance isn’t as straightforward. Hence, many businesses, especially smaller ones, fail to comply with GST. During the GST transition period, small businesses relaxed on GST compliance. But in came COVID and changed the entire picture. The economic damages during the pandemic compelled the government to broaden the compliance horizon. Today, compliance is as stringent for small businesses as it is for their larger counterparts, albeit with a different situation. Larger companies have the resources to manage GST compliance. But that’s not the case with the smaller players. Hence, most are failing with it. Of course, this failure has several valid reasons. So, let’s look at the three most common ones. 3 Reasons Small Companies Fail in GST Compliance About 88-90 percent of small businesses fail to comply with GST rules and regulations for various reasons. Let’s look at three of them.
  • Budgetary Limitations
Small businesses often have a tiny budget allocated to compliance. Of course, it isn’t that they don’t understand the economic repercussions of non-compliance. But they don’t have the budget GST compliance requires either! So, to allocate an adequate budget for GST compliance, almost 50 percent of companies commit the mistake of cutting down on accounting resources. Here, small businesses must remember that GST or GST compliance is specialized. Hence, they require specialists who are well-versed with all the GST laws and compliance aspects. Accordingly, companies must hire a full-time bookkeeper or outsource bookkeeping services, whichever is commercially viable.
  • Absence of Professional GST Expertise
As said earlier, GST is a tax and a specialized area of expertise. Thus, dealing with GST effectively requires taxation experts who guide the company’s accountants or handle things themselves to ensure compliance.  But again, hiring in-house taxation experts can incur an exorbitant cost, which could be beyond the small business’s budget. However, that doesn’t mean small businesses must continue struggling with GST compliance or give up on it. They can outsource GST consultancy and compliance and gain access to several experienced experts instead of that one in-house. Outsourced GST consultants have the necessary expertise, experience, tools, and technologies to ensure timely GST payments and compliance. These services can help companies stay relieved from GST hassles and focus on necessary aspects like business growth, strategy, customer service, etc.
  • Lack of Technology Infrastructure
Technology helps deal with the various intricacies involved in the Indian taxation system. It takes care of everything from essential dates to computing taxes appropriately. In addition, it can also help companies calculate the amount of taxes paid throughout the year to make finance-related decisions. But most small businesses either work on incompetent or legacy systems or do not have them. In the case of the latter, many tasks are handled manually.  One of the main reasons for the ancient approach is the reluctance to adopt the technology. But one cannot discount the lack of funds required to deploy advanced technologies either. Keep Up with GST Compliance Successfully with Paysquare! Are you a small business or a startup struggling with GST compliance? Don’t struggle. Instead, partner with Paysquare! Our support includes end-to-end GST services, including everything from GST calculation to compliance.  Working with us provides access to some of the most experienced GST and taxation experts and technologies that help you keep up with GST dynamics and keep penalties due to non-compliance at bay. Call us at +918080523161 or email us at sales@paysquare.com to learn more about our GST compliance services.

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CA. Vipul Gandhi

Associate Director

Khandhar Mehta & Shah - Chartered Accountants

‘Paysquare’ a perfect match for us as a consultant to deliver the best to our client. It extends User friendly portal for Employees and seamless processing of Payroll including statutory compliance on time! We

Parameshwer Matla

Human Resources

Columbus India

‘Paysquare’ a perfect match for us as a consultant to deliver the best to our client. It extends User friendly portal for Employees and seamless processing of Payroll including statutory compliance on The most valuable service that we get from you is "peace of mind." I know that once I submit our payroll information, everything will happen on time, payroll, pay slips, statutory reports, full and final settlement, returns and I know that we are and will be always in compliance with statutory laws regarding payroll.

Ramakrishna Dabbara

Sr. Manager – Finance

Sumtotal Systems

We would like to take this opportunity to thank you for your continual support till date! Your support especially during this pandemic has been awesome! Be it the TAT (turnaround time) you people are processing our requests, being accommodative in accepting the II, III payroll revisions, working late/ weekends, delivering the reports in time and minimal to zero errors are some of the examples of your commitment towards work & deliverables.

Abhijeet Shete

SENIOR MANAGER- HUMAN RESOURCE

Altra Industrial Motion India

We would like to take this opportunity to thank you for your continual support till date! Your support especially during this pandemic has been awesome! Be it the TAT (turnaround time) you people are processing our requests, being accommodative in accepting the II, III payroll revisions, working late/ weekends, delivering the reports in time and minimal to zero errors are some of the examples of your commitment towards work & deliverables.

Sukesh Baban Dhage

Manager Accounts

Hi Tech BioSciences India Private Limited

On behalf of Hitech Bio Sciences India Pvt. Ltd., Hi Tech Bio Laboratories, Hi Tech Analytical Works & Hi Tech Biosynth Pvt. Ltd., we appreciate your dedication to provide Payroll services to our companies from the approximately last 4 years. We acknowledge the fact that due to COVID-19, situation has become really tough across the globe. We all are forced to stay at our homes and take extra care of ourselves along with family members. It is a privilege to acknowledge you and your consultancy’s efforts and recognize the valuable service that you have provided to us. 

It is always gratifying to work with such great people with extraordinary abilities to provide good and quality service. The kind of response from your side get is fabulous and most memorable with professional culture. Specifically we would like to mention that, your approach towards the client is fantastic, for e.g. response to email is very prompt, continuous touch with client, on time response to queries or questioners’, on time and accurate report sharing. Flexibility to client requirement, Client / customer centric approach etc. Timely payment of salary gives a lot of confidence to all employees and it is due to our partners like Paysquare that Hi tech has never defaulted on its commitment of timely payment of salaries.

Ratnakar Dhakad

Senior Operation Manager

Tecknack Technologies Private Limited

We are very impressed with Paysquare team due to their ability to process payroll very efficiently. We found the implementation team very knowledgeable, supportive and very systematic.

Paysquare is a very matured payroll processing solution and they have well paid down processes to manage first time as well as every month's processing.

Monica Shah

HR Business Partner India

Victaulic Piping Products India Private Limited

Honestly , It has been an amazing experience working with Payroll team as on date . Deepika and Uma has been a strong support to us. They have always been very helpful and co-operative. I congratulate them to run payroll with zero error every month. And I expect the same level of support in future. I am happy to be associated with Payroll team.

Seagate India

Manager

I have been a client of Paysquare for 7 years and their services are fantastic. Migration from the old consultant to Paysquare was seamless. Soon after the migration, Paysquare team was up the learning curve. They never missed the deadlines provided by us. The team is always reachable, and they keep us informed about changes in taxes or government policies which impact payroll. I have complete confidence and trust in their payroll solutions, and we will always recommend them. Any company looking to ease their payroll burden with friendly service and a flexible, secure system should partner with Paysquare.