How does a small business owner handle state taxes?
Curious about Small-Business Taxes
In India, small business owners need to pay state taxes in the form of state Goods and Services Tax (GST). The GST is a comprehensive, multistage, destinationbased tax that is levied on every value addition of goods and services. The GST is divided into two components the Central GST (CGST) and the State GST (SGST). Small businesses need to register for GST if their turnover exceeds a certain threshold (currently INR 40 lakhs for most businesses, and INR 20 lakhs for businesses in certain special category states).
The state taxes that small business owners need to pay may also vary depending on the state they are located in. For example, some states levy a professional tax on certain professions or trades. Small business owners may also need to pay property tax, which is levied by local municipal bodies on the value of the property owned by the business. It's important for small business owners to understand and comply with all relevant state taxes to avoid any penalties or legal issues.