Our intent of
writing this blog is to educate you about the GST registration processing time.
While establishing a new business, many will suggest you not to obtain GST
registration since it's not mandatory for the companies generating turnover
under the threshold limit. But let us tell you that acquiring company registration
isn't sufficient. GST has several benefits to offer to the start-ups and
entrepreneurs. Hence, we recommend you to get your business registered with
GST.
In this blog, we
have tried to clear most of your doubts regarding GST (Goods and Services Tax)
registration. The topics covered are as follows:
·
What is GST?
·
Reasons to obtain GST
registration in India
·
Who are all required to register
their business under GST law?
·
GST registration processing time
What is GST?
GST is an
indirect tax levied on the suppliers of goods and services by the government of
India. GST cancels all the indirect taxes such as VAT, sales, excise, retailer
tax, etc. The Act came into force in India, on 1st July 2017. Goods and Service
Tax law in India, levies on every value addition.
For instance, a manufacturer of chocolates buys milk,
sugar, cocoa powder, etc. mixes them and bakes into chocolates. After being
prepared as chocolates, the input value of the product increases.
The chocolates are further packed and labelled by the
warehousing agents. Here's another value addition after which the warehouse
sells them to retailers.
The retailers then package the chocolates into small
quantities and invest them in the market of chocolates thus increasing its
value.
Reasons to obtain
GST registration in India
There are a
plethora of reasons for acquiring GST registration for your
business. We have enlisted a few of them below:
·
Removes the cascading tax
effect
GST removes the
cascading tax effect on the sales of goods and services. It will directly
impact the cost of goods. As a result, the cost of goods goes down.
·
Lesser compliances
Unlike other
forms of registrations, GST registration has got quite a fewer compliances to
follow. Plus, they are made pretty easy.
·
All activities related to
GST are entirely online
GST related
activities such as registration, filing returns, application for refund, and
response to notices, everything is online.
·
Registration threshold is
set very high
The threshold
limit for GST registration is set quite high which is Rs. 20 lakhs (Rs. 10
lakhs in North-Eastern states and Hilly states). Small-scale businesses are exempted from the
tax.
·
Legal recognition
The supplier of
goods and services with GST registration receives legal recognition, and hence,
they don't face any legal complications later.
Apart from
above-described advantages, there are several other reasons for registering
your business under GST law such as composition scheme for small businesses,
regulating the unorganized sector, defined treatment for e-commerce, etc.
Who are all required to register their
business under GST law?
Following are
the people who are supposed to obtain GST registration of their business:
·
Existing taxpayers registered under any
of the VAT, CST, Excise/Service tax regimes;
·
A Casual taxable person who is an Indian taxpayer planning to
undertake business for a limited time in any particular area;
·
New taxpayers whose annual turnover is
above Rs. 20 lakhs and Rs. 10 lakhs, depending on the states they reside in;
·
A Non-Resident taxable person who is a foreign entity;
·
Online aggregator such as Food Panda,
Amazon, Flipkart, etc.;
·
Other taxable people who fall under the
reverse charge mechanism.
GST registration processing time
If all your
documents are true and valid, then the GST registration processing time will
take only 3-5 working days if you choose Enterslice. We are known to provide
GST registration in the least possible time. Within 3-5 working days, we will
offer you the GSTIN number of your business.
Source url - https://enterslice-32.webself.net/blog/2018/12/22/what-is-gst-registration-processing-time