GST
registration
is obligatory for every entity involved in the buying or selling processes in
India. If the business' annual turnover crosses the threshold limit, then it
becomes mandatory for that particular person or entity to get the business
registered under the GST Act.
On 1st July 2017, in India, the GST
Act came into force that changed the lives
of many entrepreneurs. GST is one of the most revolutionary tax reforms that
took place since the independence of the country. For many, introducing GST
wasn’t a good idea, however, for many, it
was a brilliant idea. The thoughts of people varied a lot. And that was because
they lack the knowledge of GST.
Therefore, in this blog, we
are going to discuss GST, GST registration and its benefits. So, let’s start
with the introduction of GST registration.
What is GST?
GST stands for Goods and
Services Tax. It’s an indirect tax that replaces all other indirect taxes such
as VAT, excise, service, sale, custom, etc. in India. Typically, GST can be
defined as an indirect tax levied on the supply
of goods and services. Therefore, it is essential for every goods and services
supplier to obtain GST registration. But let’s first find out what GST
registration means.
Definition of GST registration
GST registration is the
process of registering any company or business under the GST Act. Under this
Act, a business gets a PAN-based15-digit registration number called GSTIN. As
per the GST Act, businesses whose annual turnover is more than the threshold
limit which is Rs. 20 lakhs (Rs. 10 lakhs for Northeast state and hilly state) are
mandatorily required to get the GST registration done.
GST registration is obligatory
for availing Input tax credit on the purchase. As per the latest amendment, new
GST registration is mandatory for every business such as e-commerce, export or
import business, online aggregator, foreign supplier, casual dealer, etc.
irrespective of their turnover in a financial year.
For a complete GST
registration process, click here.
Benefits of GST Registration
The suppliers can avail
various benefits of obtaining GST
registration.
Especially small businesses and start-ups, irrespective of their turnover, can
benefit their business in many ways. The advantages of registering with GST are
as follows:
·
Recognized
as a legal supplier
Once you have registered your
business under GST, you receive the recognition of legal supplier of goods and
services.
·
Provide
an input tax credit to customers
Because you have registered
your business with GST, now you're legally recognized and can issue taxable
invoices. In turn, customers can receive input credit on their purchases. This,
in turn, will help businesses to expand their customer base and make it more
competitive.
·
Compliant
and better ratings
GST registration ensures that
the business is compliant and scalable without any hindrance in future
registration. Additionally, compliance rating is maintained under GST, and if
it's done properly, it can attract additional business.
·
Lets
businesses take a better stand
Again, registering under GST,
your business gets recognition, and due to the same, you can easily apply for
bank loans, rent premises, etc.
·
GST
improves ease of doing business in India
It is one of the biggest
benefits that GST registration offers. For those who want to start a business
in India can, now, easily establish by registering itself under the GST Act.
There are a few compliances in GST and many tax exemptions for start-ups in
India with certain conditions.
Final words
Apart from the above-described
benefits, other benefits of registering your business under GST include the
elimination of double taxation, making inter-state sales without much
restrictions, etc.
If you have any concern
regarding the registration process or if you're looking for the best consultant
for GST registration, then contact Enterslice. We will get your business
registered with GST in the least possible time.
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