Why do you need GST Registration?

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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