Do you run a business and are unsure whether you need to register for GST? This blog post will offer insight into the significance of GST registration and explain why it has evolved into a crucial need for all businesses, large and small.
Key Points
- In several countries, the majority of products and services sold for domestic use are subject to the goods and services tax (GST).
- Usually, the companies who provide the goods or services collect it from customers and later pay it to the government.
- The Goods and Services Tax, also known as GST, is an indirect tax imposed on the production and distribution of goods and services.
- When the GST was originally implemented in India on July 1, 2017, it replaced a variety of indirect taxes, including the Value Added Tax (VAT), excise tax, and service tax.
What documents are required to get registered for GST?
Business wanting to register for GST need to submit the following documents to a GST registration service:
- Email id
- Aadhar card with KYC documents (driving licence, Passport, Voters identity card)
- Valid Mobile Number
- Photograph in JPEG format (maximum size <100 KB)
- Address proof of the Business (Rent Agreement with NOC or Property Sale Deed if self-owned with Utility bill)
- Pan Card of the Applicant
- 3 months Bank Account Statement or Cancelled Cheque or bank passbook
- Partnership Deed (in case of Partnership Firm)
- Proof of Business registration
- Digital Signature (optional)
Who is qualified for GST registration?
GST registration is required for businesses that are:
- manufacturer goods provider – with a turnover of more than Rs 40 lakh
- service firms with a turnover of more than Rs 20 lakh
- E – commerce business
- For business operating in the states of north-east India are an exception, where the total turnover amount must be at least Rs 10 lakh.
What are the benefits of GST registration?
Business can enjoy the following benefits while having their business registered under GST:
- Helps getting more customers
- Enhances Corporate Credibility
- Guarantees Compliance
- Business Expansion
– Helps getting more customers:
Another advantage of registering for GST is having access to more customers. Since many businesses and governmental bodies are required to only do business with registered suppliers, being registered for GST might open up new chances with these clients. Additionally, some customers might prefer working with registered businesses since they can provide a better level of comfort that they are conducting business properly and in accordance with tax laws. This could help a business increase both revenue and customers.
– Enhances Corporate Credibility:
As a registered business, you may charge GST to customers if your company is registered under GST. If you have GST registration, other companies are more likely to take you seriously, which might help your credibility. This will result in more collaborations and opportunities that arise.
– Guarantees Compliance
You must submit quarterly, monthly, or yearly returns if you register for GST. By doing this, you may be sure that you are abiding by the nation’s tax regulations. It’s crucial to ensure that you are registered because non-compliance might result in severe consequences.
– Business Expansion
In order to grow your business, you must register for GST (goods and services tax). It is important to register for GST in order to conduct business with other Indian states. Additionally, companies that have registered for GST are eligible to apply for a number of government initiatives that support the expansion of MSMEs, startups, as well as other types of companies.
Final thoughts
In conclusion, it is crucial for companies of all sizes to embrace the transition of GST registration as the globe moves toward digitization. Businesses can streamline their tax structures, expand their market reach, boost their credibility, optimise financial gains through input tax credits, and take advantage of collaboration opportunities by registering under the GST. Therefore, if you haven’t already, consider registering for GST with us and benefit from these advantages right away.
Frequently Asked Questions (FAQs)
1. What are the types of GST in India?
The different types of GST used in India are the SGST(State Goods and Services Tax), CGST(Central Goods and Services Tax), IGST(Integrated Goods and Services Tax), and UTGST(Union Territory Goods and Services Tax).
2. What is a GSTIN number?
Goods and Services Tax Identification Number, also called GSTIN, is a unique 15-digit identification number given to each taxpayer, especially a dealer, vendor, or other business entity registered under the GST regime.
3. Can I have the same GSTIN number for more than 1 business?
In accordance with Rule 11 of the CGST Rules, you are permitted to register for more than one GST in the same State if you operate out of more than one location. However, this is not compulsory.
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