GST Registration & Filling

Registering for GST is mandatory for businesses with a turnover exceeding a threshold of Rs. 40 lakh, Rs. 20 lakh, and Rs. 10 lakh. Registration helps categorize each business as a regular taxable entity according to the GST framework.

However, registration is compulsory for some businesses. These include any entities or individuals who were previously registered under earlier laws (for example, Service Tax, VAT, or Excise). Running a business without registering it for GST as expected is a legal infringement that will attract severe penalties.

Who Should Register for GST?

Registration for GST is a requirement for:

• Businesses with a turnover threshold that varies from Rs. 40 lakhs ( Rs. 10 lakhs for Northeastern India special category states) and RS. 20 lakhs for suppliers within the state
• Specific entities, such as those dealing with inter-state supply, non-resident taxable persons, e-commerce operators, and others under reverse charge
• Special cases such as casual taxable agents, persons, e-commerce operators, input service distributors, and non-resident taxable persons

However, there are facilities for businesses below the threshold to register for GST voluntarily. Voluntary registration provides several benefits, including business expansion and tax credits.

What are the Benefits of GST Registration Online?

Registration provides Indian taxpayers with several benefits thanks to the GST Act passed by the government.

A Drastic Tax Reduction

The introduction of GST means that all the other taxes were drastically reduced. Based on “One Nation, One Tax,” GST makes it easier to bring all taxpayers to the Government. The previous tax collection system made this difficult due to its complexity.

No More Tax Snowball Effect

All the previous, yet related taxes, are now bundled into CGST or SGST.

Taxes that were previously under the Central Government and are now under the GST are:

• Service Tax
• Special Additional Duty of Customs (SAD)
• Central Excise Duty
• Additional Customs Duty (CVD)
• Surcharges and cesses

The taxes that were under the state Government and included in GST include:

• Central Sales Tax
• Purchase Tax
• Taxes on gambling, betting, and lottery
• Entertainment Tax
• Value Added Tax
• Octroi and Entry Tax
• Luxury Tax
• Surcharges and cesses

Adopting these taxes into one entity helps prevent the negative tax snowball effect, making it cheaper for taxpayers.

Increased Logistics Efficiency

The previous numerous tax rules increased the time it took to transport items from one state to the next because of multiple checks. A major benefit of GST is transportation of goods across states is easier due to the reduced number of checks transporters have to go through.

Lower Minimum Threshold

One of the things GST does is raise the minimum revenue requirement for small businesses registering. The threshold helps minimize the effect of conformity pressure that small business owners feel.

So, if your business has an annual revenue below Rs. 20 lakh, you are not required to apply for GST registration. However, the minimum amount for states of the North Eastern is Rs. 10 lakhs.

Support for Multiple Business Sectors

Support from GST is significantly boosting many sub-sectors in the Indian economy landscape. It is especially advantageous depending on what niche you are active in. Overall, GST is excellent for the Indian budget despite the relatively lower registration costs.

If your business achieves Rs. 75 lakh in annual sales, you can benefit from a flat tax rate of 1% to 5%. However, only qualifying small and medium businesses may enroll in the plan.

What Are the Advantages of Having a GST Certificate?

The GST Certificate is an authoritative Indian government document that certifies your business is registered within the GST framework. It prominently displays a unique GST identification number, your business name, and an official address.

Getting a GST Certificate allows your business to impose and collect GST from clients. It also offers many other benefits, including:

• Claim tax credit – You can legally claim credits on GST disbursed through operational and procurement costs
• Loan applications – Many financial institutions now require businesses to present a GST Certificate while applying for loans
• Government tenders – The government expects all businesses bidding for tenders to have a GST Certificate as proof of tax compliance
• Market reputation – The GST Certificate solidifies your business’ stature in the market by reflecting your commitment to adhere to tax regulations.

Process Your GST Registration Online Quickly With TaxProClarity

At TaxProClarity, we provide customized GST Registration services based on your unique requirements. Let our team of experts guide you through submitting your business documents and details. Our dedicated GST team is also ready to help you navigate and understand the intricacies and applicability of the GST Act.

Complete the registration process to access your GST certificate with the best tax and finance consultants!