Daily Archives: October 9, 2022

What are the benefits of GST registration?

Benifits of GST Registration

Without registration, a person can neither collect tax from his customers nor claim any input tax credit of tax paid by him. Registration will confer the following advantages to a taxpayer: He is legally recognized as supplier of goods or services.

There are many benefits of GST registration, which include:

1. Stronger Than Competitors – GST registration provides a valid business registration so you can easily show proof of legitimacy to other businesses and individuals.
2. Get Input Tax Credit – GST registered holders can use Input Tax Credit while purchasing goods or services. So, if you are a B2B business, you need to register for GST from the very beginning.
3. Sell Anywhere in India – GST registered holders can sell their products or services anywhere in India. Hence, there is no limit like VAT/CST. You can easily send goods interstate.
4. Open a Checking Account – GSTIN holders can easily open a checking account on the basis of their GST Registration Certificate.
5. Online selling – If you want to go e-commerce, you can easily sell through e-commerce portals like Amazon and Flipkart based on your GSTIN registration number.
6. Government Project Tenders – If you are a contractor and want to apply for any type of government tender, all government projects require only a valid company with GST number.
7. Accept large projects from MNCs – MNCs will not do this unless they are legitimate businesses with valid proof of business.
8. Build Confidence Among Customers – Issuing a valid GSTIN tax invoice will build trust among customers and enhance brand value.

What is GST Registration?

Any individual and businesses with a turnover of more than Rs 20 lakhs or Interstate supply for Goods & Services (as the case may be) are required to register as taxpayer for the Goods and Services Tax (GST). This is called GST registration.

Some businesses are required to register under GST. If an organization operates without being registered for GST, it will be a violation of GST and will face severe penalties.

GST registration usually takes 5-7 working days. Team GST PROFITS helps you to get your GST registration fast in 3 easy steps.

Types of GST registration

• Normal taxpayers

Most businesses in India fall under this category.

Businesses whose turnover exceeds Rs 40 lakh in a financial year are required to register as normal taxable people. However, the threshold limit is Rs 10 lakh if you have a business in the north-eastern states, J&K, Himachal Pradesh, and Uttarakhand.

• Casual taxable individual

Occasional or seasonal businesses need to register their businesses under GST for this category. Businesses need to make a deposit equal to the GST liability from the occasional operations.

The tenure for registration is 3 months. However, businesses can apply for renewal and extensions.

• Non-resident taxable individual

Individuals who reside outside India but occasionally supply goods or services as agents, principals, or in other capacities to Indian residents are liable to file for registration under this category.

The business owner must pay a deposit equal to the expected GST liability during the GST active tenure. The normal tenure is 3 months. However, individuals can extend or renew the registration if required.

• Composition registration

Businesses with an annual turnover of up to Rs 1 crore are eligible for registration under composition scheme. Under this scheme, businesses have to pay a fixed amount of GST irrespective of their actual turnover.