GST registration is becoming one of the most critical corporate requirements. According to the new GST legislation, businesses with a turnover of more than Rs 20 lakhs (10 lakhs in the North East and hill states) must register for GST as a normal taxable person. Apart from the various turnover brackets, there are other circumstances in which people or businesses engaged in the provision of goods or services across the state must obtain a new GST registration online. It is a legal necessity for businesses that cannot be ignored. Because it is a violation under the GST Act, failure to comply with this regulation can result in severe penalties and fines. Penalties of this nature might be disastrous to a company. As a result, every businessman who wishes to avoid fines and penalties must register for GST. The process of obtaining this registration is entirely online, but that does not imply that it is simple. As a result, specialist guidance is always recommended.
What is GST?
The Goods and Services Tax (GST) was adopted in India with the purpose of removing several indirect taxes such as excise duty tax, service tax, and purchase tax. It established a single taxation system for India as a nation. GST will be applied to both goods and services, as part of a dual GST system that divides the federal and state governments’ responsibilities. The Union Finance Minister will chair the GST Council, which will comprise representatives from several state finance departments. GST also simplifies the collecting procedure and makes it more efficient. Before GST, the central and state governments had multiple types of taxes, but now there is only one tax, GST, that applies to the entire country.
Modes of GST in India-
In India, there are four GST modes that establish distinct levels of GST. They are divided into four categories: national, state, integrated, and union territories. All of them are described in full below.
GST on a nationwide scale (Central GST)
The CGST is a tax levied by the federal government on intra-state deliveries of goods and services. When the seller and buyer are both in the same state, an intra-state supply of goods or services occurs.
The state levies a GST (State GST)
The SGST is a tax charged by the state government on products and services delivered within the state.
GST that is combined (Integrated GST)
The IGST Act administers Integrated GST, which compels retailers to collect IGST from customers and split the money between the federal and state governments.
In the Union Territories, the GST (Union Territory GST)
Union Territory GST refers to when products and services are used in India’s Union Territories (UTs) and revenue is collected by the union territory’s government.
What is the GST Registration Process?
GST registration is the process of registering a taxpayer under the Goods and Services Act. It is an online process that must be completed through the GST Portal of the government. The taxpayer will receive a registration number after completing the registration process, which he will use to pay GST Tax.
GST Registration’s Advantages-
There are numerous advantages to the above-mentioned registration, some of which are outlined below.
Taxation services have been simplified:
GST has consolidated a number of indirect taxes into a single bill, allowing the Indian market to become more interconnected.
The cost of goods and services is decreasing:
With the implementation of GST, the cascade effect of a variety of VATs and taxes was eliminated, resulting in a reduction in the cost of products and services.
Allows you to skip time-consuming tax preparation:
By registering for GST, small businesses can avoid long tax services. GST is not required for service providers with a turnover of less than 20 lakhs and product providers with a turnover of less than 40 lakhs.
Designed to reduce sales without receipts and fraud:
The GST was implemented to combat corruption and sales without receipts. It also makes dealing with numerous indirect taxes easier for small firms.
Uniformity in Taxation Procedures:
GST registration standardized tax procedures and allows for centralized registration. This makes it easier for businesses to complete quarterly tax filings online.
Tax evasion is kept to a minimum:
With the advent of the GST, tax avoidance has decreased significantly.
Simple and Straightforward Online Procedure
The entire GST process (from registration to return submission) is handled online and is very simple. This has mostly benefited new businesses, as they no longer have to run from pillar to post to secure numerous registrations such as VAT, excise, and service tax.
The Number of People Who Comply Is Decreasing
VAT and service tax existed previously, each with its own set of forms and procedures. However, when it comes to GST, there is simply one consolidated return to file.