Goods and Services Tax (“GST”) is the indirect tax levied in India and subsumes different taxes such as service tax, excise duty, VAT, entry tax and customs duty, into a single tax system.
GST (Goods and services tax) is basically an Indirect tax which has been replaced by many Indirect taxes in India. It was actually passed in the Parliament on 29th March 2017 but the act came into effect on 1st July 2017 in India. GST is defined as the consumption tax where people who are engaged in the business whose annual turnover exceeds Rs. 40 lakhs is required to register as a normal taxable person. The regulations are applicable to everyone purchasing good and services at the same rate in India.
GST was introduced to reduce complexities and compliance of doing business for millions of small businesses in India. Registration of any business entity under the GST Law implies obtaining a unique number from the concerned tax authorities for the purpose of collecting tax on behalf of the government and to avail Input Tax Credit for the taxes on his inward supplies.
Why I need GST Registration?
Become more competitive
You will be more competitive in comparison to your unregistered competitors since you will carry valid tax registration.
Expand your business Online
You cannot sell products or services on e-commerce platform without GST registration.
Can take input tax credit
Only Registered GST holders can avail input of GST tax paid on their purchases and save the cost.
Can sell all over India without any restrictions.
Without having GSTIN you cannot trade inter-state.
Apply Government Tenders
Various government tenders requires GSTIN to apply tender. If you don’t have you may miss the business opportunity.
Open Current Bank Account
GST registration certificate can help you to open a current bank account.
Dealing with MNC’s
Generally, MNC’s does not comfortable to deal with small business entities until they carry valid tax registration proof.