The Goods and Services Tax (GST) launched on 1st of July, 2017, is applied to all Indian service providers. GST will be levied on all the levels of supply chain including purchase of raw material, manufacturing, sales to wholesaler and then to retailer and then to the final customer. By replacing all the indirect taxes like VAT, excise duty, service tax, etc., GST brought uniformity in the indirect tax structure and incorporated the concept of ‘One Nation One Tax’.
All the business organizations let it be small, medium or large should apply for GST registration. as a normal taxable person. By registering under GST, businesses enjoy many benefits under various schemes laid down by the Central and the State Governments.
Who can register?
- Individuals registered under the Pre-GST law
- Businessman
- Casual taxable person
- Non-Resident taxable person
- Input service distributor and Agents of a supplier
- Those taxed under the reverse charge mechanism
- Supplier via ecommerce aggregator
- Person supplying online information and database access or retrieval services from outside India to a person in India, other than a registered taxable person
Benefits of registering under GST:
- To normal registered businesses
- Take input tax credit
- Make interstate sales without restrictions
- For composition dealers
- Limited compliance
- Less tax liability
- High working capital
- For businesses that voluntarily opt-in GST registration
- Take input tax credit
- Make interstate sales without restrictions
- Register on ecommerce websites
- Have a competitive advantage compared to other businesses
Process to register:
- One of the GST representatives will collect all the documents and process the GST application
- After submitting all the documents, the application will be processed and filed
- ARN; Application Reference Number will be issued
- GST registration certificate and GSTIN i.e. unique identification number given to each GST tax-payer will be issued upon the verification of GST application and documents by the GST officer. It will be issued online and can be downloaded from the GST portal
