Benefits Of GST Registration In India For Business

GST is one of the biggest tax reforms in India. By abolishing multiple taxes into a single system, the ease of doing business in India improved tremendously. Under the GST regime, all entities involved in buying or selling goods or providing any sort of services or both are required to register under GST. Further, the provision of GST registration is mandatory once an entity crosses a minimum prescribed turnover.

What is GST Registration?

GST Registration is a process by which a taxpayer gets registered under Goods and Service Tax. Once a business is successfully registered, the Goods and Service Tax Identification Number (GSTIN) is provided. The 15 digit GSTIN makes everything simpler from availing of loans to paying taxes.  

 

Let us now look at the benefits of GST registration in India:

1. Eliminates the cascading effect of tax

GST is a comprehensive indirect tax that was designed to put indirect taxes under one roof. More importantly, it will help eliminate the chained effects of cascading and double taxation. In simple terms, the cascading effect can be described as tax on tax. It means that the product is taxed at every step of the sale. 

2. Easy and simple online procedure

The process of GST registration in India is made online and is super simple. Business owners can now fill a form on the GST portal and click on the submit button for registration along with the necessary documents. This has proved beneficial especially for startups and small businesses alike, as they do not have to worry about getting different registrations such as excise and service tax. 

3. Number of compliances is lesser

Earlier, VAT and service tax had their own returns and compliances. Besides, the cascading tax effect, VAT rates and laws were imposed differently in different states. GST, however, brings the entire nation under a unified tax structure. It has truly revolutionized the Indian taxation system. 

4. Well defined treatment for e-commerce operators

Earlier to the GST regime, delivery of goods via the e-commerce operators was not defined. They were subjected to variable VAT laws. However, under GST all the confusing compliances have been removed. GST clearly defines the provisions applicable to the e-commerce sector. 

5. Increased cost efficiency in logistic sector

The logistics industry in India prior to the implementation of GST had to maintain multiple warehouses across states with a view to avoid the CST and state entry taxes. However, with GST coming into force, the restrictions on inter state movement of goods have been lessened. By reducing unnecessary logistics, that is, driving consolidation of warehouses and reducing transit time, GST has increased cost efficiency. 

6. Integration of unorganized sector

Industries like construction and textile were highly unorganized in the pre GST era. However, under GST, there are provisions for online payments and compliances that have brought accountability to these industries. 

There is no doubt that GST was introduced for the betterment of the economy. A lot of careful planning went behind the imposition of one uniform indirect tax all over the country that would lead to a seamless financial solution. If you are wondering whether registering under GST is mandatory or not, let us tell you it is required to obtain GST registration once your turnover exceeds the specified set limit. Further, if the business operators are from more than one state, you need to apply for separate GST registrations for each state. 

RBG Consultants - Best GST registration service provider in India

RBG Consultants GST experts can guide you on the compliances under GST registration in India for your business. They will appoint a professional CA who will help you with the complete online application process, document submission and application tracking. Thus, if you are looking for professional help to get your business registered under GST, look no further than them. Contact the team today!