GST Registration

GST Registration Online

Goods and Services Tax (GST) is an indirect tax levied on certain products used for consumption in India. It came into effect on July 1, 2017, and has made the taxation process easier for businesses. In this article, we'll look at how you can get your business registered with GST in India.

Who can be taxed under GST?

 Any individual, such as a person, company, LLP, HUF, any government company, or any company registered under foreign law, co-operative society, etc., who carries out economic activity in India, such as trade, and is registered under the GST Act, is liable to pay tax under GST.

Advantages of GST Registration

GST has reduced the burden of multiple taxes by implementing one indirect taxation. It has also extended the threshold limit for small businesses up to Rs. 20 lakhs. Before GST, the service tax payable was exempted up to Rs. 10 lakhs for small trades, and VAT was only applicable to those with a turnover of more than Rs. 5 lakhs.

Moreover, GST has introduced a composition scheme, which is beneficial for small businesses as they are exempted from paying taxes from Rs. 20 lakhs to Rs. 75 lakhs. The taxation process is now more straightforward, saving time for the company. The compliance and GST Return Filing process is also simplified, with only 11 returns, out of which 4 are basic returns.

GST has reduced the complications for e-commerce firms like Amazon, Flipkart, etc., which previously had lengthy procedures for the transportation of goods. GST is applicable across India, which has now been eased. This helped to reduce transaction costs from one state to another, which improves competition in trade and commerce.

As central and state taxes are now one, set-off in input goods reduces the cost of local products and services, encouraging Indian business.

Disadvantages of GST Registration

However, there are also disadvantages to GST registration. For example, it increases the cost of purchasing software, as companies must either upgrade their existing software or buy a new one, which can be costly. Non-compliance with GST will lead to penalties, and businesses will need to hire a trained GST compliance filer or train existing employees, which will be an additional cost for small-scale businesses. Even though small-scale businesses can choose a composition scheme to reduce their tax burden, they won't be eligible to claim any input tax credit.