GST Registration: Types of GST Registration and their Benefits

GST Registration: Types of GST Registration and their Benefits

As we all know that whether you are a small business owner or a large business, or a medium business owner, you have to pay GST for that business. There are many companies that are GST registration services Providers, and it is very advisable that you should contact them before filing GST for your business. However, before contacting the GST registration services Providersyou should know the basics of GST registration, such as what is GST, what are the types of GST, what are the benefits of GST, and much more.  In this article we discuss from what is GST Registration to types of GST Registration and how to apply for it in india.

So without getting involved in other things, let us directly jump into the topic

Also Read: 7 Benefits of Machinery Loan You Should Know for Your Business.

What is GST?

GST is nothing but a tax that is incurred on the consumption of goods and services. The GST is applicable to all stages right from the production to the delivery of the product. GST will subscribe to Central Excise Law, Service Tax Law, VAT, Entry Tax, Octroi, etc.

Without GST registration, a person can neither collect tax from his customers nor claim any input tax credit of the tax paid by him.

How to do GST Registration Online

The following are the steps which will help you for Online GST Registration and also will help you to complete online document submission & application tracking

  • Filing of Application for GST Registration
  • Secure GST Identification Number
  • Dedicated manager helps in to process your GST registration
  • Altogether Online – No need to visit the office
  • Chartered Accountant Assisted GST Filing for all your GST needs

Now we have seen what GST and the Online GST Registration are. So now, we will see what the types of GST Registration are.

Types of GST Registration

1) Compulsory Registration

Under specific circumstances, the merchant needs to take Compulsory Registration under GST irrespective of the turnover. For e.g., inter-state sales of taxable goods, e-commerce operators, e-commerce sellers, etc. 

2) Voluntary Registration

A business that is not required to apply for compulsory registration can apply for registration on a voluntary basis. This is called voluntary registration under GST.

3) Registration under Composition Scheme

If the total turnover surpasses the recommended edge cutoff of Rs.40 lacs (Rs.20 lacs for great class states) for merchandise or Rs.20 lacs (Rs.10 lacs for uncommon classification states) yet is under Rs.1.5 Cr (Rs.75 lacs for exceptional classification expresses), the seller can enroll under Composition Scheme. If administrations should arise, if the total turnover surpasses Rs.20 lacs (Rs.10 lacs for individual classification states), it is under Rs.50 lacs, the seller can enroll under the Composition Scheme. Under this plan, the citizen should pay GST at a fixed rate on turnover, and the consistency is lesser than in the event of typical enrollment.

4) No GST Registration

The following are the persons who are not needed to register for the GST scheme.

  • The business for which aggregate turnover during the financial year does not exceed Rs.40 lacs for goods (Rs.20 lacs for individual category states) or Rs.20 lacs for services (Rs.10 lacs for individual category states).
  • The business that does not fall under the provisions of compulsory registration.
  • Persons selling goods or services that are exempt under GST or not covered under GST.
  • Agriculturists for the supply of crops produced from the cultivation of land.

Benefits of GST Registration

The following are the advantages of GST Registration. So let us see what they are.

For Traders :

  • Reduction in multiplicity of taxes. 
  • Mitigation of cascading / double taxation.
  • Development of a common national market.
  • Simpler tax regime.
  • Fewer rates and exemptions.
  • The distinction between Goods & Services is no longer required.

For Consumers :

  • Simpler Tax system.
  • Reduction in prices of goods & services due to the elimination of cascading.
  •  Uniform prices throughout the country.
  •  Transparency in the taxation system.
  •  Increase in employment opportunities.

Other Benefits :

  • Create a unified common national market for India, boosting foreign investment and the “Make in India” campaign.
  • Boost export and manufacturing activity and leading to substantive economic growth.
  • Help in poverty eradication by generating more employment.
  • Uniform SGST and IGST rates to reduce the incentive for tax evasion.

These are the benefits of GST registration, which each and every consumer as well as the trader can take. 

Final Word:

GST will get a straightforward and corruption-free assessment organization, eliminating the current weaknesses in a backhanded duty structure. It is business agreeable just as customer friendly. GST in India is ready to improve the places of every one of these stakeholders. We need an adjustment in the tax assessment framework, which is superior to prior tax collection. This requirement for change drives us to ‘requirement for GST.’ 

GST will permit India to arrange its terms in the global exchange forums more readily. GST pointed toward expanding the citizen base by bringing SMEs and the chaotic area under its consistency. This will make the Indian market more steady than previously, and Indian organizations can rival unfamiliar organizations.

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