Why Is GST Registration An Important Process?

GST or Goods and Services Tax replaced many taxes that were previously imposed by both the central and the state governments such as the VAT, excise duty and service tax and was one of the greatest economic reforms of the recent time in India.

Crucial reforms made by GST

•    After the GST regime, people don’t have to deal with the tax on tax effect or the cascading effect as all the indirect taxes are now under one umbrella.

•    As the threshold limit of what the businesses have to pay has been increased to Rs. 20 lakh, many service providers and small traders are exempted.

•    Small businesses have a reduced burden with the composition scheme brought by the GST.

•    As there is one unified return that has to be filed, the different returns and compliances of each tax do not need to be done.

•    The efficiency of logistics has improved a lot as the inter-state movement is easier now.

The ease and benefits of GST registration
The entire GST Registration is an important process that can be done online and is very simple as well. For startups especially, this ease is maximized as they don’t have to run around to acquire different registrations.

Moreover, after registration, you can be legally recognized as a supplier of services or goods.

You can also have the legal authority to collect taxes from your purchasers and pass on the credit to recipients. Taxes that are paid on the input services or goods can also be properly accounted now. Moreover, you are liable to register under the law if your financial turnover exceeds 20 lakh aggregate amount.

The registration is also a very simple and easy process with many benefits and can be done anywhere with any device having internet access.