Introduction
In any tax system registration is the most fundamental requirement for identification of tax payers ensuring tax compliance in the economy. Registration of any business entity under the GST Law implies obtaining a unique number from the concerned tax authorities for the purpose of collecting tax on behalf of the government and to avail Input tax credit for the taxes on his inward supplies. Without registration, a person can neither collect tax from his customers nor claim any input tax credit of tax paid by him.
Right Plan for Your Business
Need and Advantages of Registration
- Registered person is legally recognized as supplier of goods or services
- Registered person is legally authorized to collect tax from his customers and pass on the credit of the taxes paid on the goods or services supplied to the purchasers/ recipients
- Registered person can claim input tax credit of taxes paid on his purchases / procurements and can utilize the same for payment of taxes due on supply of goods or services
- Seamless flow of Input tax credit from suppliers to recipients at the national level.
Liability for Registration
Voluntary GST Registration for Businesses
Businesses generating a turnover of less than Rs.20 lakhs can enroll for GST voluntarily. By doing so, they can benefit from advantages such as availing input tax credits, unrestricted inter-state sales, eligibility to list on e-commerce sites, and establishing a competitive stance against businesses that aren’t GST-registered. While this Registration isn’t a mandate, it paves the way for enhanced growth prospects and the potential for increased profitability.
