What are the main Benefits of GST Registration for Small Business?


  

About

With a motive of “One Nation One Tax” and to make the compliance procedure more transparent, seamless, and intuitive, GST was implemented in India. A variety of indirect taxes previously levied by central and state governments like VAT, Service Tax, Local Body Tax, Central Excise duty, Central Sales Tax Purchase Tax, Luxury Tax, Entry Tax, Octroi, etc. have been compiled and accumulated under GST.

In GST, as per regulations, it is mandatory for a business or any supplier that has a turnover of above Rs.40 lakhs (Rs 10 lakhs for special category states present in hill states and North-Eastern states) to get their online GST registration done. The major benefit that small entities get under GST is the simplification of the taxation procedure by bringing all the indirect taxes under a single category thus establishing uniformity across the nation. We’ll be discussing other various benefits that GST provides to small businesses and start-ups on registration

Ways to apply for GST Registration.

The following are the two ways to register for GST:

via GST Online Portal or

via GST Seva Kendra set up by Government of India

The process is usually completed within 4-6 working days and a registration certificate having a unique GSTIN which is a 15-digit alphanumeric code, is provided to the individual.

Benefits of Online GST Registration for Small Taxpayers

⤿ Ease of starting a new business in India without any difficulties since the registration process is both centralized and  standardized.

⤿ As GST is a unified and singular tax regime, the number of filings has come down, making it less hassle for small entities to fear of maintaining compliance.

⤿ There are no restrictions on interstate sales which will widen the scope of business for small entities.

⤿ Getting online GST registration builds a natural trustworthiness towards business from consumers and suppliers.

⤿ By getting registered, small businesses can avail ITC benefits by claiming the Input tax credit on the purchase of goods & services & can utilize the same for payment of taxes due on supply of goods or services.

⤿ Businesses get legal recognition as a supplier of goods or services which in turn helps in attracting more customers and growing business thereby increasing the competitive advantage.

⤿ GST has almost entirely put an end to the tax-on-tax impact on goods and services which is seen as a major boon for small businesses.

⤿ Small and medium taxpayers can avail the benefit of the composition scheme and lessen their  compliance burden and cost.

Conclusion

Implementation of GST has altered the complicated indirect tax framework. It has completely changed the way how tax is paid. To further smoothen the GST regulation process, the government is trying its best to make several timely changes. In a nutshell, registering to GST is overall a win-win situation. Apart from the benefits discussed above, registered businesses are also eligible for other miscellaneous benefits.

 

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