GST registration not only helps you in getting your business recognized as a legal registrant but also opens a number of opportunities for your business. Benefits to GST registered business at glance are as follows:
-Become more competitive : You will be more competitive in comparison to your unregistered competitors since you will carry valid tax registration.
Expand your business Online : You cannot sell products or services on e-commerce platform without GST registration. If you're planning to give a blow on e-commerce platform like Flipkart, Amazon, Paytm, Shopify or through your own website, you must need a GSTIN.
Can take input tax credit : Only Registered GST holders can avail input of GST tax paid on their purchases and save the cost.
Can sell all over India without any restrictions : Without having GSTIN you cannot trade inter-state. This is possible only if you registered your business under GST.
Apply Government Tenders : Various government tenders requires GSTIN to apply tender. If you don’t have you may miss the business opportunity.
Open Current Bank Account : Especially, in case of sole proprietor business Banks & Financial Institution does not open a current bank account in the name of business trade name unless you carry any government proof in the name of your business. GST registration certificate can help you to open a current bank account.
Dealing with MNCs :Generally, MNC’s does not comfortable to deal with small business entities until they carry valid tax registration proof.
GSTIN is an abbreviation for Goods and Service Tax Identification Number. It consists of 15 alphanumeric digits. This is generated by the government after you have successfully completed GST registration.
GST Composition Scheme is for the small taxpayers, which is framed to reduce the tax
compliance burden.
Small taxpayers need not file monthly GST returns and they need to pay nominal GST at a fixed rate of
turnover. Any business having an annual turnover up to ₹1.5 Crore can opt for GST registration under
composition scheme.
GST COMPOSITION SCHEME
| Composition Scheme | Regular Scheme | |
|---|---|---|
| Compliance | Relaxed Compliance in order to safeguard small businessmen. | Normal compliance required. |
| Tax Rate | Composition taxpayers need to pay nominal GST at a fixed rate of turnover, which is normally 1-5%. | Tax rate for regular taxpayers goods and services, which is from 0-28%. |
| Input Tax Credit | Composition taxpayers cannot avail Input tax credit benefit. | Normal taxpayers can avail Input tax credit benefit. |
| GST Return Filing | Composition taxpayers required to file quarterly return | Normal taxpayers required to file monthly return |
| Tax Invoice | Composition taxpayers can not issue tax invoice to their customers. | Normal taxpayers can issue tax invoice to their customers. |
Goods and Services Tax is a consolidated indirect tax policy that encompasses VAT, CST, Service Tax, Central Excise duty, Entertainment Tax, etc and is valid all over India with effect from 1st July 2017
Mandatory to register under GST when annual turnover exceeds INR 40/20 lakh or supply goods and services inter-state or through e-commerce platform.
Tax rates vary from 0% to 28% depends on the type of goods & nature of the services you are selling.
Only business unit registered under GST can avail credit of tax paid at the time of purchase while filing GST returns.
Every GST registrant requires to file three monthly/quarterly returns and One annual return. Requires paying tax every month.
Business Unit having an annual turnover less than INR1.5 crore may opt the scheme. Requires to pay subsidize tax ranges from 1% to 5% & file quarterly return.