GST registration is an acronym for Goods and Services Tax. It is a tax levied on the supply of goods and services in India. Before beginning to offer their services in India, all service providers are required by the government to register with the GST Department.
The registration will help you avoid paying taxes twice. For example, if you are exporting your products from India and then importing them into another country, you will have to pay taxes twice on the same product: once when it was exported and again when it is imported. This can amount to over 50% of your revenue, which can be a huge loss for any business!
Do you know what GST is?
GST stands for Goods and Services Tax, a national tax on the supply of goods and services. GST aims to simplify the complicated tax system in India. It was introduced with effect from 1 July 2017 by passing an amendment to the Finance Act 2005. More than 100 types of goods attract GST at different rates of 0%, 5%, 12%, 18% etc., depending on their category.
How does GST work?
GST is the Goods and Services Tax (GST) implemented in India on 1 July 2017. It is a tax levied on all goods and services consumed in India. The basic rate of GST is 0%, with a standard rate of 12% applied to some items such as medicines, education, luxury cars, etc., while manufacturing or selling certain goods attracts additional taxes at different rates depending on their value.
To ensure transparency, the central government provides a uniform structure for registering Service Providers under this Act. Service providers have become cautious about registering themselves since many organizations were found to be evading taxes by providing wrong details during the application process, which led to them getting rejected just after submitting the form online.
Why you should register for GST
- You can claim an input tax credit f or goods or services you have provided to your client.
- You can do business online and comeplete your online GST registration in one go.
- It also helps with reporting requirements. Since GST is collected at every level of the supply chain, many reporting requirements must be fulfilled by all businesses registered under GST laws. These include filing monthly returns and paying quarterly taxes throughout the year. The process can be complicated without proper training or guidance from experts at GST India.
What are the benefits of registering for GST?
The benefits of registering for GST are numerous. You will be able to:
- Get tax invoices and payments done on time.
- Receive credit notes from your suppliers faster, which can later be used as proof of payment.
- Obtain invoices issued by the supplier after they have been paid, indicating that you have received the goods or services being supplied by them.
What do you have to pay for registration for GST?
The amount payable is Rs.1,000 (one thousand rupees). You can make the payment online using your credit card or debit card in any of the following modes:
- Net banking (internet banking)
- Mobile wallet
How much time does it take to register for GST?
The GST process will take a few minutes of your time. Once you have completed the online registration, simply add your company name and contact details to the Taxpayer Account Number (TAN), Sender Identification Code (SIC), State/Province, as well as the National Standards Authority of India (NSC) website. This can be done through their respective websites or by calling them on toll-free numbers available at each website.
Whether you’re a service provider or not, GST registration can help you to save a lot of money and avoid huge penalty charges. It can even eliminate revenue losses by reducing tax fraud. And this is all possible without paying for any costly services. So don’t miss out on this benefit now.
Amanda Byers is a graduate of Columbia, where she played volleyball and annoyed a lot of professors. Now as Zobuz’s entertainment and Lifestyle Editor, she enjoys writing about delicious BBQ, outrageous style trends and all things Buzz worthy.