The Goods and Services Tax, or commonly known as ‘GST’ is a tax established by the Government of India to amalgamate several taxes within a single device. It came into force in 2017.
The GST Law is a multiple-phase, destination-relevant tax, levied on each and every value addition. This is an indirect tax for the whole of India, domestically applied. From the point of view of convenience, individuals have embraced it, as it brings simplicity to financial transactions. Nonetheless, let’s see if the GST has proved favourable or not.
About GST in India
Analysts claim that the GST has successfully made India’s indirect taxation structure simple. Customers have to pay tax while making purchases of goods and services, and this is included in the total cost. The seller, therefore, collects the tax which is then given to the government. In a uniform way, GST rates are applied to various services and goods, segmented within a range of slab rates. For instance, luxury products and services are categorised within elevated slabs, while necessities are included under lower or zero slabs. The GST is directed and managed by a GST Council and according to its regulations, each business with a Rs. 40 lakh-turnover or more has to register as a taxable business with the council. A new GST registration process is done online and is very easy.
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What is the process of GST registration?
Although the GST Law dictates that businesses with a turnover of Rs. 40 lakh and above have to be registered, businesses in North-East India require registration for a turnover of Rs. 10 lakhs. Furthermore, the new GST registration process only takes six days. To get new GST registration done, you have to visit the GST portal of the Government of India at https://www.gstgov.org.in. You will have to enter some details of your business and this process is conducted easily through a menu online. Once you have successfully registered, you will get a unique identification number, the GSTIN (the Goods and Service Tax Identification Number). This specific 15-digit number aids in deciding whether a business has to pay the GST.
The advantages of GST
As you can tell, like all processes today, new GST registration is versatile and brief. The benefits of registering for GST are several and here are some key ones that have made this taxation method successful in India:
- MNCs or Multinational Corporations are allowed to accept large-scale projects due to registration with GST.
- The online sale of goods and services is possible through establishments that are registered.
- Entities that have GST registration are free to sell goods and services across India without a hitch.
- With a GSTIN, anyone can easily begin a current account in a bank in the name of a business.
- As having a GSTIN is not only lawful, but popular, a business’ value in terms of its branding, is enhanced and made more credible.
A final mention on GST
The GST has made life simple for both the government and business people, as tax is collected at source from customers and given directly to the government. With online methods in place, GST offers a transparent way of conducting transactions and ensuring tax collection promptly.