GST Registration provides following benefits to the GST registered person under the existing law.
Advantages of taking Registration in GST
- If the turnover of the person exceeds the threshold limit, e 20 lakh in the previous year than the person must take GST registration. This is a mandatory requirement under the existing law. If any person violates this provision than it is subject to the imposition of penalty.
- GST Registration recognizes the person as the supplier of goods or services or both.
- A person registered under GST is authorized to collect GST from the end customer. Whereas an unregistered person is not allowable to collect GST from the customer.
- Taking GST Registration allows the person to take input tax credit on the taxes paid on the purchase of goods or services received. This input tax credit can be utilized to make setoff against the tax liability due on the supply of goods or services.
- GST Registration allows the seamless credit of the input tax from the entire chain, i.e from the manufacturer, importer to the last supplier in the chain.
- Registration under GST facilitates a person to keep a proper accounting of taxes paid on the input goods and services or both.
- Reduction in a multiplicity of taxes as in the past regime.
- Get Rid of Mitigation of cascading/double taxation
- More efficient neutralization of taxes especially for exports
- Development of common national market in the country
- Simpler tax regime, fewer rates, and exemptions for small business.
There are some of the major GST Registration Benefits for your business. Besides these six points, you will have peace of mind once you register for GST. This GST Registration Benefits will not only bring transparency to your business but also it will help you to run your business smoothly.