Why a Person should registered under GST Law. Here are the numerous benefits listed below. 2 min read.
- GST Registration Certificate considered as “proof of Business” hence very important and useful to Open a current Bank Account.
- To avail the Loan ( Business loan, CC) GST registration tends to be very useful.
- Many Companies including MNCs prefer to do Business only with person registered under GST Law it can be a great amount of Business loss just because of not having GST Registration. So to expand your Business GST Registration is important.
- GST Law is indirect Tax what does that mean, it means that the burden of tax is indirectly shifts to ultimate consumer hence as a Business entity it is not an additional tax or cost to you. You just have to collect tax and pay it to the government.
- The cost of compliance is very low as compare to benefits that you will get on registration.
- For GST Law government has given one window solution and almost every procedure is made simple and online.
- In GST one more benefit is that of seamless flow of Input tax credit. Let us understand this in earlier regime of VAT and Service tax If a person is Trader registered under VAT law do not get Input tax credit of tax paid on Services received as the service provider is registered under different Act of Service tax and that become its cost however in GST Law regime Traders as well as service providers are registered under same Act of GST hence traders can get the ITC of tax paid on Services and vice-a-varsa also possible hence it is very beneficial for both.
- GST is destination based tax hence GST will go the pocket of state government in which the goods or services are consumed hence it is very useful for Growth of Economy as well.
- GST has introduced Composition levy which is a boon to Small Businesses i will suppose to explain it in detail in other article.
- If you are proprietor being an unorganized sector credit remains low but registering under GST is considered to be more Structured way as your Financial data can be validated from an external party and that too government which is considered more reliable.
Whether you are required to Registered under GST Law? I have written an article for your Question :- Click here to read