Benefits of GST registration

If you are an entrepreneur then you would already know about GST tax. However, even if you do not know about it, you will get to know about it in this article. Earlier, before the introduction of the GST Act, there were different indirect taxes that were used to be levied on the different stages of a transaction. Such taxes were excise tax, sale tax, central tax, VAT, etc. But now all the taxes have been clubbed into a single tax that is GST tax also called goods and services taxes. Due to this act, the easiness of sale transactions has been increased. Now there is only one single tax. But to avail of the benefits of this tax, you will be required to register your business under this act, otherwise, you won’t be able to avail of its benefits. GST registration is not a difficult task, you can easily go for online GST registration for your business. If you have successfully availed of the registration under this act for your business then there are a lot of benefits that you will be enjoying. If you want to know about such benefits then you need to continue reading this article.

The points given below are the benefits that you will be able to enjoy after availing of the registration under the GST Act:

·         Input tax credit: As you know GST is an indirect tax, which means if you are making a taxable purchase then you will be liable to pay tax on it. But there is a twist if you are a registered person then you will be able to take the input credit of the tax that you would have paid on the purchase you made. For example, you are a cloth manufacturer, you will, without any doubt, have to purchase some sort of raw materials and you will have to pay tax on purchasing raw materials. If you are not registered then you won’t be able to take the credit of the taxes paid and the tax arising on the sale transaction will have to be paid by you out of your pocket. But if you are registered then you won’t have to bear the tax out of your pocket. It will be set off from your input credit and any balance shall be paid out of your pocket.

·         Taxes are applicable on supplies: Another benefit of GST is that taxes are levied on supplies. In simple words, for the tax applications, there has to be a supply of goods or services or both. If there is no supply then GST tax can not be levied. In the earlier taxation system, taxes were also levied on the manufacturing, even if sales have taken place or not. In GST, no such issue is there.

These are a few benefits of availing of registration under GST. However, depending on the type of business, there may be a few changes in the procedure of registration but you can check over the web for the same. Let say you want to get GST registration for proprietorship, you can check for the procedure on the web.