A Complete Guide to GST Registration

 GST registration has become an important aspect for any business. The full form of GST is Goods and Services Tax, which is a comprehensive indirect tax charged on the supply of goods and services within Indian territory, and GST registration is compulsory for businesses with a certified annual turnover that differs from business to business. 

The Goods and Service Tax Act was introduced by the Indian government on July 1, 2017. The introduction of GST aimed to simplify the indirect tax system in India by merging multiple taxes into one and improving the tax collection process. 

Types of GST 

 

In order to know the GST tax liability of a business, it is essential to know the type of GST:

 

State Goods and Services Tax (SGST): It is the tax charged on the sale of services and products within a state. It eradicated earlier taxation that included entry tax, state sales tax, entertainment tax, surcharges, and others. 

 

Central Goods and Services Tax (CGST): It is charged by the central government on the supply of intra-state products. It replaced many taxes like service tax, central excise duty, and customs duty. 

Union Territory Goods and Services Tax (UTGST): It is applicable to the sale of products and services in Union Territories like Andaman, Nicobar, and Chandigarh, among other union territories. 

 

Integrated Goods and Services Tax (IGST): This tax is charged on the sale of interstate products and services. 

Applicability of GST Registration 

According to the GST Act, any business that fulfills any of the below-mentioned criteria is bound for GST registration. 

• Businesses that cross the annual turnover threshold of Rs. 40 lakh are liable for online GST registration. 

• Any individual selling goods through an e-commerce platform is also liable for GST registration. 

• Non-residents and casual taxable persons should also file GST.
  
  

To ensure the smooth functioning of GST registration, it is important for the above-mentioned people or firms to file for GST and comply with the related eligibility and documentation to avoid any penalties and future hurdles. 

List of the Top Benefits of GST Registration 

There are various benefits of GST registration that you, as an individual or business, can avail of. Below are some of the top benefits of GST registration: 

Eradication of the cascading effects: The introduction of GST removes the cascading effects of earlier indirect taxation, causing dual taxation at every step. GST registration has reduced the tax liability of business entities. 

Easy registration procedure: The process of GST registration can be easily done through the GSTN portal, making it time-efficient and easy. 

Lesser compliance: Earlier businesses had to file several returns accorded with different indirect taxes like VAT, excise, and service tax. But GST is a single tax regime, so it lowers the number of filings, making it less problematic for businesses to file a return. 

Transparency: Registration under GST consists of various provisions such as compliance, payment of taxes, and perks of input credit, ensuring clarity in the tax collection system. 

Regulation of the unorganized sector: GST registration also helps to regulate the unorganized sector, like construction sites. 

 

Final Words 

Whether you are a small business owner or a large business owner, or freelancer the GST registration services can help you gain certain benefits. You can easily track your registration process through GSTIN on the GST portal. If you are looking for reliable GST billing software that assists you with GST registration and compliance requirements, then consider Eazybills, as it is a one-stop solution for all the billing requirements, as it is easy to use software that doesn’t require any additional training.