Benefits of GST Registration

In India, businesses must register for GST once their annual turnover crosses the threshold. GST Registration allows businesses to charge GST from consumers and claim Input Tax Credits (ITCs) for GST paid on business expenses. GST registration provides a unique identification number, aka GSTIN (Goods and Services Tax Identification Number), for GST returns filing.

Having a business entity registered under GST will bring in multi-fold benefits, which can be leveraged to meet the organization’s strategy.

Five significant benefits of having GST Registration are

1. It provides an opportunity to migrate to the organized sector
2. To collect GST & avail input tax credit
3. Stay competitive in the market
4. It offers a chance to explore new markets
5. Improves Credibility

1. It provides an opportunity to migrate to the organized sector.

Having a GST Registration Number will help the business to move from the unorganized sector to the organized sector. GST compliances will bring in a discipline of maintaining proper books of accounts, and this, in turn, will help the business to move to the banking channel for raising funds rather than raising funds from the open market.

2. To collect GST & avail the input tax credit

Having a GST Registration number will help the business to collect tax from the customers and, at the same time, enable them to avail the input tax credits if they are registered as regular taxpayers. Passing on the input tax credit will enable the taxpayers to do business in the B2B segment, which is more organized and helps manage their funds effectively.

3. Stay competitive in the market.

GST Registration enables the business to avail the input tax credit; once the same is passed on to the customers, the price which the customers pay for the goods or services will be reduced, which helps in being competitive in the market. Being competitive helps expand the business as today’s market is very price sensitive.

Also Read: A Step-by-Step Guide to GST Registration for E-Commerce Businesses

4. It offers a chance to explore new markets.

With GST Registration Number, businesses can be involved in the interstate trade i.,e supply goods to customers outside the state or country. Once GST Registration is obtained, goods can be supplied to customers in any part of the globe, enabling them to register on the e-commerce portal. The e-commerce portals provide good opportunities for accessing broader markets.

Also Read: Best GST Billing Software Of August 2024

5. Improves Credibility

Having a GST Registration Number will bring in loads of advantages apart from the increase in the business’s Credibility. All the stakeholders can verify and validate the data as the GST Return filing data is also available with the Account Aggregators. This will also result in lower borrowing costs, which will impact profits.

Above are some significant benefits of having GST Registration for businesses. These benefits also come with obligations like maintaining proper books of accounts, issue of tax invoices, payment of taxes, and availing of input tax credits. To support these obligations, CaptainBiz provides a cloud and mobile-based billing package, which will enable the business to be tax compliant and, at the same time, leverage the benefits of having a GST Registration number.

CMA Mallikarjuna Gupta Director - Indirect Taxes

CMA Bhogavalli Mallikarjuna Gupta is a qualified CMA with over two decades of experience in the areas of Tax Advisory, Litigation, ERP Development & Implementation. He is also regular faculty at NACIN, RTI, ICAI and various other colleges.

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Finance GST Income Tax