5 Reasons You Should Register Your Business for GST - SceneLinkList - Read Latest Articles Daily!

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21 June 2021

5 Reasons You Should Register Your Business for GST

GST, or the Goods and Service Tax, is a comprehensive, destination-based, and multi-stage tax in India. It is typically levied on every value addition. Since the government mandates tax payment, individuals must begin the step with GST registration online.

This registration ensures that an individual receives GSTIN, timely updates on the tax payment, and related obligations, and access to various credit facilities. However, non-compliance can simultaneously push one to pay hefty penalties, ranging up to 10% of the tax amount or Rs.10,000, whichever is higher.

The situation can worsen in evasion or tax fraud, forcing a penalty of an equal amount of outstanding tax. Thus, entrepreneurs must understand the needs of registering their business for GST first. 

What is the need for GST registration?

Businesses need to register their companies under a central database if they are eligible to pay the Goods and Services Tax. This process is known as GST registration. Keep in mind that only companies with an annual turnover exceeding Rs.40 lakh need to register for GST and pay the said tax. 

For businesses located in the North-Eastern states or hilly areas, the maximum GST-free slab is Rs.10 lakh.

For certain enterprises, GST registration is mandatory irrespective of their yearly earnings. The registration process is simple, and one can complete it within a couple of days. To that end, individuals must keep the documents required for GST registration of proprietorship handy for a streamlined process.

Why is GST registration crucial for every individual?

1. Establish a brand name

Registering with GST helps a business prosper without spending a hefty sum. Technically, big-scale firms are obligated to register due to their turnover range. In this regard, a small or new enterprise can gain benefits by voluntarily registering with GST. New clients and competitors can understand the firm’s marketing skill and efficiency in service via this. It again helps create credibility in the eyes of financial institutions offering credits like a business loan.

2. GST help eliminate the effects of taxes

Before introducing GST, both large-scale and small-scale industries were bound to pay multiple taxes. However, GST removed such a repetitive effect by bringing the ‘one nation one tax’ rule. 

The GST registration online facilitates scaling savings and aids small businesses looking for a financial backup to get the desired credit without hassle. Therefore, one should check the list, briefing all you need to know about GST for timely tax payment as it is a good way to boost creditworthiness.

3. Easy loan availability

Firms, irrespective of their size, are always on the lookout for funding to support liquidity. However, availing credit may be difficult if the company isn’t registered under Goods and Service Tax. Therefore, getting one’s business GST-certified and keeping the documents required for GST registration of proprietorship is essential.

It would help an enterprise source a sizeable business loan and other forms of credit from reputed financiers, like Bajaj Finserv.

They also extend pre-approved offers to simplify the loan availing procedure. You can find these offers on various financing options, including a personal loan and a business loan. You can check pre-approved offers by providing a few details, like your name and phone number.

4. Gain tax benefits

According to the new regime, businesses with an annual turnover of Rs.20 lakh to Rs.70 lakh can benefit under GST. By initiating GST registration online, such organizations can easily bring down the tax obligation and reap returns.

5. Online registration with simple steps

Digitalization has made online registration under GST simple and hassle-free. Now start-ups and SME owners don’t need to waste time standing in queues to certify their firms. One can check the step-by-step guide on how to register GST online to register their firms with a few clicks.

These reasons substantiate the need for a GST registration online to consolidate the firm's integrity in the market. This would help a business prosper and easily create a brand name without spending tons on marketing or promotion.

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