What is GST Registration And Its Benefits To Help Businesses? A Goods and Services Tax (GST) certificate is a legal and authorized document issued by the Government of India. The certificate acts as proof of registration under the GST Act.
Components of the GST Registration Certificate
The following are the components of the GST Registration Certificate:
- Taxpayer GSTIN
- Name of the business
- Business Type
- Business address
- Liability date
- Validity period
- GST registration type
- Particulars as per the approving authority, like digital signature
What Is The Validity Of A GST Registration Certificate?
GST registration certificates are been issued by the GST department to the taxpayer without an expiry date. If the taxpayer or the department does not cancel the certificate, it will not be expired.
Also, if he is a non-resident of India or a non-taxpayer, the certificate is valid for only 90 days. The certificate holder can extend the validity of the registration certificate by applying it before it expires.
Who Will Issue The GST Registration Certificate?
Taxpayers and organizations receive their GST registration certificates digitally, from the Goods and Services Tax Network (GSTN). A certificate is valid if approved by the GST Act. The authority verifies the taxpayer by the data given in the Form GST REG-06 as mentioned below:
- Business Trade Name
- Business Legal Name
- Type of GST Registration
- Primary Location of the Business
- Other Business Locations
What Are The Types Of GST?
Before getting into the various GST registration processes, here is an outline of the four different types of GST that exist and the significance of each one:
CGST: The CGST (Central Goods & Service Tax) is the tax collected by the Central Government on the transaction of goods and services inside a state. It is a universal tax and is a substitution for all other taxes imposed by the Centre, etc.
SGST: A state government can impose the SGST or the State Goods and Services Tax. It is a tax that can replace all other taxes levied by the state, for example, Entertainment Tax, Entry Tax, and others. The state is the sole proprietor of the revenue collected from the imposition of SGST.
IGST: It refers to the application of the tax on the transactions of goods and services between the two states. It is known as the Integrated Goods and Services Tax, IGST is applicable when services or materials are been shipped from one state to another one.
UTGST: It is a specific tax and just meant for the five Union Territories in India. It has similar reasons and benefits as the SGST; the main difference is that it is applicable only in Chandigarh, Daman and Diu, Andaman and Nicobar Islands, Lakshadweep and Dadra and Nagar Haveli.
Benefits of GST Registration
It is safe to say that registering as a GST payer will provide many advantages. The following are a few reasons which demonstrate why it is beneficial to register for GST:
- It is a type of legal proof which can acknowledge a person as a certified provider of goods and services.
- Automatically makes the individual qualified for the wide range of other benefits that fall under the law of GST.
- The individual gets the legal right to collect taxes from his clients and carry forward the credit of the paid taxes to his clients or providers.
- It is a uniform tax imposed all over the country on goods and services making it substantially more convenient to understand the total indirect tax structure.
How To Register For GST?
The process of online GST registration has a few simple steps to be followed. It can be processed with GST registration services in Hyderabad, done at 24efiling. After reaching the GST site, an individual has to choose the ‘services’ option, followed by the ‘registration’ option, and ‘new registration’. Everything will be clear from that point onwards. There are a couple of documents that are necessary during GST registration. For individuals, required documents are PAN cards, bank account statements, photos, AADHAR Cards, and address proof are required. For example, if you reside in Bangalore, GST registration services in Bangalore are processed with the 24efiling Bangalore branch.
In the case partnership business, the same documents are necessary for all the partners involved, along with additional documents such as the partnership deed, registration proof of LLP, and the address proof of the business head. Hence, registering under GST and paying GST online is a worthwhile position to be. It is a process through which a typical market is being formed all through the country, which thusly will guarantee the smooth working of the economy. It has also halted the process involved with ‘cascading taxes’ by making it a standard rule to levy a single tax through the transaction of goods and services. Ideally, in no time, more individuals will recognize the total value of being an enlisted GST payer and do the needful to be so.
From this, it tends to conclude that the government has taken a lot of cautious planning while introducing GST into the economy. It was to improve the economy because the imposition of one uniform indirect tax all around the nation would lead to a smoother financial situation. Subsequently, GST registration should be thought of as exceptionally essential for an individual who wants to be a recognized taxpayer of India.