Goods and Services Tax (GST) is a comprehensive, multi-stage tax levied at every value-adding stage. Earlier, there were multiple taxes and even different state taxes; GST streamlined the system, as only one tax was applicable in the whole country after this.

It has simplified the whole taxation process for consumers and the government. It works on the value added at every stage, from manufacturer to consumer. Registered business owners can claim input tax credits, which reduces their overall tax liability. 

Exploring GST Categories

GST aims to make the process more efficient and transparent and reduce compliance burdens. This single tax system’s main advantages are ease of doing business, encouragement of investment, and enhancement of the export potential of Indian goods and services.

Consumers also benefit as GST reduces multiple layers of tax, which increases affordability. The 3 main categories of GST are:

• Central Goods and Services Tax: This tax is for intrastate transactions, and the central government collects it for the sale of goods and services. 
• State Goods and Services Tax: The state government collects this tax on intra-state transactions involving the sale of goods and services. 
• Integrated Goods and Services Tax (IGST): The central government collects the IGST on interstate transactions and on imports of goods and services. 

Who Needs to Register for the GST? 

Businesses whose total aggregate turnover exceeds the threshold limit of Rs 40 lakhs must register for GST.  Some people/businesses have to register for GST irrespective of their turnover, which are:

• Casual taxable persons 
• Non-resident taxable persons
• Agents of a supplier
• Input service distributors
• E-commerce operators
• Persons who supply via e-commerce operators

What are the Steps to Register for GST? 

When initiating the process of registering for GST, you must follow the below steps very precisely to avoid any blunders or mistakes:

• Visit the GST Portal 

Go to the official GST portal www.gst.gov.in and click on ‘Register Now’ under the option of ‘Taxpayers’.

• Part A: Preliminary Registration 
• Select the option of ‘New Registration’.
• Please complete all the information requested, such as the type of taxpayer, state, district, type of business, income, mobile number, e-mail address, etc. 
• Verify your details by entering the OTP sent to your mobile number and email address. 
• After this verification, you will receive a Temporary Reference Number (TRN). 

• Part B: Main Application

• Log in with your Temporary Reference Number (TRN).
• Enter the OTP sent to your mobile number and mail address. 
• Fill in the additional details the platform requires and ensure you are ready with all the documents beforehand.

These documents include a partnership deed of business, documents of the principal place of business, a bank account attached to the business, and more.

• Upload the necessary documents for your business verification. 
• Cross-check all the details and then click submit using a digital signature certificate or electronic verification code. 
• Application Processing 

• After this, you will get an Application Reference. 
• The GST officers will verify your documents and ensure no errors. 
• If the information provided is correct after verification, a GSTIN (GST Identification Number) will be sent to you with a temporary password within 7 business days. 

Benefits of GST Registration 

The Goods and Services Tax is one of the largest tax reforms in the nation. It replaces numerous indirect taxes levied by the state and the federal government, including service tax, VAT, and excise.

GST is imposed on products and services that are sold within the nation. Every reform will inevitably have benefits and drawbacks. The following are the main benefits of GST:

1. Legal Recognition of Your Business 

GST Registration shows that your business is legitimate. This will further enhance your trust amongst the consumers and your credibility in the marketplace. Goodwill in the market is important for any business as it is directly related to the turnover. 

• Input Tax Credit 

This is one of the main reasons why businesses apply for GST registration. Businesses can avail of the input tax credit, which reduces their tax. This is extremely beneficial for large businesses, which have to pay a huge load of taxes.

• Competitive Advantage and Better Quality 

The registration of GST increases the profits of the firm. They can provide their goods and services at a much more affordable price than their contemporaries and can also improve the quality of the goods and services. Registration gives businesses a lot of scope for improvement. 

• Avoidance of Penalties 

Registered businesses must comply with the rules and regulations, and this allows them to avoid the hefty penalties for non-compliance. You would definitely want to avoid these penalties because they obviously reduce profits unnecessarily. 

• Improved Market Reach 

GST registration makes it easier for businesses to expand interstate. Previously, this was a very complicated process due to the multi-tax system. Ease of business was one of the main intentions behind implementing the GST system. 

Summing Up

The implementation of GST in India is a positive reform. It streamlines the taxation process and is effective for all parties, from manufacturers and consumers to the government. The earlier system of multiple taxation, which was also indirect, was troublesome, and GST was a relaxation.

The categorisation of GST ensures that both central and state governments are getting their share. The GST system has improved India’s economic framework. It is highly advisable that if you are a business, you should definitely get the registration process for GST done.

It will help with the input tax credit and the amount you save to upscale the business. The market will recognise your credibility because of the registration. You can follow the above process to kickstart your GST registration today.