The Significance of GST Registration in India

Exactly seven years ago, on July 1st, 2017, a single taxation regime was introduced in India – The Goods & Services Tax that we commonly call GST was levied for businesses with an annual turnover of Rs. 20 lakhs and above (Rs. 10 lakhs for Northeast and hill states). This 15-digit GST Identification Number has indeed brought in a lot of structure and efficiency in the system since earlier there were multiple indirect taxes applicable for state and central both such as VAT, service tax, excise duty, and more.

When you are a start-up or a young entrepreneur, this can be a bit overwhelming due to lack of awareness or clarity. This blog will breakdown the details in a simplified manner and help you understand the significance of GST, advantages, challenges, registration process, required documents, and its role in business growth.

Ease of doing Business

In today's digital era, everyone prefers the ease of managing things from the comfort of their homes and offices, then how could tax compliance be left behind. This centralized platform helps businesses eliminate complexities that come with multiple tax registrations which facilitates ease of compliance and adherence to regulatory requirements, and the best part is that it's online!

Taxation Simplified

• GST registration makes your business legit, leading to greater trust and transparency among stakeholders, resulting in better credibility in the marketplace.
• The unified tax system has opened more opportunities for businesses to expand in other states without bothering about different tax regulations.
• The accessibility of online registration has brought in more inclusivity as it caters to businesses of all sizes and sectors, regardless of the location or resources.
• The flexibility of online registration eliminates geographical barriers and empowers entrepreneurs to manage their tax affairs with ease.
• GST has led to a proper billing system for the purchase of any goods or services, leading to significant reduction in corruption and black money.

The process is simple!

1. Visit the official GST Portal – www.gst.gov.in
2. On the homepage, select “Services” and choose “Registration” from the dropdown menu.
3. Click on “New Registration” under the “Registration” section.
4. Choose the “Taxpayer” category to proceed.
5. Fill out the GST REG-01 form with key details like PAN, mobile, email etc. to complete the registration.
6. An OTP will be sent to the mobile number and email provided for verification.
7. Upload the required documents – PAN & AADHAR card, proof of business registration (deed/certificate), address proof of business operations (rent agreement/electricity bill), bank account details (cancelled cheque/bank statement), digital signature (for companies and LLPs)
8. After submission, you will receive an ARN (Application Reference Number) to track your application status.
9. Once the application is processed, you will receive your 15-digit GSTIN.

Some hurdles that can be managed

Understanding new systems and processes can be a bit cumbersome initially. There could be some technical glitches or documentation errors leading to delays and rejections but that’s the case with a lot of platforms. Seeking assistance from support channels can mitigate this challenge and ensuring the submission of right documents will minimize this risk of errors.

Stakeholder benefits

Future looks bright

GST has revolutionized the Indian tax system and given a boost to business efficiency. With integration of artificial intelligence and blockchain, it will further enhance the accuracy and deliver a superior customer experience.