GST is a comprehensive indirect tax on manufacture, sale, and consumption of goods and services throughout India to replace taxes levied by the central and state governments. GST Registration regime will confer the following advantages to the business:
- Legally recognized as the supplier of goods or services.
- Proper accounting of taxes paid on the input goods or services which can be utilized for payment of GST due on the supply of goods or services or both by the business.
- Legally authorized to collect tax from his purchasers and pass on the credit of the taxes paid on the goods or services supplied to purchasers or recipients.
As per the GST Council, entities in the Northeastern and hill states with an annual turnover of Rs.10 lakhs and above would be required to obtain GST registration. For all other entities in the rest of India would be required to obtain GST registration, if annual turnover exceeds Rs.20 lakhs. Entities required to obtain GST registration as per regulations must file for GST registration within 30 days from the date on which the entity became liable for obtaining GST registration.