One of the most significant tax reforms in India is the Goods and Services Act. The taxpayers can calculate the GST registration benefits only by availing it. It is also better to understand the complete concept of GST by the taxpayers. The GST Act which was implemented in 2017 simplified the indirect tax regime and eliminated the cascading tax effect. It also simplified the indirect tax regime. GST Act replaced many indirect taxes that applied to goods and services. 

GST Registration Benefits 2021

The GST registration benefits have been highlighted below:

• Removed the Cascading Tax Effect

GST as an indirect tax brings all the indirect taxes regime under a single umbrella. Hence, this removed the cascading tax effect efficiently. 

• Increased Threshold Limit

The minimum threshold limit is now higher after the implementation of GST. Previously, as per the VAT regime, all businesses that had a turnover of above Rs. 5 lakh limit had to pay VAT. However, in this GST regime, the threshold limit has increased up to Rs. 20 lakh provides relief to many small businesses.

• The Compliances have Decreased

As per the previous tax regime, both the VAT and services tax had many compliances that must be followed by businesses and traders. For example, it was mandatory to file excise returns every month. Now, in GST the taxpayers need to file only one return.

• Composition Schemes for Business

Businesses that have annual turnover between Re. 20 lakh and Rs. 75 lakh are now eligible to decrease their taxes using the composition scheme. This option has decreased the applicable tax rate and also reduced the burden of compliances in many ways. This point is a vital parameter to understand GST registration benefits.

• Online Registration of GST

The taxpayers can file GST returns online and also do GST registration online on the portal. It is a completely hassle-free process. This pointer is also an important point to know the GST registration benefits. The simple way to register and also its hassle-free approach has eased the process. It is believed that start-up businesses benefit the most through this process. It is also useful in establishing clarity concerning the jurisdiction between the Central and State governments.

• Increased Logistic Capacity

Before the introduction of GST the logistic companies to avoid CST and the state entry taxes used to maintain various warehouses across all the states. Also, many warehouses had to operate below their capacity. However, after GST inter-state restriction movement has decreased significantly.

As a result of this, the e-commerce and warehouse operators are setting up warehouses at locations that will be convenient for all traders. This has decreased unwarranted logistic expense and also increased profit for their business. These can be said to be primary GST registration benefits in the current time.

Conclusion

Previously, businesses such as computer sales as well as service and restaurants that sold goods and services as a package had to comply with both service tax regulations and VAT. Businesses faced a lot of complexity due to this as they had to calculate the taxes for the transactions done at different states for various items. After the introduction of GST, the difference between goods and services has been removed. Hence, this made compliance easier. Further, invoicing has also been made easy for businesses as there is only one rate for businesses. Hence, there are a lot of GST registration benefits that the taxpayers can avail themselves of after they get themselves registered in the GST portal.

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