Once a business is formed, the promoter feels the need to get his business entity registered under the recognized tax regime. This article gets to answer important questions regarding registrations under the GST regime.
-Do i mandatorily need to get myself registered under GST regime?
No, by default you are not required to get yourself registered under GST. But compulsory GST registration is required where aggregate business turnover exceeds the threshold limit in a particular financial year.
And apart from above, following person is required to get himself mandatorily registered irrespective of the amount of turnover: –
-Okay, so I get it. I am not compulsorily required to get registered. But what if I want to get myself registered voluntarily to be part of an organized business chain? Am I allowed?
Yes of course. GST does have the provision for the same. An entity can apply for voluntary registration under GST. But once you opt for this option you cannot undo your decision for that particular financial year.
-And one very obvious question. Is there any way by which I can reduce my tax liability? I mean I don’t intend to evade tax but you see I am operating a very small business confined only to this state as of now. And I feel that I cannot afford to keep all the purchase documents, and I want to minimize my tax compliance.
Luckily Yes. GST regime offers you to get yourself registered under Composition Scheme. This scheme allows small businesses to pay tax at the reduced rates of 1%, 5%, and 6%. But businesses are not allowed to operate interstate and are not allowed to take input credit of taxes paid on the purchase. But since your area of operation is within your state, this scheme is perfect for you.
-I must say that this whole GST thing looks very business-friendly. Can you please elaborate on a few benefits which I could get, by getting myself registered under any of the GST schemes?
Yes sure, benefits you will get under normal registrations are as follows:
And benefit you will get under composition scheme are as follows:
-Okay benefits seems to be decent enough. And I am kind of convinced to get myself registered under this regime. So, what all documents are required for GST Registration?
-Okay thanks for your support. And one last thing. From where can I get such other important information about businesses and compliances?
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