GST Registration Advantages
GST REGISTRATION SIMPLICITY IN TAX PAYMENT
GST Registration Currently, a startup spends a lot of time and energy to manage the various taxes at various points. It has to deal with VAT, Excise Duty, Service Tax, Octroi, Entry Tax, etc. After GST, only one unified tax rate will be applicable. This brings in a major advantage to startup businesses by simplifying the process of tax payment.
GST REGISTRATION EXEMPTIONS TO NEW BUSINESS
Earlier, any business that dealt with goods liable to pay VAT was required to get registration under the VAT act if the turnover crossed Rs. 5 Lakhs. As per the new GST, the limit shall be Rs. 10 lakhs which is a very good thing for startups. Also, businesses with a turnover between Rs 10 and 50 lakh are expected to be taxed at a lower rate. This will bring a lot of tax relief to newly established businesses.
EASY IMPLEMENTATION OF BUSINESS MODEL
Any new business needs to have a VAT registration from the sales tax department. A business may have to follow the unnecessary cumbersome process of registration which may be different in different States. GST will bring about uniformity in the process of registration and will only require a centralized registration that will make starting business much simpler.
SIMPLICITY IN TAX CALCULATION
There are many businesses that require the payment of not only Service Tax but also VAT. This makes the calculation for tax very complex. By implementation of GST, only one tax will be required to be calculated and paid. This will make the tax calculation easier.
Documents for Converting / Enrollment into GST
- Proof of business
- Proof of jurisdiction
- Bank details and authorized signatories
- Voter id card / passport / Aadhar card of owner / partner / company
- Pan card of individual owner / partner / company / LLP
Generally it takes around 2-3 days preparing entire application form on basis of collected data and will subsequently filed with appropriate Authority.
Generally it takes 10-15 working days for CBDT to issue Certificate of GSTN NO of converted VAT, CST and Service tax no.