Benefits of GST Registration
is an obligation imposed by law and heanc a mandatory compliance. However, GST Registration
numberhas several benefits in place for Registered taxpayers. Some of the benefits are summarised below:
Availability of Input Tax Credit:
Input Tax Credit
(ITC’) on purchases would be available only for Registered taxpayers. By availing GST Registration
, taxpayers would be able to offset the ITC against the output GST liability, thereby reducing the cascading effect of GST and optimising the value of goods/ services offered to customers.
Eligibility to pass on ITC to buyers
A Registered taxpayer would be able to pass on the benefit of ITC to the Buyer, thereby facilitating a seamless flow of tax credits. Hence, the turnover of the business would have a great potential to multiply as Buyers would be willing to purchase only from registered taxpayers.
Undertake Inter-state and export sales
A Registered taxpayer would be able to undertake inter-state an export sales
without any restrictions, thereby increasing the extent and volume of business.
Contribute to nation building
indirectly enforces buyers and sellers to undertake business transactions in a transparent manner by reporting transactions and comply with law at various stages. This process facilitates continuance of the tax chain across economic life cycle of the business. By being a Registered Taxpayer, paying taxes on time and complying with various reporting requirements, you can be proud that you are one of the contributor to nation building.