Benefits of GST Registration:
GST Registration is an obligation imposed by law and heanc a mandatory compliance. However, GST Registration number has 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 and export sales without any restrictions, thereby increasing the extent and volume of business.
Contribute to nation building
GST 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.