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Start GST, no more stress – Mitra handles all the process! GST, no more stress – Mitra handles all the process! GST, no more stress – Mitra handles all the process!
📘 What is GST?
Goods and Services Tax (GST) is a comprehensive, multi-stage, destination-based tax that is levied on every value addition in the supply of goods and services. Introduced on 1st July 2017, GST replaced multiple indirect taxes such as VAT, service tax, excise duty, and others, creating a single unified tax system across India. It is known as “One Nation, One Tax”, and is applicable to manufacturers, traders, service providers, freelancers, e-commerce sellers, and more. GST is divided into CGST (Central GST), SGST (State GST), and IGST (Integrated GST) depending on the nature of the transaction. Businesses that cross the prescribed turnover limits must obtain GST registration and file returns regularly.
📌 Who Should Register for GST?
| Category | Description |
|---|---|
| Turnover above threshold | Businesses with annual turnover over ₹40 lakh (₹20 lakh for services) must register. |
| Inter-state suppliers | Any business supplying goods/services across state borders must register. |
| E-commerce sellers | Selling via platforms like Amazon, Flipkart, etc. requires compulsory registration. |
| Casual taxable persons | Those who occasionally supply goods/services in another state (e.g., exhibition stalls). |
| Non-resident taxable persons | Foreigners or NRIs supplying goods/services in India. |
| Businesses under Reverse Charge Mechanism | If liable to pay tax under reverse charge, registration is mandatory. |
| TDS/TCS deductors | Government departments, e-commerce operators who deduct TDS/TCS under GST. |
| Input service distributors (ISD) | Offices that distribute input tax credit to other branches must register. |
| Voluntary Registration | Even if not mandatory, businesses can register to avail input tax credit and grow trust. |
✅ Benefits of GST Registration
Registering under GST offers multiple advantages for businesses of all sizes. Here’s how it helps:
🔹 1. Legal Recognition
GST registration gives your business official recognition as a supplier of goods and/or services. It builds credibility and makes your business legally compliant under Indian tax laws.
🔹 2. Input Tax Credit (ITC)
Registered businesses can claim Input Tax Credit on purchases, meaning the GST paid on business expenses can be deducted from GST payable on sales. This reduces your overall tax liability.
🔹 3. Better Business Image
Customers, vendors, and financial institutions trust GST-registered businesses more. It adds professionalism and helps in expanding B2B relationships, especially with corporate clients.
🔹 4. Eligibility for Government Tenders & Loans
Many government contracts, MSME schemes, and business loans require GST registration as a pre-condition. It opens doors to more business opportunities and funding.
🔹 5. Simplified & Unified Tax System
GST has replaced multiple indirect taxes (like VAT, Service Tax, CST, Excise) with one single system, making taxation transparent, easier to understand, and consistent across the country.
🔹 6. No Cascading Effect (No Tax-on-Tax)
Before GST, businesses paid tax on tax at every stage. GST removes this burden by allowing credit at every level of the supply chain, ultimately reducing the cost of goods and services.
🔹 7. Seamless Interstate Trade
With GST, there’s no need for multiple state-wise tax registrations for selling across India. It promotes easier movement of goods and services across states.
🔹 8. Entirely Online Process
Everything — from GST registration, return filing, payment, to refund claims — is done online through the official portal www.gst.gov.in, saving time and effort.
🔹 9. Improved Logistics & Efficiency
The removal of state-wise checkpoints and taxes under GST has led to faster transport, lower logistics costs, and better operational efficiency, especially for businesses dealing in physical goods.
🔹 10. Promotes Compliance & Discipline
GST requires regular monthly or quarterly return filings, which encourages businesses to maintain clean and organized accounting records — helpful during audits and financial planning.