Before we proceed further, let us know What is GST? It is GOODS AND SERVICE TAX , it is Indirect tax levied on Goods and Services.
GST is the Comprehensive Indirect tax that was designed to bring all Indirect taxation under one Umbrella or it subsumes many Indirect taxes which were imposed by Centre and State such as excise , VAT and Service Tax. Why so? Because of GST , it is going to eliminate the Cascading effect of tax i.e tax on tax and this is the biggest advantage of GST.
How Important is GST REGISTRATION
In order to get GST Registration, it simplifies the way to deposit taxes to the government and to claim tax benefit which was earlier paid i.e ITC . In Other Words, Without Registration a person can neither Collect tax from his customers nor claim any ITC of tax paid by him.
By taking Registration, it gives many advantages to taxpayers. He is legally recognized as a Supplier of Goods and Services.
According to GST ACT 2017, any businesses with a turnover of Rs 40 lakhs ( earlier it was 20 lakhs) and above must be registered under GST. For North Eastern and Hill States the limit is 20 lakhs (earlier it was 10 lakhs).
Here is the list of certain businesses for which GST Registration is mandatory irrespective of their turnover.
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