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- The purpose of a GST number is to streamline the taxation process and ensure better tax compliance. It helps the government keep track of businesses and their transactions, making it easier for them to collect taxes. Additionally, a GST number acts as a tool for businesses to claim input tax credit and establish their credibility in the market.
www.captainbiz.com/blogs/the-importance-of-a-gst-number-compliance-benefits-and-legal-implications/GST Number: Importance, Eligibility, Benefits, Impact on Business
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What is a GST number?
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What is a gstin number?
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Mar 28, 2024 · A GST number, also known as a Goods and Services Tax Identification Number, is a unique identification number assigned to businesses that are registered under the Goods and Services Tax (GST) system. It’s like a secret code that identifies your business to the tax authorities.
- GST Number Example, What is GST Number, Importance and More
This article aims to provide a comprehensive understanding...
- GST Number Example, What is GST Number, Importance and More
Jan 16, 2024 · This article aims to provide a comprehensive understanding of what a GST number is, its purpose and importance, the process of obtaining one, the structure and components of the number, the benefits and limitations, as well as the responsibilities and compliance associated with having a GST number.
- Freelance Content Writer
Oct 2, 2024 · What is GST number? Why do we need it? How to apply for GST number? Find all such answers here in this article. Read now.
- Business houses in India with a turnover of over 20 lakhs annually need to register for GSTIN. Also, businesses dealing in or manufacturing product...
- You can approach the GST Seva Kendras set up by the Government of India or apply online through the GST portal.
- Yes. GSTIN has been made available free of cost by the Government of India. If you enlist the services of a consultant to help you with the registr...
- The PAN is an alphanumeric number having ten digits. The GSTIN is a fifteen-digit number that includes the ten-digit PAN number in the 3rd to 12th...
- GSTIN is mandatory for the online sale of all products that are eligible for GST taxation, irrespective of what your turnover is.
- Yes, GSTIN can be canceled under the following three scenarios: The taxpayer can request cancellation if they are shutting down their business, if...
- Yes. More than one GSTINs may be applied under the same PAN if The business house is operating in more than one state. When the taxpayer may have t...
- Advantages of GST
- Disadvantages of GST
- Conclusion
GST eliminates the cascading effect of tax
GST is a comprehensive indirect tax that was designed to bring indirect taxation under one umbrella. More importantly, it is going to eliminate the cascading effect of tax that was evident earlier. Cascading tax effect can be best described as ‘Tax on Tax’. Let us take this example to understand what is Tax on Tax: Before GST regime A consultant offering services for say, Rs.50,000 and charged a service tax of 15% (Rs.50,000 * 15% = Rs.7,500). Then say, he would buy office supplies for Rs.20,...
Higher threshold for registration
Earlier, in the VAT structure, any business with a turnover of more than Rs.5 lakh (in most states) was liable to pay VAT. Please note that this limit differed state-wise. Also, service tax was exempted for service providers with a turnover of less than Rs.10 lakh. Under GST regime, however, this threshold has been increased to Rs.20 lakh, which exempts many small traders and service providers. Let us look at this table below:
Composition scheme for small businesses
Under GST, small businesses (with a turnover of Rs.20 to 75 lakh) can benefit as it gives an option to lower taxes by utilising the Composition scheme. This move has brought down the tax and compliance burden on many small businesses.
Increased costs due to software purchase
Businesses have to track GST updates regularly. They must ensure that their accounting or ERP software gets updated in real time for GST legal and portal updates. Else, they can go for a GST compliance solution to ensure continuous compliance. But both the options involve money to be invested and needs time commitment for training employees so that there is efficient utilisation of the new GST software. Clear has a ready-to-use, enterprise-grade GST solution- ClearGST software.Ensure complian...
Not being GST-compliant can attract penalties
Many small businesses in India are adapting GST changes with every passing month. When the law was first introduced, they had learn to issue GST-complaint invoices, be compliant with digital record-keeping, and of course, file timely returns. This means that the GST-complaint invoice issued should have had mandatory details such as GSTIN, place of supply, HSN codes, and others. These same invoices can be easily imported through various options for accurate return filing through the ClearGSTpl...
GST brought about a rise in operational costs
GST changed the way taxes are paid and returns are filed. Businesses needed to employ tax professionals who had expertise to stay GST-complaint. This gradually increased costs for small businesses as they had to bear the additional cost of hiring experts. Also, businesses needed to train their employees in GST compliance, further increasing their overhead expenses. A plug-and-play, SaaS-based solution such as ClearGST allowed taxpayers to ensure compliance at reasonable cost.
Change is definitely never easy. The government is trying to smoothen the road to GST. It is important to take a leaf from global economies that have implemented GST before us, and who overcame the teething troubles to experience the advantages of having a unified tax system and easy input credits. GST continues to evolve well from the past years b...
Jan 13, 2024 · Table of Contents. GST, or Goods and Services Tax, is a comprehensive indirect tax system implemented in many countries worldwide. It is designed to streamline the taxation process by replacing multiple layers of taxes with a unified tax structure.
- Freelance Content Writer
May 28, 2024 · GSTIN is a 15-digit unique identifier assigned to GST registered persons, consisting of state code, PAN number, and check code. It is obtained through the GST registration process for free. GSTIN differs from GSTN, which is the IT system managing the GST portal.
Oct 9, 2024 · Popularly known as the GSTIN (Goods and Services Tax Identification Number), it’s a 15-digit code that can be used to track transactions, make payments, file GST returns, claim Input Tax Credit and maintain overall GST compliance.
