Being a businessman, you should know about GST. However, whether you are a businessman or not, if you do not know about GST then you should continue reading this article. GST stands for goods and services tax that provides the provisions for the levy of indirect tax on various goods and services. Such goods and services may include a packet of chips, a pizza, an airplane ticket, a food bill at a restaurant, etc.
GST provisions may sound difficult to you but are very easily understandable. With the help of GST tax can be charged on all the value-added activities except the activities that are exempted from the GST act. GST became applicable from 1st July of 2017. If you are already a registered person under the GST act you must be enjoying the benefits of having GST no. However, if you are not registered under this act then you should know about the advantages that you will have if you get your business registered under the GST act. If you want a GST number for your business in Bangalore then you should apply for a GST number application in Bangalore.
The following are the advantages of registering under the GST act:
- The benefit of limited tax payments: there are different tax rates under this act depending upon the goods and services you produce. You enjoy the benefit of limited tax payments by registering under this act. Let say you are a GST trader, in such a case, you will have to pay tax at 1% of the value of goods. If you are running a restaurant then you won’t have to pay tax at the rate of more than 5%. In case of any other service provider the tax rate is 6%.
- Its procedures are very simple: Procedures to apply for a GST number are very easy. You can even apply for it online by yourself. However, if you want a GST number in Bangalore then you can also go to a GST registration consultant in Bangalore. Once you are registered under this act, you won’t have to get registered under other acts like excise act, custom tax act, VAT, etc. Unless any special provision requires you to get registered under other acts.
- Input tax credit (ITC): after registering under the GST Act, you shall be able to claim the input tax credit for the purchases that you have made in the respect of your business. After claiming the ITC, you will be able to adjust that ITC against your output tax liabilities levied on your sales. In such a way, there shall not be any double taxation effect. However, in the opposite case, if you are not registered under this act then you will not be able to claim ITC against your business purchases but also you will be liable to pay tax on your sales.
These are the plus points of having a GST number for your business. However, the benefits are not limited to the above-mentioned points but there are more benefits. Such as improved logistics, online companies are getting better treatment, regulation of unorganized sectors, etc.
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