GST or Goods and Service Tax is an indirect tax in India. It is applicable on the supply of products and providing of services. After the introduction of GST, it essentially provides of ‘One nation one tax’. France was the first country to incorporate the GST regime across the globe. Coming to India, the aforesaid GST regime came into effect from 1 July 2017 by One Hundred and First Amendment of the Constitution of India enacted by the government of India that will affect the country’s 2.4 trillion-dollar economy.
1. What is GST Registration?
There are many types of business and proprietorship firm is one of the popular forms of Business Structure. Proprietorship or sole proprietorship is owned, controlled and managed by one single person and utilized by small businesses operating in the unorganized sectors. It is mostly considered by small merchants and traders as a business structure.
Grocery shops are one of the good examples of a Proprietorship firm as it requires Low cost in setting up and minimal compliances that attract small level investors. It best suits those, who target to put up businesses that are mostly small or unorganized.
2. What is the need of GST Registration?
- Interstate trading is not possible without GST number. It is possible only after registering the business under GST.
- You need to acquire a GSTIN if you want to register yourself with big brands like Amazon, Flipkart, Paytm on ecommerce platform or through your own website.
- In case of having GST Number, you can avail Input Tax Credit while filing for GST return which eliminates the cascading effect.
- It is a mandate issued by Govt. of India who basically try to save tax and keep oneself from the cascading effect of tax
- GST registration is mandatory when the threashold limit of INR 20 lakhs crosses in a year in case of Service sector and INR 40 lakhs in case of manufacturing sector.