This article is to help businesses to understand All the wrong reasons to take GST Registration in India. As a consultant, daily we come across small businesses, general stores, retails store business who have either obtained GST Registration for wrong reasons or misconceptions or who is wanting to take GST registration for those wrong reasons.
Compulsory GST Registration requirement refer article >> https://www.taxledgeradvisor.com/gst-registration/
- Biggest misconception of businesses is GST registration is compulsory if you do inter state purchases. Please note : GST Registration is compulsory if you make inter state supply. No need to obtain GST Registration if no inter state supply.
- Another misconception of businesses when they take GST Registration to take benefit of input tax credit. Please note : If registration is obtained you will be able to set off input tax credit with your output tax liability which has ultimately made your goods or services expensive for end consumers. On the other hand if you do take benefit of input tax credit you, the GST amount will become part of your purchase cost and you will price your goods or services accordingly.
- Small Businesses who supply only goods and not doing any inter state supply they obtain GST registration if turnover exceeds INR 20 Lacs. But government by introducing Notification No. 10/2019 dated 07 Mar, 2019 gave a special benefit to persons who is exclusively involved in supply of goods and whose aggregate turnover does not exceed INR 40 Lakhs. Also, the benefit is available only to person who are not compulsorily required to obtain registration under Section 24 or they are not supplier of pan masala, Ice cream and other edible ice, whether or not containing cocoa or All goods, i.e., Tobacco and manufactured tobacco substitutes.
- Another misconception of businesses is GST Registration is compulsory for Partnership firms, Companies, LLP or any other person other than Proprietorship. Please note : GST Registration requirement is checked only by looking at turnover and no other factor to be taken into consideration. Also refer to list of person who are compulsorily required to obtain GST Registration >> https://www.taxledgeradvisor.com/gst-registration/#Compulsory_GST_Registration
GST Registration obtained for any of the above reasons
Please refer to detail article for GST Cancellation or reach out to us >> https://www.taxledgeradvisor.com/gst-cancellation/
Need Expert Assistance for understanding All the wrong reasons to take GST Registration in India or if you have obtained GST Registration and now need support to cancel you GST registration or if you want to understand GST Registration requirement for your business
For expert assistance, All the wrong reasons to take GST Registration or if you have obtained GST Registration and now need support to cancel you GST registration or if you want to understand GST Registration requirement for your business, reach our professionals at Tax Ledger Advisor
Do refer to other great articles with related keywords from following website:
https://www.indiafilings.com/learn/gst-registration-issues/
https://cleartax.in/s/benefits-of-gst-advantages-disadvantages
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