Considered as one of the biggest tax reforms, the introduction and eventual implementation of the Goods and Services Tax in July 2017 has indeed been a game-changer. Promoted under the motto “One Nation, One Tax”, it aims to simplify the levying of indirect taxes imposed on goods and services by subsuming those taxes into one.
If you are a business owner looking to expand and grow your business, then registering for GST is a must. Its Just Tax provides several services on GST matters, including GST registration to help businesses get on the right path of growth.
Apart from being legally necessary for certain kinds of businesses, it can bring in great benefits too. In this article, we are looking at 5 ways your business will benefit when under GST registration with Its Just Tax.
#1- Erases the cascading effect of taxes
Under the non-GST regime, one had to pay for several taxes that are incurred during the several stages in the chain of supply. This would often lead to businesses paying what can be called ‘tax on tax’. Meaning, one would pay tax on a product or service that had already been taxed at an earlier process.
Once a business registers for GST, however, many of these taxes at multiple stages are eliminated and you may have to pay only one, multi-stage, all-inclusive tax, the GST.
#2 – Digitizes the registration and filing process
Once you have registered your business under GST, you can easily file your GST returns online too. Especially for someone who is just starting out, understanding and paying dozens of taxes could potentially become a roadblock to going ahead with their business. With GST registration, however, the matter is simplified as one can file for their taxes with a simple and easy online procedure.
#3 – Fewer compliances for businesses
When you register your business under GST, filing tax returns becomes easier as there are fewer taxes and so, fewer compliances to deal with. Earlier, there were the VAT, service tax, central excise duty, purchase tax, luxury tax – each with its own bother of filing. Now, since the taxes have reduced, your regular tax returns are easier to file. And thanks to Its Just Tax, even that gets done quickly with not much hassle or delay.
Still figuring out how to get your business GST compliant? Well, we are here to help you. With itsjusttax.com, you can avail of free advice on GST matters and get your business registered under GST at affordable rates. Our expert representatives will be at your service whenever you require any assistance.
#4 – Encourages a better logistics system
GST registration can lead to a better and more efficient system of logistics for your business. Let us explain how. Previously, if you conducted inter-state business, you had to pay several taxes, the primary one of which was the CST or the Central Sales tax. Many businesses or their logistics partners would then establish warehouses in several states to avoid inter-state movement. This would affect their business potential, too. Now, since GST reduces the taxes and so, the overall predicament of handling inter-state movement is reduced too. This leads to a smoother and more economical system of logistics where the warehouses can be established only at key locations.
#5- Solidifies your business’ reputation
Earning a GST registration can immensely increase your standing in the industry. With GST, you are acknowledged as a legally certified provider of goods and services – which boosts your overall goodwill and competitiveness in the sector.
Do bear in mind that the GST compliances you have to handle may differ according to the location, type of business, annual turnover, and many other factors. It is advisable to contact a professional before going ahead with any financial decisions.
We hope our attempt to explain the benefits of GST registration and simplify it even further has been successful. For more detailed answers to your queries, reach out to us through our website. Our experts are here to support and guide you throughout your GST journey.