GST (Goods and Services Tax) registration is a process by which businesses obtain a unique GST number from the government of India. The GST number is necessary for businesses to be able to legally collect and remit GST on their taxable supplies. To obtain a GST number, a business needs to apply for GST registration. Learn about the process and time it takes to get a GST Number in India.
How Much Time Does It Take To Get a GST Number?
Getting a Goods and Services Tax (GST) number in India typically takes 15-20 working days from the date of submission of the GST Registration application.
However, the exact time taken can vary depending on several factors such as the completeness of the application, the time taken to resolve any issues that arise during the verification process, and the workload of the concerned authority.
Process to Obtain GST Number through GST Registration in India
Obtaining a Provisional ID: The first step is to obtain a Provisional ID by registering on the GST portal using basic details such as the business name, PAN number, and email address.
Filling out the GST registration form: The next step is to fill out the GST registration form, providing details such as the business name, address, nature of business, bank details, etc.
Uploading supporting documents: Businesses are required to upload supporting documents such as PAN card, address proof, bank statement, etc., to complete the GST registration process.
Verification by the concerned authorities: Once the GST registration form is submitted, it is reviewed and verified by the concerned authorities.
Once the verification process is completed, the business will receive its GST number and will be able to legally collect and remit GST on its taxable supplies.
It’s important to note that businesses are required to obtain GST registration if their annual taxable turnover exceeds 20 lakhs (10 lakhs for businesses located in the northeastern and hill states).
You should apply for the GST number as soon as you start your business operations, as you will be required to mention the GST number on all invoices and other business-related documents.
Benefits of GST Number in India
(Goods and Services Tax) the number is a unique identifier for businesses registered under the GST system in India. There are several benefits of having a GST number, which includes:
1: – Legal compliance: Having a GST number is mandatory for businesses that provide goods and services and have an annual turnover above the specified limit. Obtaining a GST number ensures that the business is compliant with the law and can operate without any legal hassle.
2: – Increased credibility: A GST number serves as proof of the legitimacy of a business and enhances its credibility among customers and suppliers.
3: – Improved record-keeping: GST requires businesses to maintain detailed records of all transactions, which helps in keeping track of finances and reduces the chances of errors
4: – Input tax credit: GST allows businesses to claim the input tax credit on the taxes paid on inputs (raw materials, services, etc.) that are used in the course of their business. This helps in reducing the overall tax burden on the business.
5: – Simplified tax structure: GST has replaced multiple indirect taxes with a single tax, making the tax structure more simplified and easier to understand.
6: – Reduced tax evasion: GST makes it difficult for businesses to evade taxes as it follows a seamless credit system, making it easier for the government to track tax evasion.
Overall, having a GST number helps businesses in many ways, from ensuring legal compliance to improving their credibility and financial record-keeping to reducing the tax burden and simplifying the tax structure.
Having a GST number is important as it helps you to conduct your business transactions smoothly, comply with legal requirements, claim input tax credits, and avoid any penalties for non-compliance.
In short, if your business is eligible for GST registration, it is necessary to obtain a GST number.
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