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What are Benefits of GST Registration?

The registration of supplier implies obtaining a Unique Identification Code from the GST authorities. It is a unique 15 digit Goods and Services Tax Identification number. The registration under GST laws confers the following advantages:

1.Legal Recognition : The supplier gets nation-wise legal recognition as a supplier of goods and/or services in India.

2.Authorization for Collection of Tax : The registered supplier is legally authorized to collect tax from his customers/clients in respect of goods or services supplied. He can also pass on the credit of taxes paid to purchaser of goods/ recipients of services.

3. Benefit of ITC : The registered supplier is entitled to claim the input tax credit paid on Inputs, Inputs Services and Capital Goods. The above can be utilized for payment of taxes due on supplier of goods or services provided by him.

4.Seamless Flow of Funds: The registration allows the seamless credit of input tax credit from the manufacturer/importer to the last supplier in the chain. It also facilitates the seamless flow of funds from the center and states from where the goods/services are supplied and tax paid to cross utilization of IGST credit and then to the consuming state of goods and services.

5.Accounting for Taxes: There are running electronic ledgers maintained on the dashboard of a taxpayer by GSTN. These would be updated in real time on an activity in connection with these ledgers by the taxpayer. The Ledgers are electronic Cash Ledger, Electronic Credit Ledger & Electronic Liability Ledger. So there is an automatic proper accounting of taxes paid on input goods and/or services.

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