Question

Assignment: The importance of GST registration.

Answer 1

Answer) GST is a 'goods and service' tax and is required to be levied at all steps right from the manufacturing stage to the final consumption stage. This tax is to be borne by the ultimate buyer. In any tax administration, registration is the necessary element for the identification of taxpayers. Without GST registration, a person can neither accumulate and collect tax from his customers nor demand any input tax credit.GST combined several tax lines such as Sales Tax, Luxury TaxCentral Excise, Service Tax, Special Additional Duty of Customs, etc. into one integrated tax. This way, it leads to blocking multiple tax layers.
GST registration holds importance because of the various advantages it offers. These advantages are listed as follows-

• Registration helps one to get recognized as a legal supplier of goods or services.
• Precise accounting of taxes paid on the input goods or services can be helpful for the settlement of GST.
• GST registration authorizes one to legally collect tax from his purchasers and pass on the credit of the taxes managed on the goods or services provided to customers.
• It also makes one eligible to claim certain perks and privileges under the GST laws.