Hey there, if you’re confused about GST laws and the various effects GST on your business, we can help. In this article, you’ll learn if it is mandatory to get yourself a GST registration in all states of India. Well even let you in on the easy ways to obtain a GST number.
GST is a beautiful subject to start with. Ever since the inception of business culture, the tax has been part of it. Even before business, tax laws were in place to charge the ones who earned a lot. This tax money was charged to be used by the government on the development of the nation. The tax was also collected to improve the service offered to the citizens of India.
But times have changed and so have tax laws. Getting a proper GST number is very important if you want to reap the benefits of GST tax laws.
Explaining GST for the common man
Goods and Services Tax is an indirect tax law for the entire country. It was brought into action on 1 st July 2017 to subsume all the various tax laws in the country. These tax laws go on as the following list per se.
Central taxes subsumed under GST
- Central Excise duty.
- Duties of Excise (Medicinal and Toilet Preparations).
- Additional Duties of Excise (Goods of Special Importance).
- Additional Duties of Excise (Textiles and Textile Products).
- Special Additional Duty of Customs (SAD).
- Service tax.
Certain state taxes will be subsumed under Goods and Services Tax model.they are listed in bullet points below
- State VAT.
- Central Sales Tax.
- Luxury Tax.
- Entry Tax (all forms).
- Entertainment and Amusement Tax(except when levied by the local bodies).
- Taxes on advertisements.
- Purchase Tax.
Goods and Services Tax is a multi-stage, comprehensive tax law that relies on value addition. With a little amount of value-added to a product, GST is collected at that stage. This way Tax laws are more transparent.
With a better and understandable Tax law, cascading of various tax laws doesn’t happen anymore. Confusion is hard to happen among taxpayers anymore.
Now answering the question you’re here for
Is it mandatory to have GST Registration in each state, for a company that works in different states?
The short answer to this question would be, yes!. The long answer is also quite simple.
If you have a business that operates in multiple states, then you need a separate GST registration in each state. This implies that you get a unique GST number for every single state you operate in.
For simple reasons GST is a destination-based tax and you need have a separate GST number at the sale/purchase location of that particular state. This way an invoice can be raised following the GST laws of that state. With the help of this invoice, GST tax amount can be passed on to that particular state.
What happens when I don’t own a GST number for every different state my Business operates in ??
If the purchaser does not have a unique GST number about that state, that particular business operated in hat state will lose valuable input tax credit.
CGST tax amount credit cannot be vailed by them, as they do not own a GST number of that state.
From section 19 of GST law,” every person who is liable to take a registration will have to get registered separately for each of the states where he has a business operation.”
He has to own a unique GST number wether the business operation is small or large. This way you can avail the input tax credit.
Condition for Compulsory Registration of your Business under GST
There is a certain threshold limit of 20 lakhs if you need to register for GST. In simp,e terms, when your business has a turnover greater than 20 lakhs, then you need to register for GST and avail your very own unique GST number.
But if you’re a business is involved in the interstate supply, then you are required to compulsorily register under GST. This becomes irrespective of the threshold limit.
What is the easiest way to obtain a GST Registration?
Virtual Office Spaces: the best answer
If your business has a physical office space with all the criteria fulfilled for GST registration, well ad good, but when you don’t have a space to register for GST. You can always use the alternative options.
The cheapest and easiest option is to get a virtual office space by a virtual office provider. These spaces can be rented at low costs for GST as well as business registration.
You can use also use these paces to give your business a professional outlook in that state.
How can InstaSpaces provide for your Virtual Office needs ??
Instaspaces provide virtual offices for GST as well as business registration in all the 29 states of India. These locations can be used for your professional billing address for claiming Input Tax Credit (ITC).
Instaspaces offer great customer service along with added features at an extra cost. The following are the features provided by InstaSpaces per se
- Mail handling and delivery
- Conference rooms with excellent av support on demand
- A receptionist to handle all your business queries
The good people of InstaSpaces offer excellent money return policy when you find any discrepancy with any one of their virtual office spaces. They return 100% of the money along with any of the tax amount you might have paid.
We hope you found this article informative and helpful. If you have any more doubts or queries, feel free to text one of our Instabuddies on site.
Happy office hunting…0 109