Goods and Services Tax is beneficial in many ways, but it has seemingly brought a lot of confusion among business people and entrepreneurs. This confusion has arisen due to the lack of proper information about GST laws in the country.
In this article well look into the necessity of state-wise GST registration for a business. We will also drive into the basic functionality of Goods and Services Tax along with the best ways to acquire GST plans.
GST ( Goods and Services Tax ): what is all the fuss about??
Goods and Services Tax is a single indirect tax law that is levied upon value addition. GST was introduced into the Indian democratic system on 1 st July 2017. It was brought into effect to replace the various tax laws in the country. The various tax laws were now subsumed under a single multi-stage tax system for the entire country.
Tax laws before GST
Tax laws before GST was very confusing and a little complex. There were a lot of laws which could be collected both state-wise and national-wise. The various tax laws were central excise duty, and value-added taxes along with luxury tax, entry tax and purchase tax collected at state levels.
All of these tax models made it quite easy for businesses to evade or bypass the tax system.
Tax laws after GST
With the inclusion of GST within the country, it has become mandatory for a business to obtain taxes at each level. Without collecting GST your risk the idea of not getting Input Tax Credit. Without the input Tax Credit ( ITC ) your business can lose a lot of money.
GST didn’t just put defaulters into perspective, it also reduced the tax amount for many businesses by reducing the cascading of taxes. A business that usually paid a lot of money without proper knowledge can now pay a lesser amount of money.
If I am operating in more than one state, would I need to have a statewide registration?
Many businesses have more than one operating point. Even though most of their headquarters are located in a single point of contact, they may have multiple locations to ship out their products or offer services.
When you have a business located in multiple states, it is necessary to get a GST registration in every single state. You can register all these locations to get your very own unique GST number and avail your Input Tax Credit (ITC).
It is therefore compulsory to register your business for GST in every state to reap the benefits of GST tax laws.
What can I do if my present Office Space is not eligible for GST Registration in that state?
Some business even though operating in more than one state may not have active office spaces in all their locations. Some business locations may not be eligible for GST registration due to unavailability of certain documents.
In this case, you should find a new place to get a GST number and print your invoice according to the GST address of that place. This way you can get your Input Tax Credit and reap the benefits of GST.
What is the easy fix to this problem?
If you do not find it fruitful to rent another office space, you can always opt for virtual office space under GST registration for smooth registration. With virtual office space, you can get your hands on a professional address as well as additional services at an added cost.
Virtual office spaces can be rented for business as well as GST registration at very low costs and supreme benefits. With GST registration you can get your very own Unique GST number. With this number, you can get your Input Tax Credit ( ITC ).
You can also print invoices according to the GST laws of that state. This enables to provide better customer support as no customer wants a bill without GST, especially if they aren’t the end-user.
Who can provide the best Virtual Office Services in India?
We don’t mean to brag, but InstaSpaces can provide top-notch virtual office services in all the 29 states of India. They provide office spaces for business as well as GST registration.
By registering at one of our spaces, we offer you the following documents in hand
- A NOC certificate
- Proof of ownership
- A utility bill
All of these certificates have no sign of virtual office space in any of them and can be used to register your space for GST Number.
With an established clientele and varied locations all over India, you should maybe just try by giving query call at +91-888-270-2020.
If you have any more doubts, feel free to text our Instabuddies on site.
We hope this article was helpful and informative.
Happy office hunting…0 109