Basically, after the registration of any business entity, the tax authority provides the Unique Identification number which includes the Permanent Account Number (PAN) and State-specific number. Basically. Unique Identification Number is termed as the GST Identification Number (GSTIN) which is a fifteen-digit number. The first two digits of the GST Identification Number (GSTIN) represent the State code and the next ten digits represent the Permanent Account Number (PAN) of the taxpayer. After that, the thirteenth digit of the Unique Identification Number denotes the number of registration within the state and the fourteenth digit is Z by default and the fifteenth digit is for check code.
However, GST is divided into four categories like CGST, SGST, UTGST, and IGST but a person need not register himself for all categories, there is a single registration for all the taxes.
What is the benefit of Registration of GST?
The GST is an indirect tax whose main objective is to abolish several other indirect taxes in India. After the abolition of many indirect taxes, the government came up with one platform where a person could pay tax.
There is the following benefit of Registration Registration of GST, which are as follows:
The scrapping of cascading effect: After the enactment of GST in India, the cascading effect has been eliminated which used to cause double taxation on Goods. After the scrapping of the cascading effect, the tax liability has been reduced on the business entity.
Lesser Compliance: Before the enactment of GST in India, there were many indirect taxes used to exist such as the Service tax, VAT, Excise, etc. So after the enactment of GST, all the indirect tax combined into the single tax regime with which the number of filing has decreased.
Easy Application Procedure: A person can register himself online and he can file the GST through the GST portal which saves the time of the person.
Recognition: After the registration of GST, a person becomes legally recognized as a supplier of goods and services.
Regulation of Input Tax Credit: After the registration, a person can claim Input Tax Credit of taxes paid and can utilize the same for payment of taxes due to supply of goods and services which ensure transparency in the tax collection system.
Amendment of GST Registration
After the allotment of the Unique Identification Number, if a registered person wants to change the information given at the time of registration then in such a situation a registered person shall have to inform the proper office within fifteen days of receiving the unique identification number.
After the submission of changes required, it depends upon the discretion of the proper officer that they approve it or reject it. However, the proper officer shall not reject the application for registration without giving the person an opportunity of being heard
Cancellation of Registration (Section 29)
Section 29 of CGST talks about the cancellation of Registration. After the death of the registered person, the Proper officer himself or an application filed by the registered person, or his legal heirs cancel the registration. Cancelation of registration depends upon the discretion of the proper officer whether he wants to cancel it from a prospective or retrospective date. A registered person whose registration is cancelled will have to debit the electronic cash ledger or electronic credit ledger, by an amount equal to Input Tax Credit (ITC) so availed or the output tax liability, whichever is higher.
After coming to GST in India many indirect taxes have come under one umbrella which simplifies the tax process in India. Digitalization plays an important role in paying the tax via an easy mechanism online. GST reduces the multiplicity of taxes. Nowadays a person himself can check the criteria for registration and they can register themselves online. Registration of GST is a very easy process where there is no need to hire tax expertise. From time to time the government also issues the notification regarding the person liable for registration or the threshold limit for the registration of GST.
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