Voluntary GST Registration Application Guidelines
Every business that has no prerequisite to register under the Goods and Services Tax can voluntarily register themselves under the latest tax system. In India, multiple businesses choose Voluntary GST Registration to conquer the falls of the composition scheme. Any company whose turnover does not go beyond the 20-lakh limit can prefer Voluntary GST listing. Doing so will maintain the input tax credit and develop business opportunities.
To be GST compliant, the new GST rule requires both business dealers and units. A GST acquiescent individual or company is preferred over the non-compliant due to convenience and high profit.
Things to Consider for Voluntary GST Registration
How can one maximize business profitability by registering under the Voluntary GST Registration?
The registration for Voluntary GST filing helps in restricting the deficiency of the composite scheme. If you want to check your eligibility, then sellers and your buyers must be obedient. Under the rules mentioned in Input Tax Credit, only such conditions will avail you the right. Otherwise, it may become a load.
If the business satisfies any of the following condition, then it can apply for the Voluntary GST Registration:
- If a business person is casual taxable individuals
- Those individuals involved in the business of supplying non-taxable products and export some taxable goods
- Those involved in the business of taxable and non-taxable supplying of goods and services outside the state have a collective turnover of less than 20 lakh.
- Individuals who are required to pay tax under reverse charge
Is the Voluntary GST Registration Stable?
No, the voluntary filing is not permanent; and an applicant can cancel it after one year. Moreover, if an individual has equipped voluntary registration for his business, but does not start the business within six months from the initial registration date, the registration will be cancelled by the Government officials either on:
- The request of the applicant
- The appeal of legal heirs, in case of death of the applicant
What Are the Benefits of Voluntary GST Registration?
Since it gets trouble-free for the small and medium-sized enterprises to attract more customers, they choose voluntary filing. It makes inter-state trading quite straightforward for the business. Apart from it, the following are the benefits associated with the Voluntary GST Registration:
- Buyers get Input Tax Credit: The voluntary filing offers an opportunity to enhance the clients’ base as the buyers will now get a tax bill. Through the tax bill, the business can assert the Input Tax Credit.
- Enhances business scope: The dealers will be able to benefit from the Input Tax Credit on the made purchases. Therefore, voluntary filing enhances their profits.
- Promotes your business rating: Being compliant enhances your GST compliant rating that profits you in maintaining refunds. It makes getting loans error-free for you, basically.
- Hassle-free interstate deal: The Voluntary GST Registration opens multiple avenues to develop the business. It provides an opportunity for small and medium-sized businesses to sell their products online and reach out to more customers.
Are There Any Disadvantages of Voluntary GST Registration?
- Numerous registrations: In claiming the Input Tax Credit, one needs to file the returns from every state in the presence of a business unit. Due to the compulsion of separate GST registration in all the states where the business is operating, the compliance cost is let off.
- Several return filings: Depending on the annual turnover, a business requires to file around 37 returns in total. If the turnover is less than the set limit, an individual can file the returns quarterly.
- Tax Liabilities: The rules and regulations remain similar to that of the general GST registrant. An additional responsibility of collecting and depositing the tax will be on the entity. It not only affects the other non-compliant dealers but also enlarges the selling price.
- Penalties: If an individual fails to carry out any of the compliances, then they have to face severe penalties.
Where Can I Find Help for Voluntary GST Registration in India?
Want to know everything about voluntary registration under GST in India? You must contact professional experts of the 3E Accounting Firm for taxation services in India. We are highly skilled in answering your questions about incorporating and how to register your business in India.