The GST is an indirect tax that replaced all prior indirect taxes when implemented in India in 2017. With its introduction, the Indian economy saw a significant shift in the public’s perception of money and taxes. Business owners in Chennai may profit greatly from registering under the GST in several ways.
One of the largest business centres in India is Chennai, which offers a wide range of employment options to those with various professional backgrounds. It’s a vibrant city with excellent talent pools and infrastructure, making it one of the greatest cities in India to pursue a profession.
Chennai is among the top cities to locate new employees because of its high literacy rate. One of the key factors attracting companies to Chennai is the existence of a special economic zone (sez). Trade has expanded, exports of products and services are being encouraged, and excellent job creation is occurring.
The advantages of GST registration for Chennai company owners
The company owner must weigh several advantages when choosing a virtual office for GST registration in Chennai. The company owned by the business owner will undoubtedly gain a lot and establish positive credit. Below, we may examine a few of the advantages:
1. Easy to launch a company
A person would need to get VAT registration from every state if their firm operated in more than one (before GST). The complexity increased significantly since each regulation would have its own set of rules and regulations. Multiple VAT registrations were eliminated when the GST was implemented since a single GST registration covered the whole nation.
2. Aids in attracting additional clients
The ability to reach a bigger consumer base is an additional benefit of registering for GST. Being registered for GST may provide you with new opportunities with these clients because many firms and governmental entities are mandated to conduct business only with qualified suppliers. Additionally, since registered firms can offer a higher degree of trust that they are operating legally and in compliance with tax regulations, some clients may prefer doing business with them. This has the potential to increase a company’s sales and clientele.
3. Boosts business credibility
If your firm is registered under GST, you have the authority to charge GST to your consumers. Your reputation may be enhanced if other businesses are more inclined to take you properly if you have a GST registration. More partnerships and possibilities will follow from this.
4. Common national market
The heavy tax influence of their state may have resulted in improper tax treatment of businesses in the past. This gave them the authority to impose high indirect taxes on their population, including central sales tax, service tax, or VAT. The state government increased its investment through incentives as well. This meant that according to the state’s tax laws, different goods and services would cost different amounts in different states.
In the end, this caused the economy to suffer significantly. The country currently has a single tax on all products and services due to the implementation of the Goods and Services Tax (GST). Additionally, this assisted in removing trade restrictions like checkpoints and entrance fees. The GST council has also been proposed to guarantee that each state has an equal voice in the nation’s tax policy.
5. Transparency
The introduction of GST was a great tool to lessen national corruption. Many business owners may lose money due to unintentional scams during the tax process, which a lack of openness can cause. Among the modifications implemented under the GST program to lessen corruption are the following:
- There is now correct matching and documentation at the invoice level
- Credits are properly reconciled
- E-waybills are being issued
- The movement of products is now being thoroughly documented
- The GST registrations and PAN have now synchronized
- There is now a GST commissioner for investigations.
6. Decrease in the number of returns
There were many returns and compliance requirements for each tax before the implementation of GST. For instance, monthly excise was required, quarterly service tax was due for partnerships and sole proprietorships, and monthly tax was due for corporations. Each state had its regulations for value-added taxation.
For companies, paying taxes this way was challenging since they needed to file all their tax returns correctly and manage their finances. In contrast to the previous system, which required several returns for every separate tax, the GST simply requires filing a single field. The process of paying taxes has been simpler since all of those levies were absorbed.
7. Improved logistics efficiency
One of the most crucial facets of the economy is logistics, particularly for companies engaged in trade. India is a very populous country with a growing demand that must be met. Thus, our nation must have effective logistics. Simply defined, logistics is the process of moving things from the place of origin or supply to the final consumer. Superior logistical efficiency would guarantee that clients receive their items in perfect condition at the scheduled time.
The company’s prosperity might be in disarray if this is not done correctly. Trade companies had warehouses in several states before the implementation of the GST regime to evade paying state entrance taxes and the central sales tax (CST), which is applied to items transferred across states.
How to Register GST in Chennai?
- Consultation for GST registration: The initial stage of GST registration involves gathering customer inputs to ensure that the right GST application is filed in the right category.
- Documentation: Utility bills, rental agreements, notices, and authorization letters are among the supporting papers that are examined and verified for quick and simple approval.
- Submitting a GST application: The top procedure will finish the submission of the GST registration application; for the client’s simplicity, we just utilize their email address and cellphone number for the OTP.
- The procedure for Aadhaar authentication: GST registration requires the completion of the Aadhar authentication procedure; if the process works, the registration application must be completed without requiring a physical inspection.
- Production of arn: Upon successful completion of the GST application, whether submitted with or without UID verification, an application reference number is issued to track its progress.
- Tracking the application for GST: Tracking of the GST registration application begins on the fourth working day following the acquisition of the ARN number. If the customer overlooks the department’s email, this will enable us to obtain a prompt update.
- GST approval: Upon clearing the online GST registration application, the certificate will be retrieved and emailed to the customer’s email address, together with the user ID and password.
- GST compliance advice: After finishing the GST registration procedure, the customer will receive information on appropriate GST returns, invoicing format, e-way bills, and record-keeping obligations under the GST Act.
Important facts to be aware of before applying for GST registration
- The GST site is the only place to submit all paperwork and information for GST registration applications, which are entirely online.
- GST registration is required for all retailers who engage in international sales of goods and services, carrying on business under the trademarked name of others, etc. Visiting the GST department is unnecessary as all processes are handled online. Applications are handled based on priority by the department, so there is no possibility of faster authorization by pushing in front of a queue. As a result, under these situations, the issue of the turnover threshold for GST registration is moot; if a company fits this description, it must register for GST.
- Regarding optional or voluntary GST registration, traders should weigh the advantages of GST registration against the extra tax burden on sales value. For enterprises doing business with other companies, optional registration is often preferable when a GST number is required to complete a transaction.
- The clearance of a GST registration without the officer’s examination requires Aadhaar verification; a GST registration can only be verified via Aadhaar e-KYC if the name on the PAN and the name on the Aadhaar card match. This service is only valid for one usage; if the opt validation is unsuccessful, the link will be cut off, and an arm will be created for processing via physical verification mode.
What is the estimated duration of time required for GST registration with Aadhar authentication?
Once all paperwork is completed, it requires one working day for us to send in the GST application online in Chennai. If the file has been verified using aadhaar e-kyc, it will be accepted within seven working days; if not, a query will appear and must be answered within seven working days. The officer will then review the response and decide whether to approve or reject it within the following seven working days.
Final Thoughts
In conclusion, as the world progresses toward digitalization, businesses of all sizes must accept the shift of GST registration. By registering under the GST, businesses can benefit from streamlined tax structures, increased market access, enhanced credibility, optimized financial advantages through input tax credits, and chances for collaboration. Thus, if you haven’t already, consider registering for GST with us to take advantage of these benefits immediately.
