GST Registration Is It Compulsory For Udyam Registration
The Goods and Services Tax (GST) registration is an important part of Udyam registration. The GST registration for a business is essential for it to be able to operate as a legal entity and avail the benefits that are available to MSMEs. It also helps businesses track their taxes better and maintain compliance with the government regulations. In this blog post, we will discuss why GST registration is compulsory for Udyam registration, what the process involves, an overview of the benefits associated with GST registration, and some tips to help you get started.
Thus, if you are interested in obtaining Udyam Registration for your business, then it is important to understand the GST registration process and its importance. how it can help your business.
What is GST Registration?
GST registration is not compulsory for Udyam registration. However, we recommend that you register for GST if your business turnover is more than Rs. 20 lakhs in a financial year. GST registration will give you access to multiple benefits, including input tax credit, which can help reduce your overall tax liability.
What is Udyam Registration?
Udyam Registration is a self-registration system for micro, small and medium enterprises (MSMEs) and other units engaged in the business of manufacturing, processing or servicing. It was introduced by the Ministry of Micro, Small and Medium Enterprises (MSME) with an aim to streamline the process of starting a business in India and promote ease of doing business.
Under the Udyam Registration system, an MSME can register itself as either a manufacturer or a service provider. The registration process is simple and can be completed online on the ministry’s website. Once registered, the MSME will be given a unique Udyam registration number which can be used for availing various benefits and subsidies offered by the government.
The Udyam Registration system is voluntary in nature and helps businesses save time and money that would otherwise be spent on obtaining multiple registrations under different schemes. It also provides a single-window clearance for availing government benefits and subsidies.
Do I need to get GST Registration for my business?
If you’re starting a business in India, you may be wondering if you need to get GST registration for your business. The answer is that it depends on your business turnover. If your turnover is below Rs. 20 lakhs, then you are not required to register for GST. However, if your turnover is above Rs. 20 lakhs, you must register for GST.
How to get GST Registration?
The Goods and Services Tax (GST) is an indirect tax introduced in India on 1 July 2017. It subsumes multiple taxes into one and is levied on the supply of goods and services. The GST Council is responsible for providing the framework for how GST will work in India, including setting the rates of tax.
Businesses whose turnover exceeds Rs 20 lakhs (US$30,000) are required to register for GST. This threshold is higher for businesses in certain special category states, such as Sikkim and Meghalaya, where the threshold is Rs 10 lakhs (US$15,000). Registration can be done online through the GST portal.
Once registered, businesses will be assigned a 15-digit Goods and Services Taxpayer Identification Number (GSTIN). This must be quoted on all invoices issued by the business. Businesses will also be required to file periodic returns detailing their sales and purchases, and pay GST on any supplies made that are not exempt from the tax.
In conclusion, GST registration is an important part of Udyam Registration and any business that wants to apply for Udyam needs to register with the GST department. To make sure you are eligible to get the benefits of registering your udyam, it’s best that you take care of all the legal requirements before submitting your application. With a little bit of planning and research, getting a GST number should be relatively easy so don’t miss out on this great opportunity!
Registering for GST is beneficial for businesses as it helps them keep track of their taxes and maintain compliance with the government regulations. It also allows them to avail input tax credit which can help reduce their overall tax liability. The registration process is simple and can be completed online on the GST portal. We hope this article on GST registration has helped you understand. why it is compulsory for Udyam registration and how it can benefit your business.
We highly recommend that you register for GST as soon as your business turnover is above Rs. 20 lakhs in a financial year to ensure that you are able to avail the various benefits and subsidies available to MSMEs. Once registered, the GSTIN number will be used on all invoices issued by the business and periodic returns need to be filed with the government.