Under Goods and Service Tax provisions, you may register for GST voluntarily without any statutory requirement to do so.
Every entity engaged in Goods and Services business is eligible for voluntary registration under GST irrespective of the defined threshold limit. Read this blog to know more about voluntary registration.
What is voluntary registration under GST?
Voluntary registration under Goods and Services Tax means self registration by a dealer. Enrollment open for those who’s threshold limit is below Rs 20 lakh (in case of service providers)/ Rs 40 lakh (in case of other businesses).
In simple language, it is applicable for those who are not within the parameters of registration and are not required to register in the GST. Also, all the applications of GST provisions will be applicable to a registered taxable person and will be the same applied to you.
For whom is voluntary registration available?
Like said earlier, every business entity is liable to enroll for voluntary registration under GST. But, there’s criteria define the line of spectrum of GST registration:
- Having turnover more than 20 lakhs/40 lakhs
- Selling inter-state
- Selling online
Here, voluntary registration is available for small businesses with turnover less than Rs 20 lakh.
Certain benefits of voluntary registration under GST:
- Provide input tax credit to customers
- Take input credit
- Make inter-state sales without many restrictions
- Be compliant and have good rating
- Better standing and growth
But, here the question arises...
Is a voluntary registration permanent?
Voluntary registration is permanent till surrendered by the businessman. Entities may wish to continue the GST registration even its turnover falls below the threshold limit.
If you want to cancel the GST registration, it can be done only after one year of completion of business period i.e. financial period.
Should you opt for voluntary registration?
Here comes the real-question should you enroll for voluntary registration.
Before opting you must consider the following
- Who are your sellers?
- Who are your buyers?
- How much resources do you have?
Tips:
- If your end-buyers are unregistered it may be beneficial to not to register.
- You have a plan for further business expansion than it’s fair better to consider GST composition schemes because of lesser taxes to be paid and lesser compliances to be maintained.
In the end, small businesses must do their math around the cost-benefit of voluntary registration before thinking opt GST Registration service provider.
