GST is a unified tax structure, preferred over the previous state-levied and federal taxes. As mandated by the Government, all enterprises with an annual turnover above Rs.20 lakh must register their businesses under the GST regime.
Non-compliant businesses, on the other hand, are not considered legitimate and are penalized. Moreover, higher authorities can confiscate their goods which might ultimately lead to a complete shutdown of the business.
GST-verified businesses are considered credible. Furthermore, it helps business professionals dodge multiple levels of paying tax, reducing the erstwhile tax payment complication and improving the chance of getting approval for a loan option.
Know why you need to get your business GST verified
Here are the reasons why getting one’s business verified with GST is necessary:
-
- Enhances business credibility: A company or a firm that is GST verified and holds all the legal documents are considered trustworthy, helping them reach out to suppliers and vendors and better the business relationship. Moreover, a business entity is considered serious in its approach. Companies or firms can ensure business presence or prominence in the market by registering it with GST.
- Claiming tax credits: Business professionals will be able to claim the input tax credit. Moreover, suppliers will prefer a business that is compliant with the GST verification over a business unregistered with GST. Furthermore, it eliminates the need for multiple tax effects and brings more transparency to the taxation system.
- Dodge unnecessary inconvenience: GST in India runs based on a chain system. Everyone, from the manufacturer, supplier, wholesaler, retailer and consumer, must be GST compliant. In case a business function is tracked and found to be not GST verified, it can be put to hold, hindering the smooth operation of the business.
-
- Legal protection: On registering the business with GST, individuals will be able to protect their business pursuits from legal actions taken by other firms. It bestows business professionals with legal strength, helping them defend themselves in a court of law. In this regard, business professionals should know how to register for GST online and reap multiple benefits.
- Avoid penalty and ultimate shutdown: Under section 122 of the CGST Act, higher authorities have the right to penalise a hefty amount from a taxable business, creating a negative impression resulting in more of such checks in the future. Moreover, business goods can be confiscated, which might lead to the ultimate shutdown of the business.
- Cross-checking business details: Once a business is GST verified, all information related to the business is available in the dedicated GST portal. One can easily check a transaction or GST registration (ARN status) from the GST official portal.
Furthermore, to get clarity on the payable GST and avoid late payment, individuals can use the GST calculator in advance.
- Get easy access to loans: As GST verification proves one company’s credibility and authenticity, it clears the way for business professions to apply for credit options. Hence, before applying for a finance option like a business loan, individuals must ensure that the business is verified and carries the GST invoice.
However, to receive instant loan approval with minimal documentation, individuals must know the important checklist before applying for a business loan.
Moreover, business professionals can check the pre-approved offers extended by leading financial institutions like Bajaj Finserv. These offers are available on financial products like business loans, personal loans, credit cards, etc. Willing individuals can check their pre-approved offers by submitting their names and contact details.
To sum up, one of the vital requisites of a business is to get GST verified, ensuring the company’s smooth and efficient functioning. Moreover, it gives the business entity identity and marks it legitimate.
