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If there is one thing that businesses need to be aware of, it is taxation.
All businesses come under the ambit of tax laws, in every single country.
And this is true in the case of India, as much as anywhere else.
For a very long time, taxation in India involved a variety of different taxes, both at the central and state level.
This was however changed in recent times, as the government started to streamline the conduct of business activities in the state.
One of the steps it took in this direction was the introduction of GST or Goods and Services Tax while repealing every other tax in the process. This was seen as a way to efficiently manage the tax system, while at the same time making it easier for businesses to conduct their daily with as few hassles as possible.
In simple words, the logic behind the move was to eliminate all existing taxes and replace them with one single taxation system, which applies to the whole country. To put it differently, one would have to go for a GST registration in Delhi as well as any other part of India, for the system is uniform across the country.
There are currently two different GST in India, namely SGST or State GST and CGST or Central GST. SGST refers to the taxes levied by the state government, while CGST refers to that levied by the center.
When it comes to the actual GST number in Delhi or some other place, there are several questions that remain, particularly with regard to the ‘why’ aspect of it.
In simple words, why is one required to register themselves for GST? The questions are very much valid and deserve appropriate answers. The most important of them all is given below:
1. It Is a Legal Requirement
While this is not necessarily the case for all businesses, the fact is that the GST system is mandatory for just about all business activities, whether those involved in the provision of goods or services.
This is particularly true in the case of businesses that have a turnover of 20 lakhs per annum or more.
And the businesses that do not comply with the current GST rules may be subject to penalties in accordance with the law.
Simply put, to get a GST registration in Delhi or anywhere else for that matter in India, is required by law for a lot of businesses.
2. It Helps To Reduce Tax Burdens
Another important advantage of getting a GST number in Delhi or any other Indian state is the fact that it helps in the reduction of tax burdens.
The way that it works is because of the way it works. Under previous regimes, the taxes would be levied at every level of the goods or service creation process. In the case of GST however, this isn’t exactly how things would work. On the contrary,
3. It Helps In the Acquisition of New Clients
This is not necessarily true all the time. But there are several instances where it works out.
For example, in the case of businesses where a GSTIN is used for any transactions, clients are usually far more willing to engage with businesses that have the GSTIN in comparison to those which don’t.
So while this is not always going to be the case, it certainly is in many.
4. It Helps Speed up the Growth of Businesses and Consequently the Economy
The reason the GST regime was brought in was that the previous tax code was extremely confusing and complex, making it rather difficult for businesses to run smoothly.
Introducing the GST regime helped in making the taxation process a lot easier for businesses to function, which in turn has a beneficial effect on the economic development of the country.
4. It Helps In The Development of the Country
This might be one of the reasons that you probably didn’t expect it here.
But the fact is that the taxes rose through GST, whether at the state or local levels, are in fact used for the development of the country.
Whether it is the upliftment of the poor, creation of infrastructure or national defense, everything requires money in order to function smoothly. The money for the same in turn is raised with the help of various taxes, one of which happens to be through GST, whether it is through SGST (State GST) or CGST (Central GST).
There are indeed many more important aspects of the GST that can be covered here as well. The above is to give you a rough idea about the role it plays in society and nothing more.
To sum it all up, the details and information given above should help to make the process of understanding GST a lot easier.
While there are certainly other things to be considered, these are some of the most important ones.