GST Registration In Panaji Goa

i. Elimination of Cascading Taxes
GST has replaced the previous taxation system, removing the cascading effect where multiple taxes applied simultaneously without any offset. This change has lowered business costs significantly.

ii. Reduced Costs for Goods and Services
With the introduction of Input Tax Credit (ITC) under GST, manufacturers can claim tax credits for taxes paid on raw materials, preventing these costs from being passed on to consumers. As a result, there has been a noticeable decrease in the prices of goods and services.

iii. Higher Threshold for Registration
In contrast to the previous VAT, CST, and Excise Duty systems, which had a low threshold of Rs. 5 lakhs for mandatory registration, GST sets a higher threshold of Rs. 40 lakhs, Rs. 20 lakhs, and Rs. 10 lakhs for special category states. This significant increase exempts many small traders and service providers.

iv. Reduced Compliance Requirements
GST operates under the “One Nation One Tax” principle, allowing businesses to avoid multiple registrations and varying compliance procedures. Taxable persons are required to file only unified returns periodically, and those with an annual turnover of up to Rs. 2 crores are exempt from GST audits, streamlining the compliance process.

v. Simplified and Convenient Processes
The government has launched an online GST portal that simplifies the entire process from registration to compliance management. This user-friendly, secure platform allows startups to complete necessary procedures efficiently and focus more on their core business activities.

vi. Standardized Tax Rates
GST has established four uniform tax rates—5%, 12%, 18%, and 28%—for all goods and services across India. This simplification eliminates confusion and saves time for businesses.

vii. Reduced Burden Under the Composition Scheme
Small businesses with a turnover of up to Rs. 1 crore can register as composition dealers, allowing them to pay taxes at a fixed rate regardless of their turnover while facing minimal compliance requirements. This initiative significantly eases the compliance burden on smaller enterprises.

viii. Input Tax Credit Mechanism
The Input Tax Credit (ITC) allows businesses to claim credit for the GST paid on goods and services used for business purposes, thereby reducing their overall tax liability. This mechanism is a crucial feature of GST and is often regarded as its “backbone.”