The Goods and Services Tax (GST) is a consumption-based tax imposed on goods and services. It applies at each stage of the supply chain, from manufacturing to final consumption by the end consumer. Registered dealers are entitled to claim input tax credits for taxes paid at preceding stages, allowing for offsetting of tax liabilities. Consequently, only the incremental cost incurred in the product is subject to taxation, with the ultimate burden borne by the final consumer. This system ensures fair taxation and minimizes cascading tax effects throughout the production and distribution process.

Registering under the Goods and Services Tax (GST) regime offers several advantages to businesses. Firstly, it grants legal recognition as a supplier of goods or services, enhancing credibility and facilitating participation in the formal economy. Additionally, GST registration helps mitigate the risk of double taxation, ensuring that taxes are levied only once on the supply chain. By availing input tax credits and adhering to regulatory requirements, businesses can streamline their operations, enhance competitiveness, and contribute to a more transparent and efficient tax system.

No, an individual cannot claim input tax credit until their business is officially registered under the Goods and Services Tax (GST) system. Only businesses with a valid GSTIN (GST Identification Number) are eligible to avail credit for GST paid on purchases or charge taxes on supplied goods or services. This requirement ensures that tax credits are claimed and utilized within the regulated framework, promoting compliance and transparency in the GST regime.

Yes, once a business obtains its registration certificate from the GST department, it is considered permanent unless it is voluntarily surrendered, cancelled, deferred, or withdrawn by the authorities. This registration certificate serves as conclusive evidence of the business’s compliance with GST regulations and its eligibility to engage in taxable transactions. As long as the business continues to meet its obligations and remains in compliance with GST laws, the registration certificate remains valid and in effect, providing legal recognition for the business’s operations under the GST regime.

Yes, GST registration can be cancelled either by the registered taxable person themselves or by their legal representative in the event of the person’s death. Additionally, the tax department reserves the authority to cancel registration if returns are not filed correctly or for other valid reasons. This cancellation process ensures that only compliant businesses remain registered under the GST regime, promoting accountability and maintaining the integrity of the tax system.

Yes, perfectly suitable. The private limited have been an immensely prevalent form of business entity among foreign investors for creating the direct foreign investment in any country (subject to FDI guidelines).