Operating a successful business in Chennai? GST registration is the next logical step.
GST Threshold in Chennai: Understanding the Basics
Goods and Services Tax (GST) is an indirect tax that has replaced many indirect taxes in India. It is a destination-based tax that is levied on the supply of goods and services. GST has made taxation simpler and has unified the Indian market by eliminating the cascading effect of taxes. However, it is important to understand the GST threshold in Chennai to comply with the regulations.
What is GST Threshold?
The GST threshold is the minimum annual turnover limit that businesses must exceed to be registered under GST. If a business’s annual turnover is below the threshold limit, it is not mandatory for them to register for GST. However, if the turnover exceeds the threshold limit, the business must register for GST and comply with the regulations.
GST Threshold in Chennai
The threshold value for registration for persons involved in the sole supply of goods has been raised to ₹ 40 lakhs in Chennai, Tamil Nadu. However, the registration requirement for service providers would remain at ₹ 20 lakhs in Chennai, Tamil Nadu. Even though a GST provider may not be fulfilling the threshold limits, one can opt for voluntary GST Registration Process.
According to the GST state code list, the GST state code for Tamil Nadu is 33. The first two numbers (33) of a GSTIN, indicate that a firm is located in Tamil Nadu, according to the GST state code. Without the GST state code, no firm which has crossed the threshold limit may function in Chennai, in Tamil Nadu.
Impact on Small Businesses
The GST threshold has had a significant impact on small businesses in India, including Chennai. Small businesses with an annual turnover below the threshold limit can operate without the burden of complying with GST regulations. However, small businesses with an annual turnover that exceeds the threshold limit must register for GST and comply with the regulations, which can be challenging for many small businesses.
Benefits of GST Registration
While GST registration may seem like an additional burden, it also offers benefits for businesses. GST-registered businesses can claim input tax credit, which allows them to reduce their tax liability by claiming credit for the taxes paid on inputs. Additionally, GST registration also helps businesses improve their credibility and expand their customer base by allowing them to compete with larger businesses.
How Vakilsearch Can Assist in Chennai GST Registration
Don’t think you can undergo the rigmarole of GST’s indirect taxation formalities? Apply for GST in Chennai without any hassle with the help of experts at Vakilsearch.
- As a first and foremost step, you must get in touch with Vakilsearch ‘s GST specialists to assess your GST needs and requirements
- Our team of professional GST specialists will then ensure that all your paperwork and documentation is in order, so as to facilitate hassle-free GST enrollment.
- Our skilled legal team will then guide you through the GST registration process: https://reg.gst.gov.in/registration/ and complete the entire process on your behalf so that you can acquire your ARN and GSTIN as soon as possible.
- The Vakilsearch team will also help manage any difficulties in terms of compliance and physical verification that may occur during the registration process.
- Additionally, our professionals can even help you out post-registration by handling all of your GST return filings to keep you GST compliant.
