Startups confusion : Register now or after GST ?
In this article we discuss about the confusion between the startups i.e GST will be implemented from this 1st july 2017 so right now startup govt registration is beneficial or after the gst registration ?
When you start any type of the new business in India, your first task is only to take the proper legal registration from government of India. so basically there are 2 type of the registration :-
a) Business Registration like incorporation of company.
b) Tax Registration like VAT/CST or Service Tax or Now it’s called GST Registration.
a) Business Registration :-
Business registration are mainly the incorporation procedure. there are 5 type of the legal structure available in india i.e is-
a) Private Limited Company Registration
b) One Person Company
e) Sole Proprietorship Firm
So now if we talk about the above first 3 legal entity which is completely separate legal structure from personal liability and assets & registered with the ministry of corporate affairs. You can say these 3 legal entities are proper incorporation of the startup or business. so if you registered these 3 legal entities then in the starting of the business you have not required the gst registration till the 20 lakh rupees turnover in year & for north estate state 10 lakh rupees turnover.
but in the case of the partnership firm or proprietorship firm are registered with the respective state local government like shop act license or gumasta license or registrar of firms or sometimes needed tax registration like service tax or vat/cst or now you can say GST Registration to opening a current bank account. so if you are thinking about to register a simple firm with the tax registration then right now just avoid it because fresh gst registration not started yet & already existing VAT/CST or service tax has been converted into the gst. so you can wait for the 1st july 2017 or register with the MSME or Shop act license or CA Certification etc.
b) Tax Registration :-
Tax registration are required by the business when they cross the certain turnover limits in the respective laws like GST have 20 lakh rupees turnover limit (northeast state 10 lakh). similarly sometimes you have to required the tax registration in the starting like when you want to sell on the popular ecommerce platform amazon or flipkart or snapdeal etc. so best thing is just wait till the 1st july 2017 then directly apply for the fresh GST Registration.
so ultimately following person have to wait till the 1st july 2017 to register as proprietorship firm with tax registration :-
a) who’s want to sell on e commerce marketplaces
b) whose deal in trading or manufacture.
c) who’s want to sell the products which is fall under the vat category.
d) who’s want to start import export business with tax registration.
Hope now your confusion has been cleared regarding the new business registration. so you can go with the proper incorporation procedure but yes you have to wait for the fresh gst registration.