Gst registration on voluntary basis

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You may register for GST freely under Goods and Services Tax regulations, even if there is no legislative necessity to do so. Regardless of whether or not they meet the minimum threshold requirements, any firm that offers goods or services can voluntarily register for GST. If you want to learn more about GST Registration on a Voluntary basis, continue reading this article.

What is Voluntary GST Registration?

Registration for the Goods and Services Tax is optional for firms that aren’t legally required to do so and aren’t prevented from doing so if they so wish. However, it is important to note that voluntary registrants under GST are subject to the same provisions of the taxation system as applied to mandatorily GST registered businesses. It means businesses registering under GST voluntarily will also have to do GST Return Filing and all the other compliances related to GST.

How long does a voluntarily GST registered status last?

A businessman’s voluntary registration is permanent until he cancels it. Despite having a lower annual turnover than required to keep GST registration active, you can keep your GST Registration active by following all the other procedures and rules.

Can you cancel Voluntary GST Registration?

If you wish to cancel your GST registration, you cannot do so until one year has passed after the end of your fiscal period. After that, to cancel your GST Registration, you will need to apply through the GST Registration Cancellation application procedure.

Benefits of Voluntarily GST Registration

  • Businesses that have been approved to issue tax invoices can do so. Therefore, customers can claim a tax refund on purchases from these companies. As a result, the company’s client base can grow, and it will eventually become much more competitive.
  • Businesses can increase their profits and margins by taking advantage of the input tax credit available to those that voluntarily register under the Goods and Services Tax on purchases and input services such as consulting fees and legal expenses.
  • Once a company has registered under the GST Registration, it will have greater freedom to make sales across state lines. There is a larger potential customer base, which is great news for startups and growing enterprises. Online sales through e-commerce sites are another option for these companies looking to expand their clientele.
  • Businesses who are subject to the Goods and Services Tax and maintain a high compliance rating will have an easier time renting office space, obtaining bank loans, and other similar commercial activities.

Read more about GST Registration Benefits at:

Disadvantages of Voluntary GST Registration

  • Any organization that chooses to register for GST will need to allocate more funds to ensure the continuity of operations, both financially and in terms of regulatory compliance. However, outsourcing GST Return Filing online can help you overcome this drawback.
  • A further drawback of the GST system is the increased number of returns, which will increase from three per month to thirty-seven by the end of the year. The three GST forms (GSTR-1, GSTR-2, and GSTR-3) must be completed accurately and on time each month. For tax purposes, the forms take into account both sales and purchases made, as well as ITC input tax credits. Keep in mind that you will be penalized for late submission of the GST Returns and denied input tax credit if you fail to maintain compliance. But, the composition scheme under GST can also aid businesses looking to gain advantage of Voluntary GST Registration. Also, Online Bookkeeping and Accounting Services and Virtual CFO Services in India can assist you in reducing the costs of consultation and return filing.
  • There will be a requirement for further registrations following initial registration for any business units that do trade beyond state lines. The Goods and Services Tax (GST) is a destination-based tax for which returns must be submitted in all states where a firm operates.

Learn more at: Know about Advantages and Disadvantages of GST or call our GST Experts at: 8881-069-069.


Thus, the voluntary GST registration is not only a good concept, but will also provide the MSME sector with enormous chances for growth and expansion into the larger field of opportunities. Nonetheless, laws and regulations are equally relevant, but these are for the business unit’s advantage. So,a compliance-driven business strategy is a healthy approach to do business in the global marketplace under GST. If you can manage the compliances and utilize GST Registration benefits properly, your decision of Voluntary GST Registration will be the best decision for your business.

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moreover, If you want any other guidance relating to or GST Registration online , please feel free to talk to our business advisors at 8881-069-069.

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