Benefits of GST Registration


If you are a registered individual or a business, then there will be natural trustworthiness towards you from consumers and suppliers. It shows that you are someone who can be trusted. A company or an individual that has all the legal documents and who are compliant with the rules and regulations create a positive impression.

Avoid Unnecessary Hurdles

There could be some hurdles you may face if you are not registered under GST. The way GST regime works is through a chain system. A product can be tracked from manufacturing to supplier to wholesaler to retailer, finally the consumer. Everyone would want to remain GST compliant to avoid any hurdles.

Legal Strength

If you are registered under GST and, if a business or an individual, for some reason, takes legal action against you, you will have legal strength to fight back or defend your position. Without the GST registration, you cannot be considered as a legitimate business, and it could work against you in the court of law.

Avoid Penalties

The penalty for someone who is a taxable business or individual and chooses not to register under GST, then according to section 122 of the CGST Act, they can attract a penalty of Rs. 10,000 or the amount equivalent to the tax evaded or the tax liability whichever is higher. It also creates negative impression about your companies trustworthiness.


Authorities can confiscate your Goods if you are not registered under GST. According to Section 130 of the CGST/SGST Act, products become liable to be seized if a taxable business or individual is found to not registered under GST. In a corporation, when Goods are confiscated, then it could be a huge loss because there could be damage to the goods that are seized.

Business Shutdown

If you are not registered under GST, and if your goods are confiscated, or if there are hefty penalties levied on your business, then there might be the risk of shutting down the business. Because sometimes the seized products cannot be recovered. Sometimes the penalties that are charged might be more than the total value of profits.