Goods and Service Tax

What is GST?

The PM, Narendra Modi said, “Good and Simple Tax” & “A way of doing Business”

GST “Tax on supply of goods and services” In the GST regime, 17 taxes have been subsumed which were earlier levied by central, state, and local bodies.

GST will be levied at every stage right from manufacturer up to final consumption with credit of taxes paid earlier.

What are the advantages of GST Registration?

1. Legally recognized as supplier of goods or services;
2. Proper accounting of taxes paid on the input goods or services which can be utilized for payment of GST due on supply of goods or services or both by the business;
3. Legally authorized to collect tax from his purchasers and pass on the credit of the taxes paid on the goods or services supplied to purchasers or recipients.

Who is liable to get registered under GST?

1. Any business whose turnover in a financial year exceeds INR 20 lakhs (INR 10 lakhs for North Eastern and hill states). [Note: If your turnover is the supply of only exempted goods/services which are exempt under GST, this clause does not apply.]
2. Every person who is registered under an earlier law (i.e., Excise, VAT, Service Tax, etc.) needs to register under GST too.
3. When a business that is registered has been transferred to someone/demerged, the transferee shall take registration with effect from the date of transfer.
4. Anyone who drives the inter-state supply of goods.
5. Casual taxable person.
6. Non-Resident taxable person.
7. Agents of a supplier.
8. Those paying tax under the reverse charge mechanism.
9. Input service distributor (ISD).
10. E-commerce operator or aggregator.
11. Person who supplies via e-commerce aggregator.
12. Person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered taxable person.

When to register under GST

Every person has to apply for registration within 30 days from the date on which he becomes liable to register.

Note: For GST registration, PAN would be a prerequisite for obtaining GSTIN.