GST

GOODS AND SERVICE TAX REGISTRATION

The Goods and Services Tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption. The GST is paid by consumers, but it is remitted to the government by the businesses selling the goods and services. In effect, GST provides revenue for the government.

GST is a comprehensive indirect tax levy on manufacture, sale and consumption of goods as well as services at the national level. It will replace all indirect taxes levied on goods and services by states and Central.

Government of India and all federal states introduced single value added tax system in India on 1st July, 2017. As per new indirect tax system, all existing indirect tax like Service Tax VAT etc merged to single tax system, i.e Goods and Service Tax. The new tax system is administered under Central Goods and Service Tax Act,2017 and respective state Goods and Service Tax Acts, rules framed under these legislations.

What are the benefits of registering under GST?

A. For normal registered businesses:
1. Take input tax credit
2. Make interstate sales without restrictions

B. For Composition dealers:
1. Limited compliance
2. Less tax liability
3. High working capital

C. For businesses that voluntarily opt-in for GST registration (Below Rs. 20 lakhs)
1. Take input taxcredit
2. Make interstate sales without restrictions
3. Register on e-commerce websites
4. Have a competitive advantage compared to other businesses

Registration Requirements

Section 22 of the Act mandate all suppliers of Goods and Services whose aggregate turnover exceeds 20 lakhs in any financial year shall liable to get registered under the act. Any other person can also opt voluntarily to get registered under GST even if his turnover less than 20 lakhs. But following persons shall register under the act even if his turnover less than 20 lakhs.

• Person making inter-state taxable supply
• Casual taxable person.
• Person who required pay tax under reverse charge
• Electronic Commerce operator.
• Non-resident person making taxable supply.
• Person required to deduct tax.
• Person who make taxable supply on behalf of other person.
• Input service distributor.
• Person who required to collect tax at source other than e-commerce operator.
• e-commerce operator
• Person who is in data retrieval service from a place outside India.
• Such other class of person notified by Central Government.