The long-awaited goods and services tax is a reality now, which subsumes most of the indirect taxes in it. While tax base will increase the complication of compliance is set to reduce. Now the tax is not on manufacturing, sale or provision of service but is on supply. The system of GST is such where the credit of the GST paid on Inward Supply can be set off towards the GST on outward supply where the chain of tax credit needs to remain intact. Under the new tax regime, all persons involved in the supply of goods or services are required to obtain registration of GST. Those who are not registered under GST shall not be allowed to collect GST from customers or claim input tax credit (ITC) on inward supply. GST Council has prescribed 20 Lakhs of turnover to be the threshold limit for registration under GST. However, for northeastern states, it is 10 Lakhs. The registration must be applied within 30 days of reaching the threshold limit. For GST, the term Aggregate Turnover means all supplies made by the taxable person whether on his own or behalf of a principal. However, in case of registered job worker, the turnover of supplies under job work won’t be included in his turnover.
Importance Of GST
Goods and Services Tax (GST) is an indirect tax that will be levied on manufacture, sale and consumption of goods and services. The importance of the GST is that when applicable it will abolish all indirect taxes. Hence the entire system of taxation will be simpler.The present structure of Indirect Taxes is very complex in India and tax rates differ from State to State. We have to pay ‘Entertainment Tax’ for watching a movie. We have to pay Value Added Tax (VAT) on purchasing goods and services. And there are Excise duties, Import Duties, Luxury Tax, Central Sales Tax, Service Tax. GST will bring uniformity and reduce the cascading effect of these taxes by giving input tax credit.
GST REGISTRATION ONLINE
Who needs to register :
- Can be obtained valuntarily by anyone
- On reaching 20 Lac turnover within state
- Mandatory in case of Inter-State Supply.
- When entering into foreign trade (Import/Export)
- If liable to GST under Reverse Charge method
- Supply of Goods or Service through E-com Operator
WHO IS REQUIRED TO OBTAIN GST REGISTRATION
TURNOVER EXCEEDS 20/10 LAKH
REGISTERED UNDER OLD LAW
CASE OF TRANSFER OF BUSINESS
MERGER OR DEMERGER
NOT LIABLE TO REGISTRATION
GOODS AND SERVICES ACT (GST)
|BASIC PACK PLUS
GST PAYMENT/GSTR-3B FOR 3 MONTHS
|SILVER PACK PLUS
FILING GST RETURN FOR 3 MONTHS.