All about GST - goods and services tax

What is GST (Goods and Services Tax)?

GST is an indirect tax, it is also known as one tax for the entire nation, which will help in making India one unified common market. It is a multi stage and destination based tax. Basically, the tax regime which was initiated by the UPA government, but was bought into force by the Narendra Modi government .Under the GST Concept, the tax will be levied at every point of sale. In case of interstate sales, Central GST and State GST will be charged, whereas the Intra-state sales will be chargeable only on the Integrated GST.

Who requires GST?

Any business whose turnover exceeds the basic threshold limit of Rs. 20 lakhs or any business based in North Eastern and hill states the threshold limit is Rs. 10 lakhs will have to get itself registered under the GST.

Further, other Business registered under various pre GST laws for instance Excise Tax, Service Tax have to get themselves registered under GST by default.

Business required to be registered under the GST irrespective of their turnover

i. The Persons making inter-state taxable supplies

Any Inter-state supply of goods or services from a state to another state has to be registered any GST regime, that is in other words-any person who is supplying goods and services to person outside the State, you are required to obtain the GST registration number.

ii. Persons who are required to pay tax under reverse charge

Under the GST registration, most of the goods and services, the liability for payment of tax is upon the supplier. Whereas, in certain cases, the liability to pay GST rests with the recipient of the services, instead of the supplier, these transactions are known as the reverse charge. Therefore, under reverse charge registration under GST is mandatory.

iii. Non-resident taxable persons making taxable supply

All the Non-resident persons who are supplying goods and services to recipients based in India; occasionally, but they do nota fixed place of business in India. Therefore, in this case all non-residentpersons are mandatorily required to obtain the GST registration.

iv. Input Service Distributor

The term Input Service Distributor means the supplier of goods and services which receives the tax invoice for the receipt of the input services and issues a prescribed document for the purposes of distributing the credit of the central tax, State tax or Union territory tax paid over the services to the supplier of taxable goods and services.

v. Electronic Commerce Sector

The E-commerce deals with the supply of the goods or service, including the digital products over the digital network. An electronic commerce operator is aperson who owns and manages digital facility for electronic commerce. All E-commerce vendors are required to obtain the GST registration.