Goods and Services Tax (GST)
The Goods and Services Tax (GST) regime has rationalized tax collection and simplified compliance procedures to a great level. Businesses that once had to register for a wide range of taxes, that is VAT, Excise Duty, Service Tax, CST, Luxury Tax and Entertainment Tax, and many more will now only require a GST registration. GST is strictly an Indirect tax applied to the cost of certain goods and services while Income tax comes under Direct tax. All Goods and Service Providers in the domestic market are levied this value-added tax. However, not all businesses require GST registration.
Any business contribution to sale of goods with annual turnover of Rs 40 lacs or service with annual turnover of 20 lacs would require the registration for GST and have a valid GST Number. GST is levied on supply, not sales. Therefore, stock-taking, discounts and freebies also come under the GST net. Irrespective of turnover, Businesses exporting to other states must register under GST.
Our helpful expert advisors at Eazy startup shall guide you on various aspects of GST.
Q: Is GST Registration applicable to all the kinds of businesses?
A: Yes, GST is applicable to all sorts of businesses entities from manufacturers to service providers, exceeding their threshold limit.
Q: What is GSTIN?
A: GSTIN is a unique identification number consist of 15 digit alpha-numeric number starts with state code and following with the PAN number of the taxpayer then entities count Z by default and checksum of the previous digits generated automatically.
Q: What are SGST, CGST and IGST?
SGST: SGST act states that on the intra-state supplies of goods and services, SGST is applicable and is controlled by the respective state government and the liability incurred on SGST can be set off only with SGST or IGST input tax credit.
CGST: CGST act states that on the intra-state supplies of goods and services, CGST is applicable and thus both of the governments would pool their tariffs with revenue sharing agreements between them.
IGST: IGST act states that on the inter-state supplies of goods and services, IGST is applicable all over India which includes both import and export of goods and services of India.
Q: Is an individual allowed to collect GST without registering for GST?
A: No, an individual or an entity cannot collect GST without GST registration and also cannot claim input tax credit on the GST paid.
Q: What is the due date for getting registered under GST?
A: Within 30 days after satisfying the clause, every entity which is legally responsible for getting registered under GST should apply for GST registration and if the individual is non-resident taxable persons he should get registered before commencement of business.