Goods & Services Tax (GST) apply to all Indian service providers (including freelancers), traders and manufacturers, once their supply turnover crosses Rs. 20 lakh. The GST is an all-in-one tax that State and Central Taxes. GST is to be charged at every step of the supply chain, with complete set-off benefits available. The procedure for GST is completely online and requires no manual intervention. There will also be a composition scheme under GST for businesses with a supply turnover of less than Rs. 50 lakh. GST is applicable to Entities in special category states with an annual turnover of Rs.10 lakhs and above. There are three type of taxes SGST ( State Goods and Service Tax), CGST ( Central Goods and Service Tax ), IGST ( Integrated Goods and Service Tax ). In case the applicable entities to GST registration, if not get the GST registration, penalty proceeding will be imitated by the department.
Frequently Asked Questions
What is the GST?
The GST stands for Goods and service Tax. The GST brings all the indirect taxes under a single tax regime at the national level.
What does mean composition scheme under GST?
GST also has an optional scheme of lower taxes for small businesses with turnover between Rs. 20 to 50 lakhs. It is called the composition scheme. It has now been proposed to be increased to 75 lakhs. This will bring respite from tax burdens to many small businesses.
Input tax available in GST Filing?
Input tax mechanism is followed in GST. A dealer has to pay the tax liability after utilizing the input credit on purchasing of goods or service received.
Who will register the GST?
Any supplier who carries on any business at any place in India and whose aggregate turnover exceeds threshold limit as prescribed above in a year is liable to get himself registered.
Can a person without GST registration claim ITC and collect tax?
No. A person without GST registration can neither collect GST from his customers nor claim any input tax credit of GST paid by him.
Is there a provision for a person to get himself voluntarily registered though he may not be liable to pay GST?
Yes, in terms of Sub-section (3) of Section 19, a person, though not liable to be registered under Schedule III, may get himself registered voluntarily, and all provisions of this Act, as are applicable to a registered taxable person, shall apply to such person.