Concept

Goods and Services Tax is a consolidated indirect tax policy that encompasses VAT, CST, Service Tax, Central Excise duty, Entertainment Tax, etc and is valid all over India with effect from 1st July 2017.

When to register for GST?

Mandatory to register under GST when annual turnover exceeds INR 40/20 lakh or supply goods and services inter-state or through e-commerce platform.

What are the GST tax rates?

Tax rates vary from 0% to 28% depends on the type of goods & nature of the services you are selling.

Input Tax Credit Availment

Only business unit registered under GST can avail credit of tax paid at the time of purchase while filing GST returns.

Return Filing & Payment

Every GST registrant requires to file three monthly/quarterly returns and One annual return. Requires paying tax every month.

Composition Scheme

Business Unit having an annual turnover less than INR1.5 crore may opt the scheme. Requires to pay subsidize tax ranges from 1% to 5% & file quarterly return.

• Turnover Criteria: All taxpayers who have an annual turnover above ₹40 lakhs are required to get new GST registration.
• Causal taxpayer: If you supply goods or services in events/exhibition where you do not have a permanent place of business, you need to get online GST Registration before starting a business. Such a dealer has to pay GST on the basis of an estimated turnover of 90 days. The validity of causal GST Registration is 90 days.
• NRI taxpayer: NRI taxpayer, who does not have a place of business in India, wishes to start a business, then he has to apply for GST Registration in India before beginning operations in India. The validity of a new GST registration is 90 days.
• Agents of a supplier & Input service distributor: All Input service distributor who wants carry-forward benefit of input tax credit requires gst registration.
• Reverse Charge: A business who requires to pay tax under the reverse charge mechanism need gst registration.
• E-Commerce portal: Every e-commerce portal (such as Amazon or Flipkart) under which multiple vendor’s selling their product requires gst registration.

GSTIN is an abbreviation for Goods and Service Tax Identification Number. It consists of 15 alphanumeric digits. This is generated by the government after you have successfully completed GST registration.

• First 2 digit show state code
• Next 10 digit indicates PAN Number
• Next 1 shows serial number of gst registration in a state.
• Last 2 digits are random

GST Composition Scheme is for the small taxpayers, which is framed to reduce the tax compliance burden. Small taxpayers need not file monthly GST returns and they need to pay nominal GST at a fixed rate of turnover. Any business having an annual turnover up to ₹1.5 Crore can opt for GST registration under composition scheme. GST COMPOSITION SCHEME.