GST (Goods and Services Tax) is being prepared to replace the existing taxes as service tax, VAT, excise duty and several local state taxes and levies. GST will ultimately create a unified market by ending up the multiple levies of taxes by Central and the State.
It is lower costs for business and more revenue for the government. The state was afraid of the loss of flexibility that, this meeting has cleared many such fears. Broad agreement has arrived between the Central and State.
GST is a single tax on the supply of goods and services right from the manufacturer to the consumer. For initial years, the petroleum products will outside a regime of GST. It is applicable that many states get half of their taxes from such products only and for the major concern of states.Sponsored Links:
GST applies to all Businesses
It applies to manufacture, trade, commerce, vocation, profession or any other activities, irrespective of its volume or frequency. It also supplies of goods and services for starting or closure of the business.
GST applies to all Persons
It applies to all Firm, Individuals, HUF, LLP, Company, Society, AOP, Co-operative Society, Trust and more. However, GST does not apply to Agriculturists.
GST applies to all Agriculture Products
It applies raising of crops, floriculture, horticulture, grass or garden produce, seri culture. But does not dairy farming, poultry farming and stock breeding, gathering of fruit or rearing of seedlings or plants
When GST registration is required?
GST registration is required for PAN Card has mandatory. A non-resident person can get GST registration on the basis of other documents that the government may prescribe. GST registration is mandatory in the following way
You can collect and pay GST when a turnover in the financial exceeds Rs. 20lakhs. The limit is Rs 10lakhs for some special category states. These limits apply for payment of GST.
For all taxable, exports of goods and service, exempt, also inter-state supplies of the person having same PAN Card, to all Indian basis and excludes taxes, if any charged under the CGST or SGST or IGST Act.
- E-Commerce Operator
- Persons who supply except branded services through an e-commerce operator
- Aggregator supplying services under his brand name.
- Any person which supplies of goods and services in the taxable territory and has no fixed place of business as referred to as casual taxable persons. Registration issued to the person is valid for a period of 90 days.
- Agents or any other person which makes to supply on behalf of other registered taxable persons
A person is required for paying tax under Reverse Charge Mechanism. It means where the person receiving the goods and services has to pay the tax instead of the supplier.