Our tax laws are preparing to go through a historic change. GST or Goods and Services Tax is being prepared to replace existing taxes such as VAT, service tax, excise duty and several local state taxes and levies.
GST is expected to have a far reaching impact. Whether you run a business or provide a service, however big or small, it is very likely GST will impact you.
The government is preparing for a start date of 1st July 2017 for GST.
GST applies to all Businesses
Businesses includes – trade, commerce, manufacture, profession, vocation or any other similar activity, irrespective of its volume or frequency. It also includes supply of goods/ services for starting or closure of a business.
Services means anything other than goods. It is likely that services & goods carry a different GST rate.
GST applies to all persons
Persons includes – Individuals, HUF, Company, Firm, LLP, AOP, Co-operative society, Society, Trust etc. However, GST does not apply to Agriculturists.
Agriculture includes floriculture, horticulture, sericulture, raising of crops, grass or garden produce. But does not include dairy farming, poultry farming, stock breeding, gathering of fruit or rearing of seedlings or plants.
GST registration required when
Having a PAN is mandatory to obtain GST registration. However, non-resident person can get GST registration on the of basis other documents, which the government may prescribe.
One registration shall be required for each state. The taxpayer can choose to get separate registrations for its different business verticals in the State.
GST registration is MANDATORY in the following cases –
TURNOVER BASIS
You must collect and pay GST when your turnover in a financial year exceeds Rs. 20lakhs. [Limit is Rs 10lakhs for some special category states]. These limits apply for payment of GST.
“Aggregate turnover” means the aggregate value of all taxable supplies,exempt supplies, exports of goods and/or services and inter-State supplies of a person having the same PAN, to be computed on all India basis and excludes taxes, if any, charged under the CGST Act, SGST Act and the IGST Act, as the case may be.
OTHER CASES [GST registration is mandatory irrespective of turnover]
Those making inter-state supply of goods/servicesAny person who supplies goods/services in a taxable territory and has no fixed place of business – referred to as casual taxable persons. Registration issued to such a person is valid for a period of 90 days.Any person who supplies goods/services and has no fixed place of business in India – referred to as non-resident taxable persons. Registration issued to such a person is valid for a period of 90 days.Person required to pay tax under reverse charge mechanism. Reverse charge mechanism means where the person receiving the goods/services has to pay tax instead of the supplier.Agents or any other person who makes supply on behalf of other registered taxable personsDistributors or input service distributors.This person has the same PAN as the office of the supplier. This person is an officer of the supplier, he receives supplies and issues tax invoice to distribute credit of CGST/SGST/IGST.E-Commerce OperatorPersons who supplies (except branded services) via an e-commerce operatorAggregator supplying services under his brand namePerson supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered taxable person.
By https://cleartax.in/