Goods and Service tax is a new indirect tax in India. Almost 18 indirect taxes have been subsumed in GST making it single and common indirect tax regime to be functioning across India. Till 25th June, 2017, persons having registration under excise, service tax, vat and other old indirect taxes were allowed to migrate into GST. But with effect from 25th June, 2017, now persons are allowed to take new registration for his or her business. Apart from this government has also allowed professionals to enroll as GST practitioner in GST regime. Only GST practitioners are allowed to file gst returns on behalf of their clients.
What is GST Registration?
Every business carrying out a taxable supply of goods or services in India and whose turnover exceeds the threshold limit of Rs. 20 lakh/10 Lakh as applicable will be required to take GST registration on or after 1st July, 2017. But Persons having registration in any of old indirect taxes can migrate to GST instead of taking new GST registration. On successful registration, GSTIN is alltoted to the applicant.
Types of GST Registration:
- Compulsory Registration: Individual or Entity having turnover exceeding 20 lakh rupees.
- Casual registration: A person who occasionally supplies goods and/or services in a territory where GST is applicable but he does not have a fixed place of business in that territory. Such a person will be treated as a casual taxable person as per GST.
- Composition Scheme:
- This is an option available to small businesses and taxpayers having a turnover less than Rs. 75 lakhs. They can opt for Composition scheme where they will tax at a nominal rate of 1% or 2.50% (for manufacturers) CGST and SGST each.
They will be required to maintain much less detailed records and file only 1 quarterly return instead of three monthly returns. However, they cannot issue taxable invoices, i.e., collect tax from customers, but are required to pay the tax out of their own pocket. They cannot also claim any input tax credit. Composition levy is available to only small businesses. It is not available to interstate sellers, e-commerce traders, and operators.
ELIGIBILITY: Any Individual or Entity shall be required to get registration under GST if it fulfills any of the following criteria:
- has annual aggregate turnover from operations exceeding Rs.20 Lakhs or,
- has any of the indirect tax registration(VAT, Service Tax, etc) or,
- is required to pay tax under reverse charge or,
- is Input service distributor or,
- makes an interstate taxable supply or,
- is an Nonresident Taxable person.
Major Indirect Taxes replaced by GST:
TAXES REPLACED BY GST:-
The GST replaces numerous different indirect taxes such as:
- Central Excise Duty
- Service Tax
- Countervailing Duty
- Special Countervailing Duty
- Value Added Tax (VAT)
- Central Sales Tax (CST)
- Entertainment Tax
- Entry Tax
- Purchase Tax
- Luxury Tax
- Advertisement taxes
- Taxes applicable on lotteries.
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