Goods & Service Tax
GST is a consumption based tax levied on sale, manufacture and consumption on goods & services at a national level. This tax will be substitute for all indirect tax levied by state and central government. Exports and direct tax like income tax, corporate tax and capital gain tax will not be affected by GST. GST would apply to all goods other than crude petroleum, motor spirit, diesel, aviation turbine fuel and natural gas. It would apply to all services barring a few to be specified. With the increase of international trade in services, GST has become a global standard. The proposed tax system will take the form of “dual GST” which is concurrently levied by central and state government. This will comprise of:
GST is mandatory/ required:
- If you are selling goods and services within state and have expected turnover more than 20 lakh rupees in a year.
- If you are selling goods and service outside state & even have turnover less than 20 lakh rupees in a year.
- If you are doing ecommerce business online or any service based business online.
- If you are dealer or trader or manufacturer and your suppliers are registered under the GSTIN already then they would charge the GST on your purchase & if you need the input credit or refund then you are required to have the GSTIN Number.
If you run a business in India, You will have to register for GST if your turnover is over 20 Lakhs per annum and start filing GST Returns; if you already have a Indirect tax registration, you have to convert that into a GST Registration