The Goods and Services Tax (GST) regime has simplified compliance procedures and rationalised tax collection tremendously. It has done away with several complex taxes, including VAT, Excise Duty, Service Tax, CST, Luxury Tax and Entertainment Tax, among others, that businesses would otherwise need to be registered for.
Entities involved in the buying and selling of products or the provision of services must be registered for GST. It is strictly an Indirect tax applied to the cost of certain goods and services. GST is mandatory for entities that cross the minimum annual turnover threshold or for newly registered businesses that expect to cross the minimum annual turnover threshold. Therefore, GST Registration is not mandatory for all businesses.
Entities without GST registration are not permitted to collect GST from their customers or permitted to claim input tax credit for GST paid to suppliers.
All businesses producing the sale of goods with annual turnover of Rs. 40 Lakhs or service with an annual income Rs. 20 Lakhs, a GST Registration and a valid GST Number will be required. Only supply requires levying of GST and sales do not. Hence, Discounts, Freebies and Stock-trading will be included under GST net. Apart from that, Businesses exporting to other states are supposed to register under the GST net regardless of the turnover. Our Advisors at Complisure will assist you on various aspects regarding GST. Enrol today!