GOODS & SERVICES TAX (GST)
GST is the biggest tax reform in India, tremendously improving ease of doing business and increasing the taxpayer base in India by bringing in millions of small businesses in India. By abolishing and subsuming multiple taxes into a single system, tax complexities would be reduced while tax base is increased substantially. Under the new GST regime, all entities involved in buying or selling goods or providing services or both are required to register for GST. Entities without GST registration would not be allowed to collect GST from a customer or claim input tax credit of GST paid or could be penalised. Further, registration under GST is mandatory once an entity crosses the minimum threshold turnover of starts a new business that is expected to cross the prescribed turnover.
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Registered under Old Law |
Compulsory Registration |
Turnover exceeds 10/20Lakhs |
| A person was registered under any previous law of indirect tax like service tax, sales tax, excise etc., which got submerged into GST is required to migrate to the new GST regime and obtain the registration with effect from the appointed date, i.e 1st July 2017 | GST registration is compulsory irrespective of the turnover of the business, in case the person is making interstate supply and is a casual taxable person, or those need to pay tax on RCM, Non-Resident taxable person, Input Service Distributor, E-commerce Operator, etc.. | In case the aggregate supply of goods or services of a person is more than Rs. 20 lakhs (10 lac in the north-eastern state) under one PAN. The said person need to apply for GST registration immediately and start collecting GST on all outward supplies. |
