The long-awaited goods and services tax is a reality now, which subsumes most of the indirect taxes in it. While tax base will increase the complication of compliance is set to reduce. Now the tax is not on manufacturing, sale or provision of service but is on supply. The system of GST is such where the credit of the GST paid on Inward Supply can be set off towards the GST on outward supply where the chain of tax credit needs to remain intact. Under the new tax regime, all persons involved in the supply of goods or services are required to obtain registration of GST. Those who are not registered under GST shall not be allowed to collect GST from customers or claim input tax credit (ITC) on inward supply. For all current taxpayers under current tax regimes, such as excise, sales tax or vat, service tax is required to migrate their registration to GST. The migration to GST is open until three months from 26th June 2017. As of now, the GST portal is issuing the provisional registration, which shall be valid to transact business under GST Law.
The transition to GST for the existing tax payers is based on the data which is already with the tax department, the GST system will pull the data in the GST form by auto populating the same after the user verification is complete. The taxpayers shall not be able to change the PAN of the business, Legal name of the business, State, Reason of liability to obtain registration, Email and mobile number as such. However, in case the trade name is different from legal name then the same may be edited.
Existing Tax Payers of Excise, Vat & Service tax need to migrate to GST
All start-up engaged in any trade or business will eventually require registration
Monthly Filing of Various Returns and Reconciliation Service
It is a destination based Indirect tax which is levied on a supply of Goods or Service. The GST is lived at the time and place of supply.
GST is exempted until the turnover of your business is not equal to or more than 20 lacs all over India. However, for businesses of Northeast states the threshold turnover is Rs. 10 lacs only.
For persons doing interstate supply, there is no exemption, and you need to apply for GST registration even you an interstate supply of Rs. one.
Yes, you need to take GST registration in all states from where you are supplying goods or services.
Small tax payers having turnover of Rs. 75 lacs or less, can opt for composition scheme where the GST is 2% for manufactures, 5% for restaurants and 1% for other suppliers. The tax payer can’t take input credit.
The invoices need to contain HSN Code of goods or SAC codes for the services. the list of codes can be found by visiting