GST stands for Goods and Services Tax. It is an Indirect tax which was introduced to replacing other Indirect taxes such as service tax, , excise duty, etc. GST is being levied on the supply of certain goods and services in India. It is single tax that is applicable all over India. On July 1st 2017, the Goods and Services Tax implemented in India.
There are four different types of gst as mentioned below:
1.Central Goods and Services Tax : CGST is charged on the intra state supply of products and services.
2.State Goods and Services Tax : SGST, like CGST, is charged on the sale of products or services within a state.
3.Integrated Goods and Services Tax : IGST is charged on inter-state transactions of products and services.
4.Union Territory Goods and Services Tax : UTGST is levied on the supply of products and services in any of the Union Territories in the country, viz. Andaman and Nicobar Islands, Daman and Diu, Dadra and Nagar Haveli, Lakshadweep, and Chandigarh. UTGST is levied along with CGST.
The following entities and individuals must register for goods and service tax:
1.Normal taxpayers : Most businesses in India comes under the category of Normal taxpayer.
Businesses whose turnover exceeds Rs 40 lakh in a financial year are required to register as a normal taxable person. However, the threshold limit is Rs 10 lakh if you have a business in north-eastern states, J&K, Himachal Pradesh and Uttarakhand.
2.Casual taxable individual : Occasional or seasonal businesses need to register their businesses under GST for this category. Businesses need to make a deposit equal to the GST liability from the occasional operations. The tenure for registration is 3 months. However, businesses can apply for renewal and extensions.
3.Non-resident taxable individual : Individuals who reside outside India but occasionally supply goods or services as agents, principals, or in other capacities to Indian residents are liable to file for registration under this category. The business owner must pay a deposit equal to the expected GST liability during the GST active tenure. The normal tenure is 3 months. However, individuals can extend or renew the registration if required.
4.Composition registration : Businesses with an annual turnover of up to Rs 1 crore are eligible for registration under composition scheme. Under this scheme, businesses have to pay a fixed amount of GST irrespective of their actual turnover.
A GST return is a document or form where the assessee is required to disclose details of all the income/sales/purchases/expenses made during the relevant period for which the return is being filed. The return is used to calculate net tax liability of GST.
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