What is GST?

Goods and Service Tax is an indirect tax proposed to be levied on supply of all goods and services. It is a destination based tax accruing at the place of consumption.

I am dealing in only exempted goods & services. Am I required to register?

No. If you are dealing exclusively in exempted goods and/or services, registration is not required.

Am I required to get registered under GST?

If you are currently registered under any of the existing indirect taxes, then you are compulsorily required to migrate to GST law. In case you are not registered under any existing indirect tax laws, then you are liable to register only if the aggregate turnover in any financial year exceeds the threshold limit.

Is Threshold limit for registration applicable for everyone?

The below category of persons are mandatorily required to get registered irrespective of the turnover: – Casual Taxable Person – Non Resident Taxable Person – Business engaged in inter-state supply of goods and services. – Those who are required to deduct TDS u/s 46 or collect TCS u/s 56 – Input Service Distributor – Electronic commerce operator supplying goods and services directly or acting as intermediary to promote exchange (list of specific goods and services will be prescribed for this purpose). – Person supplying data management services irrespective of whether located in India or not. Thus above person will have to get registered even if their aggregate turnover during a financial year does not exceed the threshold limit.

What are the threshold limits for registration?

Every supplier of goods and services is required to get registered under GST if his aggregate annual turnover during the financial year exceeds 20 lakhs. The threshold limit is 10 lakhs for North Eastern and hill States .

How to calculate aggregate turnover?

Aggregate turnover will include taxable turnover, exempted turnover, export turnover and interstate turnover.

I currently hold a centralised registration under Service tax. Is it possible under GST?

Separate registration of premises in different states will have to be obtained. You will have received separate provisional ID’s for each State on the ACES website.

What is composition scheme?

This scheme is being introduced for small tax payers (turnover upto Rs. 50 Lakhs) to reduce the compliance burden on them. Business registered under composition scheme will be liable to pay tax only to a maximum of 2.5% for manufacturers and 1% for other than manufacturers. They would not be part of credit chain and hence cannot collect any tax from consumers. This scheme is not available for Service providers or persons effecting inter-state supplies.