5 Basic Things About GST Everyone Should Know

Till the mid of 2017, Indian government used to levy indirect taxes on the goods and services in the form service tax, excise duty, VAT or some version of custom duty. From 1st July 2017 all the indirect taxes were replaced by a single tax named Goods and service tax (GST). The GST is governed by a GST council and its chairman is the Finance minister. The goods and service are taxed at the rate of 0%, 5%, 12%, 18% and 28% under. All the business persons whose turnover is above 20 lakhs and 10 lakhs for north eastern states are expected to get registered. You can seek advices on the same from the GST consultant in Chennai

When is GST Levied?

The GST on goods and services are levied when the goods are supplied to customers. Here the supply means sale of the goods and service. A supply of goods and service can be taken place even without the occurrence of an actual sale. Supply will also include transfer, exchange, rental, lease and also a supply made to an agent or to a branch. So if any of the above mentioned process takes place in your business then you products will be levied with GST. So the first step is to identify whether there is any supply in your business. Even for this you can get the assistant of any GST consultant in Chennai.

Types of GST:

After conforming that your business is making supply, the next step is to check whether the supply is taking place within the state or outside the state. Most of the supplies are likely to be taxed at the rate of the destination state. So the destination of the supply should be identified. The Intra-state supply of goods and services is carried out if the location of the supplier and buyer are in the same state. In this case the seller has to collect both CGST and SGST from the buyer. CGST is deposited with central government and SGST with state government.

If the supply of goods or service is carried out between the seller and buyer of two different states then it is known as inter-state supply of goods and service. In this supply the seller has to collect IGST from the buyer. With a number GST services in Chennai, you can easily get to know about CGST, SGST and IGST.

Who should register for GST:

If you are already paying the indirect taxes on the goods and services i.e. service tax, excise duty, VAT or some version of custom duty then you have to get registered to GST.

If the turnover of your business in less than 20 lakhs (10 lakhs in north east states) and the supply is within the state then registering for GST is not mandatory. If inter-state supply of goods and service takes place then the turnover limit is not considered and the registration of such business is mandatory, which can be done with the help of any GST consultant in Chennai. On the other hand, if you own a website from where supply of goods and services takes place, even then GST registration is compulsory.

Applicability of GST for various businesses:

If you own a business then you might have already registered for GST. GST on services would be now levied by both state government and central government. The taxes will be flowing from the place of consumption and will be received by consuming state. Some services like doctors, Para-medical services and educational services are already exempted from indirect taxes hence they are exempted from GST.

Should You Voluntarily Opt for GST Registration?

The small businesses whose turnover is less than 20 lakhs (10 lakhs in north east states) and the supply is within the state have the option of registering for GST. It is not mandatory for them to get registered. The GST has laid down that if the GST registered buyer purchases goods from unregistered sellers then they will have to do full GST compliance towards payment of the tax and return filing on behalf of unregistered seller. The GST consultant in Chennai helps for registration.

So getting registered with GST voluntarily is a good idea but the same time it comes with the cost of being complaint as well adopting technology as means to do business.

Source : http://managemygst.com/