Devsrijan
asked
Starting a new business in India, currently have to get VAT registration from the State Sales Tax Department. Each State has different procedures and fees for VAT registration. VAT registration and VAT payment is mandatory once a business crosses an annual turnover of Rs.5 lakhs in few other states. Once GST implemented, businesses with turnover of less than Rs.10 lakhs per annum not have to register for GST. But aannual sales turnover of Rs.10 lkhs to Rs.50 lakhs may have to pay GST only at lower rate. Therefore how does GST work for my Business?
kanakkupillai
answered
The GST or Goods and Service Tax is the replacement of the Value-added Tax (VAT). It is proposed to be a unified tax which reduces the number of indirect taxes which was followed before. GST is imposed on all manufacture, sale and consumption of products also as services at the national level. It is the replacement of all indirect taxes levied on commodities and services by the State and Central government of India. It is considered that implementation of GST in the Indian Market is a historical tax reformation, as it holds many advantages and it also has some demerits.
To get your File GST Return Online with the help of Professionals do visit: kanakkupillai.com
Riya Sharma
answered
I have started a new website along with my friends while doing CA final year. I always had this question with GST coming in and ever changing company laws in India, if we are breaking some law without having registered GST. But recently, when confirmed with one of the reputed CA, we came to know that if your turn over is less than 10 lakhs per annum no need of GST. Got another confirmation from Devsrijan's post above.
Catherin Paul
answered
Businesses have to charge and collect GST on all taxable goods and services supplied to consumers. Only businesses registered under GST can charge and collect GST. Businesses are allowed to claim whatever amount of GST paid on the business inputs by offsetting against the output tax.
LegalWiz.in
answered
VAT has merged in the GST. Further, GST registration is mandatory for following persons.
- Inter-state supply of goods
- Intra- state supply of goods exceeds 40 lakh
- If supply of services exceeds 20 lakh
- E-commerce operator
- Input service distributor
- If the supplier is a non-resident taxable person
- A person who is required to pay tax under the Reverse Charge mechanism
- Any other person as notified by the government
For more information connect with the experts at LegalWiz.in
