From 1 July 2017, GST replaced most indirect central and state level taxes such as VAT, ServIce tax, Excise, etc. Under the guidance of ClearTax experts, get your company compliant with GST, and file periodic returns. Get Compliant with GST registration!
What are the components of GST?
GST will have three tax elements, including a central component (Central Goods and Services Tax or CGST) and a state component (State Goods and Services Tax or SGST) where all entities will be paid GST by the center and state, i.e. when a transaction occurs within a state. The Integrated Goods and Services Tax (IGST) to be imposed by the center would attract inter-state transactions, i.e. when a transaction happens from one state to another.
Who needs a GST Registration?
Any company or corporation engaged in the purchase and sale of products and services must register for GST. Registration for a GST is mandatory for companies whose turnover exceeds Rs.20 lakhs (for the supply of services) and Rs. 40 lakhs (for the supply of goods) annually.
All companies making outward deliveries of goods from the interstate must also apply for a GST. The same applies to undertakings which supply taxable goods on behalf of other taxable persons, such as agents and brokers.
Also, if total sales are less than Rs.20 lakhs, e-commerce sellers/aggregators need not register, as per the recent notification.
What is the GST registration process?
As a regular taxable entity, enterprises whose revenue exceeds Rs. 40 lakhs * (Rs 10 lakhs for NE and hill states) are required to register under the GST Regime. This registration process is called GST registration. Usually, GST registration takes from 2-6 working days.
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