5 Basic Things about GST Everyone Should Know

If you are a merchant, there are almost certain taxes that you deposit other than income tax deposits. This may be in form of service tax, excise duty, VAT or custom fees, etc. These are called by almost all the indirect taxes taxes will be replaced by GST now.

You should know about following things:

When is GST Levied?

GST tax levy, under the point ‘of supply ‘ GST Act constitutes a supply which type? Supply means sale of goods and services. Supply of goods and services without actual sales can also be an agent or a branch in the supply, transfer, barter, Exchange, and includes rental and lease. So if you are a practitioner, who is involved in any of the above, the GST will replace all taxes that you purchased, and you supply the GST applies to the mandate. In this context the Government may notify certain services and items that will not be considered a supply and therefore they will not attract GST. The first step would be to recognize that is supplied by your business.

Types of GST

Once it has been established that is supplied by your business, the next step is that it supplies inter-State or intra-State. If the original state is different from the destination state, Interstate supplies. This is why GST is called the destination-based tax. Supply the Interstate essentially they register for GST. Most of the supplies at the rate of the destination state tax. India was out of supplies will not attract any GST, although these apurtion for GST registration is still required. Intra-State sales Central & State attracts the SGST and Levi CGST says. And will attract, which Interstate sale IGST CGST and is likely to be the sum total of SGST. IGST on imports will be levied.

Who Should Prepare for GST?

If you are existing tax or VAT or excise duty registrar, then you must register on the GST. If your turnover is less than 20 million (10 million bucks for North eastern States) then GST registration is not mandatory. However this limit is not considered, if the business is involved in inter-State transactions. Then GST registration is mandatory.

GST Applicability for Various Businesses

As a merchant, you may have already registered under the VAT, so you will have to register for GST. GST on the supply you made in the first phase for the payment of GST paid tax will allow to close. Manufacturing also stands to benefit by registering, because they are no longer paid on input against output on the GST can be adjusted. As far as service providers are concerned, many of the existing rules, the GST will flow. However, the services shall be construed by both State and Central. Service provider paid tax on input items set-off will be able to claim, which already was restricted to only the input services. The exemption from service tax doctors, para-medical services and education services such as some services can be relieved even under GST.

Should You Voluntarily Opt for GST Registration?

Many small business are below the range of the business and Interstate supplies, have the option of signing them voluntarily. If you are the buyer GST may also help. In this way, your buyer paid you for your input will be able to take credit for taxes GST Act has requested that if registered buyers were registering vendors without shopping, they must complete GST compliance, pay taxes and enrolled back on behalf of unregistered sellers. With every buyer and seller on the Board, like one of your own with benefits GST Club, but at the same time to adapt to the technology business as well as the price of keeping correspondence will come.