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Does GST apply to you?

India’s tax laws went through a historic change on 1st July 2017, and is likely to benefit the entire country by widening the net tax. As with everything, GST requires our support, particularly every assesses under Central Excise and Service Tax need to migrate to GST by doing their enrollment on the GST portal.

Whether you run a small business or provide a service, you’re likely to be affected by GST.

You’re required to register for GST, in case all or any of the following is true.

  • If the turnover of your business exceeds Rs. 20 lakhs, its mandatory for you to register for GST. In special states (North Eastern), the turnover threshold is Rs. 10 lakhs.
  • Interstate supplier of goods/services need to register for GST.
  • A person who supplies and has no place of business.
  • Agents or people who act on behalf of supplier.
  • People paying tax under Reverse Charge Mechanism.
  • A non resident person who supplies and has no place of business.
  • If you’re a input service provider.
  • E-Commerce operator or an Aggregator supplying service under his brand name.

GST applies to all kinds of businesses, these include commerce, manufacturing, professions, vocation, trade or any other kind of business irrespective of its volume or frequency.

GST also applies to all kinds of services, and services means anything other than goods.

GST also applies to persons, this includes Individuals, HUF, Company, Firm, LLP, AOP, Co-Operative society, Societies, Trust etc.

However, the sector where GST does not apply is Agriculture, this includes floriculture, horticulture, sericulture, raising of crops, grass or garden produce. Agriculture does not include dairy farming, poultry farming, stock breeding, gathering of fruits or rearing of seedlings or plants.

Cases where registration of GST is necessary irrespective of turnovers:-

  • People making inter-state supply of goods/services.
  • A casual taxable person (any person who supplies goods/services in a taxable territory and has no fixed place of business). Registrations for casual taxable persons is valid for a period of 90 days.
  • People under Reverse Charge Mechanism, this means where the person receiving the goods/services has to pay tax instead of the supplier.
  • Agents making supply on behalf of other registered taxable persons.
  • E-Commerce operators- persons who supplies via an e-commerce operator.

Although, the turnover threshold required to register for GST is Rs. 20 lakhs. However, for certain states this limit is Rs. 10 lakhs.

Below is a list of all the states which are assigned a special status in the Goods and Services Tax regime:-

  1. Arunachal Pradesh
  2. Assam
  3. Jammu & Kashmir
  4. Manipur
  5. Meghalaya
  6. Mizoram
  7. Nagaland
  8. Sikkim
  9. Tripura
  10. Himachal Pradesh
  11. Uttarakhand

Please go through a thorough discussion with your accountant/CA before taking any step. Make sure you’re taxable under GST, know why you’re taxable. Also, we will be posting a step by step guide to register your business for GST. 

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