The biggest ever tax reform in India has eased everything and the essence of GST is to create a single tax collection system across the nation in order to increase the taxpayer base and it completely avoids the tax complexities. “Integration of multiple taxes into a single system” is what we called as GST.
Biztone guide you to complete your GST registration very shortly and further follow ups can be done with our professional team. We are providing our GST registration service in Coimbatore, Trichy, Tirupur, Karur, Madurai and Chennai.
The Goods and Service Tax (GST) applies to all service providers, manufacturers, and traders etc. GST includes a variety of central taxes like (CST, Excise duty, service tax) and state taxes like VAT, entertainment tax, luxury tax etc.
In case of goods, business with a turnover exceeds 40 lakhs are required to register under the GST regime. In case of services, turnover which exceeds Rs.20 lakhs needs to register under the gst regime.
Why we need to go for GST registration?
By registering under GST is a necessary one in India for individuals and entities who supplies goods or services. It is mandatory for you to register for GST in case your annual turnover exceeds the threshold limit specified for the registration. If a business fails to register under the regime, then they have to face the penalties and fines.
Who needs GST?
Types of GST:
GST has three main components; they are “State Goods and Service Tax (SGST), Central Goods and Service Tax (CGST) and the Integrated Goods and Service Tax (IGST)”.
CGST is a tax levied on intra state supplies of both services and goods by the central government and that will be governed by the CGST act.
SGST is also levied on the same intra state supply but that will be governed by the state government.in IGST
IGST is taxes levied on inter-state supply of goods and services and that will be governed by the IGST act. It is applicable to both the cases like import into India and export from India.
For both CGST and SGST, the transaction takes place inside a state wherein for IGST the transaction takes place between two different states.
What is Input Tax Credit (ITC)?
Input tax credit reduces the tax which you have already paid on inputs and pay the remaining amount at the time of tax paying. For instance, a chair manufacture gets credit for the taxes paid on the purchased materials where the final indirect tax liability on his products will be collected from the consumer. When comes to service provider, like a phone company get the credits for the taxes paid on the goods and services used in his business.