Launched on July 1 2017, the Goods & Services Tax (GST) applies to all Indian service vendors (including freelancers), traders and manufacturers. The GST is an all-in-one tax that subsumes a range of nation (VAT, Entertainment Tax, Luxury Tax, Octroi) and central taxes (CST, Service Tax, Excise Duty). GST is to be charged at every step of the supply chain, with full set-off benefits available. The system for GST is totally online and requires no manual intervention.
Every business or corporation that are concerned in the buying and selling and suitable of offerings has to register for GST. It is mandatory for companies whose turnover is more than Rs.20 lakhs (for supply of services) and Rs. 40 lakhs (for supply of goods) yearly to register for a GST.
All groups making interstate outward supplies of goods have to register for a GST too. The same applies to businesses making taxable supplies on behalf of other taxable persons, example Agents and Brokers.
Also, as per the recent notification, e-commerce sellers/aggregators want not register if total sales are much less than Rs.20 lakhs.
