What is Goods and Service Tax (GST)…???

  • GST is a value-added tax applied on goods and services. GST provides a long and continuous chain of tax offsets. The GST paid on the acquisition of goods and services can be used as an input tax credit by the supplier at each stage. The business can use this Input Tax Credit (ITC) to offset the GST due on the upcoming supply of goods and services.
  • The set-off of tax paid on purchases against the tax received on sales is known as input tax credit. Only the remaining tax balance must be paid.

In the GST framework, there is no cascading effect on tax implications. The term “cascading impact” refers to a system in which tax is collected at each stage, with the tax previously paid on purchases factored in. This results in taxation on top of taxation.

How to Register for GST ?

Registration is the most important need in any tax system for identifying taxpayers who are complying with tax laws in the economy. A person cannot collect tax from his clients or claim a credit for tax paid if he is not registered.

The provisions for registration of a person under GST legislation are prescribed by sections 22 to 30 of the CGST Act, read together with ‘Chapter III- Registration’ of the CGST Rules.

Persons Responsible For Registration

If a supplier’s “aggregate turnover” in a financial year exceeds the following amounts, he must register in the State/Union Territory from which he makes a taxable supply of goods and/or services.

According to Section 22 of the CGST Act:

  • Rs 40 lakhs in the case of a supplier of goods;
  • Rs 20 lakhs in the case of a service provider;

Time limit for applying for registration

Every person who is required to register must do so within 30 days of the day on which he or she becomes required to register.

Registration effective date

The effective date of registration is the date on which he becomes liable for registration if an application for registration is received within the prescribed time limit of 30 days.

The effective date of registration is the date of grant of registration if an application for registration is received after the prescribed time limit of 30 days.

GST Registration is also undertaken with incorporation of Company