The GST (Goods and Services Tax) is an indirect tax on the supply of goods and services. GST is a single indirect tax that replaces all previous indirect taxes and operates as a single indirect tax for the entire country. It operates on a destination-based, multi-stage tax system, with tax levied on each value addition.
Also Read: GST Registration
GST Act(s) in brief
GST is not the outcome of a single piece of legislation; rather, a number of central and state laws formed the groundwork for GST in India. The IGST (Integrated Goods and Service Tax) Act and the CGST (Central Goods and Service Tax) Act have been enacted by the Indian Parliament, while States and Union Territories (with legislatures) have enacted their own SGST (State Goods and Service Tax) Acts, which make up the overall GST framework. The fundamental goal of enacting GST was to abolish the old indirect tax regime’s cascading effect.
The Constitution gives both the Center and the States the right to levy and collect taxes in India, which is a federal country. In addition, in order to implement GST in India, a model that incorporated both the Center and the States in the process and administration had to be devised. As a result, a Dual Model was implemented, with administration split between the Center and the States in order to charge the tax at the same time. As a result, the model has two components: the first is a tax imposed by the federal government, and the second is a tax imposed by the state government. The following taxes are charged under GST, and they vary based on the location and nature of the supply:
Central Goods and Service Tax
State Goods and Service Tax
Union Territory Goods and Service Tax
Integrated Goods and Service Tax
The GST reforms indirect taxation and portrays the country as a single national market.
In both the global and domestic markets, GST improves the competitiveness of Indian goods, commodities, and services.
The GST exemption limit for small businesses and service providers has been raised.
The Composition Scheme of the GST gives benefits to small enterprises.
Because the number of tax returns filed under GST is lower than under the previous indirect tax regime, it has lowered tax compliance.
GST has an easy registration and return filing process because everything is done online.
Persons who are not required to register
A certain category of people is exempted under the Central Goods and Services Act of 2017. The following are exempt from GST registration:
Under the current GST framework, persons who are exclusively engaged in the business of supplying products or services, or both, are not liable to tax or are exempt from tax.
Agriculturists are likewise exempt from registration, but only to the extent that they supply agricultural produce.
Persons who have been exempted by the Central Government based on the GST Council’s recommendations.
What is the cost of GST registration?
The Government of India has not set a fee for GST registration, hence it is completely free. If you choose to use a professional service for registration, you will be charged a professional fee. The amount charged for professional services varies depending on who you approach and their level of experience. The charge for a professional can range from Rs. 1000 to Rs. 5000.
GST’s Composition Scheme
The implementation of the GST has ushered in a new era of company compliance. Large firms in India have the resources and experience to make compliance procedures easier, but small and medium-sized businesses find it challenging to comply with these standards. To ease the burden on small enterprises, a composition plan was implemented, in which a registered taxpayer is required to pay tax at a minimal rate based on their turnover.
Suggested Read: GST Return Filing