GST (Goods and Services Tax) is the prodigious indirect tax reform in India. GST is an individual tax on the supply of goods and services. It is a destination based tax. GST has subsumed taxes like Central Excise Law, Service Tax Law, VAT, Entry Tax, Octroi, etc.
GST is a comprehensive indirect tax levy on manufacture, sale and consumption of goods as well as services at the national level. It will replace all indirect taxes levied on goods and services by states and Central. Businesses are required to obtain a GST Identification Number in every state where they are being registered.
Who need to mandatorily obtain GST Registration?
The following categories of persons are required to obtain registration compulsorily under this Act:
If making any supply of inter-State taxable goods;
Casual taxable individual/s making taxable supply;
If liable to pay tax under reverse charge;
If required to pay tax under section 9 (5) (“electroniccommerce operator”)
If Non-resident is making taxable supply;
If required to deduct tax under section 51 (Tax Deduction at Source);
If providing goods or services or both on behalf of other registered taxablepersons whether as an agent or otherwise;
Input service distributor;
If providing goods and/or services, other than supplies specified under section 9 (5), through such electronic commerce operator who is required to collect tax at source under section 52,
Every electronic commerce operator;
If supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered taxable person;and
Such other person or class of persons as may be notified by the Central Government ora State Government on the recommendations of the Council.
Benefits of Registration under GST
Legalidentification and recognition as supplier of goods or services.
Proper accounting of taxes paid on the input goods or services which can be utilized for payment of GST, if due on supply of goods or services or both by the business.
Legally authorized to collect tax from his purchasers and pass on the credit of the taxes paid on the goods or services supplied to purchasers or recipients.