What is GST?
The goods and services tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption. It is a destination based tax on consumption of goods and services. The tax came into effect from July 1, 2017 through the implementation of One Hundred and First Amendment of the Constitution of India by the Indian Government. The tax rates, rules and regulations are governed by the GST Council which consists of the finance minister of central and all the states. GST tax rates vary from 0% – 28% depending on the type of service or Nature of Goods Your business is selling.
As per the changes in the 32nd council meeting, the threshold limit for GST registration is 40 lakhs for the supplier of goods and 20 lakhs for the supplier of services. Along with that, the North-Eastern States have an option to choose between 20 lakhs and 40 lakhs. Once you have registered under this regime, you will receive a unique GSTIN (Goods and Service Tax Identification Number). There are various advantages of GST registration. You can also avail input tax credit and collect GST from recipients of goods and services.