GST is a single tax on the supply of goods and services, that makes India one unified common market. GST is essentially a “tax only” on the value addition at each stage in goods/services supply chain. The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages.

As para 1 of Schedule III of GST Act, every supplier shall be liable to be registered under GST in the state from where he makes taxable supply of goods and/or services if his aggregate turnover in a financial year exceeds threshold limit as announced by GST Council on 24.09.2016 of:

  • Rs. 20 lakh
  • Rs. 10 lakh in North Eastern States including Sikkim

There are 3 taxes applicable under this system: CGST, SGST & IGST.

  • CGST: Collected by the Central Government on an intra-state sale (Eg: Within Maharashtra)
  • SGST: Collected by the State Government on an intra-state sale (Eg: Within Maharashtra)
  • IGST: Collected by the Central Government for inter-state sale (Eg: Maharashtra to Tamil Nadu
  • Every person who is registered under an earlier law (i.e., Excise, VAT, Service Tax etc.) needs to register under GST.
  • When a business which is registered has been transferred to someone/demerged, the transferee shall take registration with effect from the date of transfer.
  • Anyone who drives inter-state supply of goods.
  • A person who occasionally supplies goods and/or services in a territory where GST is applicable but he does not have a fixed place of business. Such a person will be treated as a casual taxable person or as a non-resident taxable person as per GST.
  • Agents of a supplier.
  • Those paying tax under the reverse charge mechanism.
  • Input service distributor i.e an office of the supplier of goods/services which receives tax invoices on receipt of input services and issues tax invoices for the purpose of distributing the credit of CGST/SGST/IGST paid on the said services to your branch with same PAN.
  • E-commerce operator or aggregator.
  • Person who supplies via e-commerce aggregator

Person 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