5 General Queries about GST

If you’re running a business, it’s certain that you have to get registered under the new tax regime. However, there are some conditions fulfilling which you can register yourself in the recommended schemes of GST. Previously, business persons used to pay multiple complex taxes including VAT, excise DUTY, custom duty, service tax, entertainment tax and the list goes on. 

Now, after the implementation of GST, taxation criteria have been sorted out and simplified as a unified tax. People are still unclear about the processes involved in the new taxation regimen. In this post, we list five general queries that a common man India is facing. Let’s take a look.

When is GST Levied?

The most common query of the population of India is that when is GST levied? The answer to this question is GST is levied on supply whether it is related to goods or services. The supply is not only restricted to products and services it can be related to anything such as barter, exchange, transfer rental, lease made to an agent or branch. Therefore, GST will be levied on such goods and services.

Types of GST

GST is a single tax that is levied on the supply of goods and services. However, it the amount paid under GST will depend on the type of supply whether it is inter-state or intra-state. If the supply is done from one state to another it is known as inter-state supply. It is also known destination-based supply. 

Those who deal with inter-state supply have to get registered under GST. However, supplies made outside India does not need to pay GST. In case of intra-state supplies, Center and State will levy GST.

Who need to Prepare for GST?

People who are running a business and there annual turnover is more than twenty lakhs and less than seventy five lakhs, they do not need to pay GST in large amounts. Instead they can get registered under the composition scheme of GST in which the tax has to be paid at a nominal amount. In case of e-commerce, in which you supply goods in different state GST registration online is mandatory for you.

Wrapping Up

GST being a single tax regime will reduce the complexity of taxation in India. There are many businesses that aren’t eligible for GST registration online and whose turnover is less than seventy five lakhs.

 If a person running a business and deals with intra-state supplies only, then that person voluntarily can get registered under the GST. Then new taxation reform is assumed to reduce the complexity and corruption.
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About Dhanur Chauhan

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