The Goods and Services Tax or GST is a tax that is indirectly collected in India in the form of consumption tax based on the supply of different goods and services. The goods and services tax is a comprehensive design of tax which can act on multistage platforms and is mostly based on the destination.
The goods and services Tax of India is charged on the basis of the product which is consumed by the end customer. It is a very important tax that can overrule most of the other indirect taxes of India. It is essential that a person whose business turnover is more than 20 lacs INR per annum in terms of services and 40 lacs INR per annum in terms of goods, to get a GST certificate for the business.
All manufacturers and suppliers of goods and/or services are obliged to register themselves for Goods and Service Tax (GST) under the GST Act. This new form tax regime which came into effect from July 1, 2017, encompasses all the indirect tax categories like service tax, entry tax, sales tax, excise duty, and customs duty into a single tax scheme.
In a tax structure, the primary thing is the identification of a tax-paying person. If you are a goods or service provider you should get the registration done under GST to avail benefits under state and central government.
In any tax system, the identification of a taxpayer is the fundamental requirement that ensures tax abidance in the economy. As a goods and services provider, registering any business entity under the GST law means acquiring a remarkable number that enables you to enjoy the function of collecting taxes on behalf of the government. The credit to collect tax can be claimed only when they are registered.