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On 1st July 2017, Goods and Services Tax (GST) was introduced by the Indian government to subsume different types of State and Central level taxes such as Service Tax, Excise, State & Central VAT, luxury tax, entertainment tax, etc. to offer a consolidated tax structure. This step is aimed to introduce much-needed tax reforms in the Indian tax structure by reducing tax complexities and making the filing of GST returns a completely online process.
Goods and Service Tax (GST) is a destination based tax on consumption of goods and services. It is levied at all stages right from manufacture up to final consumption with credit of taxes paid at previous stages available as setoff (Input Tax Credit). In a nutshell, only value addition will be taxed and burden of tax is to be borne by the final consumer.
Every supplier whose aggregate turnover exceeds Rs. 20 Lacs in a financial year is liable to get himself registered within 30 days, in a State from where he makes taxable supplies. Further, a casual taxable person or a non-resident taxable person shall apply for registration at least 5 days prior to the commencement of business. Entities located in special category states that have an annual turnover of Rs. 10 lacs are mandated to have GST as well. Those entities which are involved in the sale of goods and services via an e-commerce platform must also register for GST, irrespective of their annual turnover. Apart from this, any person making interstate sales also needs to register for GST.
We at S.V.Bhat & Co help the entities to obtain new registration, voluntary registrations and amendment of existing registrations, return filings- monthly, quarterly, annual as well as GST Audit and assessments. Our team is well versed with GST matters. In case, you need these services, we would be glad to assist you. Please write to [email protected].
No. Every person will have to get registered separately for each of the State from where he makes taxable supply if he is liable for registration in terms of section 22(1) of the CGST Act.
Yes. As per proviso to Section 25(2) of the CGST Act, a person having multiple business verticals in a State or Union territory, may obtain a separate registration for each business vertical, subject to such conditions as may be prescribed.
In terms of Section 25(4) of the CGST Act, 2017, every person who is required to obtain separate registration for every branch located in different state or union territory shall be treated as distinct persons. Accordingly, the supply of goods (stock transfers) to a branch located outside the State would qualify as supply, liable to tax in terms of clause 2 to Schedule I of the CGST Act, 2017. Further, it is important to note that, supply of goods to a branch / unit located within the same State having separate registration would also be liable to tax since both such units (supplying unit and recipient unit) would qualify as distinct person in terms of Section 25(4).
Generally, the person effecting taxable supplies is liable to pay taxes. However, Import of service will be taxable in the hands of the recipient i.e., importer.