Goods and Services Tax (GST) is a comprehensive, multi-stage, destination-based tax levied on every value addition in India. It is a single indirect tax that has subsumed many other indirect taxes such as VAT, service tax, and excise duty. GST is applicable to all goods and services except petroleum products, alcoholic drinks, and electricity.
GST registration is a crucial step for businesses operating in India, ensuring compliance with the tax laws and enabling smooth operations across the country. It brings numerous benefits but also comes with responsibilities that require regular adherence to avoid penalties.
Businesses : Any business with an annual turnover exceeding ₹20 lakhs (₹10 lakhs for special category states) must register for GST.
Service Providers : Service providers with a turnover exceeding ₹20 lakhs must also register.
Interstate Businesses : Businesses involved in interstate supply of goods and services must register, regardless of turnover.
Casual Taxable Persons : Individuals who occasionally supply goods or services in different states where they don’t have a fixed place of business.
Non-Resident Taxable Persons : Non-residents who supply goods or services in India.