GOODS AND SERVICE TAX REGISTRATION

Goods & Services Tax (GST) is an indirect tax which is levied in almost all the goods and services across the country. It is enforceable as on 1st July 2017 in the whole country under Goods and Services Tax Act, 2017, before the commencement of this act there are many other acts which were leviable on different stages of goods production and services. The main objective of this act is to remove double taxation and make taxation simple and easier. There is only one intention to bring this act is “ONE NATION ONE TAX.” Before commencement of this act, every state has their taxation law for goods and services, so sometimes it will create confusion among the traders when they trade their goods or services from one state to another. GST registration is mandatory for those traders or service providers whose turnover exceeds the value of Rs. 20 Lakh. However, for North East India and the Hill States, the amount is Rs. 10 Lakh; and who has registration in earlier laws like VAT registration, Service Tax Registration, License under Excise law, etc; and those who are involved in an interstate transaction. Now due to this act, this kind of issues are abolished now the trader can easily transact his business from one state to another without having any taxation complexity. There is a different category of the tax rate for the different class of goods and services. There are four categories to tax slab, and these are; 5%, 12%, 18%, and 28%.