The GST came into effect from July 1, 2017 through the implementation of 101 Amendment of the Constitution of India by the Government of India. This tax regime replaced existing multiple cascading indirect taxes levied by the central and state governments and brings uniformity in tax rates and tax structure across states.
GST is introduced as an unified indirect tax only, leviable in India on the supply of goods or services or both except taxes on supply of the alcoholic liquor for human consumption.
GST is levied at every step in the production process, but is refunded to all parties in the chain of production other than the final consumer. Thus, GST is basically a destination based tax as levied at a single point at the time of consumption of goods or services by the ultimate consumer.
At present, If any person / entity falls in the under mentioned exhaustive list of compulsory registration, the supplier has to get registered in such manner as prescribed:
Under GST, small businesses(Only Manufacturers of goods, Dealers, and Restaurants (not serving alcohol) with a turnover upto Rs 1.5 crore have been given benefit by giving them Option of Composition Scheme which gives an option to lower tax rates
This will brought down the tax and compliance burden on many small businesses.
|Type of Business||Menufacturer and Traders (Goods)||Restaurants not serving slcohol|
Every person who is liable to be registered has to apply for registration in relevant State (from where he makes a taxable supply of goods or services or both), within thirty days from the date on which he becomes liable to registration. Registration number in GST will be PAN based and therefore, having PAN would be a prerequisite for obtaining registration.
The assessee must obtain separate registration for each State if operates in multiple states, as registration under GST will be State-wise.
The assessee has also an option to obtain a separate registration for each of the ‘business vertical’ in the same State, if operates from multiple places in same state or can obtain single registration in One state for multiple place of business.