Question : What is the threshold for registration in GST ? Answer: A person having business which has aggregate turnover of more than Rs. 20 lakhs calculated for a given PAN across the country would need to register under GST. There are some exceptions to this rule as mentioned in section 24 of the CGST… Read More »
Question : Is GST going to increase compliance burden on the trade? Answer: No. On the contrary GST will result in streamlining of processes and reduction of compliance burden. GST is a simple tax which uniformly applies across the country. GST has been designed to have minimal human interface and would be implemented through strong… Read More »
Question : What is Input Tax Credit? Answer: A person doing business will be purchasing goods/ availing services for making further supplies in the course or furtherance of business. When such purchases are made by him, tax would have been charged by his supplier and collected from him. Since tax is collected from him, he… Read More »
Question : Who will pay GST ? Answer: GST is generally paid by the supplier, i.e. the one who makes the supply after collecting it from the recipient. The supplier collects GST from the recipient of the supply as part of the consideration. However, in a few exceptional cases, the recipient, would be liable to… Read More »
Question : What is destination based consumption tax? Answer: When a supply originates in one State and is consumed in another State, tax can accrue to either of the two States. In a destination based consumption tax, taxes accrue to the State where the supply is consumed. In origin based tax, the tax accrues to… Read More »
Question : Whether a registered person will have to approach two authorities – Centre as well as State for various permissions, audit etc. under the Act? Answer: No, a registered person will have to approach only one tax authority for all practical purposes. Each registered person would have one tax administration office, either of the… Read More »
Question : How many types of GST will be levied on different kinds of supply of goods or services? Answer: GST is a dual levy to be simultaneously levied by both Centre and State. On every supply within a State/ Union Territory without legislature (intra-State supply), GST levied will have two components – Central Tax… Read More »
Question : Will GST be levied on all goods or services or both? Answer: No, GST will not be levied on alcohol for human consumption. GST on Crude, Motor Spirit (Petrol), High Speed Diesel, Aviation Turbine Fuel and Natural Gas will be levied with effect from a date to be decided by the GST Council.… Read More »
Question : On what supply is GST levied? Answer: GST is levied on all types of supplies which are – (i) made for a consideration and (ii) are for the purpose of furtherance of business. There are some exceptions when these conditions are not met, yet supply is considered to have been made, for example,… Read More »
Question : What is GST? Answer: GST stands for Goods and Services Tax, which is levied on supply of goods or services. “Supply” is a legal term which has very broad sweep and various types of economic activities are covered by it. For example, sale of goods is a type of supply. GST on MSME… Read More »