Goods and Services Tax (GST) is a comprehensive indirect tax system implemented to streamline taxation in India. Introduced in 2017, GST aims to replace multiple state and central taxes, ensuring a uniform and transparent tax structure across the country. It eliminates the cascading effect of taxation, reducing the overall tax burden on consumers and businesses. GST registration is a legal requirement for businesses meeting specific criteria, and it offers various benefits such as input tax credit, legal recognition, and seamless inter-state trade. Moreover, it enhances tax compliance through a digital framework, simplifying the process for taxpayers.
When is GST Registration Mandatory?
Businesses with an annual turnover exceeding ₹40 lakhs for goods providers and ₹20 lakhs for service providers
Individuals engaged in inter-state taxable supply
Casual Taxable Persons involved in taxable supply.
Entities obligated to pay tax under the reverse charge mechanism.
E-commerce operators responsible for tax payment under Section 9(5).
