What is GST (Goods and Services Tax)? | Types of GST | When is it required to register for GST?

by Ananya Nair Accounting and Legal Services

GST stands for the Goods and Services by name is well known by everyone, but there are few things regarding GST which is hardly known by anyone. GST came into existence on 1st July 2017 in India.

GST registration is necessary for the organizations whose turnover exceeds Rs. 40 lakhs (Rs 20 lakhs Northeastern States) is required to register its business as a tax liable person or business. This process is called GST registration.

GST registration normally takes between 2-6 working days. We’ll help you to register for GST in easy 3 steps.

GST Registration is an online procedure where the GST Law suggests that any business person ought to get a unique number by the authority.

This unique number is known as GSTIN which is a PAN-based 15-digit registration number and it is also possible to apply for a different GST Registration number for each state.

Types of GST

	CGST (Central Goods and Service Tax)	SGST (State Goods and Service Tax)	IGST (Integrated Goods and Services Tax)
Tax Levied By	Central Govt. on Intra-State Supplies of Goods and/or Services	State Govt. on Intra-State Supplies of Goods and/or Services	Central Govt., on Inter-State Supplies of Goods and/or Services
Applicability	Supplies within a State	Supplies within a State	Interstate Supplies and Import
Tax Revenue Sharing	Central Government of India	State Government of India	Shared between state and Central Govt. of India
Taxes that it will replace	Excise Duty, Service Tax, Countervailing Duty, (ADE) Additional Duties of Excise, (SAD) Special Additional Duty and any other Indirect Central Levy	Sales Tax, GST, Entry Tax, Purchase Tax, Entertainment Tax, Octroi Taxes on Lottery	CST (Central Sales Tax )
Free Supplies	CGST (Central Goods and Service Tax) is Applicable on Free Supplies	SGST (State Goods and Service Tax) is applicable to free supplies	IGST (Integrated Goods and Services Tax) is applicable to free supplies
Input Tax Credit	Against IGST and CGST	Against IGST and SGST	Against SGST, CGST, and IGST

When is it required to register for GST?

Annual Turnover above 40 Lakh (interstate business)
Annual Turnover above 20 Lakh (business in any special states)
Interstate Business
E-commerce Business
Required to pay under Section 9, sub-section (5)
Required to pay under reverse charge
Non-resident liable to pay taxes producing taxable supply

FinacBooks is a leading Indian portal offering accounting, finance and taxation services to small businesses in India. In case you need assistance with the GST Return or GST Registration Cancellation you can arrange a call from FinacBooks business advisors at 8800221252