Since the time the new tax regime has been announced, there have been a lot of speculations pertaining to the bodies on which it would be applicable. There are a lot of confusions regarding the various GST details. People are in ambiguity pertaining to the fact that whether or not their business would fall under the purview of GST. Before hopping on to who all are liable to register under the new regime, it is vital to understand what the new regime is all about.
What is GST?
GST is the most awaited tax reforms of the country which will subsume the various indirect tax reforms. It will make India a common unified market. GST details have been rolled out by the government and it will be levied on the supply of goods and services from the producer till the consumer. The new tax regime is being brought into existence to foster the objective of “One tax. One nation”. This will be extremely beneficial for businesses as they won’t have to pay multiple taxes to the centre and states. This will surely increase the ease of performing business while reducing the unnecessary formalities and paperwork at multiple points.
Who all are covered under GST?
There are numerous entities which will be falling under the purview of the new tax regime. Multiple businesses will benefit out of the advantages of GST and will be able to perform better in the longer run. There happen to be multiple factors which describe as who all are liable for getting registered under GST. Some of these factors are highlighted below.
- Any individual or business who is supplying goods and services which are worth more than INR 25 lakhs
- Any entity who trades sell goods and services outside the state
- Any individual or business who is required to pay taxes under reverse charge
- Any individual who is a non-resident taxable person
- All of the input service distributor
- Each and every e-commerce operator irrespective of the amount of revenues
- Any entity which supplies goods and services through the means of electronic commerce
- Any individual or business which is required to deduct TDS under GST
- Each and every aggregator who supplies services under his own brand name or trade name irrespective of the revenue limits
Surely, GST is the biggest tax reform of the country since independence. complete GST details and procedures have been very carefully crafted and will ensure the overall benefit of the economy in the coming times. It might cause a disruption initially, but the advantages of GST will be witnessed in the longer run.