GST
GST (Goods and Services Tax) is a unified, destination-based indirect tax that has replaced many indirect taxes like VAT, service tax, excise duty, etc. It is levied on the supply of goods and services across India.
Types of GST
▶ CGST:
⇒ Central Goods & Services Tax (Inter-State transactions)
▶ SGST:
⇒ State Goods & Services Tax(Intra-State Transactions)
▶ IGST:
⇒ Integrated Goods & Services Tax(Inter-State Transactions)
▶ UTGST:
⇒ Union Territory GST(In Union Territories)
Here's a simple chart outlining GST Limits in India based on turnover :
| Category | Threshold Limit for GST Registration | Applicability |
|---|---|---|
|
Goods (Normal States) |
₹40 lakh |
Mandatory if turnover exceeds this limit
|
|
Goods (Special Category States*) |
₹20 lakh |
Lower threshold for specific states
|
|
Services (All States) |
₹20 lakh |
Service providers must register if exceeding this limit |
|
Services (Special Category States*) |
₹10 lakh |
Lower limit for certain states
|
|
Composition Scheme (Goods) |
₹1.5 crore |
Voluntary scheme for small taxpayers
|
|
Composition Scheme (Services) |
₹50 lakh |
Available for service providers
|
Who Should Register?
- Businesses exceeding the turnover thresholds
- Inter-state suppliers
- E-commerce sellers
- Casual taxable persons
- Non-resident taxable persons
Composition Scheme
- Designed to ease compliance for small taxpayers
- Offers lower fixed GST rates
- Requires fewer return filings
▶ Eligibility & Rates:
| Type | Turnover Limit | GST Rate |
|---|---|---|
|
Goods Traders |
Up to ₹1.5 crore |
1%
|
|
Restaurants (not serving alcohol) |
Up to ₹1.5 crore |
5% |
|
Service Providers |
Up to ₹50 lakh |
6%
|