The Goods and Service Tax or GST is a taxation system wherever there's one tax within the economy for goods and services. This taxation system is supposed to make one taxation system within the entire country for all product and services.
The introduction of the Goods and Service Tax (GST) can please most Indian businesses. It hugely simplifies issues for near to any business that needs to cope with VAT, CST, Octroi, Service Tax and even a couple of alternative taxes (pretty a lot of all Indian businesses). The Goods and Service Tax will be a new taxation system which will, cover the whole indirect taxes that were being levied by the government.
GST will be imposed during the consumption, and also the net tax will be calculated when accounting for all the taxes paid on input, even as within the case of VAT. The idea behind Goods and Service Tax (GST) is to bring all businesses, freelancers and consultants beneath one legal system, whether or not they sell any product or services.
Further, GST registration is mandatory once an entity crosses the minimum threshold turnover of starts a new business that is expected to cross the prescribed turnover. As per the GST Council business with an annual turnover of Rs.10 lakhs and above would be required to obtain GST registration. For all other entities in rest of India would be required to obtain GST registration, if annual turnover exceeds Rs.20 lakhs. Entities required to obtain GST registration as per regulations must file for GST registration within 30 days from the date on which the entity became liable for obtaining GST registration.