Goods and Service Tax (GST) is a destination-based tax on consumption of goods and services. It is levied at all stages right from manufacture up to final consumption with credit of taxes paid at previous stages available as setoff. In a nutshell, only value addition will be taxed and burden of tax is to be borne by the final consumer.
Businesses above the threshold limit of ₹40 Lakhs for goods and ₹20 Lakhs for services are required to register under GST mandatorily. The turnover is ₹20 Lakhs for goods and ₹10 Lakhs for services for businesses that are present in hill states and North-Eastern states. The GST registration process is completed within 6 working days. After completing the GST registration process, the Central Government provides a Goods and Service Tax Identification Number (GSTIN). The unique 15-digit GSTIN is used to determine whether a business is liable to pay GST.
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