The biggest indirect tax reform which has taken place in our country since Independence is the inception of GOODS & SERVICES TAX. Various Indirect taxes like Service Tax, Central Excise, VAT, CST, Entry tax etc have been subsumed in Goods & Services Tax. Inception of GST is the 101th amendment in our Constitution. The ceiling which has been prescribed in GST beyond which a Person has to get registered in GST is Rs 20,00,000. (Rs 10,00,000 for North Eastern and Hilly states). However registration in GST is mandatory for the following class of persons:
a) persons making any inter-State taxable supply. b) casual taxable persons c) persons who are required to pay tax under reverse charge. d) non-resident taxable persons. e) persons who are required to deduct tax under section 37. f) persons who supply goods and/or services on behalf of other registered taxable persons whether as an agent or otherwise. g) input service distributor. h) persons who supply goods and/or services, other than branded services, through electronic commerce operator. i) every electronic commerce operator. j) an aggregator who supplies services under his brand name or his trade name.
So we can conclude that arrival of GST has brought a win -win situation in the economy of India. It has enhanced the credibility of our tax structure in the Global platform. So we should take up the challenge and embrace it with our both hands…. you are most welcome “GST”.