- Goods and Services will be taxed with both CGST and SGST. In case of interstate trade of goods and services, IGST will be levied. IGST will be collected by Central and distributed with the State and this will lead to a seamless national market with less compliance. Zero Rated Exports and free movement of goods and services will help the businesses especially retail and trade.
What is goods and services tax (GST)?
It is a destination based tax on consumption of goods and services. GST levied on all stages from the manufacturing of product to consumption by final consumer. On every stage tax applies and registered dealer takes input credit of taxes paid at previous stages for the purpose of setoff. Only additional cost in product will be liable for tax and cost bear by the final consumer.
What is advantage of taking registration in GST?
Yes, a small business can get its business register under private limited company registration in india. It provides the credibility and an image of their business in the eye of the financial institution, suppliers and potential clients. It helps the company to get the loans at little compliance from banks or potential party while entering into the deals..
Is there any high qualification required to become a director or shareholder in the private limited company?
Registration under goods and service tax will provide various advantages to the business like legally recognized as supplier of goods or services, and it reduces the possibility of double taxation.
Can a person is eligible to claim credit of input tax without GST registration?
A person is not allowed to claim any tax credit as input tax until his business is registered under GST. Only registered person having GSTIN for his business is eligible to claim credit of GST that is already paid on purchases by him or charge taxes on supply of products.
Is it important to take different registrations for every business if a person deals in several businesses in a state?
A person having numerous businesses in a particular state may obtain a distinct registration document for each business separately, subject to conditions as may be prescribed by GST law. .
Once the business is registered under GST, is it permanent registration certificate?
Yes, when we got registration certificate from GST department. It will be treated as permanent unless submitted, cancelled, postponed or withdrawn..