GST Full Form | GST Meaning | GST Benefits | GST Types

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What is full form of GST?

GST stands for Goods and Services Tax which is an Indirect Tax which has replaced many Indirect Taxes in India. The Goods and Service Tax Act was passed in the Parliament on 29th March 2017. The Act came into effect on 1st July 2017. GST is one indirect tax for the entire country.

GST meaning?

GST has removed its cascading effect as the tax is calculated only on the value-addition at each stage of the transfer of ownership. GST regime also brought a centralised system of waybills by the introduction of “E-way bills”. This system was launched on 1st April 2018 for Inter-state movement of goods.

GST Registration?

If a business operates from more than one state, then a separate GST registration is required for each state. A business with multiple business verticals in a state may obtain a separate registration for each business vertical.

GST Registration is a turnover based registration. Businesses whose turnover exceeds Rs. 40 lakhs* are required to register as a normal taxable person. (Rs. 10 Lakhs for North-Eastern States, J&K, Himachal Pradesh and Uttarakhand). *CBIC has notified the increase in threshold turnover from Rs 20 lakhs to Rs 40 lakhs. The notification is into effect from 1st April 2019.

Small businesses having an annual turnover less than Rs. 1.5 crore** (Rs. 75 Lakhs for NE States) can opt for Composition scheme. Composition scheme is not applicable to Service Providers, Inter- State sellers, E-commerce sellers, supplier of non-taxable goods, manufacturer of Notified Goods.

**CBIC has notified the increased in the threshold turnover for opting into the Composition Scheme from Rs 1 crore to Rs 1.5 crores. The notification is effective from 1st April 2019.

GST Types?

The different types / categories of GST are CGST or Central Goods and Services Tax, SGST or State Goods and Services Tax, IGST or Integrated Goods Services Tax, and UGST or Union Goods and Services Tax.

IGST or Integrated Goods and Services Tax is collected by both Central and the State Government as per the prefixed revenues. This GST bill is collected in case of inter-state transactions.

Who should register under GST?

  • Casual taxable person / Non-Resident taxable person
  • Every e-commerce aggregator
  • Individuals registered under the Pre-GST law
  • Person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered taxable person.

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