A person or firm who has a small business, traders, small shops and common people who are directly or indirectly part of GST because the registration of GST is based on State and PAN. Supplier has to register in each such State or Union territory from where he does supply if he fulfills any of the following conditions:
Under GST who is ‘taxable person’?
Any person who owns his business/firm at any of the state in India, who is already registered under the GST Act or yet required to be registered under the GST. Any person in india, who is involved in economic activity which consist of trade and commerce is considered as taxable person.
‘Person’ here includes individuals, HUF, LLP, company, firm, any corporation or Government company, an AOP/BOI, body corporate incorporated under laws of foreign country, local authority, co-operative society, government, artificial juridical person, Trust foundation.
So, it does not matter whether you are a registered company or not, if you are doing a business where annual turnover is more than 20 lakhs a year, you need to apply for GST.
Also, Even if A ‘taxable person’ sales are less than Rs. 20 Lakh, they have to voluntarily opt for GST registration because:
- They will not get any tax refunds on purchases (e.g. if you purchase goods which cost you Rs 50,000 in a financial year, and that has tax rate of 28% – you can not get tax refund of Rs. 14,000).
- They cannot sell outside their state, if not registered under GST.
In short, GST registration is a mandate requirement for anyone who is doing a business.
- GST is a major indirect Tax reform for the next 20-30 year.
- At least 8 to 11 fold increase is expected in the absolute taxpayers with the implementation of GST.
- 5 to 7 crore taxpayer are expected to be part of GST.
- The GST is primarily based on monthly tax filing mechanism with invoice level filing.
- Currently there are not enough Tax professionals and consultants available to serve this huge demand.
- Over 70-80% of the new taxpayer are going to be small business owners.
- Professional Tax consultants charge a minimum Rs. 25,000 to 35,000 per year for even a small business owner.
So you can imagine from above points, there is a HUGE GAP in demand and supply. There are limited amount of Professionals available in the market who can cater to these many ‘taxable person’ like: individuals, HUF, firm, company, LLP, any corporation or Government company, an AOP/BOI, body corporate incorporated under laws of foreign country, co-operative society, local authority, government, trust, artificial juridical person.
- GST Suvidha Kendra® is aimed to fill this gap with – Simple, Reliable and Affordable GST services by providing a Licence to GST Suvidha Kendra® Owner and back office support to GST Suvidha Kendra®. A GSK does not need to hire any accountant or professional. Moreover, It is not required to have GST knowledge to GSK owner. Everything will be done at our end (back office)
- GSK shall provide GST and income Tax related all compliance solutions in an affordable range of Rs 12000 to 15000.