GST Knowledge Series

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The Goods and Service Tax or GST is a taxation system where there is a single tax in the economy for goods and services. This taxation system is meant to create a single taxation system in the entire country for all goods and services.

*Registration*

Registration shall be taken at the place from where the goods and service Jbs are supplied.

Liability to get registration after the aggregate turnover* in a financial year exceeds INR 9 lakhs
(INR 4 lakhs for North Eastern States).

However, tax liability shall arise only once the aggregate turnover* in a financial year exceeds
INR 10 lakhs (INR 5 lakhs for North eastern states).

*Following persons are Mandatory required to get registration without above limit:*

o Persons affecting Inter-state taxable supply;

o Where payment of tax is required under reverse charge;

o Non Resident taxable persons;

o Persons supplying on behalf of other registered taxable persons;

o Every Electronic commerce operator and persons supplying through such electronic
commerce operator;

o Persons on whom TCS/TDS is applicable;

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*TAX DEDUCTION AT SOURCE* (TDS)

*[SECTION 37 ]*

Tax may be mandated to be deducted @ 1% from the payment made to the supplier of taxable goods and/or services by the Central or State Government, Local authority, Governmental agencies, or such category of persons
as notified, if total value of such supply, under a contract, exceeds INR 10 Lakhs

Procedure for deposit of such tax and issuance of a credit certificate has been prescribed.

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Under GST Aggregate Turnover includes all Taxable, Non-taxable, Exempt Supplies, Exports of Goods and Services computed on All India basis for Single PAN. And Aggregate Turnover does not include Value of Supplies on which GST is payable on Reverse Charge basis and Value of Inward Supplies.
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*INPUT TAX CREDIT IN RESPECT OF INPUTS/CAPITAL GOODS SENT FOR JOB WORK*

*( S EC T I O N 1 6 A )*

Principal shall be be entitled to take credit of input tax on inputs / capital goods sent to a job-worker (either by principal or directly), if the said inputs capital goods, after completion of job-work, are received back by the principal:
-within 180 days in case of inputs
-within 2 years in case of capital goods

In case inputs / capital goods are not received in the aforesaid time frame, credit shall be reversed (along with interest), which can be re claimed at the time when inputs / capital goods are received back.