Launched on 1 July 2017, the Goods & Services Tax (GST) is applicable to all Indian service providers, traders, and manufacturers. This includes freelancers as well. It consolidates various Central and state taxes into one, making taxation more streamlined. For businesses with a turnover of less than ₹1.5 crore, there’s a composition scheme available to simplify GST formalities.
GST applies to multiple stages in the supply chain, from purchasing raw materials to the final sale to the consumer. Even if a product is produced in one state and consumed in another, the entire revenue goes to the consuming state. Also, e-commerce operators, non-resident taxable persons, and businesses engaged in inter-state supply or migrating from the old tax regime.
Any individual or business entity involved in taxable supplies of goods or services with an annual turnover exceeding ₹20 lakhs (₹10 lakhs for special category states) is required to register for GST.
Yes, businesses with a turnover below ₹20 lakhs can voluntarily register for GST to avail benefits such as input credit and a competitive advantage.
The required documents depend on the type of business entity. Common documents include PAN card, address proof, LLP agreement (for LLPs), and certificate of incorporation (for companies).
