Question: Who Is Liable For GST?

Who is not responsible for GST registration?

Section 23 (1) states that persons who are engaged in supplying goods or services or both that are not liable to be tax or persons who are engaged in supplying of goods or services or both that are wholly exempted from tax, then, such persons are not required to obtain GST registration..

Who is liable for GST in India?

According to GST Law of India, the supplier of goods or service is liable to pay GST. However, in specified cases like imports and other notified supplies, the liability may be cast on the recipient under the reverse charge mechanism.

Who is liable to pay GST on GTA services?

GST Rate 6% – Provided that the goods transport agency opting to pay tax @ 6% shall thenceforth be liable to pay tax @ 6% on all the services of GTA supplied by it….Goods Transport Agency (GTA) under Goods & Services Tax (GST)Sr. No.Service recipient6any partnership firm whether registered or not under any law including association of persons7any casual taxable person5 more rows•Feb 28, 2020

What is the GST rule?

In other words,Goods and Service Tax (GST) is levied on the supply of goods and services. … Under the GST regime, the tax is levied at every point of sale. In the case of intra-state sales, Central GST and State GST are charged. All the inter-state sales are chargeable to the Integrated GST.

Who is liable under GST?

Any person having aggregate turnover more than 20 lakh is liable to register under GST and hence needs to pay the tax as well.

Who is responsible for GST registration?

In the GST Regime, businesses whose turnover exceeds Rs. 40 lakhs* (Rs 10 lakhs for NE and hill states) is required to register as a normal taxable person. This process of registration is called GST registration. For certain businesses, registration under GST is mandatory.

Can we claim GST on freight charges?

Answer: The tax should be charged on the total value of supply. If the transportation cost is included, then GST has to be charged at the same rate of tax charged on supply. For example: If the goods being supplied is charged at 18%, then you have to charge tax on transport cost also at 18%.

How is RCM treated in GST?

A. The registered dealer who has to pay GST under reverse charge has to do self-invoicing for the purchases made. For Inter-state purchases the buyer has to pay IGST. For Intra-state purchased CGST and SGST has to be paid under RCM by the purchaser.

What is GST for retailers?

GST is a single tax on the supply of goods and services. That means the end consumer will only bear the GST charged by the last dealer in the supply chain. Several economists and experts see this as the most ambitious tax reform since independence.

How much GST do I pay?

For example, if a product or service costs Rs. 100 and the GST levied on that is 18%, the GST amount will be 100 x 18% = Rs. 18. The net amount you’d have to pay would be Rs.

Where is GST not applicable?

What goods and services are not covered under the GST? Items that are exempted from GST are live fish, fresh fish, bird’s eggs in the shell, fresh milk, fresh ginger, garlic, grapes, melon, unroasted coffee beans, unprocessed green tea leaves, etc. Corn, rice, wheat, maize, soybean, hulled cereal grains, etc.

Who pays GST seller or buyer?

The goods and services tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption. The GST is paid by consumers, but it is remitted to the government by the businesses selling the goods and services.

What is the limit for RCM under GST?

Rs. 20 lakhRegistration: A person who is required to pay tax under reverse charge has to compulsorily register under GST and the threshold limit of Rs. 20 lakh (Rs. 10 lakh for special category states except J & K) is not applicable to them.

Can I do business without GST?

Businesses and individuals are exempt from GST if their annual aggregate turnover is less than a specific amount. At the time of GST implementation in July 2017, businesses/individuals with annual aggregate turnover of less than Rs. 20 lakhs were allowed GST exemption. A lower limit of Rs.

What if GST is not paid by supplier?

An offender not paying tax or making short payments must pay a penalty of 10% of the tax amount due subject to a minimum of Rs. 10,000. Consider — in case tax has not been paid or a short payment is made, a minimum penalty of Rs 10,000 has to be paid. The maximum penalty is 10% of the tax unpaid.