An Overview of GST

  • Blog|GST & Customs|
  • 793 Views
  • |
  • 2 Min Read
  • By Taxmann
  • |
  • Last Updated on 18 July, 2022

The main objective of GST is to remove cascading effects of taxes and keep a check on the unorganized sector by regulating it. How a person would assess whether he is liable to pay taxes in GST or not.

What are the benefits of GST? 

The major benefits of GST are:

    1. Make compliance easy by providing all taxpayer services like registration,  returns, payment etc. online through use of Information Technology.
    2. Same tax structure across the country making One Nation, One tax.
    3. Seamless flow of credit of all taxes paid in earlier stage and therefore reduce inflation by removing cascading effect.
    4. More transparency in “Doing Business” and creating competitiveness in Industry.
    5. Uniformity of taxes and Compliances will reduce compliance costs for the industry.
    6. Fewer chances to avoid taxes and more control over tax evaders will help in better administration.
    7. More revenue collection and decrease cost of collection due to the use of IT by GSTIN.
    8. The tax burden will reduce due to seamless credit and prices of commodities and services will reduce eventually.
Buy Taxmann's GST Made Easy – Answer to all Your Queries on GST

 

Read also: What is GST

When would one be liable to pay taxes under GST? 

A person would be liable to pay taxes if he is registered or liable to be registered under GST. A person would be liable to be registered in GST:

  1. If he is mandatorily required to be registered under GST
  2. If he is making a taxable supply of goods or services or both and his aggregate turnover under the same PAN in the entire country exceeds the threshold limit as provided in GST. The threshold limit in GST is Rs.10 Lakh/ 20 Lakh (for persons in Specified States/Non-Specified States) for persons having only within State supplies and there would be no threshold limit for persons having Inter-State Supplies.

The concept of liability of a person liable to pay tax in GST revolves around a registered person or person liable to be registered under the law.

What would be the time limit for registration in GST once a person is liable to pay taxes in GST? 

A person would have to register himself within 30 days from the day when he becomes liable to be registered. He can also register himself voluntarily under GST.

Also Read:
GST Tax Rate: What are Rate of Taxes under GST?
GST Registration Online
Types of GST in India

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Leave a Reply

Your email address will not be published. Required fields are marked *

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied