Before we start the topic, it is imperative for us to know about the models of this newly introduced taxation system; i.e., SGST, CGST, and IGST. Central GST which is commonly known as CGST is the tax regime which comes under the central government. When it comes to the state government, it is regarded as State GST or SGST. Integrated GST implements the movement of goods within the states of the Indian union. The IGST is likely to collect by the union and transferred to the states.
Also read: GST Will Take India To Endless Possibilities
What is GST registration?
A business with an aggregate turnover of 2 million or more is subjected to get a PAN across the country. In this context, the owner will need to register his/her business under GST. This policy which applies to MSME business has been mentioned in section 24 of the CGST Act, 2017. Well, there are a certain set of exceptions to this rule. A businessperson who has 2 or more one million supplies (collectively above 2 million) would be required to register under GST. A micro, small, or medium enterprise can avail threshold exemption should not make any inter-State supply whatsoever, though the trade may receive supply from other States.
Input Tax Credit in GST
If you are doing business, you must be purchasing goods/availing services for making further supplies in the forward movement of your business. In such instances, you are supposed to pay tax to your supplier. Since the tax is collected, your supplier can avail credit of the tax paid by you. It means he/she can use this amount for making payment of tax for further supplies.
The possibility of making supply if the registration is not made
Is there any chance for you to make supply if the registration is not made by you earlier? Yes, you may continue your supply chain without GSTIN. In this context, we would like to give you some suggestions as well. You should get your application reference number (ARN) from the GST common portal. And, you should obtain it as early as possible. No need to interrupt your business anyway. If the turnover of your micro or small business has crossed the boundary of 2 million, you must apply for registration within a month. You will be able to issue invoices after the record is made under Section 24 of the CGST Act, 2017.
GST registration will replace
The implementation of this new format has replaced a wide range of indirect taxes that includes Service Tax, Central Excise Duty, Special Countervailing Duty, Entertainment Tax, Purchase Tax, Value Added Tax (VAT), Central Sales Tax (CST), Countervailing Duty, Octroi, Entry Tax, Advertisement taxes, Luxury Tax, and Gambling Taxes.