Six Basic Principles that everyone should Know About GST

1. Six Basic Principles that everyone should Know About GST The use of GST, which is considered the most critical fiscal reform in the country after independence, has a significant impact on our economic environment. However, a lot of people cannot decide how it will translate for them. Here we divide this new tax structure into seven simple questions and answers for understanding. 1.Does GST apply to you? GST is an indirect tax and applies to companies, freelancers and service providers. It does not apply to employees. 2.Do you need to register? You must register if it applies to any of the following situations: •If your annual sales exceed 20 million (10 million if you locate in the northeastern states). •Produces interstate sales, that is, in the same state and sells the goods to the recipient in another state. For example, you are in Chennai, and you are selling in Bangalore, so it is considered an interstate sale. •Sell online. You can sell on your website or through an operator, for example, Amazon or eBay. •Sell real estate on behalf of another taxpayer (that is, you are an agent). •You negotiate the return of goods/services when the buyer must pay taxes instead of the seller. 3.Who does not use GST? 1.GST does not apply to farmers. For example, if you plant and sell your flowers, GST is not for you. 2.If you are talking about free goods/services, GST is not for you. 3.What do you need to know about the GST registry? 4.You must register in each of the countries in which your company operates within 30 days after the day you are responsible for registration (for example, the day your annual income exceeds 20 million). 5.You must request a separate entry for each state because the state records the state of GST. 6.The GST registration number (GSTIN) base on NAP and, therefore, NAP is a prerequisite for registration. 7.You can also participate in GST, even if your account has less than 20 million. It will help you avoid restrictions, such as interstate sales, without online sales. 4.What is a "casual collaborator"?

2. A person who from time to time provides goods and services in a jurisdiction where a value- added tax applies but does not have a branch in that state is considered an accidental payer. For example, a person based in Mumbai offers counseling services in Aligarh (where he does not have the funds), so he is considered an incidental participant in Aligarh. 5.Who can take GST? Only a registered taxpayer can return the GST. You must indicate the amount of GST in the fiscal accounts. 6.Situations in which returns apply •The unregistered seller sells to the registered distributor: in this case, the certified distributor must pay GST upon delivery. If you are registered for GST and purchased it from an unregistered seller, a refund will make, which means that, as a buyer, you will have to pay GST. •Services provided by the electronic commerce operator. If the e-commerce operator offers services, the e-commerce operator will bill. He is responsible for GST. About the Author The article has been written by Princy Gupta, a reputed Chartered Accountant in Delhi, India. She operates a chartered accountant's firm named Starters' CFO Pvt. Ltd. in New Delhi and always shares a industry updates with her articles. Starters' CFO Pvt. Ltd. is a leading professional consultancy firm rendering comprehensive professional services with the aim of providing a comprehensive range of accounting, financial and legal consulting, tax management, etc.