Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 28-2-2017 Last Replied Date:- 28-2-2017 – There are more than sixty million business enterprises in India with about just one million incorporated and few thousand listed companies. The majority of business are covered under SME or MSME segment including traders & retailers. This sector is mainly specialized in the production, trading and retailing of consumer commodities and providing services to consumers. The implementation of GST is certainly going to affect this sector and the employees associated with it. Under the present excise laws, no duty is required to be paid by a manufacturer having a turnover of less than ₹ 150 lakh. Under Service Tax laws threshold exemption scheme is available for small service providers having aggregate value of ₹ 10 lakh in the preceding financial year. Under Vat laws such exemption varies from State to State. Therefore currently small scale providers enjoy a basic exe
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ng to be beneficial to the small business as in GST many taxes will be subsumed leading to lesser taxes, lower compliance cost and above all, there will be no tax cascading. Taxable Territory Unlike the present Service Tax law, GST law shall extend to whole of India including the State of J & K. Therefore, if small traders/retailers supply goods/services in state of J&K, then it will subject to levy of GST. Likewise supply of goods/services to SEZ and exports shall be considered as zero rated supply. However, it is proposed that import of goods / services shall be subject to Integrated GST (IGST). Therefore, supply of goods and services by traders and retailers like electronic equipments, apparels, event management related services etc. in state of Jammu & Kashmir shall also be subject to levy of GST. Taxable Person For GST, taxable person means a person who is registered or liable to be registered under Schedule-V of the model law. A person, who has obtained or is required
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377; 10 lakhs based on the aggregate threshold limit of ₹ 10 lakh and no Service Tax is payable in such cases. In the GST regime, the limit of threshold exemption will be enhanced to ₹ 20 lakh on all India basis except in case of north-eastern and hilly States (total 11 States) where it will be ₹ 10 lakhs. These States are Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Sikkim, Himachal Pradesh, Jammu & Kashmir and Uttarakhand. For this purpose, definition of 'aggregate turnover' has been provided in section 2(6) of the GST law which is different from the existing one. Since under GST regime, the limit of threshold exemption gets reduced from ₹ 1.50 crore to ₹ 10 lakh or 20 lakh, it may adversely affect the small scale traders & retailers in case of goods. However, for services, it is beneficial. Small business may not be directly impacted by GST as there is a threshold exemption to businesses up to an annual turno
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20 or 10 lakh is available for registration under GST. A taxable person can also opt for composition scheme if his aggregate turnover is more than rupees 20 or 10 lakh and less than rupees 50 lakh. Further, importer, exporter, and any person who make inter-state supplies shall also be considered as a taxable person and is required to be registered under GST irrespective of threshold limits. Under GST regime every person who is liable to be registered under the Act, shall have to apply for State-wise registration for supply of goods / services from different States. There is no concept of single centralized registration under GST regime as is presently done. Small traders & retailers may opt for different registrations state wise in case of multiple branches or business verticals if they are engaged in supply of goods or services from such place or have different verticals. Business vertical means a distinguishable component of an enterprise that is engaged in supplying an individua
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