The Goods and Services Tax (GST), which went into effect on July 1, 2017, affects all producers, traders, and service providers in India, including independent contractors. A number of central taxes, including service tax, excise duty, and CST, as well as state taxes, including entertainment tax, luxury tax, octroi, and VAT, were combined into one tax on July 1, 2017, known as GST. Every stage of the supply chain will be charged GST, with full set-off privileges available. GST registration is done totally online without any manual input.

Along the supply chain, every product goes through a number of steps, including buying the raw materials, manufacturing, selling to the wholesaler, selling to the retailer, and then selling to the customer. It's interesting to note that GST will be applied to all 3 levels. Let's assume that if a product is made in West Bengal but used in Uttar Pradesh, all of the proceeds will go to that state.

Additionally, to avoid cumbersome GST requirements and pay GST at a set rate of turnover, taxpayers with a turnover of less than Rs. 1.5 crore can choose the composition plan.

What are the components of GST?

The Goods and Services Tax (GST) will have three tax components: a central (Central Goods and Services Tax, or CGST) and a state (State Goods and Services Tax, or SGST) component. Both the federal government and each state will impose the GST on all entities, or whenever a transaction takes place within a state. When a transaction occurs from one state to another, it will be subject to the Integrated Goods and Services Tax (IGST), which will be imposed by the central government.

What is the input tax credit?

With the help of input tax credits, you can pay less tax now on inputs and the remaining balance when it comes time to file your taxes.

When a product is acquired from a registered seller, taxes are paid on the transaction, and you also collect taxes when you sell the product. With input credit, you can reduce the taxes paid at the time of purchase by the amount of sales tax (output tax) and pay the remaining tax obligation, which equals the difference between the tax on sale and the tax on buy.

Get more info, click: Online GST Registration Process