Anyone supplying goods or services to another state, need to apply for GST regardless of turnover. Even online service provider serving customers in another State will instantly attract GST registration. The basic composition of GST stands on the foundation of the registration system, for it is a registered person who is liable to pay tax and who is eligible to avail the benefits of the input tax credit mechanism.
Goods and Services Tax is a unified indirect tax combining VAT, CST, Service Tax, Excise duty, Entertainment Tax, etc and applicable all over India from 1 July 2017. Mandatory to register under GST when annual turnover exceeds INR 20/10 lakh or supply goods and services inter-state or through e-commerce platform. Tax rates vary from 0% to 28% depends on the type of goods & nature of services you are selling.
Only business unit registered under GST can avail credit of tax paid at the time of purchase while filing GST returns. Business Unit having an annual turnover less than 1 crore may opt the scheme. Requires to pay subsidize tax ranges from 1% to 5% & file quarterly return. Every GST registrant requires to file three monthly/quarterly returns and One annual return. Requires paying tax every month or three month.