This tax is levied by the Central Government on the supply of goods and services within a particular state. CGST applies to transactions carried out entirely within the boundaries of one state.

SGST is charged by the State Government on the supply of goods and services within its jurisdiction. Similar to CGST, SGST is also limited to transactions happening within a specific state.

This tax is imposed by the Central Government on the supply of goods and services that occur between different states or between a state and a Union Territory. IGST is relevant for transactions where goods or services cross state or Union Territory boundaries.

Any enterprise with an aggregate annual turnover exceeding Rs. 40 lakhs. For special category states under GST, the threshold is Rs. 20 lakhs.

Those with an aggregate annual turnover surpassing Rs. 20 lakhs. For special category states, this limit is Rs. 10 lakhs.

It's important to note that entities dealing exclusively in GST-exempted goods or services are not bound by these thresholds.

Entities that were registered under older tax frameworks (like Excise, VAT, Service Tax, etc.) need to migrate and register under the GST regime.

Any entity or individual involved in the supply of goods across state boundaries.

Those who undertake taxable supply occasionally.

Businesses obligated to pay tax under the reverse charge.

Distributors of input services, including their representatives.

Operators or aggregators of e-commerce platforms

Individuals or entities that are non-resident but engage in taxable supply within India.

Representatives who supply on behalf of a principal supplier.

Individuals or entities that offer goods or services through an e-commerce aggregator.

Entities delivering online information, database access, or retrieval services from outside India to an individual in India, excluding those already registered under GST.

Any person or entity who provides service of more than Rs.20 lakhs in aggregate turnover in a year is required to obtain GST registration. In special category states, the GST turnover limit for service providers has been fixed at Rs.10 lakhs.

As per notification No.10/2019 any person who is engaged in the exclusive supply of goods whose aggregate turnover crosses Rs.40 lakhs in a year is required to obtain GST registration. To be eligible for the Rs.40 lakhs turnover limit, the supplier must satisfy the following conditions:

Under GST, the following are listed as special category states - Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand.

Aggregate turnover = (Taxable supplies + Exempt Supplies + Exports + Inter-State Supplies)*(Taxes + Value of Inward Supplies + Value of Supplies Taxable under Reverse Charge + Value of Non-Taxable Supplies).

Ensures that businesses remain compliant with tax regulations, thus avoiding any potential penalties.

Businesses can claim credits for the GST they've paid on purchases, which can then be set off against the GST charged on sales, leading to a reduction in tax liability.

Encourages businesses to transact across state boundaries without facing tax-related challenges.

By removing the effect of tax being levied on an already taxed amount, the overall cost of products or services is reduced.

Being GST compliant can instil trust in potential customers, opening up more business opportunities.

Major corporations often prefer collaborating with GST-registered vendors.

Efficient management and lower tax liability can enhance the cash flow within a business.

Maintaining a consistent and positive GST compliance record can boost a business's credit profile.

A GST registration protects businesses and ensures their rights are upheld.

The GST process is streamlined, enabling businesses to file returns and make payments online easily.

Ensures businesses maintain accurate records, promoting a sense of trustworthiness and professionalism.