The Goods and Service Tax (GST) is all set to roll out July 1. Are you ready for GST? Wondering if your business should enroll for GST and what kind of rates will apply? Here’s a video that can help you understand who should apply for GST and the recent tax slabs decided by the GST council.
Should your business register for GST?
If you fall under one of the following categories, you must register for GST.
Does your small business:
- Supply goods/services over Rs. 20 lakh
- Sell goods/services from one state to another
- Sell goods/services on an online platform or marketplace
- Pay taxes under reverse charge
- Is an input service distributor
- Deduct TDS
- Export goods/services
- Is registered under VAT and Service Tax
The GST Council recently met to finalize tax slabs for various goods and services.
The slabs are based on a tier system:
- 0%: unprocessed agricultural goods
- 5%: consumer goods like spices, tea and mustard oil
- 12%: all processed goods
- 18%: smartphones and other small digital goods.
- 28%: cars, AC, refrigerators etc
- 28% Additional Cess: Luxury cars, pan masala, tobacco and aerated drinks
Three Goods/Services exempt from GST are:
- Alcohol for human consumption
- Electricity / Light energy
- Petroleum Products
Are you ready for GST?
Tell us what you think in the comments below.
Disclaimer: Information in this article is intended only to provide a general overview and is not intended to be treated as legal advice. Please consult a tax expert to get a better understanding of the GST Laws.