Corpzo Ventures Private Limited

GST is an indirect tax levied on the supply of goods and services. It is applicable to all Indian service providers, traders, and manufacturers on the basis of their turnover. As per the latest government notification, a business whose turnover exceeds Rs 40 lakhs is required to register as a normal taxable person; this process is GST registration. For a certain set of businesses GST is mandatory. In 2017 the Parliament of India passed the Goods and Services Tax Act (GST Act), which came into effect on 1st July 2017. It is an indirect tax which replaced many other prevailing indirect taxes in India, including state taxes like VAT, entertainment tax and octroi, and central taxes like CST, service tax and excise duty. After registration, each GST taxpayer is given a unique identification number known as GSTIN (GST identification number). GST has three components: Central Goods and Services Tax (CGST), State Goods and Services Tax (SGST) and Integrated Goods and Services Tax (IGST). Basic necessity items like milk, salt and bread are exempted under GST; life-saving drugs and household necessities are taxed at 5%; processed foods and computers at 12%; capital goods, industrial intermediaries, hair oil, toothpaste, soaps and services at 18%; and luxury items at 28%. Documents required for GST registration include the PAN card, Aadhaar card and photographs of the proprietor/directors/partners, the PAN card of the business entity, the certificate of incorporation or partnership agreement, and proof of the business address (rent agreement, electricity bill or gas bill).