Goods and Service Tax (GST) is paid by the consumers for the products or services. But the GST will be remitted to the government by the businesses who are providing you with those products and services. This GST will be included in the final price that is to be paid by the consumer and then is passed on to the government by the seller. This system is adopted across the whole country, which means a single tax rate is applied. The objective of introducing GST in India was to eliminate the tax on tax(double taxation).  

The tax was paid on goods and margins at every stage of the production process in the previous tax system that was being adopted. This had translated into a higher amount of tax paid which was burdened on the end-user, where he or she ends up paying higher costs for the goods or services. 

Who Should Pay GST?

If you are supplying any kind of goods or services in India aboveRs. 20 Lakh of value, you must register for GST, except in certain limited cases where the taxable person is to pay GST regardless of whether he has crossed the threshold limit.

If you fall under any of the following categories, you need to be registered under the GST Act:

• If you sell on an online marketplace like Flipkart, Amazon, Instamojo Connect
• If you are selling goods or service from one state to another
• If you are required to pay taxes under reverse charge
• If you are supplying goods or services on behalf of a manufacturer/supplier – If you are an agent.
• If you deduct TDS
• If you are an input service distributor.