With a news overcome about GST bill passed in Lok Sabha, it is now clear picture showing about implementation of GST with effect from 1st July 2017. To make effective implementation of GST, Government has already started enrollment of existing VAT Dealers and Service tax Registration in all over India including Jammu & Kashmir.
GST Enrollment Registration last date has already extended to 30th april 2017 from 31st March 2017 for existing VAT and Service providers.
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Now a question come in mind in most of newly setup organisation and newly startups, whether they should apply for VAT registration or Service Tax registration to start their business ? Or Wait to start new GST registration process ?
To Answer this question : We have done a lot of research so find out a Solutions :
Untill & Unless, Goods and Service Tax Act become notify and effective, new registration cannot be started and GST cannot be allotted. So we have to wait for GST Act to become effective. Till Now, Have a look below :
Ø Whether to apply for VAT/Service tax number of wait for GST?
For any new start-up, this is common query. Following will provide a cue to reach at solution.
- GST isn’t applicable yet. It is proposed that it would be applicable from 1st July 2017. So, if one can wait to defer business till that date, one can wait for registration.
- Else, the start-up who has commenced business operations and needs to adhere to present law.
- In case of a service provider, one needs to apply for Service tax number as soon as one reaches Rs 9 lacs revenue threshold in the financial year.
- In case of trade in goods, one needs to apply for VAT number on satisfaction of any one of following condition : Turnover crosses the threshold limit (Rs 5 lacs in Haryana, Rs 15 lacs in Delhi, limits vary state to state)
One effects any interstate sales or purchases in course of inter-state trade or import-export
Till the GST Act applicability is notified one needs to adhere to above conditions. The respective VAT or Service tax registrations will be migrated to GST registration in due course.
Ø Will GST be applicable for our business?
GST would be applicable on satisfaction of any one of the following condition
- Turnover crosses the threshold of Rs 20 lacs
- One effects any interstate sales or purchases in course of inter-state trade or import-export
Ø When to start charging tax to clients / customers ?
o In case of services, one may opt charge service tax upon achieving the threshold of Rs 10 lacs in the year
o In case of VAT / GST, as soon as one is liable to tax, one needs to charge the tax and deposit to government account.