Quick Answer: What Is The GST For Service Providers?

What are the 3 types of GST?

Know about the types of GST in IndiaHighlights.CGST, SGST and IGST are the 3 types of GST in India.CGST and SGST are levied on intra-state transactions.CGST is collected by the centre and SGST by the state.IGST is charged on inter-state goods/services transactions..

What services are exempt from GST?

Some examples of GST/HST exempt goods and services are:Used residential housing (GST/HST is only charged on new or “substantially renovated” residential housing. … Residential rental accommodation if equal to or greater than one month duration.Music lessons.More items…

What is the minimum turnover for GST?

A business whose aggregate turnover in a financial year exceeds Rs 20 lakhs has to mandatorily register under Goods and Services Tax. This limit is set at Rs 10 lakhs for North Eastern and hilly states flagged as special category states. Also, the definition of taxable turnover has been changed to aggregate turnover.

Who are eligible for GST?

You must register for GST: when your business or enterprise has a GST turnover (gross income minus GST) of $75,000 or more (see Working out your GST turnover) when you start a new business and expect your turnover to reach the GST threshold (or more) in the first year of operation.

Can I do business without GST?

Businesses and individuals are exempt from GST if their annual aggregate turnover is less than a specific amount. At the time of GST implementation in July 2017, businesses/individuals with annual aggregate turnover of less than Rs. 20 lakhs were allowed GST exemption.

Is GST required below 20 lakhs?

The traders supplying goods to other states will need to register under the Goods and Services Tax (GST) even if their turnover is below Rs 20 lakh, Revenue Secretary Hasmukh Adhia said on Thursday. … “Rs 20 lakh registration limit is only for intra-state traders,” he said.

What is turnover for GST?

“aggregate turnover” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed …

What are the GST rules?

GST is a single domestic indirect tax law for the entire country. Under the GST regime, the tax is levied at every point of sale. In the case of intra-state sales, Central GST and State GST are charged. All the inter-state sales are chargeable to the Integrated GST.

Is GST registration mandatory for service providers?

Who is eligible to register under GST? All the businesses supplying goods whose turnover exceeds Rs 40 lakh in a financial year are required to register as a normal taxable person. … The turnover limit is Rs 20 lakh, and in case of special category States, Rs 10 lakh, for the service providers.

What is the rate of tax payable by a service provider in the case of a composition dealer?

Rate of tax under composition scheme for service providers It may be noted that manufacturers and traders are allowed to pay tax at the rate of 1 percent (0.5%CGST +0.5%SGST) of turnover respectively under composition scheme in case their aggregate turnover in preceding year does not exceed INR 1.5 crore.

How is GST calculated?

GST calculation can be explained by simple illustration : If a goods or services is sold at Rs. 1,000 and the GST rate applicable is 18%, then the net price calculated will be = 1,000+ (1,000X(18/100)) = 1,000+180 = Rs. 1,180.

Do I need to charge GST as a contractor?

You do not charge or collect GST or HST on your income. You are subject to tax on most employment benefits. As an independent contractor you generally will not receive such benefits. … This is especially likely if there is only a single company paying you income (i.e., you only have one “client”).

What is the GST rate for service provider?

18%All those services which were attracting Service Tax at the rate of 15% now falls under the slab of 18% under GST regime….GST rate schedule for services.Nature of ServiceGST rates on servicesCourier Services18% SlabNov 21, 2019

Is GST applicable on professional services?

GST Rate for Professionals Currently 18% rate of GST is applicable on almost all categories of professionals in India except some specific exemptions provided for healthcare services.

How does the GST work?

Standard-rated supplies are goods and services that are charged GST with a standard rate. GST is collected by the businesses and paid to the government. They can recover credit back on their inputs. If their input tax is bigger than their output tax, they can recover back the difference.