When would GST registration be required:

Goods and Service tax (GST) is required if your annual turnover is more than 20 lakhs if you are rendering service or 40 Lakhs if you are into manufacturing or trading of goods. Irrespective of the turnover in the below cases GST has to be applied:

• Interstate sellers/service providers
• E-commerce operator/aggregator
• Exporters of Goods/Service
• Vendors on E-commerce portals
• Casual Taxable person- Person who supplies but has no fixed place

What is CGST, SGST, and IGST?

CGST is a tax levied on Intra State supplies of goods and services by the Central Government and is governed by the CGST Act.

SGST is a tax levied on Intra State supplies of goods and services by the State Government and is governed by the SGST Act.

For e.g, The Startup Zone provides GST registration service to a business registered in Karnataka for Rs.2000, GST levied is 18% which is Rs.360 in which CGST is Rs.180 and SGST is Rs.180

IGST is a tax levied on all Inter-State supplies of goods and/or services and will be governed by the IGST Act. IGST will be also applicable on any supply of goods and/or services in case of import into India or export from India.

For e.g, The Startup Zone provides GST registration service to a business registered in Outside Karnataka for Rs.2000, GST levied is 18% which is Rs.360 in which IGST is Rs.360.