The Indian government has introduced GST Tax on July 1, 2017, to help the people to minimize online tax payment by combining the nine existing taxes into one. Post the implementation of GST with the slogan “One country and One Tax,” the definition of a taxable person and the rules of taxing has slightly changed.
According to the Section 2 (73):
Any individual or business person who is registered under CGST or liable for GST Tax registration under section 22 and 24 of CGST Act will be termed as a ‘Taxable person’.
The term “Person” refers to Individual, Firm, Company, Hindu Undivided Family (HUF), Limited Liability Partnership (LLP), any Corporation established by or under any Central or State Act or Government company, Cooperative Society registered under any law relating to Cooperative Societies, Local Authority, Government, Trust, Artificial Juridical person and others.
Note: The Section 24 of CGST provides certain categories of persons who need to File GST irrespective of the turnover limit. Here you can find those categories:
- Casual Taxable Person (CTP)
Individuals who occasionally conducts business like supplying taxable goods or offering services in a particular area but does not have any fixed business location will be termed as Casual Taxable Person (CTP). People belong to the CTP group has to obtain ‘Temporary Registration’ which is valid for 90 days. These individuals are liable to pay advance tax online based on an estimation of the tax liability of GST.
- Non-resident Taxable Person
The name Non-resident itself resembles that, the person is staying outside India. The non-resident people of India who occasionally undertake business transactions in India but does not have any fixed business location or residence in India will come under the Non-resident taxable persons.
- Reverse Charge Taxable Person
There are some exceptional cases where the government would collect tax from the recipient of goods or services instead of collecting from the supplier. In this case, the person who is going to avail the services is liable to pay tax.
If you fall among any of these categories, then you are liable to register for GST Tax to avail the tax benefits from the government. Hire the tax experts of KENCloud who helps you in generating invoice and guides you to pay tax online hassle-free.