Person liable to pay tax :
♦ Person whose supplies of goods or services or both are more than Rs twenty lakhs per annum is required to pay GST. In case of North Eastern States, Jammu and Kashmir, Himachal Pradesh and Uttarakhand, third limit is Rs ten lakhs.
♦ He is required to register with GST Authorities. He has to apply electronically and submit his PAN details, address proof, details of constitution etc.
♦ Persons whose turnover is less than Rs 50 lakhs per annum can opt to pay tax under composition scheme. The rates are – 2% for manufacturers, 1% for traders and 5% for restaurants.
♦ However, the condition for composition scheme is that all their purchases should be from registered persons. This is very difficult for small businessmen. If they purchase from unregistered persons, theywill be liable to pay GST on these purchases.
♦ E-commerce companies will be required to pay 1% as Tax Collection at Source. In some cases (like taxi services), they will be liable to pay entire tax.
♦ In case of supplies to Government or Local Authority or Government Agencies, provision of TDS (Tax Deduction at Source) of 1% has been made, if contract exceeds Rs 2.50 lakhs.