WHO IS LIABLE TO PAY TAX

Liability to pay *GST does not cease if a person does not get registered. Following persons are liable to pay *GST:

[*means CGST or SGST or IGST]

1. Persons liable to GST as per aggregate turnover in a financial year

(i) if taxable supply of goods and/or services in special category states exceeds Rs. 10 lacs

(ii) if taxable supply of goods and/or services in other than special category states exceeds Rs. 20 lacs.

Special Category States are: (i) States of Arunachal Pradesh;(ii) Assam;(iii) Jammu and Kashmir;(iv) Manipur;(v) Meghalaya;(vi) Mizoram;(vii) Nagaland;(viii) Sikkim;(ix) Tripura; (x) Himachal Pradesh and (xi) Uttarakhand.

2. Persons liable to GST even if aggregate turnover in a financial year is NIL

(i)            Person who on the day immediately preceding the appointed day is registered or holds a licence under an earlier law[Para 3 of Sch.-V]

(ii)           Transferee or successor of a business carried on by a taxable person[Para 4 of Sch.-V]

(iii)          Transferee pursuant to an arrangement for amalgamation or demerger of two or more companies [Para 5 of Sch.-V]

(iv)          Persons making inter-state supply [Para 6(i) of Sch.-V]

(v)            Casual taxable person [Para 6(ii) of Sch.-V]

(vi)          Person required to pay tax under reverse charge [Para 6(iii) of Sch.-V]

(vii)         Electronics commerce operator [Para 6(iv) of Sch.-V]

(viii)        Non-resident taxable person[Para 6(v) of Sch.-V]

(ix)          Persons required to deduct tax at source [Para 6(vi) of Sch.-V]

(x)           Persons required to collect tax at source [Para 6(vii) of Sch.-V]

(xi)          Persons who supply on behalf of other registered taxable persons whether as agent or otherwise [Para 6(viii) of Sch.-V]

(xii)         Input service distributor [Para 6(ix) of Sch.-V]

(xiii)       Persons who supply goods and/or services through e-commerce [Para 6(x) of Sch.-V]

(xiv)        E-commerce operator [Para 6(xi) of Sch.-V]

(xv)         Every person supplying online information and data base access or retrieval services from a place outside India to a person in India [Para 6(xii) of Sch.-V]

(xvi)        Such other persons or class of persons as may be notified [Para 6(xiii) of Sch.-V]

A personwho has been granted registration is called registered taxable person. Only a registered taxable person is entitled to claim input tax credit on inward supplies. Whereas, every taxable person is liable to pay tax on supplies made without any benefit to claim input tax credit on inward supplies.