With the concept of "One Nation One Tax", the Goods and Services Tax (GST) has been implemented in India. India established GST structure in 2017, which was the biggest reform in the country's tax structure in decades. India with a unified GST platform merged central taxes (ie. sales tax and excise duty tax except for petrolium and alchoholic products and service tax) with state-level taxes (ie. VAT except for petrolium and alchoholic products, entry tax, transfer tax and luxury tax) and collects them as one single tax.

The main objective of incorporating the GST was to eliminate tax on tax, or double taxation, which cascades from the manufacturing level to the consumption level. The goods and services tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption. The GST is paid by consumers, but it is remitted to the government by the businesses selling the goods and services.

---

Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees*:

Provided that where such person makes taxable supplies of goods or services or both from any of the special category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees**.

* This limit is increased to Rs. 40 Lakhs w.e.f 1st April 2019 for all states except the State of Telangana. Special category states ie. Jammu and Kashmir, Ladakh and Assam also opted Rs.40 lakhs limit.

** This limit is increased to Rs. 20 Lakhs w.e.f 1st April 2019 for Special Category States.

*** A person making inter-state supply of services, supply of handicraft goods and a jobworker except a jewellery, goldsmith, silversmith whose aggregate turnover below the threshold (ie. Rs40/Rs.20 lakhs) limit are not required to register under GST,

Special Category States are Arunachal Pradesh, Assam, Jammu & Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Tripura, Himachal Pradesh and Uttarakhand. Any person may register under voluntarily even if his/her aggregate turnover is below the threshold limits.

Aggregate Turnover: “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 on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess.

The following persons are not required to register under GST.

---