GST is payable by the taxable person on the supply of goods and/or services. Liability to pay tax arises when the taxable person crosses the threshold exemption, i.e. aggregate turnover of Rs.20 lakhs (Rs. 10 lakhs for North East States) except in certain specified cases where the taxable person is liable to pay GST even though he has not crossed the threshold limit.
Aggregate turnover shall include the aggregate value of all taxable and non-taxable supplies, exempt supplies and exports of goods and/or services excluding taxes viz. GST. Aggregate turnover shall be computed on all India basis.
All taxpayers eligible for threshold exemption will have the option of paying tax with input tax credit (ITC) benefits.
Tax payers making inter-State supplies or paying tax on reverse charge basis shall not be eligible for threshold exemption.
Small taxpayers with an aggregate turnover in a financial year up to Rs. 50 lakhs shall be eligible for composition levy. Under the scheme, a taxpayer shall pay tax as a percentage of his turnover during the year without the benefit of ITC. The floor rate of tax for CGST and SGST shall not be less than 1%. A tax payer opting for composition levy shall not collect any tax from his customers. Tax payers making inter-state supplies or paying tax on reverse charge basis shall not be eligible for composition scheme. The composition scheme will be optional.