The products and Services Tax or GST is really a consumption tax which is charged on many services and goods sold within Canada, regardless of where your enterprise is located. Susceptible to certain exceptions, all businesses must charge GST, currently at 5%, plus applicable provincial sales taxes. A business effectively acts as a representative for Revenue Canada by collecting the required taxes and remitting them with a periodic basis. Corporations are also permitted claim the required taxes paid on expenses incurred that relate for their business activities. They’re called Input Tax Credits.

Does Your Business Need to Register? Before doing just about any commercial activity in Canada, all business owners must see how the GST and relevant provincial taxes sign up for them. Essentially, all companies that sell goods and services in Canada, for profit, have to charge GST, with the exception of the next circumstances:

Estimated sales for that business for 4 consecutive calendar quarters is anticipated to get lower than $30,000. Revenue Canada views these lenders as small suppliers and they are therefore exempt.

The organization activity is GST exempt. Exempt goods and services includes residential land and property, day care services, most medical and health services etc.
Although a smaller supplier, i.e. a company with annual sales less than $30,000 isn’t needed to submit GST, in some cases it can be good for achieve this. Since a company could only claim Input Tax Credits (GST paid on expenses) should they be registered, many businesses, specially in the set up phase where expenses exceed sales, could find they are in a position to recover a lot of taxes. This has to be balanced contrary to the potential competitive advantage achieved from not charging the GST, along with the additional administrative costs (hassle) from the need to file returns.

For additional information about Gst Registration Vizag take a look at this resource.