GST is a comprehensive indirect tax levied on the supply of goods and services across India. It has replaced many indirect taxes that were previously levied by the central and state governments.
GST is a destination-based tax system where the tax is collected at every stage of the supply chain, with credit allowed for any tax paid on inputs acquired for use in making taxable supplies.
In India, GST is categorized into Central Goods and Services Tax (CGST), State Goods and Services Tax (SGST), Integrated Goods and Services Tax (IGST) for interstate transactions, and Union Territory Goods and Services Tax (UTGST).
Businesses and individuals involved in the supply of goods or services with an aggregate turnover exceeding the prescribed threshold (currently ?20 lakhs for most states, ?10 lakhs for special category states) need to register for GST.
GST rates in India are categorized into multiple slabs: 0%, 5%, 12%, 18%, and 28%. Certain essential goods and services may be exempted or taxed at a lower rate (0% or 5%), while luxury items attract higher rates (18% or 28%).
Input Tax Credit allows businesses to claim credit for GST paid on purchases of goods or services used for business purposes. This credit can be used to offset the GST liability on sales.
Businesses registered under GST need to file regular GST returns monthly (GSTR-3B) or quarterly (GSTR-1, GSTR-3B) depending on their turnover. Annual returns (GSTR-9) are also required to be filed.
Penalties for non-compliance with GST regulations include late filing fees, interest on delayed payment of taxes, and in severe cases, cancellation of GST registration and prosecution.
Yes, small businesses with turnover up to ?1.5 crore (?75 lakh for special category states) can opt for the Composition Scheme, where they pay GST at a fixed rate of turnover and file simplified quarterly returns (GSTR-4).
More detailed information about GST can be obtained from the official GST portal (www.gst.gov.in), or through consultation with GST professionals and tax advisors.
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