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What is GST?
Goods and Services Tax (GST) is an indirect tax levied on the supply of goods and services in India. It has replaced multiple indirect taxes such as excise duty, service tax, VAT, and others, to create a uniform tax structure across the country.
Types of GST
There are three types of GST levied in India:
Central GST (CGST): Collected by the Central Government on intra-state supplies of goods and services.
State GST (SGST): Collected by the State Government on intra-state supplies of goods and services.
Integrated GST (IGST): Collected by the Central Government on inter-state supplies of goods and services.
GST Registration
GST registration is mandatory for businesses with an annual turnover of more than Rs. 40 lakhs (or Rs. 20 lakhs for special category states) in the case of supply of goods, and Rs. 20 lakhs (or Rs. 10 lakhs for special category states) in the case of supply of services. The registration process is managed by the Goods and Services Tax Network (GSTN) on behalf of the Central Board of Indirect Taxes and Customs (CBIC). The registration process includes filing an application on the GST portal, providing necessary documents and paying the applicable fees.
GST Returns
GST-registered businesses are required to file monthly or quarterly GST returns based on their turnover. There are three types of GST returns - GSTR-1 (outward supplies), GSTR-2A (inward supplies), and GSTR-3B (summary return). The due dates for filing GST returns vary based on the type of return and turnover of the business.
GST Rates
GST rates vary depending on the type of goods or services being supplied. The rates are classified into four categories - 5%, 12%, 18%, and 28%. There are also some goods and services that are exempt from GST or are taxed at a nominal rate of 0.25%.
GST Refunds
GST refunds can be claimed by businesses in certain cases such as exports, inverted tax structure, or input tax credit accumulation. The refund process involves filing a refund application on the GST portal, along with necessary documents and details.
GST Composition Scheme
The GST Composition Scheme is a simplified tax scheme for small businesses with an annual turnover of up to Rs. 1.5 crores. Under this scheme, businesses are required to pay a fixed percentage of their turnover as GST and are not allowed to collect GST from their customers.
GST Audit
GST-registered businesses with an annual turnover of more than Rs. 5 crores are required to undergo a GST audit. The audit involves verifying the accuracy of the GST returns filed by the business and ensuring compliance with GST laws.
GST Council
The GST Council is a constitutional body comprising of the Union Finance Minister and State Finance Ministers. The Council is responsible for making recommendations on GST rates, exemptions, and other matters related to GST.
GST Appellate Authority
The GST Appellate Authority is responsible for hearing and disposing of appeals against the orders of the GST authorities. The Authority comprises of a National Appellate Authority and State Appellate Authorities.
