Goods and Services Tax came into existence with effect from 1st July 2017.

GST is basically charged on all transactions such as sale, transfer, purchase, barter, lease, or import of goods and/or services.

In India GST rate for various goods and services is divided into five slabs: they are 0% (nil rate) GST, 5% GST, 12% GST, 18% GST, & 28% GST.

Precious and semi precious stones and metals like pearls, diamonds, gold & silvers have special rates i.e. 0.25% and 3% of GST.

HSN code is a 6-digit uniform code that classifies 5000+ products and is accepted worldwide. HSN is short for Harmonized System of Nomenclature.

A classification system developed and issued by the (CBIC) Central Board of Indirect Taxes and Customs Department of India to classify various services is known as SAC code. Service Accounting Codes (SAC) is a unique code provided for identification, measurement and taxation of services.

A product is normally classified under sections and then chapters, headings, and subheadings. You can visit GST Portal and in User services search HSN code by describing your products and selecting relevant category.

E-way bill is an electronic document generated on the GST portal showing movement of goods.

It has two parts -

Part A consisting of details of registration number of recipient, delivery location (PIN Code), invoice or challan number and date, value of goods, HSN code, transport document number (Receipt no. for Goods or Receipt by Railway or Air Transport Bill Number or Shipment Bill Number) and reasons for transportation for such goods; and

Part B consisting of details of transporter (Vehicle registration number).

The Composition levy Scheme is a simplified, hassle free compliance scheme for Small Scale businesses and taxpayers. It is a voluntary and optional scheme to exercise for taxpayer with aggregate turnover of less than Rs. 1.5 Crore. Composition scheme is mostly beneficial in B2C business.

Yes. You can opt for voluntary registration under GST even if you are not liable to be registered. All the provisions of GST applicable to a registered taxable person will also apply to you, i.e. you will be treated as a taxable person and need to file returns of GST.

Reverse Charge in GST means the liability to pay tax is beared by the recipient of supply of goods or services rather than the supplier of such goods or services in respect of specific categories of supply notified under GST act.

The Quarterly Returns Monthly Payment (QRMP) scheme is a system that allows registered taxpayers with an aggregate turnover of upto 5 Crores in the previous financial year to file GST returns on a quarterly basis and make payments of tax on a monthly basis. This is an optional scheme and can be availed as per registration.

Any person who carries on any business at any place in India, anyone who supplies goods and/or services and is registered (or required to be registered) under GST Act is a taxable person.

An individual, HUF, Company, Partnership Firm, LLP, Government Company, Society, Local Authority, Trust, etc. are taxable person under GST law.

The list of states which are assigned special category status under Goods and Services Tax Law:

·         Arunachal Pradesh

·         Assam

·         Jammu & Kashmir

·         Manipur

·         Meghalaya

·         Mizoram

·         Nagaland

·         Sikkim

·         Tripura

·         Himachal Pradesh

·         Uttarakhand

All the above states have reduced threshold limit for GST registration.

The act defines that “aggregate turnover” means the aggregate value of all taxable supplies, not including the value of inward supplies on which tax is payable on reverse charge basis, supplies exempt from GST, exports of goods or services or both and inter-state supplies of persons having identical PAN, to be computed on an all-India basis not including Central tax or State tax or Union territory tax and Integrated tax or cess.

The threshold limits for GST registration for supplier of goods is 40 lakhs for normal category states and  20 lakhs for special category states. The threshold limits for GST registration for supplier of services is  20 lakhs for normal category states ? 10 lakhs for special category states.

Goods and Services Tax Network (GSTN) is a non-profit and non-government company, which facilitates IT infrastructure and services to both central and state governments alongwith tax payers and other stakeholders for GST services. GSTN is an interface between the government and the taxpayers.

Primary authorized signatory means the person primarily responsible to perform the actions on the GST System Portal. All the communication from the GST Department related to the taxpayer will be addressed to the primary authorized signatory. Hence, the directors of the business become the primary authorised signatory.

–  PAN card
– Aadhaar card
– Passport Photo (in JPEG format, max. size – 100 KB)
– Bank account details
– Address proof– Proof of Business

If you have purchased goods from a registered supplier and you are not registered under GST , you cannot claim ITC for the goods. GST registration is compulsory for those who want to claim ITC on goods or services supplied to him from the supplier of Goods or Services.

No. GST is levied on exports of goods and services as export of goods and services are zero rated under GST. But GST is charged at zero rate so you can have refund of ITC.

Yes, it is mandatory for an Ecommerce operator to obtain GST registration before commencement of business or within 30 days of commencement of business. No threshold limit is applicable for them.

Yes. You will need separate registration for multiple business in different states as GST is state specific and PAN based. So every business which is in a differemt state will need a separate registration in respective state.

Intrastate transactions means within state transaction which will attract CGST and SGST both at equal rates.

Interstate transactions mean transaction from one state to another and will attract IGST at flat rate.

E-Invoice is a system in which B2B invoices are authenticated electronically by GSTN for further use on the common GST portal. Under the electronic invoicing system, an identification number will be generated against every invoice by the Invoice Registration Portal (IRP) to be managed by the GST Network (GSTN).The e-invoicing system applies to the registered GST persons whose aggregate turnover in the financial year exceeds ? 20 Crores.

No. The supplier of goods or services would be liable to obtain GST registration in case of inter-state suppliesof goods or services irrespective of their turnover.

Yes. The registration granted under GST is permanent unless it is cancelled or surrendered by the assessee or suspended and revoked by the department by order.

DSC (Digital signature certificate) is required for GST registration of Company or LLP. For registration of Proprietor or HUFs DSC is not mandatorily required.

GST 2A is a purchase-related tax return that is automatically generated and auto populated for each business by the GST portal. When a seller files his GSTR-1, the information is captured automatically in GSTR 2A. It takes information of goods and/or services which have been purchased in a given month from the seller's GSTR-1. You are required to verify (and amend) this return before filing in on GST portal, for any missed documents.

GSTR-3B  is summary of GST return filed every month and is self-declared by the person. A quaterly return is filed for the QRMP scheme. A registered taxpayer needs to file it as it has become mandatory from July 2017 onwards. For every GSTIN, GSTR-3B must be filed seprately. The liability of GST should be paid on or before the date of filing GSTR-3B, before its due date.The GSTR-3B cannot be revised. Even if the liability is NIL, then also GSTR 3B must be filed.

GSTR-2B is an ITC statement which is generated automatically for every normal taxpayer on the basis of the information provided by their suppliers in their respective GSTR-1, GSTR-5 (non-resident taxable person) and GSTR-6 (input service distributor). GSTR 2B indicates availability and non availability of input tax credit to the taxpayer against each document filed by their suppliers.

   Given below is an illustration for understanding the GST calculation:

Calculation of GST by Manufacturers:

The manufacturer saves ? 942 on a cost  i.e. 9.42% savings on the cost due to change in tax.

There is a cost reduction for manufacturers, who pass this benefit along the supply chain to the wholesalers, retailers and end-consumers.

Calculation of GST by Wholesalers & Retailers:

The cost of the product falls under the GST regime and the end-consumer has to pay a lesser price for the goods at the same profit margin earned by wholesalers and retailers.

Final Return - GSTR 10 must be filed within three months from the date of cancellation or date of cancellation order whichever is later. For instance, if the date of cancellation is 1^st May 2022 whereas the cancellation order was received on 9^th May 2022, then the GSTR 10 must be filed by 9^th May 2022.

A registered person is required to file following returns:

• GSTR-3B (Quarterly or Monthly) : Due date to file GSTR-3B is 20^th  of next month for monthly return filing and 22^nd  or 24^th  (state-wise) of next month for quarterly return filing.

• GSTR-1 (Quarterly or Monthly): Due date for filing IFF monthly for quarterly return is 13^th of next month. Where GSTR-1 needs to be filed monthly, it is 11^th of next month.

• GSTR-9 (Annual Return) GSTR-9 is an annual return to be filed by all registered taxpayers under GST whether monthly or quarterly filers. It is an annual summary of outward supplies, inward supplies, tax liability and input tax credit availed during a financial year. It is due to be filed by 31 December of the year following the particular financial year. GSTR-9 is mandatory for all the taxpayers whose turnover exceeds Rs. 2 Crores.