Question 1

What is GST and who needs to register in India?

Accepted Answer

Goods and Services Tax (GST) is a unified indirect tax on the supply of goods and services across India, administered under the CGST and SGST Acts. Businesses must register when turnover crosses the prescribed threshold (commonly ₹40 lakh for goods and ₹20 lakh for services in most states; lower limits apply in special-category states). Voluntary registration is allowed below the threshold if you want to charge GST and claim input tax credit.

Question 2

What is input tax credit (ITC) under GST?

Accepted Answer

Input tax credit lets a registered business reduce GST payable on outward supplies by the GST already paid on purchases, subject to matching invoices on the GST portal and conditions in law. ITC is not available for blocked credits (such as certain motor vehicles or personal expenses) or if returns are not filed on time. Keep supplier invoices and reconcile GSTR-2B before claiming credit.

Question 3

Which GST returns must a regular taxpayer file?

Accepted Answer

Most regular taxpayers file GSTR-1 (outward supplies) and GSTR-3B (summary return with tax payment) monthly or quarterly under the QRMP scheme. Annual return GSTR-9 and reconciliation statement GSTR-9C (where applicable) are also required. Due dates and frequency depend on turnover and scheme chosen — check the latest calendar on the GST portal before each tax period.

Question 4

What are the main GST rate slabs in India?

Accepted Answer

GST is levied at multiple rates — commonly 0%, 5%, 12%, 18%, and 28% — with compensation cess on select goods such as luxury and sin items. Some supplies are exempt or attract a special rate (for example precious metals). The applicable rate depends on the HSN/SAC classification of the product or service; refer to the official rate notifications for the exact slab.

Question 5

What is the GST composition scheme?

Accepted Answer

The composition scheme is a simplified option for small taxpayers with turnover up to the limit notified by the government (check current notifications on gst.gov.in). Tax is paid at a fixed percentage of turnover with fewer compliances, but composition dealers generally cannot collect GST from customers, cannot claim input tax credit, and face restrictions on interstate supplies and e-commerce sales.

Question 6

How is GST different from the earlier VAT and service tax regime?

Accepted Answer

Before GST, central excise, service tax, VAT, and entry taxes applied in layers, often causing tax-on-tax. GST subsumed most of these into one nationwide system with a common return framework and input credit chain across states. Registration, invoicing, and e-way bill rules are now largely uniform, though IGST applies on interstate supplies and CGST plus SGST on intrastate supplies.

GST

GST Calculators

GST Return Calculator

GST Guides

GST Invoice Requirements — What Every Business Must Know

GST on Renting Property — Complete Guide for Landlords

Input Tax Credit — How to Claim and What You Need to Know

How to File GST Returns — GSTR-1 and GSTR-3B Guide

GST Registration Process — Complete Step by Step

Frequently Asked Questions