Goods and Services Tax (GST)

The act of having yourself registered with the GST council, like almost every other thing provided by the government, comes with its own fair share of benefits. You will find a list of the same below: Big projects can be accepted from Multinational Corporations (MNCs) that are registered with the.....

Now that you know the procedure to file your returns and check the GST filing status, here are a few benefits of filing your GST returns on time.  You can avoid unnecessary interest levied on the outstanding tax amount You can claim the input tax credit when you file your returns promptly Y.....

In the case of certain special services such as banking and passenger transportation, certain relaxations are provided by the government in terms of GST invoicing and/or following the GST invoice format. It must be noted that you must generate your GST invoice format in an Excel sheet while followin.....

Here are the special scenarios in filling in GSTR 3B: When supplies are made to an unregistered individual Here, select the place of supply from the dropdown list, enter the taxable value for the respective states/ UTs Fill in the integrated tax amount (cess need not be mentioned) To r.....

Reverse Charge Mechanism or RCM under GST means the liability to pay the tax is on the recipient and not the supplier of goods and services. The type of reverse charge conditions is based on the nature of the supply as well as the nature of the supplier. 

The following is the procedure on how to file GSTR 10 on GST Portal: Step 1: Visit the official website of GST Portal. Step 2: Select' Services', click on 'Returns', and then select 'Final Return'. Step 3: Click on 'Prepare Online' and remember that you have to update the address correctly .....

As a customer of a business, you can claim the benefits offered by GSTIN only if the business provides you with an authentic number. There have been multiple instances where businesses have provided their customers with fake GSTIN numbers.    Through such unethical practices, the businesses collec.....

Businesses need to pay this tax upfront on the purchase of goods. However, they can only receive the Input Tax Credit after selling the goods. As a result, unsold products affect your working capital. This can be a crucial issue, especially for small businesses.

In case you are unable to file your GSTR-1 return by the due date, you will be liable to pay a late fee as per the following rate. An interest rate of 18% p.a. will also be levied on the outstanding tax amount for the late filing of GSTR-1.   The following table will give you a clear idea on the l.....

As an entrepreneur or businessman, it is important for you to compare GSTR – 2A and GSTR – 3B. It can be beneficial for your business to not just make a full claim of the ITC, Input Tax Credit, but also reverse any excess ITC that may have been claimed.  GSTR 3B or Form GSTR 3B is a summary of the .....

When a taxpayer applies to register for GST, all of their specific information is checked before being submitted for approval to the tax authorities of the federal and state governments. In addition to managing the basic tax filings and tax returns, GSTN also has the following additional duties rela.....

If an individual fails to GSTR-2 before the due date or for a particular month, they will attract a late fee for each and every day they delay the filing process. The way that works is that the registered taxpayer will be fined ₹100 per day, with the upper ceiling being at ₹5,000.   If you would l.....

Over the course of this article, several important aspects of GST payment have been discussed including payment modes, GST refund, among other important factors. According to the GST payment regulations, if a person files a GST Monthly Return without paying the due tax, the return is considered null.....

The composition scheme carries the following advantages and disadvantages: Advantages Disadvantages Lower compliance limits Limitation on business territory Lower tax liability Non availability of Input Tax Credit Lower tax rate brings higher liquidity Non-taxable goods canno.....

The registration of GST is the first step forward in compliance. The registration can be done online on the website – www.gst.gov.in. The process is relatively straightforward; however, there are a few things to keep in mind in order to remain compliant. GST registration must be done based on a busi.....

The late fee or penalty must be paid if the quarterly GSTR-3B is not filed before the due date, and it will result in a late fee, going up to a maximum of Rs. 5,000. However, there will be no involvement of late fees during the tax payment of the first two months of the quarter as per form PMT-06. E.....

The benefits of invoice furnishing facility are as follows: You have a flexibility to opt for IFF for one month of a quarter and not choose it for next month of the same quarter. You do not need to pay any late fees if you upload the B2B invoices after the 13th of a month. At most, the ITC get.....

Some of the things that a taxpayer should be mindful of while filing GSTR-4 returns are as follows: If the GSTR 4 returns are not filed on time, the taxpayer will be subjected to a late fee of ₹200 per day, subject to a maximum charge of ₹5,000. If the taxpayer is not liable to pay any tax for th.....

In case you are unable to file your GSTR-9 by the due date, you are liable to pay a penalty of ₹100 per day as per the GST Act, 2017, subject to a maximum of 0.25% of the total turnover of the business. Note that there is no late fee for the IGST yet. Act Late Fees (For Per Day of Delay) CG.....

As its name suggests, GST is a tax applicable to both goods and services. Just like GST HSN code, Services Accounting Code (SAC) classifies services for their easy identification and taxation.    The Services Accounting Code is part of the HSN Code as Chapter 99 of the last section. For instance, .....

As per the 43rd GST council recommendations, taxpayers with a turnover of up to ₹5 Crores may self-certify the GSTR 9C for FY 2020-21 onwards. However, taxpayers with an aggregate turnover of more than ₹5 Crores are compulsorily required to file the GSTR 9C without fail for FY 2020-21. Taxpayer’s.....

While the introduction of GST on cars has been given a warm welcome by the automobile sector, there are some issues that require attention, for example, the bundling of the vehicle with accessories, handling charges and warranties. When car dealers charge for the sale of the car, they include other .....

While the pro forma invoice and the invoice are often two interchangeably used terms as per many, they are quite different. The final invoice is a commercial document and is, as the name implies, the final copy of the same, whereas a proforma invoice is given prior to the shipment of the discussed g.....

Payments related to GST PMT-06 form need to be made via a challan valid for 15 days only. The taxpayer recieves a Challan Identification Number (CIN) once a payment is successfully made.    Payment of challans below Rs. 10000 can be made physically through cheques, demand drafts, or currency, via .....

While most Indian households consider buying gold not just as an investment but also as a  status symbol, it is important to keep the following things in mind when purchasing gold ornaments.    The jewellery that you purchase must be BIS certified or hallmarked. You must ensure that purity is cr.....

According to Notification no. 12/2017, dated June 28th, 2017, in the contract of pure labour some services are exempted from GST. Some of the exemptions that are available on GST for labour charges are as follows:   Services of erection/construction/installation or commissioning of any original wo.....

As a business owner and a responsible taxpayer, it is always advisable to ensure proper GST compliance. You should ideally take the help of a Chartered Accountant (CA) for filing your GST returns. Furthermore, in case a GST officer passes an unsolicited order against you, the GST law has ample provi.....

IT accessories play an important role in enhancing the digital experience derived from a laptop or computer. The applicable GST rate on IT accessories such as LAN and data cables is set at 28% each; earlier, the applicable rate was 17.5%. Other accessories such as fax machines, photocopying machines.....

The following are some of the benefits that dealers have been able to enjoy after the introduction of GST for mobile phones: Increase in Sales: A mobile phone has become a necessity rather than a luxury in today’s world. This has inflated the sales of mobile phones from GST-registered dealers. .....

Residential property will be recognized as such for purposes of the GST if it contains no more than 15% commercial space. A business entity must comply with 12% GST. Landowners are only required to pay GST if the tenant has a business. On services for house loans, such as legal fees and pro.....

As per the new GST rules, food delivery platforms are required to pay 5% of the GST rate on food you order. Earlier, restaurants were required to collect and deposit taxes. The new rules have made delivery platforms responsible for this purpose.    The Goods and Services Tax (GST) was introduced.....

In India, the GST framework categorises the supply of goods and services into four main groups, each subject to unique tax treatments: Exempt, Zero Rated, Nil Rated and Non-GST. These classifications have varying implications for how GST is applied. Here’s a breakdown of the key differences between .....

As per V. Ramaswamy, the CEO of Cargowings Logistics, the implementation of GST on the logistics sector was supposed to bring a lot of alignment in terms of value-added services all across the realm of Indian logistics. Ramaswamy also said that the same would pave the path for investments of cutting.....

GST is believed to be instrumental in the thriving of startups in India. It is expected to be a boon to medium and small enterprises. However, as with every system, it is also likely to carry some barriers. Higher Limit Registration Threshold As per the laws of GST, a business with an annual.....

There is a saying that 'Health is Wealth,' which suggests that when a person's health is excellent, everything else falls into place. Every new change brings with it both positive and negative effects and GST has impacted the healthcare industry in both ways. GST has been implemented to eliminate mu.....

The aforementioned tax rates announced by the GST council have been met with mixed responses, very much like in the case of the tax rates announced for other product categories. The people connected to the Indian apparel industry expressed their delight and gratefulness over the fact that the taxati.....

GST on furniture significantly impacts the final cost of the commodity. The GST tax rate on wood, iron, and steel is much higher than the VAT rates. This has, in turn, led to an increase in the cost of furniture made from these products. It is also important to note that the tax liability on manufac.....

The GST that is paid on liquidated damages can be utilised as an input tax credit (ITC) to set off any future tax liability. However, one must keep in mind that it is subject to the restrictions and conditions imposed under the GST Act.   If you would like to educate yourself further regarding the.....

A GST bill is required to be issued against all the services provided with all important details like invoice number, the value of the services, GST rate, etc., clearly mentioned on it.   There is no specific format of a GST invoice for YouTubers/bloggers, but there is a list of details that are c.....

SAC is the Services Accounting Code (SAC) in which services are classified. The SAC is strictly a six-digit numeric. The first two digits are the same for all services and that is 99. The major nature of service is represented in the next two digits, whereas the last two digits indicate the detailed.....

Along with filing the mandated monthly or quarterly GST  returns, a freelancer has to file an annual return as well. It is compulsory for freelancers registered under the GST Act to file the correct returns within the stipulated date. Non-filing of returns can result in the imposition of stiff penal.....

Let us assume that a trader from Mumbai sells a desktop computer for ₹30,000 to another trader in Pune. The SGST, in such a scenario, will be 14% while the CGST will be 14% (in Maharashtra). As such, the trader must pay ₹4,200 as SGST and ₹4,200 as CGST.   In case the trader from Pune sells the de.....

If goods/services are being supplied from one place to another within the same state (intra-state supply), both CGST and SGST are levied together by the central and the state government respectively. The amounts collected as SGST and CGST are equal as both central and state governments have an equal.....

IGST is applicable on all interstate transfers of goods and services. However, in certain cases, an individual or a business might be eligible to claim a refund of the GST they paid to the government. One can claim a GST refund in the following two cases: Foreign Tourists: A foreign tourist who s.....

1. Effective Against Cascading Tax Effect GST has consolidated a slew of indirect taxes into a single tax. As a result, taxation of various services and products has become easier. Further, it has eliminated the tax-on-tax effect also known as cascading effect.   To understand that with an exampl.....

Input Tax Credit for Capital Goods Any input tax credit on capital goods can be availed of in one instalment. Claiming ITC is not allowed for capital goods if the person has claimed ITC depreciation for their GST component. One can opt for either income tax depreciation or claim ITC. Input.....

The simple division between the components helps to differentiate between intrastate and interstate supply of goods and services and mitigate a host of indirect taxes. Now that you know the main components and types of GST in India and their essential details, it should be easier to understand how i.....

The long and short of it is this – even though the goods and services tax does not impact lending directly as there is no GST on loan amount, the overarching effects of the tax regime have undeniable ramifications when it comes to various types of loans. For any prudent loan seeker, understanding h.....

The introduction of GST has revolutionised small business in a number of ways. By eliminating existing cumbersome taxation policies and ushering in a unified regime, businesses have been able to simplify their workflows, boost their credibility and gain better access to loans. If you haven’t already.....

There are several benefits of the Central Goods and Services Tax, some of which are listed below. Elimination of Multiple Taxes: Before the GST was implemented, both the Centre and states charged different rates of taxes on the same goods and services. As a result, multiple taxes were levied on g.....

All indirect taxes levied by the Indian Central and State governments on goods and services have been eliminated by the GST. Goods and Services Tax has had a significant influence on the economy, affecting a wide range of industries in various ways. The government's sole goal in establishing this wa.....

GST on hotel rooms has simplified and rationalised the tax structure and rates. It significantly reduced the end cost for consumers and also introduced provisions for Income Tax Credit. Improved regulations of GST on the hospitality industry in India has made it easier for both the service providers.....

Timely transportation of goods is an essential component to the growth of any economy and essential to maintain the demand and supply chain. It is also an important contributor in rapid industrialisation and growth. While the government has imposed GST on transportation charges, this has a marginal .....

If you do not file your GSTR 7 on time, a penalty will be levied on a daily basis as follows — Rs. 100 under the Central Goods and Services Tax (CGST) Rs. 100 under the State Goods and Services Tax (SGST)   This means the GSTR 7 late fees come up to Rs. 200 per day. The maximum limit, ho.....

This sums up the rates of GST on educational services as well as the common exemptions. So, if you are a recipient of these services, you can be more aware of the GST charged on them. Alternatively, if you are a provider of educational services, knowing these details can help you pay GST at the righ.....

If you didn't submit the return by the deadline, you are required to pay a fine of ₹50 each day. However, when a NIL return is filed, no reduction allowance is granted.

Not filing the return timely will lead to a heavy penalty. Also, if the taxpayer misses filing the GSTR 5, he/ she wouldn’t be able to file the next month’s return as well.  18% per year interest will be charged on the outstanding amount as a penalty. The time period starts from the 21st of ev.....

If you fail to file GSTR 8 return on time, you will be obligated to pay a penalty of Rs. 200 (Rs. 100 CGST and Rs. 100 SGST/UTGST) per day. However, the taxpayer is only subject to a maximum penalty of Rs. 5,000. In addition to the late payment penalty, the taxpayer is also subject to an annual int.....

The implementation of the GST taxation system has long been in the works in India. Different rates of GST for different agriculture products makes it evident that a lot of care has gone into deciding the different rates. Since “agriculturalists,” as defined under the GST Act, are exempt from paying .....

There are heavy fines and penalties associated with delays in GSTR 11 filing. The taxpayer will be charged an interest of 11% annually on the outstanding tax amount. The late fee is Rs. 200 per day, of which Rs. 100 is the SGST and Rs. 100 is the CGST.

GST on e-commerce has overhauled the taxation system of the industry. It has made the taxation process much more transparent and seamless. Make sure to keep a check on whether you are required to collect and pay GST. If you are, make sure to pay it regularly and keep careful records

Energy-efficient air conditioners have gained popularity in recent years due to their reduced energy consumption, which helps lower their environmental impact. While air conditioners fall under the 28% GST bracket, the Government of India is holding discussions on reducing the GST rate for energy-ef.....

While there can be no doubt that the introduction of GST has significantly eased the taxation system and procedures in the country, the high rates of GST on cement will affect a wide range of parties, including manufacturers, consumers, and the real estate/infrastructure industry. We can expect a re.....

The new GST for electrical items has been implemented to eliminate several tax forms such as VAT, service tax, etc. It has been introduced to bring more transparency to the tax system as well as to make the tax paying system an easier process for consumers.    However, every new change is associat.....

In terms of India's tax history, the GST system marks a turning point. It has undoubtedly made the tax system simpler, but moving forward will require ongoing innovation and a cooperative approach. 

Most security services are subject to GST, but there are specific cases where exemptions apply. These exemptions pertain to the nature of the recipient availing the services or the type of services being rendered. Here are some of the key exemptions: Security Services Provided to Government Entitie.....

OIDAR service providers need to get OIDAR GST registration to enhance the credibility of their business. There are serious repercussions involved like hefty penalties, legal charges, etc., in case an entity or firm is eligible for registration but chooses not to register itself. Therefore, eligible .....

Throughout this article, we understand that electricity and its supply fall under Article VII of the Indian Constitution. Thus, this puts it out of the purview of taxation under the GST Act. Hence, even though electricity can be classified as a good, it remains out of the grasp of GST at the moment......

Branded cereals that are sold in unit containers of over 25 kg come under the purview of GST. In such cases, GST on food grains is charged at 5%. However, if food grains are sold loose, GST at a nil rate (i.e. no GST) is levied. The provisions for the same are mentioned in Chapter 10 of the GST Act,.....

To file the GST, it is essential to register your company first. You can easily check your GST registration application process by tracking the ARN status. The registration process may take up to 15 days to complete.

GST on painting and other artworks is 5% and 12% respectively. Chapter 97 of the HSN code contains both artwork GST rates and HSN code details of paintings and artifacts. GST has been implemented to increase tax system transparency and make the process of paying taxes simpler for customers. The intr.....

GST for watches and clocks are the same across most categories. It is important to know the GST rate on products before purchasing them since it does have an impact on the total price you pay for the product. 

The HSN code list is generally beneficial for traders and business owners during invoice preparation and calculation of GST on black pepper, cardamom, coffee, tea, etc. The unique numerical identity eliminates the chances of confusion and errors. One can find the HSN code online to check the applica.....

GST rates for personal hygiene products vary across categories, affecting pricing and consumer choices. Here are the rates for different categories of personal care items: Category GST Rate Soaps and Hand Wash 18% Shampoos, Conditioners, Hair Oils 18% Personal Hygiene Products (.....

The Indian government has issued the GST tax rate and the GST rate structure. The outlined GST tax rates dairy goods, bird eggs, natural honey, and edible animal products fall in several different GST slabs, varying from zero tax on some products to 12 percent on some products.

Step-1: You must first log in to the GST Portal and choose “Services”. then navigate to the “User Services” option and to “My Applications”.  Step-2: Select one of the three scenarios in which a taxpayer must make a payment: Scenario 1: You haven’t paid anything and don’t have a PRN (Payment R.....

Earlier, commerce transactions involved multiple indirect costs when goods were moved from one region to another. It led to the increased final price of products, thereby fuelling inflation. However, with the introduction of Goods and Services Tax, the unified tax structure has been instrumental in .....

All GST practitioners must adhere to the validity norms for their GST licence. Here are a few things to keep in mind: All GST practitioners must write and pass exams conducted by the GST authority that are notified by the GST commissioner from routinely.  Candidates who are applying to become .....

The distribution of various credits under IGST, CGST and SGST is required to be done in a manner prescribed by the GST. Here are some rules that every Input Service Distributor under gst must be aware of:  If tax credit is available against one specific input service that is used solely by just o.....

Currently, Luxury Tax all across India is currently uniform and standardised all across the country under the purview of GST. Depending on the revenue levels, tariff rates, type of goods and services rendered, etc. The rate of taxation will be levied as per applicable GST. 

HSN Code Products  GST Rate 2101  Water; deionised distilled or demineralised water in containers not more 250 litres NIL 2102  Water; mineral water as well as aerated water, which does not contain sweeteners or flavourings NIL 2103  Sauces and similar preparations; m.....

Under the Goods and Services Tax, jewellers and diamond merchants can claim an input tax credit (ITC). They can claim ITC of all inputs, including: Capital goods Packing materials   However, inputs provided under Section 17(5) of the CGST Act, 2017 are not liable for the tax credit. You .....

Section 17(5)(ab) of the CGST Act disallowed Input Tax Credit (ITC) on various items, including motor vehicles. So, you can not claim ITC on tyres. However, since the purchase of trucks does not come under clause (a) or (aa) of this section, you can avail ITC on truck tyres.    The automobile sect.....

Before the various GST Acts were enacted, leased cars were charged a 14% Value Added Tax (VAT) along with a 15% Service Tax. However, under the current GST regime, a mid-sized sedan on lease is taxed at a GST rate of 28% with an additional 15% cess charges.   According to the Lease Plan Ltd., the .....

No Claim Bonus (NCB) is a discount for not making any claims on your insurance policies. The implementation of GST has had a significant impact on NCBs.   Before the introduction of GST, NCBs were not subject to any tax. However, after the implementation of GST, NCBs are subject to a surcharge of .....

The implementation of the Goods and Services Tax (GST) in India has had a significant impact on the shipping industry, particularly in terms of shipping charges. While there have been some challenges in the implementation of GST, particularly with regard to the classification of goods and services a.....

Rail freight will benefit greatly from the anti-inflationary effects of the GST transport service rate of 5%. Eliminating the requirement for companies to keep numerous warehouses across states to escape CST levies and state entry fees, however, it will help the logistics industry, including railway.....

Any non-resident Online Information and Database Access or Retrieval (OIDAR) service provider is eligible to file GSTR-5A. The only condition is that they must be providing services to an unregistered person, government, or local authority.   The GSTR-5A is required to be filed even if these servi.....

Before the implementation of GST, all credit card-related services attracted a 15% service tax. Post-2017, a 18% credit card EMI GST rate is followed as a norm. To understand this, consider this example: EMI Component Amount 15% Service Tax and 18% Credit Card EMI GST Rate Loan amount .....

Here is a step-by-step guide to help businesses stay updated on HSN codes and avoid classification errors, ensuring correct tax filings: Visit the GST website Log in to the GST portal using your credentials Click on Services, then User Services, and select Search HSN Code On the Search.....