Everything You Need to KnowAbout GST in India
A comprehensive guide to understanding GST, from basics to advanced concepts
GST Fundamentals
What is GST?
Goods and Services Tax (GST) is an indirect tax levied on the supply of goods and services in India. It replaced multiple cascading taxes with a single unified tax system.
GST Rates
GST has four main tax slabs: 5%, 12%, 18%, and 28%. Essential items are taxed at 0% or 5%, while luxury items attract 28% GST.
GST Registration
Businesses with turnover above ₹40 lakhs (₹20 lakhs for services) must register for GST. Registration is done online through the GST portal.
Input Tax Credit (ITC)
ITC allows businesses to claim credit for GST paid on purchases. This reduces the final tax liability and prevents cascading of taxes.
Composition Scheme
Simplified GST scheme for small businesses with lower compliance burden
Key Features
Important Points to Remember
Inter-State vs Intra-State
- •Intra-State: Within same state - CGST + SGST
- •Inter-State: Between different states - IGST
Penalties for Non-Compliance
- •Late filing: ₹50/day (CGST) + ₹50/day (SGST)
- •Non-registration: 100% of tax due or ₹10,000
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