GST FAQ – Get your GST Questions Answered

Goods and Services Tax (GST) is a tax that is applied to the supply of goods and services in India. GST is a comprehensive, multi-stage, destination-based tax that is levied on every value addition.

Are you a small or medium business owner in India? Are you confused about GST? Do you have a lot of questions about GST? Look no further! In this article, we answer some frequently asked questions about GST to help you understand it better.

1. What is GST?

GST - Goods and Service Tax is a tax levied on the supply of goods and services in India. It is a comprehensive, multi-stage, destination-based tax levied on every value addition. GST replaces all indirect taxes levied on goods and services by the central and state governments.

2. What is the GST rate?

The GST rate varies depending on the type of goods or services provided. There are four GST tax slabs - 5%, 12%, 18%, and 28%. Some items such as luxury goods and tobacco products are taxed at a higher rate of 28%. Essential items such as food items and books are taxed at a lower rate of 5%.

3. Who is liable to register for GST?

Every business that is involved in the supply of goods or services and whose annual turnover exceeds Rs. 40 lakhs (Rs. 10 lakhs for North Eastern and hilly states) is required to register for GST.

4. What are the different types of GST returns?

The different types of GST returns are:

GSTR-1: it contains details of outward supplies of goods and services which are made by the taxpayer. It is filed monthly.
GSTR-2: it contains details of inward supplies of goods and services which are received by the taxpayer. It is filed monthly.
GSTR-3: it contains details of the monthly return which is filed by the taxpayer. It is filed monthly.
GSTR-4: it is filed by the taxpayer who has opted for the composition scheme. It is filed quarterly.
GSTR-5: it is filed by the taxpayer who is a non-resident foreigner. It is filed monthly.

5. How can I file my GST return?

You can file your GST return online on the GST portal. You will need to register on the portal and obtain a username and password. Once you have registered, you can log in to the portal and file your GST return.

6. What is Input Tax Credit (ITC)?

Input Tax Credit (ITC) is the credit that a business receives for the taxes paid on the purchases it has made. For example, if you are a manufacturer and you have purchased raw materials, you will have to pay GST on the raw materials. You can claim this GST as Input Tax Credit when you file your GST return.

7. What is the penalty for not registering under GST?

If you are liable to register under GST and do not register, you may be penalized. The penalty for not registering under GST is 10% of the tax due, subject to a minimum of Rs. 10,000. If the tax due is not quantifiable, the penalty is Rs. 10,000.

8. Can I claim GST on goods and services that I purchase for personal use?

No, you cannot claim GST on goods and services that you purchase for personal use. GST can only be claimed on goods and services that are used for business purposes.

9. What is the GST Council?

The GST Council is a constitutional body that was established to make recommendations to the central and state governments on issues related to GST. The Council is chaired by the Union Finance Minister and comprises the Finance Ministers of all the states and union territories.

10. Can I make changes to my GST return once it has been filed?

Yes, you can make changes to your GST return once it has been filed. You can revise your return within a specific time period after filing your original return. However, you should ensure that the revised return is filed before the due date of the next return.

Conclusion

In conclusion, GST is an important tax that affects every business in India. It is important to understand the various aspects of GST to ensure that you comply with the regulations and avoid penalties. We hope that this article has helped you to understand some frequently asked questions about GST. If you have any further questions, please consult a tax expert.