🏷️ Indirect Taxation

GST Act 2017

India's unified Goods and Services Tax — a destination-based, multi-stage tax on supply of goods and services, replacing a cascade of central and state taxes from July 1, 2017.

Jul 2017Effective Date
3Acts (CGST/SGST/IGST)
GST CouncilGoverning Body
GSTIN15-digit Registration
Overview

What is GST?

GST is a comprehensive, destination-based, multi-stage indirect tax levied on every value addition. It replaced central excise duty, service tax, VAT, CST, entry tax, and several other levies. GST has three components: CGST (Central), SGST (State), and IGST (for inter-state and imports).

GST Rate Structure

0%
Essential goods — food grains, milk, eggs, books
5%
Basic necessities — packed food, transport services
12%
Standard goods — processed food, computers
18%
Most services & goods — telecom, IT, hotels
28%
Luxury & demerit goods — cars, tobacco, aerated drinks
Registration

GST Registration Thresholds

Section 22

Normal Supplier

Mandatory registration if aggregate turnover exceeds ₹40 lakh (goods) or ₹20 lakh (services) in a financial year. Special category states: ₹20L / ₹10L.

Section 10

Composition Scheme

Available for suppliers with turnover up to ₹1.5 crore. Pay flat rates: 1% (traders), 2% (manufacturers), 5% (restaurants). Cannot claim ITC.

Section 24

Mandatory Registration

Compulsory regardless of turnover: inter-state suppliers, e-commerce operators, casual taxable persons, reverse charge recipients.

Section 16

Input Tax Credit (ITC)

ITC available on tax paid on inputs used in business. Conditions: possession of tax invoice, goods/services received, tax paid to government, return filed.

Compliance

GST Return Filing Calendar

Return FormWho Files?FrequencyDue Date
GSTR-1Registered suppliersMonthly / Quarterly11th (monthly) / 13th (QRMP)
GSTR-3BAll registered suppliersMonthly / Quarterly20th (monthly) / 22nd-24th (QRMP)
GSTR-4Composition dealersAnnual30 April after FY end
GSTR-9Regular taxpayersAnnual31 December after FY end
GSTR-9CTurnover > ₹5 croreAnnual31 December after FY end
GSTR-7TDS deductorsMonthly10th of next month
GSTR-8E-commerce operatorsMonthly10th of next month
Key Concepts

Important GST Provisions

1
Place of Supply Rules
▼
Determines whether a transaction is intra-state (CGST+SGST) or inter-state (IGST). For goods, place of supply is where goods are delivered. For services, specific rules apply — e.g., for immovable property, the location of the property.
2
Reverse Charge Mechanism (RCM)
▼
Under RCM, the recipient (instead of supplier) is liable to pay GST. Applicable on: goods/services notified by government, purchases from unregistered persons (select categories), imports of services. ITC available on RCM paid.
3
E-Invoice & E-Way Bill
▼
  • E-Invoice: Mandatory for taxpayers with aggregate turnover > ₹5 crore. B2B invoices must be reported to IRP (Invoice Registration Portal) to get IRN and QR code.
  • E-Way Bill: Required for movement of goods exceeding ₹50,000 in value. Generated on the E-Way Bill portal; valid for 1 day per 200 km for normal cargo.
4
GST Audit & Assessment
▼
  • Departmental Audit (Sec 65): Commissioner can order audit of registered person's books.
  • Best Judgement Assessment (Sec 62): If returns not filed, officer can assess tax based on available information.
  • Scrutiny (Sec 61): Officer can scrutinise return details and seek explanation for discrepancies.
  • Limitation: SCN must be issued within 3 years (5 years for fraud).
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