GST stands for Goods and Services Tax, a comprehensive, multi-stage, destination-based tax that is levied on every value addition. It replaced multiple indirect taxes like VAT, service tax, and excise duty, creating a unified tax structure across India. GST is categorized into CGST (Central GST), SGST (State GST), and IGST (Integrated GST) depending on the type of transaction.

GST is important because it simplifies the tax system, reduces the tax burden, increases compliance, boosts the economy, and benefits both businesses and consumers. It represents a significant step towards a more efficient and transparent tax regime in India.

To get a GST number (GSTIN), we need to register your business on the GST portal. This involves providing key details like your business type, PAN, address, bank account information, and contact details. After submitting your application, it will be reviewed, and upon approval, you’ll receive your GST number.

• Businesses with an annual turnover exceeding Rs. 40 lakh (Rs. 20 lakh for services).
• Entities involved in inter-state supply of goods and services.
• E-commerce operators and those selling through e-commerce platforms.
• Casual taxable persons and non-resident taxable persons.
• Individuals and businesses subject to reverse charge mechanism.
• Agents supplying goods or services on behalf of other taxable persons.
• Input service distributors and TDS/TCS deductors under GST.

The GST registration threshold limit in India is:

• Rs. 40 lakh for businesses dealing in goods.
• Rs. 20 lakh for service providers.

• For special category states, the limits are lower, the states with lower GST registration threshold limits are: Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, Uttarakhand, Jammu & Kashmir. For these states, the threshold limit is Rs. 20 lakh for goods and Rs. 10 lakh for services.

• Businesses with an annual turnover exceeding Rs. 40 lakh for goods and Rs. 20 lakh for services.
• Entities involved in the inter-state supply of goods and services.
• E-commerce operators and those selling through e-commerce platforms.
• Casual taxable persons and non-resident taxable persons.
• Individuals and businesses liable to pay tax under the reverse charge mechanism.
• Agents supplying goods or services on behalf of other taxable persons.
• Entities distributing input tax credit to their branches.
• Entities required to deduct tax at source (TDS) or collect tax at source (TCS) under GST.
• General threshold limits: Rs. 40 lakh for goods and Rs. 20 lakh for services.
• Special category states threshold limits: Rs. 20 lakh for goods and Rs. 10 lakh for services.
• Special category states: Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, Uttarakhand, Jammu & Kashmir.

A GSTIN (Goods and Services Tax Identification Number) is a unique 15-digit alphanumeric code assigned to every registered taxpayer under the GST regime in India. Here’s a breakdown of its structure:

• First 2 digits: Represent the state code.
• Next 10 digits: Represent the PAN (Permanent Account Number) of the business.
• 13th digit: Indicates the number of registrations within a state for the same PAN.
• 14th digit: Is typically “Z” by default.
• 15th digit: Is a check code used for detection of errors.

The GSTIN is essential for various GST-related procedures, including filing returns, claiming input tax credits, and making payments.

If you don’t pay your GST, several consequences can follow:

• Interest: You will be charged interest on the unpaid amount, typically at a rate of 18% per annum.
• Penalties: A penalty of 10% of the tax amount due, subject to a minimum of Rs. 10,000, may be levied.
• Legal Action: Persistent non-payment can lead to legal action, including the possibility of prosecution for tax evasion.
• Restriction on Business Activities: Your ability to conduct business may be restricted, and your GST registration could be canceled.

It’s crucial to stay compliant with GST regulations to avoid these penalties and ensure smooth business operations. If you’re facing difficulties,  Consult Us Today!

Yes, Special Economic Zone (SEZ) units within the same state require separate GST registrations. Each SEZ unit is considered a distinct entity for GST purposes, and therefore, must obtain its own GSTIN. This is because SEZ units are treated as separate from the Domestic Tariff Area (DTA) and have specific benefits and compliance requirements under GST.

Yes, a provisional GSTIN can be used until a new one is issued. When you apply for GST registration, you are initially provided with a provisional GSTIN, which allows you to conduct business and comply with GST regulations. The Provisional GSTIN (PID) should be converted into final GSTIN within 90 days.

The due date for filing the annual GST return (GSTR-9) is 31st December of the year following the relevant financial year. For example, for the financial year 2023-24, the due date would be 31st December 2024.

Yes, you can claim Input Tax Credit (ITC) under GST, provided you meet certain conditions:

• Possession of a Tax Invoice: You must have a valid tax invoice or debit note issued by a registered supplier.
• Receipt of Goods or Services: You must have received the goods or services.
• Tax Payment: The supplier must have paid the tax charged to the government.
• Filing of Returns: You must have filed the relevant GST returns.
• Utilization: ITC can only be claimed for business purposes. It cannot be claimed for personal use or for goods and services exempted under GST.

There are also some restrictions and conditions on claiming ITC, such as blocked credits for certain goods and services.

Here are the penalties for late GST filing:

• Late Fee: Rs. 100 per day under CGST and Rs. 100 per day under SGST, totaling Rs. 200 per day. The maximum late fee is capped at Rs. 5,000.
• Interest: Interest at the rate of 18% per annum on the outstanding tax amount.
• Additional Penalties: For specific returns like GSTR-9, the late fee can vary based on the taxpayer’s annual turnover.

• A penalty of Rs. 10,000 or 10% of the tax due, whichever is higher, for failing to register for GST even you are eligible for GST.
• A penalty of Rs. 10,000 or the tax amount collected, whichever is higher, for collecting GST but not depositing it to the government within three months.