What is GST, or goods and services tax? 

Ans. It is a consumption tax on products and services that is based on destination. It is suggested that taxes be collected at every stage, from production through final consumption, with setoff for taxes already paid at earlier stages. In essence, only value addition will be taxed, and the eventual consumer will be responsible for paying the tax. 


Benefits of GST? 

You can write off tax paid to the federal government (IGST) as an input. abolition of double taxation 

Taxes at set rates. The federal and state accounts should receive payments for the CGST and SGST, respectively. 

Exports will not be subject to taxation, in contrast to the current system where refunds of some taxes are prohibited because of the division of indirect taxes between the Centre and the States. 

A clear tax scheme. Increases transparency in the indirect tax system and is predicted to lower the inflation rate. included a number of taxes, including VAT, ST, etc. No ambiguity regarding appropriate taxation. 


What paperwork is required for GST registration ? 

     Card PAN

     Wherever feasible, use an Aadhaar card. 

     Digital signature for businesses and LLPs. 

     Valid email address and mobile number. 

     A picture of the proprietor, the partners, and the authorized signers. 

     Certificate of Registration received under former tax regulations. 

     Proof of the authorized signatory’s appointment, together with their information. 

     Proof of the main business location. 

     Opening page of a bank statement maintained in the name of an entity or an individual. 

How is the GST set up in India ? 

Given India’s federal system, the GST will have two parts: the Central GST (CGST) and the State GST (SGST). GST across the value chain will be imposed simultaneously by the Center and the States. On every provision of products and services, tax will be imposed. On all transactions occurring inside a State, the Center would charge and collect the Central Goods and Services Tax (CGST), while States would impose and collect the State Goods and Services Tax (SGST). For the purpose of paying off the CGST liability on the output at each stage, the input tax credit of CGST would be accessible. 


Similar to how SGST paid on inputs would be credited toward SGST paid on products. Cross credit use would not be allowed. 


Who is subject to the proposed GST regime’s tax obligations ? 

The taxable person must pay tax on the supply of goods and/or services under the GST scheme. Except in specific circumstances where the taxpayer is required to pay GST even though he has not yet exceeded the threshold limit, tax liability occurs when the taxable person crosses the turnover threshold of Rs. 20 lakhs (Rs. 10 lakhs for NE & Special Category States).


All intrastate sales of goods and/or services are subject to the CGST/SGST, whereas all interstate sales are subject to the IGST. The rates for the CGST, SGST, and IGST are listed in the Schedules to the relevant Acts. 


What is GSTN and how does it fit into the GST system? 

The Goods and Service Tax Network is known as GSTN (GSTN). To meet the needs of GST, a Special Purpose Vehicle called the GSTN has been established. For the purpose of implementing GST, the GSTN will offer a shared IT infrastructure and services to the federal and state governments, taxpayers, and other interested parties. The GSTN’s duties would, among others: I make registration easier.


Providing various MIS reports to the Central and State Governments based on the taxpayer return information, providing analysis of taxpayers’ profiles. Forwarding the returns to Central and State authorities,

Computing and settling IGST, matching of tax payment details with banking network, matching the taxpayers’ profile, and operating the matching engine for matching, reversal, and reclaiming of input tax credit. 


A unified GST portal as well as applications for registration, payment, returns, and MIS/reports are being developed by the GSTN. Additionally, the GSTN would construct interfaces for taxpayers and integrate the common GST portal with the current IT systems for tax administration. Additionally, the GSTN is creating back-end modules for 19 States and UTs, such as assessment, audit, refund, and appeal (Model II States). The GST back-end systems are currently being developed by the CBEC and the 15 Model I States. To ensure a smooth transition, GST front-end system integration with back-end systems must be finished and tested well in advance. 

What consequences may one expect if they file late or not at all ? 

For each day after the due date that you are late, up to a maximum of 5,000 Rupees, you must pay a late fee. A penalty for failure to file can be up to 10% of the unpaid tax or 10,000 Rupees. 

What does GST Law mean by reverse charge ? 

According to Section 2 (98) of the CGST Act of 2017, a “reverse charge” is when a recipient of a supply of goods or services or both is required to pay tax rather than the supplier of those goods or services or both under Section 9’s Subsections (3) or (4) of the CGST Act of 2017 or Section 5’s Subsections (3) or (4) of the IGST Act of 2017. 


How does the GST credit system operate ? 

Under the “dual GST” system, which taxes both goods and services simultaneously, the CGST and SGST are two separate levies. Therefore, it is not allowed to use GST input tax credit to pay GST output tax burden and vice versa. The IGST credit pool, on the other hand, is interchangeable with the CGST and SGST, and the same can be used to pay the IGST, CGST, and SGST, as well as vice versa. The IGST credit will be applied first to IGST, then CGST, and the remaining amount would be applied to SGST liabilities. Similar to how a CGST credit will be applied first to CGST and then to IGST, an SGST credit can be applied first to SGST liabilities and then to IGST. 


The requirements for claiming an Input Tax Credit under GST? 

When referring to a taxable person, the term “input tax” refers to the Products and Service Tax (GST) that is charged on any supply of goods and/or services to him that are used or are intended to be utilized in the course of conducting business. 

A registered individual will be qualified to submit an Input Tax Credit (ITC) claim upon satisfying the requirements listed below: 

Products or services 

Items delivered by a supplier to a third party against a document transferring ownership of the products at the instruction of a registered person.


Providing a return 

When the final lot or installment of goods is received, when delivery is made in lots or installments, ITC will be available for use. 


The ITC already claimed will be added to the output tax liability and interest will be due on the tax involved if the supplier fails to supply the goods and/or services within 180 days of the date of the invoice. After supplier payment, ITC claims will once more be accepted. 

If depreciation has been claimed on the tax component of a capital good, no ITC will be permitted. 

What is the deadline for registering under the GST Act if an invoice or debit note is received after ? 

Any individual must register within 30 days of the day on which they become required to do so, in the manner and under the conditions that may be outlined in the regulations, or by the deadlines periodically announced by the government in this respect. 


What are the multiple GST rates and what is HSN ? 

The eight-digit HSN code, or Harmonized System of Nomenclature, is unique to services and goods. The five main mandated tax rates for goods and services under GST are 0%, 5%, 12%, 18%, and 28%. The GST rate for services rendered by distributors will be 18%, and the HSN will be 997159. Each of the products and services has a unique HSN to promote automation and transparency. 


Is it required for an existing taxpayer to move their tax registrations to the GST Common Portal ? 

It is necessary to convert the current tax registrations to GST registrations on the GST common portal. All taxpayers who are currently registered under any State or Federal laws, such as the Value Added Tax Act, the Central Excise Act, the Service Tax, Entry Tax, Luxury Tax, and Entertainment Tax (apart from taxes imposed by local bodies), must sign up for the GST. This is crucial for business continuity and will make it easier to use transitory credits.