Q1. What is GST?

Goods and Service Tax, i.e., GST, is an indirect tax on the supply of goods and services in India. The tax is paid by the consumer and remitted to the government by the businesses selling goods and services.

Q2. Who has to get registered under GST?

• Who has a turnover of more than the prescribed amount in any year, i.e., 40 lakhs in case of goods and 20 lakhs with services (limit is 50% in case of northeastern and Himalayan states)
• A person who supplies via an E-commerce operator (e.g., online resellers).
• If you want to sell goods out of state.
• If you want to export.
• If you are required to deduct TDS or TCS as per GST law.
• Casual taxable person.
• Input service provider or his agent.
• Non-resident taxable person.
• A person who supplies retrieval services (e.g., Cloud services, OTT platforms, software) or online information from outside India resides in India.

Q3. What are the benefits of GST registration?

• Avoid penalty – heavy penalty up to 100% of GST amount or 10,000 whichever is high.
• Bigger market – Can sell online or out of state.
• It increases credibility in the market.
• It facilitates taking a loan from Bank or NBFC.
• It facilitates in availing government benefits.
• It helps in the collection of bad debts – if both buyer and seller are GST registered, then the seller can report to the MSME portal if the buyer defaults in payment.
• You can collect GST from your customers.
• You can pass on the credit to your customers.
• You can Utilize input credit on taxes paid to your suppliers.

Q4. What is the process of GST Registration?

• Confirm your payment and details with our team
• Provide all documents required
• We will apply for ARN
• Verify your mobile number and email ID with OTP generated
• ARN will be generated within 15-30 minutes
• After this, we will submit all the relevant documents on the GST portal
• If no clarification is required from the department, then a certificate of registration will be issued within ten working days from the date of submission of the application or
• If the department requires any clarification, then within seven days from receipt of clarification

Q5. What if don’t get registered for GST or sale without a GST number?

• If you are not required by law to get registered then there is no problem with not getting registered
• If you are required by law than 10,000/ or 10% of tax due amount whichever is higher has to be paid
• If you are registered under GST and do not show GST number at your place of business then a penalty of 25000/- is levied
• If you supply goods and services without GST number than
  • Material can be confiscated
  • The vehicle can be detained in which material is supplying
  • Up to 100% penalty on tax amount or 10000/- whichever is higher

Q6. Why Government has implemented GST? and Why it is better than old sales and service tax?

• Everything online – All transactions, including registrations, returns, payments, etc., are done online, making compliance easy, fast, hassle-free, and with less corruption.
• One Nation One Tax – GST ensures uniformity of tax rates and structure as it increases certainty in business doing and choice of place of doing business.
• It nullifies any increase in taxes due to multiple transactions of the same product within India. So it improves competitiveness for trade and industry or manufacturing sector.
• GST benefits one tax system from manufacturer to the consumer resulting in the transparency of taxes paid to final consumers.
• GST charge tax on only value addition at each stage, increasing efficiency and preventing leakages of taxes.
• GST has been introduced as a single indirect tax. It replaced many existing taxes like Excise duty, Octroi, Special Additional Duty of Customs, Service Tax, and VAT (approx. 15 types of taxes). So it reduces lots of compliance and regulations for businesses.
• GST brings accountability and regulation to unorganized sectors like the textile industry.
• Input Tax Credit – if the seller or service provider paid GST on material purchased, then the same can be deducted from their total output tax liability. Input and output need to match to take tax credit advantage, which helps in removing cascading effect.

Q7. What are tax rates in GST? GST council has fitted over 1300 goods and 500 services under four tax slabs of 5%, 12%, 18%, and 28%, and tax on gold is kept at 3% and rough precious and semi-precious stones placed at a rate of 0.25% to encourage these industries.

• 5% on household necessities, coal, Indian sweets or Life-saving drugs,
• 12% on the computer and processed food,
• 18% on hair oil, toothpaste, soaps or capital and industrial goods,
• 28% on luxury items like cars, AC, or high-end motorcycles
• Few products do not attract any tax under the new GST regime, e.g., MilkFew products are not covered under GST, e.g., Fuel and Alcohol
• Surcharge- is the additional charge levied on GST. The surcharge applies on cars and other luxury goods and tobacco products vary from 12% to 200%

Q8. What is GST registration under a regular scheme?

Any person who provides goods or services in the market and has to get himself registered as per GST law will be registered as a regular taxpayer. Regular tax players can get the benefit of an input tax credit. But he has to comply with more compliances compare to other schemes.

Q9. What is GST registration under the composition scheme?

GST has introduced a composition scheme for reducing compliances for small taxpayers. Any taxpayer whose turnover is below INR 1.5 crores on sale of goods or below INR 50 lakhs in case of services can opt for a composition scheme. It is optional. If a person is registered under a composition scheme, he can not avail the benefit of input tax credit and he has to pay a fixed rate of GST on his total turnover or revenue. GST rates under for Composition scheme

Manufacturers and Traders	1%
Service providers	5%
Restaurant services	6%

Q10. What is meant by Casual Taxable Person under GST?

The person who supplies goods and services occasionally in taxable territories where he does not have a fixed place of business is known as the casual taxable person (CTP). This person acts as an agent or principal or in any other capacity supplies goods and services for the furtherance of a business.

Q11. What is meant by Non-Resident Taxable Person in GST?

Any Non Resident person who supplies goods and services occasionally whether as a principal or agent or in any other capacity supply goods or services but who has no fixed place of business in India. He has to get himself registered as NRTP.