Probably everything you need to know about GST as a business organization .

What is GST?

GST(Goods and Services Tax) is an indirect tax which is levied on any transactions between seller and purchaser.

What is Indirect Tax?

It is tax levied on goods and services rather than on income.

Is Income Tax is also part of GST?

No,Income Tax is a part of Direct Tax.

How to register in GST?

Visit the GST Portal at to register and allot yourself a GSTIN number.

Is it neccessary to register in GST?

If your business turnover is less than 20 lakh per annum or if you are a customer then it is not required to register in GST.

How GST is different from VAT?

VAT(Value Added Tax) is a tax upon tax i.e it is levied on the total amount whereas GST imposes taxes upon Gross Amount.

What is Gross Amount?

It is the price which the manufacturer sets for the product.

How tax is collected on every step if product is selled from manufacturer to retailer and then to customer?

Tax is collected upon gross amount from manufacturer and retailer and then on profit acquired between retailer and customer.

How to know how much tax is on my product or services?

There is a HSN(Harmonised System Nomenclature) Code related to every goods and SAC(Services Accounting Code)Codes related to every services and tax is collected according to codes. These codes are same for every State.

What is CGST,SGST and IGST?

CGST(Central Goods and Services Tax) collected by Central Government and SGST(State Goods and Services Tax) collected by State Government are levied when the transaction happens in same State(Intra State) whereas IGST(Integrated Goods and Services Tax)collected by Central Government only are taxes levied when transactions occurs between different States(Inter State)

How tax is divided between CGST,SGST and IGST?

For intra State supplies tax is split into CGST and SGST whereas for inter State supplies all tax goes into IGST.For example, for a product at tax of 18% and sold in same State so 9% goes to CGST and 9% goes to SGST and nothing to IGST whereas for a product sold in different State all 18% goes into IGST and nothing to CGST and SGST.

What is Input Tax Credit?

Input Tax credit means that at the time of paying tax on output the tax paid in inputs can be reduced. The input credit in GST means for example: If you are a manufacturer, supplier, e-commerce provider or any of the person registered under GST are eligible to claim input credit for tax paid by you on your purchases. If the payable tax on output is Rs.500 the tax paid on input will be 350 and you can claim the input and only pay 150 as tax.

How to file GST Returns?

GST Returns are divided into various parts such as GSTR-1, GSTR-2,GSTR-3 and others out of which these three are important.

What is GSTR-1?

It is filed on 10th of every month like 10 April,10 May and so on. This is a page in GST Portal in which a Seller registered under GST, files the number of sales he made to other purchasers, and other related info. In case of any errors he amends the changes into GSTR-1A

What is GSTR-2?

It is filed on 15th of every month like 15 April,15 May and so on. This is a page in GST Portal in which a Purchaser registered under GST, files the number of purchases he made from other sellers, and other related info.If the seller has already filled the transactions details, then this info is autopopulated in purchaser portal and if he thinks that the seller has made some error in data then he makes the required changes and files GSTR-2.

What is GSTR-3?

It is filed on 20th of every month like 20 April,20 May and so on. This is a page in GST Portal in which a Seller registered under GST,approves or rejects the changes as made by the purchaser and thereby files the GSTR-3

What happens after filing the GST Returns?

After filing the GST Returns, the ITC(Input Tax Credit) is either given or taken from the purchaser.

What if I buy a product from an unregistered Dealer ?

In that case the one who is registered under GST will pay the taxes under the reverse charge mechanism.

What is reverse charge?

For every transactions made from an unregistered supplier and if the amount exceeds the limit of Rs.5,000 daily,then a reverse charge is applicable in case of intra-state supply. Since the registration under GST is mandatory in inter-State supplies so reverse charge is not applicable.

How tax is payed under reverse charge?

Suppose,you purchased some goods from an Ecommerce Website,the website will charge the tax from you and will pay the tax.

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