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What is the Full Form of GST?
The full form of GST is Goods and Services Tax.
What is GST?
Goods and Services Tax (GST) is a unified indirect tax imposed on the supply of goods & services across India. It replaced multiple cascading taxes, promoting transparency & uniformity. Moreover, GST aims to simplify taxation, reduce compliance burdens, & ensure seamless credit flow across manufacturing, distribution, and consumption stages.
Who is Required to Pay GST?
- Businesses with an annual turnover exceeding Rs. 40 lakhs (Rs. 20 lakhs services).
- E-commerce operators selling goods or services via digital platforms.
- Individuals or firms involved in the interstate supply of goods.
- Importers of goods & services within India’s jurisdiction.
- Casual taxable persons conducting temporary business operations.
- Non-resident taxable individuals providing services in India.
How is GST Calculated and Deducted?
- Determine the type of supply: Goods, services, or both.
- Identify the applicable GST rate as per product classification.
- Compute taxable value by excluding exempted charges or discounts.
- Apply the GST rate to the taxable value to find the total tax.
- Deduct eligible input tax credit (ITC) from total GST liability.
- Pay the remaining GST amount to the government via the online portal.
What are the Penalties of Non-payment of GST?
- 10% of the unpaid tax or Rs. 10,000, whichever is higher.
- 100% penalty for deliberate tax evasion or fraudulent filing.
- Interest at 18% per annum on the unpaid GST amount.
- Cancellation of GST registration for repeated non-compliance.
What are the Latest Updates in GST?
- E-invoicing made mandatory for businesses exceeding Rs. 5 crore turnover.
- A new GST return filing portal has been introduced for improved transparency.
- Input Tax Credit is restricted to invoices uploaded by suppliers only.
- Penalty for fake invoices increased under new compliance rules.
- Simplified composition scheme extended to more small-scale traders.
Frequently Asked Questions (FAQs)
1. Is GST applicable to exports?
No, exports are zero-rated supplies and don’t come under the purview of GST.
2. Can I claim a GST refund?
Yes, you can claim a GST refund for exports or excess tax.
3. Is GST registration mandatory for freelancers?
Yes, if annual turnover exceeds the threshold, the freelancers must register for GST.
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