GST Basics Explained
GSTIN means GST identification number assigned to every person registered under GST.
GSTIN is a 15-digit number assigned to every taxpayer registered under GST.
Where the location of the supplier and place of supply of goods or services are in the same state/union territory, it is treated as intra state supply of goods or services.
Where the location of the supplier and place of supply of goods or services are in two different states or two different union territories or a state and union territory, it is treated as inter-state supply of goods or services.
Exempt supply means supply of any goods or services or both which attracts nil rate of tax or which may be exempt from tax and includes non-taxable supply.
Zero rated supply means any of the following supplies of goods or services or both:
Taxable event under GST is supply of goods or services or both. CGST and SGST/UTGST will be levied on intra state supplies. IGST will be levied on inter- state supplies.
Reverse charge means liability to pay taxes is on the recipient of goods or services instead of supplier of goods or services in notified transactions.
If the receipt of supply is from an unregistered person, then the registered person who is receiving goods or services is liable to pay tax under reverse charge.
No, a person without GST registration can neither claim ITC nor collect GST from his customers.
Any registered person who fails to furnish the returns within the due dates shall be liable to pay a penalty of Rs 100 per day subject to a maximum of Rs 5000.
All taxpayers filing return in GSTR 1 to GSTR 3 are required to file an annual return. However, the following persons are not required to file annual return
Payment should be made on or before 20th of every month.
Electronic cash ledger means a summary of all the deposits or payments made by a taxpayer. It is maintained on GST portal.
Manual or physical challans are not allowed under GST regime. It is mandatory to pay the challan online.
There is a single challan prescribed for CGST, SGST, IGST, interest, penalty etc under GST regime.
No, the taxpayer cannot utilize the amount available in one major head for discharging the liability of other major head or minor head. For example, amount available in CGST cannot be utilized for paying the liability under SGST or IGST or interest.
Electronic credit leger means summary of the input credit available to registered taxable person. It is maintained on GST portal.
Electronic liability register means details of total tax liability of a taxpayer for the month. It is maintained on GTS portal.
Input Tax means CGST, SGST, IGST or UTGST paid on inward supplies of goods or services of a registered person. It also includes tax paid on reverse charge basis and import of goods or services.
A registered person can take the credit of all input tax paid by him on the goods or services which are used or intended to be used in the course of business subject to conditions.
Yes, it includes taxes paid on input goods, input services and capital goods.
The registered person shall be entitled to the credit only upon receipt of last instalment.
ITC of IGST can be used to pay the liability of
ITC of CGST can be used to pay the liability of
ITC of SGST can be used to pay the liability of
An invoice is a commercial instrument issued by a supplier of goods/services to recipient. It consists of supplier and buyer details, description and quantity of items sold, date of shipment, prices, discounts, delivery and payment terms.
No, the unregistered person cannot issue tax invoice.
Bill of supply should be issued instead of tax invoice in case of the following supplies:
For issuing a credit note, an invoice should have been issued earlier. A credit note may be issued in the following cases:
For issuing a debit note, an invoice should have been issued earlier. A debit note may be issued in the following circumstances:
The tax invoice should contain the following details:
The time limit for availing ITC is due date of filing of return for the month of September of succeeding financial year or date of filing of the relevant annual return whichever is earlier.
Supply of goods:
Supply of services:
Invoice should be issued within 30 days of supply of service.
It means supply which consists of two or more supplies in conjunction with each other. One of the supply is principal supply and tax liability shall be at the rate of principal supply. For example, charges supplied along with mobile phones.
It consists of two or more supply which can be supplied independently still supplied together. Tax liability is applicable to the supply that attracts highest rate of tax. For example, gift consisting of sweets and chocolates.
HSN means harmonized System nomenclature for goods. SAC means Service Accounting codes for services.
The board or commissioner by notification may specify the number of digits of HSN /SAC code that a taxpayer is required to mention.
Small taxpayers whose aggregate turnover in the preceding financial year does not cross 75 lakhs can register under Composition scheme.
The person registered under composition scheme has to pay the tax on quarterly basis on or before 18th of the succeeding quarter.
No, the registered person under composition scheme is not eligible to claim input tax credit.
No, the registered person under composition scheme is not permitted to collect tax. It means they cannot issue tax invoices.