What is GST?
GST is an Indirect Tax which has replaced many Indirect Taxes in India. The Goods and Service Tax Act was passed in the Parliament on 29th March 2017. The Act came into effect on 1st July 2017; Goods & Services Tax Law in India is a comprehensive, multi-stage, destination-based tax that is levied on every value addition.
In simple words, Goods and Service Tax (GST) is an indirect tax levied on the supply of goods and services. This law has replaced many indirect tax laws that previously existed in India.
Components of GST
- CGST Collected by the Central Government on an intra-state sale (Eg: transaction happening within Tamilnadu)
- SGST Collected by the State Government on an intra-state sale (Eg: transaction happening within Tamil NAdu)
- IGST Collected by the Central Government for inter-state sale (Eg: sTamil Nadu to Maharashtra)
In India, there are mainly 3 components of GST. The following table explains the 4 types of GST and compares them on various parameters:
| # | Central GST – CGST | State GST – SGST | Integrated GST - IGST |
|---|---|---|---|
| Tax Levied By | Central Government | State Government | Combined levy, collected by Central Government |
| Taxes that it will replace | Service tax, excise duty, countervailing duty (CVD), special additional duty (SAD), Additional duties of excise(ADE) effect | VAT, sales tax, luxury tax, entry tax, entertainment tax, purchase tax, Octroi, taxes on lottery | Central sales tax (CST) |
| Applicability | Supplies within a state | Supplies within a state | Interstate supplies and import |
| Input Tax Credit | Against CGST and IGST | Against SGST and IGST | Against CGST, SGST and IGST |
| Tax Revenue Sharing | Central government | State government | Shared between state and central governments |
| Exemption Limit | Rs 20 lakh annual turnover | Rs 20 lakh annual turnover | Exemption limit not defined |
| Composition Scheme | The dealer may use the benefit of turnover of Rs 50 lakh | The dealer may use the benefit of turnover of Rs 50 lakh | Composition Scheme is not available in this regard |
| Free Supplies | CGST is applicable on free supplies | SGST is applicable on free supplies | IGST is applicable on free supplies |
| Registration | Not applicable till the turnover exceeds Rs 20 lakh | Not applicable till the turnover exceeds Rs 20 lakh | Registration is necessarily mandatory if supply is made outside the states |
Required Documents
- Require Documents Address & ID proof of all Directors,
- Mandatory – PAN Card
- ID Proof – Voters Identity Card / Driving License / Passport / Aadhar Card
- Address Proof – Bank Statement / Electricity Bill / Telephone Bill / Mobile Bill
- Address Proof of registered office – Address proof of proposed registered office for registration of company.
Types of GST Returns
Any regular business:
| Return Form | Particulars | Interval | Due Date |
|---|---|---|---|
| GSTR-1 | Details of outward supplies of taxable goods and/or services effected | Monthly* | 10th of the next month |
| GSTR-2 | Details of inward supplies of taxable goods and/or services effected claiming input tax credit. | Monthly* | 15th of the next month |
| GSTR-3 | Monthly return on the basis of finalization of details of outward supplies and inward supplies |
Monthly* | 20th of the next month |
| GSTR-9 | Annual Return | Annually | 31st December of next financial year |
| GSTR-3B | Provisional return for the months of July 2017 to June 2018 | Monthly | 20th of the next month |
For composition scheme
| Return Form | Particulars | Interval | Due Date |
|---|---|---|---|
| GSTR-4 | Return for compounding taxable person | Quarterly | 18th of the month succeeding quarter |
| GSTR-9A | Annual Return | Monthly | 31st December of next financial year |
For specific registered dealers
| Return Form | Particulars | Interval | Due Date |
|---|---|---|---|
| GSTR-5 | Return for Non-Resident foreign taxable person | Monthly | 20th of the next month |
| GSTR-5A | Return for Non-resident persons providing OIDAR services | Monthly | 20th of the next month |
| GSTR-6 | Return for Input Service Distributor | Monthly | 13th of the next month |
| GSTR-7 | Return for authorities deducting tax at source. | Monthly | 10th of the next month |
| GSTR-8 | Details of supplies effected through e-commerce operator and the amount of tax collected | Monthly | 10th of the next month |
| GSTR-10 | Final Return | Once. When registration is cancelled or surrendered |
Within three months of the date of cancellation or date of cancellation order, whichever is later. |
| GSTR-11 | Details of inward supplies to be furnished by a person having UIN and claiming refund | Monthly | 28th of the month following the month for which statement is filed |