Tax · Indirect tax mesh
GST
GST replaced 17 indirect taxes when it launched July 2017. 4 main slabs: 5% / 12% / 18% / 28%. Mandatory registration above ₹40L turnover (₹20L for services, ₹10L for special-category states). Composition scheme available below ₹1.5Cr for trade / ₹50L for services. The single most-amended tax law in Indian history — verify rates BEFORE invoicing.
Who needs this
Anyone running a business, freelancer with > ₹20L revenue, e-commerce sellers, exporters, importers. Salaried employees: usually irrelevant unless you also run a side business.
Key dates
- GSTR-1 monthly (turnover > ₹5Cr)11th of next month
- GSTR-1 quarterly (QRMP, < ₹5Cr)13th of month after quarter
- GSTR-3B monthly20th / 22nd / 24th of next month (state group)
- Annual return GSTR-9Dec 31 of next FY
Key decisions
- Q1
Do I need GST registration?
Mandatory if turnover > ₹40L (goods) / ₹20L (services) / ₹10L (NE/hill states). Voluntary below threshold — useful if your buyers want input tax credit. E-comm sellers: mandatory regardless of turnover.
- Q2
Composition scheme — should I opt in?
YES if you sell B2C with low margins + don't need ITC + turnover < ₹1.5Cr trade / ₹50L services. Pay 1% (trader) / 5% (restaurant) / 6% (services) — flat, no ITC. NO inter-state sales allowed.
- Q3
GSTR-1 vs GSTR-3B?
GSTR-1: outward supplies (sales invoices), monthly/quarterly. GSTR-3B: summary + tax payment, monthly. Both mandatory. Reconcile against GSTR-2B (auto-pull from suppliers' GSTR-1).
- Q4
What's e-invoicing?
Mandatory for all B2B invoices if your aggregate turnover > ₹5Cr (since Aug 2023). Generate IRN (Invoice Reference Number) on the IRP portal. Below threshold: optional.
CBDT rules + tax-act references
- GST slabs: 0%, 5%, 12%, 18%, 28% (+ 1-3% cess on luxury / sin goods).
- Registration thresholds: ₹40L (goods) / ₹20L (services) / ₹10L (NE/hill).
- Composition: 1% trader / 5% restaurant / 6% service. Below ₹1.5Cr / ₹50L.
- E-invoicing mandatory > ₹5Cr aggregate turnover (since Aug 2023).
- ITC reversal under Rule 42/43 if used for exempt supplies.
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