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GST Registration Process

GST Registration is the process through which a taxpayer can get themselves registered with the GST council as one through the official government-run portal dedicated to the tax regime. 

 

When the taxpayer takes care of the GST Registration process, they will receive w.....

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GST Returns

A GST return is a document containing the following information:

  • Total purchase details

  • Total sales made

  • Total tax collected on sales, known as the output tax

  • Total tax paid on purchases called the input tax

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GST Invoice

Since the implementation of the Goods and Services Tax (GST), every GST-registered business must share a GST invoice with their customers/clients. A GST invoice can be defined as a bill that enlists services and goods transferred from the seller to the buyer and the amount of money the latter owe.....

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GSTR 3B

The GSTR-3B returns form is something that you must file every month as a registered taxpayer. This form will contain a consolidated summary of every inward and outward supply your business has been involved with, in a relatively simplified form. Some of the features are as follows:

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Reverse Charge Mechanism (RCM) Under GST

RCM is also known as Reverse Charge Mechanism. RCM under GST is a mechanism under which the tax liability is to be borne by recipients of the supply of goods and services and not the the supplier of such goods and services.

 

In the case of the RCM under GST, the tax liabilit.....

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GSTR-10

In case your GST registration has been surrendered or cancelled, you must file your returns using the Form GSTR-10, otherwise known as the Final Return. This is a statement of stocks held by such a taxpayer on the day before the effective cancellation date.

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GSTIN Number

GSTIN, or Goods and Services Tax Identification Number, is a 15-digit alpha-numeric code that your firm gets after being registered under the GST regimen of India. If the annual turnover of your business exceeds the threshold limit or the firm does inter-state business, you should mandatorily app.....

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List of GST Slab Rates in India

With the Goods and Services Tax (GST), the Indian government introduced one of the biggest post-independence taxation reforms. GST is primarily devised to maintain a uniform indirect tax structure across the country. It aim.....

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GSTR-1

In GSTR-1, proprietors or suppliers submit the accounts of the outward supply of goods on a monthly or quarterly basis. GSTR-1 requires the individuals involved in the outward supply of goods and services to specify the details of the recipient and the supply.

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GSTR 2A

GSTR-2A is a purchase-related document which is provided to each business registered on the GST portal. It describes the transactions a business makes in a specific month, thus noting all invoice details. It is, however, a read-only document, serving only to inform a business of the invoice detai.....

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Goods and Services Tax Network (GSTN)

The Goods and Services Tax Network (GSTN) is a unique and intricate IT enterprise that establishes a channel of communication and interaction between taxpayers, the central and various state governments, and other stakeholders. This single consolidated IT platform has given shape to the main obje.....

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GSTR 2

GSTR-2 can be defined as a purchase return that each GST registered person has to file mandatorily. While filing the GSTR 2 Return document, one has to.....

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GST Payments and Refunds

GST Payments are the transactions of a firm's outstanding Goods and Services Tax (GST) sum that needs to be paid on a regular basis. It is one of the most critical requirements for a company to maintain compliance. The Indian government implemented the GST regime in 2017 to increase transparency .....

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GST Composition Scheme

The GST composition scheme simplifies GST formalities for taxpayers whose turnover does not exceed the ₹1.5 Crores mark. These taxpayers need only pay GST at a fixed rate, and so, small businesses benefit the most with the composition scheme under GST. 

 

Moreover, the GST search .....

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GST Compliance

The introduction of the new GST tax system has ushered in major tax reform in the nation. The new system brings together many state and central taxes into one common, fungible tax. This much-needed reform introduced greater transparency and eased administrative paperwork into the tax collection f.....

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Quarterly Return and Monthly Payment (QRMP) Scheme Under GST

Quarterly Returns with Monthly Payment Scheme, commonly referred to as QRMP scheme under GST allows eligible taxpayers to file their Form GSTR-1 and Form GSTR-3B returns on quarterly basis. However, these taxpayers will pay their tax dues on monthly basis with the help of a challan.

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Invoice Furnishing Facility in GSTR 1

IFF, also known as Invoice Furnishing Facility is a facility that is provided only to quarterly taxpayers under the QRMP scheme. Under IFF in GST, taxpayers can file the details of their outward supplies in the first two months of the quarter to pass on the credit to their recipients.

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GSTR-4

The GSTR-4 returns is the kind of returns form which is supposed to be filed by taxpayers that have opted for the composition scheme. One of the defining features of the GSTR 4 returns form is that it only needs to be filed once a year, unlike other GST returns forms. The GSTR 4 form was introduc.....

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GSTR 9 - Annual Return Filing

As per the CGST Act, every registered taxpayer has to file an annual return, GSTR-9, once for each financial year. In GSTR-9, they are required to furnish the details relating to:

  • Purchases

  • Sales

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GST HSN Code List

The HSN code’s full form is ‘Harmonized System of Nomenclature’. This system is employed across the world to identify traded commodities. 

 

It was developed by the World Customs Organization (WCO) and put into effect in 1988 as a convenient way to classify goods systema.....

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GSTR-9C

GSTR 9C is a reconciliation statement that businesses registered under the Goods and Services Tax (GST) regime are required to file on an annual basis. It is essentially a GST audit form that businesses must use to reconcile the information provided in their annual return (GSTR 9 reconciliation) .....

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GST on Cars

GST on cars can range between 0% to 28% depending on the car type and usage. In addition to GST, compensation cess will also be applicable on sale of new cars.

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Pro Forma Invoice Under GST

The concept of a pro forma invoice has been around for a while now. It has been used as the primary tool for ensuring the collection of dues from the buyer by the supplier. However, since the implementation of the Goods an.....

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Late Fees and Interest on GST Return

As per GST penalty regulations, interest of 18% per annum will be levied on the applicable GST penalties that have been levied for the days post the due date.

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GST on Gold

GST is levied on gold jewellery by way of making charges or as a fixed percentage of the value of gold. Generally, 3% GST is levied on gold jewellery and 5% making charge will also be levied under GST.

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GST on Labour Charges in India

GST will be levied on manpower and related services supplied to an individual or business. This can include labour and manpower services such as data entry operators and other clerical services, security and related services, driving services, housekeeping services, etc. The GST on labour charges.....

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GST Penalties and GST Appeals

Section 122 to Section 128 of the Central Goods and Services (CGST) Act, 2017, provide the details of the various types of GST frauds and also prescribe the applicable penalties. This information is crucial for all Chartered Accountants (CAs), tax professionals, and business owners as even a mino.....

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GST on Laptops

GST is applicable to most services and products in the country, including laptops and computers.

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GST on Mobile Phones

The GST regime has introduced uniform tax brackets for almost every commodity, from packaged food to automobiles. A GST tax at the rate of 18% is also applicable on mobile phones. 

&nb.....

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GST on Real Estate

Among the most significant cornerstones in the economy of India is the real estate business. The real estate industry generates approximately 6-8% of India's GDP and is second only to the IT industry in terms of job creation. It was implemented with the sole intention of simplifying complian.....

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Impact of GST on Restaurant Services

Previously, a multitude of indirect taxes, like value-added tax (VAT), central excise duty, and service tax, were levied. These were later replaced by three forms of GST, namely CGST, SGST, and 

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GST Exemption

The rules regarding GST rates are liable to change over time. For instance, in July 2022, the GST rates for various categories of goods, including food grains and dairy products, were amended.

 

In light of this, it is a good idea to keep abreast of the GST rates of various c.....

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GST on Logistics Industry

The Logistics industry of a country is often referred to as the backbone of any economy. It is known to play a critical role in developing countries such as India, where the consumption of goods is always growing, and the demand for the same is always high. Hence, one can fairly assume that a wel.....

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Impact of GST on Startups

GST is believed to be instrumental in the thriving of startups in India. It is expected to be a boon to medium and small enterprises. However, as with every system, it is also likely to carry some barriers.

  • Higher Limit Registration Threshold

As per the l.....

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GST on Healthcare Services

To procure healthcare services, you are now required to pay GST on healthcare services in addition to your bills. Furthermore, India's pharmaceutical industry has become the third biggest in terms of volume.

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GST on Clothes

GST levied on clothes depends on the cost of your purchased clothes. GST of 5% will be levied on readymade garments whose price doesn’t exceed ₹1000 and GST of 12% will be applicable on readymade garments whose price exceeds ₹1000.

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GST on Furniture

Under the GST regime, the applicable tax on finished wooden furniture is 12%. Wooden furniture is typically designed using plywood. The applicable rate of GST on plywood is set at a steep 28% as opposed to the much lower VAT rate of 5-6% earlier. The high cost of GST on plywood has ultimately led.....

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GST on Liquidated Damages

Typically, liquidated damages are levied in the event of a contract breach, performance failure, and non-delivery of supplies, among others. This article will take you through the concept of liquidated damages itself and the applicable 

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GST on YouTube Income

From work to leisure, everything is digitalized, with people even generating income out of online services. A lot of millennials have opted for online vlogging as a career on social media platforms. One of the most popular platforms is Youtube.  There are taxation policies for such sources o.....

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GST on Advertising Sector

For the success of every business, you need striking advertisements. Advertisements become an effective communication method for products or services to interact with the user. By means of hoardings, posters, newspapers, magazines, tabloids, videos on television and social media sites, etc., an a.....

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Freelancers Under GST

With the implementation of GST, a wide variety of service providers, including freelancers, came within the purview of taxation. Before we discuss the various aspects of freelancers under GST, you must know what a freelancer is. A freelancer is not under the employment of a single organisation. T.....

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SGST – State Goods and Service Tax

SGST, or State Goods and Services Tax, is one of the categories of Goods and Services Tax (GST) levied by individual states in India. Considered to be one of the biggest tax reforms in India, GST replaced all the complex state and central government tax procedures and brought a uniform tax regime.....

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Difference Between CGST, IGST and SGST

India is a federal country, which means both central and state governments can levy taxes on the goods and services produced or consumed in the country. Based on the tax levying authority (central government or state government) and the place of consumption of the product/goods, the GST law class.....

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IGST - Integrated Goods and Services Tax

Integrated GST or Integrated Goods and Services Tax is one of the four types of GSTs levied by the Central Government on interstate supply of goods and services. The revenue collected under IGST is apportioned equally between the Central and the State Governments (of the state where the goods/ser.....

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Advantages and Disadvantages of GST

Although GST is a significant tax reform in India, there are GST benefits and disadvantages that can, and did, come up.

 

To understand it, let's take a look at the advantages and disadvantages of GST in this article.

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Input Tax Credit in GST

One of the essential features of GST is the seamless way in which input credit can flow across the country’s supply chain. Input tax credit is a reference to the tax that has already been paid by an individual at the time they choose to purchase goods or services. This tax is also available as a .....

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Components of GST in India

There are 4 components of GST such as CGST, SGST, IGST, and UTGST. So, the kind of tax to be paid under GST depends on whether the nature of supply is inter-state and intra-state. When the supply of goods or services happens within a state or intra-state transactions, both the CGST and SGST will .....

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GST on Loans

As its name suggests, GST only applies to goods and services – which means, it can’t apply to loans. However, in practice, GST applies to loans in a very indirect manner. This is because in the process of disbursing a loan, the bank or lender ends up offering the applicant a number of services wh.....

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GST Registration for Small Businesses

Before starting any business, one should become well-versed with the relevant legislation and regulation around their area of undertaking. This also includes any taxes that their business may be liable to pay. The Goods and Services Tax, introduced in 2017, aims to help small businesses by gettin.....

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CGST - Central Goods and Services Tax in India

The Goods and Services Tax (GST) was implemented in India by the central government from July 1, 2017, onwards. Drafted with the aim of “One Nation One Tax,” the GST subsumed several different taxes levied by governments under the three broad sections mentioned below.

  • Central.....

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GST Collections

GST collections are done to bring transparency and simplify the taxation process for citizens. It has eliminated the cascading tax effect. Also, GST benefits small businesses (with a turnover of Rs. 20 Lakhs to Rs. 75 Lakhs) since it enables them to employ the

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GST on Hotel Rooms

Any entity providing services that falls in the accommodation, food and beverage services category has to pay GST for hospitality services. When it comes to accommodation, be it a luxury hotel or a small homestay, no exemption is provided for GST on hotel rooms.

 

Compared to.....

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GST on Transportation

GST on transportation is applicable on goods and on passengers as well, be it via air, road, rail, and all other forms of transport. Transportation is a vital aspect of any economy, as any hindrance in the same has far-reaching effects on the economy. The transport GST rate varies from 0 to 18% a.....

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GSTR 7

Under the GST regime, some individuals or entities need to deduct tax at source under section 51 of the Central Goods and Services Tax (CGST) Act. GSTR 7 is a monthly return that is required to be filed by these individuals. The form must be filed for each month by the 10th of the following month.....

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GST on Educational Services

GST or Goods and Services Tax is levied on most of the products and services sold in India. Since the provision of education is also a service, GST becomes applicable here too. To understand how GST on educational services works, let us first check out the definition of education. 

&.....

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GSTR 6

GSTR 6, also known as goods and service tax return, is a monthly statement that needs to be filed by firms that are also Input Service Distributors (ISD). While filing GSTR 6 returns, organisations must include information about inbound supplies received/purchases made from other registered taxpa.....

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GSTR 5

GST 5 return is a tax return that has to be filled by the non-resident taxpayer for their inward and outward supplies. GSTR 5 return filing is an important process as it consists of all business details, including sales and purchases, of a non-resident India

 

Before we dig i.....

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GSTR 8

GSTR 8 is a return that e-commerce operators must file if they are obligated to deduct TCS (Tax collected at source) under GST. GSTR 8 comprises information on supplies made through an e-commerce platform as well as the sum of TCS received on such goods.

 

It's important for .....

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GST on Agriculture Products

India is among the largest agrarian countries in the world. Its agricultural output and the percentage of the population engaged in the agricultural industry is among the highest globally. As a result, taxation on the agricultural industry and its output have always been minimal. 

&n.....

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GSTR 11

GSTR 11 is a return form under the GST Act that must be filed by every individual or organisation who has been issued a Unique Identity Number (UIN) to obtain refunds on the supplies they have purchased for their own consumption. The GSTR 11 form must be filed for the months on which they make pu.....

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GST on E-commerce Business

In India, e-commerce has been growing by leaps and bounds over the last few years. Many domestic players have emerged in the market, while many global companies have also set up operations in India. Additionally, customers have demonstrated a high level of preference for shopping through e-commer.....

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GST on Air Conditioners

As per the regulations of the Goods and Services Tax, the supply, as well as the installation of air conditioners are considered as a bundled supply. In addition to the main supply of the unit, installation fees applicable on air conditioners are additional. As per GST regulations, the supply of .....

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GST on Cement

With a production capacity of over 340 million metric tonnes, the cement industry in India contributes significantly to a range of government infrastructure projects and is also widely used by the masses. Given its wide usage, the applicable GST rate on cement is quite high. Over the course of th.....

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GST on Electronics & Electrical Items

Service tax, excise duty, and VAT (Value-added Tax) were replaced by the Goods and Services Tax (GST), which went into effect in 2017 and covered all products and services. Based on the HS.....

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GST on Construction

Prior to July 2017, there were several taxes imposed on both the products and the services, making the taxation of goods and services complicated. But implementing the GST (Goods and Services Tax) has simplified the procedure by doing away with excise taxes, VAT, customs taxes, etc.

&nbsp.....

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GST on Security Services

Security services are generally defined as the services that are furnished for the protection of any person or property by an individual or a firm. The security of a property includes tangible as well as intangible property. Security services were initially not defined within the CGST Act of 2017.....

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OIDAR Services Under GST

The Online Information and Data Access or Retrieval (OIDAR) services are a set of services that are availed and delivered via electronic or internet mediums. These services involve very little or no physical interface between the consumer and the supplier. The advent of SAAS products and cloud te.....

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GST on Electricity Supplies

The supply of electricity is one of the most significant sources of revenue for any state government. GST on electricity has proven to be a bone of contention, with most consumers confused about whether it can be categorised as goods or services. Many also remain confused about whether the same i.....

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GST on Food Grains

From 18 July 2022, certain kinds of food items and grains became subject to a 5% Goods and Services Tax (GST).

 

The term ‘edible food grains’ refers to edible seeds, particularly wheat, meslin, rye, barley, oats, rice, maize, sorghum grain, and other cereals, that are harves.....

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GST ARN Status

When you apply for Goods and Services Tax (GST) registration, a simple way to track your application status online is to use Application Reference Number or the ARN. ARN status helps you in monitoring the progress of your GST registration application. The ARN is an alphanumeric code that is .....

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GST Rate on Painting, Artworks & Antiques

Like other sectors, GST has been also implemented in the paintings and artwork industry. Individuals involved in this business are obligated to pay GST on paintings, artworks, and antiques.

 

The GST council determines the GST rate using the

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GST Rate on Watches and Clocks

Goods and Services Tax is now levied on everything, including household essentials, such as watches. Clocks and watches have long been treasured family heirlooms and also essential goods. Owing to the many different kinds of timepieces available in the market, the GST on watches can differ from p.....

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GST Rate on Tea, Coffee and Spices

The Goods and Services Act of 2017 classifies goods and services into several categories depending upon their consumption, production, manufacture, etc. To eliminate the confusion and ensure seamless categorisation and classification of a variety of goods in each category, the GST council adopted.....

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GST Rate on Cosmetic, Perfumes & Toiletries

The Goods and Services Tax (GST) levied by the government of India is an indirect tax against all the products and services manufactured, produced, or consumed in the country. All the products and services are categorised and then classified in an organised manner via Harmonised System of Nomencl.....

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GST Rate on Milk, Dairy Products, Egg & Honey

The GST Council in India places different services and goods, such as the rate of  GST on dairy products, milk, eggs, and honey, in different tax categories.

Here is a list of GST rates for dairy products, which fall under chapter 4 of the HSN code:

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GST Form DRC 03

For voluntary tax contributions toward demands or tax shortfalls discovered later after the deadline for filing returns for a financial year has passed, a DRC-03 form present under the GST legislation must be filed. These voluntary tax contributions can be made before the issuance of the notice (.....

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GST on Steel and Iron

India is, at present, the world’s second-largest producer of steel and iron, and it has managed to dominate the steel and iron sector mainly because of the ample availability of raw materials in our homeland, namely coal and iron ore.

 

The union government has waived off cus.....

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GST Practitioner

Since the introduction of the Goods and Services Tax (GST), GST practitioners have been employed in facilitating compliance with GST norms. GST practitioners are professionals who are registered with the

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Input Service Distributor (ISD) in GST

An Input Service Distributor (ISD) is an officer under GST who is entrusted with the distribution of GST input tax credits of its own GSTIN or its other units and branches with a different

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Luxury Tax in India

Luxury Tax is a type of indirect tax or surcharge that’s levied on all goods and services that are deemed to be luxuries. This can include services rendered at spas, hotels and resorts. The luxury tax will not be levied on beverages and food that’s being served at hotels.  

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GST on Water and Water Based Products

Water and water-based products attract a GST of 5%. This includes distilled water, mineral water, spring water and groundwater. Please note that these GST rates also apply to any water-based products and beverages that are at least 50% water based on volume. This can include lemonade, soda, etc.&.....

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GST on Diamond Jewellery

The Goods and Services Tax (GST) is a comprehensive taxation system applicable to the supply of various goods and services, including diamond jewellery. The GST rate on diamond jewellery is dec.....

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GST on Tyres

Like most other goods, GST is also levied on tyres, which are an essential component of the mobility and automobile sector. Read on to know more about the applicable rate of GST on tyres and how it is calculated.&nbsp.....

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Impact of GST on Cabs & Taxi Services

Taxis are a lifeline for daily commuters residing in metropolitan cities. Whether yellow-and-black Premier Padmini in Mumbai or yellow Ambassadors in Kolkata, or Radio taxis, like Ola, Uber, etc., they all provide essential transportation services.

 

However, the main impact .....

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GST on Insurance

You have likely heard of the Goods and Services Tax, or GST if you are paying insurance for yourself and your family. It's a tax applied to most goods and services sold in India, including insurance products. It is important to know how GST on insurance premiums impacts you and how it affects the.....

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Impact of GST on Shipping Charges

The impact of GST on shipping charges has been significant, with the introduction of a uniform tax rate on transportation by sea. With the introduction of GST, a uniform tax rate of 5% is applied on ocean freight and shipping charges. The implementation of GST has brought about a significant redu.....

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Impact of GST Rates on Rail Transport

Indian rail transport is one of the largest rail networks in Asia, offering economical commuter services to people. The rail transport services have GST charges implied on it.

 

Before the implementation of the GST on rail freight, service tax was charged for the passenger bo.....

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GSTR 5A

The introduction of the Goods and Services Tax (GST) in 2017 has made the indirect tax regime simpler. However, a multiplicity of rules and forms still make it complex for many. 

 

For instance, every GSTIN-registered taxpayer needs to file a GST return form. However, th.....

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GST on Credit Card EMI

One of the most sought-after benefits of credit cards is the option to convert purchases into convenient and affordable EMIs. This feature allows you to pay for the purchased items in easy monthly instalments. 

 

However, with the introduction of the Goods and Services T.....

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Definition and Features of GST

The Union Government introduced the Goods and Services Tax to replace older indirect taxes, such as VAT, service taxes, and excise duty. Moreover, these reforms helped reduce the cascading effect of taxation and promote economic integration.

 

As per the Constitution (One Hundred and First Amendment) Act of 2016 and subsequent legislations, here is the vital GST information you need to know:

  • The current indirect tax regime came into effect on July 1, 2017

  • This taxation applies to the supply of goods and services by categorising them into different slabs: 5%, 12%, 18%, and 28% 

  • Goods, like certain petroleum products, alcohol for human consumption, and tobacco, remain outside the purview of this system

  • To oversee and guide implementation, the Act notified the creation of a GST Council 

  • The Council consists of the Union Finance Minister and members from state and union territories  

  • There are three components of GST under the taxation laws: CGST, SGST/UTGST, and IGST 

History of GST

In 2000, the then Prime Minister deployed the Kelkar Task Force on Indirect Taxes to design a model for the GST regime. While it was supposed to be implemented much earlier, various administrative and political roadblocks delayed its implementation.

 

Check out the following timeline to get historical information about GST implementation:   

Year

Event

2006

The then Union Finance Minister scheduled the introduction of the Goods and Services Tax on April 01, 2010

2009

An Empowered Committee finalised its First Discussion Paper (FDP) on GST

2010

The Union Government postponed its introduction, citing structural and implementing hurdles

2011

The Central Government introduced the bill to the Constitution (115th Amendment) for its implementation, which subsequently lapsed after the dissolution of the 15th Lok Sabha

2014

The Central Government reintroduced GST legislation as the Constitution (122nd

Amendment) Bill in the Lok Sabha

2015

The Lok Sabha approved the Bill, but it was referred to a Select Committee of the Rajya Sabha and Lok Sabha; the select committee submitted its report in July 2015

2016

Rajya Sabha and Lok Sabha passed the amended bill, and it was notified as a Constitution (101st Amendment) Act after the President’s assent

2017

Lok Sabha and Rajya Sabha passed the CGST, UTGST, IGST, and GST (Compensation to States) Bills of 2017 


After states passed the respective SGST Bills of 2017, the new regime came into effect on July 1, 2017

Objectives of GST

The Union Government introduced the reformed indirect taxation system to achieve the following goals: 

  • Implementation of the Concept of ‘One Nation, One Tax’

With GST implementation, the government has tried to create a common market in India with a uniform taxation system. The government believes that this uniformity of taxes will eventually reduce the tax burdens. 

  • Input Tax Credit (ITC)

This allows businesses to claim credit on the tax paid on inputs used in the provision or production of goods and services.

  • Introduction of Simpler Compliance Process

By introducing this system, the government sought to reduce the paperwork required for compliance and ease its tax administration process. Furthermore, it also aims to widen the tax base in India and increase revenue from indirect taxes.

Components of GST

The new indirect taxation broke down the system into three elements, which include the following:

  • Central GST: The Central Government levies and collects the CGST on the intra-state supply of goods 

  • State/UT GST: While the SGST/UTGST also apply to the intra-state supply of goods, state governments levy and collect them

  • Integrated GST: The centre levies this type of GST in business, and you will have to pay it on inter-state supply or imports/exports of goods

New Compliances Under GST

The introduction of this reformed tax regime has brought several new systems, such as:

1. E-Way Bill

Suppliers generally issue these bills when they wish to send their goods to another state or union territory. These e-way bills are necessary for the commercial movement of goods valued over ₹50,000 across state borders. 

2. E-Invoicing

e-invoicing means submitting a standard invoice, which has already been generated, on an e-invoice portal that is commonly used. It eliminates the requirement for manual data entry while filing the GSTR-1 and for the generation of Part A of e-way bills.

Tax Laws Before GST

Before GST, both state and central governments levied various taxes. The states mainly collected taxes in the form of Value Added Tax (VAT). Previously, every state had a different set of rules and regulations. 

 

On the other hand, the centre taxed inter-state sale of goods in the form of Central State Tax (CST). Local bodies also levied taxes in the form of entertainment tax. The following is alist of some of the indirect taxes that were applicable in the pre-GST regime:

  • Central Excise Duty

  • Duties of Excise

  • Additional Duties of Excise

  • Additional Duties of Customs

  • Cess

  • State VAT

  • Central Sales Tax

  • Purchase Tax

  • Luxury Tax

  • Entertainment Tax

  • Entry Tax

  • Taxes on lotteries, betting, and gambling

Differences Between GST and the Indirect Tax Regime

Check the following table to learn about the distinctions between this new and older tax regime:

Parameters

GST Tax Structure

Old Indirect Tax Structure

Regulatory Law(s)

There is only one law to regulate GST, which is the GST Act of 2017.

Separate laws existed to regulate the various indirect taxes. VAT, meanwhile, was at the discretion of the states.

Tax Structure

The payable tax is made of two components, namely CGST and SGST


Half of the collected GST revenue goes to the state, while the other half goes to the Centre

Indirect taxes were a summation of multiple taxes, including VAT, CST, and Excise Duty, among others

Cascading Effect (Tax on Tax)

Reduces the cascading effect, making the regime very simple

High cascading effect of taxes

Tax Burden

The tax burden is usually lower

The tax burden used to be higher due to the cascading effect of taxes

Learn about the online GST registration process, fees, and more on Bajaj Markets.

Frequently Asked Questions

What is GST?

It is an indirect tax applicable to a supply of goods and services in India. The government collects it from the ultimate point of consumption.

What is the full form of GST?

The full form of GST is Goods and Services Tax.

What are the different types of GST?

There are four types of GST, namely CGST, SGST, IGST, and UGST.

Who collects IGST?

Both central and state governments collect IGST based on the prefixed revenues.  

Can I pay the GST bill online?

Yes, you can pay the GST bill through the GST portal.

How is GST calculated?

You can compute your taxes based on the slab in which the relevant good or service falls. These slabs include the rate of 5%, 12%, 18%, and 28%.

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