Common GST Queries and Their Answers

Posted In | Finance | Accounting Software | India Accounting Tax

GST (Goods and Services Tax) is a critical subject matter that has revolutionized the taxation system in India. However, it often leads to various queries among citizens due to its complex nature. This article aims to address some of those common GST queries and provide their answers.

 

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What is GST?

GST is a comprehensive, multi-stage, destination-based tax that has replaced many indirect taxes in India. The GST is levied on the supply of goods and services.

 

What are the main components of GST?

GST is divided into three components - CGST (Central Goods and Services Tax), SGST (State Goods and Services Tax), and IGST (Integrated Goods and Services Tax).

 

Who should register for GST?

Any business that supplies goods or services and has an annual aggregate turnover in a financial year exceeding Rs 20 Lakhs (Rs 10 Lakhs for special category states) should register for GST.

 

How can I register for GST?

GST registration can be done online through the GST Portal managed by the Government of India. After the submission of necessary details and documents, a unique GSTIN is provided to the registered entity.

 

What are the benefits of GST?

GST brings transparency and simplicity to the taxation process. It eliminates the cascading effect of taxes and ensures that tax burdens are fairly distributed among different entities.

 

Can I claim Input Tax Credit (ITC) under GST?

Yes, businesses can claim ITC under GST for taxes paid on the inputs used for the manufacture or supply of goods or services.

 

What is the due date for GST returns filing?

The due date for filing GST returns is generally the 20th of the following month for most taxpayers. However, the dates can vary based on the type of taxpayer and the return form to be filed.

 

Remember, understanding the GST system can help you navigate it better, ensure compliance, and make the most of the benefits it offers. If you have more specific queries, it is advisable to consult a tax advisor or expert.