Question 1

Who needs to register for GST in India and what is the threshold?

Accepted Answer

GST registration is mandatory for businesses in India once your aggregate turnover crosses certain thresholds, or if you fall under specific categories.

Threshold limits for GST registration:

Business Type  Threshold

Supply of goods (general states)  ₹40 lakh 
 Supply of goods (special category states*)  ₹20 lakh 
 Supply of services (all states)  ₹20 lakh 
 Supply of services (special category states*)  ₹10 lakh

*Special category states include Manipur, Mizoram, Nagaland, Tripura, Megha

Question 2

What are the GST return filing deadlines for GSTR-1 and GSTR-3B?

Accepted Answer

Regular GSTregistered businesses must file multiple returns. The two most important ones are GSTR1 (outward supplies) and GSTR3B (summary return with tax payment).

GSTR1 (Details of Outward Supplies):

Turnover  Filing Frequency  Due Date

Above ₹5 crore  Monthly  11th of next month 
 Up to ₹5 crore (opted for QRMP)  Quarterly  13th of month after quarter

GSTR1 contains details of all your sales invoices, including B2B and B2C transactions, credit/debit notes, and export invoices.

GSTR3B

Question 3

How does Input Tax Credit (ITC) work under GST in India?

Accepted Answer

Input Tax Credit (ITC) is the mechanism under GST that lets you reduce the GST you owe (output tax) by the amount of GST you have already paid on your business purchases (input tax). It prevents the cascading effect of taxontax.

How ITC works:
If you sell goods with ₹18,000 GST collected and your purchases had ₹12,000 GST paid, you only deposit ₹6,000 to the government (₹18,000 minus ₹12,000).

Conditions for claiming ITC:
1. You must have a valid tax invoice or debit note from your supplier
2.

Question 4

What is the GST Composition Scheme and who is eligible?

Accepted Answer

The GST Composition Scheme is a simplified tax scheme for small businesses in India. Instead of filing detailed monthly/quarterly returns and charging GST at the standard rate, composition dealers pay a flat percentage of their turnover as tax.

Eligibility:
 Aggregate turnover in the previous financial year must not exceed ₹1.5 crore (₹75 lakh for special category states)
 For service providers and mixed suppliers, the limit is ₹50 lakh

Who CANNOT opt for composition:
 Manufacturers of ice cre

Categories

GST

Who needs to register for GST in India and what is the threshold?

What are the GST return filing deadlines for GSTR-1 and GSTR-3B?

How does Input Tax Credit (ITC) work under GST in India?

What is the GST Composition Scheme and who is eligible?