Understanding GST: A Complete Guide for Businesses

1. What is GST?

GST (Goods and Services Tax) is an indirect tax that has replaced multiple state and central taxes in India. It is levied on the supply of goods and services and ensures a uniform tax structure.

2. Who Needs to Register for GST?

✔ Businesses with an annual turnover of ₹40 lakh (₹20 lakh for special category states)
✔ E-commerce sellers
✔ Service providers exceeding ₹20 lakh turnover
✔ Inter-state suppliers and exporters

3. GST Tax Slabs in India

GST is divided into four main tax slabs:
✔ 5% - Essential goods and services
✔ 12% - Processed food, business services
✔ 18% - Consumer goods and majority of services
✔ 28% - Luxury items and sin goods

4. How to File GST Returns?

GST returns must be filed monthly, quarterly, or annually based on the type of business. Businesses need to submit forms like GSTR-1, GSTR-3B, and GSTR-9 through the GST portal.

5. Benefits of GST for Businesses

✔ Simplifies tax compliance
✔ Eliminates cascading effect of taxes
✔ Boosts transparency in the system
✔ Enhances ease of doing business

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