GST Basics for Individuals and Small Business Owners
In this guide
Step-by-step Process
What is GST?
Goods and Services Tax (GST) is a unified indirect tax on goods and services across India, replacing VAT, service tax, and excise duty. It has 5 slabs: 0%, 5%, 12%, 18%, 28%.
GST Registration Threshold
Mandatory registration if annual turnover exceeds: ₹40 lakh (goods), ₹20 lakh (services), ₹10 lakh (special category states). Voluntary registration is also allowed below these limits.
Register on GST Portal
Visit gst.gov.in. Click "Register Now". Fill GST REG-01 form with business details, PAN, Aadhaar, bank account. Upload documents. You will receive GSTIN within 7 working days.
File GST Returns
Regular taxpayers file GSTR-3B monthly (summary) and GSTR-1 monthly/quarterly (sales). Composition scheme filers use CMP-08 quarterly. File via the GST portal or accounting software.
Claim Input Tax Credit (ITC)
Businesses can claim credit for GST paid on purchases (inputs) against GST collected on sales. This avoids cascading taxes. ITC is reflected in GSTR-2B.
Official Government Portals
Common Questions
Do freelancers need to register for GST?
If a freelancer's annual service income exceeds ₹20 lakh (₹10 lakh in special category states), GST registration is mandatory. Below the threshold, it is voluntary.
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