Know Your GST



Anonymous
watch_later 8 months, 2 weeks ago

What is GST?

What is the full form of GST?

Whether GST is on sale or payment?

Whether GST is applicable to every trader?

Whether one can do business without registering under GST?

What is reverse charge in GST?

These question will solve every beginners confusion about GST.


Comments:
I have answered this question, but will advice to read articles on knowyourgst.com to further understand each topic in full depth. Each question you asked has multiple implication and answer below is generalised. - Pulkit Sharma

1 Answer

Pulkit Sharma watch_later 8 months, 2 weeks ago
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What is GST?

GST is tax collected by government on supply of goods or services or both. GST is indirect tax introduced in India in 2017.

The main acts under GST are CGST Act, IGST Act and each state has a SGST Act.

What is the full form of GST?

Full form of GST is Goods and Services Tax.

Whether GST is on sale or payment?

GST is neither on sale nor on payment. GST will be charged and collected on supply of goods or services or both.

Whenever you supply goods or services or both, tax needs to be charged.

However, GST is charged on advance payments. If you receive advance payment against a future supply, you are liable to tax.

Whether GST is applicable to every trader?

GST is applicable to every trade if he satisfy all the conditions specified. Once he becomes liable for GST registration or liable to pay tax, all provisions of GST are applicable to him.

Read below to understand when one need registration.

Whether one can do business without registering under GST?

Yes, one can do business without registration also. The limit specified for registration is Rs. 20 lakhs (10 lakhs in special states).

If your turnover is below 20 lakhs you do not require GST registration.

What is reverse charge in GST?

Reverse charge is way of collecting tax under which tax is to be paid by buyer or recipient of goods or services or both instead of seller/supplier.

In some cases such as buying from an unregistered person, buyer needs to pay tax.

I have tried to answer these faqs. For each question, there are separate articles written. You can read those individual articles to understand GST concepts.


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