Goods & Service Tax (GST)
KAPG & Associates

The Goods and Services Tax (GST) is a comprehensive, indirect tax levied on the supply of goods and services in India. Implemented in 2017, GST replaced many central and state taxes, streamlining India’s tax system and promoting ease of doing business. Here’s a guide to understanding GST:

Here are some of the common accounting services offered to startups in India:

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GST Structure

CGST (Central GST): Collected by the Central Government on intra-state sales.

SGST (State GST): Collected by the State Government on intra-state sales.
IGST (Integrated GST): Collected by the Central Government on inter-state sales.
UTGST (Union Territory GST): Collected in Union Territories without legislatures.

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GST Rates

0%: Essential goods, such as unprocessed food items.

5%: Basic necessities, including essential food items and medicines.
12% and 18%: Standard goods and services, such as electronics, furniture, and most consumer goods.
28%: Luxury and sin goods, including cars, tobacco, and some luxury items.

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GST Registration

Mandatory Registration: Businesses with an annual turnover exceeding ₹20 lakh (₹10 lakh in special category states) must register for GST. Some sectors, like e-commerce and interstate service providers, require registration regardless of turnover.

Voluntary Registration: Smaller businesses can voluntarily register for GST to avail input tax credit benefits.

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Filing GST Returns

GSTR-1: Monthly or quarterly return for outward supplies.

GSTR-3B: Monthly summary return for sales and input tax credit.
GSTR-9: Annual return that summarizes all financial activity for the year.