GST: Most Frequently asked questions

Table of Contents

What is the Goods and Services Tax (GST)?

The Goods and Services Tax (GST) is a bill that was created to simplify the taxation of goods and services. It aspires to make the dream of one nation, one tax a reality. The complex Indian taxation policy is simplified by it.

Which tax is not included in GST?

Custom Duty tax is not included in Goods and Services Tax.


In which case GST registration is not compulsory?

A casual taxable person is one who does not have a fixed place of business in the state or union territory from which he wishes to make a supply. Casual taxable persons making supplies of specified handicraft goods, on the other hand, are exempt from compulsory registration and are entitled to Rs. 20 Lakh threshold exemption.

Is electricity exempt from GST?

Goods and Services tax on electrical energy is exempted under notification no. 02/2017 โ€“ Central Tax (Rate) dated 28.06.2017, regardless of whether it is thermal energy, solar energy, hydro-power, or any other form of electrical energy. By way of notification no., GST is also exempted on electricity transmission or distribution utilities.ย 

What is HSN code?

The acronym HSN stands for โ€œHarmonized System of Nomenclature.โ€ The HSN code is a 6-digit uniform code that categorises over 5000 products and is accepted globally. The World Customs Organization (WCO) created it, and it went into effect in 1988.

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How to calculate GST percentage?

The calculation can be explained by simple example : If a goods or services is sold at a price of Rs. 1,000 and the rate applicable is 28%, then the net price calculated will be = 1,000+ (1,000X(28/100)) = 1,000+280 = Rs. 1,280.

How to find the HSN code for GST?

HSN stands for Harmonised Commodity Description. The HNS is a multipurpose international product nomenclature developed by the World Customs Organisation.

How long can one wait to register in GST?

An unregistered person has 30 days to complete its registration formalities from its date of liability to obtain registration.

Is separate registration required for trading and manufacturing by the same entity in one state?

Only one registration is required per State for all activities. But, you have an option to be registered as a separate business vertical.

Is GST applicable for the person who is a vegetable commission agent?

The services provided by a commission agent for the sale or purchase of agricultural produce are exempt under GST therefore no registration is required to be obtained.

What is the difference between a Works Contract or Mixed Supply?

A works contract is one that involves the transfer of property in goods (whether as goods or in another form) in the execution of a contract for the building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration, or commissioning of any immovable property. Furthermore, a mixed supply is defined as two or more individual supplies of goods or services, or any combination thereof, made concurrently by a taxable person for a single price that does not constitute a composite supply. Illustration. A mixed supply is a supply of a package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated drinks, and fruit juices that are sold for a single price. Each of these items is available.

People only deal in exempted products having their own brand, Do they require registration?

If a person only deals in exempted supplies and no taxable supplies then no registration is required to be obtained.

Who bears the burden of GST?

The final consumer bears the tax burden. It is an indirect tax levied on the supply of goods and services.

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