1. What is a GSTIN?

GSTIN (Goods and Services Tax Identification Number) is a unique 15-digit alphanumeric number allotted to every GST-registered taxpayer. The first 2 digits represent the state code, the next 10 are the PAN of the entity, followed by entity number, blank, and check digit.

2. Can I register for GST voluntarily if my turnover is below the threshold?

Yes, voluntary GST registration is allowed. It can be beneficial if your customers are primarily GST-registered businesses who need to claim ITC on purchases from you.

3. What is the Composition Scheme and who should opt for it?

The Composition Scheme is a simplified tax option for small taxpayers with annual aggregate turnover up to ₹1.5 Crore (₹75 Lakh for service providers), allowing them to pay a flat rate of tax without the requirement to maintain detailed invoice-level records or file monthly returns. However, they cannot claim ITC or make inter-state supplies.

4. Can a GST registration be cancelled?

Yes, GST registration can be cancelled voluntarily if the business is closed or no longer liable, or it may be cancelled suo-motu by the officer for non-compliance.

5. What is an e-invoice under GST?

E-invoicing is a system where B2B invoices are electronically authenticated by the GSTN Invoice Registration Portal (IRP) and assigned an IRN (Invoice Reference Number). It is currently mandatory for businesses with aggregate turnover above ₹5 Crore.

6. What is the difference between CGST, SGST, and IGST?

CGST and SGST are levied in equal proportions on intra-state (within the same state) supplies and are collected by the Centre and State respectively. IGST is levied on inter-state supplies (between two different states) and is collected entirely by the Centre, which then apportions the state's share.

7. What is Reverse Charge Mechanism (RCM) under GST?

Under RCM, the recipient of goods/services is liable to pay GST instead of the supplier. It applies in certain specified transactions — for example, purchases from unregistered dealers in specific categories or specified services like legal services from individual advocates.

8. How is GST different from the old VAT/Service Tax regime?

Under the old regime, multiple taxes like VAT, Central Excise, Service Tax, Octroi, and Entry Tax were levied at different stages, often cascading into each other. GST replaced all of these with a single, unified tax with a seamless ITC mechanism, eliminating the cascading effect and simplifying compliance.

9. What is an e-way bill and when is it required?

An e-way bill is an electronic document required for the movement of goods valued at ₹50,000 or more within India. It must be generated before the goods begin their journey and is verified at check posts by tax authorities.

10. Do freelancers and consultants need GST registration?

Yes, if their annual aggregate turnover from services exceeds ₹20 Lakhs (₹10 Lakhs in special category states), or if they provide services inter-state, they must register for GST regardless of turnover.

11. Can I have multiple GSTINs for one business?

Yes, if a business operates in multiple states, a separate GSTIN must be obtained for each state where it has a business presence. Additionally, different business verticals within the same state may optionally obtain separate GSTINs.

12. What happens if I file GST returns late?

Late filing attracts a late fee of ₹50 per day (₹25 CGST + ₹25 SGST) per return, or ₹20 per day for Nil returns, subject to maximum caps notified by the government. Interest at 18% per annum is also applicable on outstanding tax liability.