1. Overview of Goods and Services Tax (GST) in India
Introduced under the 101st Constitutional Amendment Act, GST replaced a web of indirect taxes (VAT, Service Tax, Excise Duty, Central Sales Tax). GST operates under a destination-based consumption tax model, taxing value addition at each stage of the supply chain.
2. Current GST Rate Slabs in India (2026)
| Tax Rate | Category / Goods & Services Covered |
|---|---|
| 0% (Nil Rated / Exempt) | Fresh vegetables, milk, unbranded food grains, healthcare, education services. |
| 5% | Apparel below ₹1,000, packaged food items, restaurant services, domestic air travel. |
| 12% | Apparel above ₹1,000, processed foods, computers, business class air travel. |
| 18% (Standard Rate) | IT services, consulting, telecom, financial services, consumer electronics. |
| 28% | Automobiles, luxury items, tobacco, aerated drinks, online gaming. |
3. Input Tax Credit (ITC) Eligibility & Rules
Input Tax Credit allows a GST-registered business to offset the GST paid on business purchases (Input Tax) against the GST collected on sales (Output Tax).
ITC Conditions under Section 16(2) of CGST Act:
- The buyer must possess a valid Tax Invoice or Debit Note issued by the supplier.
- The goods or services must have been received by the buyer.
- The supplier must have actually deposited the tax with the government.
- The supplier must have furnished the invoice details in GSTR-1 and reflected in buyer's GSTR-2B.
4. Mandatory GST Compliance Return Schedules
- GSTR-1: Statement of outward supplies (sales). Due monthly (by 11th) or quarterly under QRMP scheme.
- GSTR-3B: Self-declared summary return for tax liability payment. Due monthly (by 20th).
- GSTR-9 / 9C: Annual return & reconciliation statement due by December 31st following the end of the financial year.
5. E-Way Bill Regulations
An E-Way Bill is an electronic document generated on the e-Way bill portal for movement of consignment of goods exceeding ₹50,000 in value for inter-state or intra-state movement.
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