Mandatory for businesses with turnover above ₹40L (goods) / ₹20L (services). Composition scheme available up to ₹1.5 Cr. Registration via GST Portal within 30 days of liability.
GSTR-1: 11th of next month (monthly) / 13th (QRMP quarterly).
GSTR-3B: 20th / 22nd / 24th based on state.
GSTR-9: 31st December annually.
Claim ITC only on supplies used for business. ITC blocked on personal use, food, beauty, works contract for immovable property. Must reconcile with GSTR-2B every month.
Annual audit required if turnover exceeds ₹2 Cr (GSTR-9C). Scrutiny, audit, and best judgement assessment provisions under Sections 61, 65, 66, and 62 of CGST Act.
Late fee: ₹50/day (₹20/day for nil return), max ₹10,000. Interest @18% p.a. on delayed tax payment. Penalty up to 100% of tax for fraud / suppression of facts.
Section 128A waiver of interest/penalty for FY 2017-20 demands. IMS (Invoice Management System) launched Oct 2024. GSTR-1A introduced for amendments before 3B filing.
| Rate Slab | Category of Goods / Services |
|---|---|
| Nil / 0% | Fresh vegetables, milk, eggs, bread, salt, books, prasad, sanitary napkins, healthcare services, education services |
| 5% | Packed food grains, coffee, tea, edible oil, sugar, coal, domestic LPG, life-saving drugs, transport services (railways, economy air) |
| 12% | Frozen meat, butter, cheese, ghee, dry fruits, mobile phones, computers, business class air travel, hotels ₹1000–7500/night |
| 18% | Capital goods, industrial goods, most IT services, financial services, restaurants (AC), hotels above ₹7500/night, AC restaurant |
| 28% | Luxury goods, automobiles, tobacco, aerated drinks, cement, paints, casinos, online gaming (actionable claims) |