GST

Registration under the Goods and Services Tax (GST) system offers several benefits to businesses:• Official recognition as a supplier of goods or services.
• Accurate tracking of taxes paid on input goods or services, which can be used to offset GST liability on sales.
• Legal authority to charge GST from customers and transfer tax credits on purchased goods or services.
• Eligibility to access various incentives and advantages provided under GST regulations.

According to Section 2(6) of the CGST/SGST Act, “aggregate turnover” refers to the total value of:(i) All taxable transactions,
(ii) All non-taxable/exempt transactions,
(iii) Exports of goods and/or services, and
(iv) All inter-state transactions,
carried out by a person under the same PAN.

No, every individual or entity that is required to obtain GST registration must apply for a separate registration in each state where they have a business presence and are liable to pay GST. As per Sub-section (1) of Section 22 of the CGST/SGST Act, registration is mandatory for businesses operating in multiple states, ensuring compliance with tax regulations specific to each state

Yes, as per the proviso to Sub-section (2) of Section 25 of the CGST/SGST Act, a person operating multiple business verticals within a single state has the option to obtain separate GST registrations for each business vertical. However, this is subject to certain conditions and guidelines prescribed by the authorities. This provision allows businesses to maintain clear segregation of tax liabilities, ensuring better compliance and financial management for each distinct business segment.

A taxpayer registered under GST is eligible to claim Input Tax Credit (ITC) on the GST paid for the purchase of goods or services or both, provided these are used or intended to be used for business purposes. This credit can be utilized to offset the GST liability on outward supplies. However, availing ITC is subject to certain conditions and restrictions as prescribed under the GST law, ensuring that only legitimate business-related expenses qualify for tax credit benefits.

Yes, Input Tax Credit (ITC) is generally available for most goods and services under GST, except for a specific list of items mentioned in the law. The restricted items primarily include goods and services used for personal consumption, inputs that contribute to the construction of immovable property (excluding plant and machinery), telecommunication towers, and pipelines installed outside the factory premises. Additionally, any taxes paid due to non-compliance, fraud, or tax evasion detected by authorities are also ineligible for ITC claims. These restrictions ensure that ITC benefits are availed only for legitimate business-related expenses.

Refund of unutilized input tax credit is not allowed in
cases where the goods exported out of India are subjected
to export duty – as per the second proviso to Section 54(3)
of CGST/SGST Act.