GST Rates and Registration

Questions and Answers

18%

28%

5% (correct)

12%

₹30 lakhs

₹20 lakhs

₹40 lakhs (correct)

₹50 lakhs

GST amount = (GST rate + taxable value) / 100

GST amount = (GST rate x taxable value) / 100 (correct)

GST amount = GST rate / taxable value

GST amount = GST rate x taxable value

Both A and B Signup and view all the answers

All of the above Signup and view all the answers

Obtain a Provisional ID and password Signup and view all the answers

All of the above Signup and view all the answers

Form RFD-01 Signup and view all the answers

Study Notes

GST rates vary depending on the type of goods and services
There are four GST rate slabs:
- 5% (essential goods and services)
- 12% (standard rate)
- 18% (high-end goods and services)
- 28% (luxury goods and services)
Some goods and services are exempt from GST

Mandatory for businesses with an annual turnover of ₹40 lakhs (effective from April 1, 2019)
Voluntary registration for businesses with an annual turnover below ₹40 lakhs
Registration process:
1. Obtain a Provisional ID and password
2. Fill and submit the registration application (Form GST REG-01)
3. Verify email and mobile OTP
4. Upload required documents
5. Approval and registration certificate issuance

GST calculation involves:
- Determining the HSN (Harmonized System of Nomenclature) code for the goods or services
- Applying the applicable GST rate
- Calculating the GST amount (GST rate x taxable value)
GST calculation formula: GST amount = (GST rate x taxable value) / 100
Example:
- Taxable value = ₹10,000
- GST rate = 18%
- GST amount = (18 x 10,000) / 100 = ₹1,800

GST compliance involves:
- Filing of GST returns (GSTR-1, GSTR-2, and GSTR-3)
- Payment of GST liability
- Maintenance of proper records and accounts
- Conducting regular audits and reviews
Penalties for non-compliance:
- Late filing fee
- Interest on late payment
- Penalty for incorrect or incomplete returns

GST refund is available for:
- Excess GST paid
- Input tax credit (ITC) not utilized
- Export of goods or services
- Refund of GST paid on zero-rated supplies
Refund process:
1. File the refund application (Form RFD-01)
2. Upload the required documents
3. Acknowledge and verify the refund application
4. Refund amount disbursement

GST rates vary depending on the type of goods and services
Four GST rate slabs: 5% (essential goods and services), 12% (standard rate), 18% (high-end goods and services), and 28% (luxury goods and services)
Some goods and services are exempt from GST

Mandatory registration for businesses with an annual turnover of ₹40 lakhs (effective from April 1, 2019)
Voluntary registration for businesses with an annual turnover below ₹40 lakhs
Registration process involves: obtaining a Provisional ID and password, filling and submitting the registration application, verifying email and mobile OTP, uploading required documents, and receiving approval and registration certificate

GST calculation involves determining the HSN code for the goods or services, applying the applicable GST rate, and calculating the GST amount
GST amount formula: (GST rate x taxable value) / 100
Example: taxable value = ₹10,000, GST rate = 18%, GST amount = (18 x 10,000) / 100 = ₹1,800

GST compliance involves filing GST returns (GSTR-1, GSTR-2, and GSTR-3), paying GST liability, maintaining proper records and accounts, and conducting regular audits and reviews
Penalties for non-compliance: late filing fee, interest on late payment, and penalty for incorrect or incomplete returns

GST refund available for excess GST paid, input tax credit (ITC) not utilized, export of goods or services, and refund of GST paid on zero-rated supplies
Refund process involves filing the refund application, uploading required documents, acknowledging and verifying the refund application, and receiving the refund amount