GST FAQs
Beginner to Advanced • Practical & Easy Explanations
Prepared as per latest available GST information
This GST FAQ section answers the most common questions asked by beginners, small business owners, traders, professionals and GST practitioners.
Questions are arranged from basic to advanced level to make GST easy to understand step by step.
Beginner Level GST FAQs
Q1. What is GST?
GST (Goods and Services Tax) is an indirect tax levied on the supply of goods
and services in India. It has replaced multiple indirect taxes such as VAT,
Service Tax, Excise Duty, etc.
Q2. Who should register under GST?
Any person whose aggregate turnover exceeds the prescribed threshold limit
or who falls under compulsory registration category must register under GST.
Q3. What are the types of GST?
CGST (Central GST), SGST (State GST), IGST (Integrated GST) and UTGST.
Q4. What is GSTIN?
GSTIN is a 15-digit unique identification number issued to every registered
GST taxpayer.
Q5. What is a GST invoice?
A GST invoice is a tax invoice issued by a registered supplier containing
details such as GSTIN, tax rate, taxable value and GST amount.
Intermediate Level GST FAQs
Q6. What is Input Tax Credit (ITC)?
ITC means credit of GST paid on purchases which can be used to pay GST on sales,
subject to conditions.
Q7. Can ITC be claimed without invoice?
No. ITC can be claimed only if a valid tax invoice or prescribed document is available.
Q8. What is GST return?
A GST return is a statement of sales, purchases, tax collected and tax paid
that must be filed periodically by registered taxpayers.
Q9. Is GST return mandatory even if there is no business?
Yes. Nil return must be filed if there is no business activity during the period.
Q10. What is the difference between intra-state and inter-state supply?
Intra-state supply attracts CGST + SGST, whereas inter-state supply attracts IGST.
Advanced Level GST FAQs
Q11. What is composition scheme?
Composition scheme is an optional scheme for small taxpayers to pay GST at
a fixed rate with reduced compliance.
Q12. Can a composition dealer claim ITC?
No. Composition dealers are not eligible to claim Input Tax Credit.
Q13. What is GSTR-9 and GSTR-9C?
GSTR-9 is the annual return. GSTR-9C is reconciliation statement and audit
certification applicable when turnover exceeds prescribed limits.
Q14. What happens if GST returns are not filed?
Late fee, interest, blocking of e-way bill, suspension or cancellation
of GST registration may occur.
Q15. Can GST registration be cancelled?
Yes. Registration can be cancelled voluntarily or by department due to
non-compliance.
Practical & Compliance FAQs
Q16. What is late fee under GST?
Late fee is charged for delayed filing of GST returns as prescribed under GST law.
Q17. What is interest under GST?
Interest is payable on delayed payment of GST at prescribed rates.
Q18. Can GST returns be revised?
No direct revision is allowed. Corrections are done through amendments
in subsequent returns.
Q19. Is GST audit mandatory?
GST audit applicability depends on turnover limits and notified rules.
Q20. How to stay updated with GST changes?
Follow official GST notifications, circulars and reliable GST update channels.