There are four categories of GST in India:

  • IGST
  • SGST
  • CGST
  • UTGST

Integrated Goods and Services Tax (IGST): 

Implemented to promote smooth cross-state transactions and make sure fair distribution of revenues among participating jurisdictions, the IGST is applied when buying items that are made in another state. An act that would permit the central government to impose and collect taxes on the interstate supply of commodities, services, or both, as well as on matters related or incidental to that. (1) This law may be referred to as the 2017 Integrated Goods and Services Tax Act.
As an illustration, consider Sohan, a vendor who sells products from Uttar Pradesh to a customer in the state of Karnataka. In this instance, the buyer will be responsible for paying the goods and services transaction's IGST.

The SGST (State Goods and Services Tax)

  • When you buy or sell something in your state, your government collects an SGST tax, which is then utilized for schooling, local projects, and other initiatives that benefit the state's entire population. The revenues is kept locally to support state programs or local needs. SGST falls under the State Goods and Service Tax Act 2016.
     
  • Central Goods and Services Tax (CGST) :
    IGST occurs when purchasing goods that originate in another state with the goal to facilitate seamless cross-border transactions and ensure equal distribution of profits among participating jurisdictions. Central goods and services tax Act 2017 govern CGST
  • Union Territory Goods and Services Tax (UTGST):
    UTGST is applied only on sales occurring within Union Territories governed directly by the central government; thus enabling more consistent financial management and development across these regions.

Criteria GST Registration

• Businesses with an annual turnover exceeding ₹40 lakhs (₹20 lakhs for special category states) need to obtain a GSTIN.
• It is required in order to file GST returns, issue tax invoices, and receive ITC.
• It supports the smooth flow of commodities across states and guarantees adherence to GST regulations.

GST THRESHOLD

Activity

State Type

Limit

Sale of Goods

Normal Category State

Special category State

Exceeds 40 lakh

Exceeds 20 lakh

Providing Services

Normal Category State

Special category State

Exceeds 20 lakh

Exceeds 10 lakh

GST Rate Structure in India

GST Rates Slabs 2024

the main.

GST rate slabs are:

0% GST

5% GST

12% GST

18% GST

28% GST

0% GST

Essential consumption items include milk, fresh vegetables, and unbranded food grains.

5% GST

Mass-consumed commodities and necessities like tea, coffee, sugar, spices, and edible oil.

12% GST

processed foods, computers, and goods including fruit drinks, frozen veggies, and medications.

18% GST

Capital goods, industrial intermediaries, and everyday products like toothpaste, soap, and hair oil are examples of standard goods and services.

28% GST

Demerit products, luxury goods, and things like air conditioners, cement, and cars.

What does the GST No show Within its Self

                                                FROMAT OF GSTIN

                                                22AAAAA0000A1Z5

22

       AAAAA0000A

1

Z

5
  • The first two digits represent the state code.
  • The next ten digits are the PAN of the taxpayer.
  • The 13th digit is based on the number of registrations within a state.
  • The 14th digit is Z by default.
  • The 15th digit is a check code.

Steps to Get GST Number :-

To obtain a Goods and Services Tax (GST) number in India, you can follow these steps:
Step 1: Determine Eligibility

  • Businesses with an annual turnover exceeding ₹40 lakhs (₹20 lakhs for special category states) need to obtain a GSTIN.

Step 2: Documents

  • PAN card of the business or individual.
  • Proof of business registration (Certificate of Incorporation, Partnership Deed, etc.).
  • address proof of promoters/directors (Aadhaar card, Passport, etc.).
  • Address proof of the business place (Utility bill, rent agreement).

Step 3: Visit GST Portal

  1. Go to the official GST portal: www.gst.gov.in
  2. Click on "Services" in the menu bar.

Step 4: Start Registration Process

  1. Select "Registration" under Services.
  2. Click on “New Registration.”
  3. Fill in your details as prompted:
    • Choose "Taxpayer" as a type of applicant.
    • Fill in your state and district.

Step 5: Complete Part A of Application

You will be required to provide:

  • Your name,
  • Mobile number,
  • Email address, and then verify it via OTP sent to your mobile/email.

Step 6: Receive Application Reference Number (ARN)

After submitting Part A, you will receive an ARN on your email/mobile which can be used later to track application status.

Step 7: Complete Part B of Application

Log back into the portal using ARN:

  1. Fill out all necessary details about your business including bank account information.
  2. Upload all required documents as specified earlier.

Step 8: Verification by Authorities

After submission, tax authorities will review your application and may ask for additional information if needed.

Step 9: Receive GSTIN

Once approved, you will receive a unique Goods and Services Tax Identification Number (GSTIN). You’ll also get a confirmation on email along with a certificate that contains your GST number.