GST — Goods and Services Tax, 2017
Complete guide to India's GST — rates, registration thresholds, input tax credit, composition scheme, e-invoicing, HSN codes, return filing, and compliance for businesses.
🏛️ Background
The Goods and Services Tax (GST) was introduced on 1 July 2017 through the 101st Constitutional Amendment Act, 2016. It replaced multiple indirect taxes — excise duty, service tax, VAT, CST, entry tax, and more — with a single unified tax. The GST Council (chaired by the Union Finance Minister) decides rates and policy. GST is governed by the CGST Act, SGST Acts, IGST Act, and UTGST Act.
📊 GST Rate Structure
Essential items — milk, fresh fruits & vegetables, cereals, bread, salt, natural honey, books
Packaged food items, footwear (<₹1000), economy rail/air travel, small restaurants
Processed food, business class air, state-run lotteries, frozen meat, butter
Most items — electronics, capital goods, IT services, financial services, restaurant (AC)
Luxury items — automobiles, cement, aerated drinks, tobacco, 5-star hotels
📋 Registration Thresholds
| Category | Regular States | Special Category States |
|---|---|---|
| Goods Suppliers | ₹40 lakh | ₹20 lakh |
| Service Providers | ₹20 lakh | ₹10 lakh |
| Composition Scheme (Goods) | Up to ₹1.5 crore turnover — flat 1% tax | Up to ₹75 lakh |
| Composition (Services) | Up to ₹50 lakh — 6% tax | Up to ₹50 lakh |
Mandatory registration regardless of turnover: interstate suppliers, e-commerce operators, casual taxable persons, NRIs, TDS/TCS deductors, agents of suppliers.
📅 GST Return Filing Calendar
⚡ Input Tax Credit (ITC) — Key Rules
- ✅ ITC available only if supplier has filed their GSTR-1 and it reflects in your GSTR-2B
- ✅ Payment to supplier must be made within 180 days of invoice date
- ❌ Blocked credits (Sec 17(5)): motor vehicles (exceptions for certain businesses), food & beverages, beauty treatment, health insurance (unless mandatory), membership of clubs, gifts >₹50,000/person/year
- ⚠️ ITC claim deadline: 30th November of following FY or date of filing annual return, whichever is earlier
📱 E-Invoicing Requirements
E-invoicing is mandatory for businesses with aggregate turnover exceeding ₹5 crore (as of 1 August 2023). Invoices must be registered on the Invoice Registration Portal (IRP) to get an Invoice Reference Number (IRN) and QR code.
Penalty: E-invoice not generated → ₹25,000 per invoice or 100% of tax due, whichever is higher.
⚠️ Disclaimer
This page is for educational and informational purposes only and does not constitute legal, tax, or financial advice. While we strive for 100% accuracy, laws and regulations change frequently. Always refer to the official gazette notifications, consult a qualified Chartered Accountant (CA), Company Secretary (CS), or legal professional before making any financial or legal decisions. Tenhash is not responsible for any actions taken based on this information. Last reviewed: March 2026.