GST (Goods and Services Tax)

 GST ( GOODS AND SERVICES TAX)

🧾 What is GST?

• GST (Goods & Services Tax) is a destination-based, multi-stage indirect tax implemented on 1 July 2017 via the Constitution’s 101st Amendment 

• Replaced multiple indirect taxes—VAT, excise duty, service tax, octroi, etc.—by consolidating them into a single nationwide regime.

• Slabs: 0%, 5%, 12%, 18%, 28%, with special 0.25% on rough stones and 3% on gold; compensation cess applies to items like luxury cars and aerated drinks .

💰 Structure & Components

• CGST: Central tax on intra-State transactions.

• SGST/UTGST: State or UT tax on intra-State supply.

• IGST: Central tax on inter-State supplies and imports (essentially CGST+SGST) Press Information Bureau+15India Briefing+15PwC Tax Summaries+15PwC Tax Summaries.

• Input Tax Credit (ITC) allows offsetting taxes paid on purchases against output tax liability, reducing cascading effects .

🏛️ Governance & Compliance

• GST Council (Union Finance Minister + State Finance Ministers) recommends rates, exemptions, and policies Goods and Services Tax Council+1PwC Tax Summaries+1.

• Businesses must register if their turnover exceeds prescribed limits (₹40 L for goods; ₹20 L/₹10 L in special-category states for services).

• Regular filings: GSTR-1 (sales), GSTR-3B (summary), and others.

  • New rule (effective July 1, 2025): Returns older than 3 years cannot be filed The Times of India+3India Briefing+3OmniCard+3.

• Compliance updates from April 2025: mandatory MFA, stricter e-way bills, lower e-invoicing thresholds, etc. 

📈 Revenue & Impact

• 2024–25 GST collections hit a record ₹22.08 lakh crore, marking a 9.4% increase and growth in active taxpayers (1.51 crore) TaxTMI+3Press Information Bureau+3TaxGuru+3.

• Chhattisgarh recorded a monthly GST collection of ₹4,135 crore in April 2025, becoming one of India’s top collectors Indiatimes.

• GST reform has improved ease of doing business, tax compliance, and economic integration Press Information Bureau.

📰 Latest Developments

1. GST Reform Ahead

   • PMO green‑lit a major revamp—the first since rollout—with possible elimination of the 12% slab and simplification of rate structure Navbharat Times+15Press Information Bureau+15The Economic Times+15The Times of India+3The Times of India+3The Economic Times+3.

   • Aiming to shift many goods from 12% to 5%, especially ahead of festive season The Times of India.

2. GST Amnesty Scheme Update

   • GSTN allows taxpayers to appeal orders issued in SPL-07 under the amnesty scheme, enabling challenges to decisions on reduced penalty/interest settlements Wikipedia+6Wikipedia+6The Economic Times+6ClearTax+1The Economic Times+1.

3. Returns Time‑barred

   • From July 2025, businesses can’t file late returns beyond three years, prompting concerns around redressal mechanisms The Times of India.

4. UPI‑GST Link Controversy

   • Several states (incl. Karnataka) demand UPI data to verify GST registration, triggering pushback from traders worried about unnecessary notices and digital payment decline Navbharat Times.

📚 Further Reading: Expert Articles (June 2025 issues)

From VAT experts and tax lawyers, covering nuanced GST topics:

• Corporate Guarantees & GST (Sameer Sharma; 19 June)

• Reverse Charge – Commercial Property Rent (Vikram Singh; 25 June)

• ITC Refunds on Business Closure (Navjot Singh; 16 June)

• Supply Intermediaries Rationalisation (Yash Parmar; 4 June)

• Federalism & GST Council (Ashwarya Sharma; 24 June)