GST Bill India (GST Explained)

What Is GST Bill? GST India Explained Here… (In Hindi/English)

India’s biggest tax reform, the Goods & Services Tax Bill or GST Bill India 2017 is aimed to simplify the existing system of taxation. It will transform the nation into a unified market. All the indirect taxes will be replaced with one tax. In this GST guide, we will learn about GST in Hindi and English in the form of GST FAQ. We will get a detailed GST overview in Hindi and English.

GST Meaning

Goods & Services Tax (GST) is a tax charged when a customer purchases a service or product. The GST bill India is aimed to bring all the tax regimes and indirect taxes under a single umbrella. The GST bill will eliminate all the cascading effects of indirect taxes on distribution and manufacturing costs on services or products.  For your information, the GST bill passed on August 3, 2016 by the Rajya Sabha and amended one passed on August 8, 1996 by Lok Sabha.

What Are GST Slabs? (In Hindi/English)

GST – Rate of Tax on Goods – Download here

GST – Service Tax Exemption – Download Here

What Are The Benefits Of GST In India? Is GST Good Or Bad? (In Hindi/English)

As Rajya Sabha has passed the constitutional amendment in the form of GST bill, the reform is all set to raise GDP of the country. Have a look at the Benefits of GST in India –

  • GST will replace up to 17 indirect taxes charged on goods and services. Hence, compliance costs will decline and life will get easier.
  • A big boost of revenue is about to come. Tax evasion is all set to drop. Input tax credit will make the suppliers to pay taxes on time. Both central and state governments will have double oversight. So, the number of tax-exempt items will fall.
  • Cost of logistics and inventory will decline. At state borders, security checks slow down the movement of trucks. Hence, they travel only 280 km a day in India, as compared to trucks that travel up to 800 km in the US.
  • Significant boost in investment. Input tax credit is currently not available for several capital goods. Under GST, full tax credit means up to 12 to 14 percent decline in the costs of goods. Hence, a 6% rise in investment is expected on capital goods.
  • Making in India will get more competitive with GST covering inter-state tax, cascading of tax, fragmented market and high logistics cost.
  • Underdeveloped states will get a lift. Production is limited to a state with 2% inter-state tax. With GST, it can create more opportunities in the national market.
  • Manufacturing could get cheaper with lower tax costs and logistics.
  • State regulations and restrictions have affected ecommerce badly. Some online sellers don’t even ship to some states. With GST, all such problems will be sorted out.

What Is GST Tax? (In Hindi & English)

Goods & Services Tax (GST) is an indirect tax charged across India to replace other taxes charged by the state and central government. It was issued as the Constitution (122nd Amendment) Act 2016, after the Constitution 122nd Amendment Bill. It is governed by the GST Council and its chairman Arun Jaitley, Union Finance Minister of India.

Goods & Services Tax is an initiative in the reform of indirect taxation. Amalgamation of various State and Central taxes in one tax would mitigate double taxation or crusading, and defoliating a national market. GST tax is scheduled to be effective from July 1, 2017.

What Is GST Tax Credit? (In Hindi & English)

Input Tax Credit under GST or GST tax credit is one of the important features to avoid the cascading effects of taxes. When you purchase raw materials to manufacture and sell your products, you need to pay tax on the input (raw materials). When it comes to pay tax on output (finished goods), you can save on tax since you have already paid the tax and pay only the rest of tax liability.

How To Register For GST Bill? (In Hindi & English)

Every business with taxable amount of services or products and whose turnover is up to Rs. 10 lakh to Rs. 20 Lakh will be required to register as a taxable individual. This process is known as GST registration.

Why GST Registration?

GST registration online is very important as it will help you enjoy different benefits under GST regime. One of these benefits is enjoying endless input tax credit. Several taxes are being covered under it and the adverse effects of taxes will no longer be the issue. Timely registration is helpful to avoid all types of interface with authorities.

What is GST IN?

Around 8 million taxpayers are expected to be migrated from several options into GST. All such businesses will be registered and get a unique GST Identification number or GST registration number.

When it is Applicable?

GST tax is applicable when turnover exceeds Rs. 20 Lakhs (or Rs. 10 Lakhs for Northeast businesses).

GST Migration

All the existing assessees of Central Excise & Service Tax and VAT dealers are scheduled to be migrated to GST. For GST enrollment, assessees would get an ID and password from State Commercial Tax Departments/CBEC. Provisional IDs will be provided to those assessees who have a PAN associated with registration. A provisional ID wouldn’t be provided to an assessee in these cases –
  • The PAN is registered with Provisional ID and State Tax authority and supplied by the concerned State Tax authority.
  • The PAN is not valid associated with the registration.
  • There are several CE/ST registrations on the same PAN. In that case, only one ID will be issued for first registration in alphabetical order issued when any of the two conditions above are not met.
The assessees should use this ID and password to login to GST registration portal ( where they can fill the Form 20 and submit with important supporting paperwork.

What If You Not Register under GST?

Any offender making short payments or not paying tax will be required to pay 10% of penalty from the tax amount due, i.e. subject to at least Rs. 10000. Penalty will be up to 100% of the tax amount due when he evades the tax.

Multiple Registrations

If you operate multiple businesses in a state, you may get a separate GST registration for each of your businesses. To apply for GST registration, PAN is mandatory (except for an NRI who can register for GST with other documents). Registration which is refused under SGST Act/CGST Act shall also be rejected for CGST/SGST Act.

How To File GST Return? GST Return FAQ (In Hindi & English)

Every individual is required to submit the details of purchases, sales, and tax collected and paid periodically who is registered under GST Act, by filing GST return. Before GST filing, any payment of tax return is required, or these returns will be invalid.  

Steps of GST Return Filing

You can file GST return in various forms, according to the nature of transaction. Here are the types of return forms applicable for the tax payers as well as their due dates –
  • Form GSTR-1 – It contains monthly information of outward supplies by the 10th of every month.
  • Form GSTR-2 – It contains monthly inward supplies by the 15th of every month.
  • Form GSTR-3 – Return is filed every month by the 20th of every month.
  • Form GSTR-9 – Annual GST return filing is done by December 31 of every financial year.

GST Return Filing Process –

  1. GSTR1 is filed for sales made by 10th of next month.
  2. GSTR2A contains sales made by you that can be viewed by the buyer.
  3. When buyer approves the sales, he files GSTR2
  4. In case buyer does some modifications on the sales mentioned by you, it can be visible in GSTR-1A and he can approve or disapprove.
  5. When sales are approved by both buyer and seller, GSTR3 will be generated with tax payments by 20th of next month.

Types of GST Returns

There are different types of GST returns. GSTR 1, 2, 3, 4, and 9 are the most widely-used returns. Businesses will submit GSTR 1, 2, and 3 every month, GSTR 4 on quarterly and GSTR 9 on annual basis.
Return/Form Details Frequency Due Date
GSTR-1 Sales made Monthly 10th of every month
GSTR-2 Purchases made Monthly 15th of every month
GSTR-3 Payment of tax and monthly GST return Monthly 20th of every month
GSTR-4 Quarterly GST return Quarterly 18th of next quarter
GSTR-5 Regular return from NRI taxpayer Monthly 20th of every month
GSTR-6 Input Service Distributor return Monthly 15th of every month
GSTR-7 GST for TDS Monthly 10th of every month
GSTR-8 For Ecommerce suppliers Monthly 10th of every month
GSTR-9 Annual return Annually December 31st of every financial year

Who should file GST Return?

Every individual who is registered under GST should file GST return. If no sales or purchase has been done during the period, it is required to file a nil return.  

When You Should File Return?

According to the type of transaction and registration, there are different periods set by the GST council. Foreign Non Residents, Regular, Casual, and ISD tax payers should file returns on monthly and yearly basis, while compounding tax payers should file on quarterly basis.  

What If GST Return is Not Filed on Time?

If you don’t file the return within due date, you will be penalized with Rs. 100 per day as late fee up to Rs. 5000 max.  

Should You Fill Different Return Forms for CGST, IGST, SGST?

Return forms are same for all.  

Can I Pay Taxes after Filing Return?

Before filing return, you cannot pay the taxes due for the period, or the return shall be considered invalid.  

Is it Possible to Revise GST Return?


What is GSTR1 Return?

GSTR-1 return will consist of details of the upward sales or supplies by the tax payer. It will have the following details –
  • Details of bills issued in last month as well as the corresponding taxes which are paid.
  • Basic details, such as period during which return is being filed and business name with GSTIN etc.
  • Advances received for the supply that is due in future
  • Details of revision related to outward sales related to the last tax periods.

What is GSTR-2 Return?

It will have details regarding the purchases made by the tax payer. It is prefilled as per the GSTR1 filed by the supplier for the taxpayer. A seller just has to validate the information provided previously to make notifications, when needed. For instance, if you have bought goods from a company, then it would have filed GSTR-1 and added your name as buyer. You will get the same information reflected in GSTR-2 to validate the purchase by you. GSTR-2 will consist of the following details –
  • Purchases which are automatically updated by the department
  • Invoices on which credit has been provided before should be submitted in another table.

What is GSTR-3 Return?

GSTR 3 is supposed to be the combined variant of GSTR 1 and GSTR 2. Like in GSTR 2, GSTR3 is filled on GSTR 1 and GSTR 3 for a taxpayer. All you need to validate this information and make changes, when needed. It will have the below details –
  • ITC ledger, liability ledger, and cash ledger
  • Option to claim refund if excess payment is done
  • Payment of tax under several tax heads of SGST, CGST, and IGST

What is GSTR-4 (Quarterly Return)?

Small taxpayer can get the composition scheme. In that case, he would have to pay taxes on fixed rate. Even though no facility of input tax credit is available, a taxpayer looking for composition scheme may have to file a simplified return, i.e. GSTR-4. It includes the following details –
  • Payment of tax in return
  • Total cost of supplies during the return
  • Invoice-level information of purchases

What is GSTR-9?

It is mandatory for all the taxpayers to submit GST return every year. This form gives complete insight of the activities done by the taxpayer –
  • It is a detailed return and will have information of the expenditure and income of the taxpayer and it will be regrouped according to the monthly returns
  • It provides taxpayers with the option to correct any short reporting of activities done on supply.
  • December 31 is the due date for the return, after the end of financial year when it is filed. It should be filed with the audited Annual Account copies.

What Is GST Credit? (In Hindi & English)

There are many definitions of GST reforms. But there is one thing which is totally different about this new type of tax – how input GST credit works? You shouldn’t worry if you have never come across ‘input credit’ ever. Here, we will start from the very beginning. For the businesses, you will soon understand how it is different from VAT if you have already heard of input credit under VAT.  

What is Input Credit?

At the time of paying tax, input tax credit works. You can save the tax that you have paid on inputs already. Suppose you are a manufacturer and you pay tax on output (FINISHED PRODUCT) is Rs. 450. And pay tax on input (buying raw materials) of Rs. 300. You can claim Rs. 300 as input credit. It means you just have to pay Rs. 150 of taxes.  

GST Credit

Input credit system is now available when you get covered under GST act. If you are a supplier, manufacturer, online retailer, agent, operator or any other person registered under GST, you can claim Input Credit for the tax paid on your purchases.  

How to Claim GST Input Credit?

To claim GST input credit, a debit note or tax purchase invoice is important from registered dealer. In case goods are received in installments or lots, credit will be issued for the tax invoice on receipt of last installment or lot. You must have received the services or goods. In case recipient doesn’t pay the value of tax or goods thereon within 3 months of invoice issued and availed input credit based on billing, the credit will be included in his tax liability with interest.
  • Supplier should file GST returns
  • Tax on your input has been paid/deposited to the government via claiming input credit or by the supplier in cash.
Input credit is allowed only when the supplier has deposited cash. It is the most important GST reform. Each input credit should be validated and matched before claim. To help you claim input credit, it is important for all the suppliers to comply with GST as well. You should know something more about input tax credit. You may have not claimed input tax credit. Since tax is higher on purchases than sale, you can claim a refund or carry forward. If tax on inputs is higher than on output, you can carry input tax forward or claim refund. If tax on output is higher than on inputs, you can pay the balance. The government won’t pay any interest on input tax balance.
  • You cannot take input tax credit on purchase bills which exceed one year from the date of tax invoice.
  • GST is charged on both services and goods. So, one can avail input tax credit on both services and goods (except the ones which are on negative/exempted list).
  • Input tax is not allowed for services and goods for private purpose.
  • It is issued on capital goods.
  • No tax credit shall be issued after filing the GST return for September after the closing.

Types of GST Taxes

GST will replace all the existing taxes like CST, VAT, Service Tax, Excise Duty, and Entertainment Tax. There are three types of GST taxes –
  • State GST (SGST)
  • Centre GST (CGST)
  • Integrated GST (IGST)

How GST Input Credit Works?

Suppose Mr. A is a seller and Mr. B is a buyer. Here, the buyer can claim input credit on purchases as per the invoices. Here’s how –
  • A (seller) uploads the details of all invoices in GSTR 1.
  • Details regarding sales will get reflected or auto populate in GSTR 2A and the same data will be pulled when GSTR 2 is filed by Mr. B.
  • Then Mr. B will accept all the details of purchase made and reported correctly by the seller and tax will be credited on purchases to “Electronic Credit Ledger” of the buyer so he can adjust the same over output tax liability and claim refund.

What Is GST Migration? (In Hindi & English)

Goods & Services Tax (GST) is also a historic reform which is yet to be applied on all goods and services. On September 8, 2016, President Pranab Mukherjee gave his approval and government is putting all their efforts to start GST by July 1, 2017. The current tax payers will need to be registered under the GST soon. The approval of parliament to GST will play a vital role to improve GDP. Here, we will discuss the process for enrolment, GST migration process, and important things to know about GST Migration.   Eligibility Criteria Current taxpayers are highly responsible to register under GST portal. Current taxpayer is actually an entity who is registered with each of the authorities –
  • Service Tax
  • Central Excise
  • Entry Tax
  • State Sales Tax (VAT)
  • Luxury Tax
  • Entertainment Tax
Some other enrolments include validating data of existing taxpayers and filing the rest of key fields.   Enrolment Process under GST Portal The complete process of enrollment will be free of papers. It means the department will not require any hard copies. In addition, all the registered tax payers should visit the GST system portal.  Every person should register under GST if their annual turnover is higher than Rs. 20 Lakh which is the exemption limit.   Collecting Provisional ID Before visiting GST system portal as the migration procedure, a provisional ID and password will be provided to you with the state authorities. Before visiting GST portal to start migration process, a provisional ID is required along with a password given by your related state authorities. If you don’t have provisional ID, you can easily contact the ward officer.   Online Registration If you have provisional ID and password, you can easily finish the migration process if with these details –
  • Valid email ID
  • Valid phone number
  • IFSC code
  • Bank account number
  Documents Needed for GST Registration and Migration You are required to submit the following documents for migration –
  • Proof of business constitution
    • If you have partnership deed – partnership agreement
    • If you have LLP – Partnership Deed and Certification of Incorporation
    • For Company – Certification of Incorporation
  • Passport photo of Partners or Promoters
  • Authorized signatory’s proof of appointment
  • Authorized signatory’s photograph
  • Statement or opening page of passbook with these details –
    • Account number
    • Address of account holder
    • Branch address
    • Transaction details
  Acknowledgement Number After submission of the form on GST portal with all the documents and information, it generates an acknowledgement number. It should be saved for all the correspondences in future.   Current Status
  • In each state, the Commercial Taxes Department fixed a due date for migration and started PAN data validation of the dealers and shared the provisional ID and password.
  • In some states, traders who have been enrolled with the portal have been provided with a GSTN number.
  • The Commercial Taxes Department will soon enable Aadhar based e-signature to sign the documents digitally on GST portal
  • After launching GST portal, the Department has established special camps at several locations for migration and registration.

How To Register/Update Digital Signature On GST Online Portal? (In Hindi & English)

Digital Signature Certificate or DSC is used to build your identity for filing documents online. It is a digital alternative to a hand written signature. It is mandatory to sign the enrolment application electronically through digital signature for enrolment by Foreign Companies, Domestic Companies, Foreign Limited Liability Partnerships (FLLPs) and Limited Liability Partnerships (LLPs). Other taxpayers may or may not sign electronically through digital signature.


Who Can Sign Using Digital Signature/EVC/e-sign?

  • Proprietorship – Proprietor
  • Partnership firm – managing partner
  • Trust – Managing trustee
  • HUF – Karta
  • LLP/Company – Authorized Signatories who are duly authorized by LLP/Board of Company
  • Local Authority – Authorized signatories
  • Government Department – Authorized signatories
  • Statutory Body – Authorized Signatories
  • Club or Society – Authorized Signatories, authorized by management committee


How to Obtain Digital Signature Certificate?

You can obtain Digital Signature Certificate (DSC) directly from any CAs (Certifying Authorities) in India. Fill the required application form, submit your supporting documents and pay a specified fee. The certifying authorities are licensed to issue a DSC under Section 24 of Indian IT-Act 2000. You can apply for Class 2 or Class 3 Digital Signature Certificates from any of the CAs –

  • National Informatics Center (NIC)
  • Tata Consultancy Services (TCS)
  • SafeScrypt CA Services
  • IDRBT Certifying Authority
  • E-Mudra
  • Code Solutions CA


What is Msigner? Why to Download It?

Msigner is a utility that enables you to download Digital Signature Certificate from the GST portal. You have to right click on “Download” icon and choose “Run as Administrator” to get GST digital signature certificate. Please keep in mind only Class 2 or 3 DSC can be registered at GST Common site.


How to Register Digital Signature Certificate on GST Common Portal?

To register your Digital Signature Certificate with GST Common portal, follow these steps –

  • Access the official GST common URL ( It will display the GST home page.
  • Click the current USER LOGIN button
  • It will display the login page. Type the username created by you in the username field.
  • Type the password in the password field.
  • In Type, the characters seen in the field, type captcha text as displayed on screen.
  • Click Login Button
  • It will display the Welcome page. Click on “Continue” button.
  • You will launch the Dashboard. Click “Dashboard” – Register/Update DSC
  • You will access the Register Digital Signature Certificate page. Select PAN of authorized signatory in the dropdown list of Authorized Signatory to register.
  • Click the checkbox – “I have downloaded and installed the signer”
  • Click on “PROCEED” button
  • Choose the certificate and click “Sign” button
  • It will show the message “Your DSC has been registered successfully”.


Error in GST DSC Registration

To resolve the error like “Failed to Connect to the Server. Kindly Restart the Emsigner” or “Click here to troubleshoot”, you need to change your browser settings –

To Change Google Chrome settings, add this URL to the Exception Cookies list and use Digital Certificate.

  • First of all, click on “Settings” menu on the right sidebar of the Chrome browser or if you open Google Chrome, use this link “chrome://settings/” and click Enter.
  • Click “Show Advanced Settings”
  • Click “Content Settings” under Privacy head.
  • Click “Manage Exception” under Cookies. You can easily reach the page with this link “chrome://settings/contentExceptions#cookies”. Copy and paste it in your address bar and enter.
  • Enter this URL – at HostName Pattern. Choose Allow and Done.
  • Restart the browser
  • Right click “Emsigner” and click “Run as Administrator”.
  • Click “Yes” on the GST portal and you would be able to fix the problem.


To change settings on Mozilla Firefox

Add this URL in Exception Cookies list and use digital signature.

  • First of all, click on Options > Security > Exceptions
  • Enter the URL , click on “Allow” > Save Changes
  • Restart the Firefox
  • Right click on EmSigner and click “Run as Administrator”
  • Click “Yes” to logon to GST portal again.


When you get an error “Unable to Connect to the Emsigner Installed”

In some websites, some people told that they are unable to finish the GST verification process. This time, here is the rectification for the error and how to finish the process –

  • First, open Internet Explorer and visit
  • Login with user id and password
  • Find the verification button after login on the top right side. Click on the same and proceed.
  • Once clicking on Accept and Proceed, you will find the sign option if you don’t have errors.
  • The error may be “Cannot connect to the Emsigner”
  • Close other applications running on ports 1645, 8080, 1812, 2083, etc. and restart your system. If you get the error “Port Binding Failed and may not be assigned to a particular websocket”.

When you get this type of error, follow these steps –

  • Open command prompt as Administrator by clicking “Start > Search Box “Enter “CMD” and right click on “CMD.exe” and choose “Run as Administrator”
  • Enter the text “netstat –abno” and hit enter
  • Under Local Address, find your port
  • See the process name
  • Look for the port number shown in the error and look for it in command window. Once you find the same port, check the application using the port.
  • Once you get the name of application, stop it and proceed with GST verification


How to Update GST Digital Signature?

To update your digital signature certification, follow these steps –

  • Access and it will show GST homepage
  • Click “Existing USER LOGIN” button
  • It will display the login page. Type username in the Username field.
  • Type password in the password field
  • Type characters seen in the image
  • Click Login button
  • It will display the Welcome page. Click Continue to proceed.
  • It will take you to Dashboard. Go to Dashboard, then Register/Update DSC option.
  • It will display the Register DSC page. In the dropdown list of PAN of Authorized Signatory, choose the PAN of authorized signatory to update.
  • Click on Update button.
  • Choose the certificate and click Sign button.
  • It will display the message “DSC has been updated successfully.”

GST Vs. VAT (In Hindi & English)

Both Goods & Services Tax (GST) and Value Added Tax (VAT) are indirect taxes charged on the value added to the product. These are indirect taxes because they are charged on services or commodities before they are sold to the customer but customers ultimately pay as part of market price before it is paid to the government.

When GST has been introduced, it will cover the whole indirect taxation system of the country as a line of taxes will be covered under the tax law. Before the arrival of GST, the indirect taxation which is used widely includes Excise Duty, VAT, and Service Tax. VAT is considered to be a tax added every time at the time of manufacturing.


Value Added Tax (VAT)

VAT is a destination based multi-point taxation system. Tax is charged on the value added in each state of transaction in the distribution or production chain. VAT is a tax levied on the final consumption of services or goods and is ultimately paid by the end user.  This multi-stage tax charged with the provision of ‘Input Tax Credit (ITC)’ on tax initially against the VAT liability on the sale. Related to any period, this input tax credit sets off the amount of tax by registered dealer against the amount of output tax.

It is given for all the traders and manufacturers for buying supplies/inputs for sale, despite when they will be sold or utilized. The VAT liability of the manufacturer or dealer can be estimated with the deduction of input tax credit from the tax collection on the sales during the period of payment, i.e. a month.

Basically, VAT is charged by State government through Taxation Departments. They levy and collect VAT in all states. On the other side, Central Government is a facilitator to ensure proper implementation of VAT. The Ministry of Finance levies and implements VAT at the State and Centre level. 


Goods and Services Tax (GST)

GST is implemented to replace the combination of duties, taxes and excise duty on luxury items, entertainment, daily use products, entertainment, and services.


GST Imposed in Each Supply Chain – For example, a 6% tax is imposed on raw materials, again on the manufacturer who uses the materials, and successively on the retailer, distributor, and consumer. Though it seems to be the heavy burden of tax, as each payer is credited for it, the burden is actually lower. 


Here is the breakdown of concept of GST –

  • Equity – Countries like Greece and Spain used to impose various types of taxes often caused the problem. Many riches done tax fraud and the load are ultimately on the urban poor. Hence, it is better if everyone pays a small percentage of tax.
  • Efficiency – It is the best alternative to tiresome and time-consuming imposition of various taxes with one tax and it lowers the overhead for producers, government, and consumers.
  • Accountability – Different countries have high taxes. For example, while owning specific entities like swimming pools or real estate, these taxes often go without collection due to the confusion of various avenues of collection and taxes. Since it is important to keep a record of payment at every transaction in a sequence from origin to the buyer, the GST is very easy to collect and control.



How They Work?

For the beginners, the state VAT or VAT was imposed only on the items sold in the specific state. Interstate transactions were not imposed with VAT.

On the flip side, GST is charged on both services and goods supplied and it will be imposed on the transactions in the state (intrastate) as well as interstate.


Interstate/Intrastate Transactions

If a seller sells a product to the buyer in another state, this interstate transaction will not be the subject to state VAT. Instead, a CST (Central Sales Tax) will be charged by the Centre and other local taxes charged by the state.

A trader who offers goods across various states in the country should follow the individual rules and regulations of each state. To comply with other complex procedures of interstate taxation, trucks having cargo should stop at all the check posts of state border. But there are two problems –

  • These check posts take around 40% of transit time and deliveries become far slower than they must be.
  • The middlemen are involved in this system. It is used by defaulters as it gets into wrong hands and corrupt enforcers accumulate illegal money.

To avoid all such issues, traders have to add additional layers in supply chain to reduce the time on check posts and interstate transaction is replaced into intrastate transaction which attracts just local VAT.

By implementing the GST system after July 1, 2018, the interstate transactions will attract only Integrated GST or IGST. The revenue earned will be divided between the state and centre. The GST won’t distinguish between supply to itself and supply to third party. The IGST will be applied to any transaction occurred across state borders, be it supply of goods or sale. It will avoid the needs of check posts and it will bring faster delivery of items.


Revenue Distribution

Despite the fact that both VAT and GST rates differ in India according to the nature of items, the VAT rates are not the same across the country. Every state has its own regulations to rule VAT. It is not so with GST. The central government rules will be applied and it will be the same across the country. 

When it comes to taxes, the revenue earned by the state and central government comes into our minds. With VAT system, all the revenue earned goes to the state and centre depends on other taxes like service tax, Central State Tax (CST) etc.

As a result, it led to uneven revenue distribution along with unequal governance on its sources. It will change under this new tax regime. The council will split the GST into CGST and SGST. Both state and the centre will equally access the revenue.


Rate Slab

Here, we will get an insight to the rates for items under GST and VAT, starting from the valuables like silver, gold, etc. Under the existing system, they have up to 1 to 2 percent of VAT. But these metals will be charged at 2 to 4 percent of GST in these metals. A large number of mass consumption items like prescription, coffee, drugs etc. which are associated with 4% to 5% of VAT will be taxed under the GST with 5%.

But under both GST and VAT systems, basic items like most of the unprocessed items which fall under Consumer Price Index and food are zero rated. Despite the state, the items will be associated under a specific rate with GST. It can either be 18% (i.e. on toiletries) and 12% (i.e. on electronics).



All in all, GST is more structured than VAT system which solves all the problems faced by the businesses that follow the VAT system these days. On an international scale, there is a very thin line between VAT and GST.

They are virtually the same and used equally in some countries. But these represent two different systems in India due to the ways they are charged. Despite the fact that GST is going to replace VAT in India, it is an important step to prepare our country for a more data-driven and transparent taxation system.

What Is GST Helpline Number?

You can now share your feedback and suggestion on GST Help Desk. If you have any query, you may call GST toll free number 1800 103 9271 and get 24×7 Support.

GST Helpline is accessible all over India in different languages, such as Hindi, English, Gujarati, Marathi, Bengali, Kannada, Malayalam etc. The GST helpline is controlled by KDK software and they have got a positive response during the trial period. Mostly queries on 1800 are made by Chartered Accountants.

For solving doubts, offering support, and complaint registration, GST has another toll-free number 0124 4688999.

In case of trouble or for sharing complaint, feedback, and suggestion in return to the council, you can do it through GST customer care helpline email – You will get response within 1 to 2 days.

You may also contact through Mitra Contact number of “Central Board of Excise Duty” and Email ID.

CBEC Helpline – 1800 1200 232

CBEC Email –

For latest news and updates, please visit the GST official

How To Create GST Invoice?

Invoicing plays a vital role to conduct the transaction.

On each sale/purchase transaction, supplier issues an invoice. An invoice generally contains S. No, Details of Product like description, product name, quantity etc. with details of purchaser, supplier, tax charged and other specifications like terms of sale, discounts etc.

According to the same invoice, the buyer and the seller make entry in their account books. When conducting audit, these invoices are rechecked for accuracy as they are the main documents on which documents are made, such as profit and loss account, trial balance, and balance sheet. Only buyer can claim input credit based on tax invoices.

The government has issued invoicing rules under GST with a GST invoice format (GST INV-01) with all the elements like GST tax rates, supplier’s details etc. which should be presented. Here, we will cover all the aspects of invoicing.


GST Invoice Format

According to Rule 5, 2016 by the Central Government, there are two types of invoices issued under GST – bill of supply and tax invoice.


Time Limit of Issuing Invoice under GST

The time limit for issuing the GST tax invoices, debit notes, revised bills, and credit note has been defined by the GST model law. Normally, the tax invoice should be issued by the dealer on or before the time goods are sold and on or before the period when the item is sent to the recipient.

For supply of services, GST invoice should be issued within 45 days in case of NBFCs and Banks, and normally within 30 days of providing services.


How to Revise Invoices Issued Already?

According to the section 28 (3a) of revised GST Model Law, the revised tax invoices are issued by the taxable registered person within a month from issue of GST registration. It will be issued against invoice which is issued already during the period from the effective date of registration till the date when certificate of registration issued to him.


What is Bill of Supply?

Generally, the tax invoice is issued to charge tax and pass the credit on. In case of GST, supplier cannot charge any tax in some instance. Hence, it is not possible to issue the Tax Invoice. Instead, Bill of Supply is another document which is issued.


Debit Note and Credit Note

The supplier issues credit and debit note when GST tax amount or taxable value falls short or exceeds in the invoice than the original tax amount of taxable value when the tax invoice has been issued.


GST Invoice Format for Supply of Goods

There are two types of invoices issued in the existing tax regime-

Tax Invoice

This type of invoice is generally issued to registered dealers, which consists of details about the supplier, particulars of the product, and recipient and tax charged. This type of invoice can be issued by the registered purchase to claim input tax credit.

  • Excise Invoice (under Central Excise Rule 11) – It is signed by the factory owner or authorized agent. It is issued to show all the goods and duty paid to tell the recipient how much tax is charged and the amount of CENVAT input is claimable on supply of goods.
  • VAT Invoice – The registered VAT dealers issue the VAT invoice in a way defined by the State VAT laws of the respective supplier state. For ex, a dealer conducting in Maharashtra should quote his VAT TIN no. or CST no.

Commercial/Retail Invoice

It is issued to retail customer or unregistered dealer. In this bill, the VAT charged is mentioned separately. If it is issued to the buyer who is liable to pay the tax, tax credit is not passed on. So, it is not possible to claim the tax credit on such invoice.


GST Invoicing

Tax Invoice

When a taxable registered person supplies the taxable services or goods, they issue a tax invoice. According to the rules about details needed in tax invoice, here is the sample of a tax invoice –

tax invoice


Bill of Supply

In general, the tax invoice is issued to pass on the credit and charge the tax. In some instances, supplier cannot charge any tax in GST and Tax invoice cannot be issued. Instead, Bill of Supply is another document which is issued.

Where a supplier issues bill of supply –

  • When supplying services or goods which are exempted
  • When paying tax as per composition scheme


Copies of Tax Invoices Issued

On the supply of goods, it is mandatory for the supplier to issue three copies of invoice – Duplicate, Original and Triplicate.


Original Invoice – Marked “Original for Recipient”, it is the first copy of invoice issued to the buyer when making sales.

Duplicate Copy –  It is issued to the carrier of goods to be presented as evidence when needed and it is marked “Duplicate for Transporter”.

If supplier has got invoice reference number, transporter doesn’t have to use this invoice. For your information, supplier can get this number from GSTN portal. They have to upload a tax invoice. It will be valid for 30 days from the time when you upload the invoice.

Triplicate Copy – The supplier keeps this copy for official record.


GST Invoicing for Supply of Goods

The rules for invoicing under GST have been clarified by the government with a GST INV-01 template having details like supplier’s name, GST tax rates and others. According to the rules, invoice should be issued under 30 days of providing services and 45 days in case of NBFCs and Banks.


Invoicing in Existing Tax Regime

In the existing tax regime, the invoice includes details of registration ID, service provider, service, abatement, rate of service tax, Swachh Bharat CESS (0.5%) and Krishi Kalyan CESS (0.5%).


Here is the sample of invoice –

invoice 2


Is it Mandatory to Issue the Bill of Supply?

If the value of services or goods supplied is below Rs. 10, it is not mandatory to issue the bill of supply. A consolidated bill is prepared at the closing day for such supplies.


How Many Copies of Invoices Issued?

The service provider should issue two copies when providing services – Original and Duplicate.


Original Invoice – Marked “Original for Recipient”, a copy of invoice is issued to the buyer when making purchase.  While paying tax, the serial number of bill shall be submitted online in FORM GSTR-1 in Common Portal.


Duplicate Copy – The service provider keeps this copy for his official record.

What Are The Best GST Books?

We have compiled the best GST books written on IGST Act 2017, CGST Act 2017, and UTGST Act 2017 in India. Following are the top rated and up-to-date books on GST in 2017. In these GST books, you will find the detailed knowledge of GST Law in India.


GST Laws Manual: Acts, Rules and Forms

By Rakesh Garg (LLB, FCA) and Sandeep Garg (CMA, FCA)

This book has been well recognized and recommended by the Delhi VAT Department and referred by the professionals and business community. Rakesh Garg has been the convener and advisor of Indirect Tax Study Circle of N.I.R.C. who has got the Award for Exemplary Services as faculty in seminars and as author of the books.

He has vast experience in presenting papers on VAT/Sales Tax and Service Tax in several meetings with Corporates, Professionals, Trade Associations and CII. Sandeep Garg is a graduate from Shri Ram College of Commerce, Delhi and practicing as CA for over 25 years and member of the Institute of Chartered Accountants of India.


GST – A Brief Introduction

By LVR Prasad and GJ Kiran Kumar

Since Independence, GST has been the biggest tax reform in India. In this book, you will learn all the basic concepts of GST in understandable and simple language. Here are the key features of this book –

  • Introduction to GST and Taxation system
  • Benefits and Importance of GST
  • The concepts, procedures and how it works
  • FAQs
  • Possible impacts and challenges of GST implementation

The concepts of GST are easy to understand in this book for the tax professionals, students, business communities and common public. It also has the extracts of

  • 122nd Amendment – The Constitution Bill
  • First Discussion Paper
  • Model GST Act 2016
  • GST Rules 2017


India GST for Beginners (2nd Edition)

By Jayaram Hiregange and Deepak Rao

It is the updated edition of the previous GST book. This revised edition covers all the details you should know about GST in India. This book is aimed to cover all the important aspects of GST in a simple and easy way, so a GST-affected business community can have proper knowledge of what they can access under the GST regime.

The book also explains the GST concepts through drawings, pictures, illustrations, and flowcharts to provide the practical examples and insights on the impact of GST on daily transactions.

This book is written to simplify the complex GST norms for the businesses, especially small and medium sized ones, which may not be able to have proper GST knowledge. This book will also help students and tax consultants to understand the concepts.