As consumers, we are all paying GST on various goods and services in our daily lives. By becoming aware about key aspects of GST, we can better appreciate the role of GST in nation-building; can educate our friends and relatives; can raise voice confidently against any malpractices; can be a whistle-blower on GST frauds etc. So, let’s learn some basics to be ‘GST-wise’! By now, everyone knows that the Good and Services Tax (GST) is the tax on consumption/supply of Goods and Services. From 1 st July, 2017, GST replaced several indirect taxes at Central and State levels, mainly, the Sales Tax (State VAT), Central Excise Duty and Service Tax. With some exceptions specified in law, GST applies on all ‘supplies’ of goods and services. Why CGST & SGST? India being a federal country and GST being a concurrent levy by both Centre and the States, the GST revenue has to be distributed among Central Government and concerned State Government. It is for this accounting purpose that the GST rate is split and shown in two equal components, viz., Central GST (CGST) & State GST (SGST). On every supply within a state, both CGST & SGST are levied simultaneously. Where the supply is between two states, Integrated GST (IGST) is levied. IGST rate = CGST rate + SGST rate. The GST rates are uniform throughout the country. Most goods fall under the 18% tax slab (9% CGST + 9% SGST). Only 50 items are currently under 28% slab. From 15th November 2017, rates on several goods were reduced . For easy searching of GST rates on various goods and services, one can download ‘ GST Rate Finder’ app from Google Play Store. Registration Persons/businesses dealing in taxable supplies with aggregate turnover of more than Rs. 20 lakhs in a financial year are compulsorily required to take registration and charge/pay GST. (In case of 11 ‘special category’ States, this threshold is Rs. 10 lakhs) Persons with aggregate turnover < Rs. 20 lakhs may also take registration voluntarily. But, once taken, they have to comply with all requirements stipulated for GST registrants, i.e., collect and pay GST, file returns etc. Once obtained, the GST registration certificate shall be displayed at a prominent location in the business premises and on the name board exhibited at the entry of business place. Penalty for non-display is up to Rs. 25,000/-. Small manufacturers, traders and food supply businesses (restaurants) having aggregate turnover less than a prescribed threshold (increased to Rs. 1.5 Crore) can opt for ‘Composition Levy’ under GST. Such ‘composition suppliers’ are not supposed to collect/pay CGST & SGST at prescribed rates. Instead, they are given the simpler option to pay a lumpsum ‘amount’ as a percentage of their turnover. That’s why the bills issued by composition suppliers don’t contain CGST & SGST components. However, they have to mention the words “Composition taxable person, not eligible to collect GST on supplies” on the top of every bill and also display the same on notice/signboard prominently at the place of business. Penalty for such non-mention/non-display is up to Rs. 25,000/-. GST Bill/Invoice As a vigilant consumer, insist on bill for every purchase. GST law provides that the supplier may not issue invoice (i) if the value of goods/service is < Rs. 200/- and (ii) if the recipient is not a GST-registered person (e.g., a consumer) and (iii) if the recipient does not require invoice. However, a consolidated tax invoice shall be issued for all such supplies at the close of each day. Some businesses are not giving bill or not showing GST separately in the bill on the pretext that their computer system is not working or software is still not ready. Note that the Bill/invoice under GST need not be computer-generated. It can be hand-written on paper also but shall contain the mandatory particulars like GSTIN, name and address of the supplier, date of issue, rates of Tax etc. Any person/business not registered under GST is prohibited from collecting GST. If GST is charged, check whether GSTIN (PAN-based GST Identification Number) is indicated clearly in the bill. You can enter the GSTIN and verify business details at www.gst.gov.in > Search Taxpayer > Search by GSTIN/UIN. Also check whether CGST & SGST rates and amounts are indicated separately.GST shall not be collected on any discounts allowed in the bills. However, GST is payable on any other additional amounts collected/shown separately in bill, e.g., in the name of ‘service charges’, ‘handling charges’, ‘packing charges’, ‘processing charges’ etc. No GST on MRP MRP (Maximum Retail Price) is affixed on most of the packaged products. MRP is inclusive of all taxes including GST. So, it is a malpractice to charge GST, again on MRP.