Question 1

Who needs to register for GST?

Accepted Answer

Any business with an annual turnover exceeding ₹40 lakh (₹20 lakh for service providers, ₹10 lakh for special category states) must register for GST. Businesses involved in interstate supply or e-commerce must register regardless of turnover.

Question 2

What is the penalty for late GST return filing?

Accepted Answer

Late filing attracts a late fee of ₹50 per day (₹25 CGST + ₹25 SGST) for regular returns, subject to a maximum of ₹5,000. For nil returns, the late fee is ₹20 per day. Interest at 18% per annum applies on the outstanding tax amount.

Question 3

What is the difference between GSTR-1 and GSTR-3B?

Accepted Answer

GSTR-1 is a statement of outward supplies (sales) filed monthly or quarterly. GSTR-3B is a summary return where you declare your tax liability and claim input tax credit (ITC). Both must be filed separately — GSTR-1 by the 11th and GSTR-3B by the 20th of every month for monthly filers.

Question 4

Can I claim input tax credit (ITC) on all purchases?

Accepted Answer

No. ITC can only be claimed on purchases used for business purposes and only if the supplier has filed their GSTR-1. ITC is blocked on personal expenses, motor vehicles (with exceptions), food and beverages, and certain other categories under Section 17(5) of the CGST Act.

Question 5

What is the GST annual return (GSTR-9)?

Accepted Answer

GSTR-9 is an annual return consolidating all monthly/quarterly returns filed during the financial year. It is due by 31st December of the following financial year. Businesses with turnover above ₹5 crore must also file GSTR-9C (reconciliation statement).

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