What is GST? What Are The Types Of GST? Basics Of GST Lecture 1 By CA Rachana Ranade

The lecture introduces the basics of Goods and Services Tax (GST), aiming to educate consumers, entrepreneurs, and students on its fundamental concepts. It covers the meaning of GST, its components, registration requirements, and basic forms involved in a simple manner. The goal is not expertise but awareness for practical understanding.

Before the introduction of Goods and Services Tax (GST) in India, there was a complex web of taxes including excise, service tax, customs duties, VAT among others. This chaotic system led to inefficiencies and confusion. To address this issue during its 2014-2019 tenure under Prime Minister Narendra Modi's leadership, the BJP government introduced GST as "one nation one tax." Promoted as a good and simple tax by Modi himself, it aimed to streamline taxation across goods and services nationwide.

After the introduction of GST, confusion arose among citizens regarding its structure. Despite being promoted as 'One Tax One Nation,' people noticed multiple components like CGST and SGST on their bills. This led to misunderstandings about whether it truly simplifies taxation or adds layers of complexity.

GST comprises three main components: CGST (Central Goods and Services Tax), SGST (State Goods and Services Tax), and IGST (Integrated Goods and Services Tax). For intra-state sales, both CGST and SGST are levied; for example, if a seller in Maharashtra sells within the state, taxes collected are split equally between central government as CGST and state government as SGST. In contrast, inter-state sales attract only IGST at a combined rate equivalent to adding respective rates of CGST & SGCT. This ensures seamless tax collection across states while maintaining clarity on revenue distribution.

Not everyone providing goods or services is required to collect and pay GST. A business must register for GST if its turnover exceeds ₹40 lakhs, making registration mandatory. However, voluntary registration is allowed even below this threshold for those who wish to be recognized under the system. For online sellers, regardless of their turnover amount—even as low as ₹1—they are mandated to register under GST due to e-commerce regulations.

Under the Goods and Services Tax (GST) system, businesses must file two key forms. The first is GSTR-1, where details of sales or services rendered are reported to the government along with tax liability based on collected GST. For example, if a business sells goods worth ₹10 lakhs in a month with 18% GST applied, this information is submitted through GSTR-1 including specifics like B2B (business-to-business) or B2C (business-to-customer) transactions. The second form is GSTR-3B which calculates net tax liability by considering both collected and paid taxes. If a trader collects ₹18 as GST from customers but has already paid ₹8 as input tax while purchasing goods from suppliers, only the remaining ₹10 needs to be remitted to the government after claiming input credit benefits.

Real-Time Access and Permission Management QuickBooks offers real-time access to data from any device, enabling users to manage urgent tasks even while away. It allows assigning specific permissions among staff members, such as editing or viewing rights for accounting entries. This feature ensures secure collaboration and efficient delegation of responsibilities.

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