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Common questions on GST registration, returns, input tax credit, e-invoicing and rates – answered by a practising Chartered Accountant.
GSTGST registration cancellation and revocation — what is the time limit?Bottom line: If your GST registration is cancelled by the officer, you can apply to revoke it within 90 days of the cancellation order. 1. Cancellation It can…GSTWhat is the late fee and interest for filing GST returns late?Bottom line: The late fee is ₹50 a day (₹20 for a nil return) and interest runs at 18% a year on the tax paid late. 1. Late…GSTCan I claim ITC if my supplier has not filed GSTR-1?Bottom line: No — if the invoice does not appear in your GSTR-2B because the supplier has not filed, you cannot claim that input tax credit yet. 1.…GSTHow many HSN code digits must I show on a GST invoice?Bottom line: It depends on turnover — 4 digits up to ₹5 crore and 6 digits above ₹5 crore. 1. Up to ₹5 crore Show a 4-digit HSN…GSTIs GST payable on advances received from customers?Bottom line: GST is payable on advances for services, but not on advances for goods. 1. Services If you receive an advance before raising the invoice, GST is…GSTIs input tax credit blocked on cars and other items under Section 17(5)?Bottom line: Yes — Section 17(5) blocks ITC on motor vehicles with up to 13 seats and several other items, unless you fall in a specific exception. 1.…GSTWhat is an e-way bill and when is it required?Bottom line: An e-way bill is needed to move goods worth more than ₹50,000, and is generated on the e-way bill portal before the movement starts. 1. Threshold…GSTGSTR-2B vs GSTR-2A: which one do I use to claim ITC?Bottom line: Use GSTR-2B — it is the static statement that now governs how much input tax credit you can claim. 1. GSTR-2B Auto-generated around the 14th of…GSTNew GST rates 2025: what changed under GST 2.0 (0%, 5%, 18% and 40%)?Bottom line: From 22 September 2025 the GST Council rationalised the slabs to mainly 5% and 18%, with a 40% rate on sin and luxury goods, and largely…GSTGST on rent: commercial vs residential property — who pays?Bottom line: Commercial rent is taxable at 18%, a home let for residence is exempt, but a residential property rented to a GST-registered person falls under reverse charge.…GSTWhat is the interest rate on late GST payment? (18% per annum)Interest on late payment of GST is charged at 18% per annum on the outstanding tax amount. It accrues daily from the day after the due date until…GSTIs GSTR-9 annual return mandatory? Turnover limit and due dateFiling GSTR-9 is mandatory only if your aggregate turnover exceeds Rs 2 crore in a financial year; below that it is optional. If turnover exceeds Rs 5 crore,…GSTWhat is the late fee for filing GSTR-3B late? (Rs 50 per day)The late fee for GSTR-3B is Rs 50 per day (Rs 25 CGST + Rs 25 SGST), reduced to Rs 20 per day for Nil returns. It runs…GSTWhat is the time limit to claim input tax credit (ITC) under GST?You can claim ITC for a financial year up to the earlier of 30 November of the next financial year, or the date you file your annual return…GSTGSTR-1 and GSTR-3B due dates: monthly and QRMP filing datesFor monthly filers, GSTR-1 is due by the 11th and GSTR-3B by the 20th of the following month. On the QRMP scheme (turnover up to Rs 5 crore,…GSTGST composition scheme: turnover limit and tax rates (Rs 1.5 crore)You can opt for the composition scheme if your aggregate turnover is up to Rs 1.5 crore (Rs 75 lakh in North-Eastern states and Himachal Pradesh). The rate…GSTWhat is the GST registration threshold limit in India? (Rs 40 lakh / Rs 20 lakh)You must register once your aggregate turnover crosses Rs 40 lakh for goods or Rs 20 lakh for services in a financial year (in most states). In the…GSTWhat is the turnover limit for e-invoicing under GST? (Rs 5 crore)E-invoicing is mandatory for businesses whose aggregate turnover exceeds Rs 5 crore in any financial year from 2017-18 onwards. The rule is once applicable, always applicable: if you…GSTDifference between CGST, SGST and IGST: which one do I charge?For sales within your own state, you charge CGST and SGST split equally; for sales to another state, you charge a single IGST. CGST goes to the Central…GSTWhat is reverse charge mechanism (RCM) under GST? Basics explainedUnder the reverse charge mechanism, the recipient of goods or services pays GST directly to the government instead of the supplier collecting it. It applies to certain notified…
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