Confused about GST rates and applicability? Tax360 provides expert guidance on GST classification, rates, and compliance for professionals, service providers, and e-commerce sellers.
Goods and Services Tax (GST) is a multi-tiered indirect tax applied to businesses based on the nature of their goods or services. Different rates apply depending on the business category, making it crucial to determine the correct GST rate for compliance.
Incorrect GST classification can lead to penalties and compliance issues. Tax360 ensures you apply the right GST rates for seamless tax filing!
| Business Category | GST Rate | Applicability Criteria | Processing Time |
|---|---|---|---|
| Independent Professionals (Doctors, CAs, Lawyers, Consultants) | 18% | If turnover exceeds ₹20 lakh (₹10 lakh in special category states) | Section 22(1) |
| Refund of ITC on Exports (Zero-rated supplies) | 18% | Providing IT, design, marketing, or content services | Section 7(1A) |
| Refund on Inverted Duty Structure | 18% | Mandatory registration regardless of turnover | Section 24(ix) |
| Refund on Deemed Exports | Exempt (if unregistered) / 18% (if registered) | Exemption only for unregistered educators | Notification No. 12/2017 |
| Adjustment Against Future Liabilities | 18% | Professional advisory services | Section 9(1) |
| Transport & Logistics Service Providers | 5% or 12% | Rate depends on whether ITC is claimed | Section 11(1) |
Not sure about your GST rate? Contact Tax360 for expert classification and compliance support!
| Update | Details | Impact |
|---|---|---|
| New GST Slabs for Digital Services | Special 12% GST rate for small digital service providers with turnover < ₹50 lakh. | Encourages digital business growth. |
| Revised Threshold for GST Registration | Increased limit for GST registration to ₹40 lakh for service providers (except e-commerce). | Reduces compliance burden for small businesses. |
| GST on E-commerce Aggregators | E-commerce platforms now required to collect GST at source for all transactions above ₹5,000. | Ensures compliance & transparency in claims. |
| Presumptive Taxation Limit Increased (Sec. 44ADA) | Businesses can adjust excess GST paid against upcoming tax payments without refund filing. | Reduces compliance burden for businesses. |
| Simplified GST Returns for Freelancers & Consultants | Businesses can adjust excess GST paid against upcoming tax payments without refund filing. | Reduces compliance burden for businesses. |
| Income Tax Section | Relevance |
|---|---|
| Section 44ADA | Presumptive taxation for professionals under GST |
| Section 139(9) | Defective return notices for incorrect tax filings |
| Section 44AB | GST-registered businesses requiring tax audits |
| Section 244A | Interest payable on delayed tax refunds |
| Section 194O | TDS on e-commerce transactions affecting GST payers |